Pennsylvania – Filing Mandate for Third-Party Preparers

SALT Report 1592 – The Pennsylvania Department of Revenue has issued a notice regarding third party tax preparers who prepare 50 or more tax returns during a reporting period.  Effective January 1, 2013 third party preparers will be required to file all Sales, Use and Hotel Occupancy Tax Returns (Form PA-3) electronically.
Filing Mandate
Third Party Preparers – Any person, fiduciary, corporation, or entity that prepares for compensation, or who employs one or more people to prepare for compensation returns for a tax administered by the Department or is assigned a Preparer Tax Identification Number (PTIN) by the Internal Revenue Service.
50 Return Threshold -A third party preparer must include all Pennsylvania Sales, Use and Hotel Occupancy Tax Returns that the third party preparer or his employees prepare and submit to the Department. This amount includes all original and amended returns that can be e-filed with the Department.  If a third party preparer has multiple business locations, the combined total of all the returns for all locations are included.
Once a third party preparer is subject to this filing mandate, the third party preparer will continue to be subject to the mandate regardless of how many Pennsylvania Sales, Use and Hotel Occupancy Tax Returns they prepare during a calendar year.
All third party preparers subject to the filing mandate must use tax software that is compatible with the Department’s e-filing requirements.
Penalties
Any third party preparer who fails to file a Pennsylvania Sales, Use and Hotel Occupancy Tax Return by the method required under this notice will be subject to a penalty of 1% of the tax due on the return up to $500, but not less than ten dollars $10.
For Further Information: