PRINTER'S NO. 1747
No. 1486 Session of 1975
INTRODUCED BY BRUNNER, DeMEDIO AND MILLIRON, JUNE 16, 1975
REFERRED TO COMMITTEE ON FINANCE, JUNE 17, 1975
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," adding provisions relating to the collection of
11 certain tax assessments that the department deems to be in
12 jeopardy.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
16 the "Tax Reform Code of 1971," is amended by adding a section to
17 read:
18 Section 232.1. Jeopardy Assessments.--(a) Filing and Notice.
19 If the department determines that an assessment or a collection
20 of a deficiency will be jeopardized, in whole or in part by
21 delay, it may mail or issue notice of its findings to the
22 taxpayer, together with a demand for immediate payment of the
23 tax or the deficiency declared to be in jeopardy including
1 interest, penalties and additions thereto.
2 (b) Collection.--A jeopardy assessment is immediately due
3 and payable, and proceedings for collection may be commenced at
4 once. The taxpayer, however, may stay collection and prevent the
5 jeopardy assessment from becoming final by filing, within ten
6 days after the date of the notice of jeopardy assessment, a
7 petition for reassessment, notwithstanding the provisions of
8 section 232 to the contrary, accompanied by a bond or other
9 security in such amounts as the department may deem necessary,
10 not exceeding double the amount (including interest and
11 penalties and additions thereto) as to which the stay is
12 desired. Said bond and security shall conform to the provisions
13 of section 277.
14 (c) When Final.--If a petition for reassessment, accompanied
15 by bond or other security is not filed within the ten-day
16 period, the assessment becomes final.
17 (d) Hearing.--If the taxpayer has so requested in his
18 petition, the department shall grant him or his authorized
19 representative an oral hearing.
20 (e) Action on Petition for Reassessment.--The department
21 shall consider the petition for reassessment along with any
22 evidence submitted by the petitioner at its hearing, and notify
23 the taxpayer of its decision thereon, in accordance with the
24 provisions of section 232, which decision shall be final unless
25 the taxpayer files a petition for review pursuant to the
26 provisions of section 234.
27 (f) Presumptive Evidence of Jeopardy.--Any proceedings
28 brought to enforce payment of taxes made due and payable by this
29 section, the determination of the department under subsection
30 (a) is for all purposes presumptive evidence that the collection
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1 of the assessment or deficiency was in jeopardy. A certificate
2 of the mailing notice is presumptive evidence that the notices
3 were mailed or issued.
4 (g) Abatement.--The Secretary of Revenue or his delegate may
5 abate the jeopardy assessment if he finds that jeopardy does not
6 exist. Such abatement may not be made after a decision of the
7 department in respect of the deficiency has been rendered or, if
8 no petition is filed with the department, after the expiration
9 of the period for filing such petition. The period of limitation
10 on the making of assessments and levy or a proceeding in court
11 for collection, in respect of any deficiency, shall be
12 determined as if the jeopardy assessment so abated had not been
13 made, except that the running of such period shall in any event
14 be suspended for the period from the date of such jeopardy
15 assessment until the expiration of the tenth day after the day
16 on which such jeopardy assessment is abated.
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