We provide here a written summary of answers provided by the Department of Revenue to the committee at periodic question and answer sessions. These documents are classified as Revenue information issued for informational purposes only for the convenience of PICPA members. Pursuant to 61 Pa. Code Section 3.4, these documents should not be relied upon for any purpose or used in tax appeals. Taxpayers requiring a binding opinion on a specific fact situation may request a written letter ruling under 61 Pa. Code Section 3.3.
Q&A with the Pennsylvania Department of Revenue
Scenario: Apportioning a taxable loss to Pa.
ABC Corp. is a startup biotech company that conducts R&D activities (property and payroll) in Pa., NJ and NY. During 2015, ABC Corp. had no receipts of any type and incurred a Pa. taxable loss in the amount of $1 million. ABC Corp. was entitled to apportion its taxable loss to Pa., NJ and NY.
As ABC Corp. had no sales anywhere, how would the corporation apportion its loss to Pa.?
Since the income sourced to Pa. is based solely on sales and there are no sales in Pa. none of the loss is sourced to Pa.