Pennsylvania BFR Orders Abatement of EFT Penalty for Taxpayers’ Tax Payment

The Pennsylvania Board of Finance and Revenue (BFR) ordered the Department of Revenue to abate the Electronic Funds Transfer (EFT) penalty imposed on the taxpayers for the relevant tax period. The taxpayers had remitted an estimated tax payment via check, which triggered an EFT penalty since payments exceeding a certain threshold were required to be made electronically after the set date, but their estimated payments had historically been below the threshold, and the fourth quarter payment for 2024 was unusually higher. The BFR granted the taxpayers’ request for abatement based on their demonstration of good faith, finding they had acted ...