About Us

Voluntary Compliance and Taxpayer Confidentiality

Pennsylvania’s tax system relies on taxpayers accurately and timely reporting income, filing tax returns, and paying taxes owed under the law. This is the concept of voluntary compliance. Pennsylvanians work hard to meet their tax obligations, and the Department of Revenue is committed to helping taxpayers understand the filing process and access available deductions and credits.

Protecting taxpayer information is essential to maintaining public trust in the tax system. It is critical that taxpayer information remain confidential. Information provided to the Department of Revenue is protected by state and federal confidentiality laws and is only disclosed as permitted by law for authorized tax administration purposes. The Commonwealth’s Fiscal Code outlines the treatment of confidential information received by the Department of Revenue.

Under Pennsylvania law, the Department of Revenue treats taxpayer information as confidential, including information received through:

  • Tax returns
  • Reports
  • Correspondence
  • Claims
  • Investigations
  • Hearings
  • Certifications
  • Verifications

The Department of Revenue also follows the federal guidelines as outlined in Internal Revenue Service Publication (IRS) 1075 [PDF] to protect tax information received from the IRS and other government agencies.

Tax Return Information in Statistical Reports & Revenue Reporting

Aggregate tax data may be released publicly when it does not identify individual taxpayers or disclose confidential or taxpayer information. The Department of Revenue generally follows the guidelines outlined in Internal Revenue Service Publication 1075 [PDF], for tabulation of tax data to be released outside the agency.

This type of reporting is important for multiple uses — tax administration, policy development, revenue forecasting, scoring of legislation, and an understanding of the overall fiscal state of the Commonwealth.

Importance of Filing Accurately & Timely

Filing tax returns accurately and on time is important for several reasons. For example, many Pennsylvania taxpayers can access deductions and credits that can greatly reduce — or even fully eliminate — their Pennsylvania personal income tax. Every year, there are Pennsylvanians who miss out on this tax relief simply because they do not file a tax return with the Department of Revenue.

Additionally, penalties and interest are imposed when taxpayers fail to file returns, file returns late, or do not pay tax that is due timely.

The Department of Revenue encourages all eligible taxpayers to file their state and federal tax returns each year. Information collected from all returns is confidential and will not be shared outside of the Department except for official purposes. Failure to timely file tax returns can result in fines, criminal penalties, and can negatively impact immigration cases.