The Department of Revenue is reminding taxpayers and tax professionals of the requirements in the law that mandate payments above a certain threshold be made electronically.
A commonwealth law (Act 25 of 2021) that was recently passed requires that personal income tax (PIT) payments equal to, or greater than, $15,000 be made electronically. This requirement applies to PIT payments made after Dec. 31, 2021. Payments not made electronically will be subject to a penalty equaling 3 percent of the payment amount (not to exceed $500). Meanwhile, all other taxes must be paid electronically if the tax due is $1,000 or more.
Taxpayers are advised that the fastest and easiest way to submit an electronic payment is by visiting
mypath.pa.gov. myPATH is the Department of Revenue's online portal where customers can make payments and access other customer service options.
The Department of Revenue is also informing the public that it has begun automatically granting relief for first-time recipients of a penalty for one of the following three reasons:
- Bad Payment Fee
- Electronic Funds Transfer (EFT) Penalty
- Late Filing Penalty
To qualify, taxpayers must not have received a bad payment fee, EFT penalty, late filing penalty, underpayment penalty or estimated underpayment penalty in the past. This new process generates a Notice of Penalty Adjustment and eliminates the need for customers to file a petition with the Board of Appeals. This relief process was implemented to help taxpayers following the electronic filing requirements for PIT that were mandated by Act 25 of 2021.
Taxpayers are also reminded that any individual who expects to receive more than $8,000 of Pennsylvania-taxable income not subject to withholding by a PA employer must estimate and pay personal income tax quarterly. Tax due dates for individuals are April 15, June 15, Sept. 15 and Jan. 15, or the first following business day if any deadline falls on a weekend or holiday. You can watch a short video to learn how to make estimated payments through myPATH:
Making Estimated Payments.