Article III Earned Income Tax

For 1967. Every taxpayer making net profits shall, on or before June 15, 1967, make and file with the Income Tax Officer on a form prescribed by the Income Tax Officer, a declaration of his estimated net profits during the period beginning April 1, 1967 and ending December 31, 1967, and pay to the Income Tax Officer in three equal installments the tax due thereon as follows: the first installment at the time of filing the declaration, the second installment on or before September 15, 1967 and the third installment on or before January 15, 1968. And on or before April 15, 1968, the taxpayer shall file a final return showing the amount of net profits earned during the period April 1, 1967 and ending December 31, 1967, the total amount of tax due thereon and the amount of tax paid thereon. At the time of filing the final return, the taxpayer shall pay to the Income Tax Officer the balance of tax due or shall make demand for refund or credit in the case of overpayment.

After 1967.

(a)

Every taxpayer making net profits shall, on or before April 15 of the current year, make and file with the Income Tax Officer on a form prescribed by the Income Tax Officer, a declaration of his estimated net profits during the period beginning January 1 and ending December 31 of the current year, and pay to the Officer in four equal quarterly installments the tax due thereon as follows: the first installment on or before April 15 of the current year, the second installment on or before June 15 of the current year, the third installment on or before September 15 of the current year and the fourth installment on or before January 15 of the succeeding year.

(b)

Any taxpayer who first anticipates any net profits after April 15 of the current year shall make and file the declaration hereinabove required on or before June 15 of the current year, September 15 of the current year or December 15 of the current year, whichever of these dates next follows the date on which the taxpayer first anticipates such net profit, and pay to the Income Tax Officer in equal installments the tax due thereon on or before the quarterly payment dates which remain after the filing of the declaration.

(c)

Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the Income Tax Officer on a form prescribed by the Income Tax Officer, a final return showing the amount of net profits earned during the period beginning January 1 of the current year and ending December 31 of the current year, the total amount of tax due thereon and the total amount of tax paid thereon. At the time of filing the final return, the taxpayer shall pay to the Income Tax Officer the balance of tax due or shall make demand for refund or credit in the case of overpayment.

(d)

Any taxpayer may, in lieu of paying the last quarterly installment of his estimated tax, elect to make and file with the Officer on or before January 31 of the succeeding year, the final return as hereinabove required.

(e)

Every taxpayer who discontinues business prior to December 31 of the current year shall, within 30 days after the discontinuance of business, file his final return as hereinabove required and pay the tax due.

Earned income.

For 1967. Every taxpayer shall, on or before April 15, 1968, make and file with the Income Tax Officer a final return showing the amount of earned income (other than net profit) received during the period beginning April 1, 1967 and ending December 31, 1967, the total tax due thereon, the amount of the tax paid thereon, the amount of tax paid thereon that has been withheld pursuant to the provisions relating to collection at source and the balance of the tax due. At the time of filing said final return, the taxpayer shall pay the balance of the tax due or shall make demand for refund or credit in the case of overpayment.

After 1967. Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the Income Tax Officer on a form prescribed by the Income Tax Officer, a final return showing the amount of earned income received during the period beginning January 1 of the current year and ending December 31 of the current year, the total amount of tax due thereon, the amount of tax paid thereon, the amount of tax thereon that has been withheld pursuant to the provisions relating to collection at source and the balance of tax due. At the time of filing the final return, the taxpayer shall pay the balance of the tax due or shall make demand for refund or credit in the case of overpayment.

(3)

Quarterly return. Every taxpayer who is employed for a salary, wage, commission or other compensation and who receives any earned income not subject to the provisions relating to collection at source shall make and file with the Income Tax Officer on a form prescribed by the Income Tax Officer, a quarterly return on or before April 30 of the current year, July 31 of the current year, October 31 of the current year and January 31 of the succeeding year, setting forth the aggregate amount of earned income not subject to withholding and earned by him during the three month period ending March 31 of the current year, June 30 of the current year, September 30 of the current year and December 31 of the current year; respectively, and subject to the tax, together with such other information as the Officer may require. Every taxpayer making such return shall, at the time of filing thereof, pay to the Officer the amount of tax shown as due thereon.

(4)

Where the taxpayer has filed a declaration required hereinabove and shall thereafter reasonably expect to earn during the taxable period additional earnings not subject to collection at source, or finds that he has overestimated his earnings, he may file an amended declaration with the Income Tax Officer, setting forth such relevant information as the Income Tax Officer may require.

Fiscal year.

Where the taxpayer is on a fiscal year basis different from the taxable period, he may file a declaration on a fiscal year basis, setting forth his estimated net profits or earnings for a period included in the taxable period; then, in lieu of filing his declaration and making payments thereon at the times set forth in Subsections A and B, he may pay the quarterly installments of the estimated tax according to the declaration filed for the portion of the taxable period included in said fiscal year, and on or before the 105th day after the close of the fiscal year, file a declaration of the estimated tax for the portion of the taxable period included in said succeeding fiscal year and pay said tax in equal quarterly installments, beginning with the due date of the filing and ending with the first quarterly installment due after the close of the taxable period.

The taxpayer shall file a final return on or before the 105th day after the close of the fiscal year.

§ 88-24 Collection at source.

Registration by employers. Every employer having an office, factory, workshop, branch, warehouse or other place of business within the political subdivision who, on April 1, 1967, employs one or more persons, other than domestic servants, for a salary, wage, commission or other compensation, shall, on or before April 1, 1967, register with the Income Tax Officer his name and address and such other information as the Officer may require. Every employer having an office, factory, workshop, branch, warehouse or other place of business within the political subdivision who, after April 1, 1967, employs for the first time after that date one or more persons, other than domestic servants, for a salary, wage, commission or other compensation, shall, within 15 days after becoming an employer, register with the Officer his name and address and such other information as the Officer may require.

Duty to withhold. Every employer having an office, factory, workshop, branch, warehouse or other place of business within the political subdivision who employs one or more persons, other than domestic servants, for a salary, wage, commission or other compensation, shall deduct at the time of payment thereof the tax imposed by this article on the earned income due to his employee or employees.

Withholding procedure.

For 1967.

(a)

For the period from April 1, 1967, to December 31, 1967, every employer shall, on or before July 31, 1967, and on or before July 31, 1967, and on or before October 31, 1967, and on or before January 31, 1968, file a return and pay to the Income Tax Officer the taxes deducted during the preceding three-month periods ending June 30, 1967, September 30, 1967, and December 31, 1967, respectively.

(b)

On or before February 28, 1968, every employer shall file with the Income Tax Officer:

An annual return showing the total amount of earned income paid, the total amount of tax deducted and the total amount of tax paid to the Income Tax Officer for the period beginning April 1, 1967, and ending December 31, 1967.

[2]

A return withholding statement for each employee employed during all or any part of the period beginning April 1, 1967, and ending December 31, 1967, setting forth the employee's name, address and social security number, the amount of earned income paid to the employee during said period, the amount of tax deducted, the political subdivisions imposing the tax upon such employee and the amount of tax paid to the Income Tax Officer. Every employer shall furnish two copies of the individual return to the employee for whom it is filed.

After 1967.

(a)

Every employer shall, on or before April 30 of the current year, July 31 of the current year, October 31 of the current year and January 31 of the succeeding year, file a return and pay to the Income Tax Officer the amount of taxes deducted during the preceding three-month periods ending March 31 of the current year, June 30 of the current year, September 30 of the current year and December 31 of the current year, respectively. Such return shall show the name and social security number of each such employee, the earned income of such employee during such preceding three-month period, the tax deducted therefrom, the political subdivisions imposing the tax upon such employee, the total earned income of all such employees during such preceding three-month period and the total tax deducted therefrom and paid with the return.

(b)

On or before February 28 of the succeeding year, every employer shall file with the Income Tax Officer:

§ 88-25 Income Tax Officer: powers and duties; confidential information.

An annual return showing the total amount of earned income paid, the total amount of tax deducted and the total amount of tax paid to the Income Tax Officer for the period beginning January 1 of the current year and ending December 31 of the current year.

[2]

A return withholding statement for each employee employed during all or any part of the period beginning January 1 of the current year and ending December 31 of the current year, setting forth the employee's name, address and social security number, the amount of earned income paid to the employee during said period, the amount of tax deducted, the political subdivisions imposing the tax upon such employee and the amount of tax paid to the Income Tax Officer. Every employer shall furnish two copies of the individual return to the employee for whom it is filed.

Every employer who discontinues business prior to December 31 of the current year shall, within 30 days after discontinuance of business, file the returns and withholding statements hereinabove required and pay the tax due.

Every employer who willfully or negligently fails or omits to make the deductions required by this section shall be liable for payment of the taxes which he was required to withhold to the extent that such taxes have not been recovered from the employee.

The failure or omission of any employer to make the deductions required by this section shall not relieve any employee from the payment of the tax or from complying with the requirements of this article with respect to making returns and payment thereof.

Any employer who for two of the preceding four quarterly periods has failed to deduct the proper tax or any part thereof or has failed to pay over the proper amount of tax to the Income Tax Officer may be required by such Officer to file his return and pay the tax monthly. In such cases, payments of tax shall be made to the Officer on or before the last day of the month succeeding the month for which the tax was withheld.

No employer shall be required to register, deduct taxes, file returns or pay taxes in the cases of domestic servants.

The office of Income Tax Officer is hereby created and the person designated as such by the political subdivision shall administer the provisions of this article. Such person shall be bonded as the political subdivision may determine at all times for all money coming into his hands under this article, and the cost of such bond shall be paid as determined by the political subdivision.

The Income Tax Officer shall collect and receive the taxes, fines and penalties imposed by this article, shall furnish a receipt for payment when requested to do so by a taxpayer and shall keep a record showing the amount received by him from each taxpayer under this article, together with the date of the receipt of such payment.

The Income Tax Officer is hereby empowered to prescribe, adopt, promulgate and enforce rules and regulations relating to any matter pertaining to the administration and enforcement of this article, including provisions for the reexamination and correction of declarations and returns and of payments alleged or found to be incorrect or as to which an overpayment is claimed or found to have occurred, and to make refunds in cases of overpayment for any period of time not to exceed six years subsequent to the date of payment of the sum involved, and to prescribe forms necessary for the administration of this article. No rule or regulation of any kind shall be enforceable unless it has been approved by resolution of the political subdivision. A copy of such rules and regulations currently in force shall be available for public inspection.

The Income Tax Officer or any other person so designated by him is hereby authorized to examine the books, papers and records of any employer or of any taxpayer or of any person whom the Officer reasonably believes to be an employer or taxpayer, in order to verify the accuracy of any declaration or return, or if no declaration or return was filed, to ascertain the tax due. Every employer and every taxpayer and every person whom the Officer reasonably believes to be an employer or taxpayer is hereby directed and required to give to the Officer or to any agent designated by him the means, facilities and opportunity for such examination and investigations as are hereby authorized.

The Income Tax Officer is authorized to establish different filing, reporting and payment dates for taxpayers whose fiscal years do not coincide with the calendar year.

The Income Tax Officer is authorized to examine any person under oath concerning any income which was or should have been returned for taxation and shall have the power to compel the attendance of persons whom he deems necessary to examine as witnesses and to compel the production of books, records and papers relating to any account being examined.

The Income Tax Officer shall have the power to reexamine returns and correct erroneous returns, and on petition and proof by the taxpayer, to make refunds and authorize the refunding of taxes erroneously or improperly collected from or paid by the taxpayer.

Any information gained by the Income Tax Officer or any other official or agent of this political subdivision as a result of any return, investigation, hearing or examination required or authorized by this article shall become confidential, except for official purposes or except in accordance with proper judicial order or as otherwise provided by law. Any disclosure of any such information contrary to the provisions of this section shall constitute a violation of this article.

§ 88-26 Interest and penalty on unpaid taxes; collection.

All taxes imposed under this article remaining unpaid after they become due shall bear interest, in addition to the amount of unpaid tax, at the rate of 6% per annum, and the person against whom such tax is imposed shall pay a penalty of 1/2 of 1% of the amount of the unpaid tax for each month or fraction of a month during which the tax remains unpaid.

All taxes imposed by this article, together with all penalties, interest and costs, shall be collectible by the Income Tax Officer as taxes are by law recoverable under the appropriate provisions, not inconsistent with this article, of The Local Tax Enabling Act of 1965, approved December 31, 1965, P.L. 1257,[1] provided that the amount of any tax imposed by this article shall be assessed within three years after the return was filed or within three years after the tax became due, whichever is later, and no proceeding in court without assessment for the collection of such tax shall be commenced after the expiration of such period, except as follows:

In the case of a false or fraudulent return with the intent to evade tax, the tax may be assessed or a proceeding in court for collection may be commenced without assessment at any time.

In the case of a willful attempt to defeat or evade tax, the tax may be assessed or a proceeding in court for collection may be commenced without assessment at any time.

(3)

In the case of failure to file a return, the tax may be assessed or a proceeding in court for collection may be commenced without assessment at any time.

(4)

In the case where a taxpayer omits from his earned income an amount which is in excess of 25% of the amount stated in the return, the tax may be assessed or a proceeding in court may be commenced without assessment at any time within six years after the return was filed or within six years after the tax became due, whichever is later.

Editor's Note: See 53 P.S. § 6901 et seq.

§ 88-27 Violations and penalties.

Any person who fails, neglects or refuses to make any declaration or return required by this article; any employer who fails, neglects or refuses to register or to pay the tax deducted from his employees, or fails, neglects or refuses to deduct or withhold the tax from his employees; any person who refuses to permit the Income Tax Officer or any agent designated by him to examine his books, records and papers; and any person who knowingly makes any incomplete, false or fraudulent return or attempts to do anything whatsoever to avoid the full disclosure of the amount of his net profits or earned income in order to avoid the payment of the whole or any part of the tax imposed by this article, shall, upon conviction thereof before any District Justice, be sentenced to pay a fine of not more than $500 for each offense and costs, and in default of payment of said fine and costs, to imprisonment for a period not exceeding 30 days.

Any person who, except as permitted by the provisions of § 88-25H of this article, divulges any information which is confidential under the provisions of this article, shall, upon conviction thereof before any District Justice, be sentenced to pay a fine of not less than $50 nor more than $500 for each offense, together with costs, and in default of payment of such fine and costs, shall be imprisoned for a period not exceeding 30 days.

The penalties imposed under this section shall be in addition to any other penalty imposed by any other section of this article or of The Local Tax Enabling Act of 1965, P.L. 1257.[1]