Gov. Wolf Signs Bill to Align State Tax Deadline with May 17 Federal Deadline for Corporate Taxes, Other Provisions

Harrisburg, PA – Governor Tom Wolf today signed House Bill 766 into law, aligning the annual state corporate tax deadline with the federal tax deadline of May 17, 2021, and giving the Pennsylvania departments of Revenue and Community and Economic Development the ability to deal with state taxation while the COVID-19 disaster declaration is in effect. The state personal income tax deadline already automatically aligns the federal deadline of May 17.

“This bill helps Pennsylvania businesses organize and simplify filing their federal and state taxes and empowers the departments of Revenue and Community and Economic Development to eliminate fines and penalties that may have accrued between differing deadlines for filing federal and state taxes.”

Specifically, the bill amends the Tax Reform Code of 1971 by adding a new section entitled “COVID-19 Emergency Finance and Tax provision” that provides temporary authority to the departments of Revenue (DOR) and Community and Economic Development (DCED) to disregard the period after April 14, 2021 and before May 17, 2021 in the calculation of interest, penalties, or an addition to tax for failure to meet an extended filing deadline.

The bill also provides temporary authority to the DCED to deal with location taxation while the COVID-19 disaster declaration is in effect. This includes requiring DCED to coordinate with the governing bodies and local agencies of political subdivisions to extend filing and payment deadlines for local taxes so that local deadlines coincide with the filing deadline for a state tax return.

Under the bill, the corporate net income tax return filing deadline is changed from 30 days after the due date of the federal return to the 15th day of the month following the due date of the federal return for taxable years beginning after December 31, 2020.

The bill took effect immediately upon signing.