Pennsylvania Sales Tax Guide
Chapter 7: How to manage late Pennsylvania sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your Pennsylvania sales tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.What do I do if I missed my Pennsylvania sales tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.What penalties and interest payments are imposed by the Pennsylvania Department of Revenue?
The Pennsylvania Department of Revenue levies unique penalties for each specific type of sales tax that is filed late. However, interest charges are the same for all tax types.
The penalty for past due payment of Pennsylvania sales tax is 5 percent per month from the date due until the date the outstanding balance is paid. The penalty is capped at a maximum of 25 percent. If some cases, it may be determined that an underpayment penalty is warranted. In such instances, the penalty is imposed at a rate of 3 percent a month on the unpaid tax balance from the date filed to the date paid to a maximum of 18 percent.
The interest rate for any given year is established by the U.S. Treasury Secretary and is effective on January 1st of each year. The per diem rate is arrived at by dividing the announced interest rate by 365 (representing the number of days in a year) and the result becomes the per diem rate.If I acquire a business, am I responsible for any outstanding sales tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the Pennsylvania Department of Revenue and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding Pennsylvania sales and use tax liability.