The Pennsylvania Department of Revenue is establishing a new unit in Harrisburg to conduct remote examinations of sales and use tax returns. The pilot program will focus on non-filers, unregistered taxpayers and under reporters for sales tax and underreporting or nonpayment of use tax on purchases where sales tax was not charged.
The department will compare a business’s reported activity with information from various sources, including the Internal Revenue Service, other Pennsylvania state agencies and third-parties. If a difference is identified, the department will send a letter to the business asking for an explanation.
Further, businesses that have not registered for a sales tax license may receive a “Notice of Non-Registrant” from the department asking them to complete a questionnaire. This information will help determine whether the business must collect and remit sales tax and/or other taxes.
If a business did not file a sales tax return or filed without making the necessary payment, they may receive a “Delinquent Tax Return” notice from the department.
Information about sales and use tax and how to register to collect and remit the tax is available at www.revenue.pa.gov.