Penalty Assessments to be Mailed in Final Step of Pennsylvania Tax Amnesty Program

From the PA Department of Revenue | January 8, 2018

The Pennsylvania Department of Revenue has begun mailing non-participation penalty assessments to delinquent taxpayers who failed to participate in the 2017 Tax Amnesty program, Revenue Secretary Dan Hassell announced.

"Individuals and businesses that failed to take advantage of the program will be assessed a five percent penalty on their unpaid amnesty eligible delinquencies, as the law requires," Hassell said. "The department is taking the appropriate steps to ensure that delinquent taxpayers are aware of their outstanding liabilities and the additional penalties they now face."

Act 84 of 2016 authorized the Tax Amnesty program to net an estimated $100 million for the 2016-17 fiscal year budget. The program exceeded that estimate by providing $130.4 million in net revenue to the commonwealth.

The program ran for 60 days, between April 21 and June 19, and allowed eligible individuals and businesses to pay past-due state taxes while having all the penalties and half of the interest waived.

Act 84 required the Department of Revenue to notify all known delinquent taxpayers in writing of the existence of the Tax Amnesty program. As a result, the department mailed notification letters to approximately 800,000 known delinquent taxpayers. The statute also called on the department to publicize the program to maximize public awareness and participation.