Treasurer Stacy Garrity Praises Lawmakers for Bipartisan Passage of Legislation to Reform State Tax Appeals Process

Harrisburg, PA - Pennsylvania Treasurer Stacy Garrity applauded lawmakers in the Pennsylvania House and Senate for their bipartisan approval of Senate Bill 1051, pro-taxpayer legislation sponsored by Sen. Scott Hutchinson (R-21) to streamline and improve the process of resolving tax disputes with the Pennsylvania Department of Revenue (DOR).

Once signed into law, SB 1051 will allow the Board of Finance and Revenue (BF&R) to accept late-filed applications in certain circumstances and to create a new independent, mediated settlement process for taxpayers as an alternative to the formal and lengthy court appeals process.

"This will make tax appeals much more fair for Pennsylvania families and businesses. These reforms will remove bureaucratic obstacles and implement a settlement process to streamline the appeal process. Huge thanks to Senator Hutchinson and Representative Briggs, and overwhelming bipartisan majorities in both chambers, for working to create an even playing field for Pennsylvania taxpayers."

Pennsylvania State Treasurer Stacy Garrity

"This legislation is simply designed to protect taxpayers and is a win-win for everyone involved in the tax appeals process, After learning of the complications and hardships Pennsylvania citizens and business face when dealing with tax disputes, I was happy to author this measure to provide some relief to those involved in the appeals system. I appreciate the support from my colleagues in the Senate and the House in getting this bill to the governor's desk."

Sen. Scott Hutchinson (R-21)

"A lot of collaboration and hard work went into this bill. On behalf of the small business community and Pennsylvania taxpayers, I'm pleased to have joined with Senator Hutchinson to see this pro-taxpayer legislation through to fruition."

Rep. Tim Briggs (D-149)

SB 1051 is supported by numerous organizations, including the Pennsylvania Chamber of Business and Industry, the NFIB, the Pennsylvania Institute of Certified Public Accountants (PICPA), and the Pennsylvania Society of Enrolled Agents. Rep. Briggs introduced a companion bill, House Bill 1994.

"On behalf of businesses statewide, we applaud the passage of Senate Bill 1051, which will streamline the process of resolving tax disputes in Pennsylvania and help job creators avoid costly litigation. By allowing the BF&R to create a new settlement option, this bill gives taxpayers - especially small businesses - more flexibility to resolve disputes fairly and efficiently. This legislation is a win-win for businesses and our Commonwealth, and we thank Treasurer Stacy Garrity, Senator Hutchinson, and Representative Briggs for their leadership in advancing this important reform."

President and CEO of the Pennsylvania Chamber of Business and Industry Luke Bernstein

"Governments shouldn't make things more complicated for business owners, they should be looking for opportunities to ease the burden of paperwork, taxes, and compliance issues. This legislation is critical for the small business owner, as it provides more flexibility in the filings and appeals process. Simply put, the tax code is extremely confusing, and many small business owners aren't experts. They are human and may accidentally miss a filing. This legislation will help provide them a remedy, rather than penalty."

NFIB State Director for Pennsylvania Greg Moreland

"PICPA extends its gratitude to Treasurer Garrity, Senator Hutchinson, Representative Briggs, and the members of the PICPA State Taxation Steering Committee for their leadership on this important legislation. As highlighted in our recent testimony before the House Finance Committee, PICPA believes this legislation will foster a more flexible, efficient, and equitable process for resolving tax disputes. This is a win for both taxpayers and the Commonwealth, as it streamlines the appeals process."

CEO of The Pennsylvania Institute of Certified Public Accountants Jennifer Cryder

"Passage of this very important BF&R reform legislation was only possible because Treasurer Garrity, Sen. Hutchinson and Rep. Briggs see Harrisburg as is should be not how it is. They listened to the small business community, and acted on our concerns. This adds simplicity and certainty to system very few understand and will enable taxpayers come to quick resolution on sometimes very complicated matters."

Past President of the Pennsylvania Society of Enrolled Agents Warren Hudak

Currently, taxpayers who disagree with a final decision made by DOR have a 60-day deadline to appeal the decision to BF&R. That often leads to cases being dismissed on a technicality rather than being decided on their merits. SB 1051 will allow BF&R to accept late-filed applications if good cause is shown by the taxpayer and neither party would be prejudiced.

The bill also empowers BF&R to create an independent settlement process, which will allow more tax disputes to be resolved without a final Board decision - thus reducing litigation costs for taxpayers. Under current law, BF&R has no authority to direct a settlement process. Treasury estimates that up to 500 cases annually could be resolved under this process.

BF&R receives approximately 4,200 appeals annually. The Board must resolve each appeal within six months of its filing, absent an extension request; otherwise, the underlying DOR decision is upheld. Currently, only about 13 percent of eligible appeals are resolved through settlement prior to an appeal before the Commonwealth Court.

BF&R is an independent administrative tax tribunal, administered by the State Treasurer, responsible for the second and final level of administrative appeal (with minor exceptions) before appealing to court. The Board consists of three members - two are appointed by the Governor and confirmed by the Pennsylvania Senate; the third is the State Treasurer or her designee and serves as Chair.

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