Nikolaos I. Tsouros, Esquire
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Recently, Pennsylvania has offered a Tax Amnesty Program for a limited time from April 26, 2010 through June 18, 2010 (54-day time frame). This program allows Taxpayers (Individuals and Businesses) to file and pay their delinquent PA taxes and in return the PA Department of Revenue (the “Department”) will waive 100% of the penalties and one-half (1/2) of the interest imposed.  To obtain this tax amnesty you must: (1) file an amnesty return online with the PA Department of Revenue (not yet available online); (2) file all delinquent tax returns; and (3) pay all delinquent taxes plus 50% percent of the interest due.  Additionally, the Department will be sending written notices to delinquent taxpayers regarding this Tax Amnesty Program.  Also, if you receive such notice and do not participate in the program, the Department will add a 5% non-participation penalty to the balances due.

The type of Pennsylvania taxes covered by the Tax Amnesty Program include: Personal Income Tax, Corporate Net Income Tax, Realty Transfer Tax, Inheritance Tax, Sales and Use Tax, Capital Stock Tax, Cigarette Tax, Bank Shares Tax and Corporate Loans Tax.

Taxpayers who have not registered with the Department and are reporting and paying taxes which are completely unknown to the Department are only required to file and pay undisclosed tax delinquencies dating back to July 1, 2004. However, if a taxpayer is reporting and paying taxes which are known to the Department, the taxpayer must file tax returns for all tax periods and pay all taxes due to the Department.

Also, penalties and interest paid before the tax Amnesty period are non-refundable. A Taxpayer may not participate in the program if: (1) the Taxpayer is in bankruptcy protection under Title 11 of the U.S. Code or has previously received a discharge determination of Pennsylvania tax liabilities thorough a bankruptcy court; (2) the taxpayer is currently under criminal investigation for an alleged violation of any tax law, or is defending a pending criminal action for violations of any tax law.

Also, taxpayers who previously have entered into deferred payment plans with the Department are eligible to participate in the Tax Amnesty Program but only on the penalties and 50% of the interest that remain due on the payment plan balance.

The Department may re-impose all penalties and interest abated during the Tax Amnesty Period if either of the following occurs within 2 years of the end of the Tax Amnesty Period: (1) The Taxpayer becomes delinquent for 3 consecutive periods for semi-monthly, monthly or quarterly filing or payments, unless the Taxpayer has filed an appeal of the delinquency; (2) The Taxpayer becomes delinquent for more than 8 months on any filing of reports or payments due on an annual basis, unless the taxpayer has filed and appeal of the delinquency.

Finally, the current PA Legislation creating the Tax Amnesty Program provides that a taxpayer who participates in the current program will be prohibited from participating in any future Tax Amnesty program that may be instituted in Pennsylvania in the future.

If financially possible, we would highly recommend that a Taxpayer with tax delinquencies with the PA Department of Revenue consider participating in this program by filing and paying his, her or its delinquent Pennsylvania Taxes. If you have any questions regarding participating in the Pennsylvania Tax Amnesty Program, the Tax Department of MacElree Harvey has experienced tax attorneys who are able to guide and advise you regarding the PA Tax Amnesty Program.

MacElree Harvey
17 West Miner Street
Post Office Box 660
West Chester, PA 19381–0660
p | 610.436.0100
f | 610.430.7885
f | 610.429.4486
e | info@macelree.com