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of the Commonwealth of Pennsylvania

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    Tax Resolution Options

    If you owe Pennsylvania taxes and are past your due date, there are several options that you can pursue. The right option depends on your individual situation. This includes what type of tax is involved, the length of time that you have owed Pennsylvania taxes, and whether you’ve already received an assessment. The Department of Revenue is committed to working with taxpayers to help them resolve their tax obligations.

    Understanding Your Notice

    The department may send notices to share important information about your state taxes. These notices may tell you that you owe state taxes, ask for more information, or give you an update about your account. You may receive notices through the mail or myPATH, the department’s online tax-filing system. 

    Visit Understanding Your Notice to learn more about department notices and what action you should consider taking.

    Assessments and Appeals

    If the department adjusts your return, an assessment will be issued. If you disagree with the assessment, you can file an appeal with the Board of Appeals. 

    When filing an appeal:

    • Check your notice for an exact deadline to file your appeal, as you will have a deadline to submit the appeal and protect your due process rights 
    • Submit all relevant documents and information
    • The Board of Appeals will independently review your case

    You may also Request a Compromise during an appeal. In some cases, the Board of Appeals may agree to a compromise on the amount of liability for tax, interest, penalty, or additions administered by the department.

    Payment Plans

    If you owe taxes, the department can work with you on a payment plan. 

    Voluntary Disclosure Program

    The Voluntary Disclosure Program allows eligible businesses and individuals who have recently become aware of their Pennsylvania tax obligations to voluntarily come forward to resolve their tax issues. 

    Remember that taxpayers are not eligible for the Voluntary Disclosure Program if they are already registered with the Department of Revenue, have received correspondence from the department, or are in delinquent status. Visit Voluntary Disclosure Program to learn more. 

    Office of Taxpayers’ Rights Advocate

    The Office of Taxpayers’ Rights Advocate (OTRA) provides free and confidential assistance to taxpayers with PA personal income tax and inheritance tax concerns. OTRA can help in very specific situations, such as when a Pennsylvanian has a state tax issue related to a divorce, has a significant hardship, or has unwillingly filed a state tax return due to domestic violence or spousal abuse. 

    Remember that OTRA can offer assistance only when taxpayers have not been able to resolve their tax issues through normal, established procedures. Visit Office of Taxpayers’ Rights Advocate for more information.

    Requesting a Closing Agreement

    In specific situations, the department has legal authority to enter into a Closing Agreement with a taxpayer. This is a written agreement between the taxpayer and the department that resolves a liability for Sales and Use Tax, Personal Income Tax, or Corporate Net Income Tax. 

    The department carefully reviews each request for a closing agreement and may determine that another resolution option is more appropriate. 

    Closing agreements are not considered if:

    • The matter is under investigation or audit;
    • The taxpayer has missing or non-filed returns;
    • It is already in litigation; or
    • It was previously addressed by another tax resolution program.

    Taxpayers who wish to pursue a closing agreement should also file a timely appeal of any assessment with the Board of Appeals to protect their due process rights.