Q&A with Pennsylvania Department of Revenue

Personal Income Tax

If a Schedule C review is conducted and accepted for the 2016 year, can we expect that subsequent years will not be subject to review? Why would the DOR continually ask for data that has already been substantiated?
How will DOR procedures change in the future to ensure that taxpayer responses are processed in a timely manner?
Scenario: Reporting income earned outside of the U.S. on a joint return
Scenario: Unreimbursed expense claims
Scenario: Claiming resident credits on trusts
Is a grantor trust that owns an interest in an S-Corporation able to claim a resident credit on income taxes paid by the S-Corporation to states where the S-Corporation is taxed as a C-Corporation?
In an IRC sec. 351 transaction in which one of the contributing shareholders receives boot, would the shareholder recognize gain to the extent of the boot received (federal rules), or would all gain would be recognized?
What is the authority to not allow the foreign tax credit on wages for foreign jurisdictions?
Scenario: On July 1, 2013, an individual taxpayer moves to Pennsylvania from New Jersey. The taxpayer has owned an interest in a pass-through entity for the past ten years.
Scenario: PA-40 notices are sent with changes to taxpayers' returns with little explaination
Scenario: Issues e-filing fiduciary returns
Scenario: Receiving notices from the DOR requesting copies of K-1s
Has the DOR taken any stance regarding the Wynne case as it applies to a PA resident taxpayer’s ability to claim credit for taxes paid to political subdivisions of other states?
Will defective grantor trusts be able to claim credits for state taxes paid by the grantor?
Scenario: Will Pa. allow resident shareholders to take a credit for tax paid on the Sec 338(h) income in UT?
According to the Interpretation of Section 1374, "no tax is imposed on the net recognized built-in gain of an S-corporation if the 7th year of the applicable recognition period ended before the tax year.” Is the gain excluded so as to make the tax zero?
An irrevocable trust receives a PARK-1 from a pass-through entity that has both income and credits. How do the credits get reported?
For an individual that has foreign taxes on business income, can a deduction be claimed for PA purposes for any foreign taxes paid?
Scenario: not-for-profit rental activities
On PA Schedule I, the first question on the form asks, “Did you have a Geophysical Survey completed for wells created prior to 2014?” How does the answer to this question effect the amortization or deductibility of intangible drilling costs?

Pennsylvania Institute Of Certified Public Accountants

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