• Philadelphia and Pennsylvania Tax Amnesty Expiring June 2010
  • January 12, 2011 | Author: Kevin M. Greenberg
  • Law Firm: Flaster/Greenberg P.C. - Philadelphia Office
  • The City of Philadelphia and the Commonwealth of Pennsylvania have instituted tax amnesty programs that apply to individuals and businesses. 

    Taxpayers who owe a wide variety of state and city taxes can voluntarily disclose delinquent taxes to the taxing authority, and all penalties and half of all interest due will be waived.  This will in many cases reduce by a large percentage the amount due and will in all cases resolve collection activity.

    The deadlines for the programs are firm and applicants must act within the time allowed.  The Philadelphia tax amnesty period is from May 3, 2010 to June 25, 2010, and the Pennsylvania tax amnesty period is from April 26, 2010 to June 18, 2010.  

    Although amended returns should not be filed until the amnesty begins, your accountant and attorney can begin working with you now to ensure that you have all the materials ready to apply during the limited window.

    PHILADELPHIA CITY TAXES

    Philadelphia will offer amnesty for all taxes collected by Philadelphia, except for Sales and Use Tax and three taxes that apply to hospitals and hotels.  Any tax due between February 1, 1986 and June 30, 2009 is eligible, except for taxes owed by taxpayers: (i) who are the subject of a criminal investigation; (ii) who are the defendant in a criminal complaint related to Philadelphia taxes; or (iii) who participated in a prior Philadelphia tax amnesty program. 

    PENNSYLVANIA STATE TAXES

    Pennsylvania's amnesty will extend to any tax due before June 30, 2009, no matter how long ago it arose, so long as it is not currently being appealed, and extends to all taxes administered by the Pennsylvania Department of Revenue.  The exceptions for the state program are for taxpayers: (i) who are subjects of a criminal investigation related to tax law; (ii) who are a defendant in a criminal complaint related to Pennsylvania tax law; or (iii) who are currently in bankruptcy protection or who previously received a discharge of Pennsylvania tax liabilities through a bankruptcy court. 

    Flaster/Greenberg can assist you in assessing your eligibility for the tax amnesty programs and in processing your amnesty request.

    If you would like more information about the tax amnesty programs discussed in this alert, please contact Kevin M. Greenberg or any member of the Taxation, Real Estate, or Business and Corporate Services Practice Groups at Flaster/Greenberg PC.