Philadelphia taxpayers with unmet filing or payment obligations can use our Voluntary Disclosure program to attain compliance with the City’s tax rules. Whether you are a new business owner or an individual taxpayer, this program offers opportunities for you to maintain good tax standing. Keep reading to discover how voluntary disclosure of your unfiled or unpaid taxes can help you get back on track and protect you from future enforcement!
We’re here to help
In Philadelphia, all residents and businesses are subject to property and business taxes, which contribute to the City’s essential public services, including its school district. Paying your taxes on time and in full is important because unmet tax obligations can result in the loss of your property or business license.
Nonetheless, we understand some taxpayers may be unsure of their tax responsibilities, while some new businesses may be operating in Philadelphia without a City tax account. Missed tax payments or unfiled returns could be caused by any of these factors. We created the Voluntary Disclosure program to help such taxpayers attain compliance.
How does it work?
This program allows individuals and businesses to declare their missed tax liabilities. Once you become aware of your unmet obligations, you can come in willingly and report them to the Department of Revenue. You will be accepted if you:
- Voluntarily or self-report your unfulfilled tax obligations—don’t wait for the Department of Revenue to contact you before acting on it,
- Are open about what you owe for up to six years, and
- Pay the full amount of the tax you owe and interest within 60 days of the bill date.
Several Philadelphia taxes can be disclosed voluntarily, such as Business Income & Receipts Tax, Net Profits Tax, School Income Tax, Wage Tax, Earnings Tax, and Use and Occupancy Tax. Be aware that you do not qualify for the Voluntary Disclosure program if you need a payment plan to clear your debts.
What are the benefits?
In exchange for your honesty, the Department will not audit or bill you for taxes disclosed for any years before the six-year disclosure period. We will also waive any penalties accrued within the disclosure period.
Nevertheless, if you continue to ignore the situation until it is discovered through the Department’s own efforts, you will be responsible for all tax, interest, and penalties. You may also be audited for any prior years. The longer you wait, the higher your charges will be.
How to get started with your application?
When you are ready to come forward, please email VoluntaryDisclosure@phila.gov to request to join the program. Make sure your letter contains a brief description of your business activity in Philly and the taxes involved. Also, indicate that you are self-reporting your liabilities or unfulfilled tax obligations. If you would rather send a letter in the mail, send it to:
Tax Discovery Unit
1401 John F. Kennedy Blvd, Room 440
Philadelphia, PA 19102
For questions or additional information, please email VoluntaryDisclosure@phila.gov or call (215) 686-6614
