Philadelphia City Council enacted an ordinance, effective immediately, requiring all Philadelphia taxpayers to report any changes to their federal taxable income (as a result of a resolution of an audit, agreement with the IRS or court proceeding) to the Philadelphia Revenue Department (the Department). See our Tax colleagues’ more detailed alert on this ordinance here.
After a final determination that results in a change to a taxpayer’s federal taxable income, the taxpayer has 180 days to file a form with the Department reporting the change or face penalties for failing to do so. The City may then assess additional taxes or refunds based on the changes reported. The new ordinance is applicable to all individuals and entities subject to City taxes.
Individuals and entities should be aware of this new requirement and report any changes in federal taxable income in order to avoid facing penalties.