Pennsylvania new voluntary compliance program for businesses with in-state inventory
March 2021
Overview
The Pennsylvania Department of Revenue has announced a 90-day voluntary compliance program to run until May 8, 2021, which allows any business that has inventory or stores property in the state but that is not registered to collect and pay Pennsylvania taxes to become compliant. The program offers a limited look-back period and penalty relief.
The takeaway
Although the program is targeted to retailers, the text of the announcement says the program is being offered "to any business that has inventory or stores property in Pennsylvania but is not registered to collect and pay Pennsylvania taxes.” The look-back period can be particularly attractive in that only taxes due on or after January 1, 2019, will be due. Under the state’s current VDA program, corporate taxes for the five previous years plus the current year must be paid and, for sales and use and other taxes, taxpayers must pay taxes for the three previous years plus the current year. However, since this new program requires the business activity questionnaire to be filed, it lacks anonymity, which is one of the benefits of the state’s standard VDA program.
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