The state of Pennsylvania has extended to its taxpayers a limited time offer to resolve delinquent state taxes without fear of persecution. The 2010 Pennsylvania Tax Amnesty program is available from April 26, 2010 through June 18, 2010. This special period of amnesty is the result of Act 48 which was signed into law on October 9, 2009.
Who qualifies for the program?
The amnesty program is available to any person, association, fiduciary, partnership, corporation, S corporation, limited liability company and any other entity required to pay or collect any of the eligible taxes, according the the program overview available online. Exclusions from the program include anyone under investigation for an alleged violation of a tax law, defendant in a criminal complaint for alleged violation of any law imposing an eligible tax or anyone under protection of Title 11 through bankruptcy court.
Do all tax liabilities qualify?
No. Only tax liabilities administered and owed to the Department of Revenue are eligible for the amnesty program. Federal, local or state taxes (outside of Pennsylvania) are not eligible for the program. The tax liability must be due as of June 30, 2009. Tax liabilities that are due after June 30, 2009 are not eligible for this program. In addition, the amnesty program is extended to tax liabilities that are both known and unknown by the Department of Revenue to include non-filed tax returns and unpaid or underreported taxes.
Conditions of the program
In order to participate in the 2010 Tax Amnesty program you have to meet certain conditions set forth. Anyone who participated in a previous program (1995/1996) is eligible however by participating in the 2010 program you will be excluded from participation in future amnesty programs. Taxpayers who agree to participate in this program must forfeit the right to petition for a refund of money paid during the program. Any administrative or judicial appeals must be withdrawn prior to acceptance in the program.
Taxpayers interested in this program must complete the following steps:
Step 1- File an application for the program between April 26th and June 18th 2010. There will be no extensions offered for this program.
Step 2- All delinquent tax returns must be filed, including amended returns for years tax liabilities were underreported.
Step 3- All eligible delinquent taxes must be paid within the program period. Full payment for delinquent taxes and 50 percent of the interest will be required during this time.
Step 4- Participants agree to give up any right to petition for a refund of monies paid during the program.
Acceptable payment methods
The following payment methods will be accepted by the Department of Revenue to pay off eligible tax liabilities:
- Credit card
- Money order
- Electronic transfer
- Cash (only accepted in Harrisburg, PA location- Strawberry Square)
Participants are allowed to make multiple payments during the program period to satisfy the tax liability. Each payment must be accompanied by a coupon that is printed from the program application.
Penalty for non-participation
Anyone who has eligible tax liabilities, who chooses not to participate in the amnesty program will have a 5 percent non-participation penalty imposed on any unpaid liabilities. This penalty will not be applied to taxpayers who have an active deferred payment plan, active appeals or under bankruptcy protection.
Anyone with questions regarding this program can contact the Department of Revenue by mail at PO Box 281101, Harrisburg, PA 17128-1101 or by phone at 1-877-347-2987. There have been special offices and telephone numbers set up to handle taxpayer inquiries during the program period.