Amended return.

(a) A person filing a return should carefully follow the instructions which he received with the return. A person filing a return should check the return to make sure he has reported all of his income and claimed all of the credits to which he is entitled before filing his return. If, after filing a return, a person discovers that he has failed to report some of his income, erroneously claimed credits or is entitled to credits which were not claimed, the person can correct the error by filing an amended return. The person should file a new return clearly marked, ‘‘Amended Return,’’ in which the correct tax or refund is shown.

(b) The Department will review an amended return if the following apply:

(1) The amended return is filed within 3 years of the due date or extended due date of the original return.

(2) The amendments shown on the amended return involve issues other than those under appeal.

(3) The taxpayer is not challenging the Department’s policy, its interpretation or the constitutionality of the Commonwealth’s statutes. A challenge of the Department’s policy, its interpretation of the statutes or the constitutionality of the Commonwealth’s statutes must be made by filing a petition for reassessment or a petition for refund.

(c) If a tax payment was made with the original return, the amount of this payment shall be included on the amended return in the manner prescribed by instructions of the Department.

(d) If a refund was received or is expected to be received from the original return, the amount of this refund shall be shown on the amended return in the manner prescribed by instructions of the Department.

(e) Effect of an amended return on petition rights.

(1) An amended return does not replace the filing of a petition for reassessment or a petition for refund.

(2) The filing of an amended return does not extend the time limits for a taxpayer to file a petition for reassessment or a petition for refund.

(f) Review of amended return.

(1) The Department is not obligated to revise the tax due the Commonwealth upon review of an amended return. The Department’s failure to revise the tax due the Commonwealth is not appealable and does not change existing appeal rights of the taxpayer.

(2) If the Department determines an adjustment of the taxpayer’s account is appropriate, it will adjust the Department’s records to conform to the revised tax as determined and will credit the taxpayer’s account to the extent of an overpayment resulting from the adjustment or assess the taxpayer’s unpaid tax and unreported liability for tax, interest or penalty due the Commonwealth, whichever is applicable.

(g) An amended return filed with the Department must contain the following:

(1) The calculation of the amended tax liability.

(2) Revised Pennsylvania supporting schedules, if applicable.

(3) A complete explanation of the changes being made and the reason for those changes. Authority The provisions of this § 121.25 amended under section 354 of the Tax Reform Code of 1971 (72 P. S. § 7354). Source The provisions of this § 121.25 amended through February 20, 1981, effective June 23, 1979, 11 Pa.B. 726; amended January 25, 2013, effective January 26, 2013, 43 Pa.B. 535. Immediately preceding text appears at serial pages (205431) to (205432).