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

Is Form REV-986 required for taxpayers claiming PL 86-272 protection?

Nov 15, 2019
Q:

Is Form REV-986 required for taxpayers claiming PL 86-272 protection, and can the
protection be claimed by attaching a statement to the return? Is there a difference in the impact on the statute of limitations if this form is filed?

A:

To the extent a taxpayer’s activities exceed the level where it would be permissible
to file an RCT-101-D, Form REV-986 should be completed and filed as part of the taxpayer’s Form RCT101 where protection under PL 86-272 is being asserted.

Regardless of whether Form REV-986 is completed or a statement claiming protection under PL 86-272 is attached to the RCT-101, it is the longstanding position of the Department that no statute of limitations is commenced unless an RCT-101 is filed reporting all required information necessary for the calculation of CNIT, even if no CNIT is actually due based on the protections afforded under P.L. 86-272. 

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Disclaimer

These documents provide a summary of the answers provided by the Department of Revenue to the PICPA Committee on State Taxation at its annual question and answer session. 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 their specific fact situation may request a written letter ruling under 61 Pa. Code Section 3.3.