​​​​​How can I Request a Compromise?

A petitioner may request a compromise of an appeal by submitting a Request for Compromise (DBA-10)​ with the petition for appeal or as soon as possible after the petition is filed. Learn more about Requesting a Compromise and receive step-by-step instructions by watching the video below.​

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Overview of Compromise Requests at the Board of Appeals 

Pursuant to 72 P.S. §9707, upon request from a taxpayer, the Board of Appeals has the statutory authority to consent to a compromise of the amount of liability for tax, interest, penalty, or additions administered by the department. 

In situations where a taxpayer proposes a compromise request, the Board reaches an agreeable compromise in a very high percentage of cases. 

To submit a compromise request, a taxpayer should submit the DBA-10 form available on the Board's website with their appeal. 

There are two bases for the Board to agree to a compromise:

1. Doubt as to liability.
2. The promotion of effective tax administration. 

What does “Doubt as to Liability" mean?

While the Board will review the facts and circumstances for each individual taxpayer, generally doubt as to liability will include situations with varying interpretations of the law, situations where the Department failed to consider all the evidence presented; and/or situations where new evidence is available to support a change. 

An example of doubt as to liability might include the following situation that may occur for a small business or individual taxpayer: 

You or your business suffered a disaster (such as books and records were destroyed in a fire, flood, or other natural disaster). You did your best to accurately file your return, however, the Department reviewed the return and issued an assessment disallowing any claimed expenses due to lack of supporting records. You are unable to reconstruct your books and records, but you can provide an explanation that justifies or approximates a reasonable reduction to a portion of your assessment. 

What the Board of Appeals Cannot Compromise 

Pursuant to the law, the Board is not able to compromise:

1. denials of property tax/rent rebate claims.
2. denials of charitable exemptions.
3. revocation of sales tax licenses.
4. appeals of taxes covered under the Gaming Control Act.

 Additionally, certain situations are not eligible for compromise:

1. any compromise request demanding 100 percent relief.
2. any “hardship" compromise request (based exclusively on a taxpayer's financial situation or inability to pay; this is a collections matter).
3. if a taxpayer has not filed any Pennsylvania tax returns.
4. if a criminal prosecution is pending. 

A Few Compromise Tips 

The Compromise Request process at the Board of Appeals is not a “tennis-match" style of negotiation. The Board expects and assumes the taxpayer is putting forth their best compromise offer. 

If the Board is unable to accept the offer presented by the taxpayer, but feels the matter is not too far away from reaching a compromise, in some situations, the Board may respond with a counterproposal. This should be viewed as a best and final proposal from the Board. Failure to accept such a proposal will likely terminate the compromise request review and the Board will move forward with a decision on the merits of the issues in the appeal. 

Clearly stating your compromise offer (including proposed relief on tax, penalties, and interest) on the compromise request form (DBA-10), as well as prompt responses to any clarifying questions from the Hearing Officer assigned to your appeal, will assist in the compromise process. 

Please be advised that the Hearing Officer will not advise anyone on the appropriate percentage relief on initial compromise requests. 

If you have already filed an appeal and you have questions about the compromise process at the Board, please contact the Hearing Officer assigned to your appeal.​​