Bipartisan plan to simplify appeal process proposed for taxpayers in Pennsylvania

Resolving tax disputes in Pennsylvania should be simpler, according to a bipartisan trio of elected officials.

Treasurer Stacy Garrity, Republican Sen. Scott Hutchinson and Democratic Rep. Tim Briggs said this week they’ll introduce legislation that streamlines the appeals process with the Department of Revenue so taxpayers have more time to file paperwork under certain circumstances. The 60-day timeline often leads to dismissed cases based on technical violations.

The bill will also create a settlement process so residents can avoid a lengthy court process that requires a decision from the Board of Finance and Revenue.

“The proposed new dispute resolution process will most often be helpful in cases involving individuals and small businesses where the dispute can readily be resolved,” Garrity told The Center Square. “For example, it may be a case where some additional paperwork is needed or a case where discussing a possible settlement makes sense for both sides.”

Garrity said the process can address disputes with any state-levied tax. Although larger companies often employ their own legal and accounting teams to handle the appeals. That’s not a luxury afforded to smaller businesses and residents, however.

“Many individuals and small business owners represent themselves before BF&R, and almost all of them are not familiar with the tax appeal process,” Garrity said. “BF&R works to be as taxpayer-friendly as possible, but the process can still be intimidating.”

Allowing the board to accept late-filed paperwork for “good cause,” much like state courts do, gives taxpayers a better chance of their appeals being heard on merit. Garrity said good cause could include a taxpayer who gets ill or has to care for a sick family member; a farmer with a deadline that coincides with harvest season; or a restaurant owner struggling to balance preparing an appeal while keeping her business running.

“Far too many Pennsylvania taxpayers have found themselves stuck in an unforgiving, bureaucratic tax appeal process – and it’s time for us to give them a way out,” Garrity said. “Some of the current rules are inflexible for no good reason.”

Hutchinson and Briggs agreed the legislation makes sense, will save money and divert resources to more complex tax cases.

“This legislation is a taxpayer protection proposal, pure and simple,” Hutchinson said. “Sometimes our state’s tax collection agency gets a little overzealous in how it interprets applicable law.”

The board receives around 4,200 appeals annually and each appeal must be resolved within six months of its filing – otherwise the initial decision is upheld. The Treasury said roughly 13% of appeals are settled before appealing to state court.