Pennsylvania – Amended Payment, Filing, and Audit Provisions

SALT Report 2755 – Recently enacted legislation in Pennsylvania amends certain electronic payment and filing requirements, and prohibits audit related contingent fee contracts.

Effective January 1, 2014 all tax payments of $1,000 or more made by individuals must be made electronically.  This requirement does not apply to personal income tax payments.  Prior to the amendment, the payment threshold was $10,000.

Effective January 1, 2014 electronic filing is required for returns or reports that are filed by a third-party tax preparer that submits more than 10 returns or reports to the Department of Revenue per year.  Previously, the filing threshold for third party preparers was 50.

Additionally, effective July 18, 2013, the Department is no longer authorized to enter into a contingent fee contract under which the contractor is directly responsible for conducting a field audit.  For purposes of the legislation, a contingent fee contract is one that allows the contractor to receive payment based on the amount of taxes, interest, penalties, or fees collected; or the amount of refunds saved on behalf of the Department.

For Further Information

Pennsylvania State Legislature – Senate Bill 591, Laws 2013