Collections Agencies
Keystone Collections GroupHeadquarters
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Complaints
This profile includes complaints for Keystone Collections Group's headquarters and its corporate-owned locations. To view all corporate locations, see
Customer Complaints Summary
- 215 total complaints in the last 3 years.
- 63 complaints closed in the last 12 months.
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Initial Complaint
Date:06/25/2023
Type:Billing IssuesStatus:ResolvedMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Please see the attached Word file that describes our struggles against Keystone Collections tax agency, who has been claiming my wife and I owe more than 1 year's worth of earned income tax for only 65 days of residence in Chester Springs PA, in 2019 - when our newly built townhome was ready for move-in (October 2019). PA Earned Income Tax law states we only pay the tax collector for the school district of our home residence, for the number of days we live in our home.
Keystone is currently garnishing my wages, despite 3 times at showing evidence of full EIT payments - myself, plus 2 independent CPAs - proving them wrong - despite certified letters, and so forth.
We lived in 3 PA municipalities in 2019 due to selling our home and downsizing, and we needed to rent temporarily due to the builder being several months late. In short - the first 2 municipalities' taxes were administered by Berkheimer - who has not had any problem with our filings at all (verified by the Exton PA office).
Keystone Collects has improperly garnished $1383.32 from my wages so far - they finally sent a letter last week saying "my account is reconciled" - zero word however on when they will pay me back, on when or if they will stop garnishing wages - literally zero, nothing.
In addition, Keystone Collects also tried to fine me for delinquent taxes allegedly owed on our townhome for tax year 2017 - our home didn't exist until October 2019. It took me quite a lot of convincing for them to believe me.
As noted in my attachment, Keystone Collects seems to be doing this on a pervasive basis - wildly inaccurate and aggressive collection practices - our previous Phoenixville PA CPA is reporting quite a few problems for their customers for 2019 and 2020.
Thank you for your help in this matter.
-**** *** **** *****Business Response
Date: 07/06/2023
Dear *** ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In his complaint, the complainant advised that his wages
were garnished for the collection of delinquent local earned income taxes. The
complainant advised that he and his spouse were part year residents of
Keystone’s taxing jurisdiction and that they did not owe the reported
delinquency. Further, the complainant advised that Keystone reconciled his
account but has not released the wage garnishment. Please know that I have
thoroughly reviewed the complainant’s account.
As a preliminary matter, please be
advised that Keystone Collections Group is the duly appointed Tax Officer for
the Chester County Tax Collection District. In this capacity, Keystone is
responsible for the administration and collection of local earned income taxes.
Please know that the Local Tax Enabling
Act (“LTEA”) authorizes the collection of delinquent local earned income
taxes by wage garnishment. 53 P.S. §§ 6924.702-703.
Pursuant
to the information exchange mandate of the LTEA, Keystone is provided with
limited earnings information by the Pennsylvania Department of Revenue (“DOR”).
Such information is compared with Keystone’s records to identify potentially
delinquent accounts. As the complainant did not file a tax return with Keystone
for the 2018 tax year, and the 2019 withholdings Keystone was provided did not
satisfy the complainant’s reported tax liability, a delinquency was identified.
The complainant was issued initial
delinquent local earned income tax notices on May 27, 2022 and August 12, 2022.
In response, the complainant submitted documentation evidencing nonresidency
for the 2018 tax year whereupon said year was closed. However, as the income
reported by the complainants for the 2019 tax year did not equal what was
reported by the DOR, for the entire year, my office requested further
documentation from the complainants. The documentation supplied by the
complainants’ CPA did not account for all income reported by the DOR and a Notice
of Intent to Garnish Wages was sent to the complainant via Certified Mail
on January 5, 2023. The complainant and his CPA were both advised of the income
discrepancy. The complainants did not respond further, and the Wage Garnishment
was sent on May 4, 2023.
In
response, the complainant and his spouse contacted both Keystone’s clients and
Berkheimer, the tax administrator for the other political subdivisions in which
the complainant resided in 2019. Through these communications, the
complainant’s account was closed based upon his exact residency dates. The
account was closed on June 8, 2023. On the same day, a Keystone representative
placed a courtesy call to the complainant and advised that the account was
reconciled.
At
the same time, a Notice of Release was sent to the complainant’s employer. All active garnishment communications
are made directly with the taxpayer’s employer, who is tasked with accounting
for all garnishment payments. For this reason, the complainant was not issued
the Notice of Release. However, said
notice was issued the same day the complainant’s cleared letter was issued.
To date, Keystone has not received
any garnishment payments from the complainant’s employer. Any funds received
from the complainant’s employer will be refunded to him directly.
I
appreciate the opportunity provided by the BBB to resolve the concerns of
taxpayers and improve our processes.
Thank
you for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselCustomer Answer
Date: 07/10/2023
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.Thank you for the replies. I will need to reject the response from Keystone Collections, on multiple counts.
First – at its simplest, which you continue to state in the reply – is that “the income reported by the complainants for the 2019 tax year did not equal what was reported by the DOR, for the entire year, my office requested further documentation from the complaintants”.
It is very simple: my wife and I reported $262,646 as our gross compensation on our PA form, with a few other taxable items bringing the total to $262,702. Keystone Collects is saying we owe a full year’s worth of income for the 65 days we lived in Chester Springs – which is completely, wholly inaccurate – a taxpayer only owes for the number of days they lived in the taxing district (we lived in 3 separate ones, each with different tax rates – the other 2 taxing districts were paid, and are administered by Berkheimer). If Keystone’s numbers are accurate – which state we owed $3283.78 in EIT taxes, and the EIT rate is 1.25% - my wife and I would then have needed to report a combined yearly income of $1,473,758 – clearly we earned a small fraction of that; i.e. your accountants have not factored in the fact we only lived in your tax jurisdiction for 65 days.
Two independent CPA firms, Berkeimer and myself have verified we properly paid our 2019 EIT taxes; the CPAs and I have endlessly provided documentation and communication– to no avail – until my wages were garnished. Literally nothing could convince your accounting team they were grossly wrong – I need a written apology, as requested by ******* ***** CPA.
Quotes from both CPAs: “I called them, and they literally made no sense, they were unintelligible” (TaxTacklers CPA). ******* *****, CPA/MBA in his certified letter to Keystone: “Accordingly, please refund the amount above and issue an apology to the Moore’s for the massive administrative inconvenience and expense that you caused them to fight against truly incompetent tax collection and egregiously aggressive collection efforts on your part.”
Secondly – my company’s payroll asserts with certainty Keystone has cashed both checks, each one for $691.66, for a total of $1383.32. The timing of Christopher’s statement that Keystone hasn’t cashed any checks is most likely due to timing. In short, *** payroll has sent checks, does not have the funds, and I trust Keystone or its partner OneSource Virtual certainly have a proper process for refunding me in a timely manner. I will include screenshots of the *** Payroll communications below, and will forward the email to *****, with the attached Excel sheet with transaction dates and IDs, check numbers, and so forth.
In brief, I will not close this complaint until I receive my funds, and, am issued a written apology.
Thank you,
-******* ***** July 10 2023
Business Response
Date: 07/13/2023
Dear *** ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In rejecting my office’s response, the complainant
reiterated his assertion that Keystone garnished his wages when no tax was due.
As explained previously, upon my
office’s review of the complainant’s tax return, the income reported by the
complainant and his spouse on the two (2) tax returns supplied to Keystone for
the 2019 tax year did not equal the total income reported by the DOR. In order
to verify the information contained on the tax return, pursuant to Keystone’s
statutory rights and obligations under 53 P.S. § 6924.509(f)(1) and (4), my
office requested further documentation from the complainants.
More specifically, my office
requested residency information associated with the portion of the year in
which the complainants claimed to reside outside of Keystone’s taxing
jurisdiction. Keystone was ultimately never provided with documentation, such
as the tax return filed with Berkheimer or documentation evidencing residency
in the Berkheimer taxing jurisdiction, in support of the complainant has his CPAs’
claims that he resided outside of Keystone’s taxing jurisdiction. As such,
Keystone was unable to completely verify the complainant’s income for the
entire tax year.
Nevertheless,
the account was closed on June 8, 2023 as the complainant’s local earned income
tax obligation was met. On the same day, a Notice
of Release was sent to the complainant’s employer.
I have located the funds received
from the complainant’s employer, and they will be refunded directly to the
complainant shortly. Any additional funds received from the complainant’s employer
will be refunded to him directly.
I
appreciate the opportunity provided by the BBB to resolve the concerns of
taxpayers and improve our processes.
Thank
you for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselCustomer Answer
Date: 07/19/2023
** ******* ****** ** ******** **** ***** ********* **** ********** ** *** ********** ********* ** *** ***** *** *** ****** ** ****** ******* ****
Dear Better Business Bureau:Thank you for your help and assistance reviewing my complaint and helping to resolve this seemingly intractable situation.
I do have an important set of responses to our previous communication, in the MS-Word attachment - I kindly request reading them in reference to complaint ID ********. I find that this resolution is satisfactory to me.
Regards,
******* *****_________________________________________________________________________________-
ADDITIONAL INFORMATION FROM CONSUMER:
Dear ** ******* *********** - July 18, 2023
First, I want to say I appreciate Keystone’s recognition that indeed our 2019 taxes were paid in full, despite the dispute, and, we did receive a refund for all garnished wages on Monday. I will consider this dispute closed.
As this dispute has been draining and troubling to me, it is important for me (as it can help future taxpayers avoid scenarios like my own) to challenge two statements from our previous correspondence so that future taxpayers might not encounter the same unfortunate series of events.
I would also like to add some constructive recommendations (by both sides) at the end please.
1. July 10 (1st reply from Keystone Collects):
“The documentation supplied by the complaintants’ CPA did not account for all income reported by the DOR and a Notice Of Intent to Garnish Wages was sent to the complainant via Certified Mail on January 5, 2023”.
Simply: we were never notified of this level of detail until July 2023 – all along, the Keystone accounting department stated in vague terms (paraphrased) ‘the totals you provide do not match the PA Department of Revenue totals’. Zero details were provided; Keystone accountants never informed us what the differing PA DOR totals were. We only had 2 W2s, no other reportable income, and were baffled.
This vagueness seems to be the root cause of this entire situation. I visited the Berkheimer Exton office again. The office manager says when PA DOR numbers rarely mismatch (usually due to an early 401K withdrawal, and taxpayers don’t realize this is taxable income – not our situation) – Berkheimer *always provides the taxpayer with details (discrepancy amount, source or cause) so that the situation can be resolved.
The vagueness caused confusion with our Phoenixville accountant – please see the attached email, where he states the non-matching numbers are due to the 3 municipalities aggregate totals – not missing revenue.
Finally, and possibly oddly – in the multiple threats to garnish my wages, the same combined income figure we had reported to Keystone was used in Keystone’s garnishment notifications - not a higher or discrepant figure from the PA DOR previously inferred! This is shown in the attachment documents.
2. “The complaintant and his CPA were both advised of the income discrepancy. The complaintants did not respond further, and the Wage Garnishment was sent on May 4, 2023”
Unfortunately, we have no record of this advisement, either in emails or writing. We were never informed of anything as precise as an “income discrepancy” until July of this year – only that totals from the PA DOR do not match, which again caused confusion that our CPA clarified in January.
To reiterate, the same income we first reported to Keystone was used in the wage garnishment statements – not any higher or discrepant amount!
What was astonishing (and opaque to both CPAs and myself) is why, for whatever type of alleged discrepancy there was, did the Collections department decide to send a delinquent notice for the entire tax year (we only lived in Chester Springs for less than 1/6 of the year) – and not the difference between the (unstated) income discrepancy? If any discrepancy existed, we should have only paid any small difference, not be bumped up into triple-overdrive mode and be charged for the full year.
Finally, we were told last week that we owed Keystone proof we didn’t live in Chester Springs during the time we stated we lived in Berwyn and Conshohocken – this had never been communicated to us in any form until last week, and, as explained below, Keystone had the documents in their possession to prove what they needed.
Not only had our Phoenixville CPA included our tax forms and payments to Berkheimer (Conshohocken and Berwyn) in his January certified letter which should have proven residency, Keystone also had in their possession our ALTA (American Land Title Asso.) form from our previous dispute – which we were taxed for our townhouse that didn’t exist in 2018 – our Berwyn address was on it and is dated early 2019 when we purchased our unbuilt townhome.
Finally, if I could recommend some steps by both sides which may help avoid these disputes:
If any revenue discrepancy exists, clear and precise data needs to be provided to the taxpayer – i.e. amount, source of income or discrepancy, and what needs to be done to rectify it, in writing.
If additional proof of residency (or non-residency) is missing, a separate notification in writing or email for traceability should be sent to the taxpayer.
Taxpayers shouldn’t assume, like my CPA and I did, that the situation was being resolved – that our explanation sent in January was sufficient. We were clearly not just going to “pay up” as demanded - we should have sent additional certified letters to ask for clarification more aggressively.
Thank you both again for helping resolve this dispute.
Kind Regards,
-**** *****Initial Complaint
Date:06/12/2023
Type:Service or Repair IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
I can not get anyone from Keystone collections to drop a bill that I do not owe. For over a year now, they have been trying to garnish my wages for "Mcguffey School District' taxes, from 2018.
Although in 2018, I lived at 119 Shidler run rd Amity Pa 15301. Then rented at *** **** **** ** ***** for the rest of the year from June into 2019. All my taxes where paid when I filled, and nothing is owed ...
I can not get them to understand this, and looking at their reviews online they commonly scam others exactly like this as well.
Please help me to know what I can do, as currently I can not afford to loose an entire pay check to them.Business Response
Date: 06/20/2023
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In her complaint, the complainant advised that she was
issued a Notice of Intent to Garnish Wages from Keystone seeking payment for delinquent local earned income taxes
(“EIT”). The complainant advised that she does not owe the taxes based upon
residency. The complainant also advised that her taxes were paid when she filed
for the tax year in question.
Please
know that I have thoroughly reviewed the complainant’s account. The Local Tax Enabling Act (“LTEA”) requires all taxpayers making earned income and/or net profits
to file a local EIT return and to remit any outstanding tax liability with
their resident tax officer. 53 P.S. § 6924.502(c). Per my review of the
complainant’s account, she has never filed a tax return with Keystone.
Pursuant to the information exchange mandate
between Keystone and the Pennsylvania Department of Revenue (“DOR”), Keystone
is supplied with limited earnings information used to identify unpaid or
underpaid accounts. See 53 P.S. § 6924.509(g). Based on a comparison between
this information and Keystone’s records, this discrepancy was identified. Understanding
that the information supplied by the DOR may be inaccurate, Keystone provides
taxpayers with ample notice prior to the initiation of adverse legal or
collection action. Through the LTEA, Tax Officers such as Keystone are vested
with the right to request documentation to verify the accuracy of a tax return,
or if no tax return was filed, to ascertain the amount of tax due. See 53 P.S.
§ 6924.509(f).
In fact, the delinquent notice issued to the
complainant includes common scenarios in which taxpayers may not owe the tax,
such as non-residency. The notice directs taxpayers with such disputes to
submit all pertinent documentation to Keystone for review.
In response to this complaint, I reviewed the
complainant’s account and communication history. In the complainant’s correspondence
with Keystone, the complainant was advised to provide documentation indicating
that she did not live in Buffalo Township during the tax year. The complainant
did not provide this documentation. Nevertheless, based upon the information in
her complaint and from an independent review, Keystone was able to establish
her residency in Amwell Township during the year in question. However, Amwell
Township is contained in the Washington County Tax Collections District, and is
also served by Keystone as Tax Officer. Accordingly, the complainant’s
delinquent tax liability remains, albeit to different taxing bodies.
Please know that the complainant’s Buffalo Township
account has been closed. She will be issued a delinquent notice for the same
tax year for Amwell Township / Trinity Area School District.
It is crucial that taxpayers file tax returns with
their resident Tax Officer in accordance with their statutory obligation. The
filing of a tax return would avoid issues the complainant has outlined in her
complaint. If the complainant disputes the imposition of tax, she may supply
Keystone with documentation as previously requested. Keystone’s online Pay
systems allows taxpayers to conveniently and securely upload documents. Upon
receipt, my office will review and adjust the complainant’s account, if
necessary.
I appreciate the opportunity provided by the BBB to
resolve the concerns of taxpayers and improve our processes.
Thank you for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselCustomer Answer
Date: 06/26/2023
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.While I do agree with the McGuffey school district’s taxes not being owed for 2018, I do not agree with being furtherly charged. As I have paid all due taxes when I filled my 2018 taxes. Including the school tax on the location I was living at.
Regards,
******* ***********Business Response
Date: 07/06/2023
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. By further response, the complainant advised that her
local earned income taxes were “paid when she filed” for the tax year in
question.
Previously, in response to the complainant’s
original complaint, my office adjusted her account to reflect her residency in
a different political subdivision than originally reported. Accordingly, I
stated that “the complainant’s delinquent tax liability remains, albeit payable
to different taxing bodies” and the complainant would be issued a new
delinquent notice. In response, the complainant reiterated that her taxes were
paid when she filed her taxes.
As
explained previously, the complainant has never filed a tax return with
Keystone in accordance with her statutory requirement. The Local Tax Enabling Act (“LTEA”) requires all taxpayers making earned income and/or net profits
to file a local EIT return and to remit any outstanding tax liability with
their resident tax officer. 53 P.S. § 6924.502(c).
Moreover,
Keystone has not received local earned income tax withholdings sufficient to
satisfy the complainant’s reported tax liability. If the complainant believes
she paid the tax, she may supply Keystone with documentation as previously
requested. Keystone’s online Pay systems allows taxpayers to conveniently and
securely upload documents. Upon receipt, my office will review and adjust the
complainant’s account, if necessary.
I appreciate the opportunity provided by the BBB to
resolve the concerns of taxpayers and improve our processes.
Thank you for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselInitial Complaint
Date:05/30/2023
Type:Billing IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Keystone trying to collect back taxes from 2016 by garnishing my wages after I retired and now working part time and employer upset by asking why I did pay my taxes also keystone saying I was a airline machinist although I work as maintenanceBusiness Response
Date: 06/30/2023
Dear *** ******:
Thank you
for contacting my office regarding the above-referenced complaint. The complainant alleges that Keystone has
garnished his wages for a local tax.
Please know that I have reviewed the complainant’s account and have
determined that Keystone has instituted a wage garnishment to collect unpaid
per capita and occupation taxes.
As a preliminary
matter, Phoenixville Area School District, pursuant to the Local Tax
Enabling Act and Pennsylvania Public School Code, assesses a per capita tax
on all adult residents of the District.
Additionally, the District assesses an occupation tax on all employed
residents of the District based upon an occupation assessment determined by the
Chester County Assessment Office. The
taxes are assessed on all residents of the District as of July 1 of a given tax
year. Pennsylvania law authorizes the
collection of delinquent per capita and occupation taxes by wage
garnishment. 53 P.S. §§
6924.702-703.
A review of
the complainant’s account indicates that Keystone has sent him a multitude of
notices informing him of his responsibility to pay these taxes. Despite these notices, the tax has not been
paid. If the taxpayer feels that they
should not be responsible for the tax because of a qualified exemption, they
can submit the necessary paperwork to Keystone for review.
Additionally,
complainant states that his occupation was in maintenance while Keystone is
assessing him the occupation tax as an airline machinist. As stated above, an individual’s occupation
is determined by the Chester County Assessment Office, not Keystone. Any individual seeking to appeal their
occupation can do so with the Chester County Assessment Office.
Thank you
for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselInitial Complaint
Date:05/26/2023
Type:Billing IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Keystone Collection Agency is harassing my parents about a per capita bill for a property I haven't lived in in almost a decade. My parents are in their 80's and Keystone continues to harass them about this bill.
They are very confused and keystone continues to harass them.Business Response
Date: 06/02/2023
Dear *** ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In his complaint, the complainant advised that Keystone
has “harassed’ his parents with delinquent notices for a “per capita tax for a
property in which [the complainant hasn’t] resided for almost ten years.”
Please know that I have thoroughly reviewed the complainant’s account.
Please be advised
that this matter concerns the complainant’s delinquent earned income tax
account, not per capita or real estate taxes. Keystone serves as the duly
authorized Act 32 Tax Officer for the Delaware County Tax Collection District.
In this capacity Keystone administers and collects local earned income taxes
from all communities within the taxing district that assess an earned income
tax. The Local Tax Enabling Act (“LTEA”) requires all Pennsylvania resident taxpayers making earned income
and/or net profits to file an annual local earned income tax return with their
resident Tax Officer. 53 P.S. § 6924.502(c). Per my review of the complainant’s
account, the complainant has never filed a tax return with Keystone.Pursuant to the information exchange
mandate of the LTEA, the Pennsylvania Department of Revenue (“DOR”) supplies
Keystone with limited earnings information to verify tax filings and identify
potential delinquent accounts. After receipt of this earnings information,
which pertained to tax year 2014, Keystone issued the complainant an initial
delinquent notice on November 15, 2017. The complainant did not respond to this
notice or otherwise reconcile his account. Follow-up notices were issued on
April 17, 2022, November 7, 2022 and most recently on May 16, 2023. These
notices were mailed to the address Keystone had on file for the complainant,
which evidently belongs to his parents.Keystone makes every effort to
resolve the concerns of taxpayers. To ensure the highest level of customer
service, all phone calls are recorded, and taxpayers are advised of the same
prior to the phone call. Per my review, the complainant called Keystone at
least four (4) times on Friday, May 26, 2023. I have personally listened to
these phone calls. In each case, before the Keystone representative could
properly explain the issue or assist the complainant, he engaged in abusive and
vulgar language. On two (2) occasions the complainant threatened physical
violence against Keystone’s employees. Pursuant to Keystone’s policy, all calls
were terminated by the Keystone representative due to the complainant’s coarse
language and violent threats. Any future threats made against Keystone
employees will result in police intervention.As is clearly explained in every
notice sent to the complainant, he is welcome to submit documentation to
Keystone if he disputes that tax is due. A bona fide dispute could be based
upon residency, non-taxability of income, or the availability of credits for
tax paid to Philadelphia or another state. Again, this information is clearly
presented to the complainant in the notices.Based upon the complainant’s
behavior, Keystone will no longer assist the complainant over the phone. Any
disputes may be submitted to Keystone in writing, and supported by documentary
evidence.Finally, I note that the
complainant’s address has been updated, so any future delinquent tax notices
should be issued to the complainant’s address.
I
appreciate the opportunity provided by the BBB to resolve the concerns of
taxpayers and improve our processes. I would encourage any individual with a
tax concern to remember that Keystone employees are humans and are trying to
assist taxpayers. The use of profanity
and threats of violence will not be tolerated.
Thank
you for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselCustomer Answer
Date: 06/06/2023
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.I haven’t lived at *** ********* ***** since 2009, I moved to ****** **** ************. I paid all of my taxes accordingly.
I lived at the ******* ******** **** *** ****, the ****** ****** and Then ***** and ***** **.
I moved to ** in 2015.
This Keystone company is sending collection letters to my elderly parent in ****** **. I do not have my address blocked but they choose to harass my 87 year old Father and my 80 year old Mother.
If this company was legit they would have secured my address. I never listed my parents address as mine, my information is fully transparent.
This company seems to try to intimidate elderly people to get money.
Their long winded excuses are specious. They put my parents in a state of worry that they really can’t navigate at their age.
I 110% support my complaint and my next course of action is to sue this keystone collections for the duress they caused my parents and the problems it has caused between me and my parents!!
Regards,
**** ******Business Response
Date: 06/07/2023
Dear *** ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In rejecting my office’s response to his complaint, the
complainant reiterated that Keystone has “harassed’ his parents and contended
that he does not owe the delinquent taxes outlined on the previously issued
delinquent notice.
Please know that
all delinquent notices were issued to the complainant, in his name, and were
not addressed to his parents. Importantly,
Keystone has no record of the complainant’s parents. Accordingly, any claim
that Keystone has “harassed” his parents is simply untrue. After the contact by the complainant,
Keystone is now aware that delinquent notices were mailed to the complainant’s
parents’ address. Keystone utilizes NCOA Address Verification, a service
provided by the United States Postal Service, that matches names and addresses
to ensure accurate mailings, particularly when several years may have elapsed
between the tax year and delinquent notification. As stated above, all
delinquent notices were addressed to “**** ** ******” and were not addressed to
complainant’s parents. Nevertheless, as detailed previously, the complainant’s
address has been updated so any future notices will be mailed directly to him.As an Act 32 Tax Officer, Keystone
is afforded broad auditing powers including the right to request information to
verify the accuracy of a tax return, or if no tax return was filed, to verify
that no tax is due. See, 53 P.S. §
6924.509(f). Accordingly, Keystone has acted within its statutory powers in
sending delinquent inquiry notices and requesting documentation from the
complainant.To date, the complainant has
supplied Keystone with no documentation in support of his dispute. The
complainant is welcome to submit documentation to Keystone if he disputes that
tax is due. A bona fide dispute could be based upon residency, non-taxability
of income, or the availability of credits for tax paid to ************ or
another state. All account information is detailed on the notices issued to the
complainant. Based on the complainant’s profane
language and threats of violence, any dispute must be in writing.I
appreciate the opportunity provided by the BBB to resolve the concerns of
taxpayers and improve our processes.
Thank
you for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselInitial Complaint
Date:05/26/2023
Type:Product IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
I have been dealing with keystone collections since the middle of 2021. They have sent multiple letters, each time I have disputed. According to them, TurboTax wasn't providing the correct documentation to the DOR. I sent them everything from 2015 onward, including 1040s and all of the W2s. They were aware of my current address from previous mailings, however sent a garnishment of wages letter to an address that I haven't lived at since early 2022. Additionally, it was the incorrect street address, which meant the post office never sent this to either address and I never received it. I only learned of this after they had taken money from my current employer for a "missing" w2, because they won't accept 1040 forms from TurboTax, according to Keystone. They have harrassed me time and time again for the past 3 years for eight years of documentation. I have sent them all of the tax documentation in bulk, and they continue to send new mail stating they don't have it for a certain year, to which I have to call and tell them to look at the massive file in my account. I am sick of the harrassment after providing over 20 documents via their web service AND via mail.
Recently, it was found that I was correct again and that they owed me back $260 of the garnished wages that they took at the beginning of April. I was sent $198 after 3 weeks of "processing". However, when contacting them on 5/26/23, they stated that the $62.11 taken out of my paycheck on 4/28/23 was still "processing" and that they would mail the letter by the end of next week and I would receive it in 2 weeks time. This is 5 weeks after garnishment
How are they allowed to take your money almost instantaneously, but take five weeks to mail your money back to you after proving them wrong? How are they getting peoples names? I've spoke to Turbotax as well, and none of them were aware that Keystone was claiming they don't send the dor the correct information? If this continues I will be seeking legal counsel.Business Response
Date: 05/30/2023
Dear *** ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In his complaint, the complainant advised that he has
received numerous delinquent local earned income tax notices from Keystone,
which he disputes. The complainant further advised that his wages were
garnished and that he is due a refund from monies taken in error. Please know
that I have thoroughly reviewed the complainant’s account.
As a preliminary matter, Keystone serves as the Act
32 Tax Officer for the Allegheny North Tax Collection District. In this
capacity, Keystone administers and collects local earned income taxes from all
municipalities and school districts, including the taxing jurisdictions at issue
here, within the District that assess an earned income tax.
Per my review, the complainant has never filed a
local earned income tax return with Keystone. Pursuant to the information
exchange mandate of the Local Tax Enabling Act (“LTEA”), Keystone is
supplied with limited earnings information from the Pennsylvania Department of
Revenue (“DOR”) used to identify unpaid or underpaid accounts. See 53 P.S. §
6924.509(g). Based on a comparison between this information and Keystone’s
records, several discrepancies were identified.
Moreover,
Turbo Tax and similar tax preparation software have not affiliation with Tax
Officers such as Keystone. In fact, these software companies typical provide
disclaimers that local tax returns must be filed separately. Accordingly, all
Pennsylvania residents with taxable earned income and net profits are required
to file a local earned income tax return directly with their resident Tax
Officer. In his complaint, the complainant advised that Keystone does not
accept “1040 forms from TurboTax.” The Pennsylvania Department of Revenue’s
1040 form is specifically designed to address Pennsylvania state-level income
tax which is different from Pennsylvania local income tax. Accordingly, the 1040 forms cannot be used
for local earned income tax filings.
Understanding
that the information supplied by the DOR may be inaccurate, Keystone provides
taxpayers with ample notice prior to the initiation of adverse legal or
collection action. The Notice itself provides taxpayers with common examples of
situations in which the tax may not be due. Through the LTEA, Tax Officers such
as Keystone are vested with the right to request documentation to verify the
accuracy of a tax return, or if no tax return was filed, to ascertain the
amount of tax due. See 53 P.S. § 6924.509(f).
Taxpayers
are given ample time to reconcile delinquent accounts prior to the initiation
of a wage garnishment. Because the complainant has moved numerous times, his
delinquent tax years have been adjusted for part year residency. Ultimately,
the complainant provided Keystone with W-2s and residency information
evidencing that his local earned income tax liability was met via employer
withholdings. Accordingly, the garnishment on his account has been released and
he will be refunded all monies taken from his pay.
It
is important to note that situations such as these can be avoided with proper
tax compliance. That is, had the complainant properly filed local earned income
tax returns for all or partial years in which he resided in the Tax Collection
District, this issue would have been avoided.
Thank you
for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselInitial Complaint
Date:05/12/2023
Type:Billing IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Received notification that reports I owe $328.40. Have paid Keystone past dues and taxes in years after 2019 and have not heard of this particular debt until today, 5/12/23, when I received a notice of intent to garnish wages with the falsified claim that I was notified previously of this debt. In this, Keystone is charging statutory interest of $31.14, statutory penalty of $26.68, act 192 costs $60 and statutory costs of collection of $32.68. Total owed $328.40 with these inappropriate charges which I am contesting due to Keystone's negligence to contact me at any point in time before today, and then falsifying the statement that they have made contact regarding this debt previously. Willing to pay a total of $177.90 but not the fraudulent charges.Business Response
Date: 05/25/2023
Dear *** ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In her complaint, the complainant advised that Keystone
attempted to garnish his wages for the collection of local earned income taxes.
The complainant did not specifically dispute the imposition of tax; rather, she
disputed language on the notice stating that she was previously notified of the
delinquent balance. To the contrary, the complainant advised that she was not
notified of delinquent taxes previously. Accordingly, the complainant disputed
the penalty, interest and collection costs assessed on her account.
Please know that I have thoroughly reviewed the
complainant’s account. As a preliminary matter, Keystone serves as the duly
appointed Act 32 Tax Officer for the Chester County Tax Collection District. In
this capacity, Keystone is tasked with the administration, collection and
reconciliation of local earned income taxes for all communities within the Tax
Collection District that assess an earned income tax.
The Local Tax Enabling Act (“LTEA”) requires all Pennsylvania resident
taxpayers making earned income and/or net profits to file an annual local
earned income tax return with their resident Tax Officer. 53 P.S. §
6924.502(c).
Per
my review of the complainant’s account, she did not file a tax return with
Keystone for the tax year at issue. Pursuant
to the information exchange mandate of the Local Tax Enabling Act (“LTEA”),
Keystone is supplied with limited earnings information from the Pennsylvania
Department of Revenue (“DOR”) used to identify unpaid or underpaid accounts.
See 53 P.S. § 6924.509(g).
Per my review of the complainant’s account, she was
issued an initial delinquent notice for the 2019 tax year on October 7, 2021. This
notice was not returned to my office as undeliverable or unable to forward.
Accordingly, under Pennsylvania law, it is presumed received. As the complainant did not respond to this
notice, the complainant was issued a issued Notice of Intent to Garnish
Wages by Certified Mail on May 4, 2023. This complaint followed.
The
LTEA authorizes the collection of delinquent local taxes by wage garnishment.
53 P.S. §§ 6924.702-703. Further, the statute mandates the imposition of
penalty and interest when the tax is not paid when due. 53 P.S. § 6924.509(i).
Finally, Keystone is authorized to recover its costs of delinquent collection
pursuant to Act 192 of 2004, as ratified by the taxing authorities. All changes
assessed in excess of the delinquent face tax were lawful and proper.
It
is important for all taxpayers to properly file a tax return and, if under-withheld,
remit all outstanding tax. The accrual of penalty and interest, and assessment
of collection costs can be avoided by proper tax compliance.
In response to the May 4, 2023, notice, the
complainant remitted payment in full. Accordingly, the 2019 tax year has been
closed on her account. As the complainant’s account has been satisfied, this
matter is resolved.
I appreciate the opportunity provided by the BBB to
resolve the concerns of taxpayers and improve our processes.
Thank you
for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselInitial Complaint
Date:05/05/2023
Type:Billing IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Keystone Collections sent me one of their standard tax delinquency letters stating that I owed taxes for 2020 at a previous residence. I uploaded the requested documentation to their website to prove that I did not live there for the entire year and they took three months to respond to ask for further information, which by their own website and confirmation from an employee should not have even been necessary as I had uploaded sufficient documentation already. I uploaded the further information, which I also confirmed with an employee would be sufficient evidence (different documentation). This issue is still unresolved today. Then, several weeks later a received another bill stating that I owed further delinquent taxes for a township that I have never lived in for years 2019-2022 and demanding that I pay within a month due to the fact that I had already been contacted previously, which I had not. When I called to ask why I received this letter and ask where they got this information, I was told by the employee that I spoke to that they had a form that I could fill out, but it “may or may not help you”. I have never lived in this township and had to google where it was, so I have no inclination where they got this information. The lack of organization and professionalism in my entire situation with this company has been astounding. All I would like from them is to review my account and remove the tax delinquency bill that I should not owe.Business Response
Date: 05/12/2023
Dear M*. ******:
Thank
you for contacting Keystone Collections Group (“Keystone”) regarding this
complaint ID number. In her complaint, the complainant advised that she
received several delinquent tax notices from Keystone. The complainant
contended that she does not owe these taxes. Please know that I have thoroughly
reviewed the complainant’s account.
As a preliminary matter, this matter involves two
(2) taxes which are separate and distinct from each other; local earned income
taxes and per capita taxes. Specifically, the complainant received a 2020
delinquent local earned income tax notice for Ross Township / North Hills
School District and 2019 – 2022 delinquent per capita tax notices for West Deer
Township and Deer Lakes School District. It appears that the complainant has
changed addresses numerous times over the past several years resulting in
overlaps or inaccuracies in employer-reported addresses for her. I will address
each tax type in turn.
Earned Income Taxes
Keystone serves as the Act 32 Tax Officer for the
Allegheny North Tax Collection District. In this capacity, Keystone administers
and collects local earned income taxes from all municipalities and school
districts, including the taxing jurisdictions at issue here, within the
District that assess an earned income tax.
Per my review, the complainant has never filed a
local earned income tax return with Keystone. Pursuant to the information
exchange mandate of the Local Tax Enabling Act (“LTEA”), Keystone is
supplied with limited earnings information from the Pennsylvania Department of
Revenue (“DOR”) used to identify unpaid or underpaid accounts. See 53 P.S. §
6924.509(g). Based on a comparison between this information and Keystone’s records,
this discrepancy was identified. Specifically, the DOR information evidenced
that the complainant filed her PA 40 Personal Income Tax Return as a resident
of Ross Township / North Hills School District for 2020 tax year.
Understanding
that the information supplied by the DOR may be inaccurate, Keystone provides
taxpayers with ample notice prior to the initiation of adverse legal or
collection action. The Notice itself provides taxpayers with common examples of
situations in which the tax may not be due. Through the LTEA, Tax Officers such
as Keystone are vested with the right to request documentation to verify the
accuracy of a tax return, or if no tax return was filed, to ascertain the
amount of tax due. See 53 P.S. § 6924.509(f).
Per
my review of the complainant’s account, she was issued an initial delinquent
notice on September 9, 2022. In
response, the complainant supplied documentation purporting to evidence her
residency. Said documentation included a W-2 showing no local earned income tax
withholdings. Accordingly, in March of 2023, my office requested certain
documentation from the complainant evidencing both her residency for the full
year and any evidence of income and tax paid. The complainant has not supplied
additional documentation, but was directed to complete an Information
Supplement Form available on Keystone’s website, to account for her residency
for theurationn of 2020. I note that the address listed on her 2020 W-2 is
located in Ross Township. My office will await further documentation and make
any adjustments, if necessary. As it currently stands, it appears that local
earned income taxes were not withheld from the complainant’s pay.
Per Capita Taxes
The complainant was issued a delinquent 2019-2022
per capita tax notice for West Deer Township and Deer Lakes School District on
April 26, 2023. Per capita taxes are flat taxes assessed on all adult residents
of a taxing jurisdiction.
In her complaint, the complainant contended that
she has “never lived” in this township. Please know that the complainant’s
employer remitted earned income tax withholdings to Keystone on her behalf,
listing a resident address in West Deer Township. Further, all current per capita
tax bills were mailed to the complainant at this address (with a postal address
in “Gibsonia”). Dating back to 2019, no per capita tax bills were returned to
my office as undeliverable, and they are deemed to be received.
To resolve both accounts, my office is in need of
residency information for the 2019 – 2022 tax years. I appreciate the
opportunity provided by the BBB to resolve the concerns of taxpayers and
improve our processes.
Thank you
for your attention to this matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselInitial Complaint
Date:05/03/2023
Type:Service or Repair IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Keystone refuses to pay a refund which I am owed, despite the fact that my employer's w2 for 2022 clearly indicates the amount exactly matches what was deducted from my wages, and my correctly completed form indicates what I am owed.
Contact with Keystone is fruitless.
What is my recourse?
Thank youBusiness Response
Date: 05/03/2023
Dear M*. F*****:
Thank
you for contacting Keystone Collections Group regarding the above-referenced
complaint. The complainant alleges that based
on her W-2 and her 2022 local earned income tax return she is owed a refund
which Keystone is refusing to issue.
Please know that I have reviewed the complainant’s account.
The
complainant provided a local earned income tax return claiming a refund, as
well as a W-2 from her employer. The W-2
provides two lines of employee withholdings; one is her local earned income tax
withholdings and the other is her local services tax withholdings. These two taxes are separate and distinct
from each other. Importantly, local
services tax withholdings cannot be used as a credit against earned income tax
liability. Accordingly, the complainant
is not owed a refund for her local services tax withholdings.
Thank
you for the opportunity to address the complainant’s concerns.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselInitial Complaint
Date:04/26/2023
Type:Billing IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
This company does not allow individuals to look up their account number to view past payments or account dues in their entirety. Individuals are only able to look up per invoice, which runs the risk of people not knowing complete account dues. Online bill pay doesn't work, even after bringing this to their attention multiple times company declined to remove delinquent charges even though previous attempts to pay the bills were well within the timeframe of original due date. Company does not call individuals back, as I have left requested call backs through their automated system as well as through their reps for a supervisor call back to resolve accounts. Expressed that we did not receive any invoice for pervious year's dues and company rep explained that this has been an issue on undeliverability in county of Somerset and that as long as the company doesn't receive return to sender then they assume all people are receiving their mail. They do not reach out to individuals via phone numbers to resolve debts before fees or even after account delinquency. Company states that any and all fees obtained throughout the process are unremovable regardless of fault (e.g., electronic systems not accepting payments, delays in calls, etc.). Prohibiting people from paying the bill prior to fees or in its completion to prevent future fees needs to be addressed.Business Response
Date: 04/28/2023
Dear *** ******:
Thank you
for contacting Keystone Collections Group regarding the above-referenced
complaint. Keystone appreciates the
opportunity to address the concerns of the complainant. In their complaint, the complainant alleges that
they did not receive per capita tax bills, that Keystone’s online bill pay
system does not function, and that Keystone does not return taxpayer calls. Please
know that I have reviewed the complainant’s account thoroughly.
First,
Keystone serves as the current and delinquent per capita tax collector for Somerset
Area School District. In this capacity
Keystone issues current and delinquent tax bills to residents within the
District. Keystone utilizes the United
State Postal Service’s Intelligent Mailer Barcode (IMB) to track per capita tax
bills. The IMB record provided by the
USPS indicates that all of the bills were delivered. Further, Keystone’s records do not indicate that
any of the bills were returned as undeliverable. Please know that if a bill is returned as
undeliverable, Keystone attempts to identify a current address for the
individual. While this was not necessary
in this instance because the complainant’s address was correct, it evidences
Keystone’s commitment to get taxpayers their bills promptly.
Second, Keystone
allows individuals to remit payments electronically through its website. The complainant attempted to remit payment of
her per capita tax on February 6, 2023 and February 25, 2023. Keystone was notified by its financial institution
that the payment was rejected by the payor’s bank because the checking account
number was not correct. In reviewing
these two payment attempts, the bank account numbers differed from each other
and also from the third payment that was processed.
Per Keystone’s
policy, we made attempts to notify the taxpayer of the failed payments. Calls were placed on February 10, 2023, March
8, 2023, and March 10, 2023. Notably,
the 2023 discount phase ended on March 31, 2023. Accordingly, Keystone notified the taxpayer
well in advance of the end of the discount phase. Taxpayer remitted payment using the online
payment method on April 26, 2023. I
would note that Keystone receives thousand of payments through its website each
month indicating that the payment system is functional.
As Keystone’s
online payment system functions, and Keystone made multiple attempts to notify
her of the failed payments, my office considers this matter is resolved.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
CounselInitial Complaint
Date:04/25/2023
Type:Product IssuesStatus:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
I am owed a refund from last year’s (2021 tax year) earned income tax return I filed. I sent my return via certified mail.
This is not the first time I received a runaround from them.
I have had trouble in the past with these people. That is why I always send my returns via certified mail. They confirmed that they received it, and they also said they were reviewing it, but I haven’t received anything from them for at least 2 weeks.
I have not gotten a chance to check, but I am believe I am owed a refund from 2020’s earned income tax return as well.
I should not have to ask for my refund every year for something rightly owed to me. They owe me $637 for 2021 alone, and I am sure a similar amount for 2020.
Thanks in advance for your help!
**** *******Business Response
Date: 05/12/2023
Dear *** ******:
Thank you for contacting Keystone
Collections Group (“Keystone”) regarding this complaint ID number. In his complaint, the complainant claimed that
his employer over-withheld his local earned income taxes, and despite his
refund request, Keystone has not issued refunds.
In response to his complaint, I have
thoroughly reviewed the complainant’s account. Please be advised that based only upon a
review of the complainant’s tax return and documents, he was not entitled to a
refund for any overpayment of tax. Pennsylvania local earned income taxes are
assessed pursuant to the Local Tax Enabling Act, codified at 53 P.S. §
6924.101 et seq. (“LTEA”). The LTEA provides that employers shall
“deduct from the compensation due each employee employed at such place of
business the greater of the employee’s resident tax or the employee’s
nonresident tax as released in the official register.” 53 P.S. § 6924.512(3). An employee’s nonresident tax rate is
determined by their “work location”.
In the complainant’s case, his reported
work location assesses a nonresident earned income tax at the rate of 1.28%. As this rate is higher than the complainant’s
resident rate of 1.0%, he appeared to be properly withheld to the nonresident
rate. Such withholdings above the complainant’s resident rate are payable to
his work location and may not be claimed against his resident local earned
income taxes.
However, the complainant contended
that his reported work location and associated withholding was inaccurate.
Accordingly, my office requested the complainant provide a letter, on company
letterhead, from his employer, evidencing his work location. Based upon written
communication between the complainant and my office, he was not initially
cooperative with this request. However, ultimately the requested letter was
supplied in April of 2023. As such, my office has reviewed and determined that
the complainant’s employer withheld him to an incorrect work location.
Accordingly, the complainant’s refund has been approved. He should receive a
check in the near future.
Taxpayers should take reasonable
steps to ensure their employers withhold their local earned income taxes based
upon correct resident and non-resident/workplace locations. As mentioned, based
on the complainant’s tax filing and documentation, it initially appeared that
his refund request was based on non-refundable nonresident local earned income
tax withholdings. Without the letter from his employer clarifying that the
complainant was withheld incorrectly, there appeared to be no overpayment on
the complainant’s account.
I appreciate the opportunity
provided by the BBB to resolve the concerns of taxpayers and improve our
processes.
Thank you for your attention to this
matter.
Very
truly yours,
KEYSTONE
COLLECTIONS GROUP
By:
Christopher
*. V******
General
Counsel
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