Pennsylvania BFR Grants LLC’s Petition for Penalty Abatement

The Pennsylvania Board of Finance and Revenue (BFR) granted the taxpayer LLC’s petition for abatement of penalties for the 2023 tax period. The taxpayer was assessed by the Department of Revenue (DOR) for personal income tax, interest, and late payment penalties for 2023, after the company inadvertently overpaid its nonresident individual withholding obligation instead of its corporate net income tax obligation due to a miscommunication with its tax advisor. The BFR found that the taxpayer acted in good faith without negligence or intent to defraud the Commonwealth, noting that upon realizing the error, the company immediately paid the entire assessed ...