Pennsylvania Board Grants Taxpayer Penalty Abatement for Sales Tax Prepayment

The Pennsylvania Board of Finance and Revenue (BFR) granted the taxpayer penalty abatement related to inadequate prepayment of expected sales tax for two monthly periods in 2024. The taxpayer, a company that produces salt for consumer purchases, was switched from required quarterly filings and prepayment to a monthly prepayment system in 2024. The company argued that it did its best to prepay the expected tax liability by looking at prior years’ data and remitting 50 percent of that amount, but the Department’s allocation of tax credit on its account resulted in underpayment. The Board found that the taxpayer had a ...