By Dan A. Schulder, CPA, JD

The state Board of Finance and Revenue has provided clarification regarding the reduced time for tax appeals due to the enactment of Act 43 of 2017.

The period for Pennsylvania tax appeals has been reduced from 90 days to 60 days, effective Dec. 29, 2017. Thus, starting on Dec. 29, 2017, taxpayers have 60 days from the date of the notice of assessment or notice of adjustment to file their petitions for reassessment and petitions for redetermination with the Board of Appeals; and will have 60 days to file petitions for review with the Board of Finance and Revenue in connection with the issuance of decisions by the Board of Appeals. This rule will apply even if the notice of assessment, notice of adjustment, or decision states that there is a 90-day appeal deadline.

Because this is a jurisdictional matter and a statute of repose, it has been unclear whether or not the administrative boards and the Attorney General’s Office would allow taxpayers to use the full 90-day period on the notices that were issued before the effective date. The Department of Revenue, Department of Treasury, and the Attorney General’s Office needed to agree that if the notice gave more time, the appeal would be allowed to be filed within that time (i.e., 90 days from the notice of assessment or determination).

However, on Dec. 7, 2017, the state treasurer issued a statement clearly indicating that the new statute must be followed. The state treasurer further indicted that specific appeal periods for special tax types were not affected by this change.

As a result, no matter what the notice indicates regarding the timeframe for appeal, taxpayers should file their appeals within 60 days of the assessment or determination as provided in Act 43 to ensure that there is not a jurisdictional defect with their claims.

Dan A. Schulder, CPA, JD, is a member at Cozen O’Connor in Harrisburg, Pa., and a past chair of PICPA’s State Taxation Committee. He can be reached at dschulder@cozen.com.