Q&A with the Pennsylvania Department of Revenue

Is there interest for late payment of tax after timely filing a CNIT extension?

Jun 23, 2010
Scenario:

On or before 4/15/09, QRS Corp. and TUV Corp., its wholly-owned subsidiary, timely filed CNI Tax extensions. As of April 15th 2009, QRS Corp. and TUV Corp. had remitted 2008 CNI Tax payments in the amount of $10,000 and $5,000, respectively. Upon the filing of their reports on 10/15/09, ABC Corp.’s CNI Tax liability was $5,000 and TUV Corp.’s CNI Tax liability was $10,000. ABC Corp. requested that its $5,000 overpayment be transferred to TUV Corp.

Q:

Would TUV Corp. be assessed any interest for late payment of tax under these circumstances?

A:

No, assignments or transfers will be applied as of the date of the payment that created the credit. As long as the payment date(s) are prior to the due date for the year the credit is being applied no interest would be assessed.

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These documents provide a summary of the answers provided by the Department of Revenue to the PICPA Committee on State Taxation at its annual question and answer session. These documents are classified as revenue information issued for informational purposes only for the convenience of PICPA members. Pursuant to 61 Pa. Code Section 3.4, these documents should not be relied upon for any purpose or used in tax appeals. Taxpayers requiring a binding opinion on their specific fact situation may request a written letter ruling under 61 Pa. Code Section 3.3.