Administrative:
Pennsylvania: Philadelphia DOR Reminds about Voluntary Disclosure Program and Potential Benefits

Posts: Stay compliant, get your business back on track, City of Philadelphia, Pa. Dept. of Rev. (7/28/22). The City of Philadelphia, Pennsylvania (City) Department of Revenue (Department) recently posted a reminder to its taxpayers that if they are aware of any past unmet City tax obligations, “the best thing to do is to take advantage of the City’s voluntary disclosure program to become compliant.” In doing so, the Department explains that examples of taxes eligible for this program include the City’s Business Income and Receipts Tax (BIRT), Net Profits Tax (NPT), School Income Tax, Wage Tax, Earnings Tax, and Use and Occupancy Tax, and that, if accepted into this program, participants must:

• Voluntarily or self-report their unfulfilled City tax obligations,
• Be open about what they owe the City in taxes for up to six years, and
• Pay the full amount of the City tax they owe plus interest within 60 days of the bill date.

Furthermore, the Department clarifies that taxpayers do not qualify for this voluntary disclosure program if they need a payment plan to clear their debts. In exchange for their honesty and program participation, the Department generally provides that it will not audit or bill eligible participants for taxes disclosed for any years before the six-year disclosure period and will waive any penalties accrued within the disclosure period. Please contact us with any questions.