PENNSYLVANIA FED/STATE E-FILE HANDBOOK - PENNSYLVANIA E-FILE HANDBOOK FOR AUTHORIZED E-FILE PROVIDERS OF 2018 PENNSYLVANIA INDIVIDUAL INCOME ...

 
PEnnsylvAnIA FEd/sTATE
   E-FIlE HAndBOOK

     Pennsylvania e-File Handbook
for Authorized e-File Providers of 2018
   Pennsylvania Individual Income,
     Corporation, Trust and Estate
 and Partnership Information Returns

                                   REV-993 (PT+) 02-19
PEnnsylVania FEd/sTaTE E-FilE Handbook                                                          www.revenue.pa.gov

sECTIOn 1                                                                                                         PAGE
 1.      oVERViEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
sECTIOn 2. GEnERAl InFORMATIOn
 2.1     dEFiniTions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
 2.2.    PRoGRaM PaRTiCiPaTion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
 2.3.    PRoVidER REsPonsibiliTiEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
 2.4.    inClUsion oF FEdERal daTa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
 2.5.    TiMEly-FilEd sUbMissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
 2.6.    aMEndEd REPoRTs/RETURns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
 2.7.    aCCEPTEd FilinG TyPEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
 2.8.    sCHEMa REQUiREMEnTs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
 2.9.    sUbMission and TRansMission sPECiFiCaTions . . . . . . . . . . . . . . . . . . . . 3
 2.10. soFTWaRE aCCEPTanCE, TEsTinG and aPPRoVal . . . . . . . . . . . . . . . . . . . . . 4
 2.11. sUsPEnsion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
 2.12. aCknoWlEdGEMEnT oF sUbMissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
sECTIOn 3. PARTnERsHIP E-FIlE
 3.1.    WHaT’s nEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
 3.2.    aCCEPTEd PEnnsylVania PaRTnERsHiP FoRMs and sCHEdUlEs . . . . . . . . . . 5
 3.3.    sCHEdUlE CHanGEs and addiTions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
 3.4.    EXClUsions To ElECTRoniC FilinG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
 3.5.    siGnaTURE REQUiREMEnTs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
 3.6.    PayMEnT oPTions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
 3.7.    RE-TRansMission oF REJECTEd sUbMission . . . . . . . . . . . . . . . . . . . . . . . . 8
 3.8.    EXTEnsion oF TiME To FilE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
 3.9.    FilinG REQUiREMEnTs FoR Pa Rk1/nRk1s FoR PaRTnERsHiPs . . . . . . . . . . . 10
sECTIOn 4. CORPORATE E-FIlE
 4.1.    WHaT’s nEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
 4.2.    aCCEPTEd PEnnsylVania CoRPoRaTE FoRMs and sCHEdUlEs . . . . . . . . . . . 10
 4.3.    sCHEdUlE CHanGEs and addiTions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
 4.4.    EXClUsions To ElECTRoniC FilinG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
 4.5.    siGnaTURE REQUiREMEnTs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
 4.6.    PayMEnT oPTions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
 4.7.    RE-TRansMission oF REJECTEd sUbMission . . . . . . . . . . . . . . . . . . . . . . . 12
 4.8.    EXTEnsion oF TiME To FilE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
PEnnsylVania FEd/sTaTE E-FilE Handbook                                                     www.revenue.pa.gov

sECTIOn 5. IndIvIdUAl InCOME E-FIlE                                                                        PAGE

 5.1.   aCCEPTEd PEnnsylVania indiVidUal inCoME TaX FoRMs and sCHEdUlEs . . 13
 5.2.   sCHEdUlE CHanGEs and addiTions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
 5.3.   EXClUsions To ElECTRoniC FilinG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
 5.4.   siGnaTURE REQUiREMEnTs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
 5.5.   REFUnd oPTions and diRECT dEPosiT . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
 5.6.   PayMEnT oPTions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
 5.7.   RE-TRansMission oF REJECTEd sUbMission . . . . . . . . . . . . . . . . . . . . . . . 19
 5.8.   EXTEnsion oF TiME To FilE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

sECTIOn 6. FIdUCIARy InCOME E-FIlE
 6.1.   aCCEPTEd PEnnsylVania FidUCiaRy inCoME TaX FoRMs and sCHEdUlEs . . . 21
 6.2.   sCHEdUlE CHanGEs and addiTions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
 6.3.   EXClUsions To ElECTRoniC FilinG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
 6.4.   siGnaTURE REQUiREMEnTs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
 6.5.   REFUnd oPTions and diRECT dEPosiT . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
 6.6.   PayMEnT oPTions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
 6.7.   RE-TRansMission oF REJECTEd sUbMission . . . . . . . . . . . . . . . . . . . . . . . 24
 6.8.   EXTEnsion oF TiME To FilE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

sECTIOn 7. COnTACT InFORMATIOn
 7.     ConTaCT inFoRMaTion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
PEnnsylVania FEd/sTaTE E-FilE Handbook                                              www.revenue.pa.gov

sECTIOn 1. OvERvIEW                                      sECTIOn 2. GEnERAl InFORMATIOn
Publication REV-993, Pennsylvania e-File Handbook,       2.1. dEFInITIOns
provides authorized e-File providers with specific       Electronic Return Originator (ERO) – authorized
requirements and procedures for electronic filing        e-file provider that originates the electronic
through the Modernized e-File (MeF) platform             submission of returns to the iRs.
provided by the internal Revenue service (iRs) also      Federal submission – a federal tax return with
known as Fed/state e-File and identifies those items     accompanying schedules.
which are unique to the electronic filing of
Pennsylvania returns. The procedures in this             Received date – The date and time the return is
document apply to all Fed/state e-File Programs. all     received and accepted by the iRs from the
publications referenced in this document are available   transmitter.
through the FTa secured state Exchange system.           schema – a document that defines the data types,
Check the website frequently for updated information     content, structure and allowed elements.
on e-filing through the Fed/state e-File Program.        software developer – a firm, organization or
The Pennsylvania department of Revenue, in               individual that develops software for the purpose of:
conjunction with the iRs, will be accepting                  • formatting electronic tax return/report
Pennsylvania individual, corporation, fiduciary and              information according to return/report
partnership returns with corresponding forms and                 layouts and specifications; and/or
schedules for tax year 2018. The method of                   • transmitting electronic returns/reports
submission is through the MeF platform provided by               information directly to the iRs.
the iRs. The Fed/state e-File Program allows tax         state submission - a Pennsylvania return/report
preparers and taxpayers to file federal and state        with accompanying schedules as required by the
returns in one electronic submission.                    department. a state submission also includes a
The process is designed to separate and encapsulate      complete copy of the federal return data as required
the federal and state return/report data in two          by the department.
distinct filings from one submission. The federal        Transmitter – a firm, organization or individual
portion will contain only the data pertaining to the     that transmits electronic returns/reports directly to
federal tax return. The associated state portion will    the iRs. a transmitter must have software and
contain all the data needed for filing the state         computers that allow it to interface with the iRs.
returns/reports, which includes a copy of the            XMl – short for Extensible Markup language, a
requested federal data. if the state submission is       language for defining and processing data.
associated with a federal submission, there will be
a link contained in the state submission to the          RTn – Routing transit number
associated federal submission.                           dAn – deposit account number
The iRs acknowledges to the transmitter the
acceptance of the federal submission and receipt of
                                                         2.2. PROGRAM PARTICIPATIOn
the state submission. The state submission is then       The Pennsylvania department of Revenue requires
retrieved by the department and processed. The           each tax services provider to complete a REV-721,
                                                         Pennsylvania Electronic Filing agreement. The
department acknowledges to the transmitter the
                                                         agreement must be completed and signed by an
processing or rejection of Pennsylvania submissions
                                                         authorized representative. a signed agreement is
through the iRs.                                         required in order to receive certification for the
The state submission consists of a manifest and          Pennsylvania MeF Fed/state e-File Program.
payload. The manifest provides identifying information   The Fed/state e-File Program is available to all
about the state submission and information the iRs       interested parties that have been accepted as
needs to perform limited validation. The payload         authorized iRs e-File providers in the Federal e-File
includes the state XMl data, binary attachments in       Program and that transmit returns/reports to the
portable document format (PdF) and a copy of the         iRs. This includes ERos, transmitters and software
requested federal data as required by the state.         developers defined herein.

                                                                                                      Page 1
PEnnsylVania FEd/sTaTE E-FilE Handbook                                                  www.revenue.pa.gov

Pennsylvania along with other states has                  Transmitter
implemented the requirement, the “10 business                • Timely transmit returns/reports, retrieve
day Rule”, related to the application of software               acknowledgement files and send acknowl-
updates, and applies to all software vendors. The               edgement file information to the appropri-
rule requires that users/customers of the software              ate ERo.
product must download and apply the product                   •   Provide an e-postmark           for   every
update within 10 days after a production release.                 Pennsylvania return/report.
To participate in the Fed/state e-File Program,               •   Promptly correct transmission errors
participants must first be accepted by the iRs for                causing electronic transmissions to be
e-filing. Participants must reference and meet                    rejected.
specifications outlined in iRs Publication 3112 and
                                                              •   Ensure the security of all transmitted data.
4164. The department does not require approved
ERos, transmitters, and software developers               Electronic Return Originator (ERO)
to register separately for electronic filing in               • identify the paid preparer (if any) in the
Pennsylvania.                                                    appropriate field of the electronic record of
                                                                 returns and/or reports it originates.
2.3. PROvIdER REsPOnsIBIlITIEs                                •   inform taxpayers of obligations and options
authorized e-File providers must adhere to all iRs                for paying balances due. Taxpayers who
and Pennsylvania e-File rules, requirements and                   have balances due must pay them by the
specifications applicable to the e-File activities they           original due dates of the returns/reports in
conduct. Responsibilities include, but are not limited            order to avoid interest and penalties.
to:                                                           •   Ensure appropriate signatures are included
software developer                                                in the electronic returns/reports.
    • develop software in accordance with                     •   originate the electronic submission of
         statutory requirements and Pennsylvania                  returns/reports as soon as possible after
         return preparation instructions and provided             they are signed.
         business rules.
                                                              •   Retain signed signature documents for the
    •    Provide accurate Pennsylvania returns/reports            timeframe required from the due date of
         in the correct electronic format.                        the return/report or the date the
    •    Provide data validation, verification and                return/report was filed electronically,
         error detection to prevent transmission of               whichever date is later.
         incomplete, inaccurate or invalid return             •   Ensure acknowledgements are received for
         information.                                             all state submissions filed.
    •    Prevent electronic filing of any form or             •   instruct taxpayers that if a Fed/state
         schedule not approved for electronic filing              submission is rejected by the iRs, a state
         by the department.                                       stand-alone submission must be filed to
    •    include electronic signature information in              meet the established due date.
         the software.
                                                          2.4.    InClUsIOn OF FEdERAl dATA
    •    successfully   complete     all   testing   as   Each state filing must include a copy of the federal
         required.                                        data using the most current published version of
    •    Correct any software errors that may occur       the iRs XMl schema.
         after production begins and work with the
         department to follow up on any processing        2.5.    TIMEly FIlEd sUBMIssIOns
         issues that may arise during filing season. if   all due dates for filing paper returns apply to
         software providers need to re-release            electronic returns. The department recognizes the
         corrected software, the release must be done     electronic postmark as the date received by the
         in a timely manner, and proper notification      department. a state submission and an electronic
         must be provided to all customers.               payment are considered timely-filed if the received

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PEnnsylVania FEd/sTaTE E-FilE Handbook                                               www.revenue.pa.gov

date is prior to the due date for Pennsylvania           2.9. sUBMIssIOn And
returns.                                                      TRAnsMIssIOn sPECIFICATIOns
                                                            •     The transmission protocol will be Web
2.6.    AMEndEd REPORTs/RETURns                                   services using simple object access Protocol
after a state submission is acknowledged as                       (soaP) with attachments messaging.
received, it cannot be recalled or intercepted. if the      •     a state submission contains XMl data,
ERo or taxpayer wishes to change any entry on an                  binary attachments in PdF format and a
accepted state submission, an amended return must                 copy of the federal submission as required
be filed.                                                         by the department.
2.7. ACCEPTEd FIlInG TyPEs                                  •     Packaging of data and transmission payload
                                                                  must conform to all submission and
Fed/state - an original federal submission and one
                                                                  transmission file structures.
original state submission containing a link to the
original federal submission (includes the submission        •     if the iRs rejects a federal submission, the
id of the federal return in the state manifest).                  department will not receive the state
                                                                  submission. The Fed/state submission
The Fed/state submissions do not have to be                       must be corrected and re-submitted as a
transmitted together; however, the state submission               Fed/state submission or state stand-alone
must include a pointer to the original federal return.            submission.
    note: if a state submission is linked to a              •     Each submission must be in zip archive
    federal submission and the state submission is                format.
    to be transmitted separately, please transmit           •     The soaP message itself must not be
    the federal submission first. after it has been               compressed or zipped.
    accepted, send in the state submission.
                                                            •     The soaP message must contain a header,
state stand-Alone - an original state submission                  a body and an attachment.
that does not contain a link to a previously
submitted original federal submission.                      •     The ERo and transmitter must be approved
                                                                  with the iRs to submit Fed/state
2.8.    sCHEMA REQUIREMEnTs                                       submissions.
    •   software developers are required to apply           •     The department will produce acknowl-
        data from the Pennsylvania spreadsheets                   edgements of processing or rejection for
        or tax forms to the appropriate data                      each state submission. The transmitter will
        element from the XMl schema. state data                   then retrieve the state acknowledgements
        must conform to the requirements and                      from the iRs.
        specifications outlined in this handbook.
                                                         Expected values for state submission Manifest
    •   Federal data required by the department for
                                                          Form                        submission Type
        inclusion in the state submission must
        conform to the most current published             Pa-40                       Pa1040
        version of the iRs XMl schema.                    REV-276 EX                  Pa40EXT

    •   Values for data elements identified by the        Pa-41                       Pa1041
        department as required fields must be             REV-276 EX                  Pa41EXT
        included in the XMl schema and passed to          Pa-20s/65                   Pa65Pa20s65
        the department, even when the value of            Pa-65 CoRP                  Pa65Pa65CoRP
        the data element is zero.
                                                          RCT-101                     Pa20RCT101
    •   Values for data elements identified by the
                                                          RCT-101i                    Pa20RCT101i
        department as fields not required should
        be included in the XMl schema and passed          FoRM 853                    Pa20EXT
        to the department only when the taxpayer          Pa65EsR                     Pa40EsRP
        enters a value, even if the value is zero.        REV-276 EX                  Pa65EXT
    •   all XMl data must be valid and well-formed.       Pa40EsR                     Pa40EsRP

                                                                                                        Page 3
PEnnsylVania FEd/sTaTE E-FilE Handbook                                                  www.revenue.pa.gov

For more information on conforming to transmission          JAREd dUnlOP
and submission file structures, refer to iRs                Pa dEPaRTMEnT oF REVEnUE
Publications 4163 and 4164 at www.irs.gov.                  bUREaU oF adMinisTRaTiVE sERViCEs
                                                            12TH Fl 4 TH & WalnUT sT
2.10. sOFTWARE ACCEPTAnCE,                                  HaRRisbURG Pa 17128
      TEsTInG And APPROvAl                                  Telephone: 717-705-0593
   •     all participants are required to pass the          Email: jdunlop@pa.gov
         iRs’s acceptance testing system procedures
                                                            •   software developers must include the edits
         for acceptance into the Fed/state e-File
                                                                and verifications based on the business
         Program.
                                                                rules for each field or data element
   •     The Electronic Filer identification number             specified by the department. software
         (EFin)     and    Electronic    Transmitter            developers must closely follow the
         identification number (ETin) assigned by               requirements for each field to insure proper
         the iRs will be used by the department.                data formatting.
         These numbers will be required for use in          •   The department will provide test results
         every submission for identification/verifi-            and vendor approval in written confirma-
         cation of testing and production returns.              tion to the vendor.
   •     The software used to capture and transmit
         data must be approved by the iRs and the       2.11. sUsPEnsIOn
         department.                                    The department reserves the right to suspend or
   •     When a software developer’s test re-           revoke the electronic filing privileges of any
         turns/reports have been accepted by the        electronic filer who varies from the Pennsylvania
                                                        e-File requirements and specifications.
         iRs, the state data will be retrieved by the
         department for testing.
                                                        2.12. ACKnOWlEdGEMEnT OF
   •     software developers must transmit test               sUBMIssIOns
         files, as specified by the department, to      The department electronically acknowledges the
         ensure the software meets the depart-          receipt of all state submissions. after the retrieval of
         ment’s specifications.                         state submissions from the iRs, the department
   •     all software developers are required to test   will generate acknowledgement records and
         with the department for approval of the        transmit them to the iRs for retrieval by
         software.                                      transmitters. The acknowledgement is an electronic
                                                        confirmation of receipt and informs transmitters
   note: Test materials and instructions may be         that the Pennsylvania returns/reports transmitted
   obtained using the contact information in            have been received and processed or rejected by the
   section 7.                                           department. The acceptance code “a” indicates a
   •     software developers must support the           return/report has met the department’s processing
         schedules and forms specified by the           criteria and is considered received, and the rejection
         department.                                    code “R” indicates a return/report has failed to meet
                                                        the department’s processing criteria.
   •     software developers that produce a
         facsimile of payment vouchers, Pa-8879         should a return/report be rejected, a unique rejection
         and/or Pa-8453 with a software package         code will be included in the acknowledgement to
         must submit the appropriate number of          identify the reason for rejection. Transmitters
         copies to the department for testing and       should communicate acknowledgment results back
         approval. Five copies of the substitute        to the appropriate ERo for resolution if applicable.
         voucher must be mailed to the address          if the return/report is rejected, the transmitter/
         below. Two copies of Pa-8879 and two           software developer/ERo/taxpayer is required to
         copies of Pa-8453 must be mailed or            re-submit a corrected return/report or file by other
         emailed in PdF format to:                      means.

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PEnnsylVania FEd/sTaTE E-FilE Handbook                                                 www.revenue.pa.gov

sECTIOn 3. PARTnERsHIP E-FIlE
                                                        Pa schedule d-ii    sale, Exchange or disposition of
3.1. WHAT’s nEW                                                             Property Within Pa
PA-20s/PA-65 Return                                     Pa schedule d-iii   sale, Exchange or disposition of
on the Pa20s/Pa-65 return, page 2, Part Vii, line 6                         Property outside Pa
was changed to allow certain partnerships and Pa s
                                                        Pa schedule d-iV    sale, Exchange or disposition of
corporations to elect to be subject to assessment at
                                                                            Property outside Pa
the entity level.
                                                        Pa schedule E       Rent and Royalty income (loss)
schedule B
The federal Tax Cuts and Jobs act of 2017               Pa schedule Rk-1    Resident schedule of
established a tax on untaxed earnings and profits of                        shareholder/Partner/beneficiary Pass
foreign corporations accumulated after 1986 and                             Through income, loss and Credits
prior to 2018 (the Repatriation Transition Tax). For    Pa schedule nRk-1   nonresident schedule of
Pennsylvania Personal income Tax, these earnings                            shareholder/Partner/beneficiary Pass
and profits are taxable when they are actually                              Through income, loss and Credits
distributed. line 5 should include any actual
                                                        Pa schedule M       Reconciliation of Federal-Taxable
payments of these earnings and profits that were not                        income (loss) to Pa-Taxable income
included in taxable income in a prior year. Provide a                       (loss) – Part a
statement explaining the nature / source of the
payments. For additional information on the RTT,                            Reconciliation of Federal-Taxable
                                                                            income (loss) to Pa-Taxable income
please see information notice Corporation Taxes and
                                                                            (loss) – Part b
Personal income Tax 2018-1: Tax Cuts and Jobs act
of 2017.                                                Pa schedule oC      other Credits

schedule CP                                             Pa schedule H-Corp Corporate Partner apportioned
The federal Tax Cuts and Jobs act of 2017                                  business income (loss)
established a tax on untaxed earnings and profits of    Pa-65 Corp          directory of Corporate Partners
foreign corporations accumulated after 1986 and
prior to 2018. The earnings and profits are taxable     Pa schedule CP      Corporate Partner Cni Withholding
income for Pennsylvania Corporate net income Tax        Pa schedule a       interest income
purposes and therefore partnerships must include
this income when calculating the withholding for        Pa schedule b       dividend income and Capital Gain
non-filing corporate partners.                                              distributions

                                                        Pa schedule H       apportioned business income (loss)/
3.2. ACCEPTEd PEnnsylvAnIA                                                  Calculation of Pa net business
PARTnERsHIP FORMs                                                           income (loss)
And sCHEdUlEs
                                                        Pa schedule nW      nonresident Withholding Payments
below are the Pennsylvania partnership forms and                            Pa s Corporations and Partnerships
schedules that will be accepted for tax year 2018 in
XMl format. The appropriate XMl schemas for these       Pa schedule J       income from Estates or Trusts
forms are on the department’s website,                  Pa schedule T       Gambling and lottery Winnings
www.revenue.pa.gov.
                                                        Pa schedule i       amortization of intangible drilling
                                                                            Costs
Pa-20s/Pa-65      Pa s Corporation/Partnership
                  information Return                    Pa P-s koZ          schedule P-s koZ
                                                                            keystone opportunity Zone
Partner/Member/   Partner/Member/shareholder
shareholder       directory                             Pa-65 EsR           Estimated Withholding Tax for
directory                                                                   nonresident owners

Pa schedule d-i   sale, Exchange or disposition of      REV-276             application for Extension of Time
                  Property Within Pa                                        to File

                                                                                                               Page 5
PEnnsylVania FEd/sTaTE E-FilE Handbook                                               www.revenue.pa.gov

3.3. sCHEdUlE CHAnGEs                                      • The Pa-20s/Pa-65 is an information return
And AddITIOns                                                that does not provide the option for
Accepted PdF Forms                                           requesting a refund or carry-forward of
below are Pennsylvania and/or federal forms and              overpayments. if the overpaid amount is
schedules that will be accepted for tax year 2018 as         not passed through to the nonresident
                                                             individual, estate or trust on the respective
binary attachments in PdF format. When naming
                                                             Pa schedule nRk-1, or claimed on a Pa-40
binary attachments in PdF format, tax preparation
                                                             nonresident Consolidated income Tax
software must use the names noted below.
                                                             Return, then the entity must send a written
For Pennsylvania forms and schedules not identified          request to:
in section 3.2, tax preparation software must note
                                                                  Pa dEPaRTMEnT oF REVEnUE
“PaMiscstateattachment” as the file name.
                                                                  nonREsidEnT WiTHHoldinG
Miscellaneous PdF files cannot exceed 60 Mb. if                   TaX REFUnd
additional miscellaneous files are needed, use                    Po boX 280600
numeric labeling at the end of file name. For                     HaRRisbURG Pa 17128-0600
example, PaMiscstateattachment2.                                  FaX: 717-705-6236
    note: a single-member limited liability                       EMail:
    company (sMllC), as a disregarded entity                      Ra-biTPiTbill-REJECT@Pa.GoV
    (a branch or division), reports income on the      The request must be on company letterhead and
    parent Pa-20s/Pa-65 information Return.            include the entity’s name, tax year, social security
                                                       number(s) of the owner(s), amount of nonresident
 Federal Form 3115   Application for FF3115.PdF        withholding paid, amount of nonresident withhold-
               Change in Accounting Method
                                                       ing tax liability, the requested refund amount
 Federal Form 8824    like-Kind      FF8824.PdF        and/or carry forward to the next year of nonresi-
                      Exchanges                        dent withholding and reason for request. direct
                                                       deposit is not an option.
3.4. EXClUsIOns TO
     ElECTROnIC FIlInG                                 3.5. sIGnATURE REQUIREMEnTs
The following Pennsylvania partnership forms and       an electronic Pa s Corporation/Partnership
schedules cannot be filed electronically through       information Return (Pa-20s/Pa-65) must be signed
Fed/state e-File:                                      by a general partner, principal officer or authorized
                                                       individual and in addition by the paid preparer, if
    • Pa-20s/Pa-65, Pa s Corporation/Partnership
                                                       applicable. Two signature options are available, as
      information Return for tax periods prior to      described below.
      2016.
    • Pa-20s/Pa-65, Pa s Corporation/Partnership           • The federal self-select Pin option - This op-
      information amended Return for tax years               tion consists of two Pins, one for the tax-
                                                             payer and one for the practitioner. in order
      prior to 2016.
                                                             for the department to accept the federal
    • Pa-40 nRC, nonresident Consolidated                    self-select Pin as a signature, software de-
      income Tax Return                                      velopers must display a jurat/disclosure
    • Pa schedule nRC-i, directory of nonresident            statement, similar to the language on the
      owners (individuals)                                   Pa-8879-P, Page 3, Electronic signature
                                                             specifications and meeting the requirements
    • Pa-65 Corp, directory of Corporate Partners –
                                                             of 72 P.s. § 7333 and 61 Pa. Code §121.23.
      only if the entity chooses to pay via check
                                                             Taxpayers and ERos must complete Pa-
      instead of aCH. if submitting payment by
                                                             8879-P, Pennsylvania E-File signature
      check instead of aCH for corporate partner(s),
                                                             authorization for Pa s Corporation/Partnership
      the Pa-65 Corp must be attached as a
                                                             information Return (Pa-20s/Pa-65) –
      payment voucher with the check.
                                                             directory of Corporate Partners (Pa-65
    • debits from financial institutions outside of          Corp), when using this method and con-
      the territorial jurisdiction of the U.s.               senting to electronic funds withdrawals. The

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        department requires ERos to retain com-             •    Pa-65EsR Quarterly Estimated Payments
        pleted Pa-8879-P forms for three years after             for nonresident individuals.
        the due dates of the returns or the dates the
                                                        Future estimated nonresident individual tax
        returns were filed electronically, whichever
        is later.                                       withholding payments for tax year 2019 will be
                                                        stored in the system as separate electronic
    • if a taxpayer elects not to use the federal       transaction payments until the specified due date.
      self-select Pin option, or if the state
      submission is filed as a state stand-alone        The nonresident individual quarterly tax withhold-
      return which means there is no link to an         ing payment may not be submitted through elec-
      original federal submission, the department       tronic funds transfer, credit/debit cards or e-TidEs.
      requires the ERo to complete Pa-8453-P, Pa                Electronic Funds Withdrawal
      s Corporation/Partnership information
                                                                Payments made by this method are part of
      Return (Pa-20s/Pa-65) – directory of
                                                                the state submission and are automatically
      Corporate Partners (Pa-65 Corp) Tax
                                                                and electronically transferred from taxpayers’
      declaration for a state E-File Return, and
      retain it for three years after the due date of           bank account. The taxpayer must provide the
      the returns or the date the returns were filed            ERo with appropriate bank account numbers,
      electronically, whichever is later. Pa-8453-P             routing numbers, account types (checking or
      must be completed and signed by all                       savings), payment amounts and dates to
      appropriate parties before the return is                  have payments debited (normally the
      transmitted electronically.                               return/report due date). This allows the
                                                                taxpayer to pay the balance due as soon as
        in the event the department selects an                  the return/report is processed or to pay the
        electronic return for examination, the ERo              balance due on a future date, should the
        may be required to provide Pa-8879-P and,               taxpayer want to file early but pay closer to
        if appropriate, Pa-8453-P, within five                  the due date. The ERo should caution
        business days of the request. a percentage              taxpayers to ensure their financial institutions
        of these forms will be randomly requested               allow electronic funds withdrawal from
        yearly for monitoring compliance. do not
                                                                designated accounts before e-filing.
        mail these forms to the department unless
        requested by the department.                            Check and 2018 nonresident
                                                                Withholding Payment substitute
3.6. PAyMEnT OPTIOns                                            voucher
The only acceptable electronic payment method for               Payments remitted by check must be
Fed/state Partnership e-File is electronic funds                accompanied by the 2018 nonresident
withdrawal, which is part of the current tax year               Withholding Payment substitute Voucher.
return submission and is automatically and elec-                software vendors that will include the
tronically transferred from taxpayers’ bank ac-                 voucher in software must have the voucher
counts. The department will accept a final catch-up             approved by the department.
payment for nonresident individuals filed with an
                                                                if a state submission containing an electronic
extension using the REV-276.
                                                                funds withdrawal payment is rejected by the
The following types of payments can be electroni-               iRs or department, the taxpayer is still
cally transferred if filed through Fed/state e-File:            required to remit the balance due by the
For the PA-20s/PA-65 Information Return                         original return due date of the return/report.
                                                                any balance due not paid by the original
   • Final nonresident individual tax withholding
                                                                return due date will be subject to interest
       “catch-up” payment submitted with the
       2018 tax year return; and                                and penalty fees.
    •    2019 (future) estimated payments for           For the PA-65 Corp, directory of Corporate
         nonresident individual quarterly tax           Partners
         withholding submitted with the 2018 tax        Corporate net income tax withholding payments on
         year return.                                   behalf of nonfiling corporate owner(s).

                                                                                                       Page 7
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Payment for corporate net income tax should be             •   address line 2 (optional)
included with the Pa-65 Corp, directory of Corporate       •   Property description
Partners, portion of the transmission.
                                                           •   address line 1
3.7. RE-TRAnsMIssIOn OF                                    •   address line 2 (optional)
     REJECTEd sUBMIssIOn                                   •   City
When an electronically transmitted Pa s                    •   state
Corporation/Partnership        information    Return       •   ZiP code
(Pa-20s/Pa-65) is rejected, there is a 10-day
transmission period to correct that return for
                                                        Partnership Error Rejection Codes
electronic re-transmission. Correcting a return for
electronic re-transmission is generally required         Rule number        Rule Text
when the originally signed return had errors in the      X0000-002          incorrect Transmission data.
XMl format or errors that caused the return to fail
                                                         X0000-003          submissionid in the submission file
department schema validation or business rules. if
                                                                            mismatches submissionid in the
the REV-276 application for Extension of Time to file                       manifest file.
is rejected, there will be a five day re-transmission
                                                         X0000-004          no submission file found in state
period for the extension of time to file.                                   submission directory.
Re-transmissions will be considered timely filed if      X0000-005          The XMl data has failed schema
the electronic postmarks on the re-transmissions                            validation.
are on or before the Pa s Corporation/Partnership        X0000-006          MeF Gateway experiences system
return due dates. it is important to note the 10-                           error.
day re-transmission or the five day re-transmission      X0000-007          other state submission.
period does not apply to payments. if a rejected         X0000-008          The namespace declarations in the
submission contains an electronic funds withdrawal                          root element of the return ('Return'
payment, the taxpayer is still required to remit the                        element) must be as follows: The
balance due by the original due date of the return.                         default namespace shall be set
The department recommends using one of the               Pa20-s/Pa-65-000   software developer Code (id) con-
payment options outlined in section 3.6, Payment                            tains an invalid software developer
options, to meet due date requirements. linked                              Code (not an approved developer)
Fed/state submissions rejected by the iRs may be                            based on tax type and tax year.
submitted as unlinked state stand-alone submis-          Pa20-s/Pa-65-001   Pa 20-s/Pa-65 return was previ-
sions provided they meet the department’s XMl                               ously filed through MeF
format, schema validations and business rules.           Pa20-s/Pa-65-002   Total Corporate net income tax
                                                                            Withholding is greater than zero
The Pa department of Revenue follows the same                               and a payment is not present.
guidelines as the iRs for a rejected submission. if a    Pa20-s/Pa-65-003   net Gain (loss) from Pa schedule
submission was rejected, a return can be corrected                          d, line 5, Column a or b on the
within 10 days and the received date of the original                        Pa20s/65 are present and
rejected return will be honored.                                            schedules d-1 through iV are not
                                                                            included with the filing.
Important: The 10-day re-transmission period is          Pa20-s/Pa-65-004   Rent/Royalty net income (loss)
not an extension of time to file. it is a period of                         line 6, Column a or b on the
time to correct errors in the electronic file. The                          Pa20s/65 are present and schedule
10-day re-transmission period applies to business                           E is not included with the filing.
returns filed on MeF, regardless of the date filed,      Pa20-s/Pa-65-006   invalid Requested Payment date.
due date or extended due date.                                              if a payment is present, the
                                                                            Requested Payment date must be
Common Errors to Avoid                                                      present. The Requested payment
address on schedule E property(ies) must be                                 date must be a valid date and can-
complete, including the following:                                          not be greater than 365 days after
                                                                            the iRs Time stamp date.
   • Property description
                                                         Pa20-s/Pa-65-007   Missing required forms for return type
   • address line 1

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 Rule number        Rule Text                               Rule number         Rule Text
 Pa20-s/Pa-65-008   invalid state Ein. if state Ein is      Pa1120-021          Tax year begin date cannot be
                    present, it must be 7 or 10 digits                          greater than Tax year End date.
                    in length and only contain numeric
                    characters.                             Pa1120-022          Tax year End date cannot be
                                                                                greater than the submission date.
 Pa20-s/Pa-65-009   business name line 1 must be
                    present, left justified and must not    Pa1120-023          Tax year End date cannot be
                    contain any special characters other                        greater than 371 days from Tax
                    than a hyphen or more than one                              year begin date.
                    consecutive space.
 Pa20-s/Pa-65-010   if business name line 2 is present,    3.8. EXTEnsIOn OF TIME TO FIlE
                    it must be left justified and cannot
                    contain any special characters other   Taxpayers who have balances due must pay them by
                    than a hyphen or more than one         the original due date of the return in order to avoid
                    consecutive space.                     interest and penalties. REV-276, application for
 Pa20-s/Pa-65-011   Payment amount does not equal          Extension of Time to File, can extend the filing due
                    values entered in the sub amount       date up to five months for filing the Pa s
                    type fields in addenda record.         Corporation/Partnership       information      Return
 Pa20-s/Pa-65-012   only one sub amount type field         (Pa-20s/Pa-65) but it does not extend the time for
                    equaling "C" is allowed.               full payment of the catch-up nonresident
                                                           withholding tax payment deadline. Taxpayers filing
 Pa20-s/Pa-65-013   all Financial Transaction payments
                    must include an addenda Record         for an extension should file in sufficient time for the
                    with subamountType.                    Pa department of Revenue to consider and act upon
                                                           it. The REV-276 may be filed through the MeF
 Pa20-s/Pa-65-015   invalid payment type. a sub
                    amount type of "P" is not valid
                                                           Fed/state e-file program.
                    unless a Pa-65 Corp is present.        Fill in the “Extension Requested” oval at the top of
 Pa20-s/Pa-65-016   invalid payment type. a sub            the Pa-20s/Pa-65 information Return.
                    amount type of "a" is not valid un-
                    less a Pa20-s/Pa-65 or a Pa 65EsR
                                                                 • if the entity did not file REV-276,
                    or a REV-276 is present.                         application for Extension of Time to File, in
                                                                     paper form and has requested an extension
 Pa20-s/Pa-65-017   invalid payment type. a sub
                                                                     for the federal return, include a copy of
                    amount type of "C" is not valid
                    unless an RCT-101, RCT-101i or                   federal Form 7004 with the Pa-20s/Pa-65
                    REV-853R is present.                             information Return as a PdF attachment.
 Pa20-s/Pa-65-018   state schema Version must be                 • if the entity electronically filed a federal
                    present.                                         extension, include a statement as a PdF
 Pa20-s/Pa-65-019   bank account number and Routing                  attachment.
                    number cannot be the same                    • if the entity submitted REV-276,
 Pa20-s/Pa-65-020   Tax year in the submission file does             application for Extension of Time to File, in
                    not match tax year in the manifest               paper form, it should not submit a copy of
                    file.                                            the extension paperwork with the elec-
 Pa20-s/Pa-65-021   The submission exceeds file size                 tronic Pa-20s/Pa-65 information Return
                    limit.                                           and if a payment is due, payment should
 Pa65EsR-001        invalid payment type. The submis-
                                                                     be in paper check form only.
                    sion cannot contain a state               Important: There is no extension of time to
                    payment.
                                                              file the Pa-65 Corp, directory of Corporate
 Pa65EsR-002        Missing payment. The submission           Partners. The Pa-65 Corp is a payment voucher
                    must contain at least one Estimated       for withholding corporate net income tax for
                    Payment.
                                                              nonfiling corporate partners which indicates
 Pa65EXT-001        invalid payment type. The submis-         how much was withheld for each corporate
                    sion cannot contain Estimated             partner. it is not a tax return and therefore has
                    Payments.                                 no extension provision.

                                                                                                            Page 9
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3.9. FIlInG REQUIREMEnTs FOR PA                           REV-853    Pa Corporation Taxes annual Extension
FOR RK1/nRK1s FOR PARTnERsHIPs                                       Request
For those partnerships that exceed the file size limit    REV-1175   schedule aR Explanation for Filing an
and/or are Publicly Traded Partnerships that requires                amended Pa Corporate net income
the Pa schedule Rk1/nRk1s to be filed, please                        Tax Report
contact the following individual for assistance with
                                                          REV-1834   schedule C-8 adjustment For bonus
the electronic transmission of the Pa schedule                       depreciation, schedule C-9 adjustment For
Rk1/nRk1:                                                            deduction For Property Which is Fully
                                                                     depreciated, sold or otherwise disposed
    Pa dEPaRTMEnT oF REVEnUE
    Pass THRoUGH bUsinEss oFFiCE
    4TH & WalnUT sT                                      4.3. REMIndER: sCHEdUlE CHAnGEs
    HaRRisbURG Pa 17128                                       And AddITIOns
    Telephone: 717-425-2884                                  •   IMPORTAnT: REV-798a was for tax year
    Email: sashupp@pa.gov                                        2017 to report the onetime repatriation of
                                                                 foreign income under the federal Tax Cuts
sECTIOn 4. CORPORATE E-FIlE                                      and Jobs act. Therefore, the REV-798a
4.1. WHAT’s nEW                                                  should not be filed for tax years beginning
For tax years beginning after dec. 31, 2016, the                 after dec. 31, 2017. instead, all foreign
percentage of the net loss deduction is 30 percent               dividends received deductions will be
of Pa taxable income.                                            reported on the revised form REV-798.
REMIndER - act 52 of 2013 requires the add-                  •   CAUTIOn: Qualified 168(k) property placed
back of intangible expenses to income for interest,              in service after sept. 27, 2017, is subject to
royalties, patents, trademarks, etc., between                    100 percent add-back. see Corporation Tax
affiliated companies in certain instances.                       bulletin 2018-03. REV-799 is no longer
                                                                 required to be completed. Complete
4.2. ACCEPTEd PEnnsylvAnIA                                       REV-1834, schedules C-8 and C-9.
     CORPORATE FORMs                                         •   IMPORTAnT: Corporate taxpayers granted
     And sCHEdUlEs                                               a federal extension MUsT indicate this by
                                                                 checking the "Federal Extension
 RCT-101    Pa Corporate Tax Report is used for both
            the original and amended Tax Report
                                                                 Granted" box under step B on Page 1 of
                                                                 RCT-101, and include a copy of the federal
 RCT-101i   inactive Pa Corporate Tax Report                     extension request with the report.
 RCT-103    net operating loss schedule                      •   For tax years beginning after dec. 31, 2017,
                                                                 the percentage of the net loss deduction is
 REV-106    insert sheet
                                                                 35 percent of Pa taxable income.
 REV-798    schedule C-2 Pa dividend deduction           Page 1 of RCT-101 contains a checkbox labeled sect
            schedule
                                                         381/382/Merger nols/Reg inv Co/sub Para 18. This
 REV-860    schedule l balance sheets, schedule M-1      box must be checked for any of the conditions listed
            Reconciliation of income (loss),             below. Examples of reports include those filed by:
            schedule M-2 Reconciliation of Member’s
            Capital account, C-5 schedule of Taxes,
                                                             • Corporations requesting extra-statutory
            schedule oa-other additions,                         treatment beyond that provided by law;
            schedule od-other deductions                     •   Corporations with two distinct activities like
 REV-861    schedule da disposition of assets                    warehousing/trucking & distribution/trucking
                                                                 or persons/transportation & property/
 REV-934    schedule of nonbusiness income                       transportation;
 REV-986    schedule to support Claim of Exemption           •   Corporations having net operating loss
            from Corporate net income Tax                        (nol) limitations under iRC section 381
            Under P. l. 86-272
                                                                 and iRC section 382;

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    •   Corporations claiming losses or bonus                   dates the return/reports were filed elec-
        depreciation carry-forward from a merger;               tronically, whichever dates are later. The
        and                                                     ERo must retain Pa-8879-C.
    •   UdiTPa section 18 taxpayers claiming               •    if a taxpayer elects not to use the federal
        alternate apportionment method or                       self-select Pin option or if the state sub-
        separate accounting.                                    mission is filed as a state stand-alone (no
    •   business income will be apportioned to                  link to an original federal submission), the
                                                                department requires the ERo to retain a
        Pennsylvania by use of the sales factor only.
                                                                completed Pa-8453-C for three years after
    •   The electronic funds transfer requirement               the due date of the return/reports or the
        was reduced from $10,000 to $1,000; all                 date the return/reports were filed elec-
        payments of $1,000 or more must be made                 tronically, whichever is later. The ERo must
        electronically or by certified or cashier’s             retain Pa-8453-C. Pa-8453-C must be
        check remitted in person or by express mail             completed and signed by all appropriate
        courier.                                                parties before the return is transmitted
                                                                electronically.
4.4.    EXClUsIOns TO
        ElECTROnIC FIlInG                               in the event the department selects an electronic
                                                        return/report for examination, the ERo may be re-
The following Pennsylvania corporate forms cannot       quired to provide Pa-8879-C and, if appropriate,
be filed electronically through Fed/stateCorporate      Pa-8453-C, within five business days from the date
e-File:                                                 of the request. in addition, a percentage of these
    • RCT-101d declaration of de minimis                forms will be randomly requested yearly for mon-
         Pennsylvania activity                          itoring compliance. do not mail these forms to the
    •   RCT-128C, Report of Change in Corporate         department unless requested by the department.
        net income Tax
                                                        4.6. PAyMEnT OPTIOns
    •   Consolidated Tax Returns: PA statute            Taxpayers may choose to pay tax due using one of
        does not allow for consolidated                 the methods outlined below. Tax payments of
        RCT-101s to be electronically filed.            $1,000 or more are required by law to be remitted
                                                        electronically. Failure to comply with this
4.5. sIGnATURE REQUIREMEnTs                             requirement will result in the assessment of a
an electronic Pa Corporate net income Tax Report,       penalty equal to 3 percent of the total tax due, not
RCT-101, must be signed by an authorized corporate      to exceed $500. For purposes of enforcement,
officer and in addition, by the paid preparer,          “total tax due” is the payment/remittance amount.
if applicable. Two signature options for signing        Electronic funds withdrawal, electronic funds
electronic reports are available.                       transfer (EFT) and credit/debit cards qualify as
    • The federal self-select Pin option - This         acceptable electronic payment methods.
         option consists of two Pins, one for the              Electronic Funds Withdrawal
         taxpayer and one for the practitioner. in
                                                               Payments made by this method are part of
         order for the department to accept the fed-
                                                               the state submission and are automatically
         eral self-select Pin as an acceptable signa-
                                                               and electronically transferred from taxpayers’
         ture, software developers must display a              bank accounts. The taxpayer must provide
         jurat/disclosure statement, similar to the            the ERo with appropriate bank account
         language on the Pa-8453-C. Taxpayers and              numbers, routing numbers, account types
         ERos must complete Pa-8879-C, Pa e-File               (checking or savings), payment amounts and
         signature authorizations when using the               dates they wish to have payments debited
         federal self-select Pin method and con-               (normally the return/report due date). This
         senting to electronic funds withdrawals.              allows the taxpayer to pay the tax due as
        The department requires ERos to retain                 soon as the returns/reports are processed or
        completed Pa-8879-C for three years after              in the future, should taxpayers want to file
        the due dates of the return/reports or the             early but pay closer to due dates. The ERo

                                                                                                    Page 11
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     should caution taxpayers to ensure their                balance due not paid by the original return
     financial institutions allow electronic funds           due date will be subject to interest and
     withdrawal from designated accounts                     penalty fees.
     before e-filing.
                                                       4.7. RE-TRAnsMIssIOn OF REJECTEd
     Electronic Funds Transfer (EFT)                        sUBMIssIOns
     Payments made through EFT such as aCH
                                                       Taxpayers choosing to resubmit submissions
     debit, aCH credit/debit and certified cashier’s
                                                       rejected by the iRs or the department must correct
     check, are made outside the Fed/state e-File
                                                       and retransmit their electronic return/reports.
     Program. Registration is required to make         Resubmissions will be considered timely filed if the
     payments electronically through EFT. More         electronic postmarks on the resubmissions are on
     information on making payments via EFT can        or before the applicable Pennsylvania corporate
     be found on the department’s website at:          tax due dates. if a rejected submission contains an
     www.revenue.pa.gov.                               electronic funds withdrawal payment, the taxpayer
     Credit/debit Card                                 is required to remit the balance due by the original
                                                       due date of the return/report. The department
     Payments by credit/debit card are made            recommends using one of the payment options
     outside the Fed/state Corporate e-File            outlined in section 4.6 Payment options, to meet
     Program. you can pay your Pennsylvania            due date requirements. linked Fed/state
     taxes with a major credit or debit card. Credit   submissions that are rejected by the iRs may be
     card transactions are charged a 2.49 percent      submitted as an unlinked state stand-alone
     convenience fee ($1 minimum charge), and          submission provided the requirements and
     debit card transaction fees start at $3.95.       specifications provided by the department are met.
     you can use your american Express, discover,
     MasterCard or Visa credit card to pay your        Corporate Error Rejection Codes
     taxes online or by phone. you may also use a
     MasterCard or Visa debit card to make              Rule number        Rule Text
     payments online. select one of these options       X0000-002          incorrect Transmission data.
     to pay using your credit/debit card:
                                                        X0000-003          submission id in the submission
     Internet: Go to official Payments                                     file mismatches submission id in
     Corporation at www.officialpayments.com                               the manifest file.

     Telephone: Call 1-800-2PayTaX                      X0000-004          no submission file found in state
                                                                           submission directory.
     (1-800-272-9829)
                                                        X0000-005          The XMl data has failed schema
     Check and CT-v, PA Corporation Taxes                                  validation.
     Fed/state Payment voucher
                                                        X0000-006          MeF Gateway experiences system
     Payments remitted by check must be                                    error.
     accompanied by the CT-V, Pa Corporation            X0000-007          other state submission.
     Taxes Fed/state Payment Voucher. software
     vendors that will include the voucher in           X0000-008          The namespace declarations in the
                                                                           root element of the return ('Return'
     software must have the voucher approved                               element) must be as follows:The
     by the department.                                                    default namespace shall be set.
     if a state submission containing an elec-          Pa20-s/Pa-65-000   software developer Code (id) con-
     tronic funds withdrawal payment is rejected                           tains an invalid software developer
     by the iRs or department, the taxpayer is                             Code (not an approved developer)
                                                                           based on tax type and tax year.
     still required to remit the balance due by the
     original due date of the return/report. in this    Pa20-s/Pa-65-001   Pa 20-s/Pa-65 return was
                                                                           previously filed through MeF.
     situation, a payment can be remitted
     through EFT, by credit/debit card, or if           Pa20-s/Pa-65-002   Total Corporate net income tax
     the payment is less than $1,000, by check                             Withholding is greater than zero
                                                                           and a payment is not present.
     and accompanying payment voucher. any

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Rule number        Rule Text                               Rule number        Rule Text
Pa20-s/Pa-65-003   net Gain (loss) from Pa schedule        Pa20-s/Pa-65-018   state schema Version must be
                   d, line 5, Column a or b on the                            present.
                   Pa20s/65 are present and
                                                           Pa20-s/Pa-65-019   bank account number and Routing
                   schedules d-1 through iV are not
                                                                              number cannot be the same.
                   included with the filing.
                                                           Pa20-s/Pa-65-020   Tax year in the submission file does
Pa20-s/Pa-65-004   Rent/Royalty net income (loss)
                                                                              not match tax year in the manifest
                   line 6, Column a or b on the
                                                                              file.
                   Pa20s/65 are present and
                   schedule E is not included with         Pa20-s/Pa-65-021   The submission exceeds file size
                   the filing.                                                limit.
Pa20-s/Pa-65-006   invalid Requested Payment date.         Pa65EsR-001        invalid Payment Type. The submis-
                   if a payment is present, the                               sion cannot contain a state
                   Requested Payment date must be                             Payment.
                   present. The Requested payment
                                                           Pa65EsR-002        Missing Payment. The submission
                   date must be a valid date and
                                                                              must contain at least one
                   cannot be greater than 365 days
                                                                              Estimated Payment.
                   after the iRs Time stamp date.
                                                           Pa65EXT-001        invalid payment type. The submis-
Pa20-s/Pa-65-007   Missing required forms for return
                                                                              sion cannot contain Estimated
                   type.
                                                                              payments.
Pa20-s/Pa-65-008   invalid state Ein. if state Ein is
                                                           Pa1120-021         Tax year begin date cannot be
                   present, it must be 7 or 10 digits
                                                                              greater than Tax year End date.
                   in length and only contain numeric
                   characters.                             Pa1120-022         Tax year End date cannot be
                                                                              greater than the submission date.
Pa20-s/Pa-65-009   business name line 1 must be
                   present, left justified and must not    Pa1120-023         Tax year End date cannot be
                   contain any special characters                             greater than 371 days from Tax
                   other than a hyphen or more than                           year begin date.
                   one consecutive space.
Pa20-s/Pa-65-010   if business name line 2 is present,    4.8. EXTEnsIOn OF TIME TO FIlE
                   it must be left justified and cannot
                   contain any special characters         Taxpayers granted an extension to file the federal
                   other than a hyphven or more than      income tax return will automatically be granted an
                   one consecutive space.                 extension to file RCT-101, Pa Corporate net income
Pa20-s/Pa-65-011   Payment amount does not equal          Tax Report. Corporate taxpayers granted a federal
                   values entered in the sub amount       extension must indicate this on Page 1 of the
                   type fields in addenda record.         RCT-101 and include a copy of the federal
Pa20-s/Pa-65-012   only one sub amount type field         extension request with the report.
                   equaling "C" is allowed.
Pa20-s/Pa-65-013   all Financial Transaction payments
                                                          sECTIOn 5. IndIvIdUAl InCOME E-FIlE
                   must include an addenda Record         5.1. ACCEPTEd PEnnsylvAnIA
                   with sub amountType.                        IndIvIdUAl InCOME TAX
Pa20-s/Pa-65-015   invalid Payment Type. a sub                 FORMs And sCHEdUlEs
                   amount type of "P" is not valid
                   unless a Pa-65 Corp is present.
                                                          The following Pennsylvania individual income tax
                                                          forms and schedules may be transmitted
Pa20-s/Pa-65-016   invalid Payment Type. a sub            electronically (refund, equal and balance due, with
                   amount type of "a" is not valid un-    or without payment), and payment must be made
                   less a Pa20-s/Pa-65 or a Pa 65EsR
                   or a REV-276 is present.
                                                          by electronic funds withdrawal, check, money order
                                                          or credit/debit card:
Pa20-s/Pa-65-017   invalid Payment Type. a sub
                   amount type of "C" is not valid         Pa-40               Pennsylvania individual income
                   unless a RCT-101, a RCT-101i or                             Tax Return (includes nonresident
                   an REV-853R is present.                                     and part-year resident returns)

                                                                                                         Page 13
PEnnsylVania FEd/sTaTE E-FilE Handbook                                                      www.revenue.pa.gov

 Pa-40 schedule a      interest (3 schedules or less)         REV-276             Extension of Time to File
 Pa-40 schedule b      dividends (3 schedules or less)        REV-459b            Consent to Transfer, adjust or
                                                                                  Correct Pa Estimated Personal
 Pa-40 schedule C      Profit or loss From business or                            income Tax account
                       Profession (10 schedules or less)
                                                              W-2 RW              Pa W-2 Reconciliation Worksheet
 Pa-40 schedule d      sale, Exchange or disposition of
                       Property (3 schedules or less)
                                                             5.2. sCHEdUlE CHAnGEs
 Pa-40 schedule d-1    Computation of installment sale            And AddITIOns
                       income (6 schedules or less)
                                                             PA-40 schedule B: new lines 9a, 9b, and 9c were
 Pa-40 schedule d-71   sale or Exchange of Property Prior    added to the form.
                       to June 1, 1971
                       (3 schedules or less)                 PA-40 schedule E: new fields were added for:
 Pa-40 schedule E      Rent, Royalty, Patent and             sales Tax license number, if whether or not the
                       Copyright income or loss              rental payments are collected by third party broker,
                       (10 schedules or less)                a property type field column was added; a new field
 Pa-40 schedule F      Farm income and Expenses              was added for whether or not the property was
                       (2 schedules or less)                 located in Pa, new field was added for properties
                                                             that are short-term rentals (less than 30 days), and
 Pa-40 schedule G-l    out-of-state Credit, long Form
                       (43 schedules or less)
                                                             a new line 21 was added to summarize any
                                                             short-term net income or loss.
 Pa-40 schedule J      Estate & Trust income
                                                             PA-40 schedule OC: Five new lines were added
 Pa-40 schedule W-2s   Wage statement summary
                                                             for five new credits: Entertainment Economic
                       (5 schedules or less)
                                                             Enhancement Program Tax Credit, Video Game
 Pa-40 schedule sP     Tax Forgiveness Credit (1 schedule)   Production Tax Credit, Waterfront development Tax
 Pa schedule Rk-1      Resident schedule of                  Credit, Manufacturing investment Tax Credit and
                       shareholder/Partner/beneficiary       Pa Resource Manufacturing Tax Credit.
                       Pass Through income, loss and
                       Credits (100 schedules or less)       PA-40 schedule UE: lines 7, 8, 9, and 10 have
                                                             been expanded or changed to include the information
 Pa schedule nRk-1     nonresident schedule of               that was carried over from the Federal Form 2106
                       shareholder/Partner/beneficiary
                       Pass Through income, loss and         for actual Vehicle Expenses. Under actual office or
                       Credits (100 schedules or less)       Work area Expenses, a new field was added for
                                                             sales Tax license number.
 Pa-40 schedule UE     allowable Employee business
                       Expenses (10 schedules or less)       Employee Business Expenses
 Pa-40 schedule oC     other Credits (3 schedule)            Pa law does not follow federal law for allowable
                                                             employee business expenses. EXAMPlE: Taxpayers
 Pa-40 schedule o      other deductions (1 schedule)
                                                             may deduct 100 percent of their Pa-allowable
 Pa-40 schedule P      529 College savings Program           expenses on the Pa schedule UE. if claiming
                       donations                             expenses on Pa schedule UE, briefly describe the
 Pa-40 schedule T      Gambling and lottery Winnings         occupation or job in the space provided. if a spouse
                       (1 schedule)                          also has expenses, describe his or her occupation or
 REV-1630              Underpayment of Estimated Tax         job on a separate Pa schedule UE.
                       by individuals (1 schedule)
                                                             allowable employee business expenses for Pa
 REV-1630a             Underpayment of Estimated Tax         purposes are similar to, but not the same as,
                       by Farmers (1 schedule)               expenses for federal purposes. Pa law only permits
 Pa-40 schedule 19     sale of a Principal Residence         expenses required to perform the duties of a job or
                       (1 schedule)                          profession.
 Pa-40 schedule nRH    apportionving income by               Allowable Pennsylvania Employee Business
                       nonresident individuals               Expenses Must Be:
                       (10 schedules or less)
                                                                 1. ordinary, customary, and accepted in the
 schedule Pa-40X       amended schedule (1 schedule)                industry or occupation in which you work;

Page 14
PEnnsylVania FEd/sTaTE E-FilE Handbook                                            www.revenue.pa.gov

   2. actually paid while performing the duties of         •   Expenses calculated at federal per-diem
      your employment;                                         rates.
   3. Reasonable in amount and not excessive;          FIlInG TIP: Taxpayers must file a separate Pa
   4. necessary to enable you to properly perform      schedule UE for each employer. spouses may not
      the duties of your employment; and               report joint expenses on a Pa schedule UE, even if
                                                       filing jointly. an incomplete schedule may result in
   5. directly related to performing the duties of
                                                       delays in the processing of a return and/or denial of
      your occupation or employment.
                                                       the expenses.
Taxpayers may not deduct expenses based upon           IMPORTAnT: Meals and entertainment expenses
federal per-diem allowances. you may only deduct       are 100 percent allowable. However, meals while not
those expenses actually paid while performing the      in overnight traveling status (e.g. meals while
duties of your employment.                             working late) and federal per-diem rates for meals
Pennsylvania does not Allow The Following              and incidental expenses are not allowable.
Business Expenses, Even If Allowed for                 CAUTIOn: a taxpayer may be a statutory employee
Federal Purposes:                                      for federal purposes. However, Pa law does not have
   •   Personal, living, or family expenses            a similar provision. as a statutory employee, a
                                                       taxpayer may have to claim their income as
   •   dues to fraternal organizations, professional
                                                       compensation and your expenses on Pa schedule
       societies, Chambers of Commerce, or
                                                       UE. For more information on statutory employees
       recreational club memberships
                                                       see Chapter 7 of the Pa PiT Guide found on the
   •   dues and subscriptions to publications,         department’s website. as an employee, they must
       including trade and professional publications   claim your expenses on Pa schedule UE. if a
   •   Political candidate or campaign contributions   taxpayer receives both a W-2 and 1099-MisC for
                                                       their income that is reported on a federal schedule
   •   Charitable contributions
                                                       C for a statutory employee, the income and
   •   Commuting expenses – driving to and from        expenses must be reported on separate lines of the
       work                                            Pa-40. The income and expenses related to W-2
   •   Cost of meals while working late, unless        wages must be reported on line 1a and line 1b,
       while traveling away from home overnight        respectively, with the expenses being reported on Pa
       on business                                     schedule UE. any income reported to a taxpayer on
                                                       Form 1099-MisC must be included on a Pa-40
   •   Childcare or elderly care expenses
                                                       schedule C, along with the corresponding expenses,
   •   life, disability income and health insurance    and reported on line 4 of the Pa-40.
       premiums
                                                       CAUTIOn: if a taxpayer is a nonresident or
   •   Contributions to deferred compensation          part-year resident who earned income and incurred
       plans or other pension plans                    expenses within and outside Pennsylvania, they
   •   legal fees (except to recover back wages),      must complete Pa schedule nRH.
       fines, penalties and bad debts
                                                       CAUTIOn: The department does not permit the
   •   bribes, kickbacks, or other illegal payments    use of the federal safe harbor deduction for a home
   •   Job hunting or other pursuit of employment      office or work area. actual expenses must be used
       expenses                                        to determine the amount of the deduction.
   •   Malpractice insurance premiums, except          IMPORTAnT: The department has the legal
       when allowed in Part a                          authority to request evidence that your expenses
                                                       are allowable for Pa purposes.
   •   Moving expenses, except when allowed in
       Part E
                                                       5.3. EXClUsIOns TO
   •   Educational expenses, except as allowed in           ElECTROnIC FIlInG
       Part F                                          The following Pennsylvania forms/schedules cannot
   •   Capital expenditures                            be filed electronically through Fed/state e-File:

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