Philadelphia Voluntary Disclosure Program

There is good news for those taxpayers with Philadelphia Tax Problems.  Currently, the City of Philadelphia maintains an option for tax debtors known as the Voluntary Disclosure Program.  Taxpayers with Philadelphia tax debt can apply for Voluntary Disclosure once they are ready to make full payment for the taxes owed. For businesses, a common example of tax owed is the Business Income and Receipts Tax previously known as the Business Privilege Tax. The Voluntary Disclosure Program includes businesses not registered with the City of Philadelphia for a business tax account or Commercial Activity License.

For individuals, some common examples of taxes owed are: Wage Tax, Earnings Tax, Net Profits Tax, School Income Tax, and Real Estate Taxes. In order to be accepted into the Department of Revenue Voluntary Disclosure Program the following requirements must be satisfied:

• The taxpayer cannot have been contacted by the City of Philadelphia Revenue or Law Departments, or any collection agency engaged by the City regarding the unpaid taxes.
• The taxpayer must make a full disclosure of all Philadelphia taxes owed for the past six years.
• Taxpayers that require an installment agreement to pay off their tax debt are not eligible for the Voluntary Disclosure Program.
• The taxpayer must pay one hundred percent of the tax and interest owed within 60 days of receiving billing from the Department of Revenue.

Taxpayers that are accepted into the Voluntary Disclosure Program and meet its terms will not be audited by City or assessed for taxes covered by the Disclosure Program for any period prior to the six-year disclosure period.  Additionally, the taxpayer will not be assessed for any penalties for the tax years within the disclosure period.

The Voluntary Disclosure Program is an excellent opportunity for significant tax savings.  Wise taxpayers will take advantage of the Disclosure Program while it remains available.