For taxpayers who have already e-filed their returns and have electronic withdraw payments scheduled for April 15, 2020, can these payments be changed/deferred by the IRS/Pennsylvania until July 15, even though the e-filed returns indicate April 15? Or will they still draw on April 15 without change? Is there a means to modify the date other than an amended return?
The IRS will not/cannot automatically change these dates. They will still draw on April 15 if no change is made. If a taxpayer is seeking to delete the April 15 payment that they previously scheduled, they should use the department’s Online Customer Service Center available at revenue-pa.custhelp.com. As a result of office closures due to COVID-19 and the Governor’s emergency declaration, there are minimal department personnel available to assist with deleted these payments. The department will make every effort to honor these requests before the April 15 payment date. Taxpayers are reminded that they will need to reschedule any deleted payments prior to the July 15, 2020, due date. The department cannot actually change the pay date.
How can I find out if other states have extended their tax filing and payment deadlines?
The AICPA has compiled this chart, which provides an update on tax filing in all U.S. states.
What about AST prepayments?
The DOR announced that it is waiving penalties for businesses that are required to make accelerated sales tax (AST) prepayments by Friday, March 20, 2020. The DOR also indicated, "additionally, for April sales tax payments, the department is waiving the AST prepayment requirement and asking businesses to simply remit the sales tax that they have collected in March."
Are the Pennsylvania Certificate of Annual Registration Form and annual fee of $560 times the number of persons who were members of a Pennsylvania-restricted professional companies, known to most as a professional limited liability company (PLLC), still due on or before April 15, or have the form and payment been extended?
At this time, the Department of State has NOT extended the due date for this form. Monitor the Department of State website for updates.
Will an employee working from home temporarily due to the COVID-19 pandemic create nexus for Pennsylvania Corporate Net Income Tax (CNIT) purposes for a business that otherwise does not have nexus with Pennsylvania?
Gov. Tom Wolf issued a Proclamation of Disaster Emergency on March 6, 2020. As a result of COVID-19 causing people to temporarily work from home as a matter of safety and public health, the department will not seek to impose CNIT nexus solely on the basis of this temporary activity occurring during the duration of this emergency. Related answers from the DOR.
If an employee who normally works in Pennsylvania and receives Pennsylvania source compensation works from home in another state temporarily due to the COVID-19 pandemic, does the source of his compensation change to non-Pennsylvania source compensation?
Gov. Tom Wolf issued a Proclamation of Disaster Emergency on March 6, 2020. If the employee is working from home temporarily due to the COVID-19 pandemic, the department would not consider that as a change to the sourcing of the employee’s compensation. It would remain Pennsylvania source income for all tax purposes, including PA-40 reporting, employer withholding and three-factor business income apportionment purposes. Related answers from the DOR.
Will an employee working from home temporarily due to the COVID-19 pandemic create nexus for Sales and Use Tax (SUT) purposes for a business that otherwise does not have nexus with Pennsylvania?
Gov. Tom Wolf issued a Proclamation of Disaster Emergency on March 6, 2020. As a result of COVID-19 causing people to temporarily work from home as a matter of safety and public health, the department will not seek to impose SUT nexus solely on the basis of this temporary activity occurring during the duration of this emergency. Related answers from the DOR.
Will a Pennsylvania employer of a nonresident employee temporarily working from home due to the COVID-19 pandemic in a state that doesn’t have a reciprocity agreement with Pennsylvania be required to withhold PIT on compensation paid for the temporary at-home work?
If the employee is working from home temporarily due to the COVID-19 pandemic, the department would not consider that as a change to the sourcing of the employee’s compensation. That means the employee’s compensation remains Pennsylvania source, and the employer is required to withhold on the compensation. Read related answers from the DOR.
Is accounting considered life-sustaining?
Yes, accounting, tax, and payroll services have been added to the list of life-sustaining businesses as of March 20 by Gov. Tom Wolf. It is still recommended to work from home whenever possible to prevent disease transmission. This also includes individuals providing those services in industry.
What is the government doing to help me and/or my employees during this time?
The Families First Coronavirus Response Act, which was recently signed into law, seeks to ensure the safety of Americans and ease the economic toll of the coronavirus (COVID-19) by strengthening the social safety net. Gallagher Affinity has a summary of what is available to employers and employees.
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