Pennsylvania Taxpayer Wins Big in Residency Fight
A recent decision by the Pennsylvania Board of Finance and Revenue (BFR) has left a taxpayer feeling victorious. The BFR instructed the Department of Revenue to reassess the taxpayer's account and reduce the tax bill. The central question was whether the taxpayer was actually residing in Pennsylvania in 2022.
The Dispute
The Department of Revenue initially believed the couple lived in Pennsylvania, leading to the taxation of their entire income. However, the taxpayer presented a different narrative, asserting that she lived and worked in Maryland.
Evidence Presented
To support her claim, the taxpayer provided:
- A Maryland driver's license
- Property tax bills
- Job records from a hospital where she had been employed since 2021
- School records for her child
BFR's Decision
The BFR sided with the taxpayer, stating that the Department of Revenue should have recognized the evidence. The taxpayer's proof was compelling, demonstrating that she had been residing in Maryland for an extended period. The Department should have acknowledged this and refrained from taxing her as a Pennsylvania resident.
Key Takeaways
This case underscores the importance of maintaining accurate records. If you can prove your residency, you can avoid paying taxes you do not owe. Additionally, it highlights the BFR's commitment to advocating for taxpayers when the Department errs.
