Mar 26, 2020, 11:32 AM by Matthew McCann

The Pennsylvania General Assembly passed House Bill 1232, which amends the Fiscal Code and temporarily authorizes the Department of Revenue to extend tax filing and payment deadlines. The PICPA has spoken with state legislators about the need for consistency across taxing bodies and levels, and this legislation provides much needed clarification.

By Peter Calcara, PICPA vice president - government relations

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In response to the COVID-19 pandemic, the Pennsylvania General Assembly passed House Bill 1232, which amends the Fiscal Code and temporarily authorizes the Department of Revenue (DOR) to extend tax filing and payment deadlines. The PICPA has spoken with state legislators about the need for consistency across taxing bodies and levels, and this legislation provides much needed clarification. The bill, as of this writing, is awaiting Gov. Tom Wolf’s signature.

According to staff analysis from the Pennsylvania House and Senate, House Bill 1232 temporarily authorizes the DOR to extend filing and payment deadlines related to the personal income tax (PIT) as follows:

• Extends the deadline for declarations of estimated personal income tax (PIT)
• Extends the deadline for payments of estimated PIT
• Extends the deadline for the filing of informational returns related to Pennsylvania S corporations, partnerships, estates, and trusts (Form PA20S/PA-65)

With regard to the local earned income tax (EIT) imposed by the Local Tax Enabling Act (Act 511 of 1965), the legislation authorizes the Department of Community and Economic Development (DCED) to coordinate with the governing bodies and local agencies of political subdivisions to extend filing and payment deadlines.

The legislation extends the PIT and EIT deadlines to July 15, 2020. In both instances, House Bill 1232 provides that the deadlines shall coincide with the filing deadline for a tax return and payment due under Section 330 of the Tax Reform Code of 1971, relating to the filing of annual Pennsylvania PIT returns and payments. Because the federal government temporarily extended its income tax return filing and payment dates from April 15 to July 15, 2020, under current law Pennsylvania’s PIT annual tax return filing and payment dates now default to July 15, 2020, by automatically conforming to federal deadlines.

This legislation is effective July 1, 2019, or immediately, whichever occurs later. The sections authorizing the DOR and DCED to extend tax filing and payment dates will expire July 31, 2020.

The PICPA continues to advocate for relief and clarification from legislators and regulatory agencies. At present, we’re still seeking answers to other questions pertaining to local taxes, including those related to Philadelphia. We will notify PICPA members when we know more, but please continue to check PICPA’s COVID-19 resource page for frequent updates.

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