July 6, 2020
Pennsylvania businesses that are required to make
Accelerated Sales Tax (AST) prepayments should resume AST prepayments by July 20, 2020, the July due date for monthly filers with a prepayment obligation.
This prepayment requirement will once again be in effect in July after the Department of Revenue announced that taxpayers would not have to make AST prepayments in March, April, May or June. This step was taken to provide relief to business taxpayers during the COVID-19 pandemic.
During the four-month waiver period, the department said businesses that normally had a monthly prepayment requirement would not be charged penalties for missing prepayment deadlines. The department asked businesses to only remit the sales tax that they collected during the prior month. That will change in July with the resumption of the prepayment requirement.
The AST prepayment requirement applies to business taxpayers with an actual tax liability of more than $25,000 during the third quarter of the preceding year. Visit the Department of Revenue‘s page on
Accelerated Sales Tax Prepayments for more information on how to calculate your prepayments. There are two options for the calculation:
AST Level 1 - Taxpayers that remit $25,000 or more but less than $100,000 can remit:
50 percent of the actual tax liability for the same month of the previous year, or
At least 50 percent of the actual tax liability for the current period (new calculation method)
AST Level 2 - Taxpayers that remit $100,000 or more must remit:
50 percent of the actual tax liability for the same month of the previous year (no changes or other option)
Separate payments must be remitted for the current month’s prepayment and the prior month’s tax liability.
All businesses are encouraged to remit online using
e-TIDES, the department‘s online tax system for businesses. Find the
REV-819 on the department‘s website for a schedule of return and prepayment due dates. You can also visit the department‘s
Online Customer Service Center to find answers to common tax questions or submit a question to the department.
Stay safe,
Patti Hills
McCarthy & Company
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).
