Pennsylvania State Income Tax Protest — Petition for Reassessment and Appeal

PENNSYLVANIA STATE INCOME TAX PROTEST — PETITION FOR REASSESSMENT

TABLE OF CONTENTS

1. Caption and Filing Information
2. Stage 1 — Petition for Reassessment (Board of Appeals)
3. Statement of Facts
4. Issues Presented
5. Argument and Legal Authority
6. Relief Requested
7. Hearing Request and Certification
8. Stage 2 — Petition for Review to Board of Finance and Revenue
9. Stage 3 — Appeal to Commonwealth Court (Notice)
10. Pennsylvania Practice Notes
11. Sources and References

1. CAPTION AND FILING INFORMATION

COMMONWEALTH OF PENNSYLVANIA

DEPARTMENT OF REVENUE — BOARD OF APPEALS

PO Box 281021, Harrisburg, PA 17128-1021

PETITION FOR REASSESSMENT PURSUANT TO 72 P.S. § 9701

2. STAGE 1 — PETITION FOR REASSESSMENT (BOARD OF APPEALS)

Petitioner, [TAXPAYER NAME], by and through undersigned counsel, hereby petitions the Department of Revenue Board of Appeals for reassessment of the Notice of Assessment identified above, pursuant to 72 P.S. § 9701 and 61 Pa. Code Chapter 7, and in support thereof avers as follows.

3. STATEMENT OF FACTS

3.1. Petitioner is a [resident / part-year resident / nonresident] of the Commonwealth of Pennsylvania for the tax year(s) at issue, with domicile at [ADDRESS].

3.2. Petitioner timely filed Pennsylvania Form [PA-40 / PA-41 / OTHER] for the tax year(s) [YEAR(S)] on [__/__/____], reporting Pennsylvania-taxable income of $[AMOUNT] and tax liability of $[AMOUNT].

3.3. On [__/__/____], the Department of Revenue issued a Notice of Assessment (Notice No. [####]) asserting additional tax in the amount of $[AMOUNT], interest of $[AMOUNT], and penalty of $[AMOUNT].

3.4. The Notice asserts the following bases for adjustment:

• [Adjustment 1 — e.g., disallowance of credit for taxes paid to another state];
• [Adjustment 2 — e.g., reclassification of Schedule C self-employment income];
• [Adjustment 3 — e.g., assertion of PA domicile despite physical presence elsewhere].

3.5. Petitioner timely filed this Petition within ninety (90) days of the mailing date of the Notice as required by 72 P.S. § 9701(a)(2) (as amended by Act 123 of 2024).

3.6. [ADDITIONAL OPERATIVE FACTS — e.g., dates of out-of-state employment, evidence of domicile elsewhere, documentation supporting deductions, statutory residency calculations under 72 P.S. § 7301(p)].

4. ISSUES PRESENTED

4.1. Whether the Department erred in [describe issue, e.g., determining that Petitioner was a domiciliary of Pennsylvania during the tax year(s) at issue].

4.2. Whether the Department erred in [describe issue, e.g., disallowing the resident credit under 72 P.S. § 7314.1 for income taxes paid to the State of [OTHER STATE]].

4.3. Whether the Department's imposition of additions, interest, and penalty was contrary to law, where Petitioner acted with reasonable cause and in good faith.

5. ARGUMENT AND LEGAL AUTHORITY

A. The Department's Adjustment Is Contrary to Article III of the Tax Reform Code

5.1. The Pennsylvania Personal Income Tax is imposed under 72 P.S. § 7302 at a flat rate on eight enumerated classes of income defined in 72 P.S. § 7303. The Department's authority to assess is constrained by the statutory definitions of taxable income, residency, and sourcing.

5.2. [Specific legal argument — e.g., Petitioner is a "nonresident" within the meaning of 72 P.S. § 7301(p) because Petitioner did not maintain a permanent place of abode in Pennsylvania and was not present in Pennsylvania for more than 183 days during the tax year].

B. Petitioner Is Entitled to the Resident Credit / Sourcing Adjustment

5.3. Under 72 P.S. § 7314.1, a resident is entitled to a credit for income taxes paid to another state on income subject to tax in both jurisdictions. [Apply facts].

C. Additions, Interest, and Penalty Should Be Abated

5.4. Pursuant to 72 P.S. § 7352 and 61 Pa. Code § 7.16, additions and penalty may be abated upon a showing of reasonable cause. Petitioner relied on [describe reliance — e.g., professional tax preparer advice / prior Department guidance / facially valid W-2 reporting], which constitutes reasonable cause precluding penalty.

D. Taxpayers' Bill of Rights

5.5. The Pennsylvania Taxpayers' Bill of Rights Act, 72 P.S. § 3310-101 et seq., guarantees the rights to fair treatment, privacy, representation, and to challenge a determination. Any Department action violating those rights warrants reassessment.

6. RELIEF REQUESTED

WHEREFORE, Petitioner respectfully requests that the Board of Appeals:

• A. Reassess and reduce the tax liability asserted in Notice No. [####] to $[AMOUNT] or such other amount as the evidence supports;
• B. Abate all additions, interest, and penalty associated with the disputed adjustments;
• C. Issue any refund due to Petitioner with statutory interest under 72 P.S. § 806.1;
• D. Grant such other and further relief as the Board deems just and proper.

7. HEARING REQUEST AND CERTIFICATION

7.1. Hearing Request. Petitioner ☐ requests an oral hearing (virtual) ☐ waives oral hearing and requests decision on the written record.

7.2. Burden. Petitioner acknowledges the burden of proof under 61 Pa. Code § 7.16.

7.3. Certification. I, [NAME], hereby certify under penalty of perjury (18 Pa. C.S. § 4904) that the facts stated in this Petition are true and correct to the best of my knowledge and that this Petition is not interposed for delay.

Date: [__/__/____]

Signature: [________________________________]

[PETITIONER / AUTHORIZED REPRESENTATIVE NAME]

PA Bar No. / PTIN: [________________________________]

8. STAGE 2 — PETITION FOR REVIEW TO BOARD OF FINANCE AND REVENUE

COMMONWEALTH OF PENNSYLVANIA — BOARD OF FINANCE AND REVENUE

Riverfront Office Center, 1101 South Front Street, Suite 400, Harrisburg, PA 17104-2539

PETITION FOR REVIEW PURSUANT TO 72 P.S. § 9702

8.1. Petitioner incorporates by reference the Statement of Facts, Issues Presented, and Argument set forth in the Stage 1 Petition for Reassessment, supplemented as follows: [NEW EVIDENCE OR ARGUMENT].

8.2. Petitioner respectfully requests that the Board of Finance and Revenue reverse or modify the decision of the Board of Appeals dated [__/__/____] and grant the relief requested in Section 6 above.

8.3. Mediation Election (Optional). For petitions filed on or after January 27, 2025, Petitioner may request a mediated settlement before the BFR at no cost. Petitioner ☐ elects mediation ☐ declines mediation.

Date: [__/__/____]

Signature: [________________________________]

[PETITIONER / AUTHORIZED REPRESENTATIVE]

9. STAGE 3 — APPEAL TO COMMONWEALTH COURT (NOTICE)

The undersigned hereby gives notice that, in the event the Board of Finance and Revenue denies relief, Petitioner intends to appeal to the Commonwealth Court of Pennsylvania within 30 days of the mailing date of the BFR determination, in accordance with Pa. R.A.P. 1571 and 72 P.S. § 9703.

10. PENNSYLVANIA PRACTICE NOTES

• Two-stage administrative appeal. Pennsylvania tax appeals proceed through two distinct administrative bodies before judicial review: (1) the Department of Revenue Board of Appeals (BOA), and (2) the independent Board of Finance and Revenue (BFR) housed in Treasury. This separation of administrative review from the assessing agency is a hallmark of PA tax procedure.
• Act 123 of 2024 (eff. January 27, 2025). Extended the appeal period for Personal Income Tax and certain other taxes from 60 to 90 days at both the BOA and BFR stages. Also authorized BFR mediation at no cost. Confirm the controlling deadline by examining the Notice of Assessment; legacy 60-day notices issued before January 27, 2025 retain their original deadlines.
• No intermediate appellate court. Unlike most other states, Pennsylvania routes tax appeals from the BFR directly to the Commonwealth Court — a statewide intermediate appellate court of original jurisdiction over tax matters. There is no county-level tax court or Common Pleas review of state-level tax disputes (except for inheritance tax appeals from the BOA, which proceed to Orphans' Court).
• De novo review. The Commonwealth Court reviews BFR determinations de novo, meaning the BFR record is not binding. However, the Court ordinarily decides on a stipulated record under Pa. R.A.P. 1571(f), so develop facts thoroughly at the BFR stage.
• Burden of proof. The taxpayer bears the burden of proof in administrative tax appeals (61 Pa. Code § 7.16) except as to fraud, where the burden shifts to the Department.
• Domicile and residency. PIT residency turns on domicile (subjective intent + physical presence) and statutory residency (permanent place of abode + 183+ days in PA), 72 P.S. § 7301(p). Domicile cases are highly fact-intensive; preserve documentary evidence (utility bills, voter registration, vehicle registration, declarations of domicile, time logs).
• Resident credit. PA residents are entitled to a credit for taxes paid to another state under 72 P.S. § 7314.1. The credit is limited to the lesser of the PA tax on the doubly-taxed income or the tax actually paid to the other state.
• Penalty abatement. Reasonable cause standard under 72 P.S. § 7352 and 61 Pa. Code § 7.16 mirrors federal law. Document reliance on professional advice, novel legal questions, and good-faith compliance efforts.
• Interest. Statutory interest accrues under 72 P.S. § 806 at the federal underpayment rate. Refund interest accrues under 72 P.S. § 806.1.
• Confidentiality. Tax return information is confidential under 72 P.S. § 731 and the PA Taxpayers' Bill of Rights Act. Avoid filing sensitive information unnecessarily; the BOA accepts redacted exhibits.

11. SOURCES AND REFERENCES

• 72 P.S. § 9701 (Petition for Reassessment) — https://www.legis.state.pa.us/cfdocs/legis/LI/uconsCheck.cfm?txtType=HTM&yr=1971&sessInd=0&smthLwInd=0&act=2
• 72 P.S. § 9702 (Petition for Review — Board of Finance and Revenue)
• 72 P.S. § 9703 (Appeal to Commonwealth Court)
• 72 P.S. §§ 7301–7361 (Article III, Personal Income Tax)
• 72 P.S. § 3310-101 et seq. (Taxpayers' Bill of Rights Act)
• 61 Pa. Code Ch. 7 (Board of Appeals procedure) — https://www.pacodeandbulletin.gov/Display/pacode?file=/secure/pacode/data/061/chapter7/chap7toc.html
• 61 Pa. Code Ch. 405 (Board of Finance and Revenue procedure)
• Pa. R.A.P. 1571 (Commonwealth Court review of BFR determinations) — https://www.pacodeandbulletin.gov/Display/pacode?file=/secure/pacode/data/210/chapter15/s1571.html
• PA Department of Revenue, Tax Appeals — https://www.pa.gov/agencies/revenue/get-assistance/tax-appeals.html
• PA Board of Appeals Online Petition Center — https://www.eservices.revenue.pa.gov/FileAnAppeal/
• Board of Finance and Revenue (PA Treasury) — https://www.patreasury.gov/bfr/
• BFR Tax Appeal Portal — https://bfrtaxappealportal.patreasury.gov
• Act 123 of 2024 (extending PIT appeal deadlines, effective Jan. 27, 2025)
• Cozen O'Connor, Pennsylvania Enacts Significant Changes to Tax Appeal Processes (2024) — https://www.cozen.com/news-resources/publications/2024/pennsylvania-enacts-significant-changes-to-tax-appeal-processes

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. Tax appeal deadlines are jurisdictional and cannot be waived. A Pennsylvania-licensed attorney must review and customize this document before filing. Verify all citations and deadlines on the date of filing.