Pennsylvania BFR Partially Grants Relief to Taxpayer on 2022 Income Tax Assessment

The Pennsylvania Board of Finance and Revenue (BFR) partially granted relief to taxpayers regarding their 2022 personal income tax assessment. The taxpayers, New Jersey residents, had reported income from a real estate transaction in Pennsylvania, but their tax filing contained errors related to the reporting of business income and expenses. The Board found that the taxpayers had provided sufficient evidence to establish Pennsylvania business income, but failed to substantiate the claimed expenses on their Schedule C. The Board ordered the taxpayers’ 2022 account to be reassessed to reflect the business income and abated penalties, determining that the taxpayers had acted ...