Pennsylvania: Voluntary Compliance Opportunity for Owners of In-State Inventory

The Pennsylvania Department of Revenue has announced a new voluntary compliance effort aimed at retailers that had inventory or other property stored in Pennsylvania and had not filed the appropriate returns. The program, which will run through May 8, 2021, offers penalty relief for past due tax returns that were not filed and taxes that were not paid. It does not appear that interest will be abated. For participating businesses, the lookback period is limited to January 1, 2019, and taxpayers that participate in the program will not be liable for taxes prior to that date. To apply, taxpayers must complete and submit a business activity questionnaire. Similar to the traditional voluntary disclosure program, it appears taxpayers can seek to become compliant with regard to any tax administered by the Department of Revenue (corporate net income tax, sales and use tax, employer withholding tax, etc.). Unlike the traditional program, being registered with the Department of Revenue does not appear exclude a taxpayer from participation. Please contact Mark Balistrieri at 412-232-1556 for more information on Pennsylvania’s voluntary compliance program.