Pennsylvania Board Abates Taxpayer’s Penalties in Sales/Use Tax Case

The Pennsylvania Board of Finance and Revenue (BFR) ordered the Department of Revenue to abate penalties assessed against the taxpayer. The taxpayer operates hospitals in the state and was issued an assessment for sales/use tax. The taxpayer challenged the assessments, arguing that the Department incorrectly reversed its use tax credits and taxed nontaxable transactions. While the Board denied relief regarding the credits and transactions due to untimely refund petitions, it determined that the taxpayer acted in good faith and without negligence, thus waiving the penalties. [Pa. Bd. of Fin. & Revenue, Docket No. 2500695, 07/17/25]

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