Method of Filing; Pennsylvania Corporate Tax Report, RCT-101
[41 Pa.B. 4725]
[Saturday, August 27, 2011]
The Secretary of the Department of Revenue (Department) issues this notice under the provisions of section 10 of the Fiscal Code (72 P. S. § 10) (Act 2009-50). This notice is effective immediately and applies to reports filed for tax years beginning on or after January 1, 2011, during calendar years beginning on or after January 1, 2012.
Filing Mandate—Pennsylvania Corporate Tax Report, RCT-101
For all calendar years following a calendar year in which a third party preparer prepares 50 or more Pennsylvania Corporate Tax Reports, the third party preparer is required to electronically file (e-file) in the manner prescribed by Departmental instructions all such Pennsylvania Corporate Tax Reports. Once a third party preparer is subject to this filing mandate, the third party preparer shall continue to be subject to the mandate regardless of how many Pennsylvania Corporate Tax Reports he or she prepares during a calendar year.
A third party preparer who is subject to this filing mandate must have tax software that is compatible with Department e-filing requirements.
Rules Applicable to the Filing Mandate
(a) Third Party Preparer. For purposes of this notice, the phrase ''third party preparer'' means any natural person, fiduciary, corporation or other entity who or that prepares for remuneration, or who employs one or more persons to prepare for remuneration, any return for a tax administered by the Department or is assigned a Preparer Tax Identification Number (PTIN) by the Internal Revenue Service. None of the following, however, are considered third party preparers for remuneration: (1) Tax return preparers who voluntarily prepare the returns of others for no pecuniary benefit; (2) Persons who merely provide mechanical assistance such as typing; (3) Regular employees of an employer who prepare returns for other regular employees of the employer or the employer's officers and regular employees; or (4) Fiduciaries who prepare returns for the trusts or estates that they serve.
(b) 50 Report Threshold. A third party preparer must include all Pennsylvania Corporate Tax Reports that the third party preparer, or his or her members, or employees prepare and submit to the Department. This amount includes all original and amended, resident or non-resident, full-year or part-year reports to the extent that such report can be e-filed with the Department. If a third party preparer has multiple business locations, the combined total of all the reports for all locations are included.
A third party preparer who fails to file Pennsylvania Corporate Tax Reports by the method required under this notice shall be subject to a penalty of one percent of the tax due on the improperly filed report up to a maximum of five hundred dollars ($500), but not less than ten dollars ($10).
(a) The Department will waive the penalty applicable to a report that is not filed pursuant to this filing mandate in the following situations:
(1) The taxpayer has specifically directed the third party preparer to file the report pursuant to a different filing method than mandated in this notice. This directive must be in a written form, signed by an officer of the corporation, and provided to the Department upon request.
(2) The preparer's tax software does not support e-filing of a required attachment to the report.
(b) The Department, at its discretion, may waive the penalties applicable to reports that are not filed as prescribed in this notice if the Department determines the filing mandate of this notice constitutes undue hardship on the third party preparer. The third party preparer must submit a written request for the waiver for every calendar year. The request must clearly explain why the filing method causes an undue hardship. A request for a waiver shall be mailed to the Department of Revenue, Bureau of Corporation Taxes Director's Office, P. O. Box 280700, Harrisburg, PA 17128-0700 by November 1, 2011.
[Pa.B. Doc. No. 11-1476. Filed for public inspection August 26, 2011, 9:00 a.m.]
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