I will soon be introducing legislation which amends the Tax Reform Code of 1971 to remove a 3% penalty (up to $500) for those who pay by check if their tax bill is $15,000 or more, even if the taxpayer pays their tax liability on time and in full. 
 
This issue was brought to my attention by a constituent who sold a property and was assessed a $500 fee to the PA Department of Revenue for paying his capital gains tax with a check. This constituent was a senior citizen who does not use the computer to make financial transactions and was unaware of the electronic payment requirement. What was particularly galling was that this individual had just paid his tax liability to the IRS with a check with no penalty.
 
There are multiple reasons people use checks to pay their bills. Many people prefer to pay their bills by check because it is a conventional and well-established method of making payments. Others prefer to make payments by check because they do not have the electronic means or technical ability to make electronic payments. Still others prefer the enhanced security measures of checks, and in this day of sophisticated cyber-theft, do not want their sensitive financial information transmitted across the internet.
 
In short, why is the state of Pennsylvania penalizing law-abiding citizens for paying their tax liability on time and in full? This is not right and needs to change.
 
This bill will not prevent the Department of Revenue from keeping the current electronic payment system in place for taxpayers who prefer to use this system, however it will remove the penalty for individuals who pay with a check.
 
Law-abiding citizens should not be penalized for paying their tax liability. Please join me in co-sponsoring this important legislation to remove this offensive and unnecessary penalty.   
 
 

Statutes/Laws affected:
Printer's No. 1426 (Apr 21, 2025): P.L.6, No.2, P.L.343, No.176