The Pennsylvania Department of Revenue (DOR) recently announced a 90-day voluntary compliance program (the program). The program, which runs through May 8, 2021, is geared towards businesses that have inventory or stored property in Pennsylvania but are not registered in the state to collect and remit taxes. The program involves a shortened lookback period, which will provide qualified retailers tax relief for any taxes owed prior to January 1, 2019. Additionally, the program provides penalty relief for the non-compliance of past due returns and tax liabilities.
To participate in the program, taxpayers must complete the Physical Business Activity Questionnaire (BAQ) online or print and submit a hard copy via email. To access the BAQ, businesses should visit the Pennsylvania Department of Revenue website, after which the DOR will contact the business to discuss next steps for compliance with the state. Once the business is registered, files any tax returns that were due and remits payment of taxes, all penalties resulting from non-compliance will be abated. It is important to note that the program is conditional on the business’s continued tax compliance with the DOR.
The DOR has been issuing notices to online sellers notifying them about the program. Any business that does not take advantage of the program should be aware of the potential ramifications of non-compliance. If an eligible business does not participate in the program and is subsequently contacted by the DOR, penalties for failure to file and failure to pay are likely to be assessed and, depending on the tax type, can amount to as much as twenty-five percent of the total tax due.
If you have questions about this or any other tax matter, please contact your WG advisor.