SALT Report 1382 – In the latest edition of the Tax Update newsletter the Pennsylvania Department of Revenue discusses several topics relating to sales and use taxes including:
Bureau of Audits Offering Penalty Abatement
Taxpayers who cooperate with the Department of Revenue throughout the audit process and meet the same standards used by the Board of Appeals for penalty abatement will now have the opportunity to have their penalties abated at the audit level. This new process is designed to provide a faster, more efficient method of abating penalties, saving taxpayers the time and expense associated with filing an appeal at the assessment phase.
The Bureau of Audits will consider penalty abatement for eligible taxpayers who have received audit engagement letters on or after December 1, 2011. Individuals and businesses meeting the requirements will receive a penalty petition form from Audit staff near the conclusion of the audit.
The new penalty abatement procedures at the audit level will in no way limit or reduce a taxpayer’s right to appeal an audit assessment.
The Department of Revenue encourages tax practitioners to utilize its email system for all tax-related questions and information. This allows Department of Revenue agents to address electronically submitted inquiries in a more timely and efficient manner. Using the secure e-hotline, tax practitioners can submit questions without the risk of compromising taxpayer confidentiality.
Sales Tax Exclusions
The commonwealth’s sales and use tax laws provide an exclusion from sales and use tax for tangible personal property and services used in a mining operation. Extracting natural gas qualifies as mining for sales and use tax purposes. Property such as drilling equipment is considered directly used in a natural gas extraction operation. The mining exclusion may only be claimed by a purchaser who uses or consumes the property directly in a mining operation.
Corporate Tax Coupons
The Department of Revenue is no longer mailing REV-857-I coupon packets or specialty tax coupons, forms and instructions. Coupons and forms are still available on the state’s website.
The newsletter also contains a due date reference guides for a variety of taxes.
For Further Information: