We previously reported that, as of June 1, 2011, businesses reporting sales tax of $25,000 or more in the third quarter of 2010 are required to remit tax on a semimonthly basis to the Pennsylvania Department of Revenue (“Department”) pursuant to the provisions of Act 48 of 2009. Therefore, on the 20th of each month, taxpayers will file both the current month’s tax prepayment and the previous month’s tax return and any tax payment due.
However, Act 26 of 2011 made some changes to the requirements.
The required filing frequency has been changed from semimonthly to monthly to be consistent with current filing requirements. Additionally, monthly prepayments must be at least 50% of the sales and use tax liability from the same month in the previous year.
If a taxpayer implemented changes for semimonthly filing or remitted prepayments based upon actual sales tax collected during the first 15 days of the month rather than 50% of the liability from the same month of the previous year, he/she must convert to 50% prepayments no later than January 1, 2012.
Taxpayers are still required to submit the prepayment separately from any payment accompanying a return filing. The Department is encouraging the utilization of e-TIDES for both filing of returns and all tax payments.
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This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.