2017 PENNSYLVANIA TAX AMNESTY PROGRAM

PA Amnesty Program

What Is The Pennsylvania Tax Amnesty Program?

The PA Tax Amnesty program creates an incentive for taxpayers to pay there tax liabilities during a narrow time period that ends on June 19, 2017.  While this program is open, the PA Department of Revenue will waive all penalties and half of the interest for anyone who participates in the Tax Amnesty program.

 

What tax periods are eligible for the Tax Amnesty program?

Eligible periods for tax amnesty are those where a delinquency exists as of December 31, 2015, whether the delinquency is known or unknown to the department.

What taxes are eligible for the Tax Amnesty program?

The taxes administered by the department, listed below, are eligible for the Tax Amnesty program:

  • Agriculture Cooperative Tax;
  • Bank and Trust Company Shares Tax;
  • Capital Stock or Foreign Franchise Tax;
  • Cigarette Tax;
  • Corporate Net Income Tax;
  • Corporate Loans Tax;
  • Electric Cooperative Tax;
  • Employer Withholding Tax;
  • Financial Institutions/Title Insurance Company Shares Tax;
  • Fuel Use Tax;
  • Gross Premiums Tax;
  • Gross Receipts Tax
  • Hotel Occupancy Tax, including the state administered 1% Local Hotel Occupancy Tax for Philadelphia and Allegheny    County;
  • Inheritance and Estate Tax;
  • Liquid Fuels Tax;
  • Malt Beverage Tax;
  • Marine Underwriting Profits Tax;
  • Motor Carriers Road Tax, for IFTA vehicles, PA portion only;
  • Motor Vehicle Carriers Gross Receipts Tax;
  • Mutual Thrift Institutions Tax;
  • Oil Company Franchise Tax;
  • Parimutuel Wagering and Admissions Tax;
  • Personal Income Tax;
  • Public Transportation Assistance (PTA);
  • Public Utility Realty Tax;
  • Realty Transfer Tax, including Local Realty Transfer Tax;
  • Sales and Use Tax, including Local Sales and Use Tax for Philadelphia and Allegheny County;
  • Surplus Lines Tax;
  • Unauthorized Insurance Tax, monthly; and Vehicle Rental Tax (VRT)

Note:  The Tax Amnesty program does not apply to Unemployment Compensation because it is administered by the Pennsylvania Department of Labor and Industry.

Note:  Also, the Tax Amnesty program does not apply to any tax administered by another state, local government or the federal government/Internal Revenue Service.

What are the benefits of the Tax Amnesty program?

You may resolve your tax amnesty eligible debt by paying the tax and half of the interest. The benefits of the tax amnesty program are the following:

Continue reading

IRS Installment Agreements: 2017 User Fee Schedule and Options

irs-installment-agreement-fees-2017

Starting in 2017, the IRS has revised its user fee schedule for installment agreements. The new fee schedule applies to installment agreements entered into, restructured or reinstated on or after January 2, 2017.

The final regulations increase the existing user fees (except for low-income taxpayers) and create two new types of online installment agreements, each subject to a separate fee. Five of these rates are based on the full cost of establishing and monitoring installment agreements, while the sixth rate is for low-income taxpayers.

Here are the new fees effective starting in 2017:

(1) A top rate of $225, up from the current rate of $120, applies to taxpayers who enter into installment agreements in person, over the phone, by mail, or by filing Form 9465, Installment Agreement Request, with the IRS.

Note: This includes taxpayers requesting installment agreements with their e-filed returns.

(2) A reduced rate of $107, up from $52, applies to a direct debit agreement.

(3) A taxpayer who sets up an installment agreement through IRS.gov and agrees to make payments either by mailing a check or through the Electronic Federal Tax Payment System (EFTPS) will pay $149.

Continue reading

Image

A Handy Chart of 2017, 2016 and 2015 Retirement Plan & IRA Contribution Limits, Maximum Benefits, Maximum Income Subject to Social Security

retirement-plan-contribution-limits

IRS Warns & Updates Taxpayers of Numerous Tax Scams Nationwide: All Taxpayers, Tax and Financial Advisers Need To Read This

irs-scams

You Do Not Want To Be In This Position

 

As tax season approaches, the Internal Revenue Service, in IR-2016-164,  has just reminded taxpayers to be on the lookout for an array of evolving tax scams related to identity theft and refund fraud.

Every tax season, there is an increase in schemes that target innocent taxpayers by email, by phone and on-line. Taxpayers and tax professionals can not be too careful and should be on the lookout for these deceptive schemes.

“Whether it’s during the holidays or the approach of tax season, scam artists look for ways to use tax agencies and the tax industry to trick and confuse people,” said IRS Commissioner John Koskinen. “There are warning signs to these scams people should watch out for, and simple steps to avoid being duped into giving these criminals money, sensitive financial information or access to computers.”

Here are Seven of the Most Prevalent IRS Impersonation Scams:

Continue reading

Do You Want To Know About Your IRS Account Balance? IRS Launches New Online Tool to Assist Taxpayers with Basic Tax Account Information

irs-online-toolThe Internal Revenue Service announced on December 1, 2016 (IR-2016-155) the launch of an online application that will assist taxpayers with straightforward balance inquiries in a safe, easy and convenient way.

This new and secure tool, available on IRS.gov allows taxpayers to view their IRS account balance, which will include the amount they owe for tax, penalties and interest.

It also should be pointed out that taxpayers may also continue to take advantage of the Continue reading

Tax Update: Governor Christie Reverses and Repeals New Law and Reinstates Pennsylvania-New Jersey Reciprocal Tax Agreement Preventing Adversely Impacting 250,000 Workers & Thousands of Employers

pa-nj-reciprocal-tax-agreement-terminated

IMPORTANT TAX ALERT:

New Jersey Governor Chris Christie on Tuesday, November 22, 2016, reinstated a four-decade old tax reciprocity agreement with Pennsylvania that allows residents who work in either state to pay income taxes at their home state’s rate. You can almost hear the collective sigh of relief of the many commuters that would have been adversely impacted by this new law. Continue reading

City of Philadelphia Department of Revenue Announces Wage Tax Reduction for July 1, 2016

clothespin-statue-philadelphia

Philadelphia Landmark:
The Famous and Quirky 45 Foot Steel Clothes Pin Created by Sculptor Claes Oldenburg Across from City Hall

 

The City of Philadelphia has reduced the City Wage Tax rate effective July 1, 2016.

  • The new Wage Tax rate for residents of Philadelphia is 3.9004% (.039004).
  • The new Wage Tax rate for non-residents of Philadelphia who are subject to the Philadelphia City Wage Tax is 3.4741% (.034741).

What does this mean to you?

Any paycheck that you issue with a pay date after June 30, 2016 must have Philadelphia City Wage Tax withheld at the new rate.

Continue reading