Voluntary Disclosure is for businesses and individuals who do not already have an account with the Department of Revenue and have recently become aware of their tax obligations. Taxpayers can submit a Voluntary Disclosure application when they are ready to register and pay taxes and interest owed.
If the Department of Revenue approves your application for the Voluntary Disclosure Program and you fulfill its terms, the following conditions apply:
- The City will waive penalties for the tax years included in your three-year disclosure period once full payment is made and program requirements are met.
- The City will not audit or assess taxes for any time before the three-year disclosure period.
- However, your disclosed taxes and the three-year disclosure period for those taxes are subject to audit.
For businesses, the program can cover you even if you are not properly registered with the City of Philadelphia for a Commercial Activity License or a business tax account.
Follow the links to a list of all Philadelphia business and income taxes you may be subject to, depending on your activity and business type.
Requirements
To be accepted, you as the taxpayer:
- Cannot have already been contacted by the Department of Revenue, Law Department, or a City-authorized collection agency about the unpaid taxes.
- Must fully disclose all Philadelphia taxes that you owe for the past three years.
- Must pay the full amount of tax and interest due within 60 days of the date on your bill from the Department of Revenue.
Once accepted, the taxpayer must file all corresponding returns within the three-year disclosure period.
If you need to enter into a payment plan, you are not eligible for a Voluntary Disclosure agreement.
How to apply
You must send a letter to the Revenue Law Department to participate in the Voluntary Disclosure Program.
The letter should include:
- A brief description of your taxable Philadelphia activity, which may include income, products sold, or services provided
- The overdue taxes
- A statement saying that you (or the taxpayer, if you are writing on their behalf) have not been contacted by any department or agent of the City about these taxes.
Online
Email your letter to VoluntaryDisclosure@phila.gov
By mail
Law Revenue Group
Attn: Marissa O’Connell, Divisional Deputy City Solicitor
1401 John F. Kennedy Blvd., Room 580
Philadelphia, PA 19102