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
How should a taxpayer handle a notice of assessment for a year in which the appeal deadline has passed regarding the former Capital Stock/Foreign Franchise Tax (CSFT)?
How should a taxpayer handle a notice of assessment for a year in which the appeal deadline has passed regarding the former Capital Stock/Foreign Franchise Tax (CSFT), but the increase in tax is due to a change in prior year book income that is under appeal? The additional tax should not be due unless the taxpayer is unsuccessful in its appeal for the prior year. Would a lien be filed for the current year?
If the appeal deadline has passed for the current year and the prior appeal has not been resolved, their recourse would be to pay the increase in tax and petition for refund. There would be no additional lien imposed except for the increase in tax, unless the prior appeal is not determined before the current year goes through all the collection steps. If the appeal is decided in the taxpayers favor and the statute of limitations has not expired on the current year, a redetermination could be done.