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
Are the Schedule C reviews being handled by RSI (Revenue Solutions Inc.) and if they are, couldn’t improved analytics be utilized to more accurately reflect Schedule C’s that may actually need to be reviewed?
The department uses data analytics to identify average expenses, line items on the Schedule C, which are claimed by a particular industry. Returns are examined when outliers are identified. We are not limiting our review to either a particular industry or particular level of income. The department has been reevaluating current year suspensions and has started making adjustments