Tax & Accounting Blog

Pennsylvania Adding Use Tax Line to Income Tax Forms

Indirect Tax, ONESOURCE, Sales and Use Tax November 9, 2011

The Pennsylvania Department of Revenue is planning to include a line on its 2011 Pennsylvania income tax forms to allow resident on-line shoppers to voluntarily pay use taxes due from internet and other purchases where sales tax was not collected. Taxpayers will have the option of adding up their purchases and remitting tax based on that amount or of paying a flat percentage based on their annual income.  The plan is part of an effort to increase collection of sales and use taxes and is expected to bring in an additional $5 – $6 million.

Of course, entering “0” on the line is also an option but, be warned, doing so could raise eyebrows and red flags in an audit situation.