1219 Method of filing annual notice for the tax year beginning on or after January 1, 2010

DEPARTMENT
OF REVENUE

Method of Filing Annual Notice for the Tax Year Beginning on or After January 1, 2010

[40 Pa.B. 3745]
[Saturday, July 3, 2010]

 Under the provisions of section 10 of the Fiscal Code (72 P. S. § 10) (Act 2009-50), the Secretary of the Department of Revenue (Department) announces that, effective January 1, 2011, for the tax year beginning on or after January 1, 2010, except as provided in this notice, any PA-40 (2010) Pennsylvania Personal Income Tax Return prepared by a third party preparer who submitted at least 50 PA-40 (2009) Pennsylvania Personal Income Tax returns required to be filed in the 2010 calendar year or amended PA-40 Pennsylvania Personal Income Tax returns filed in the 2010 calendar year for any taxable year beginning before January 1, 2010, or both, shall be filed using the electronic method (e-file) in the manner prescribed by Departmental instructions.

 For purposes of this notice, the phrase ''third party preparer'' means any natural person, fiduciary, corporation or other entity who or that prepares for remuneration, or who employs one or more persons to prepare for remuneration, any return for a tax administered by the Department or is assigned a Preparer Tax Identification Number (PTIN) by the Internal Revenue Service. None of the following, however, are considered third party preparers for remuneration: (1) Tax return preparers who voluntarily prepare the returns of others for no pecuniary benefit; (2) Persons who merely provide mechanical assistance such as typing; (3) Regular employees of an employer who prepare returns for other regular employees of the employer or the employer's officers and regular employees; or (4) Fiduciaries who prepare returns for the trusts or estates that they serve.

 To determine if an entity meets the 50 return threshold, include all of the returns prepared by all of the members or employees of the entity. If it has multiple locations, use the combined total for all locations. Nonresident and part-year PA-40 returns are also included in determining whether a preparer meets threshold requirements. A PA-41 Fiduciary Income Tax Return, PA-40NRC Nonresident Consolidated Income Tax Return, PA-40 KOZ Pennsylvania Income Tax Keystone Opportunity Zones Return or fiscal year return is not counted.

 A third party preparer is not required to e-file a return:

 (1) Upon which the taxpayer has specifically directed the preparer to use the paper forms prescribed by the Department.

 (2) If the preparer's tax software does not support e-filing of a required attachment to the return.

 (3) That may not be e-filed under Chapter 4, ''Filing An Electronic Return,'' of PA-1345 Handbook For Electronic Filers of Pennsylvania Individual Income Tax Returns for Tax Year 2009.

 If the tax software of a preparer who is required to e-file under this notice cannot support the e-filing of PA-40 returns in conformity with Chapter 4, ''Filing An Electronic Return,'' of PA-1345 Handbook For Electronic Filers of Pennsylvania Individual Income Tax Returns for Tax Year 2009, tax software that does so support the e-filing of PA-40 returns must be acquired. In accordance with 72 P. S. § 10(c), however, the Department may waive the method of filing prescribed under this notice if the Department determines the provisions of this notice constitute undue hardship on the preparer. The preparer must request a waiver in writing that clearly states why the filing method causes an undue hardship. Requests for waivers shall be mailed to the Department of Revenue, Bureau of Individual Taxes, P. O. Box 280507, Harrisburg, PA 17128 by November 30, 2010. If the Department grants the waiver, the preparer may file a signed, paper Pennsylvania Personal Tax Return or Returns beginning on January 1, 2011, through December 31, 2011.

C. DANIEL HASSELL, 
Secretary

[Pa.B. Doc. No. 10-1219. Filed for public inspection July 2, 2010, 9:00 a.m.]