Tax Audit Protest and Appeal — Pennsylvania

Tax Audit Protest and Appeal (PENNSYLVANIA)

Quick-Reference Summary

Part A — Informal Conference Request / Pre-Petition Outreach

Letterhead

[FIRM OR TAXPAYER NAME]
[________________________________]
[Street address]
[City, PA ZIP]
Telephone: [____]
Email: [________________________________]

Date

[__/__/____]

Recipient

PA Department of Revenue
Bureau of [Audits / Corporation Taxes / Individual Taxes]
[Audit Division, Field Office address]

Subject

Re: Request for Pre-Assessment Conference and Audit Findings Review

I. Taxpayer Information

Taxpayer is a [PA / foreign] [corporation / LLC / partnership / sole proprietor / individual] operating in Pennsylvania under Revenue ID [____]. The undersigned [is the taxpayer / is the taxpayer's authorized representative pursuant to Form REV-677 Power of Attorney, attached].

II. Audit Findings Being Discussed

Taxpayer received the audit findings letter / pre-assessment summary dated [__/__/____] (attached as Exhibit A), proposing additional [tax type] of $[____], penalty of $[____], and interest of $[____].

III. Request for Conference

Taxpayer requests a pre-assessment conference with the audit supervisor to discuss the proposed adjustments before the Notice of Assessment is issued. Taxpayer believes the following issues can be substantially narrowed:

1. [________________________________]
2. [________________________________]
3. [________________________________]

IV. Brief Statement of Disputed Issues

1. [________________________________]
2. [________________________________]

V. Authorization

Authorized representative: [________________________________] (PA Bar No. [____] / CPA Cert. No. [____]). Form REV-677 Power of Attorney is on file / attached as Exhibit B.

VI. Reservation of Rights

This pre-assessment outreach does NOT toll any statutory appeal deadline. Taxpayer will timely file a Petition for Reassessment with the Board of Appeals within the applicable [60-day / 90-day] period after the Notice of Assessment is issued.

Signature Block

Respectfully,

_______________________________
[Name]
[Title]
Date: [__/__/____]

Attachments: (A) Audit findings letter; (B) Form REV-677 POA; (C) Supporting records.

Part B — Petition for Reassessment to Board of Appeals (BOA) / Petition for Review to BF&R

Caption

Docket No.: [_________________ — assigned upon filing]
Tax Type: [________________________________]
Tax Periods: [__/__/____] through [__/__/____]

I. Jurisdiction and Timeliness

This Petition is filed pursuant to [72 P.S. § 7232 (Sales/Use) / 72 P.S. § 9702 (PIT) / 72 P.S. § 7407.4 (CNIT)] and 61 Pa. Code Chapter 7. The Notice of Assessment was mailed on [__/__/____]. This Petition is filed within the applicable [60-day / 90-day] statutory period and is therefore timely. ☐ Petitioner requests an additional 30 days for cause pursuant to Act 123 of 2024, as set forth in the accompanying Motion for Extension.

II. Statement of Facts

1. Petitioner is a [PA / foreign] [corporation / LLC] registered with the Department under Revenue ID [____].
2. Petitioner filed [Form PA-40 / RCT-101 / PA-3 Sales Tax Return / PA-65 / PA-20S] for the periods at issue on [__/__/____].
3. The Department's Bureau of Audits issued a Notice of Assessment on [__/__/____] (attached as Exhibit A) assessing additional tax of $[____], penalty of $[____], and interest of $[____].
4. [Description of audit, IDRs, position taken].
5. [________________________________].
6. [________________________________].

III. Errors of Law

Error No. 1 — [Issue title]

The Department erroneously construed [72 P.S. § ____ / 61 Pa. Code § ____] in [________________________________]. The correct interpretation is governed by [statute / regulation / Commonwealth Court decision]. See [PA Supreme/Commonwealth Court case], [citation]; [Board of Finance and Revenue decision], [docket].

Error No. 2 — [Issue title]

[________________________________]

Error No. 3 — [Issue title]

[________________________________]

IV. Errors of Fact

Fact Error No. 1. The Notice of Assessment finds that [________________________________]. The documentary evidence (see Exhibits D–G) establishes that [________________________________].

Fact Error No. 2. [________________________________].

V. Requested Relief

Petitioner respectfully requests that the Board of Appeals:

1. Reassess the tax to $0; or in the alternative,
2. Reassess the tax to $[____];
3. Abate the [underpayment / late-filing / fraud] penalty for reasonable cause;
4. Recalculate interest accordingly; and
5. Issue a Decision and Order consistent with the foregoing.

VI. Burden of Proof and Standard of Review

Petitioner acknowledges that the Notice of Assessment is prima facie correct and that Petitioner bears the burden of proving the assessment incorrect by a preponderance of the evidence. Norris v. Commonwealth, 625 A.2d 179 (Pa. Commw. Ct. 1993). Petitioner has met that burden as set forth herein and in the accompanying exhibits.

VII. Evidence Offered

VIII. Request for Hearing

☐ In-person hearing in Harrisburg
☐ Telephone / video hearing
☐ Submission on documentary record only (no hearing)

IX. Settlement Authority

Petitioner is interested in:

☐ Compromise with the Department under 61 Pa. Code § 7.7 (during BOA proceedings)
☐ Settlement Conference at BF&R under Act 123 of 2024 (request to be filed within 30 days of BF&R petition)
☐ Voluntary Disclosure Program for additional periods
☐ Penalty waiver for reasonable cause

Signature Block and Verification

I, [name], verify that the statements made in the foregoing Petition are true and correct to the best of my knowledge, information, and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. § 4904 (unsworn falsification to authorities).

Dated: [__/__/____]

_______________________________
[Petitioner or authorized representative]
[Printed name and title]
PA Bar No. / CPA Cert. No.: [____]

Filing options:

• Online: revenue.pa.gov/taxappeals (BOA) or bfrtaxappealportal.patreasury.gov (BF&R)
• Mail: PA Department of Revenue, Board of Appeals, PO Box 281021, Harrisburg, PA 17128-1021
• For BF&R appeal of BOA decision: Board of Finance and Revenue, 1101 South Front Street, Suite 400, Harrisburg, PA 17104-2539

Part C — Appeal Cover Letter to Commonwealth Court

Letterhead

[FIRM NAME]

Date

[__/__/____]

Recipient

Prothonotary
Commonwealth Court of Pennsylvania
601 Commonwealth Avenue, Suite 2100
Harrisburg, PA 17106-9185
(717) 255-1650

Re: Petition for Review — Appeal from Order of the Board of Finance and Revenue

I. Parties

II. Decision Being Appealed

Order of the Board of Finance and Revenue mailed [__/__/____] in BF&R Docket No. [____], sustaining (in whole or in part) BOA Decision dated [__/__/____], and affirming the assessment of [tax type] of $[____], penalty of $[____], and interest of $[____] for periods [____].

III. Timeliness Statement

This Petition for Review is filed within 30 days of the mailing date of the BF&R Order as required by Pa. R.A.P. 1571 and 42 Pa. C.S. § 763. A copy of the BF&R Order is attached.

IV. Statement of Issues (Pa. R.A.P. 1513(d))

1. Whether the BF&R erred in [________________________________].
2. Whether [tax provision] applies to Petitioner's [transactions / income / property].
3. Whether the assessment violates the [Commerce Clause / Due Process / Uniformity Clause of Pa. Const. art. VIII, § 1].
4. [________________________________].

V. Standard of Review

Commonwealth Court reviews appeals from BF&R de novo on a stipulated record or after evidentiary hearing. American Airlines, Inc. v. Commonwealth, 665 A.2d 417 (Pa. 1995); Pa. R.A.P. 1571(g). The taxpayer may supplement the administrative record with new evidence under Pa. R.A.P. 1571(f). The court is not bound by BF&R findings.

VI. Relief Requested

Petitioner respectfully requests that the Court:

1. Reverse the BF&R Order and the underlying BOA Decision;
2. Order that the assessment be canceled in its entirety;
3. Alternatively, order recomputation of the tax to $[____];
4. Award costs and statutory interest on any amounts to be refunded; and
5. Grant such other relief as the Court deems just and proper.

VII. Statement Regarding Bond / Security

☐ Petitioner has paid the disputed tax in full and seeks refund.
☐ Petitioner elects to pay the tax / file bond / provide security under 72 P.S. § 9707(b) pending appeal.
☐ Not applicable — refund petition / pre-payment appeal.

Signature Block

Respectfully submitted,

_______________________________
[Counsel of record]
PA Bar No. [____]
[Firm name and address]
Counsel for Petitioner
Date: [__/__/____]

Required filings (Pa. R.A.P. 1513, 1571):

• Petition for Review with $90.25 filing fee
• Service copies on: Office of Attorney General — Tax Litigation; Department of Revenue Chief Counsel; BF&R Prothonotary
• Stipulation of facts (or notice of intent to present additional evidence)
• Joint stipulation deadline: typically 90 days after filing

Part D — Pre-Filing Checklist

Notice and calendaring
☐ Notice of Assessment received date diaried: [__/__/____]
☐ BOA petition deadline (60 or 90 days) calendared with 7-day buffer: [__/__/____]
☐ BF&R petition deadline (post-BOA decision) calendared: [__/__/____]
☐ 30-day Commonwealth Court appeal deadline (post-BF&R order) calendared
☐ All notice envelopes retained (USPS postmark controls under Act 123 mailbox rule)

Authority and authorization
☐ Form REV-677 Power of Attorney signed and filed
☐ Authorized representative's PA Bar / CPA license verified
☐ Conflict check completed

Records gathering
☐ Auditor's workpapers, IDRs, and Position Letter obtained
☐ myPATH / e-TIDES account transcripts pulled for all periods
☐ Filed PA returns (PA-40, RCT-101, PA-3, etc.) for all relevant years assembled
☐ Federal returns and IRS audit documents collected
☐ Source documents — invoices, exemption certificates (REV-1220), purchase records — compiled

Legal analysis
☐ Tax Reform Code (Acts of 1971) and Pa. Code provisions identified per issue
☐ Commonwealth Court and Supreme Court tax decisions reviewed
☐ BF&R recent decisions searched (bfrtaxappealportal.patreasury.gov)
☐ BOA published decisions reviewed via Department's appeals search
☐ Statute of limitations under 72 P.S. § 258 verified
☐ Reasonable cause penalty waiver analyzed
☐ Constitutional defenses (Commerce Clause, Uniformity, Due Process) evaluated

Strategy decisions
☐ Pre-assessment conference with auditor evaluated
☐ Extension for cause (up to 30 additional days) considered under Act 123
☐ Settlement Conference at BF&R evaluated (request within 30 days of BF&R petition)
☐ Voluntary Disclosure Program reviewed for additional periods

Filing mechanics
☐ BOA petition filed online (revenue.pa.gov/taxappeals) or by certified mail RRR
☐ Verification under 18 Pa. C.S. § 4904 properly executed
☐ Filing fee tendered (Commonwealth Court: $90.25)
☐ Service on all required parties for Commonwealth Court petitions
☐ Calendar entry for Department's Answer (BOA: typically 60 days; BF&R: 60 days)

Sources and References

• PA Department of Revenue — Tax Appeals: https://www.pa.gov/agencies/revenue/get-assistance/tax-appeals
• PA Department of Revenue — Board of Appeals Online Petition Center: https://www.eservices.revenue.pa.gov/FileAnAppeal/
• Board of Finance and Revenue: https://www.patreasury.gov/bfr/
• BF&R Online Appeal Portal: https://bfrtaxappealportal.patreasury.gov
• Commonwealth Court of Pennsylvania: https://www.pacourts.us/courts/commonwealth-court
• Form REV-1799A, Time Limitations on Filing Petitions for Appeal: https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/otherforms/documents/rev-1799a.pdf
• Form REV-677, Power of Attorney
• 72 P.S. §§ 258, 7232, 7407.4, 9702, 9706.1, 9707
• 61 Pa. Code Chapters 7 (BOA) and 701 (BF&R)
• 42 Pa. C.S. § 763 (Commonwealth Court jurisdiction)
• Pa. R.A.P. 1513, 1571
• Act 123 of 2024 (S.B. 1051), effective January 27, 2025 — PIT 90-day appeal extension; BF&R Settlement Conference program; mailbox rule