Annually, the state shares the information on the state returns with Keystone. Keystone is responsible for local tax filing/collection. There is a lag, so the State may have just sent 2015/2016 to Keystone.
When the State sends earned income information from residents State income tax returns, Keystone will then compare the amount to resident’s local income tax return they filed for that year. If Keystone has nothing because no annual return was filed, Keystone will generate a notice.
My best advice to residents who get letters from keystone –
(1) speak to keystone
(2) file an annual return with Keystone for that particular year.
If no tax is due, because withholding’s satisfied the local 1 percent tax, there’s a good chance penalty and interest could possibly be waived by Keystone. If tax money is due, penalty and interest will be due too.
Here is the link to Keystone collections group website for filing instructions:
Here is a link to Keystone Collections Group Help section to answer more specific question:
If you are sure that you filed for the year in question, they should check to make sure the PSD code on their W-2 matches Council Rock’s. The PSD (political sub division) code for Council Rock is 090603. This code can be verified for accuracy at DCED PSD . They would then need to update the correct PSD code with their employer.
I hope that this helps!
Vincent J. Deon Tax Collector
215-357-1343 | VincentDeon@twptax.com