By John Kaschak, CPA, Pennsylvania Department of Revenue

The Pennsylvania tax amnesty program may not start until April 21, 2017, but now is a good time for your clients to prepare. To help state taxpayers, the Department of Revenue recently released a fact sheet and launched a webinar that provide an overview of requirements and restrictions, as well as a look back at the 2010 tax amnesty.

These add to the program guidelines and extensive Q&A already available. More information about how your clients can apply, plus a dedicated tax amnesty website and phone numbers, will be released before the program starts.

Limited Time Opportunity

Tax amnesty, which will run from April 21 through June 19, 2017, will be a limited opportunity for individuals and taxpayers to pay delinquent taxes while the department waives all penalties and half of the interest. After tax amnesty ends, an additional 5 percent penalty will be imposed on eligible taxpayers who do not participate. They may face additional enforcement measures as well.  

Who Is Eligible?

Generally, those who are eligible for the 2017 tax amnesty include Individuals and businesses with unpaid or underpaid taxes as of the end of 2015. Also included are any individuals or businesses who know tax is due on a previously filed tax return and want to correct the error.

Who Is Not Eligible?

There are a few restrictions. Participants in the 2010 tax amnesty are excluded, as are taxpayers under a criminal investigation, criminal prosecution, or conviction for violating a tax law. Also excluded are those in bankruptcy – unless granted permissions by a bankruptcy court – and taxpayers with a current voluntary disclosure agreement for periods eligible for the program.

Deeper Dive

You can help your clients determine if they have delinquent taxes eligible for tax amnesty. Tools are available on the Department of Revenue’s website for individuals and businesses. First time users will need to register. Interest calculators are available for individuals and businesses as well.

More information about the 2017 tax amnesty program rules and requirements are available in this webinar and on our temporary web page revenue.pa.gov/taxamnesty. Look for a tax amnesty website with application and payment information in 2017.

John Kaschak, CPA, is deputy secretary for taxation with the Pennsylvania Department of Revenue. He also appeared as a guest on PICPA's CPA Conversations podcast series to discuss more details about the amnesty program.