Pennsylvania Department of Revenue Sales Tax Reminders for Business Owners

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The Pennsylvania Department of Revenue recently announced that it is increasing its scrutiny of sales and use taxes, which could affect a variety of businesses across the Commonwealth.

Darren Finn, principal

Darren Finn, principal

What does this mean for your business?

The Department recently created a new sales and use tax unit aimed at performing remote examinations of businesses that might have issues in this area. Operating out of Harrisburg, this new team of examiners is expected to focus on business owners who have not filed, not registered, or may have underreported their sales and use tax payments to the Commonwealth. The examinations include cross referencing information gathered by the IRS, state agencies, and third parties in order to identify any inconsistencies or other circumstances that may indicate illegal activity.

If an examination detects any variance, the Department will notify the business in writing, requiring the business to provide an explanation for the discrepancy.

If your business does not possess a sales tax license, you may receive notification. The Department will be mailing questionnaires to business owners who have not registered for a sales tax license in order to determine if those owners need to register their businesses and collect and remit sales and use taxes.

Michael A. Stoltzfus, Tax Manager

Michael A. Stoltzfus, Tax Manager

What steps should you take now?

As a business owner, it is crucial that you accurately file your sales and use tax returns in a timely manner to ensure that any balances due are remitted as required. To verify the accuracy of your returns, take some time to review your business purchase invoices and confirm you have been properly charging sales tax for applicable transactions. If no sales taxes were paid, check to be sure you are remitting use tax as appropriate.

Making sure your numbers add up can be time consuming and nerve-wracking, especially when dealing with taxes. If you have any questions or concerns about how your business is handling Pennsylvania sales and use taxes, contact us today to get the conversation started.

Darren Finn and Mike Stoltzfus of Simon Lever look forward to helping you put your sales and use tax concerns to rest. Let’s start a conversation.

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