This notice is for our clients that have/had a PA schedule PA-UE (Unreimbursed Expenses) attached to their returns in the last couple of years, (mostly employees, as opposed to our self-employed taxpayer clients, or retiree clients).
For example, this form PA-UE may have been attached for deductions of union dues, continuing education, tools, supplies, licenses, insurance, home office, uniforms, travel, or meals for:
Account Rep, Adjunct professor, Airways Systems Support, Appliance repair, Athletic Trainer, Attorney, Auto mechanic, Carpenter, Cleaning services, Contractor, Direct sales, Educator, Electrician, Foreman, Groundskeeper, Guidance counselor, Home Inspector, Instructor, Insurance, IT Technician, Janitorial service, Reading specialist, Laborer, Landscape contractor, Licensed Blaster, Mail Carrier, Maintenance Mgr., Mechanical Engineer, Medical, Multilingual teacher, Municipal worker, Nanny, Rental consultant, Natl Park Service, Nurse, Occupational therapist, Optician, Painter, Paralegal, Paramedic, Pharmacist, Physical therapist, Physician, Practice Coordinator, Printer, Professor Emeritus, Psychologist, PT Postal Clerk, Public safety, Public Works, Ramp agent, Retail, Sales, School Aide, Security officer, Server, Service technician, Soccer Referee, Speech Therapist, Spouse occupation, Teacher, Technician, Telecommunication, Transcription, Truck Driver, Veterinary Assistant, Welder, Writer, X-ray repair
Without contacting tax preparers first, Pennsylvania has been sending notices to taxpayers (or their spouses), changing refunds or amounts due, and asking for documentation later, in certain circumstances (example: active military orders, and letters from employers). For some clients this started happening in the last couple of years.
If you paid an invoice from PA Department of Revenue, without checking with us first, please forward that invoice and a copy of the front and back of your check if you paid it, because sometimes we can reverse that charge. We’ll need your actual receipts for the deductions listed on your return, and a letter from your employer, stating that your unreimbursed expenses were/are necessary.
You can use your own spreadsheets, or we recommend ‘Dome [Expense/Mileage] Recordkeeping Products” available at most office supply stores, or online, via their site and others’ sites. http://www.domebooks.com/products/expense-mileage
REMEMBER – PLEASE FORWARD ALL GOVERNMENT NOTICES TO US WHEN YOU RECEIVE THEM.
DO NOT WAIT FOR NEXT TAX SEASON TO ROLL AROUND.
YOUR REFERRALS ARE WELCOMED AND APPRECIATED.
YEAR-ROUND – TAXES – PORTFOLIO MANAGEMENT – ROLLOVERS – LIFE and LONG-TERM-CARE INSURANCE
(Clients’ brokerage accounts & securities custodied at TD Ameritrade Institutional)
(Clients’ annuity accounts custodied at TransAmerica and Jefferson National)
Understanding Your 828 Notice
Answer ID 3211 | Published 11/14/2014 04:29 PM | Updated 03/09/2015 12:10 PM
Question: I received an 828 notice from the Department concerning my PA-40 return. What do I need to do?
Answer: Your notice states:
Please send photocopies of dated receipts to verify the unreimbursed business expenses claimed on your Pennsylvania Individual Income Tax Return.
What happened when your PA-40 return was processed:
Pennsylvania does not allow you to claim a per diem, with the exception of actual business mileage. You may only claim actual amounts for all other unreimbursed employee business expenses. Based on your Schedule UE, we believe that you have claimed a per diem or approximated amount of expenses instead of your actual unreimbursed expenses. Therefore, we have placed your return on hold until you respond to the notice.
What you need to do:
You will need to respond with the requested information in order for the department to verify the actual amount of your unreimbursed expenses. We will need you to send copies of any dated receipts or other documentation that pertain to the expenses that you claimed on your Schedule UE. In addition you are encouraged to submit an expense report or letter from your employer confirming these were expenses required to perform your job and that you were not reimbursed. (Please do not send any credit card or debit card statements as they will not differentiate between personal and business expenses. Unless you provide a detailed accounting of each line item being claimed.)
Once your information is received, it is scanned into our systems and posted to your account. It can take up to 12 weeks for the documents to be reviewed. Please note that all information will be reviewed in the order in which it has been received.
Tips to avoid this step in the future:
If you are claiming similar expenses in the future, you may want to provide a spreadsheet listing your expenses.