Pennsylvania BFR Reduces Taxpayer’s Interest Income, Grants Tax Refund

The Pennsylvania Board of Finance and Revenue (BFR) issued a decision that reduces the taxpayer’s reported interest income and grants a personal income tax refund. Initially, the taxpayer filed a 2022 PA-40 form, documenting taxable income and tax liability. However, the Department of Revenue increased the taxpayer’s taxable income and tax liability by adjusting various income items. The taxpayer disputed these adjustments, particularly the increase in interest income. The Board determined that the Department incorrectly added interest income that did not match the PA Schedule RK-1 issued to the taxpayer. Consequently, the Board ordered the Department to reassess the taxpayer’s ...