Residents report aggressive EIT notices after blended-rate error; Berkheimer pledges review and waivers

Hundreds of Narberth residents and council members spent much of the Dec. 4 work session pressing Berkheimer Tax Innovations to fix billing and notice problems tied to the borough—s newly implemented earned income tax (EIT).

James (Jim) Hunt, director of governmental relations for Berkheimer, told the council the firm—s wage-bracket analysis and state reporting comparisons show why many residents became subject to local reporting when the borough implemented the tax in 2023. Hunt said the company received 2023 state data this year and compared it to local filings, then issued discrepancy notices.

Council and callers described a related technical issue: because the EIT began partway into 2024, Berkheimer used a blended rate that produced a 0.73% withholding in some cases. That small delta, and the subsequent notices generated for taxpayers, led to multiple failure-to-file and second-notice fees. "They they they should not have been billed for the point 002%," Hunt said, acknowledging the recalculation produced incorrect bills for some residents and adding, "If you could provide that, I—d really like to do the research to find out why." (Berkheimer representative Jim Hunt)

Resident John Monroe, who called into the meeting, said he received two notices and then a second, more aggressive letter from Berkheimer that threatened an audit and demanded payment by Dec. 25. "I got a similar letter, that was more aggressive, threatening me with an audit," Monroe said. Several other residents described receiving an initial $25 "failure to file" charge and then an additional $25 or a $50 delinquent servicing fee after follow-up notices.

Hunt said Berkheimer can and will identify incorrect charges and process refunds or fee waivers: "Yes. Definitely. And if it was made, I just don—t want to make sure it gets refunded to them," he said, and offered direct follow-up: "If you—re not getting that type of response and Maggie can make me personally aware of it, I will make sure he gets followed up on." Council members asked that all problem cases be forwarded to borough staff so Berkheimer can investigate in batch and keep residents from having to resolve mistakes individually.

Council members pushed for clearer public guidance. Berkheimer said it will provide frequently asked questions and materials that the borough can post so residents understand who must file, how Philadelphia wage-tax credits work and how to use Berkheimer—s free filing app. Hunt also noted the company—s local offices and phone/email channels and said he would respond to council-forwarded cases directly.

The session included specific figures Berkheimer used in the briefing: the company identified about 1,909 residents with reported earned income in 2024; it listed roughly 460 people in the under-$12,000 bracket on the wage report (who may be eligible for refunds in some circumstances); and it described lists of 872 zero-income returns (retirees, spouses not earning wages or those reporting exempt/investment income). Hunt repeated that some cases (for example, wages taxed in Philadelphia) receive a credit and should not produce a local balance, but the state-to-local reporting mismatch can create automated discrepancy notices that require human review.

What happens next: Berkheimer said it will research and respond to individual complaints provided by borough staff, pursue refunds or waivers where appropriate, and supply FAQ materials the borough can publish. Council asked residents to forward problem notices to staff contact Maggie, who will pass bundled cases to Berkheimer for investigation.