Tax Law (Questions About Taxes)/State Tax



I'm in the military reserves and in 2009 was living in Pennsylvania. At the end of 2009 I was activated for a couple of years in Virginia. During that time I bought a house and when I was de-activated stayed in Virginia.

When it came time to do my 2010 taxes I saw that they were still taking out for PA. I looked at both VA and PA and saw that I wouldn't owe money in either state. So I filled a resident PA return.

Last November I got a threatening "Failure to File Notice" letter from the "Lancaster County Tax Collection Bureau". Saying that they have not received my LCTCB Local Earned Income Tax Return for 2010. They included the form and it's 1.2 percent with an additional 1% for every month late after April 2010. My income in 2010 was only 33K and this would still end up being thousands of dollars!

I don't know much about taxes and didn't even know I had to file local taxes? I was renting a room and going to school when I was activated. The letter laid out all the criminal penalties and said that "You will receive no further notice before prosecution.".

I've called them a couple of times, but they just say that they receive a list from the state of who's filed returns and I have to get my name off the list. They don't know how to do that.

Can I file an ammended 2010 PA return and VA return? My W2 says PA, do I need to put that income on the ammended 2010 return?

thanks alot for your help,



Thanks for your question.

You can file an amended PA return and file a VA return. However, this may not solve the county tax issue.  I suggest you get in touch with a local CPA or enrolled agent to help you sort this out.

Hope this helps.

John Stancil, CPA

---------- FOLLOW-UP ----------

QUESTION: Thanks John.

When I file my ammended PA return should I put any income on it. The instructions indicate that only income from PA sources should be put down. However my W2 says PA. Should I put zero on everything? Line 13 asks for the total PA tax witheld from my W2.

You PA return should include any income earned while working in PA or while you were a resident of PA.  I failed to mention earlier you will probably need to file as a part-year resident.  For some states, that is a different return. For others, it is just an extra schedule.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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