Section 3.2. Statements of policy

(a) Format. For the purposes of providing guidelines to the general public and interpreting law or regulations, the Department issues statements of policy in two forms:

(1) Revenue pronouncements. A Revenue pronouncement will be used to do any of the following:

(i) Interpret law or regulations.

(ii) Announce formally the guidelines or policies that the Department expects to implement in a future regulation or to follow in a future adjudication.

(iii) Explain an administrative procedure within the discretion of the Department.

(iv) Implement an act of Assembly if the Department finds it is unnecessary to use regulatory powers to perform its duties and responsibilities provided by law.

(2) Revenue rulings. The purpose of a Revenue ruling is to provide guidelines and interpretations by advising the public of the Department’s application of the tax laws to a general factual situation. A Revenue ruling is issued when the Department believes that broad public dissemination is appropriate to ensure uniformity in the application of the law to a common factual situation. With respect to taxes where the Auditor General has the power and duty to approve settlements, a Revenue ruling will not be issued without the review and approval of the Auditor General.

(b) Authority. Statements of policy are published as a separate part of Title 61 of the Pennsylvania Code and are issued under the authority of the Secretary, a Deputy Secretary or the Chief Counsel. The taxpayer may rely on a statement of policy only insofar as it binds the Department to follow the stated course of action. Periodically the Department may revise prospectively a statement of policy and taxpayers are cautioned to determine whether a statement of policy relied upon is current.