Click here to view the entire SMC Government Newsletter, from which this is excerpted
Action Steps Taken by SMC and Members on Priority Issues; Follow-up with the Pennsylvania Department of Revenue (PADoR)
As of June 13, SMC and members has taken steps toward a solution for one of our four top priorities – Small business problems with random, unsubstantiated tax notices from the PA Department of Revenue.
This was a new issue to ALL lawmakers and several promised to look into the issue for SMC. Rep. Jake Wheatley introduced SMC to John Kaschak, Deputy Secretary for Taxation, PADoR. Eileen Anderson met with Kaschak in Harrisburg on June 6, and Don Johnston, Partner, and Mike Weber, Manager, at Grossman Yanak & Ford LLP, participated by conference call to discuss the tax notices and related problems.
The following is a brief summary by Don Johnston of the issues discussed with Deputy Secretary Kaschak:
Computer systems
The fact that PADoR sent out tax notices requesting payment when their computer systems were wrong is a problem. How many taxpayers paid the notices and paid too much in tax? How can that many notices go out without the PADoR ensuring that they are accurate?
Tax notice and demand for payment
It is not unusual for an accounting firm to receive 1-3 tax notices from PA in a week. Generally 95% of these notices are wrong, and the firm has to convince the PADoR that the originally-filed returns are correct. It is a big hassle and a waste of money for the business owner. Why are so many incorrect notices being issued?
Appeals process
It is very difficult for an accounting firm to resolve issues when there are differences between the firm’s calculations and the PADoR’s calculations. A simple phone call with someone who understands the tax law and who can make decisions would be helpful and would cut down on the need to go to appeals.
Last year Grossman Yanak & Ford LLP had to take something to appeals; it took more than a year to get on the docket. Once in appeals, the PADoR accepted their findings without the firm presenting any evidence or providing any explanation of the situation. Why was the firm asked to go to a hearing when the outcome was already determined? This entire process could have been avoided with better communications from the PADoR.
While Dep. Secretary Kaschak was familiar with some of the issues, Johnston uncovered a new issue regarding the time-consuming refund process. Johnston will follow-up with hard-copy to illustrate the problem and Kaschak will share it with the Department. Deputy Secretary Kaschak was very thankful for the meeting and very willing to have an ongoing dialog with SMC.
Please contact Don Johnston if your business has experienced these issue and you have questions or would like assistance with successful resolution.
