Why does the Department of Revenue require an EIN for the R&D credit electronic applications for subcontractors that taxpayers are not required to issue 1099s for?

We provide here a written summary of answers provided by the Department of Revenue to the committee at periodic question and answer sessions. 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 a specific fact situation may request a written letter ruling under 61 Pa. Code Section 3.3.

Q&A with the Pennsylvania Department of Revenue

Why does the Department of Revenue require an EIN for the R&D credit electronic applications for subcontractors that taxpayers are not required to issue 1099s for?

Nov 15, 2019
The Department of Revenue may request this information to help substantiate the business’s activity. It can also be used to ensure that the activity is not being claimed by both the applicant and its sub-contractor(s).
 

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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.