Do I Owe a Penalty if I Don't File a Pennsylvania Corporation Tax Return?

by Tom Streissguth

Pennsylvania levies a corporate income tax on certain firms doing business in the state. At the time of publication, the state’s corporate tax rate is 9.99 percent of federal taxable income; non-profits, membership associations, business trusts and homeowners’ associations are exempt. By Pennsylvania law, any entity classified by the IRS as a corporation is subject to state income taxes.

Tax Report

Pennsylvania corporations file the six-page Form RCT-101, Corporate Tax Report, to declare taxable income to the Pennsylvania Department of Revenue. This form can be filed as hardcopy or e-filed by filling in the information online and then uploading the form to the Pennsylvania Department of Revenue website. The report is due annually on April 15, the same due date for filing of federal income tax returns.

Penalty for Late Filing

If you do not file the tax report on time, the state levies a penalty. The penalty amount depends on the tax liability: 10 percent of the first $1,000 of taxes due, 5 percent of the next $4,000 of taxes due, and 1 percent of all taxes of more than $5,000. There is no interest charged on this amount. There is no penalty levied on late payment of taxes, for which the state only charges interest. If the report is filed late and the taxes are paid on time, the penalty still applies.

Extensions

You may request an extension of time to file the tax report, but must submit that request before the report is due. The state allows you to submit an extension request online on the Pennsylvania Department of Revenue website. You use Form REV-853 to request an extension of time to file. If you do not request the extension on time, the tax report is considered delinquent by the state, and the statutory penalty is applied.

Amended Reports

You may file an amended tax report within three years of filing the original report. The state may levy assessments and penalties on late payments over a period of three years from the original report's filing, or one year from the date you file the amended report.