Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article II - Sales and Use Tax › Chapter 35 - TAX EXAMINATIONS AND ASSESSMENTS › Section 35.1 - Tax examinations and assessments

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Examinations.
Tax examinations shall conform with the
					 following:
(1)
Verification of
					 returns, documents, and transactions.
The Department, by its
					 authorized agents, has the power to enter upon the premises of a taxpayer or
					 supposed taxpayer, and of an agent, representative, employe, or accountant of
					 the person, or the custodian of the person's records, for the purpose of making
					 inspections, examinations, and verifications of books, records, papers, and
					 other documents, to ascertain and assess tax imposed by the act. For this
					 purpose, taxpayers are required to admit the Department and its authorized
					 agents upon the premises, and to provide the Department and its agents with the
					 necessary means, facilities and opportunities to make inspections,
					 examinations, and verifications.
(2)
Audits
. Audits shall be
					 conducted in accordance with Chapter 8a (relating to enforcement).
(3)
Examination under oath and
					 compulsory production of documents.
The Department by its authorized
					 agents may also, upon reasonable notice, examine a person under oath concerning
					 taxable sales or use by a taxpayer, or concerning another matter which relates
					 to the enforcement or administration of the act. For this purpose, the
					 Department has the power to compel, by legal process, the production of books,
					 papers, records, or other documents, and the attendance of persons, whether as
					 parties or witnesses, whom it believes to have knowledge of the matters.
					 Hearings and examinations for this purpose are conducted in the manner provided
					 by relevant provisions of the Fiscal Code (72 P. S. §§
													1-1855).
(4)
Retention of records.
Records required to be maintained under the TRC or §
												34.2 (relating to keeping of
					 records) shall be retained for a period not less than 3 years from the end of
					 the calendar year to which they relate.
(5)
Records of nonresidents.
A nonresident who maintains records under §
												34.2 is required to maintain, keep
					 and retain the records at all times at a place within this Commonwealth, unless
					 authorized by the Department in writing to maintain the records at a place
					 outside this Commonwealth. Authorization to maintain records outside this
					 Commonwealth is conditioned upon agreement to and compliance with those
					 requirements which the Department may impose, including the assumption by the
					 nonresident of an obligation to pay the reasonable expense of examination by
					 the Department or its agents of records located outside this
					 Commonwealth.
(6)
Effect of
					 noncompliance.
Criminal and other sanctions imposed for failure to
					 register or maintain required records or permit examination of relevant
					 materials or persons are discussed in §§
												35.2 (relating to interest,
					 additions, penalties, crimes, and offenses) and 34.1 (relating to
					 registration).