Pennsylvania begins tax amnesty program

Pennsylvania will follow in the steps of New Jersey in trying a statewide tax amnesty program.
It’s a growing strategy as tax revenues continue to remain depressed.
In an effort to bring in at least 190 million dollars, the state is offering incentive to delinquent taxpayers: penalties will be waived, and interest will be halved between now and June 18th.

Pennsylvania will follow in the steps of New Jersey in trying a statewide tax amnesty program.

It’s a growing strategy as tax revenues continue to remain depressed.

In an effort to bring in at least $190 million, the state is offering incentive to delinquent taxpayers: penalties will be waived, and interest will be halved between now and June 18.

Governor Rendell says in addition to dangling that carrot, the state is also leveling a threat, “There will be a five percent penalty added for non-participation. That was part of the original act. So if you’re delinquent up there and you say, ‘what the heck? I’ve gotten away with it until now.’ Well, we’re coming for you anyway, and you’ll pay five percent more because you don’t participate in this program.”

Corporations owe 62 percent of those unpaid back taxes, and 20 percent of tax delinquents currently live out-of-state.
Rendell says the state will launch a three-million dollar advertising campaign to publicize the tax amnesty window.
The Revenue Department is budgeting $16.8 million for the total amnesty effort.