I received a delinquent notice from Keystone for unpaid EIT taxes from over three years ago. Why did Keystone wait this long to notify me of unpaid taxes?
The Pennsylvania Department of Revenues has three years from the end of the tax year to audit state tax returns. Only at the end of that three-year period does the state release the returns to Keystone. Then, Keystone compares the state tax return files against its returns from that year to identify discrepancies in local EIT filings. The penalty interest rates for delinquent EIT are codified in state legislation (Chapter 7 of Act 511). Other than deciding whether to levy or not levy an EIT and what the rate should be, Pennsylvania municipalities have no ability to directly dictate the policies that the tax collectors must follow.