Pennsylvania followed the federal government’s lead, announcing on March 21 that the due date for filing PA individual income tax returns and making corresponding payments has been extended until July 15. That’s not the only deadline extended in light of the coronavirus crisis. Below, we round up notable state tax and reporting changes. We’ll continue to update this post as more information becomes available.
Personal Income Tax
The Pennsylvania Department of Revenue (PA DOR) has pushed back the due date for filing Pennsylvania personal income tax returns and paying amounts due from April 15 to July 15, which gives taxpayers an additional 90 days to file. This includes final 2019 returns as well as first and second quarter estimates for 2020. PA DOR will also waive penalties and interest on 2019 personal income tax payments through the new July 15 deadline. Keep in mind, PA DOR staff are still able to process electronically filed returns, so taxpayers who are able to file in that manner may continue to do so.
PA DOR has not been processing mail during the closure, so there may be a delay in the posting of any checks that have been mailed in.
Pass-Through and Trust Filings
The new deadline for individuals was ultimately expanded to include S Corporations, partnerships, and trust returns, as well as pass-through nonresident and corporate withholding. Returns, along with first and second quarter estimates, are now due July 15.
Corporate Net Income Tax
The May 15 Pennsylvania corporate due date is extended until August 14, which is in line with the current statute that provides for a deadline of 30 days after the federal extended due date of July 15. This applies to both returns and payments due April 15. The second quarter corporate estimate remains due June 15.
Sales & Use Tax
At the time of this writing, there is no expectation of deadline extension for sales and use tax returns and payments. However, PA DOR did waive penalties for businesses required to make Accelerated Sales Tax (AST) prepayments by the deadline of Friday, March 20. More recently, it also has waived the AST prepayment requirement for the months of April, May and June 2020.
State Tax Appeals
PA DOR is also providing (in certain cases) additional time for taxpayers appealing a tax assessment. PA DOR’s Board of Appeals extended the deadline for petitions to 30 days after the reopening of the Board of Appeals offices OR the original appeal deadline, whichever is later. Refund petitions should be filed based on original due dates (three years from payment) and should be submitted electronically to the Board of Appeals.
State Tax Assessments/Notices
While notices and assessments may continue to be sent out, the deadline to respond is temporarily suspended until PA DOR offices are reopened.
State and local government offices are currently closed to prevent coronavirus spread, which impedes the ability of taxpayers to file inheritance tax payments. In response, PA DOR asked County Register of Wills offices across the commonwealth to mark any return or payment that was due during the office closure as received on March 12, 2020. PA DOR modified its system to avoid penalizing late payments that would otherwise have been made timely during office closures.
Most localities and collection agencies have announced extensions for local personal earned income tax returns and first quarter estimates due April 15. PA House Bill 1232 provided the Pennsylvania Department of Community and Economic Development (DCED) with the authority to coordinate extensions with the local taxing agencies.
The city of Philadelphia has extended the deadlines for business income and receipts tax (BIRT), net profits tax (NPT), and real estate tax. BIRT and NPT due April 15 is now due July 15, 2020. The real estate tax, originally due March 31, was extended 30 days to April 30, 2020 (this extension also includes applications for an installment payment plan for 2020 real estate taxes).
Surprisingly, Philadelphia School Income Tax (SIT) remains due April 15. For taxpayers unable to file timely, the City of Philadelphia is requesting an extension to be filed along with a payment equal to prior year’s SIT liability. The taxpayer then has until July 15 to make up any difference.
Local Business Privilege Tax due date extensions are on a locality-by-locality basis. A number of them have extended the deadline to July 15. We expect other localities to follow suit.
Property Tax/Rent Rebate Program
Older Pennsylvanians or those with disabilities now have until the end of calendar year 2020 to submit an application for a rebate of property tax or rent paid in 2019. The original deadline of June 30 is now pushed back until December 31, 2020.
Unclaimed Property Reports
Holders of unclaimed property must remit reports and property each year to the Pennsylvania Treasury by April 15. Treasury recently announced a two-month waiver of all fines, penalties and interest otherwise applicable for late filed reports and extended the reporting deadline to June 15, 2020.
RKL’s State and Local Tax team continues to monitor new updates from state and local taxing authorities and government entities and will update this post as new information becomes available. Taxpayers may also reference the PA DOR alert page for breaking information. Contact us via the form at the bottom of this page with any questions or requests for assistance.