Pennsylvania Unemployment Compensation
Tax Clearance Programs
Office of UC Tax Services
Commonwealth agencies require that applicants comply with state tax laws in order to obtain clearance for:
- Liquor licenses
- Sales, Use and Hotel Occupancy licenses
- Small Games of Chance licenses
- Corporate Clearance Certificates
- State contracts, loans or grants (Contractor Responsibility)
- Keystone Opportunity Zone (KOZ) approvals, and
- Gaming licenses.
The Office of Unemployment Compensation Tax Services (UCTS) is responsible for issuing clearances on behalf of the Department of Labor & Industry (L&I). Most tax clearance procedures are automatic, although the corporate clearance procedure requires written certification from the applicant. Clearances can only be issued if the enterprise is in compliance with the Pennsylvania UC Law. An applicant is considered to be in compliance if:
- all reports have been filed and if all liabilities have been paid,
- subject to an approved payment plan, or
- subject to a pending appeal.
When an enterprise is not in compliance with the UC Law, the applicant should contact their local L&I Field Accounting Service (FAS) office or UCTS’s e-Government Unit to resolve the matter.
Questions regarding UC tax clearance programs or procedures may be referred to 1-866-403-6163, option 4, or to the e-Government Unit at 717-787-6637.
Liquor License Clearances
The Pennsylvania Liquor Control Board (LCB) requires that all applicants who apply for the revalidation, renewal or transfer of a liquor license must be compliant with state taxing authorities. The applicants must complete a tax certification form when validating, renewing or transferring a license. On this document, the applicant must provide all of their tax identification numbers and certify that all state tax reports have been filed and paid in full, or are under appeal or a payment plan. The LCB will then verify the applicant’s tax status with L&I. If L&I determines that the applicant is not in compliance with the Law, a letter is sent to the applicant indicating the deficiency and advising him to contact the local FAS office to resolve the matter. The applicant will not be cleared for revalidation, renewal or transfer until the delinquency is resolved.
Sales, Use and Hotel Occupancy Tax License Clearances
The Department of Revenue (DOR) requires that all applicants for either a new sales and use license or current licensees applying for a renewal of their license be compliant with state tax laws. DOR will verify the applicant’s tax status with L&I. If the applicant is delinquent with L&I, a letter will be sent to the taxpayer to notify them of the deficiency and to advise them to contact their local FAS office to resolve the problem. The applicant will not be cleared for a new license or a renewal of a current license until the delinquency is resolved.
Small Games of Chance License Clearances
DOR requires that all applicants for either a new small games of chance license or current licensees applying for a renewal of their license be compliant with state tax laws. DOR will verify the applicant’s tax status with L&I. If the applicant is delinquent with L&I, a letter will be sent to the taxpayer to notify them of the deficiency and to advise them to contact their local FAS office to resolve the problem. The applicant will not be cleared for a new license or a renewal of a current license until the delinquency is resolved.
Corporate Clearance and Bulk Sales Clearances
The Department of State (DOS) requires tax clearances when an entity seeks to dissolve, liquidate or merge with other entities. A written clearance must be obtained from L&I and DOR before the transaction with DOS will be approved. To obtain this clearance certificate, Form REV-181, Application for Tax Clearance Certificate, must be completed. The application can be downloaded from the DOR Website at www.revenue.state.pa.us
or by calling 717-783-6052. Instructions are located at the bottom of page 3 of the application and indicate that the applicant should send the original form to DOR and a copy to L&I.
The UC Law requires that any entity selling in bulk, fifty-one percent or more of their assets, including stock, fixtures, machinery, equipment or realty, must provide L&I with a ten-day notice of the sale. This notice can be sent in letter form to: Department of Labor & Industry, e-Government Unit, Room 916, Seventh and Forster Streets, Harrisburg, PA, 17121. In some instances, the buyer of the assets will require the seller to obtain a bulk sale clearance certificate from L&I, which verifies that all tax liabilities have been paid. A bulk sale clearance certificate can be requested using the Application for Tax Clearance Certificate, Form REV-181.
Contractor Responsibility Clearances
The Governor’s Management Directive Number 215.9 states all entities that wish to obtain any state monies through contracts, loans or grants must be compliant with state taxing authorities. If unpaid UC tax liabilities exist, the vendor is directed to call the e-Government Unit to resolve the issue before the contract or payment is processed. When the matter is resolved, a Contractor Responsibility clearance certificate is issued to the licensee to provide to the processing agency.
Keystone Opportunity Zone (KOZ) Program Clearances
The Keystone Opportunity Zone Program (KOZ) was signed into legislation on October 6, 1998 (Act 92 of 1998). A KOZ is an area defined by the Governor’s Office and the Department of Community and Economic Development for development. An individual or business that either lives or does business in these defined areas can apply for a KOZ grant. One of the requirements for grant approval is that the applicant must be in compliance for state taxes.
Pennsylvania Gaming License Clearances
The Pennsylvania Gaming Control Board (PGCB) requires that all applicants for a gaming license be compliant with state tax laws. Gaming licenses will be renewed yearly. Completion of an Application for Tax Clearance Review is a condition of the application for a gaming license and authorizes L&I and DOR to review the tax records of the person(s) and or entity(s) as part of the licensing evaluation by PGCB. Under the gaming regulations, an applicant, licensee or any associate of the applicant or licensee may be investigated as appropriate.