Restaurant owners across Pennsylvania may receive a letter from the PA Department of Revenue that outlines their new two-fold approach to support their industry.
The first part of their initiative is to provide resources to assist restaurant owners with sales tax, recordkeeping, and other tax obligations. The PA Department of Revenue's restaurant industry guidance webpage includes resources on:
- Which eating establishments should collect PA taxes
- Sales tax FAQ for restaraunts
- Recordkeeping
- Staring & closing a business
- & more
In addition to this letter, the PA Department of Revenue will be sending employees to some Pennsylvania restaurants to go over these available resources and review compliance issues that may exist.
"Our goal is to provide assistance to all restaurants and conduct additional outreach with some of those that may have outstanding issues," said the PA Department of Revenue.
The second part of their initiative is to ease the burden on compliant businesses. In 2022, if a restaurant is selected for an audit, the auditor will conduct a one-month review. If the company meets the requirements listed below, then a limited scope audit (looking at one year) will be conducted instead of a traditional audit (looking at three years). The 2022 Restaraunt Audit Handout includes information what to expect and the process.
Requirements for a Limited-Scope Audit
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All returns, including sales tax and employer withholding returns have been filed
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Outstanding tax liabilities have been addressed with the department
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Records necessary to conduct the audit were maintained and provided to the department’s auditors for examination. The records expected to be provided include:
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Transactional Sales Receipts
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Credit Card Slips
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Voided or Cancelled Sale Documentation
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Exemption Certificates
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Bank Statements
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Daily Sales Reports
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Monthly Sales Reports
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Monthly Merchant Credit Card Statements
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Federal Form (FF) 1099-K
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Monthly Statements from 3rd Party Delivery Companies (e.g., Grubhub, DoorDash, etc.)
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Records must not reveal any material underreporting of sales, sales tax collected, employee wages, or employee withholding. There must also be no evidence of sales suppression such as missing, reindexed, or altered sales receipts.
For questions or assistance, please call 717-569-2900 or complete the form below.
