Estimated Payments Survey

The City of Philadelphia is exploring ways to make filing and paying the Business Income & Receipts Tax easier. One idea we heard was to allow businesses to make their estimated payments for the upcoming year in quarterly payments, like they do to the IRS and PA Department of Revenue.

The City conceptually supports moving to quarterly estimated payments to bring Philadelphia in line with other tax agencies, but switching all businesses to quarterly payments at once would create a one-time budget gap of $180 million and that is not feasible.

There are some options that are both legally permissible and have a more manageable fiscal impact. We want to hear from businesses and tax professionals about which of these options would be best for them.

Question Title

* 1. Please rank the following options (1 = most preferred choice, 3 = least preferred choice):

Allow new businesses to split their estimated payment into quarterly payments the first year they file. After the first year, a single estimated payment would be due on April 15th

Allow new businesses to make no estimated payment in their first year of filing. Businesses would pay their second year of taxes and make a single estimated payment due on April 15th the second year they file

Allow new businesses to make no estimated payment in their first year of filing. Businesses would pay their second year of taxes on April 15th and make quarterly estimated payments in the second year they file. The third year of filing would have a single estimated payment due on April 15th

Question Title

* 2. I am a:

Tax Professional (CPA, Tax Attorney, Accountant, Tax Preparer…)

Business Owner/CEO

Chief Financial Officer or other role with in-house responsibility for local tax filing

New Business Owner (planning to open or opened within the past year)

Other (please specify)