Pennsylvania Society of Tax & Accounting Professionals (PSTAP) Q & A with Pennsylvania Department of Revenue

In response to a new Pennsylvania Department of Revenue project that involves performing desk reviews on more than 46,000 Schedule C taxpayers (self employed business owners/sole proprietors), the Pennsylvania Society of Tax & Accounting Professionals (PSTAP) met with Department officials on August 16th in Harrisburg, PA to ask questions and seek clarity and guidance for their members, whose self-employed clients have been impacted by these reviews.

PSTAP representatives Richard Kelly, CPA, President (West Chester); Maurice Brubaker, EA, Chairman, Committee on Cooperation with the PA Department of Revenue (Lewistburg); and Sherry DeAgostino, the organization’s Executive Director, met with PA DOR representatives in Harrisburg to address a comprehensive list of topics. The meeting transcript included a wide-range of questions including those focusing on how returns were selected for review, the timframe/backlog of the Department’s decisions, the communication process throughout the review process and after, acceptable taxpayer documentation and the appeals process as well as many others. PA DOR representatives also provided facts and statistics about returns that were suspended for review as well as guidance on what practitioners and taxpayers can expect from PA DOR going forward.

James Tice, EA, President Elect, PSTAP, responded to news of the meeting by stating, “As is the case with most tax practitioners, my clients look to me for advice. The Society keeps me informed, so I in turn can keep my clients compliant and grow my practice.” Tice continued, “The Schedule C notices have been a frustrating and time-consuming experience for its recipients due to the volume of photocopying documentation and the timeframe for resolution. The Society has given its members insight to efficiently complete the compliance process.”

Sherry DeAgostino, Executive Director, PSTAP added, “Our practitioners and the many taxpayers who are their clients were struggling to navigate this process as the Schedule C is not something at which the Department of Revenue has traditionally looked.” She continued, “We saw a real need for clarification and to have our questions addressed so that our members could serve the needs of their clients in the most effective and efficient way. While we were able to obtain some guidance for our practitioners, there are still inconsistencies within the process that will continue to present a challenge. We will continue to monitor the situation, listen to our member feedback and advocate on their behalf. ”

About the Pennsylvania Society of Tax & Accounting Professionals

The Pennsylvania Society of Tax & Accounting Professionals is a professional member-driven organization that provides education, information, tools and resources to more than 2,000 members throughout the Commonwealth. With its inception in 1946, PSTAP, then PSPA (Pennsylvania Society of Public Accountants) was originally created to serve the needs of Public Accountants. Today, however, their membership is comprised of certified public accountants (70%), public accountants, enrolled agents and tax practitioners. The PSTAP prides itself on advocating for and representing the interests of sole practitioners and smaller sized accounting firms. For information about how to join the PSTAP, or the many benefits associated with membership in the PSTAP visit www.pstap.org or call 800-270-3352.