Licensee Tax Responsibility Program
By Direction of the Commonwealth of Pennsylvania’s Governor’s Office
Executive Order: 2011-06
Effective Date: September 15, 2011
What is the Licensee Tax Responsibility Program?
In 2011, by the direction of the Governor, the Secretary of the PA Department of Revenue was charged with the task of developing & administering an efficient & reliable program as a means of identifying the tax compliance status of applicants who are applying for a state license or renewal of a state issued license.
Why was the Tax Responsibility Program created?
The Licensee Tax Responsibility Program was created for the purposes of ensuring that licensees are compliant with state tax obligations, such as business registration, timely reporting and paying of all state taxes due & owing to the Commonwealth of PA.
This program assures the general public that license applicants and licensees are conducting business in a reputable manner, are in good tax standing within the Commonwealth, and are adhering to applicable laws and licensure requirements.
All agencies under the Governor’s jurisdiction are mandated to participate in the Program by:
- Providing the Department of Revenue with the necessary information for business licensees and applicants for business licenses including, but not limited to the applicant’s state personal income tax identification number, state sales tax number, state corporation tax number, state employer withholding tax number and unemployment compensation account number.
The Department of Revenue will issue a notice to the licensing agency indicating those licensees and applicants who have unresolved state tax obligations.
Why Am I Receiving a Letter?
In an effort to enhance voluntary compliance with tax laws, the PA Department of Revenue has entered into a data sharing partnering program with the IRS, known as the Governmental Liaison Data Exchange Program (GLDEP).
This program, authorized under IRC § 6103, facilitates the sharing of tax information with various other government agencies for tax administration & compliance purposes. This includes:
- Facilitating the exchange of taxpayer data;
- Leveraging resources;
- Providing assistance to taxpayers to improve compliance and communications; and
- Identifying and reporting information on emerging tax administration issues
If you received a letter related to a Personal Income Tax concern, the IRS provided data that would indicate you may have a PA State Tax filing obligation.
Your licensing agency has submitted you for tax compliance review per Executive Order 2011-06. If you are concerned about the status of your license, please contact the issuing agency.