Hello and thank you for using Just AnswerFrom what you have stated the notice is telling you that the amount used for Business expenses is being disallowed. If you wish to appeal you have that option. You also may appeal the penalty and interest with the Board of Appeals AFTER you have received a Notice of Assessment. They assessed the penalty for not paying the tax due. The 5% rate was based on the tax due form the change of your expenses.I suggest you call the number on the notice and speak with an agent. You are normally given 90 days to appeal the assessment and showyour documentation that substantaites your claim for the deduction.
This is the first notice. Why do I have to pay interest? ...... What a agent could do for me?
The Business exp. are being disallowed because of a new law, or because did a wrong claim?
409.98 is the amount I have to pay to them?
The agent would be able to explain the exact notice content to you and assist in filing the appeal if you wished. The interest is attached because had you not claimed the expense your tax would have been more when you filed. Theer is no new law, they are disallowing because they say you are counting miles to get to your regular palce of business and not in the course of leaving that regular place and having to drive around to do business. Yes, the botXXXXX XXXXXne amount is what they are requesting.
I say call them because I am not seeing the notice and going by what you are telling me. An agent with PA would be able to pull up your account and actually tell you line for line what they are questioning.