Pennsylvania Tax Developments - July 2015

This is a brief update on recent Pennsylvania tax developments. For more information, contact one of the authors or the Reed Smith attorney with whom you usually work.

Amended Return "Trap"—Court Holds That Amended Return Was Not a Petition for Refund; Possible Legislative Fix?

On June 9, the Commonwealth Court issued a decision holding that the taxpayer's amended return did not qualify as a "petition for refund" and, therefore, the taxpayer did not timely request a refund of overpaid taxes.¹

Under Pennsylvania law, a petition for refund of corporate tax must be filed within three years after payment of the tax.² In this case, it was undisputed that the taxpayer filed an amended return claiming a refund before the expiration of that three-year period, and then the taxpayer filed a petition for refund (on the Department of Revenue's petition form) after the expiration of that period.