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    Board of Appeals

    Bonds and Security

    Overview

    If you’re appealing a Sales and Use Tax assessment with the Board of Appeals and the amount is more than $500 and still unpaid, you may be required to provide a bond from a certified surety company. This bond helps ensure that if your appeal is unsuccessful, the Commonwealth can collect any taxes or penalties that are owed.

    Similarly, if you’re filing a tax appeal with the Commonwealth Court and the unpaid assessment is more than $500, you’re required to post a bond equal to 120% of the current balance due. This also ensures the Commonwealth can collect the amount owed if the appeal is unsuccessful.

    In both cases, there is a formal process to request a waiver of the bond requirement. You can find more information about this process in:

    Requesting a Waiver of Security from the Board of Appeals

    If you’re required to post a bond for your tax appeal but want to request a waiver, you must provide financial information to the Board of Appeals within 20 days of the Board’s request. This information helps the Board determine the credit of the assessed person or business.

    • Businesses: Company balance sheet showing current assets and liabilities (Form 1120 Schedule L), or REV-484 (Statement of Financial Condition for Businesses), or other audited financial statements.
    • Individuals: REV-488 (Statement of Financial Condition for Individuals), or a personal statement listing all assets, liabilities and net worth.

    Once the financials have been reviewed by the Board: 

    • If the Board determines that collection of tax is not at risk, it will give notice that no security or bond is required. In that case, the appeal will proceed without further action.
    • If the financials provided are incomplete, insufficient, or not submitted on time, a bond will be required. In that case, security or a bond must be submitted within five business days of receiving the notice.

    A surety bond must be issued by a company authorized to operate in Pennsylvania and approved by the Commonwealth’s Insurance Commissioner. The bond must be for 120% of the current balance due.

    If security is required, but is not submitted on time, a bond lien will be filed in the appropriate county.

    Additional Bond and Security Information

    If your company’s financial information is not enough to show that the Department can collect the taxes owed, you have a few additional options that may help meet the security requirement.

    If the financials were found to be insufficient, but you believe there’s more context or explanation needed, you may request a hearing. The request must be submitted in writing and can be emailed to the Board.

    You can also provide an Irrevocable Standby Letter of Credit as another form of acceptable security.

    In limited cases, the Board may allow you to submit a significant payment toward your balance as a show of “good faith.” This can reduce the amount owed and may be considered in place of a full bond.