Businesses who have inventory or store property in Pennsylvania but are not registered to collect and submit Pennsylvania taxes can participate in a voluntary compliance program offered by the Pennsylvania Department of Revenue (DOR). The 90-day voluntary compliance program started on February 8, 2021, and will expire on February 8, 2022. Businesses that engage in the program can take advantage of a limited look-back time and penalty mitigation. Participants in the program will not be responsible for taxes payable before January 1, 2019. Participants in the program will also receive penalty relief for any past due tax returns that have not been submitted or taxes that have not been paid.
Taxpayers can complete the online Physical Presence Business Activity Questionnaire (BAQ) or print and complete a paper version of the BAQ and submit it through email to participate in the program or determine if they have nexus in Pennsylvania. Visit the Pennsylvania Department of Revenue’s website to get access to the BAQ. When the DOR receives the BAQ, they will analyze it and contact the company to discuss how to become compliant. All penalties for non-compliance will be waived once the business is registered, has filed any required tax returns, and has remitted payment of the taxes. The DOR emphasizes that this is contingent on the company continuing to comply with the DOR’s tax regulations.
