TAX ALERT PENNSYLVANIA’S 2017 TAX AMNESTY PROGRAM BY HAROLD HECHT, SETH RABE AND KATIE MASSEY
May 4, 2017
MAZARS USA TAX PRACTICE BOARD Jeffrey Katz 212.375.6816
[email protected]
James Toto 732.205.2014
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Howard Landsberg 212.375.6604 | 516.282.7209
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Faye Tannenbaum 212.375.6713
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EDITOR Richard Bloom 732.475.2146
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INTRODUCTION Mazars USA LLP is an independent member firm of Mazars Group.
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Tax Alert
Pennsylvania has initiated its 2017 Tax Amnesty Program for all taxes administered by the Commonwealth’s Department of Revenue. The Amnesty Program will end on June 19, 2017. Participation in the Amnesty Program allows all penalties, collection and lien fees, and 50% of the interest due to be abated.
Pennsylvania has viable options for taxpayers looking to resolve outstanding taxes. Please contact your Mazars USA professional, or our State & Local Tax Services team for consultation on any questions regarding the Pennsylvania Tax Amnesty Program.
Conditions of Taxpayer Participation To participate, taxpayers must file an online Amnesty Return and all delinquent tax returns, and pay remaining balances within the Amnesty Period. Eligible tax periods for the program include those where a delinquency exists as of December 31, 2015. Unpaid taxes, penalties, and interest from periods following December 31, 2015 are not included in the 2017 Pennsylvania Tax Amnesty Program. However, to participate in the Program, unfiled returns and unpaid taxes will need to be resolved for all periods, including those due after December 31, 2015. A taxpayer who is actively in the process of an administrative or judicial review is eligible to participate if the taxpayer withdraws appeals related to periods included within the Amnesty Program. Participation Incentives The Pennsylvania Amnesty Program offers abatement of all penalties, collection and lien fees, as well as 50% of the interest due for all tax periods ending on or before December 31, 2015. Beyond these deductions, the state has provided additional incentives to participate in the Program. Any taxpayer with unknown tax liabilities that are reported and paid during the Amnesty Program will receive a limited lookback, with any taxes of the same type related to a period prior to January 1, 2011 being ineligible for the state to pursue. Furthermore, a 5% penalty will be levied on all eligible tax, penalties, and interest which are not reported and paid by taxpayers who choose not to participate in the Amnesty Program. In Summary Taxpayers with outstanding taxes, penalties, collection and lien fees, and interest, should consider participating in Pennsylvania’s current Tax Amnesty Program. Incentives to participate are high, but taxpayers should balance the costs of participation with the value of a Voluntary Disclosure Agreement (VDA). The VDA Program is still available during the Amnesty Period, and can include periods following the Amnesty Program’s cut off deadline of December 31, 2015. A Voluntary Disclosure Agreement may be a better option for taxpayers with significant remaining taxes in tax periods subsequent to 2015.
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FOR MORE INFORMATION CONTACT:
HAROLD HECHT, CPA DIRECTOR +1 646.225.5953
[email protected] SETH RABE, JD, LLM SENIOR MANAGER +1 212.375.6877
[email protected] KATIE MASSEY SENIOR +1 212-375-6679
[email protected]
VISIT US AT www.mazarsusa.com
Disclaimer of Liability Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Mazars USA LLP is an independent member firm of Mazars Group. CONFIDENTIALITY NOTICE: The information contained in this communication may be privileged, confidential and protected from use and disclosure. If you are not the intended recipient, or responsible for delivering this message to the intended recipient, you are hereby notified that any review, disclosure, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify the sender immediately by replying to the message and deleting it from your computer. Thank you for your cooperation. Mazars USA LLP.
