The Pennsylvania Department of Revenue (PADOR) has announced the features of its 2017 Tax Amnesty Program. The Amnesty Program begins on April 21, 2017 and ends on June 19, 2017. All taxes owed to the Commonwealth and administered by PADOR are eligible for the Amnesty Program. To participate in the program, taxpayers must file an Amnesty Return, file all delinquent taxes and returns and make the required payment within the amnesty period. The principal feature of the tax amnesty program is that all penalties, collection and lien fees and one-half of the interest due will be waived in exchange for payment of the tax and one-half of the interest owed. Most taxes are eligible for participation in this program. This includes personal income tax, corporate net income tax, inheritance and estate tax, and sales and use tax.
If a taxpayer owes delinquent taxes, the written notice will be sent from PADOR where there is a valid address on the Department’s records. A participating taxpayer must file an Amnesty Return, make payment of all taxes and one-half the interest due to the Commonwealth, file complete tax returns, including those for years which are not eligible for the amnesty program. Along with payment for all taxes reported on the Amnesty Return and one-half of the interest on those taxes, all missing tax returns or reports must be filed electronically or on paper no later than June 19, 2017. There is no extension for the filing of missing tax returns or reports eligible for the Amnesty Program.
Taxpayers who have entered into duly approved and executed deferred payment plans with PADOR are eligible to participate in the amnesty program. However, they are limited to the relief from penalty and one-half of the interest that remains on their payment plan balance as of the date of the final tax payment and they must complete payment of the entire delinquency by the close of the Amnesty period. The relief will not be based on the original balances of tax, penalty and interest at commencement of the payment.
For more information about the 2017 Tax Amnesty Program, please contact Attorney Brent C. Diefenderfer of CGA Law Firm’s Bankruptcy and Debt Restructuring Department by email or at (717) 848-4900 ext. 127.