In the near future, I plan to re-introduce legislation to amend the Tax Reform Code to assist PA businesses with an over-burdensome PIT examination process.

Specifically, this proposal will require the Department of Revenue to examine in person, at the physical location of the business, the requested papers and records of a taxpayer when the Department’s requests would total 25 pages or more of records. Recently, the Department has begun requesting taxpayers to print and mail copies of their PA-40 Schedule C and Schedule UE, along with all supporting documentation, for Department examination. This process is placing a significant burden on our small business community when the supporting documentation required to meet the Department’s request often amounts to boxes of information.

As means of background, a taxpayer may use PA Schedule UE, Allowable Employee Business Expenses, to report allowable unreimbursed business expenses, which can be excluded from compensation on Line 1A of the PA-40 Personal Income Tax Return. The PA-40 Schedule C is used to report income or loss from a business practice as a sole proprietor.

Please join me in co-sponsoring this legislation to assist PA businesses. 

Previous co-sponsors of HB 564: HAMM, JAMES, JOZWIAK and KEEFER
 

Statutes/Laws affected:
Printer's No. 1347 (Apr 15, 2025): P.L.6, No.2
Printer's No. 1347: P.L.6, No.2