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Pennsylvania House of Representatives
06/01/2024 11:59 PM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20230&cosponId=40284
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House of Representatives
Session of 2023 - 2024 Regular Session

MEMORANDUM

Posted: March 22, 2023 03:56 PM
From: Representative David H. Zimmerman
To: All House members
Subject: Shortening the Audit Window to Align with Federal Standards
 
In the very near future, I plan to introduce legislation that will establish a 7 YEAR time frame for the Pennsylvania Department of Revenue (DOR) to collect assessed personal income tax. This shortening of the collection window will align the Commonwealth with the generally accepted federal window for DOR to look back to collect assessed taxes, allowing business owners and individuals a clear and consistent time frame for them to store records.

Under current law, there is a gap between when the Internal Revenue Service/Department of Treasury can look back and collect Federal taxes in comparison to when the DOR can collect assessed state taxes, especially personal income taxes. As a result, I have heard from a number of constituents who have been receiving notice that they owe the Commonwealth assessed tax liabilities, beyond the standard guidelines of recommended record keeping based on IRS rules, but before the limit of where DOR can collect, leaving citizens feeling confused, defenseless, and caught off guard. This is not only a burden on taxpayers, but I believe unfair and inefficient governance.

My bill will build upon the enactment of Act 90 of 2019 to establish a 7 YEAR collection window, similar to that of other states as well as federal statute, in which the DOR would be eligible and required to collected assessed state taxes, with exception for Inheritance Tax liabilities as prescribed under current law. The only exception to this would be in the instance were a citizen knowingly commits fraud, in an effort to avoid paying assessed taxes during the established time window.

Please join me in Cosponsoring this legislation to help ease the tax burden on hardworking Pennsylvania citizens.
 
 


Introduced as HB1666