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The City of Philadelphia has passed an ordinance authorizing a tax amnesty program which will occur over a 45 day period ending in June 2010, and overlap with the state amnesty program. During this period, delinquent taxpayers will be allowed to pay taxes owed with a full waiver of penalties and 50% of accrued interest. The program applies to 17 city taxes originally due on or after February 1, 1986 and on or before June 30, 2009. Taxpayers that are under any criminal investigation related to delinquency or who have participated in any prior tax amnesty program are ineligible to participate (Bill No. 090686, City of Philadelphia, signed by Mayor Nutter on January 27, 2010).

(02/19/2010)

A Professional Employer Organization’s (PEO) charges for providing certain human resources-related services (PEO Services) to clients through the placement the clients' employees on the payroll of the PEO were found not subject to Pennsylvania sales and use tax. Pennsylvania imposes sales tax on “help supply services,” which are defined as supplying temporary help on the payroll of the supplying entity that is under the supervision of the business to which help is furnished. However, the PEO’s services are performed solely by PEO's own employees, and the PEO, not the clients, supervise the employees providing the PEO Services. In addition, the PEO does not provide help, i.e., personnel, to any of its clients nor does it have a supply of potential employees to recommend to a client. (All Staffing, Inc. v. Pennsylvania, Pennsylvania Commonwealth Court, No. 325 F.R. 2006, January 5, 2010)

(01/14/2010)

Pennsylvania has issued rules and guidelines for its upcoming tax amnesty program. The 2010 Tax Amnesty will apply to any taxes administered by the Department of Revenue and will run from April 26, 2010 to June 18, 2010. To participate, taxpayers will need to file an online Amnesty return, file all delinquent tax returns and make the required payment within the Amnesty Period. All penalties and one-half of the interest due will be waived. The periods eligible are those where a known or unknown delinquency exists as of June 30, 2009. At the conclusion of the Amnesty Period, a 5% non-participation penalty will be imposed on all un-paid tax, penalty and interest not paid in full during the Amnesty Period. (2010 Tax Amnesty Program Guidelines, Pennsylvania Department of Revenue, December 5, 2009)

(12/08/2009)

The Pennsylvania Department of Revenue has announced dates for its 2010 tax amnesty program. The tax amnesty period from will run from April 26 to June 18, 2010. During this time, the Pennsylvania Department of Revenue will waive all penalties and one-half of the interest for anyone who pays their delinquent state taxes. The amnesty will be applicable to any taxes administered by the Department that are delinquent as of June 30, 2009. (Pennsylvania Department of Revenue website)

(11/10/2009)

A transfer of delivery trucks at the time of a merger was nor subject to Pennsylvania sales and use tax. The transfer did not involve any consideration, which is a requirement in the definition of a sale at retail. Therefore, the Court ruled that the trucks were transferred by operation of law, as defined in the law governing corporate mergers, and not a transaction where a consideration was agreed upon. (Legal Letter Ruling No. SUT-04-017, Pennsylvania Department of Revenue, may 17, 2004 (reissued May 18, 2009)

(06/10/2009)

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