Pennsylvania BFR Grants Taxpayers’ Resident Credit for Out-of-State Partnership Taxes

The Pennsylvania Board of Finance and Revenue (BFR) ordered that the taxpayers are entitled to a resident credit for taxes paid to other states by a partnership on their behalf for the 2021 tax period. The taxpayers filed a 2021 Pennsylvania personal income tax return, but the Department of Revenue issued an assessment adjusting their credits, resulting in additional tax due. The taxpayers appealed, arguing they were entitled to a resident credit based on taxes paid to other states by a partnership of which they were members. The BFR found that the taxpayers provided sufficient evidence, including a partnership K-1 ...