(Updated April 14, 2020) On March 20, 2020, the Pennsylvania Department of Revenue (DOR) released a series of tax alerts in response to the ongoing COVID-19 pandemic. Our team of attorneys briefly describes several of the material updates below. However, due to the rapidly changing nature of this pandemic, additional guidance will evolve and be communicated in the coming weeks.
Waiver of Penalties on all Accelerated Sales Tax Payments (“Prepayments”) – As most larger businesses know, in Pennsylvania, if a certain threshold of sales has been exceeded for a prior tax period, the business must prepay a portion of its estimated sales tax to be remitted to the Commonwealth on or before the 20th of each month. However, due to the COVID-19 pandemic, this prepayment requirement has been waived for any business that has failed to make the prepayment prior to March 21. Recently, the DOR has also waived the prepayment requirement for April, May and June and asks that all businesses simply remit the sales tax that they collected in the prior month. This issue will be updated on a month-to-month basis as the pandemic progresses.
Closed Offices – The DOR’s Inheritance Tax Returns, Tax Appeals, Assessments and Notices, and IFTA/MCRT Requirements offices are now closed. In addition, all customer service call centers are currently closed. This means those who attempt to visit a DOR district office or call the department over the phone will be unable to reach a representative.
Inheritance Tax Return Due Dates – If a taxpayer is filing an Inheritance Tax return or making a payment due during the timeframe that offices were closed, the DOR is instructing that taxpayers place a date received as of March 12, 2020, on the return and the receipt. In addition, the DOR is currently making system modifications so penalties are not applied for payments received late that otherwise would have been timely.
Board of Appeals Automatic Extensions – In regard to any appeal or refund deadline that fell after March 16, 2020, the DOR is now extending the filing deadline. Specifically, a tax appeal or refund petition will be accepted as timely if it is filed by the later of the following dates:
- 30 days after the reopening of the Board of Appeals offices; or
- The original appeal deadline.
Information on New Assessment Notices – The DOR continues to process electronically filed tax returns and payments while government operations are shut down due to the COVID-19 outbreak. If you receive or received a notice or assessment from the DOR that requires a response by a specific date, please know that the deadline to respond is temporarily suspended.
Personal Income Tax Return Due Date – In conjunction with the federal government’s decision to extend the due date (filing and payment) of all personal income tax returns from April 15, 2020 to July 15, 2020, the DOR has decided to follow suit and extend the due date (filing and payment) of all Pennsylvania personal income tax returns from April 15, 2020 to July 15, 2020.
If you have any questions regarding how the COVID-19 pandemic impacts your business or personal situation, please contact us using the form below, or give us a call at 610-797-9000. We wish you well during these extraordinary times.
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