TAX NEWS - DECEMber 2009

Pennsylvania Tax Amnesty: Department issues guidance on upcoming 2010 Amnesty Program

Bulletin: Statements of Policy – 2010 Tax Amnesty Program Guidelines, Pa. Dept. of Rev. (12/5/09). Pursuant to recently enacted law [H.B. 1531] that established a state tax amnesty program that will run from April 26, 2010 through June 18, 2010, the department has issued related guidelines. The amnesty program will apply to liabilities for all taxes administered by the department that were delinquent as of June 30, 2009. To be eligible, taxpayers must file an amnesty application plus all applicable tax returns, and pay the tax and 50% of the interest due. The remaining 50% of interest and any penalties will be abated.

In addition, if a taxpayer is fully compliant with the program, any "unknown liabilities" (i.e., unreported or underreported amounts that the department is unaware of) of tax, interest and penalty of the same type will be waived for amounts due prior to July 1, 2004. Taxpayers that participate in this amnesty program will not be eligible to participate in any future tax amnesty programs.

Delinquent taxpayers that do not participate in the 2010 amnesty program will be subject to an additional 5% penalty on amounts that would have been eligible.