Requirements Concerning Returns, Notices, Records and Statements

(a) The department may prescribe by regulation for the keeping of records, the content and form of returns, declarations, statements and other documents and the filing of copies of Federal income tax returns and determinations. The department may require any person, by regulation or notice served upon such person, to make such returns, render such statements, or keep such records, as the department may deem sufficient to show whether or not such person is liable for tax under this article.

(b) (1) When required by regulations prescribed by the department:

(i) Any person required under the authority of this article to make a return, declaration, statement, or other document shall include in such return, declaration, statement or other document such identifying number as may be prescribed for securing proper identification of such person.

(ii) Any person with respect to whom a return, declaration, statement, or other document is required under the authority of this article to make a return, declaration, statement, or other document with respect to another person, shall request from such other person, and shall include in any such return, declaration, statement, or other document, such identifying number as may be prescribed for securing proper identification of such other person.

(2) For purposes of this section, the department is authorized to require such information as may be necessary to assign an identifying number to any person.

(c) (1) Every partnership, estate or trust having a resident partner or a resident beneficiary or every partnership, estate or trust having any income derived from sources within this Commonwealth shall make a return for the taxable year setting forth all items of income, loss and deduction, and such other pertinent information as the department may require. Such return shall be filed on or before the fifteenth day of the fourth month following the close of each taxable year. For purposes of this subsection, "taxable year" means year or period which would be a taxable year of the partnership if it were subject to tax under this article.

(2) Every partnership, estate or trust required to file a return under paragraph (1) shall also file with the department a true copy of the income tax return filed with the Federal Government at the time the return required under paragraph (1) is filed.

(3) Every partnership, estate or trust required to file a return under paragraph (1) for any taxable year shall, on or before the day the return is filed, furnish to each partner or nominee for another person or to each beneficiary to whom the income or gains of the estate or trust is taxable a written statement of the partner's pro rata share of each item on the partnership return or the beneficiary's pro rata share of income on the estate or trust return in a form required by the department.

(4) A partnership required to file a return under paragraph (1) for a taxable year shall, on or before the day the return is filed, furnish to each partner classified as a corporation, partnership or disregarded entity for Federal income tax purposes a copy of the Pennsylvania income tax form reporting corporate partner apportioned business income or loss. A reporting partnership shall not be required to provide a partner who is either a partnership or disregarded entity a copy of this form if the reporting partnership is able to determine that an entity classified as a corporation for Federal income tax purposes is not an indirect owner of the reporting partnership.

(d) The department may prescribe regulations requiring returns of information to be made and filed on or before February 28 of each year as to the payment or crediting in any calendar year of amounts of ten dollars ($10) or more to any taxpayer. Such returns may be required of any person, including lessees or mortgagors of real or personal property, fiduciaries, employers and all officers and employes of this Commonwealth, or of any municipal corporation or political subdivision of this Commonwealth having the control, receipt, custody, disposal or payment of interest, rents, salaries, wages, premiums, annuities, compensations, remunerations, emoluments or other fixed or determinable gains, profits or income, except interest coupons payable to bearer. A duplicate of the statement as to tax withheld on compensation required to be furnished by an employer to an employe, shall constitute the return of information required to be made under this section with respect to such compensation.

(e) Any person who is required to make a form W-2G return to the Secretary of the Treasury of the United States in regard to taxable gambling or lottery winnings from sources within this Commonwealth shall file a copy of the form with the department by March 1 of each year or, if filed electronically, by March 31 of each year.

(f) The following apply:

(1) Any person who:

(i) makes payments of Pennsylvania source income that fall within any of the eight classes of income enumerated in section 303(a);

(ii) makes such payments to an individual, an entity treated as a partnership for tax purposes or a single member limited liability company; and

(iii) is required to make a form 1099-MISC or 1099-NEC return to the Secretary of the Treasury of the United States with respect to such payments, shall file a copy of such form 1099-MISC or 1099-NEC with the department on the due date of the form 1099-MISC or 1099-NEC. If the form 1099-MISC or 1099-NEC filed by a payor with the Secretary of the Treasury of the United States does not include the State income and State tax withheld as required under section 316.2, the payor shall update the copies of form 1099-MISC or 1099-NEC to be provided pursuant to this section to reflect such information prior to filing it with the department and sending it to the payee.

((1) amended June 30, 2021, P.L.124, No.25)

(2) If the payor is required to perform electronic filing for Pennsylvania employer withholding purposes, the form 1099-MISC or 1099-NEC shall be filed electronically with the department. ((2) amended June 30, 2021, P.L.124, No.25)

(3) As used in this subsection, the following words and phrases shall have the meanings given to them in this paragraph unless the context clearly indicates otherwise: "Payee." The person receiving the payments subject to withholding under this subsection. "Payments." The term does not include a partner or shareholder's distributive share of income from a partnership or Pennsylvania S corporation. "Payor." The person required to withhold under this subsection.

((f) amended Oct. 30, 2017, P.L.672, No.43)

(g) (1) Every estate, trust, Pennsylvania S corporation or partnership, other than a publicly traded partnership, shall maintain at the end of the entity's taxable year an accurate list of partners, members, beneficiaries or shareholders. The list shall include the name, current address and tax identification number of all existing partners, members, beneficiaries or shareholders and of all partners, members, beneficiaries or shareholders who were admitted or who withdrew during the taxable year, including the date of withdrawal and admittance.

(2) If the entity under paragraph (1) does not maintain an accurate list as required, the tax, penalty and interest with respect to the entity shall be considered the tax, penalty and interest of the partnership, estate, trust or Pennsylvania S corporation and of the general partner, tax matters partner, corporate officer or trustee.

(335 amended July 9, 2013, P.L.270, No.52) Compiler's Note: Section 42(2) of Act 52 of 2013, which amended section 335, provided that the amendment shall apply to tax years beginning after December 31, 2013. Compiler's Note: Section 33(7) of Act 46 of 2003, which amended section 335, provided that the amendment shall apply to taxable years beginning after December 31, 2003.