Local tax???

Question

I lived in CT during the entire year of 2005, however, i never changed my drivers license. I just got a letter from the local tax bureau in PA where i used to live stating i never filed a 2005 or 2006 return, and that i am liable for 1% local tax during this time. I cannot believe that i should have to pay local tax when i did not work or live there! any info or help is appreciated

Answer 1

I do a lot of PA tax. If you prove to them that you neither lived nor worked in the state, they will cease and desist. From what I recall, there is a box to mark on the reply letter that says "check here if you neither lived nor worked in PA". If that box no longer exists (been a while since I worked with a PA notice like this), then you need to write a breif letter explaining the situation, and send it with proof, such as your W2's for that year and a lease or mortgage agreement. (There are plenty of other documents that would work as well). Send COPIES of these documents, and you should be OK. If you had a tax professional do your return for those years, they should be able to offer some assistance as well. If it was a national firm, just go to your local office now and they'll get you hooked up. If it wasn't give them a call anyway, as they will be familiar with the local laws.
Hope this helps!

Answer 2

As others have noted, you have to show PA that you did not live there.

However, you also owe tax on your car to the town or city where you lived in CT. Although most places tax real estate, CT also required an annual payment to the town or city of a percentage of the value of a car. They use CT DMV records of car registrations to learn what cars willing to residents and send bills. If you did not transfer your car registration from PA to CT, they would not have known to bill you and you owe them money.

Answer 3

Just notify them that you moved out of state and are not subject to PA taxes any more. Copies of your utility bills from CT should suffice as proof of CT residence.

Now get the DL changed over!

Answer 4

I imagine that you used to live/work in PA and you filed taxes to the local division, so they would assume that you should continue to file unless otherwise notified. You must send proof of other residence, otherwise they will require you to file. (I live in PA and I am familiar with the local tax code.)