HARRISBURG, PA — Pennsylvania’s experiment with longer filing deadlines and mediated settlements for tax disputes is delivering early results, state officials say, easing procedural bottlenecks and resolving more cases on their merits while reducing trips to court.
State Treasurer Stacy Garrity announced that the Board of Finance & Revenue’s revamped tax appeal process, launched in 2025 under Act 123 of 2024, has allowed more disputes to be heard and settled without litigation. The law amended the Tax Reform Code of 1971, extending certain personal income tax appeal deadlines from 60 days to 90 days and authorizing no-cost mediation.
In its first year, the longer timeline enabled the board to decide 154 appeals on their merits by December 31, 2025—cases that previously would have been dismissed on jurisdictional grounds. The board can also grant a 30-day extension for good cause. Parallel changes at the Department of Revenue’s Board of Appeals reduced filings with deadline issues, leading to 141 fewer personal income tax appeals arriving at the board with procedural defects.
Mediation, a new option for taxpayers and the Department of Revenue, also showed traction. Of 55 mediation requests and recommendations by year’s end, 45 percent reached amicable resolutions, officials said, trimming costs and time for all sides.
Court activity moved in the same direction. Decisions appealed to Commonwealth Court fell to 378 in 2025, down from 457 the year before.
Garrity said the changes removed red tape and improved the state’s business climate, calling the outcomes easy to measure and beneficial for taxpayers, businesses, and government alike. She credited Sen. Scott Hutchinson and Rep. Tim Briggs with advancing the legislation and urged filers to consider mediation.
Business and professional groups that backed Act 123 pointed to efficiency gains. Jennifer Cryder, CEO of the Pennsylvania Institute of Certified Public Accountants, said the reforms streamline appeals, reduce administrative friction, and strengthen competitiveness. Luke Bernstein, president and CEO of the Pennsylvania Chamber of Business and Industry, said early results show progress toward fairer, faster resolutions that help job creators avoid costly litigation. Enrolled agent Warren Hudack of Hudak & Company described the added time and mediation option as practical changes that help small businesses reach correct outcomes without rigid procedures.
The Board of Finance & Revenue is an independent administrative tax court administered by the state treasurer and serves as the second and final level of administrative appeal before court review, with limited exceptions. Its three-member board includes two gubernatorial appointees confirmed by the Pennsylvania Senate and the state treasurer or her designee as chair.
More information about the board and the tax appeal process is available at https://patreasury.gov/bfr.
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