Governor Rendell: PA Tax Amnesty is Halfway Over; 25 Days Left for Tax Delinquents to Save on Penalties, Interest on Back Taxes Paid by June 18

More than $50 Million Disclosed by more than 28,000 Applicants, to Date

HARRISBURG, Pa., May 24 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell today reminded taxpayers that PA Tax Amnesty – which waives all penalties and half of the interest for anyone who pays delinquent Pennsylvania taxes between April 26 and June 18 – is halfway over.  

"Only 25 days remain for businesses and individuals that owe back taxes to Pennsylvania to take advantage of the Tax Amnesty opportunity," Governor Rendell said, noting that during the last PA Tax Amnesty 14 years ago, 74 percent of applications and payments were submitted in the final two weeks of the program.  "We know there are many, many more people who will take advantage of this opportunity, and we urge them not to wait until the last minute.

"The June 18 deadline was set by law -- it will not be extended. Taxpayers should avoid the last-minute rush and apply now, because after June 18, not only does this offer disappear, but an additional 5 percent penalty is tacked on to all outstanding tax delinquencies."

To date, the PA Tax Amnesty program received 28,394 completed, or in-process, applications disclosing $50.9 million in previously unpaid Pennsylvania back taxes.  

The single largest payment to date was $1.2 million for corporate taxes.  

As of this morning, traffic to the PA Tax Amnesty website, www.PATaxPayUp.com, totaled nearly 188,000 hits; and more than 50,000 calls to the PA Tax Amnesty hotline, 1-877-34-PAYUP, were answered.

The PA Tax Amnesty application is only available online at www.PATaxPayUp.com.  The website also answers commonly asked Tax Amnesty questions and provides step-by-step application instructions in English and Spanish.

To be considered for PA Tax Amnesty, online applications must be completed and submitted electronically by midnight, Friday, June 18, 2010.

Tax Amnesty payments can be made through a variety of options: by electronic funds transfer, credit or debit card, check, money order or cash. Cash is only accepted at the Harrisburg district office in the lobby of Strawberry Square. Payments for all outstanding tax liabilities must also be made electronically or postmarked by midnight, Friday June 18.

Assistance is available by calling 1-877-34-PAYUP (1-877-347-2987) weekdays between 7:30 a.m. and 7 p.m., or by visiting any of the Department of Revenue's 17 district offices across Pennsylvania. District offices are listed in the blue pages of local telephone directories, and in-person assistance is available weekdays from 9 a.m. to noon and 1 to 4 p.m.

About Tax Amnesty:

For a limited time, the PA Department of Revenue is waiving 100 percent of penalties and half the interest for anyone who applies for Tax Amnesty online at www.PATaxPayUp.com and pays eligible delinquent taxes by June 18.

The 54-day PA Tax Amnesty program, created by Act 48 of 2009, is generally available to all individuals, businesses and other entities with PA tax delinquencies as of June 30, 2009.

The Tax Amnesty period began on April 26 and is expected to net $190 million for the current fiscal year budget by June 18.

After the program ends on June 18, eligible taxpayers that do not take advantage of the PA Tax Amnesty program to settle back taxes will have a 5-percent non-participation penalty added to delinquencies and may face other enforcement actions.

For more information, visit www.PATaxPayUp.com or call 1-877-34-PAYUP (1-877-347-2987) weekdays between 7:30 a.m. and 7 p.m.  

Editor's Note: Following are answers to the three most frequently asked questions from www.PATaxPayUp.com.

1.) Are there restrictions on who can apply for PA Tax Amnesty?

• Unpaid taxes from periods after June 30, 2009, are not eligible for the PA Tax Amnesty program.
• Any taxpayer who is currently under criminal investigation for an alleged violation of any tax law; is named as a defendant in a criminal compliant alleging a violation of any tax law administered by the Department of Revenue prior to April 26, 2010; or will be a defendant in a pending criminal action for an alleged tax law violation is not eligible for the PA Tax Amnesty program.
• A taxpayer in bankruptcy is not eligible for PA Tax Amnesty unless permission is granted by the Bankruptcy Court.
• PA tax liabilities under appeal are not eligible for Tax Amnesty. In order for the liability to be considered for Tax Amnesty, the appeal must be withdrawn. The option to withdraw an appeal will be available within the online Tax Amnesty application.

2.) How can I find out how much I owe in back taxes so I may apply for PA Tax Amnesty?

Taxpayers who received notices from the Department of Revenue should follow the instructions provided in the notices to access tax liabilities online through the PA Tax Amnesty application. Any taxpayer who owes state back taxes but did not receive a PA Tax Amnesty notice in April may call 1-877-34-PAYUP (1-877-347-2987) for more information.

3.) What taxes and tax periods are eligible for the Tax Amnesty program?

All taxes administered by the PA Department of Revenue are eligible for the Tax Amnesty program (see below).

The Tax Amnesty program does not apply to Unemployment Compensation because it is administered by the PA Department of Labor and Industry. Also, the program does not apply to any tax administered by another state, local government or the federal government/Internal Revenue Service.

Any taxes delinquent as of June 30, 2009, and any non-filed returns due as of June 30, 2009, are eligible for Tax Amnesty.  Taxes eligible for the PA Tax Amnesty include:

Agriculture Cooperative Tax

Bank and Trust Company Shares Tax

Capital Stock/Foreign Franchise Tax

Cigarette Tax  

Corporate Net Income Tax

Electric Cooperative Tax

Employer Withholding Tax

Fuel Use Tax (except taxes, interest and penalties collected under the International Fuel Tax Agreement)

Gross Premiums Tax

Hotel Occupancy Tax, including Local Hotel Occupancy Tax for Philadelphia and Allegheny County

International Fuel Tax Agreement (IFTA)

Inheritance and Estate Tax

Interstate Bus Compact Tax

Liquid Fuels Tax

Loans Tax

Marine Underwriting Profits Tax

Malt Beverage Tax

Motor Carriers Road Tax

Motor Vehicle Carriers Gross Receipts Tax

Mutual Thrift Institutions Tax

Oil Company Franchise Tax

Parimutuel Wagering and Admissions Tax

Personal Income Tax

Public Utility Realty Tax

Realty Transfer Tax

Sales and Use Tax, including Local Sales and Use Tax for Philadelphia and Allegheny County

Surplus Lines Tax

Unauthorized Insurance Tax

Gross Receipts Tax

Media contacts:

Stephanie Weyant, Department of Revenue; 717-787-6960

Gary Tuma, Governor's Press Office; 717-783-1116

SOURCE Pennsylvania Office of the Governor