OUR THOUGHTS ON:

Pennsylvania Changes Policy Concerning Financial Security for Court Appeals

State and Local Tax

By Jennifer Koehler

The Pennsylvania Department of Revenue (“Department”) issued Tax Bulletin 2011-01 concerning new procedures for filing security for court appeals. As of May 2, 2011, if a taxpayer files a petition for review of a Board of Finance and Revenue decision with the Pennsylvania Commonwealth Court (“Court”), the taxpayer must also submit a current financial statement to the Board of Appeals. The Department will review the financial statements to ensure that ultimate collection of any unpaid amount contested is not in jeopardy.

When an appeal is filed with the Court, taxpayers will receive an acknowledgement letter from the Pennsylvania Office of the Attorney General. This letter will include a request that the taxpayer provide a current financial statement within 30 days of filing the appeal.

To comply with the request, taxpayers should submit a copy of the most recent financial statements, including an income statement, a balance sheet and any notes to the statements. Alternatively, a taxpayer can submit a copy of the most recent federal tax return, including Schedule L and applicable notes. Individuals may be required to submit a personal balance sheet.

The Department will review the submitted documents and notify the taxpayer as to whether or not collection of the unpaid amount under appeal is in jeopardy. If the Department determines that the unpaid amount is not in jeopardy, the Department will not pursue collection action, including the filing of a lien, pending resolution of the appeal even if the taxpayer has not filed the “appropriate security” with the Prothonotary of the Pennsylvania Commonwealth Court (“Prothonotary”). If the Department intends to file a lien or pursue collection action, the taxpayer will be allowed 15 days to file “appropriate security” with the Prothonotary.

For further information, please contact Jennifer Koehler.

Visit our website if you'd like more information on Schneider Downs State and Local Tax Advisory Group.

 

 

Schneider Downs provides accountingtax, wealth management, technology and business advisory services through innovative thought leaders who deliver the expertise to meet the individual needs of each client. Our offices are located in Pittsburgh, PA and Columbus, OH. 

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax-related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

comments