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PRIOR PRINTER'S NO. 1573
PRINTER'S NO. 1750
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1198
Session of
2015
INTRODUCED BY DUNBAR, BARRAR, GROVE, LAWRENCE, MILLARD, MURT,
MUSTIO, PEIFER, PETRI, REESE AND GABLER, MAY 13, 2015
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 9, 2015
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 corporate net income tax, providing for
amended reports.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding a section to
read:
Section 406.1. Amended Reports.-- (a) Except in instances
where either section 406 or subsection (b) applies, a taxpayer
may file an amended report on a form prescribed by the
department and under oath or affirmation to bring to the
attention of the department a correction to the original report
and provide additional information that the taxpayer requests
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the department to consider, within three years after the filing
of the original report, including extensions.
(b) (1) except in instances where a taxpayer would be
entitled to an adjustment of its tax liability, a taxpayer may
not file an amended report in lieu of a timely appeal of an
assessment.
(2) A taxpayer may file an amended report prior to the
actual receipt of an assessment or, if a petition raising other
issues is pending, during the administrative or judicial appeal.
(3) The department may issue proposed regulations within six
months of the effective date of this section that provide
guidance as to when a taxpayer may file an amended report in
lieu of a timely appeal of an assessment.
(c) (1) In order for the department to consider an amended
report, a taxpayer must consent in writing, on a form prescribed
by the department, to the extension of the assessment period for
the tax year to one year from the date of the filing of the
amended report or three years from the filing of the original
report, whichever period last expires.
(2) At any time before the expiration of the applicable
statute of limitations, a taxpayer may consent to extend the
period for the department to consider an amended report.
(3) A taxpayer shall maintain records until the end of the
extended assessment period.
(d) An amended report filed with the department must contain
the following:
(1) An agreement to the extension of the assessment period
as described in subsection (b) (C) .
(2) The calculation of the amended tax liability.
(3) Revised Pennsylvania supporting schedules, if
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applicable.
(4) An explanation of the changes being made and the reason
for the changes.
(5) Other information that the department may request to
support the calculation of the amended tax liability.
(e) (1) The department shall review an amended report filed
prior to the issuance of an assessment.
(2) If the department subsequently issues an assessment, any
appeal of the taxpayer must be filed in accordance with section
2703 and include any issues raised in the amended report with
which the taxpayer disagrees with the action of the department.
(3) If the department does not issue an assessment and the
taxpayer disagrees with the department's action on the amended
report, the taxpayer may file an appeal pursuant to subsection
(h).
(f) An amended report involving a tax year under appeal
shall be forwarded to the appropriate administrative appeal
board or to the Office of Attorney General to be included in the
appeal.
(g) (1) Unless the taxpayer has requested or consented to
an extension, the department shall review an amended report and
advise the taxpayer in writing within one year of the filing
date of the amended report whether the department accepts the
amended report. The notice shall provide an explanation of the
department's action.
(2) If the department fails to provide timely notice, the
amended report shall be deemed accepted as filed and the
department shall adjust its records accordingly.
(h) (1) Except where:
(i) an amended report has been incorporated into an
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administrative or judicial proceeding;
(ii) an assessment is issued after consideration of an
amended report;
(iii) an amended report is filed in lieu of a petition for
reassessment; or
(iv) an amended report requesting a refund or credit was
filed more than three years from the date the applicable tax was
paid or deemed paid.
A taxpayer who disagrees with the action of the department may
file an appeal with the board of appeals within ninety days of
the mailing date of the written notice required in subsection
(g).
(2) A taxpayer may not appeal the department's action on an
amended report:
(i) filed in lieu of a petition for reassessment; or
(ii) requesting a refund or credit filed more than three
years from the date the applicable tax was paid or deemed paid.
(3) If a taxpayer disagrees with the action of the
department, in the instance where:
(i) an amended report was filed in lieu of a petition for
reassessment; or
(ii) the taxpayer had the right to pay the assessed tax,
interest and penalty and file a petition for refund or credit
instead of an amended report.
The taxpayer may pay the tax, interest and penalty due and file
a petition for refund in accordance with section 3003.1.
(i) This section applies to all taxes that incorporate by
reference Part III of this article.
Section 2. The addition of section 406.1 of the act shall
apply to amended reports filed on or after the effective date of
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this section.
Section 3. This act shall take effect immediately.
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