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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2019 - 2020 Regular Session


Posted: January 11, 2019 04:07 PM
From: Representative David H. Zimmerman
To: All House members
Subject: PIT Examination Process (Prior HB 1867 - 17/18 Session)
In the near future, I plan to re-introduce legislation (prior HB 1867 – 17/18 Session) to amend the Tax Reform Code to assist PA businesses with an over-burdensome PIT examination process.

Specifically, this proposal will require the Department of Revenue (Department) to examine in person, at the physical location of the business, the requested papers and records of a taxpayer when the Department’s requests would total 25 pages or more of records. Recently, the Department has begun requesting taxpayers to print and mail copies of their PA-40 Schedule C and Schedule UE, along with all supporting documentation, for Department examination. This process is placing a significant burden on our small businesses community when the supporting documentation required to meet the Department’s request often amounts to boxes of information.

As means of background, a taxpayer may use PA Schedule UE, Allowable Employee Business Expenses, to report allowable unreimbursed business expenses, which can be excluded from compensation on Line 1A of the PA-40 Personal Income Tax Return. The PA-40 Schedule C is used to report income or loss from a business practice as a sole proprietor.

Please join me in co-sponsoring this legislation to assist PA businesses. If you have any questions, please contact me at 717-787-3531.

Introduced as HB774