Pennsylvania: New Sales & Use Tax Desk Review Seeks Non-Filers, Under-Reporters

A new sales and use tax desk review practice is being instituted at the Pennsylvania Department of Revenue Pass-Through Business Office. It is being created to help economically uncover sales and use tax under-reporters and non-filers in Pennsylvania.

Under the new desk review practice, the Pass-Through Business Office will “[r]eview business tax filings to explore instances where sales tax is due on taxable purchases …but may not have been paid.” This often occurs when businesses purchase goods and equipment online, from a catalog, or in another state.

The sales and use tax desk review practice may be conducted on its own or "in tandem with the Pass-Through Business Office personal income tax reviews.” However, it is “separate from department field audits.”

If sales or use tax liabilities are uncovered during the desk review, liabilities will be imposed. The department warns that taxpayers “who fail to respond to department inquiries will be referred for further enforcement, which could include audits and/or direct assessments.” Additional information is available in this Tax Update.

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