Pennsylvania BFR Orders Reassessment of Taxpayers’ Resident Credit on Delaware Taxes

The Pennsylvania Board of Finance and Revenue (BFR) ordered the reassessment of taxpayers’ accounts to reflect a resident credit for taxes paid to Delaware. The dispute arose from the Department’s disallowance of resident credit claimed by the taxpayers on their 2023 Pennsylvania personal income tax return for taxes paid to Delaware. The taxpayers had reported business income and interest income that was subject to tax in both Pennsylvania and Delaware. After reviewing the taxpayers’ Delaware non-resident tax return, the BFR found that they were entitled to a resident credit for the tax paid to Delaware on their business income. However, ...