THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY BROWNE, MAY 31, 2012

REFERRED TO FINANCE, MAY 31, 2012  

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," in tax for education, further providing for

licenses; in payment of tax, further providing for discount;

in assessment and collection of tax, further providing for

assessment; in interest, additions, penalties and crimes,

providing for failure to timely remit tax collected; in

personal income tax, further providing for definitions and

for taxability of partners, providing for tax treatment

determined at partnership level and for tax imposed at

partnership level, further providing for income of a

Pennsylvania S corporation, for tax withheld and for

requirement of withholding tax, providing for requirement of

withholding tax for nonemployers, further providing for

information statement, providing for information statement

for nonemployer payors and for information statement for

nonemployer payees, further providing for time for filing

employers' returns, for payment of taxes withheld, for

employers liability for withheld taxes, for employer's

failure to withhold, for designation of third parties to

perform acts required of employers, for general rule, for

amount of withholding tax and for treatment of nonresident

partners, members or shareholders, providing for withholding

on income from oil and gas interests and for annual

withholding statement, further providing for return of

Pennsylvania S corporation, for requirements concerning

returns, notices, records and statements, for assessment, for

additions, penalties and fees and providing for failure to

timely remit tax withheld; in corporate net income tax,

further providing for assessments; in realty transfer tax,

further providing for assessment and notice of tax and

review; in cigarette tax, further providing for disposition

of certain funds; in malt beverage tax, further providing for

assessment by department; in general provisions, providing

for administrative bank attachment for accounts of obligors

to the Commonwealth, for tax delinquent placard and for

additional citation authority; and providing for

applicability.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 208(b.1) and (c) of the act of March 4,

1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,

amended December 23, 2003 (P.L.250, No.46), are amended to read:

Section 208.  Licenses.--* * *

(b.1)  If an applicant for a license or any person holding a

license has not filed all required State tax reports and paid

any State taxes not subject to a timely perfected administrative

or judicial appeal or subject to a duly authorized deferred

payment plan, the department may refuse to issue, may suspend or

may revoke said license. The department shall notify the

applicant or licensee of any refusal, suspension or revocation.

Such notice shall contain a statement that the refusal,

suspension or revocation may be made public. Such notice shall

be made by first class mail. An applicant or licensee aggrieved

by the determination of the department may file an appeal

pursuant to the provisions for administrative appeals in this

article, except the appeal must be filed within fifteen days of

the date of notice. In the case of a suspension or revocation

which is appealed, the license shall remain valid pending a

final outcome of the appeals process. Notwithstanding sections

274, 353(f), 408(b), 603, 702, 802, 904 and 1102 of the act or

any other provision of law to the contrary, if no appeal is

taken or if an appeal is taken and denied at the conclusion of

the appeal process, the department may disclose, by publication

or otherwise, the identity of a person and the fact that the

person's license has been refused, suspended or revoked under

this subsection. Disclosure may include the basis for refusal,

suspension or revocation.

(c)  A person that maintains a place of business in this

Commonwealth for the purpose of selling or leasing services or

tangible personal property, the sale or use of which is subject

to tax, without having [first been licensed by the department] a

valid license at the time of the sale or lease shall be guilty

of a summary offense and, upon conviction thereof, be sentenced

to pay a fine of not less than three hundred dollars ($300) nor

more than one thousand five hundred ($1,500) and, in default

thereof, to undergo imprisonment of not less than five days nor

more than thirty days. The penalties imposed by this subsection

shall be in addition to any other penalties imposed by this

article. For purposes of this subsection, the offering for sale

or lease of any service or tangible personal property, the sale

or use of which is subject to tax, during any calendar day shall

constitute a separate violation. The Secretary of Revenue may

designate employes of the department to enforce the provisions

of this subsection. The employes shall exhibit proof of and be

within the scope of the designation when instituting proceedings

as provided by the Pennsylvania Rules of Criminal Procedure.

* * *

Section 1.1.  Section 227 of the act is amended to read:

Section 227.  Discount.--(a)  If a return is filed by a

licensee and the tax shown to be due thereon less any discount

is paid all within the time prescribed, the licensee shall be

entitled to credit and apply against the tax payable by [him]

the licensee a discount of one per cent of the amount of the tax

collected by [him] the licensee on and after the effective date

of this article, as compensation for the expense of collecting

and remitting the [same] tax due by the licensee and as a

consideration of the prompt payment thereof.

(b)  The discount under subsection (a) shall be limited to

the following:

(1)  Two hundred fifty dollars ($250) per return.

(2)  Only State and local sales tax discounts.

Section 1.2.  Section 230 of the act, amended July 25, 2007

(P.L.373, No.55), is amended to read:

Section 230.  Assessment.--(a)  The department is authorized

and required to make the inquiries, determinations and

assessments of the tax (including interest, additions and

penalties) imposed by this article. A notice of assessment and

demand for payment shall be mailed to the taxpayer. The notice

shall set forth the basis of the assessment.

[(b)  The notice required by subsection (a) shall be mailed

by certified mail if the assessment is for $300 or more.]

Section 2.  The act is amended by adding a section to read:

Section 268.1.  Failure to Timely Remit Tax Collected.--(a)

Penalties. If a person wilfully fails to timely remit tax

collected under this article and:

(1)  The amount of the tax is one thousand dollars ($1,000)

or less, the person commits a misdemeanor of the second degree

and, upon conviction, shall be sentenced to pay a fine of one

thousand dollars ($1,000) or to imprisonment for not more than

two years, or both.

(2)  Except as set forth in subclause (3), the amount of the

tax exceeds one thousand dollars ($1,000), the person commits a

misdemeanor of the first degree and, upon conviction, shall be

sentenced to pay a fine of not more than five thousand dollars

($5,000) or to imprisonment for not more than five years, or

both.

(3)  The amount of the tax exceeds two thousand dollars

($2,000), the person commits a felony of the third degree and,

upon conviction, shall be sentenced to pay a fine of not more

than twenty-five thousand dollars ($25,000) or to imprisonment

for not more than seven years, or both.

(b)  Requirement. The penalties imposed by this section shall

be in addition to other penalties imposed by a provision of this

article.

Section 3.  Section 301(n.1) of the act, amended July 6, 2006

(P.L.319, No.67), is amended and the section is amended by

adding subsections to read:

Section 301.  Definitions.--Any reference in this article to

the Internal Revenue Code of 1986 shall mean the Internal

Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.),

as amended to January 1, 1997, unless the reference contains the

phrase "as amended" and refers to no other date, in which case

the reference shall be to the Internal Revenue Code of 1986 as

it exists as of the time of application of this article. The

following words, terms and phrases when used in this article

shall have the meaning ascribed to them in this section except

where the context clearly indicates a different meaning:

* * *

(d.2)  "Corporate item" means any item, including income,

gain or loss, determined at the Pennsylvania S corporation

level, which is required to be taken into account for a

Pennsylvania S corporation's taxable year.

* * *

(l.3)  "Nonemployer payee" means an individual who receives

payments under section 316.1(a)(1).

(l.4)  "Nonemployer payor" means a person subject to

nonemployer withholding under section 316.1.

* * *

(n.1)  "Partnership item" means any item, including income,

gain or loss, determined at the partnership level, which is

required to be taken into account for a partnership's taxable

year.

[(n.1)] (n.2)  "Pennsylvania S corporation" means any small

corporation as defined in section 301(s.2) which does not have a

valid election under section 307 in effect. A qualified

Subchapter S subsidiary owned by a Pennsylvania S corporation

shall be treated as a Pennsylvania S corporation without regard

to whether an election under section 307 has been made with

respect to the subsidiary.

* * *

Section 4.  Section 306 of the act, amended June 22, 2001

(P.L.353, No.23), is amended to read:

Section 306.  Taxability of Partners.--[A] Except as provided

in section 306.2, a partnership as an entity shall not be

subject to the tax imposed by this article, but the income or

gain of a member of a partnership in respect of said partnership

shall be subject to the tax and the tax shall be imposed on his

share, whether or not distributed, of the income or gain

received by the partnership for its taxable year ending within

or with the member's taxable year.

Section 5.  The act is amended by adding sections to read:

Section 306.1.  Tax Treatment Determined at Partnership

Level.-–The tax treatment of a partnership item and the

applicability of a penalty, addition of tax or additional amount

that relates to an adjustment to a partnership item must be

determined at the partnership level.

Section 306.2.  Tax Imposed at Partnership Level.--A

partnership underreporting income by more than one hundred

thousand dollars ($100,000) shall be jointly liable with each

partner for any part of a deficiency resulting from the

treatment of a partnership item by any partner on that partner's

return in a manner that is consistent with the treatment of that

partnership item on the partnership return. If the tax is paid

by the partner, it may not be collected from the partnership.

Section 6.  Section 307.8(a) of the act, amended May 7, 1997

(P.L.85, No.7), is amended and the section is amended by adding

a subsection to read:

Section 307.8.  Income of a Pennsylvania S Corporation.--(a)

A Pennsylvania S corporation shall not be subject to the tax

imposed by this article, except as provided in subsection (f),  

but the shareholders of the Pennsylvania S corporation shall be

subject to the tax imposed under this article as provided in

this article.

* * *

(f)  A Pennsylvania S corporation underreporting income by

more than one hundred thousand dollars ($100,000) shall be

jointly liable with each shareholder for any part of a

deficiency resulting from the treatment of a corporate item by

any shareholder on the shareholder's return in a manner that is

consistent with the treatment of that corporate item on the

return of the Pennsylvania S corporation. If the tax is paid by

the shareholder, it may not be collected from the corporation.

Section 7.  Sections 312 and 316 of the act, added August 31,

1971 (P.L.362, No.93), are amended to read:

Section 312.  Tax Withheld.--(a)  The amount withheld under

section 316 shall be allowed to the recipient of the

compensation as a credit against the tax imposed on him by this

article.

(b)  The amount withheld under section 316.1 shall be allowed

to the recipient of the Pennsylvania sourced income as a credit

against the tax imposed on the recipient by this article.

(c)  The amount withheld under section 324.4 shall be allowed

to the lessor as a credit against the tax imposed on the lessor

by this article. For the purposes of this subsection, the term

"lessor" shall have the same meaning as given to it in section

324.4(d).

Section 316.  Requirement of Withholding Tax for Employers.--

Every employer maintaining an office or transacting business

within this Commonwealth and making payment of compensation (i)

to a resident individual, or (ii) to a nonresident individual

taxpayer performing services on behalf of such employer within

this Commonwealth, shall deduct and withhold from such

compensation for each payroll period a tax computed in such

manner as to result, so far as practicable, in withholding from

the employe's compensation during each calendar year an amount

substantially equivalent to the tax reasonably estimated to be

due for such year with respect to such compensation. The method

of determining the amount to be withheld shall be prescribed by

regulations of the department.

Section 8.  The act is amended by adding a section to read:

Section 316.1.  Requirement of Withholding Tax for

Nonemployers.--(a)  This section applies as follows:

(1)  Except as set forth in clause (2), to a person that

meets all of the following subclauses:

(i)  Makes payments of income from sources within this

Commonwealth under section 303(a)(1) or (2) to:

(A)  a nonresident individual; or

(B)  an entity:

(I)  which is disregarded under section 307.21; and

(II)  the single owner of which is a nonresident individual.

(ii)  Is required by section 335(g) to file a copy of form

1099-MISC with the department with respect to payments under

subclause (i).

(2)  This section does not apply to payments made by any of

the following:

(i)  The United States of America. This subclause includes a

Federal agency, authority and instrumentality.

(ii)  The Commonwealth. This subclause includes a

Commonwealth agency, authority and instrumentality.

(iii)  A political subdivision. This subclause includes a

municipal authority and instrumentality.

(b)  A person subject to subsection (a), to the extent not

already required by section 316 to withhold on payments under

subsection (a)(1)(i), shall deduct and withhold from those

payments an amount obtained by multiplying:

(1)  the net amount of the payments; by

(2)  the tax rate specified in section 302(b).

(c)  The department may promulgate regulations to implement

and clarify the withholding requirement set forth in subsection

(b).

(d)  As used in this section, "payments" does not include a

partner's or shareholder's distributive share of income from a

partnership or Pennsylvania S corporation.

Section 9.  Section 317 of the act, amended December 20, 1985

(P.L.489, No.115), is amended to read:

Section 317.  Information Statement.--Every employer required

to deduct and withhold tax under [this article] section 316 

shall furnish to each such employe to whom the employer has paid

compensation during the calendar year a written statement in

such manner and in such form as may be prescribed by the

department showing the amount of compensation paid by the

employer to the employe, the amount deducted and withheld as

tax[, pursuant to this article,] and such other information as

the department shall prescribe. Each statement required by this

section for a calendar year shall be furnished to the employe on

or before January 31 of the year succeeding such calendar year.

If the employe's employment is terminated before the close of

such calendar year, the employer, at his option, shall furnish

the statement to the employe at any time after the termination

but no later than January 31 of the year succeeding such

calendar year. However, if an employe whose employment is

terminated before the close of such calendar year requests the

employer in writing to furnish him the statement at an earlier

time, and, if there is no reasonable expectation on the part of

both employer and employe of further employment during the

calendar year, then the employer shall furnish the statement to

the employe on or before the later of the 30th day after the day

of the request or the 30th day after the day on which the last

payment of wages is made.

Section 10.  The act is amended by adding sections to read:

Section 317.1.  Information Statement for Nonemployer

Payors.--A nonemployer payor shall furnish to each nonemployer

payee during a calendar year a copy of form 1099-MISC required

by section 335(g). The copy of form 1099-MISC required by this

section for a calendar year shall be forwarded to the

nonemployer payee by March 1 of the next year.

Section 317.2.  Information Statement for Nonemployer

Payees.--A nonemployer payee receiving a copy of form 1099-MISC

from a nonemployer payor under section 317.1 shall file a

duplicate of the form with the nonemployer payee's tax return

under section 330.

Section 11.  Section 318 of the act, added August 31, 1971

(P.L.362, No.93), is amended to read:

Section 318.  Time for Filing Employers' and Nonemployer

Payors' Returns.--(a)  Every employer required to deduct and

withhold tax under [this article] section 316 shall file a

quarterly withholding return on or before the last day of April,

July, October and January for the three months ending the last

day of March, June, September and December. Such quarterly

returns shall be filed with the department at its main office or

at any branch office which it may designate for filing returns.

(b)  A nonemployer payor shall file a quarterly withholding

return by the last day of April, July, October and January for

the three months ending the last day of March, June, September

and December. The quarterly return shall be filed with the

department in the manner promulgated by regulation.

Section 12.  Section 319 of the act, amended October 9, 2009

(P.L.451, No.48), is amended to read:

Section 319.  Payment of Taxes Withheld.--Every employer

withholding tax under [this article] section 316 and every

nonemployer payor shall pay over to the department or to a

depository designated by it the tax required to be deducted and

withheld under this article.

(1)  Where the aggregate amount required to be deducted and

withheld [by any employer] for a calendar year can reasonably be

expected to be less than twelve hundred dollars ($1,200), such

employer or nonemployer payor shall file a return and pay the

tax on or before the last day for filing a quarterly return

under section 318.

(2)  Where the aggregated amount required to be deducted and

withheld [by any employer] for a calendar year can reasonably be

expected to be twelve hundred dollars ($1,200) or more but less

than four thousand dollars ($4,000), such employer or

nonemployer payor shall pay the tax monthly, on or before the

fifteenth day of the month succeeding the months of January to

November, inclusive, and on or before the last day of January

following the month of December.

(3)  Where the aggregated amount required to be deducted and

withheld [by any employer] for a calendar year can reasonably be

expected to be four thousand dollars ($4,000) or more but less

than twenty thousand dollars ($20,000), such employer or

nonemployer payor shall pay the tax semi-monthly, within three

banking days after the close of the semi-monthly period.

(4)  Where the aggregated amount required to be deducted and

withheld [by any employer] for a calendar year can reasonably be

expected to be twenty thousand dollars ($20,000) or more, such

employer or nonemployer payor shall pay the tax on the Wednesday

after payday if the payday falls on a Wednesday, Thursday or

Friday and on the Friday after payday if the payday falls on a

Saturday, Sunday, Monday or Tuesday.

Notwithstanding anything in this section to the contrary,

whenever any employer or nonemployer payor fails to deduct or

truthfully account for or pay over the tax withheld or file

returns as prescribed by this article, the department may serve

a notice on such [employer] person requiring him to withhold

taxes which are required to be deducted under this article and

deposit such taxes in a bank approved by the department in a

separate account in trust for and payable to the department, and

to keep the amount of such tax in such account until payment

over to the department. Such notice shall remain in effect until

a notice of cancellation is served on the [employer] person by

the department.

Section 13.  Sections 320, 321 and 322 of the act, added

August 31, 1971 (P.L.362, No.93), are amended to read:

Section 320.  [Employer's] Liability for Withheld Taxes.--

Every employer required to deduct and withhold tax under [this

article] section 316 and every nonemployer payor is hereby made

liable for [such] tax deducted and withheld. For purposes of

assessment and collection, any amount required to be withheld

and paid over to the department and any additions to tax

penalties and interest with respect thereto, shall be considered

the tax of the employer or nonemployer payor. All taxes deducted

and withheld from employes pursuant to [this article] section

316 or nonemployer payees pursuant to section 316.1 or under

color of [this article] section 316 or 316.1 shall constitute a

trust fund for the Commonwealth and shall be enforceable against

such employer or nonemployer payor, his representative or any

other person receiving any part of such fund.

Section 321.  [Employer's] Failure to Withhold.--If an

employer or nonemployer payor fails to deduct and withhold tax

as prescribed herein and thereafter the tax against which such

tax may be credited is paid, the tax which was required to be

deducted and withheld shall not be collected from the employer

or nonemployer payor, but the employer or nonemployer payor 

shall not be relieved of the liability for any penalty,

interest, or additions to the tax imposed with respect to such

failure to deduct and withhold.

Section 322.  Designation of Third Parties to Perform Acts

Required of Employers or Nonemployer Payors.--(a)  In case a

fiduciary, agent or other person has the control, receipt,

custody or disposal of, or pays the compensation of an employe

or a group of employes, employed by one or more employers, the

department is authorized to designate such fiduciary, agent, or

other person to perform such acts as are required of employers

under this article as the department may by regulation

prescribe. Except as may be otherwise prescribed by the

department, all provisions of this article which are applicable

to an employer shall be applicable to a fiduciary, agent or

other person.

(b)  In case a fiduciary, agent or other person has the

control, receipt, custody or disposal of, or pays income to a

nonemployer payee or a group of nonemployer payees on behalf of

a nonemployer payor, the department is authorized to designate

such fiduciary, agent or other person to perform such acts as

are required of nonemployer payors under this article as the

department may promulgate by regulation. Except as may be

otherwise prescribed by the department, all provisions of this

article which are applicable to a nonemployer payor shall be

applicable to a fiduciary, agent or other person.

Section 14.  Section 324 of the act, amended June 22, 2001

(P.L.353, No.23), is amended to read:

Section 324.  General Rule.--(a)  When a partnership, estate,

trust or Pennsylvania S corporation receives income from sources

within this Commonwealth for any taxable year and any portion of

the income is allocable to a nonresident partner, beneficiary, 

member or shareholder thereof, the partnership, estate, trust or

Pennsylvania S corporation shall pay a withholding tax under

this section at the time and in the manner prescribed by the

department; however, notwithstanding any other provision of this

article, all such withholding tax shall be paid over on or

before the fifteenth day of the fourth month following the end

of the taxable year.

(b)  This section shall not apply to any publicly traded

partnership as defined under section 7704 of the Internal

Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 7704) with

equity securities registered with the Securities and Exchange

Commission under section 12 of the Securities Exchange Act of

1934 (48 Stat. 881, 15 U.S.C. § 78a).

Section 15.  Section 324.1 of the act, added August 4, 1991

(P.L.97, No.22), is amended to read:

Section 324.1.  Amount of Withholding Tax.--(a)  The amount

of tax withheld from nonresidents and the amount of the

withholding tax payable under section 324 shall be equal to the

income from sources within this Commonwealth of the partnership,

association or Pennsylvania S corporation which is allocable to

nonresident partners, members or shareholders multiplied by the

tax rate specified in section 302(b).

(b)  There shall not be taken into account any item of

income, gain, loss or deduction to the extent allocable to any

partner, member or shareholder who is not a nonresident.

(c)  There shall not be taken into account any allocable

share of income of a nonresident partner, member or shareholder

from sources within this Commonwealth to the extent:

(1)  the amount was subject to withholding under section

324.4; and

(2)  withholding actually occurred under section 324.4 by the

time withholding is required to be made by the partnership,

association or Pennsylvania S corporation under section 324.

Section 16.  Section 324.2 of the act, amended May 7, 1997

(P.L.85, No.7), is amended to read:

Section 324.2.  Treatment of [Nonresident] Partners, Members

or Shareholders.--(a)  Each nonresident partner, member,

shareholder or holder of a beneficial interest shall be allowed

a credit for such partner's, member's, shareholder's or holder

of a beneficial interest's share of the withholding tax paid by

the partnership, association or Pennsylvania S corporation.

[Such credit shall be allowed for the partner's, member's,

shareholder's or holder of a beneficial interest's taxable year

in which, or with which, the partnership, association or

Pennsylvania S corporation taxable year (for which such tax was

paid) ends.]

(b)  Each resident and nonresident partner, member,

shareholder or holder of a beneficial interest shall be allowed

a credit for the partner's, member's, shareholder's or holder of

a beneficial interest's share of the withholding tax paid by the

lessee under section 324.4.

(c)  The credits under this section shall be allowed for the

partner's, member's, shareholder's or holder of a beneficial

interest's taxable year in which, or with which, the

partnership, association or Pennsylvania S corporation taxable

year for which the tax was paid ends.

Section 17.  The act is amended by adding sections to read:

Section 324.4.  Withholding on Income from Oil and Gas

Interests.--(a)  Every lessee who makes payments to a lessor

under a lease for oil and gas interests located in this

Commonwealth for any taxable year shall pay a withholding tax in

the manner determined by the department.

(b)  Every lessee under subsection (a) shall withhold from

each payment made to a lessor an amount equal to the net amount

payable to the lessor multiplied by the tax rate specified under

section 302(b).

(c)  This section shall not apply to:

(1)  Payments made by a lessee to a lessor if the lessor is:

(i)  The United States or an agency of the Federal

Government.

(ii)  The Commonwealth or a political subdivision of the

Commonwealth.

(iii)  A publicly traded partnership as defined under section

7704 of the Internal Revenue Code of 1986 (Public Law 99-514, 26

U.S.C. § 7704) with equity securities registered with the

Securities and Exchange Commission under section 12 of the

Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78a

et seq.).

(2)  Any lessee that has twenty thousand dollars ($20,000) or

less in Pennsylvania taxable income in any taxable year from

Pennsylvania-sourced oil and gas interests.

(d)  For purposes of this section, the term "lessor" shall

include an individual, estate, trust, partnership, association

or Pennsylvania S corporation.

Section 324.5.  Annual Withholding Statement.--(a)  Every

lessee shall furnish to each lessor an annual statement in the

manner determined by the department showing the total payments

made by the lessee to the lessor during the preceding taxable

year and the amount of the tax deducted and withheld from the

payments under section 324.4.

(b)  Every lessee shall file with the department an annual

statement in the manner determined by the department showing the

total payments made to each lessor subject to withholding during

the preceding taxable year or any portion of the preceding

taxable year and the total amount of tax deducted and withheld

under section 324.4.

(c)  Every lessor shall file a duplicate of the annual

statement furnished by the lessee under this section with the

lessor's State income tax return.

Section 18.  Section 330.1 of the act, amended or added

December 23, 1983 (P.L.370, No.90) and July 13, 1987 (P.L.325,

No.59), is amended to read:

Section 330.1.  Return of Pennsylvania S Corporation.--(a)

Every Pennsylvania S corporation shall make a return for each

taxable year, stating specifically all items of gross income and

deductions, the names and addresses of all persons owning stock

in the corporation at any time during the taxable year, the

number of shares of stock owned by each shareholder at all times

during the taxable year, the amount of money and other property

distributed by the corporation during the taxable year to each

shareholder, the date of each distribution, each shareholder's

pro rata share of each item of the corporation for the taxable

year and such other information as the department may require.

(b)  The return shall be filed on or before thirty days after

the date when the corporation's Federal income tax return is

due.

(c)  Every Pennsylvania S corporation shall also submit to

the department a true copy of the income tax return filed with

the Federal Government at the time the return required under

subsection (a) is filed.

(d)  Each Pennsylvania S corporation required to file a

return under subsection (a) for any taxable year shall, on or

before the day on which the return for the taxable year was

filed, furnish to each person who is a shareholder at any time

during the taxable year a copy of the Resident Schedule of

Shareholder/Partner/Beneficiary Pass Through Income, Loss and

Credits (Schedule RK-1) or the Nonresident Schedule of

Shareholder/Partner/Beneficiary Pass Through Income, Loss and

Credits (Schedule NRK-1) form showing their share of income and

any other information as may be required by the department.

Section 19.  Section 335 of the act, amended or added August

31, 1971 (P.L.362, No.93) and December 23, 2003 (P.L.250,

No.46), is amended to read:

Section 335.  Requirements Concerning Returns, Notices,

Records and Statements.--(a)  The department may prescribe by

regulation for the keeping of records, the content and form of

returns, declarations, statements and other documents and the

filing of copies of Federal income tax returns and

determinations. The department may require any person, by

regulation or notice served upon such person, to make such

returns, render such statements, or keep such records, as the

department may deem sufficient to show whether or not such

person is liable for tax under this article.

(b)  (1)  When required by regulations prescribed by the

department:

(i)  Any person required under the authority of this article

to make a return, declaration, statement, or other document

shall include in such return, declaration, statement or other

document such identifying number as may be prescribed for

securing proper identification of such person.

(ii)  Any person with respect to whom a return, declaration,

statement, or other document is required under the authority of

this article to make a return, declaration, statement, or other

document with respect to another person, shall request from such

other person, and shall include in any such return, declaration,

statement, or other document, such identifying number as may be

prescribed for securing proper identification of such other

person.

(2)  For purposes of this section, the department is

authorized to require such information as may be necessary to

assign an identifying number to any person.

(c)  (1)  Every partnership having a resident partner or

fiduciary of an estate or trust having a resident partner or

beneficiary or having any income derived from sources within

this Commonwealth shall make a return for the taxable year

setting forth all items of income, loss and deduction, and such

other pertinent information as the department may by regulations

prescribe. Such return shall be filed on or before the fifteenth

day of the fourth month following the close of each taxable

year. For purposes of this subsection, "taxable year" means year

or period which would be a taxable year of the partnership if it

were subject to tax under this article.

(2)  Every partnership or fiduciary required to file a return

under paragraph (1) shall also file with the department a true

copy of the income tax return filed with the Federal Government

at the time the return required under paragraph (1) is filed.

(3)  Every partnership or fiduciary required to file a return

under paragraph (1) for any taxable year shall, on or before the

day the return is filed, furnish to each partner or nominee for

another person or to each beneficiary to whom the income or

gains of the estate or trust is taxable, whichever is

applicable, a copy of the Resident Schedule of

Shareholder/Partner/Beneficiary Pass Through Income, Loss and

Credits (Schedule RK-1) or the Nonresident Schedule of

Shareholder/Partner/Beneficiary Pass Through Income, Loss and

Credits (Schedule NRK-1) form showing their share of income and

any information as may be required by the department.

(4)  Failure to file a timely return as required under

paragraph (2) and failure to furnish a copy of the returns

required under paragraph (3) shall result in a penalty of fifty

dollars ($50) for each individual return or individual copy

required.

(d)  The department may prescribe regulations requiring

returns of information to be made and filed on or before

February 28 of each year as to the payment or crediting in any

calendar year of amounts of ten dollars ($10) or more to any

taxpayer. Such returns may be required of any person, including

lessees or mortgagors of real or personal property, fiduciaries,

employers and all officers and employes of this Commonwealth, or

of any municipal corporation or political subdivision of this

Commonwealth having the control, receipt, custody, disposal or

payment of interest, rents, salaries, wages, premiums,

annuities, compensations, remunerations, emoluments or other

fixed or determinable gains, profits or income, except interest

coupons payable to bearer. A duplicate of the statement as to

tax withheld on compensation required to be furnished by an

employer to an employe, shall constitute the return of

information required to be made under this section with respect

to such compensation.

(e)  Any person who is required to make a form W-2G return to

the Secretary of the Treasury of the United States in regard to

taxable gambling or lottery winnings from sources within this

Commonwealth shall file a copy of the form with the department

by March 1 of each year or, if filed electronically, by March 31

of each year.

(f)  (1)  Every partnership, estate, trust or Pennsylvania S

corporation shall maintain an accurate list of partners,

members, beneficiaries or shareholders. The list shall include

current address and tax identification number and shall be

updated to include new and withdrawing partners, members,

beneficiaries or shareholders, including date of withdrawal and

admittance.

(2)  If the partnership, estate, trust or Pennsylvania S

corporation does not maintain an accurate list as required under

paragraph (1), the tax, penalty and interest with respect to the

partner, member, beneficiary or shareholder shall be considered

the tax, penalty and interest of the partnership, estate, trust

or Pennsylvania S corporation and the general partner, tax

matters partner, corporate officer or trustee.

(g)  (1)  Any person who:

(i)  makes payments of income from sources within this

Commonwealth that fall within any of the eight classes of income

enumerated under section 303(a)(1), (2), (3), (4), (5), (6), (7)

and (8);

(ii)  makes payments under subparagraph (i) to an individual,

an entity treated as a partnership for tax purposes or a single

member limited liability company; and

(iii)  is required to make a form 1099-MISC return to the

Secretary of the Treasury of the United States with respect to

the payments, shall file a copy of form 1099-MISC with the

department and send a copy of form 1099-MISC to the payee by

March 1 of each year or, if filed electronically, by March 31 of

each year. If form 1099-MISC filed by a payor with the Secretary

of the Treasury of the United States is not completed in a

manner that State income and State tax withheld information is

reflected on the form, the payor shall update the copies of form

1099-MISC required to be provided under this section to reflect

the information prior to filing it with the department and

sending it to the payee.

(2)  If the payor is required to perform electronic filing

for Pennsylvania employer withholding purposes, the form 1099-

MISC shall be filed electronically with the department.

Section 19.1.  Section 338 of the act, amended July 25, 2007

(P.L.373, No.55), is amended to read:

Section 338.  Assessment.--(a)  The department is authorized

and required to make the inquiries, determinations and

assessments of all taxes imposed by this article.

(b)  If the mode or time for the assessment of any tax is not

otherwise provided for, the department may establish the same by

regulations.

(c)  In the event that any taxpayer fails to file a return

required by this article, the department may make an estimated

assessment (based on information available) of the proper amount

of tax owing by the taxpayer. A notice of assessment in the

estimated amount shall be sent to the taxpayer. The tax shall be

paid within ninety days after a notice of such estimated

assessment has been mailed to the taxpayer, unless within such

period the taxpayer has filed a petition for reassessment in the

manner prescribed by Article XXVII.

(d)  A notice of assessment issued by the department pursuant

to this article shall be mailed to the taxpayer. The notice

shall set forth the basis of the assessment.

[(e)  The notice required by subsection (d) shall be mailed

by certified mail if the assessment is for $300 or more.]

Section 20.  Section 352(j) of the act, added May 7, 1997

(P.L.85, No.7), is amended and subsection (f) is amended by

adding paragraphs to read:

Section 352.  Additions, Penalties and Fees.--* * *

(f)  * * *

(4)  Any person required to file an annual statement with the

department under the provisions of section 324.5 who wilfully

furnishes a false or fraudulent statement or who wilfully fails

to file the statement in the manner, at the time and showing the

information required under section 324.5 and the regulations

prescribed thereunder shall, for each such failure, be subject

to a penalty of fifty dollars ($50).

(5)  Any person required under the provisions of section

324.5 to furnish an annual statement to a lessor who wilfully

furnishes a false or fraudulent statement or who wilfully fails

to furnish a statement in the manner, at the time and showing

the information required by section 324.5 and the regulations

prescribed thereunder shall, for each such failure, be subject

to a penalty of fifty dollars ($50).

(6)  Any person required to file a copy of form 1099-MISC

with the department under the provisions of section 317.2 or

335(g) who wilfully furnishes a false or fraudulent form or who

wilfully fails to file the form in the manner, at the time and

showing the information required under section 335(g) and the

regulations prescribed thereunder shall, for each such failure,

be subject to a penalty of fifty dollars ($50).

(7)  Any person required under the provisions of section

317.1 or 335(g) to furnish a copy of form 1099-MISC to a payee

who wilfully furnishes a false or fraudulent form or who

wilfully fails to furnish a form in the manner, at the time and

showing the information required by section 317.1 or 335(g) and

the regulations prescribed thereunder shall, for each such

failure, be subject to a penalty of fifty dollars ($50).

* * *

(j)  If any amount of tax required to be withheld by a

partnership, association [or], Pennsylvania S corporation or

lessee and paid over to the department under section 324 or

324.4 is not paid on or before the date prescribed therefor,

there shall be added to the tax and paid to the department each

month five per cent of such underpayment for each month or

fraction thereof from the due date, for the period from the due

date to the date paid; but the underpayment shall, for purposes

of computing the addition for any month, be reduced by the

amount of any part of the tax which is paid by the beginning of

that month. The total of such additions shall not exceed fifty

per cent of the amount of such tax. 

Section 21.  The act is amended by adding a section to read:

Section 353.1.  Failure to Timely Remit Tax Withheld.--(a) If

a person wilfully fails to timely remit tax withheld under this

article, the grading for the offense is as follows:

(1)  If the amount of the tax is one thousand dollars

($1,000) or less, the person commits a misdemeanor of the second

degree and, upon conviction, shall be sentenced to pay a fine

not exceeding one thousand dollars ($1,000) or to imprisonment

for not more than two years, or both.

(2)  Except as set forth in paragraph (3), if the amount of

the tax exceeds one thousand dollars ($1,000), the person

commits a misdemeanor of the first degree and, upon conviction,

shall be sentenced to pay a fine not exceeding five thousand

dollars ($5,000) or to imprisonment for not more than five

years, or both.

(3)  If the amount of the tax exceeds two thousand dollars

($2,000), the person commits a felony of the third degree and,

upon conviction, shall be sentenced to pay a fine not exceeding

twenty-five thousand dollars ($25,000) or to imprisonment for

not more than seven years, or both.

(b)  The penalties imposed by this section shall be in

addition to any other penalties imposed by any provision of this

article.

Section 21.1.  Sections 407.1 and 1111-C of the act, amended

July 25, 2007 (P.L.373, No.55), are amended to read:

Section 407.1.  Assessments.--(a)  If the department

determines that unpaid or unreported tax is due the

Commonwealth, the department shall issue an assessment under

this section and sections 407.2, 407.3, 407.4 and 407.5. Such an

assessment is not subject to the settlement procedure in the act

of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code.

(b)  A notice of assessment and demand for payment shall be

mailed to the taxpayer. The notice shall set forth the basis of

the assessment. The assessment shall be paid to the department

upon receipt of the notice of assessment. Payment of the

assessment shall be without prejudice to the right of the

taxpayer to file a petition for reassessment in the manner

prescribed by Article XXVII.

(c)  In the event that a taxpayer fails to file a report for

a tax governed by this article, the department may issue an

estimated assessment based upon the records and information

available or that may come into the department's possession. If

prior to the filing of a report the department estimates that

additional unpaid or unreported tax is due the Commonwealth, the

department may issue additional estimated assessments.

(d)  A notice of estimated assessment and demand for payment

shall be mailed to the taxpayer. The assessment shall be paid to

the department upon receipt of the notice of assessment. Payment

of the estimated assessment does not eliminate the taxpayer's

obligation to file a report.

(e)  A taxpayer shall have no right to petition for

reassessment, petition for refund or otherwise appeal a notice

of estimated assessment except as provided in subsection (f).

(f)  The department shall remove an estimated assessment

within ninety days of the filing of a report and other

information required to determine the tax due the Commonwealth,

whereupon the department may issue an assessment as provided in

subsection (a). Any tax due the Commonwealth that is included in

an estimated assessment shall retain its lien priority as of the

date of the estimated assessment to the extent such amount is

included with an assessment issued upon the review of the filed

report.

[(g)  The notice required by subsections (b) and (d) shall be

mailed by certified mail if the assessment is for $300 or more.]

Section 1111-C.  Assessment and Notice of Tax; Review.--(a)

If any person shall fail to pay any tax imposed by this article

for which he is liable, the department is hereby authorized and

empowered to make an assessment of additional tax and interest

due by such person based upon any information within its

possession or that shall come into its possession. All of such

assessments shall be made within three years after the date of

the recording of the document, subject to the following:

(1)  If the taxpayer underpays the correct amount of the tax

by twenty-five per cent or more, the tax may be assessed at any

time within six years after the date of the recording of the

document.

(2)  If any part of an underpayment of tax is due to fraud or

an undisclosed, intentional disregard of rules and regulations,

the full amount of the tax may be assessed at any time.

(b)  Promptly after the date of such assessment, the

department shall send a copy thereof, including the basis of the

assessment, to the person against whom it was made. Any taxpayer

against whom an assessment is made may petition the department

for a reassessment pursuant to Article XXVII.

[(d)  The notice required by subsection (b) shall be sent by

certified mail if the assessment is for $300 or more.]

Section 21.2.  Section 1296 of the act, amended June 29, 2002

(P.L.559, No.89), is amended to read:

Section 1296.  Disposition of Certain Funds.--Receipts from

the tax imposed by this article shall be deposited into the

General Fund. [Twenty million four hundred eighty-five thousand

dollars ($20,485,000) of the receipts deposited into the General

Fund in accordance with this section shall be transferred

annually to the Agricultural Conservation Easement Purchase

Fund.] Thirty million seven hundred thirty thousand dollars

($30,730,000) of the receipts deposited into the General Fund in

accordance with this section shall be transferred annually to

the Children's Health Fund for health care for indigent

children. The transfers required by this section shall be made

in two equal payments by July 15 and January 15.

Section 21.3.  Section 2005 of the act, amended July 25, 2007

(P.L.373, No.55), is amended to read:

Section 2005.  Assessment by Department.--(a)  If any person

shall fail to pay any tax imposed by this article for which he

is liable, the department is hereby authorized and empowered to

make an assessment of additional tax due by such person, based

upon any information within its possession, or that shall come

into its possession.

(b)  Promptly after the date of such assessment, the

department shall send a copy of the assessment, including the

basis of the assessment, to the person against whom it was made.

Within ninety days after the date upon which the copy of any

such assessment was mailed, such person may file with the

department a petition for reassessment of such taxes. Every

petition for reassessment shall state specifically the reasons

which the petitioner believes entitle him to such reassessment,

and it shall be supported by affidavit that it is not made for

the purpose of delay, and that the facts set forth therein are

true. It shall be the duty of the department, within six months

after the date of any assessment, to dispose of any petition for

reassessment. Notice of the action taken upon any petition for

reassessment shall be given to the petitioner promptly after the

date of reassessment by the department.

[(b.1)  The notice required by subsection (b) shall be sent

by certified mail if the assessment is for $300 or more.]

(c)  Within ninety days after the date of mailing of notice

by the department of the action taken on any petition for

reassessment filed with it, the person against whom such

assessment was made, may, by petition, request the Board of

Finance and Revenue to review such action. Every petition for

review filed hereunder shall state specifically the reason upon

which the petitioner relies, or shall incorporate by reference

the petition for reassessment in which such reasons shall have

been stated. The petition shall be supported by affidavit that

it is not made for the purpose of delay, and that the facts

therein set forth are true. If the petitioner be a corporation,

joint-stock association or limited partnership, the affidavit

must be made by one of the principal officers thereof. A

petition for review may be amended by the petitioner at any time

prior to the hearing, as hereinafter provided. The Board of

Finance and Revenue shall act finally in disposition of such

petitions filed with it within six months after they have been

received, and, in the event of the failure of said board to

dispose of any such petition within six months, the action taken

by the department upon the petition for reassessment shall be

deemed sustained. The Board of Finance and Revenue may sustain

the action taken on the petition for reassessment, or it may

reassess the tax due upon such basis as it shall deem according

to law and equity. Notice of the action of the Board of Finance

and Revenue shall be given by mail, or otherwise, to the

department and to the petitioner.

(d)  In all cases of petitions for reassessment, review or

appeal, the burden of proof shall be upon the petitioner or

appellant, as the case may be.

(e)  Whenever any assessment of additional tax is not paid

within ninety days after the date of the assessment, if no

petition for reassessment has been filed, or within ninety days

from the date of reassessment, if no petition for review has

been filed, or within thirty days from the date of the decision

of the Board of Finance and Revenue upon a petition for review,

or the expiration of the board's time for acting upon such

petition, if no appeal has been made, and in all cases of

judicial sales, receiverships, assignments or bankruptcies, the

department may call upon the Office of Attorney General to

collect such assessment. In such event, in a proceeding for the

collection of such taxes, the person against whom they were

assessed shall not be permitted to set up any ground of defense

that might have been determined by the department, the Board of

Finance and Revenue or the courts. The department may also

certify to the Liquor Control Board, for such action as the

board may deem proper, the fact that any person has failed to

pay or duly appeal from such assessment of additional tax. The

department may also provide, adopt, promulgate and enforce such

rules and regulations, as may be appropriate, to prevent further

shipment or transportation of malt or brewed beverages into this

Commonwealth by any person against whom such unpaid assessment

shall have been made.

Section 21.4.  The act is amended by adding sections to read:

Section 3003.22.  Administrative Bank Attachment for Accounts

of Obligors to the Commonwealth.--(a)  The department may order

the attachment and seizure of funds in an obligor's account that

the department reasonably believes to hold property subject to a

lien in favor of the Commonwealth. Upon receiving seized funds,

the department shall apply the amount seized to the obligor's

lien obligation.

(b)  (1)  If the department has a reasonable belief that an

obligor's account holds property subject to a lien in favor of

the Commonwealth, the department may order the attachment of

funds in the obligor's account by sending a notice to the

financial institution.

(2)  The notice shall be sent by an electronic format or any

other reasonable manner as agreed to by the department and the

financial institution.

(3)  The notice shall include all of the following:

(i)  The name of the obligor.

(ii)  The amount of the Commonwealth's lien, including

interest and penalty accrued up to forty-five days after the

date of notice.

(iii)  The current or last known address of the obligor.

(iv)  The Social Security number, Federal employer

identification number or other taxpayer identification number of

the obligor.

(v)  An order to immediately attach one or more accounts held

by the financial institution in the name of the obligor for an

aggregate amount equal to the lesser of the amounts in all

accounts or the Commonwealth's lien.

(c)  (1)  Upon receipt of the notice described in subsection

(b), the financial institution shall promptly attach one or more

of the accounts of the obligor held by the financial institution

for an aggregate amount equal to the lesser of:

(i)  the total of the amounts in all the accounts of the

obligor held by the financial institution; or

(ii)  the amount stated in the notice.

Upon the attachment and until the financial institution receives

further notice from the department, as provided in this section,

the financial institution may not allow any activity to occur in

any of the accounts attached up to the amount of the attachment.

(2)  Within twenty days after the financial institution

receives the notice described in subsection (b), the financial

institution shall inform the department that the financial

institution has complied with the attachment order and shall

specify the aggregate amount attached pursuant to the order.

(3)  (i)  The financial institution may assess a reasonable

administrative fee against the accounts or the obligor in

addition to the amount attached.

(ii)  In the case of insufficient funds to cover both the fee

authorized by subparagraph (i) and the amount identified in the

notice under subsection (b), the financial institution may first

deduct the fee from the amount attached and retain it from the

amount seized and forwarded to the department as provided in

this section.

(d)  (1)  Except as otherwise provided in paragraph (3),

within ten business days after the department has received

notice from the financial institution under subsection (c)(2) of

compliance with the order to attach the obligor's account, the

department shall send a notice to the obligor by first class

mail to the obligor's current or last known address.

(2)  The notice shall contain the following information:

(i)  The address of the department.

(ii)  The telephone number, address and name of a contact

person at the department.

(iii)  The name and Social Security number, Federal employer

identification number or other taxpayer identification number of

the obligor.

(iv)  The current or last known address of the obligor.

(v)  The total amount of the Commonwealth's lien owed by the

obligor, including interest and penalty accrued up to forty-five

days after the date of notice.

(vi)  The date the notice is being sent.

(vii)  A statement informing the obligor that the department

has ordered the financial institution to attach the amount of

the Commonwealth's lien owed by the obligor from one or more of

the accounts of the obligor.

(viii)  For each account of the obligor, the name of the

financial institution that has attached amounts as required by

this section.

(ix)  A statement that the order may be challenged in

accordance with subsection (e).

(x)  A statement informing the obligor that unless a timely

challenge is made by the obligor or an account holder of

interest under subsection (e), the department shall notify the

financial institution to seize the amount attached by the

financial institution and forward it to the department.

(3)  The department shall not be required to send the notice

described under this subsection if, prior to the time that the

notice must be sent, the department and the obligor agree to an

arrangement under which the obligor will pay amounts owed under

the Commonwealth's lien.

(e)  (1)  An obligor or an account holder of interest may

challenge the actions of the department under this section by

filing a motion with the court of common pleas within ten days

of the date of the notice sent under subsection (d).

(2)  An obligor or an account holder of interest may

challenge the actions of the department based on:

(i)  a mistake as to any of the following:

(A)  The identity of the obligor.

(B)  The ownership of the account.

(C)  The contents of the account.

(D)  The amount of the lien obligation due.

(ii)  a request for spousal relief from joint liability; or

(iii)  any other good cause.

(3)  An obligor or an account holder of interest may not

challenge the actions of the department based on a mistake or

error in the original assessment underlying a lien against the

obligor.

(f)  (1)  If a timely challenge is not made by the obligor or

an account holder of interest under subsection (e), the

department shall direct the financial institution to:

(i)  seize the amount attached by the financial institution

and forward it to the department;

(ii)  reduce the amount attached by the financial institution

to a revised amount as stated by the department, seize the

revised amount and forward it to the department and release the

balance of the account; or

(iii)  release the amount attached by the financial

institution.

(2)  The department may direct a financial institution to

seize and forward attached funds before the time for filing a

timely challenge under subsection (e) upon agreement among the

department, the obligor and, in cases where the department is

aware of an account holder of interest, the account holder of

interest.

(g)  (1)  If a determination is made by the court, pursuant

to a challenge under subsection (e), that the account of the

obligor should not have been attached, the department shall

notify the financial institution, in the manner specified in

subsection (b)(2), to release the amount attached by the

financial institution.

(2)  If a determination is made by the court, pursuant to a

challenge under subsection (e), to reduce the amount attached by

the financial institution, the department shall notify the

financial institution, in the manner specified in subsection

(b)(2), to revise the amount as stated by the department, to

seize and forward the revised amount to the department and to

release the balance of the account attached by the financial

institution.

(3)  If a determination is made by the court, pursuant to a

challenge made under subsection (e), that the attachment by the

financial institution was proper, the department shall notify

the financial institution, in the manner specified in subsection

(b)(2), to seize the amount attached by the financial

institution and forward it to the department.

(h)  A financial institution that complies with an order and

notice from the department under this section is not liable to

any person, including the department, the obligor or any account

holder of interest, for any of the following:

(1)  disclosing information to the department under this

section;

(2)  sending any amount seized to the department;

(3)  wrongful dishonor or any other claim relating to the

attachment and seizure of any account as ordered by the

department; or

(4)  any other action taken in good faith to comply with the

requirements of this section.

(i)  A financial institution shall not be required to

reimburse fees assessed against an account or an obligor as a

result of the department instituting an action under this

section or as otherwise permitted by law or authorized by

contract.

(j)  (1)  If, under the provisions of this section, a

financial institution fails to attach accounts as required in a

timely manner or fails to forward the proper amount of funds

attached to the department in a timely manner, the financial

institution shall be subject to a penalty of five per cent of

the amount of funds which should have been attached or forwarded

for each month or fraction thereof from the date the funds

should have been attached or forwarded to the date the funds are

attached or forwarded. The total amount of the penalty shall not

exceed fifty per cent of the proper amount of funds which should

have been attached or forwarded.

(2)  The penalty imposed by this section shall be assessed,

enforced, administered or collected under the provisions of

Article II.

(k)  This section shall not be construed to prohibit the

department or any other Commonwealth agency from collecting

obligations due from an obligor in any other manner authorized

by law.

(l)  As used in this section, the following words and phrases

shall have the meanings given to them in this subsection:

"Account."  (1)  Any of the following:

(i)  Funds from a demand deposit account, checking account,

negotiable order of withdrawal account, savings account, time

deposit account, money market mutual fund account or certificate

of deposit account.

(ii)  Funds paid toward the purchase of shares or other

interest in an entity as described in paragraphs (1) and (2) of