Borough of Royersford, PA Local Taxpayers Bill of Rights

The Borough, its Tax Collector, Auditor, Solicitor or other designated representative, is authorized to examine the books and records of any taxpayer in order to verify the accuracy of any return made, or if no return was made, to ascertain whether the tax should be imposed and, if so, the amount of the tax due.

The Borough Tax Collector is authorized to examine any person under oath concerning any income which was or should have been returned for taxation, to issue subpoenas and to compel the production of books, records and papers relating to any account being examined.

The Borough, or its designated representative, may request information from a taxpayer concerning the taxpayer's compliance with Borough tax ordinances. Books, journals, invoices, documents and other accounting records utilized by the taxpayer in the ordinary course of business must be kept in a manner which will reflect actual business operations. There must be objective criteria in these books and records, as well as in underlying documents, such as invoices, to support the returns filed by the taxpayer. A taxpayer claiming an exemption or exclusion for any portion of gross receipts or other taxes, must maintain complete records which will support the validity of such claims. Such claims will be disallowed if not sufficiently proven by the taxpayer.

Except as otherwise provided herein, an initial inquiry by the Borough, or its designee, for information regarding the taxpayers compliance with Borough tax ordinances may include taxes required to be paid or tax returns required to be filed no more than three years prior to the mailing date of the inquiry notice.

However, the Borough, or its designee, may make a subsequent request for tax returns or supporting information if, after the initial request, the Borough determines that the taxpayer has failed to file a tax return, has underreported income or receipts, or has failed to pay a tax for one or more of the tax periods covered by the initial request.

(6)

In the event the Borough has sufficient information to indicate that the taxpayer has failed to file a required return or to pay a tax which was due more than three years prior to the date of the notice, the three-year limitation shall not apply and the Borough may request information for any such tax years.

(7)

The Borough may require any taxpayer to provide copies of the taxpayer's federal income tax return. The Borough shall require individuals to provide federal tax returns only where the federal tax information is reasonably necessary for the enforcement or collection of an eligible tax and the information is not available from other sources or the Department of Revenue.

(8)

Any information obtained by the Borough as a result of any audit return, report, investigation, hearing or verification shall be confidential tax information, except as provided by law. However, the information on any license or permit application shall be a public record.

Taxpayer response.

Thirty days to respond. When the Borough makes an initial request for information from the taxpayer, the taxpayer shall have at least 30 calendar days from the mailing date of the request, to respond.

Extensions. Upon written application by the taxpayer submitted to the Borough (or its Auditor, or other designee, if the request for information is from the Auditor or designee) within the initial thirty-day period, and where good cause for an extension exists, the Borough shall grant an extension of time to respond for a reasonable amount of time.

No action by the Borough within the response period. The Borough shall take no lawful action against a taxpayer for the tax year(s) in question, until the expiration of the response period.

The books, journals, invoices and other accounting records of the taxpayer as used in its ordinary course of business must be kept in a manner which will reflect actual business operations of the taxpayer. The books and records of the taxpayer must contain objective criteria to support the returns filed by the taxpayer. A taxpayer claiming an exemption or exclusion for any portion of gross receipts or other taxes, must maintain complete records which will support the validity of such claims. Such claims will be disallowed if not sufficiently proven by the taxpayer.

The taxpayer is required, at its cost, to make all records available to the Borough, or its designee, to support the returns which were filed, or should have been filed, by the taxpayer. If the taxpayer does not have records for the entire period requested for review, the Borough may utilize whatever information or records are available to reconstruct, as accurately as possible, the figures that reflect the business activity of the taxpayer for the period involved.

Audit. The Borough has the right to have a designated representative audit or examine any tax return to verify its accuracy and to assess or reassess the amount of tax due. In the event a taxpayer has failed to file a required return, the Borough has the right to have its auditor examine the books and records of the company, or such other information as is available, to determine and assess the amount of tax due.

Notice of basis of underpayment.

The Borough will notify the taxpayer in writing of the basis for any underpayment that the Borough has determined to exist, including:

(a)

The tax period(s) for which the underpayment is asserted.

(b)

The amount of the underpayment detailed by tax period.

(c)

The legal basis upon which the Borough has relied to determine that an underpayment exists.

(d)

An itemization of the revisions made by the Borough to a return or report filed by the taxpayer that results in the determination that an underpayment exists.

Unless otherwise specified by the taxpayer, the Borough shall apply all voluntary payments of taxes first to taxes owed, then to interest, then to penalty; and then to any other fees and charges.

Abatement of certain interest and penalties.

Errors and delays. In the case of an underpayment, where the Borough, or its representative, has contacted the taxpayer in writing with respect to the underpayment of tax finally determined to be due or payable, the Borough may abate all or any part of interest for any period, if the underpayment is attributable in whole or in part to any error or delay by the Borough in the performance of a ministerial act, provided that no significant aspect of the error or delay is attributable to the taxpayer. The Borough shall determine what constitutes timely performance of ministerial acts.

Erroneous written advice by the Borough.

(a)

The Borough is not required by law to provide written advice to taxpayers. However, the Borough shall abate any portion of penalty or interest which is attributable to erroneous advice furnished to the taxpayer in writing by an officer, employee or agent of the Borough acting in his or her official capacity, in the following circumstances:

[1]

The written advice was in response to a specific written request of the taxpayer.

[2]

The taxpayer reasonably relied upon the written advice.

[3]

The portion of the penalty or addition to tax or excess interest did not result from a failure by the taxpayer to provide adequate or accurate information.

(b)

Taxpayer should not rely on any advice not provided in writing.

Installment agreements. In order to facilitate collection, the Borough, at its discretion, may enter into written agreements with any taxpayer under which the taxpayer is allowed to satisfy a tax liability in installment payments. The Borough, at its election, may modify or terminate any installment agreement where:

The taxpayer has provided inaccurate or incomplete information.

The Borough believes that collection of the tax under the agreement is in jeopardy.

The Borough finds that the financial condition of the taxpayer has significantly changed and has given 30 days' notice of the finding and reasons for the finding to the taxpayer.

The taxpayer fails to pay any installment at the time due under the agreement.

The taxpayer fails to pay any other tax liability at the time the liability is due.

(6)

The taxpayer fails to provide a financial condition update as requested by the Borough.

§ 427-32 Procedure for filing and processing refund claims and taxpayer complaints.

Requests for refunds. A taxpayer who has paid a tax to the Borough may file a written request with the Borough for refund or credit of the tax.

Except as otherwise provided herein, all refund requests must be made within three years of the due date for filing the return or report, as extended, or one year after actual payment of the tax, whichever is later.

For amounts paid as a result of a notice asserting or informing a taxpayer of an underpayment, a written request for refund must be filed with the Borough within one year of the date of payment.

If no report or return is required, the refund request must be made within three years after the due date for payment of the tax, or within one year after actual payment of the tax, whichever is later.

For purposes of this section, a tax return filed by the taxpayer with the Borough which shows an overpayment of tax shall be deemed to be a written request for a cash refund if the taxpayer provides all necessary documentation to support taxpayers right to refund. If the taxpayer indicates on the return that taxpayer desires the overpayment to be applied as a credit toward other taxes, the return showing the overpayment shall not be deemed a written request for cash refund.

A request for refund under this section is not considered a petition for administrative appeal, as described in § 427-35, hereof, and shall not preclude a taxpayer from submitting a petition under § 427-35 hereof.

Interest on overpayment. All overpayments of a tax due to the Borough, including taxes on real property, shall bear simple interest from the date of overpayment until the date of resolution.

Interest rate. Interest on overpayments shall be allowed and paid at the same rate as the commonwealth is required to pay pursuant to § 806.1 of the Act[1] known as the "Fiscal Code."

[1]

Editor's Note: See 72 P.S. § 806.1.

Exceptions. No interest shall be allowed if an overpayment is refunded or applied against any other tax, interest or penalty due to the Borough within 75 days after the last date prescribed for filing the report of the tax liability, or within 75 days after the date the return or report of the liability due is filed, whichever is later.

Overpayments of interest or penalty. Overpayments of interest or penalty shall not bear any interest.