On June 1 2019, The Pennsylvania Department of Revenue released it’s annual report concerning the Enhanced Revenue Collection Account (ERCA). Act 46 of 2010 created the Enhanced Revenue Collection Account (ERCA). Monies are appropriated to the department to expand tax return reviews and tax collection activities.
Listed below are a few of the activities the ERCA funding provides for (from the report):
“ERCA funding has enabled the department to increase its scrutiny of returns requesting refunds as well as to initiate additional audits and enhanced compliance and collections activities. The Bureau of Corporation Taxes, the Bureau of Individual Taxes, the Bureau of Audits, the Voluntary Disclosure Program, and the Deputate of Compliance and Collections were provided with extra staff and resources, resulting in more audits, greater collections activity, and additional tax compliance initiatives.”
“Tax Discovery Specialists investigate and add previously unregistered business taxpayers, both traditional and those newly emerging as part of the “Sharing Economy,” to Pennsylvania business tax rolls. The sharing economy consists of emerging online platforms that connect buyers with sellers for short-term rentals of residences (home sharing), transportation (ride sharing) and home repair services. In the 19 months since the passage of Act 43 of 2017, which established marketplace sales tax collection, they have had significant successes in bringing many marketplace facilitators, sellers, and referrers into compliance with PA sales tax collection and use tax notification and reporting obligations. Additional Revenue Collection Agents were assigned to Field Tax Enforcement and Collections, allowing the department to increase its direct field audit activities. Personnel also provided administrative support to the Collection Agency Program, which utilizes private collection agencies through the Office of Attorney General. Furthermore, Field Auditors were added to the Field Audit staff, increasing their capacity to conduct on-site audits.”
“ERCA funding has allowed the department to implement a program to discover online businesses failing to (1) register, collect, and remit Pennsylvania sales taxes on sales to PA purchasers, and (2) report and pay income tax for their online businesses.”
Read the report HERE