Pennsylvania offers disclosure program for tax-delinquent carriers

HARRISBURG, Pa. (Oct. 23, 2002) — The Pennsylvania Dept. of Revenue said it will waive penalties for trucking companies that come forward to settle their state tax debts.

The voluntary disclosure program is unique because it applies to companies that already have been contacted by state tax enforcement authorities.

The deadline to apply for the program is Jan. 1, 2003.

Since the mid-1990s, Pennsylvania has stepped up enforcement for payment of such taxes as the Capital Stock/Franchise Tax, Corporate Net Income Tax, and Gross Receipts Tax, which was rescinded in 1999.

“Typically, once a case gets to the enforcement stage, there is no voluntary disclosure, limited look-back, or penalty relief. This is a way for companies to pay back taxes and any interest, but no penalties, even if enforcement action has been initiated,” said Alicia Fetrow, liaison officer with the Pennsylvania Dept. of Revenue’s voluntary disclosure office.

She said the state will notify 700 to 800 carriers of outstanding tax debts in the coming year.

The exemption from penalties is a partial victory for the Canadian Trucking Alliance and the Ontario Trucking Association, which lobbied to have the taxes removed completely.

“There was never a question of whether the taxes could be repealed,” said David Bradley, chief executive of the CTA and president of the OTA. “The issue was whether we could work with Pennsylvania to reduce the impact on Canadian carriers.”

“We’d like to have killed the taxes, or to have gotten partial refunds for those carriers that went ahead an paid already, but that was not in the cards,” he added.

For information about the program, Fetrow said carriers should send a contact name, address, and phone number, along with a request for information about voluntary disclosure for trucking companies, in an e-mail to afetrow@state.pa.us, or contact the Voluntary Disclosure Program, Pennsylvania Dept. of Revenue, Dept. 281100, Harrisburg, PA 17128-1100; 717/787-9832.