Pennsylvania Treasury Reports Success of New Tax Appeal and Mediation Process

January 19, 2026

Stacy Garrity announced that the Board of Finance & Revenue’s new tax appeal and mediated settlement process, which began in 2025, has produced measurable results for taxpayers and the state.

The updated process took effect Jan. 27, 2025, under Act 123 of 2024, which amended the Tax Reform Code of 1971. The law extended the deadline to file certain personal income tax (PIT) appeals from 60 to 90 days and added an option for mediated settlements. The Board of Finance & Revenue can also grant a 30-day extension when good cause is shown.

As of Dec. 31, 2025, the extended filing timeline allowed the Board of Finance & Revenue to decide 154 PIT appeals on their merits that otherwise would have been dismissed for jurisdictional reasons. The law also extended filing timelines at the Board of Appeals within the Department of Revenue, resulting in 141 fewer PIT appeals reaching the Board of Finance & Revenue with filing deadline issues.

By the end of 2025, there were 55 taxpayer requests and Board of Finance & Revenue recommendations for mediation. Forty-five percent of those cases were resolved through agreement between the taxpayer and the Department of Revenue. Mediation is offered at no cost to taxpayers.

The Board of Finance & Revenue also reported a reduction in appeals to the Commonwealth Court, with 378 decisions appealed in 2025 compared to 457 in 2024.

Act 123 received support from several organizations, including the Pennsylvania Institute of Certified Public Accountants, the Pennsylvania Chamber of Business and Industry, the National Federation of Independent Business, and the Pennsylvania Society of Enrolled Agents.

The Board of Finance & Revenue is an independent administrative tax court administered by the State Treasurer. It serves as the second and final level of administrative appeal in most tax cases before court review. The board consists of three members: two appointed by the governor and confirmed by the Pennsylvania Senate, and the state treasurer or a designee, who serves as chair.

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