Philly tax updates: May 17 tax extension & new NTL forms

Hello,

As you’ve probably heard, the IRS extended the deadline for filing 2020 federal income tax returns to May 17, 2021. What does that mean for Philadelphia income, property, and business taxes? You’ll find out in this edition of our newsletter. We’re also covering new No Tax Liability (NTL) forms.

BIRT, NPT, Earnings and SIT: May 17

Philadelphia taxpayers now have until May 17, 2021, to file and pay:

Business Income and Receipts Tax (BIRT)
Net Profits Tax (NPT)
Earnings Tax
School Income Tax (SIT)

You can file and pay these four taxes by the new date without interest or penalties. We’ve adopted this emergency regulation to honor the extension of the federal and Commonwealth of PA income tax filing due dates.

Taxpayers who used Modernized e-Filing (MeF) to schedule a Philadelphia tax payment on April 15 will have the opportunity to reschedule their payment. If this is your case, we will contact you, or your tax preparer, with payment-rescheduling instructions.

You can find more information on our COVID-19 tax guidance webpage, and read the amendment in our BIRT regulations.

Property taxes: March 31

While we’ve adopted a temporary change for the taxes mentioned above, the due date to pay Real Estate Tax remains March 31, 2021.

The best way to pay your property tax is always online. Go to www.phila.gov/pay and select “Real Estate.” You can also pay over the telephone, by calling (877) 309-3710. Use eCheck to pay for free. Debit or credit cards are another option, but you will be charged a processing fee.

If you really must pay in person, you’ll need to schedule a payment appointment first. Get an appointment here: www.phila.gov/revenue/payment-appointment. For more information, including where you pay in person or how to request an affordable payment agreement, read our recent Real Estate Tax blog post.

New NTL forms

Businesses with $100,000 – or less – in Philadelphia taxable gross receipts, don’t owe the Business Income & Receipts Tax (BIRT). But in the past, even if you did not owe BIRT, you still had to file a return.

Starting for Tax Year 2020, there is no filing requirement when your business meets the $100,000 exemption. Instead, just tell us you’re choosing not to file by submitting our new, super-simple No Tax Liability (NTL) form.

You can submit an NTL form online. You can also print and mail us a paper form. Keep in mind that even if you qualify for the exemption, completing a full BIRT return might be a smarter choice.

Check out our blog post for a longer read about NTL forms. NTL forms were also the subject of our latest Revenue Rundown, a video series we produce during the tax season. We hope you find the video helpful:

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The Philadelphia Department of Revenue

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You can get all our COVID-19 related tax guidance on one webpage: