Pennsylvania Treasurer Stacy Garrity has unveiled significant changes to the state’s tax appeals process that aim to streamline operations and provide relief to taxpayers. The revisions, which took effect on January 27, 2025, stem from the enactment of Act 123 of 2024. This legislation amends the Tax Reform Code of 1971 and is designed to eliminate bureaucratic hurdles, saving time and resources for both the state and taxpayers.
Under the new law, Pennsylvania residents and businesses have 90 days—increased from the previous 60 days—to file appeals regarding personal income taxes, fiduciary income taxes, employer withholding taxes, and pass-through assessments with the Board of Finance & Revenue (BF&R). Additionally, BF&R now has the authority to extend this period by an additional 30 days for late applications if justified.
A noteworthy introduction is the option for taxpayers to engage in a mediated settlement conference at no extra cost. This option must be requested within 30 days following the appeal filing. The BF&R may also refer cases to this alternative dispute resolution process voluntarily. Treasury officials estimate that up to 500 cases per year could benefit from this less formal and less expensive resolution method.
The reform has received widespread support from various stakeholders including the Pennsylvania Institute of Certified Public Accountants, the Pennsylvania Chamber of Business and Industry, NFIB, and the Pennsylvania Society of Enrolled Agents. The bipartisan effort was spearheaded by Senator Scott Hutchinson and Representative Tim Briggs, who introduced companion legislation in the Pennsylvania General Assembly.
The BF&R, an independent administrative tribunal overseen by the State Treasurer, provides the second and final level of administrative appeal prior to court proceedings. For those interested in the mediated settlement conference or other appeal processes, further information can be found on the Pennsylvania Treasury’s official website at patreasury.gov/bfr.
