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House of Representatives
Session of 2021 - 2022 Regular Session


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