Pennsylvania Provides COVID-19 Sales Tax Relief
As COVID-19 (a.k.a. New Coronavirus) continues to spread and hold our businesses and economy hostage, State governments are starting to respond with much-needed relief by offering things like filing and payment deadline extensions for sales and use tax returns. In some cases, penalties and/or interest due to late payments are being waived as well.
To date, the Pennsylvania Department of Revenue has issued the following taxpayer relief:
- Extended the due date for corporations with tax returns due in May to August 14, 2020.
- Extended Personal Income Tax Return Filing Deadline (also applicable to Partnerships, S-Corps and Trusts/Estates)
a. The DOR has extended the deadline for taxpayers to file their 2019 Pennsylvania personal income tax returns to July 15, 2020.
b. The DOR is also waiving penalties and interest on 2019 personal income tax payments through July 15, 2020. This extension applies to both final 2019 tax returns and payments, and estimated payments for the first and second quarters of 2020.
NOTE: Federal Stimulus Checks are not subject to PA taxes as it is considered a rebate that is non-taxable in Pennsylvania.
- Waiver of Penalties on Accelerated Sales Tax (AST) Prepayments
a. The PA DOR is waiving penalties for businesses that are required to make AST prepayments by the deadline of Friday, March 20.
b. The PA DOR is waiving the AST prepayment requirement for April sales tax payments but still asking businesses to remit the sales tax collected in March.
- Extending all business tax licenses and certifications that are set to expire until further notice. This extension applies to:
a. Sales, Use and Hotel Occupancy tax licenses
b. Public Transportation Assistance (PTA) Fund taxes and fees
c. Small Games of Chance Manufacturer Certificates
d. Small Games of Chance Distributor Licenses
e. Sales Tax Exemption Certificates
- Extension of Tobacco Product Dealer Licenses
a. The PA DOR is extending all tobacco products dealer licenses that were set to expire February 29, 2020, until further notice from the department.
b. This extension applies to all tobacco product dealer licenses, and this notice serves as department authorization for manufacturers, cigarette stamping agents, wholesalers, retailers and vending licensees that cigarette and other tobacco product purchases may be made using a 2019/2020 license until further notice from the department.
Be sure to check back frequently as we will add new information and updates as they become available. It is important for business owners, Pennsylvania sales tax lawyers, CPA’s and other professionals to stay up to speed on this fluid situation. Also, reference the Pennsylvania Department of Revenue website for the latest state tax guidance.
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