By Vincent Pease

The Taxpayers’ Bill of Rights, designed to ensure equity and fairness in tax administration and enforcement, was part of House Bill 200 that was signed into law in 1996 by then Gov. Tom Ridge. This legislation also created the Office of Taxpayers’ Rights Advocate (OTRA), which provides free and confidential assistance to taxpayers with Pennsylvania personal income tax and inheritance tax concerns that have not been resolved through normal, established procedures.

It was my honor to be appointed as the Taxpayers’ Rights Advocate in March 2019. Having worked within the Department of Revenue’s Bureau of Individual Taxes since 2005, I believe that I brought a lot of firsthand experience to this role, which serves as a lifeline for many people in difficult situations.

I know from my experience that some tax professionals and CPAs may not be familiar with the OTRA. This blog shares an overview of our office and the work that we do.

When to Turn to OTRA

The OTRA should not be a first point of contact, but rather a final resource when all other options related to personal income tax and inheritance tax have been exhausted. Tax professionals and their clients should first try to resolve any issues with these taxes by working directly with the Department of Revenue.

That said, OTRA can help in the following situations:

• Normal Procedures Have Been Exhausted – An issue or action by the Department of Revenue that has not been resolved by normal, established procedures can be brought to the OTRA.
• Delays – When more than 180 days have passed without a resolution to your tax issue, OTRA can intervene.
• Unfulfilled Commitments – If you have not received a promised response or resolution by an agreed-upon date, OTRA can help ensure that your rights as a taxpayer are protected.
• Significant Hardship – If you are suffering, or about to suffer, a substantial hardship due to your tax situation, OTRA can step in to advocate on your behalf.

OTRA’s Other Areas of Focus

In addition to the situations noted above, OTRA specializes in other specific areas, including the following:

• Relief from Joint Liability – Married taxpayers who file joint Pennsylvania personal income tax returns are jointly and individually responsible for the taxes, interest, or penalties due on joint returns, even if they later divorce. In some cases, OTRA can help relieve a spouse, or former spouse, from tax obligations attributable to a joint return.
• Injured Spouse Relief – In cases where one spouse wants to protect their share of overpaid tax from being applied toward their spouse's past-due personal income tax liabilities, child/spousal support liabilities, court-ordered obligations, or federal income tax debt, OTRA provides guidance and support.
• Duress – OTRA offers assistance to domestic violence victims who have involuntarily completed a tax return due to spousal abuse or duress.

Limits of the OTRA

While the OTRA plays a crucial role in safeguarding taxpayers' rights and providing essential support, there are limits to the issues it can address. Here are some services the OTRA cannot provide:

• Acting as legal counsel for individual situations.
• Reducing tax liability through an offer of compromise when taxes are legally due.
• Granting or establishing payment plans.
• Releasing liens, except in cases where a taxpayer assistance order or a relief determination eliminates a tax liability.
• Changing a final assessment issued by the Department of Revenue when it has been upheld by the Board of Appeals, Board of Finance and Revenue, or any other court.
• Changing Pennsylvania's tax laws for individual situations.
• Accepting cases that the Department of Revenue can generally handle without OTRA's involvement, such as processing original tax returns, amended returns, or rejected and unpostable returns.
• Providing expected refund issuance dates for individual taxpayers.
• Assisting with federal, local, and/or county tax matters.

Contacting the OTRA

The OTRA is a vital safety net for many individuals in difficult situations. In fact, our office completed more than 2,000 cases in each of the prior two fiscal years, which was the second- and third-highest totals in the office’s 27-year history.

If you have a client who may benefit from the services offered by the OTRA, call (717) 772-9347, fax (717) 787-8264, or email pataxadvocate@pa.gov. Remember, you can also contact OTRA through the online Taxpayer Request for Assistance Form (REV-556). We want people to know that we are here to help if they have exhausted all other options or are in a situation that falls within our jurisdiction.

Vincent Pease has worked for the Department of Revenue for 18 years. He believes it is a privilege to be the Taxpayers’ Rights Advocate and the voice of the taxpayers. OTRA takes great pride in trying to give the best customer service and helping anyone who contacts the office.

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Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of the PICPA's officers or members. The information contained herein does not constitute accounting, legal, or professional advice. For actionable advice, you must engage or consult with a qualified professional.