|
|
|
 |
 |
 |
|
Chamber's Tax Work Group developing appeals modernization strategy
Seeking legislative fixes in new session to improve burdensome process The PA Chamber Tax Work Group recently convened to discuss, among other issues, a need for a comprehensive fix to the Commonwealth’s tax appeals process. Acknowledging that the current system is burdensome, costly, and lacks safeguards and an independent review, the group identified some of the existing challenges and will soon meet with Gov.-elect Tom Corbett’s Revenue Department transition team to identify opportunities for improvements in 2011. “The Best and Worst of State Tax Administration – The 2010 COST Scorecard on Tax Appeals & Procedural Requirements,” Pennsylvania received a “D,” the next-to-worst possible score. The report evaluated states based on statutes governing fair, efficient and customer-focused tax administration. The organization’s rationale is that taxpayers are more fully and willingly compliant with a tax system they perceive to be balanced, fair and effective. The bottom line is that Pennsylvania’s system is none of those. Under the current process, the first step after an audit and assessment is a review by the Board of Appeals, comprising the Department of Revenue, and in the case of corporate taxes, the Auditor General. This step can take up to six months. The next step is before the Board of Finance and Revenue, comprising Treasury, Revenue, Secretary of the Commonwealth, General Counsel, Auditor General and Attorney General. This review can also take up to six months. Finally, a taxpayer may appeal to Commonwealth Court. The PA Chamber’s Tax Work group, in conjunction with the Pennsylvania Institute of Certified Public Accountants and CompetePA have begun a process of evaluating the problems with PA’s tax appeals processes and creating legislative solutions. The Chamber will examine allowing for the capability to negotiate settlement earlier in the appeals process. This would expedite resolutions, save taxpayers money and infuse much-needed revenue back to the state that would otherwise be held up in a more than year-long process. These issues will need to be addressed legislatively, but the first step is to present the challenges to incoming lawmakers and the governor and then identify ways to make the state’s process fair, cost-effective and competitive with other states. ### Founded in 1916, the Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with its membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of Business. |
| Archived articles |
| Copyright © 2006 Pennsylvania Chamber of Business and Industry |