Sales Tax

The Pennsylvania state sales tax is a six percent excise tax on the sale of certain taxable services and tangible personal property, unless an exemption applies. Collection of sales tax is the responsibility of the vendor who also has the duty to remit the tax to the Pennsylvania Department of Revenue. Currently in addition to the six percent tax, Philadelphia has a two percent local sales tax and Allegheny County has a one percent local sales tax. Every vendor who is required to collect sales tax must file a return. If a sales tax return is not filed before the due date, interest and penalties will be added to the sales tax due.

Trust Fund Tax

All sales taxes collected from purchasers and not properly refunded constitute a trust fund for the Commonwealth of Pennsylvania. This trust is enforceable against the vendor, its representatives and any entity receiving any part of the sales tax monies without consideration, or with knowledge that the vendor is committing a breach of trust.

Responsible Party

The signature line of the PA-3 sales tax return includes a notice that the individual signing the return will be presumed by the Pennsylvania Department of Revenue to be the person responsible for payment of the sales tax and be subject to personal liability for any delinquencies. Trust Fund taxes, such as sales tax, are an exception to the general rule which protects officers, stockholders, and employees of a corporation from personal liability for the obligations of the business. A member of a business who is responsible or had the obligation to collect sales tax and has control over monies and sales tax accounts maybe assessed for collected sales tax that is not properly remitted to the Pennsylvania Department of Revenue.

Brandywine Tax Resolution has a strong record of successfully resolving sales tax problems in favor of the Taxpayer. This experience includes representing Taxpayers at audits, appeals conferences and in litigation.

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