Pennsylvania Tax Amnesty - New law enacts amnesty program that begins on April 26, 2010 and ends on June 18, 2010

H.B. 1531 , signed by gov. 10/9/09. Effective immediately, new law enacts a tax amnesty program that will run from April 26, 2010 through June 18, 2010, and will cover any tax administered by the department that is delinquent as of June 30, 2009 (including liabilities for returns not filed, liabilities according to the department's records as of June 30, 2009, as well as liabilities not reported, underreported or not established but delinquent as of June 30, 2009). The term "eligible tax" also includes any interest or penalty on the eligible tax. For "unknown liabilities," the amnesty only applies to taxes due within five years prior to June 30, 2009. An "unknown liability" is defined as a liability for an eligible tax for which either:

No return or report has been filed, no payment has been made, and the taxpayer has not been contacted by the department concerning the unfiled returns or reports or unpaid tax, or

A return or report has been filed, the tax was underreported, and the taxpayer has not been contacted by the department concerning the underreported tax.

Taxpayers that participate in this amnesty program will not be eligible to participate in a future tax amnesty program. Benefits of participation in this amnesty program include waiver of all penalties and one-half of the interest due. A taxpayer with unknown liabilities reported and paid under this program that fully complies with the program's requirements shall not be liable for any taxes of the same type due prior to July 1, 2004. Participation in the program is conditioned upon the taxpayer's agreement that the right to protest or pursue an administrative or judicial proceeding with regard to tax amnesty returns filed under the program or to claim any refund of money paid under the program is barred. An additional 5% penalty may apply to eligible taxpayers that fail to participate in the amnesty program or that had unreported or underreported their liability for an eligible tax under this amnesty program.