Snyder: Grace period would help residents pay state taxes overdue from error

HARRISBURG, Feb. 25 – Pennsylvanians who discover that they – or their tax preparer – made an inadvertent error in their state personal income tax return would get two months to rectify the problem under a measure introduced by state Rep. Pam Snyder, D-Greene/Fayette/Washington.

“Imagine if – years after the fact – you discovered an honest error was made in filing your state tax return, and you’re now on the hook for thousands of dollars,” Snyder said. “My bill would allow taxpayers adequate time to pay those overdue taxes to the commonwealth. While taxpayers are ultimately responsible for ensuring their returns are filed accurately, they deserve the opportunity to make it right without being excessively penalized.”

Snyder said the state Department of Revenue can review a taxpayer’s return for up to three years after its filing. If an error is discovered, the taxpayer is liable to make up that amount plus penalties, which could be significant in cases where the error is years old.

House Bill 25 would provide affected taxpayers with a 60-day grace period following notification by the state Department of Revenue. They could pay any overdue state taxes without being charged penalties or interest on amounts owed.

The bill is before the House Finance Committee for consideration.