Department of Revenue Secretary Dan Meuser Wednesday announced he department’s Board of Appeals will now accept requests for compromise of tax appeals.
“Accepting requests for compromise will provide a more efficient way for taxpayers to settle disputes with the department,” Meuser said. “This is an important step toward fulfilling Governor Corbett’s pledge to reform the appeals process, making it more taxpayer-friendly. Taxpayers can now resolve tax appeals in a matter of weeks, rather than endure a process that could last years.”
Miscellaneous Tax Bulletin 2011-02, issued Wednesday, allows a petitioner to propose a compromise with the department prior to a final decision by the Board of Appeals.
To propose a compromise, the petitioner must submit a written request for compromise by completing the Board of Appeals Request for Compromise form, found on the department’s website. This form may only be submitted in conjunction with a petition to the Board of Appeals, either along with Board of Appeals Petition Form or as soon as possible after the petition is filed.
A compromise will only be considered when it illustrates doubt regarding liability or promotes effective tax administration.
Compromises addressing any of the following will not be considered: appeals of denials of property tax/rent rebate claims, denials of charitable tax exemptions, revocation of sales tax licenses or appeals pursuant to the Gaming Control Act.
Under the compromise process, an informal conference would be conducted by a Board of Appeals hearing officer to determine if the appeal may be resolved in a mutually satisfactory manner. If so, an order reflecting the compromise would be submitted for approval.