New Pennsylvania Electronic Payment Requirements for Personal Tax Payments Greater than $15,000 Beginning January 1, 2022.

Tucked into legislation that passed June 30, 2021 that begins to impact certain taxpayers beginning January 1, 2022 is a requirement that personal income tax payments equal to or greater than $15,000 must be paid electronically.  Taxpayers should expect to find themselves subject to a 3% penalty not to exceed $500 if a payment required to be paid electronically is made by check.  

Pennsylvania 2021 House Bill 952 added 72. Pa. Stat. §7332.1 reads:

Any payment in the amount of fifteen thousand dollars ($15,000) or more remitted to the department for the tax imposed under this article shall be remitted electronically as prescribed by the department. This section shall not apply to employer withholding payments under Part VII of this article and section 9 of the act of April 9, 1929 (P.L. 343, No. 176), known as "The Fiscal Code."

Even though the law was effective June 20, 2021, it appears that the Pennsylvania Department of Revenue (the DOR) will only begin enforcing the provision beginning January 1, 2022.  On December 30, 2021 and January 3, 2022, the DOR updated two questions and answers on the DOR customer support webpage that noted:

Payments made after December 31, 2021 for personal income tax payments equal to or greater than $15,000 must be made electronically.  Payments not made electronically will be subject to a penalty equaling 3 percent of the payment amount not to exceed $500.

DOR's Updated Questions:

The DOR directs taxpayers needing to make estimated tax payments electronically to its “myPath” website.  

Taxpayers have a couple of options available to them when paying electronically.  Payments can be made by debit or credit card (ACI Payments), or by ACH transfer.  There are fees associated with paying by credit/debit card, and credit limitations might make this option effectively unavailable for some taxpayers (depending upon individual facts and circumstances).  Paying by ACH transfer will require taxpayers to transfer funds directly from a savings or checking account.  

If you have questions concerning the above requirements, please reach out to your Schneider Downs tax advisor for additional guidance.  

 

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2022 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
Tax BY Kelly Capone
New Allegheny County Paid Sick Leave Requirements
Individual Tax Filing Season to Begin January 24
Applicant Promoting and Engaged in Providing Travel Tours Denied 501(c)(3) Status
Tax, Tax Policy BY Elizabeth Beck
New Beneficial Ownership Reporting Rules
Are you still waiting for your 2020 IRS refund? What you need to know…
New Pennsylvania Electronic Payment Requirements for Personal Tax Payments Greater than $15,000 Beginning January 1, 2022.
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×