Reed Smith Client Alerts

The Pennsylvania Department of Revenue’s Board of Appeals is issuing orders purporting to “dismiss” large sales tax refund petitions and ordering the Bureau of Audits to take over. There are questions regarding the Department’s authority to “dismiss” a refund petition and then conduct an audit, so taxpayers are well-advised to appeal any dismissal order to the Board of Finance and Revenue.

Authors: Kyle O. Sollie Robert E. Weyman Christine M. Hanhausen Brent K. Beissel

Type: Client Alerts

The Pennsylvania Department of Revenue’s Board of Appeals (the “Board”) is issuing orders dismissing large and complex sales and use tax refund petitions “without prejudice,” while directing the Department’s Bureau of Audits to open a field audit of the taxpayer filing the petition to “review the account” for accuracy. As discussed in this alert, an order of this type is not supported by Pennsylvania’s procedural statutes and—even though the Board’s dismissal orders may purport to be “without prejudice”—a taxpayer receiving such a notice should, nonetheless, appeal the order to protect its rights.