PA Tax Amnesty Program
The State of Pennsylvania recently began its Tax Amnesty Program for 2017. Although the PA Tax Amnesty program is a good idea, the State has already made it clear that they really don’t understand their own tax laws. This new program is for the most part driven by a collection agency of sorts. The collection agency, Pioneer Services, is simply sending out computer generated letters to almost everyone in the state, which in turn is generating mountains of paperwork that will result in minimal taxes collected. It is very much like a giant phishing program, with the hopes of hauling in a few big fish, in an otherwise empty net. Why is all of this a waste of time? Well it’s because PA likes to waste taxpayer time and money by requiring businesses to file tax forms, for taxes which they are not subject to. There are many entities and individuals who have not filed certain forms, because they were exempt from filing in the first place. Makes sense? Nope, but what did you expect from your elected officials? Williams & Associates is a CPA firm located on the Main Line, in Ardmore, PA. We help our clients to resolve issues that have arisen from the PA Tax Amnesty Program.
Are you a Hotel?
As part of governor wolf’s Go-Time initiative to reduce costs and improve efficiency in government, the department of revenue has collected an additional $1.5 million in hotel occupancy tax through an innovative outreach and education program. Pennsylvania is an incredibly popular destination for tourists and business, and travelers are increasingly going online to book a room, apartment, or house for lodging. Those short-term stays are subject to the state’s hotel occupancy tax, the same as using a hotel or bed and breakfast. Under Pennsylvania law, anyone who rents out lodging to the same person for less than 30 consecutive days must collect and remit the state’s 6 percent hotel occupancy tax. The department collects an additional 1 percent tax in Allegheny and Philadelphia counties. both counties, and many other local governments, impose and collect a separate hotel tax. To make hosts aware of their tax responsibility to collect and remit the state tax, the department launched a one-of-a-kind initiative to share information and help them comply with the law. home-sharing websites and other intermediaries or brokers are not required to collect the hotel occupancy tax; however the home-sharing company Airbnb began collecting the tax last year as part of a separate initiative, which is not included in the $1.5 million total. If the hotel occupancy tax is not collected by the intermediary or broker, the tax should be reported to the department on a sales tax return. in either case, income from home sharing should be reported on the taxpayer’s Pennsylvania personal income tax return. At Williams & Associates CPA, we look under every stone to make sure our clients are aware of the many ways the State of Pennsylvania can impose taxes. Williams & Associates is a CPA firm located on the Main line, in Ardmore, PA.