Q&A with the Pennsylvania Department of Revenue

When there are “other credits” (e.g., EITC) flowing through to an S shareholder, why must a separate return be filed?

Sep 30, 2013
Q.

When there are “other credits” (e.g., EITC) flowing through to an S shareholder, why must a separate return be filed? This creates a compliance burden – separate returns for each spouse, joint income needs separated; estimated payments need allocated; etc.

A.
The department’s current legacy computer system is not capable of determining which taxpayer utilizes a tax credit on a joint return. In addition, the department’s computers are not capable of determining or recording the tax liability of each taxpayer shown on a joint return separately from one another. Furthermore, many credits require the department to provide the legislature with the names of the taxpayers utilizing the tax credit. We are hopeful that the Integrated Tax System will be able to solve this problem when it becomes available to Individual Taxes.

Leave a comment

Watch: 2019 Q&A with the DOR
Watch: 2019 Q&A with the DOR

Watch Now

A PICPA member login is required to access this content. A full transcript is also available.

Full Transcripts:
Annual Meetings
     
Oct. 2019      Oct. 2018

Oct. 2017      Oct. 2016

  Sept. 2015     Sept. 2014

Full Transcripts:
Quarterly Meetings
Disclaimer

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.