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Pennsylvania tax reform code changes

On June 30, 2021, Governor Wolf signed Act No. 25. The budget included several Pennsylvania tax reform code changes. Three of the changes to be noted:
 
  • Applicable to payments made after December 31, 2021, 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% of the payment amount not to exceed $500.  
    • It is important to note that if you do not already have a myPATH account set up with the PA Department of Revenue to make payments, you will need to register for an account at https://mypath.pa.gov. You will need receive a myPATH Access Letter 5-10 days after registering for your account. The myPATH Access Letter will have a Letter ID needed to verify your account.  
    • If you would like to make electronic payments or believe you may be subject to the new electronic payment requirement, Sisterson advises setting up your myPATH account well in advance of the payment due date to allow time for the Access Letter to arrive.
 
  • Deadlines for the Research and Development Tax Credit Program change as follows:
    • Application Deadline: From September 15 to December 1
    • Department Approval: From December 15 of the calendar year to May 1 of the second calendar year following the close of the taxable year during which the expense was incurred
      • This may mean that a tax return with a calendar year end would need to be extended while waiting on department approval
 
  • Deadlines for the Keystone Innovation Zone Program change as follows:
    • Application Deadline: From September 15 of each year for prior taxable year to December 1 for prior tax year
    • Certificate Award Deadline: From December 15 of each year to May 1 of each year following calendar year of application
      • This may mean that a tax return with a calendar year end would need to be extended while waiting on the Certificate Award
 
For questions or further clarification, please consult your tax advisor or info@sisterson.com.
 
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Tax