In an attempt to encourage delinquent taxpayers to come forward, Pennsylvania has announced that it will be offering a new tax amnesty program. The program will be available for sixty days, running from April 21st through June 19th of 2017.
Any Pennsylvania individual or business taxpayer with unfiled tax returns or unpaid/underpaid taxes for tax years through December 31, 2015 will be able to participate in the program. The tax amnesty program applies to over thirty of Pennsylvania’s state taxes which include, but are not limited to, personal income tax, corporate net income tax, and sales and use tax. Eligible taxpayers will be required to submit an application, file any unfiled tax returns, and remit any unpaid or underpaid taxes as part of the process.
As an incentive to delinquent taxpayers, the state will abate all penalties and fifty percent of the interest owed. For eligible taxpayers who choose not to participate in the tax amnesty program, Pennsylvania will assess an additional five percent nonparticipation penalty which will accumulate on top of the penalties and interest currently owed.
Pennsylvania’s amnesty program offers a great opportunity for taxpayers who may owe tax to the state to come forward and limit the interest and penalties that the state would typically assess against these delinquent taxpayers.