Philadelphia Taxpayers Must Pay Electronically for Tax Year 2017 if BIRT or NPT Return is Over $5000

If you operate a business, work or live in the city of Philadelphia and you owe more than $5,000 for the Business Income and Receipts Tax (BIRT) or the Net Profits Tax (NPT), you must pay those taxes electronically for tax year 2017 starting with payments due in April 2018.

The NPT is imposed on the net profits from the operation of trade, business, profession, enterprise, or other activity by: Philadelphia residents even if their business is conducted outside Philadelphia and non-residents who conduct business in Philadelphia.

Every individual, partnership, association, Limited Liability Corporation and corporation engaged in a business, profession, or other activity for profit within the city of Philadelphia must file a BIRT. This includes: (1) those engaged in commercial or residential real estate rental activity, (2) estate, trusts or non-profits engaged in any for profit business or activity within the city, (3) those who maintain a commercial activity license but do not actively engage in a business.

Taxpayers can make electronic payments through:

ONLINE METHODS

  •  eCheck – FREE
  • credit and debit cards

AUTOMATIC CLEARING HOUSE PAYMENT

  • FREE but requires enrollment

PROFESSIONAL OFF-THE-SHELF SOFTWARE PACKAGES

It’s easy to make the payment electronically.

  1.  File your 2017 return online
  2. To pay, visit www.phila.gov/pay – Click either “Business Income & Receipts” or “Net Profits Tax” and follow the prompts
  3. What You Will Need
    *Federal entity number (EIN)
    *Social security number (SSN)
    *Philadelphia Tax Account number &
    * Your city of Philadelphia Department of Revenue PIN
    *The routing number of your financial institution and your account number if paying by eCheck.

Questions? Contact revenue@phila.gov or call 215.686.6600.

If you need other guidance on this matter, call your tax professional at Isdaner & Company 610.668.4200.