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 will DOR procedures change in the future to ensure that taxpayer responses are processed in a timely manner?
The DOR has sent out many notices requesting additional information for Cost of Goods sold and other line items on the schedule C. In many cases, responses can be voluminous. Every notice that our clients have provided us with received a timely response via mail as the fax number was busy or the amount of data was too large to fax.
Recently, several of our clients have received follow-up notices stating that DOR has not received the mailed response. It appears that DOR is unable to process responses in a timely manner or route responses to the proper location in the system. What lessons are being learned through this process? How will procedures change in the future to ensure that taxpayer responses are processed in a timely manner?
The department has developed “TIPS for Successfully Filing PA Schedule C” and “TIPS for Successfully Filing PA Schedule UE.” We have agreed to extend the deadline for providing additional information from 15 days to 30 days.
We have extended the time between a first and second notice an additional 30 days. If the return has been processed as originally filed, the department will advise the taxpayer that no adjustments were made.
The department has been reevaluating current year suspensions and has started making adjustments.