The Board of Appeals is responsible for reviewing interactions between the Pennsylvania Department of Revenue (DOR) and taxpayers in the State. Taxpayers who wish to appeal a tax assessment or request a refund on taxes already paid must do so by filing a petition with the Board of Appeals. This article will review these situations and the issue resolution process.
Appealing Additional Tax Owed
Typically, taxpayers receive an initial billing notice that summarizes their tax account and usually includes additional tax owed. Taxpayers who wish to appeal this determination must do so by filing a petition within the time frame specified in the notice (generally, 30 days). If no action is taken within that period, the DOR will determine what the taxpayer owes and provide this information in a statement called a “Notice of Assessment.”
Requesting Tax Refunds
Another action a taxpayer can take is to make a refund claim for an amount paid to satisfy an incorrect notice or that is the result of an amended tax return. Taxpayers can file amended tax returns when they need to correct or update information provided on a previously filed tax return. The DOR is technically not required to act upon the amended return unless the taxpayer files a petition with the Board of Appeals to force the state to review the taxpayer’s refund claim request.
Issue Resolution Process
In some cases, taxpayers may be able to resolve issues with the DOR before they rise to the level of an official appeal. Pennsylvania taxpayers can access their tax accounts through myPath, the state’s online tax hub. Taxpayers are able to pull letters, notice of accounts or assessments, and provide information requested by the DOR through this system. (see related post on making tax payments on myPath)
If a tax matter cannot be resolved through myPath, the taxpayer can then pursue the matter through the Pennsylvania Board of Appeals by filing a petition in a timely manner. The petition can be submitted electronically through the Online Petition Center or through the mail with the use of a physical copy of Form REV-65. Please be aware that the Board of Appeals does not accept petitions by email or fax.
The petition can be completed and filed prior to having all of the documentation to prove the case. The taxpayer will then have the opportunity to gather the appropriate documents to prove their claims. The hearings are scheduled by the petitioner and are all held virtually. The taxpayer will receive an invitation to join the hearing and plead their case. Taxpayers can file a petition and appear on their own behalf or be represented by someone with the required technical knowledge. A representative of the taxpayer must be authorized in writing to represent the petitioner before the Board of Appeals. The PA Power of Attorney form must be faxed in advance and can take up to five days to process.
Importance of Timely Responses
It is crucial to carefully monitor any notices of assessment in order to file a petition promptly within the specified dates, and there is a three-year time limit to file an amended return before the statute of limitations expires. However, there are exceptions to these time limits in certain circumstances. If there is tax owed and the notice of assessment is not addressed, a lien may be filed against the taxpayer. In that case, the taxpayer must pay the tax before having an opportunity to challenge the notice of assessment. A petition for a refund of money paid regarding an assessment must be filed within six months of the original payment of the tax. Taxpayers are encouraged to provide copies of any tax correspondence received from the DOR to their GYF tax executive as soon as possible so that we can act swiftly and ensure that these deadlines are not missed.
If you need assistance with a Pennsylvania tax notice matter or refund request, please reach out to your GYF Executive or contact our office at 412-338-9300. The Pennsylvania DOR has provided a video overview of the Board of Appeals to help taxpayers with the petition filing process.
Grace Gardill assisted with the research and writing of this article. Grace will be a senior at the University of Pittsburgh this fall. She is currently working as a summer intern in GYF’s Tax Services Group.
