|Posted:||April 15, 2021 03:22 PM|
|From:||Representative David H. Zimmerman|
|To:||All House members|
|Subject:||PIT Examination Process (Prior HB 774, 2019-2020)|
|In the near future, I plan to re-introduce legislation (prior HB 774 – 2019-2020 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 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 business 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.
Previous co-sponsors (HB 774, 2019-2020) include: MILLARD, PICKETT, BERNSTINE, B. MILLER, BARRAR, KEEFER, SAYLOR, GAYDOS, RADER an GILLEN
Introduced as HB1756