Pennsylvania – Sales Tax Prepayment Options

SALT Report 1749 – The Pennsylvania Department of Revenue issued a reminder regarding the new prepayment option for businesses with sales and use tax liabilities.  Due to recent legislative changes, companies with tax liabilities under $100,000 for the third quarter of 2011 will be allowed to use an alternate prepayment method.

The alternate method will allow businesses to make either a sales tax prepayment equal to 50% of the tax liability for the same month of the previous year, or they can choose to make a prepayment of at least 50% of the tax liability for the current period. The new prepayment option is designed to help businesses deal with monthly sales fluctuations and remain compliant with their prepayment obligations.

The Department will notify businesses affected by the change along with the prepayment calculation method they will be required to use by mail or email. Businesses that do not receive a notice should continue to calculate their prepayment using the tax liability from the same month of the prior year.

For Further Information:

Pennsylvania Department of Revenue – Tax Update 163