Pennsylvania BFR Overturns Taxpayers’ 2022 Income Tax Assessment

The Pennsylvania Board of Finance and Revenue (BFR) has ruled in favor of taxpayers regarding their 2022 personal income tax assessment. These taxpayers had filed their 2022 Pennsylvania tax return on time, accurately reporting their business income as statutory employees. However, the Department of Revenue subsequently increased its taxable income and issued an assessment for additional taxes, penalties, and interest. The taxpayers appealed this assessment, arguing that their compensation as statutory employees was correctly reported on their original return. After reviewing the case, the BFR determined that the taxpayers provided sufficient evidence demonstrating that the Department’s assessment was incorrect. As ...