I am so glad that I moved out of PA and back to DE. I never actually lived in PA for an entire tax year and never even heard of such a thing in DE. Years ago, during the time I lived in PA, I received mail from the "Keystone" group. I instantly thought "Why does this healthcare insurance provider want me to send them all of my private information and then possibly money? I thought it was a scam...A company you've never heard of is saying that you need to file tax forms with them, give them sensitive information about yourself, and possibly money.
Sounded like a scam to me but apparently, it's not. Now, I received a collection letter from the "Keystone" for money I don't even owe. However, I didn't file the forms... all they need is to find someone who didn't file this form and even if it turns out that the person doesn't owe the money, they'll owe the "Keystone" (I think?) for having to have this organization/entity (what do you call these people? Is it the government?) process this form (their "fee") since you (me) didn't. If I would've just filed the forms (if I had known that I had to), they would've seen what part of my income was earned as a PA resident and that I was appropriately paid up.
When using turbo tax, I had no clue that there were "local earned income" tax forms that I a) needed to file and b) was 100% responsible for. Maybe it's naïvety and maybe it's my fault for thinking that taxes really are that easy (especially when I was dealing with a new state that I had no previous experience filing taxes with).
I live in DE again. I'll probably use TurboTax again because I won't have this sort of issue (at least not anytime soon). However, if and when I ever move to a different state, I'll hire someone to do my taxes that year.
In conclusion, you might not owe them the amount they stated was deliquent but you'll probably still owe them at least the $60 fee assessed for them doing whatever it is they do because we didn't file the forms.