PRIOR PRINTER'S NO. 1334 PRINTER'S NO. 1893
No. 993 Session of 2005
INTRODUCED BY BROWNE, WONDERLING, ORIE, M. WHITE, LEMMOND,
EARLL, BOSCOLA, RAFFERTY, JUBELIRER AND REGOLA,
NOVEMBER 14, 2005
SENATOR EARLL, FINANCE, AS AMENDED, JUNE 20, 2006
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," further providing, in sales and use tax, for
11 assessment and for reassessment; deleting provisions relating
12 to review by Board of Finance and Revenue; further providing
13 for refund of sales tax attributed to bad debt; deleting
14 provisions relating to refund or credit for overpayment and
15 to restriction on refunds; further providing, in sales and
16 use tax, for refunds, for refund petition and for extended
17 time for filing special petition for refund; further
18 providing, in personal income tax, for assessment, for
19 jeopardy assessments, for procedure for reassessment, for
20 restrictions on refunds and for limitations on refund or
21 credit; further providing, in corporate net income tax, for
22 settlement and resettlement; providing, in corporate net
23 income tax, for assessments, for jeopardy assessments, for
24 limitations on assessments and for extension of limitation
25 period; further providing for enforcement relating to
26 corporate net income tax; providing, in corporate net income
27 tax, for collection and for actions to collect and defenses;
28 further providing, in gross receipts tax, for imposition;
29 further providing, in realty transfer tax, for determination
30 and notice, for lien and for refunds; further providing for
31 mutual thrift institutions tax imposition and report; further
32 providing, in malt beverage tax, for assessment and for
33 refund of tax; and providing for procedure and
1 administration.
2 AMENDING THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), ENTITLED "AN <--
3 ACT RELATING TO TAX REFORM AND STATE TAXATION BY CODIFYING
4 AND ENUMERATING CERTAIN SUBJECTS OF TAXATION AND IMPOSING
5 TAXES THEREON; PROVIDING PROCEDURES FOR THE PAYMENT,
6 COLLECTION, ADMINISTRATION AND ENFORCEMENT THEREOF; PROVIDING
7 FOR TAX CREDITS IN CERTAIN CASES; CONFERRING POWERS AND
8 IMPOSING DUTIES UPON THE DEPARTMENT OF REVENUE, CERTAIN
9 EMPLOYERS, FIDUCIARIES, INDIVIDUALS, PERSONS, CORPORATIONS
10 AND OTHER ENTITIES; PRESCRIBING CRIMES, OFFENSES AND
11 PENALTIES," FURTHER PROVIDING, IN SALES AND USE TAX, FOR
12 ASSESSMENT, FOR REASSESSMENT, FOR REVIEW BY BOARD OF FINANCE
13 AND REVENUE, FOR APPEAL TO COMMONWEALTH COURT, FOR REFUND OF
14 SALES TAX ATTRIBUTED TO BAD DEBT, FOR REFUND OR CREDIT FOR
15 OVERPAYMENT, FOR RESTRICTION ON REFUNDS, FOR REFUNDS, FOR
16 REFUND PETITION, FOR REVIEW BY BOARD OF FINANCE AND REVIEW,
17 FOR APPEAL TO COMMONWEALTH COURT AND FOR EXTENDED TIME FOR
18 FILING SPECIAL PETITION FOR REFUND; FURTHER PROVIDING, IN
19 PERSONAL INCOME TAX, FOR ASSESSMENT, FOR JEOPARDY
20 ASSESSMENTS, FOR PROCEDURE FOR REASSESSMENT, FOR REVIEW BY
21 BOARD OF FINANCE AND REVENUE, FOR APPEAL TO COMMONWEALTH
22 COURT, FOR RESTRICTIONS ON REFUNDS AND FOR LIMITATIONS ON
23 REFUND OR CREDIT; FURTHER PROVIDING, IN CORPORATE NET INCOME
24 TAX, FOR DEFINITIONS, FOR REPORTS AND PAYMENT OF TAX; FOR
25 CHANGES MADE BY FEDERAL GOVERNMENT, FOR SETTLEMENT AND
26 RESETTLEMENT AND FOR ENFORCEMENT RELATING TO CORPORATE NET
27 INCOME TAX; PROVIDING, IN CORPORATE NET INCOME TAX, FOR
28 ASSESSMENTS, FOR JEOPARDY ASSESSMENTS, FOR LIMITATIONS ON
29 ASSESSMENTS, FOR EXTENSION OF LIMITATION PERIOD, FOR AUDIT BY
30 AUDITOR GENERAL AND FOR COLLECTION; FURTHER PROVIDING, IN
31 GROSS RECEIPTS TAX, FOR IMPOSITION; FURTHER PROVIDING, IN
32 REALTY TRANSFER TAX, FOR DETERMINATION AND NOTICE, FOR LIEN
33 AND FOR REFUNDS; FURTHER PROVIDING, IN MUTUAL THRIFT
34 INSTITUTIONS TAX, FOR IMPOSITION AND REPORT; PROVIDING, IN
35 MALT BEVERAGE TAX, FOR ASSESSMENT BY DEPARTMENT; PROVIDING
36 FOR PROCEDURE AND ADMINISTRATION; FURTHER PROVIDING, IN
37 GENERAL PROVISIONS, FOR ESTIMATED TAX, FOR UNDERPAYMENT, FOR
38 REFUND PETITIONS AND FOR TIMELY FILING; AND PROVIDING, IN
39 GENERAL PROVISIONS, FOR ASSESSMENTS TO BE MADE BY DEPARTMENT.
40 The General Assembly of the Commonwealth of Pennsylvania
41 hereby enacts as follows:
42 Section 1. Sections 230 and 232 of the act of March 4, 1971 <--
43 (P.L.6, No.2), known as the Tax Reform Code of 1971, are amended
44 to read:
45 Section 230. Assessment.--The department is authorized and
46 required to make the inquiries, determinations and assessments
47 of the tax (including interest, additions and penalties) imposed
48 by this article. A notice of assessment and demand for payment
49 shall be mailed by certified mail to the taxpayer. The notice
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1 shall set forth in reasonable detail the basis of the
2 assessment.
3 Section 232. Reassessment.--Any taxpayer against whom an
4 assessment is made may petition the department for a
5 reassessment pursuant to Article XXVII. [Notice of an intention
6 to file such a petition shall be given to the department within
7 thirty days of the date the notice of assessment was mailed to
8 the taxpayer, except that the department for due cause may
9 accept such notice within ninety days of the date the notice of
10 assessment was mailed. The department by registered mail shall
11 supply the taxpayer with a statement setting forth in reasonable
12 detail the basis of the assessment within thirty days after
13 receipt of the taxpayer's notice of intention to file a petition
14 for reassessment. A petition for reassessment shall thereafter
15 be filed within thirty days after such basis of assessment has
16 been mailed to the taxpayer. Such petition shall set forth in
17 reasonable detail the grounds upon which the taxpayer claims
18 that the assessment is erroneous or unlawful, in whole or in
19 part, and shall be accompanied by an affidavit or affirmation
20 that the facts contained therein are true and correct and that
21 the petition is not interposed for delay. An extension of time
22 for filing the petition may be allowed for cause but in no case
23 shall such extension exceed one hundred twenty days. The
24 department shall hold such hearings as may be necessary for the
25 purpose, at such times and places as it may determine, and each
26 taxpayer who has duly filed such petition for reassessment shall
27 be notified by the department of the time when, and the place
28 where, such hearing in his case will be held.
29 It shall be the duty of the department, within six months
30 after receiving a filed petition for reassessment, to dispose of
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1 the issue raised by such petition and mail notice of the
2 department's decision to the petitioner: Provided, however, That
3 the taxpayer and the department may, by stipulation, extend such
4 disposal time by not more than six additional months.]
5 Section 2. Section 234 of the act is repealed.
6 Section 3. Section 247.1(a) of the act, amended June 22,
7 2001 (P.L.353, No.23), is amended to read:
8 Section 247.1. Refund of Sales Tax Attributed to Bad Debt.--
9 (a) A vendor may file a petition for refund of sales tax paid
10 to the department that is attributed to a bad debt if all of the
11 following apply:
12 (1) The purchaser fails to pay the vendor the total purchase
13 price.
14 (2) The purchase price is written off, either in whole or in
15 part, as a bad debt on the vendor's books and records.
16 (3) The bad debt has been deducted for Federal income tax
17 purposes under section 166 of the Internal Revenue Code of 1986
18 (Public Law 99-514, 26 U.S.C. § 166).
19 The petition shall be filed with the department within the time
20 limitations prescribed by section [3003.1 of this act.] 2703 of
21 this act and shall be governed by the procedure of Article
22 XXVII.
23 * * *
24 Section 4. Sections 250 and 251 of the act are repealed.
25 Section 5. Section 252 of the act, amended April 23, 1998
26 (P.L.239, No.45), is amended to read:
27 Section 252. Refunds.--The department shall, pursuant to the
28 provisions of [sections 253 and 254] Article XXVII, refund all
29 taxes, interest and penalties paid to the Commonwealth under the
30 provisions of this article and to which the Commonwealth is not
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1 rightfully entitled. Such refunds shall be made to the person,
2 his heirs, successors, assigns or other personal
3 representatives, who actually paid the tax: Provided, That no
4 refund shall be made under this section with respect to any
5 payment made by reason of an assessment with respect to which a
6 taxpayer has filed a petition for reassessment pursuant to
7 section [232 of this article] 2702 of Article XXVII to the
8 extent that said petition has been determined adversely to the
9 taxpayer by a decision which is no longer subject to further
10 review or appeal: Provided further, That nothing contained
11 herein shall be deemed to prohibit a taxpayer who has filed a
12 timely petition for reassessment from amending it to a petition
13 for refund where the petitioner has paid the tax assessed.
14 Section 6. Section 253 of the act, amended May 7, 1997
15 (P.L.85, No.7), is amended to read:
16 Section 253. Refund Petition.--(a) Except as provided for
17 in section 256 and in subsection (b) [and (d)] of this section,
18 the refund or credit of tax, interest or penalty provided for by
19 section 252 shall be made only where the person who has actually
20 paid the tax files a petition for refund with the department
21 under [section 3003.1. Such petition for refund must set forth
22 in reasonable detail the grounds upon which the taxpayer claims
23 that the Commonwealth is not rightfully entitled to such tax,
24 interest or penalty, in whole or in part, and shall be
25 accompanied by an affidavit affirming that the facts contained
26 therein are true and correct. The department may hold such
27 hearings as may be necessary for the purpose at such times and
28 places as it may determine, and each person who has duly filed a
29 refund petition shall be notified by the department of the time
30 when, and the place where, such hearing in his case will be
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1 held.] Article XXVII.
2 (b) A refund or credit of tax, interest or penalty, paid as
3 a result of an assessment made by the department under section
4 231, shall be made only where the person who has actually paid
5 the tax files with the department a petition for a refund with
6 the department under [section 3003.1(d)] Article XXVII. The
7 filing of a petition for refund, under the provisions of this
8 subsection, shall not affect the abatement of interest,
9 additions or penalties to which the person may be entitled by
10 reason of his payment of the assessment.
11 [(c) It shall be the duty of the department, within six
12 months after receiving a petition for refund, to dispose of the
13 issue raised by such petition, and mail notice of the
14 department's decision to the petitioner: Provided, however, That
15 the taxpayer and the department may, by stipulation, extend such
16 disposal time by not more than six additional months.
17 (d) Notwithstanding any other provision of this section
18 where any tax, interest or penalty has been paid under a
19 provision of this article subsequently held by final judgment of
20 a court of competent jurisdiction to be unconstitutional, or
21 under an interpretation of such provision subsequently held by
22 such court to be erroneous, a petition for refund may be filed
23 either before or subsequent to final judgment, but such petition
24 must be filed under section 3003.1. The department shall have
25 jurisdiction to hear and determine any such petition filed prior
26 to such final judgment only if, at the time of filing of the
27 petition, proceedings are pending in a court of competent
28 jurisdiction wherein the claim of unconstitutionality or of
29 erroneous interpretation, made in the petition for refund may be
30 established, and in such case, the department shall not take
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1 final action upon the petition for refund until the judgment
2 determining the question involved in such petition has become
3 final.]
4 Section 7. Section 254 of the act is repealed.
5 Section 8. Section 256 of the act is amended to read:
6 Section 256. Extended Time for Filing Special Petition for
7 Refund.--Any party to a transaction who has paid tax by reason
8 of a transaction with respect to which the department is
9 assessing tax against another person may, within six months
10 after the filing by the department of the assessment against
11 such other person, file a special petition for refund,
12 notwithstanding his failure to [file a regular petition within
13 three years of the payment.] timely file a petition pursuant to
14 section 2703 of Article XXVII. The provisions of [sections 253,
15 254 and 255] Article XXVII shall be applicable to such special
16 petition for refund, except that the department need not act on
17 such petition until there is a final determination as to the
18 propriety of the assessment filed against the other party to the
19 transaction. Where a petition is filed under this provision in
20 order to take advantage of the extended period of limitations,
21 overpayments by the petitioner shall be refunded but only to the
22 extent of the actual tax (without consideration of interest and
23 penalties) paid by the other party to the transaction. The
24 purpose of this section is to avoid duplicate payment of tax
25 where a determination is made by the department that one party
26 to a transaction is subject to tax, and another party to the
27 transaction has previously paid tax with respect to such
28 transaction and, as such, this section shall be construed as
29 extending right beyond that provided for by section [253] 2703,
30 and not to limit such other section.
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1 Section 9. Sections 338, 339 and 340 of the act, added
2 August 31, 1971 (P.L.362, No.93), are amended to read:
3 Section 338. Assessment.--(a) The department is authorized
4 and required to make the inquiries, determinations and
5 assessments of all taxes imposed by this article.
6 (b) If the mode or time for the assessment of any tax is not
7 otherwise provided for, the department may establish the same by
8 regulations.
9 (c) In the event that any taxpayer fails to file a return
10 required by this article, the department may make an estimated
11 assessment (based on information available) of the proper amount
12 of tax owing by the taxpayer. A notice of assessment in the
13 estimated amount shall be sent to the taxpayer. The tax shall be
14 paid within ninety days after a notice of such estimated
15 assessment has been mailed to the taxpayer, unless within such
16 period the taxpayer has filed a petition for reassessment in the
17 manner prescribed by [section 340 of this article.] Article
18 XXVII.
19 (d) A notice of assessment issued by the department pursuant
20 to this article shall be mailed by certified mail to the
21 taxpayer. The notice shall set forth in reasonable detail the
22 basis of the assessment.
23 Section 339. Jeopardy Assessments.--(a) Jeopardy
24 Assessments, Filing and Notice. If the department believes that
25 the assessment or the collection of a deficiency will be
26 jeopardized in whole or in part by delay, it may mail or issue
27 notice of its finding to the taxpayer, together with a demand
28 for immediate payment of the tax or the deficiency declared to
29 be in jeopardy including interest and penalties and additions
30 thereto, if any.
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1 (b) Closing of Taxable Year. If the department believes that
2 a taxpayer designs quickly to depart from the State or to remove
3 his property therefrom or to conceal himself or his property
4 therein, or to do any other act tending to prejudice or to
5 render wholly or partly ineffectual proceedings to collect the
6 tax for the taxable year then last past or the taxable year then
7 current unless such proceedings be brought without delay, the
8 department shall declare the taxable period for such taxpayer
9 immediately terminated and shall cause notice of such finding
10 and declaration to be given the taxpayer, together with a demand
11 for immediate payment of the tax for the taxable period so
12 declared terminated and of the tax for the preceding taxable
13 year or so much of such tax as is unpaid, whether or not the
14 time otherwise allowed by law for filing return and paying the
15 tax has expired; and such taxes shall thereupon become
16 immediately due and payable.
17 (c) Jeopardy Assessments, Collection. A jeopardy assessment
18 is immediately due and payable, and proceedings for collection
19 may be commenced at once. The taxpayer, however, may stay
20 collection and prevent the jeopardy assessment from becoming
21 final by filing, within ten days after the date of the notice of
22 jeopardy assessment, a petition for reassessment,
23 notwithstanding the provisions of section [340] 2702 to the
24 contrary, accompanied by a bond or other security in such
25 amounts as the department may deem necessary, not exceeding
26 double the amount (including interest and penalties and
27 additions thereto) as to which the stay is desired.
28 (d) Jeopardy Assessment, When Final. If a petition for
29 reassessment, accompanied by bond or other security is not filed
30 within the ten-day period, the assessment becomes final.
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1 (e) Jeopardy Assessments, Hearing. If the taxpayer has so
2 requested in his petition, the department shall grant him or his
3 authorized representative an oral hearing.
4 (f) Jeopardy Assessments, Action on Petition for
5 Reassessment. The department shall consider the petition for
6 reassessment and notify the taxpayer of its decision thereon.
7 Its decision as to the validity of the jeopardy assessment shall
8 be final, unless the taxpayer within ninety days after
9 notification of the department's decision files a petition for
10 review authorized under section [341] 2705.
11 (g) Jeopardy Assessments, Presumptive Evidence of Jeopardy.
12 In any proceeding brought to enforce payment of taxes made due
13 and payable by this section, the belief of the department under
14 subsection (a) whether made after notice to the taxpayer or not,
15 is for all purposes presumptive evidence that the assessment or
16 collection of the tax or the deficiency was in jeopardy. A
17 certificate of the department of the mailing or issuing of the
18 notices specified in this section is presumptive evidence that
19 the notices were mailed or issued.
20 Section 340. Procedure for Reassessment.--[Promptly after
21 the date of an assessment by the department, the department
22 shall send by mail a copy thereof to the person against whom it
23 was made. Within ninety days after the date upon which the copy
24 of any such assessment was mailed, such person may file with the
25 department a petition for reassessment of such tax. Every
26 petition for reassessment shall state specifically the reasons
27 which the petitioner believes entitled him to such reassessment,
28 and it shall be supported by affidavit that it is not made for
29 the purpose of delay and that the facts set forth therein are
30 true. It shall be the duty of the department, within six months
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1 after receiving a petition for reassessment, to dispose of such
2 petition for reassessment. Notice of the action taken upon any
3 petition for reassessment shall be given to the petitioner
4 promptly thereafter.] Any taxpayer against whom an assessment is
5 made may petition the department for a reassessment pursuant to
6 Article XXVII.
7 Section 10. Section 341 of the act is repealed.
8 Section 11. Section 347 of the act, amended July 1, 1985
9 (P.L.78, No.29), is amended to read:
10 Section 347. Restrictions on Refunds.--[No] A credit or
11 refund [shall] may be made under section 346 [without the
12 approval of the Board of Finance and Revenue, except such
13 credits or refunds as arise]:
14 (1) By reason of the overpayment of an installment of
15 estimated tax;
16 (2) Upon reassessment [or upon];
17 (3) Upon the filing of a final return or amended final
18 return showing any overpayment of tax.
19 Section 12. Section 350 of the act, amended May 7, 1997
20 (P.L.85, No.7), is amended to read:
21 Section 350. Limitations on Refund or Credit.--Any
22 application for refund must be filed with the department under
23 section [3003.1] 2703.
24 Section 13. The heading of Part IV of Article IV of the act
25 is amended to read:
26 PART IV
27 [SETTLEMENT AND RESETTLEMENT]
28 ASSESSMENT AND COLLECTION OF TAX
29 Section 14. Section 407 of the act is amended by adding a
30 subsection to read:
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1 Section 407. Settlement and Resettlement.--* * *
2 (e.1) This section applies to taxable years beginning prior
3 to January 1, 2007.
4 Section 15. The act is amended by adding sections to read:
5 Section 407.1. Assessments.--(a) If the department
6 determines that unpaid or unreported tax is due the
7 Commonwealth, the department shall issue an assessment.
8 (b) A notice of assessment and demand for payment shall be
9 mailed by certified mail to the taxpayer. The notice shall set
10 forth in reasonable detail the basis of the assessment. The
11 assessment shall be paid to the department upon receipt of the
12 notice of assessment. Payment of the assessment shall be without
13 prejudice to the right of the taxpayer to file a petition for
14 reassessment in the manner prescribed by Article XXVII.
15 (c) In the event that a taxpayer fails to file a report for
16 a tax governed by this article, the department may issue an
17 estimated assessment, based upon the records and information
18 available or that may come into the department's possession. If
19 prior to the filing of a report the department estimates that
20 additional unpaid or unreported tax is due the Commonwealth, the
21 department may issue additional estimated assessments.
22 (d) A notice of estimated assessment and demand for payment
23 shall be mailed by certified mail to the taxpayer. The
24 assessment shall be paid to the department upon receipt of the
25 notice of assessment. Payment of the estimated assessment does
26 not eliminate the taxpayer's obligation to file a report.
27 (e) A taxpayer shall have no right to petition for
28 reassessment, petition for refund or otherwise appeal a notice
29 of estimated assessment except as provided in subsection (f).
30 (f) The department shall remove an estimated assessment
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1 within ninety days of the filing of a report and other
2 information required to determine the tax due the Commonwealth
3 whereupon the department may issue an assessment as provided in
4 subsection (a). Any tax due the Commonwealth that is included in
5 an estimated assessment shall retain its lien priority as of the
6 date of the estimated assessment to the extent such amount is
7 included with an assessment issued upon the review of the filed
8 report.
9 Section 407.2. Jeopardy Assessments.--(a) If the department
10 believes that the assessment or the collection of unpaid or
11 unreported tax will be jeopardized in whole or in part by delay,
12 it shall issue a jeopardy assessment.
13 (b) If the department believes that a taxpayer intends to
14 depart from the Commonwealth, remove the taxpayer's property
15 from the Commonwealth, conceal himself or property of the
16 taxpayer from the Commonwealth, or to do any other act that may
17 prejudice or render wholly or partly ineffectual any action to
18 collect any tax for the prior or current tax periods unless the
19 action is brought without delay, the department shall declare
20 the current tax period of the taxpayer immediately terminated.
21 In this case, the department shall issue a jeopardy assessment
22 for the tax period declared terminated and for all prior tax
23 periods, whether or not the time otherwise allowed by law for
24 filing a report or paying the tax has expired.
25 (c) A notice of jeopardy assessment and demand for payment
26 shall be mailed by certified mail to the taxpayer. The notice of
27 jeopardy assessment shall include the amount of the bond or
28 other security required to stay collection of the assessment.
29 (d) The jeopardy assessment shall be paid to the department
30 upon receipt of the notice of jeopardy assessment. Payment of
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1 the jeopardy assessment does not eliminate the taxpayer's
2 obligation to file a report. If prior to the filing of a report
3 the department estimates that additional unpaid tax is due the
4 Commonwealth, the department may issue additional jeopardy
5 assessments or estimated assessments pursuant to section 407.1.
6 (e) A jeopardy assessment is immediately due and payable,
7 and proceedings for collection may be commenced at once. The
8 following apply:
9 (1) The collection of the whole or any amount of a jeopardy
10 assessment may be stayed, at any time before the assessment
11 becomes final, by filing with the department a bond or other
12 security in such amounts as the department may deem necessary
13 not exceeding one hundred twenty per cent of the tax for which
14 the stay is desired.
15 (2) Upon the filing of the bond or other security the
16 collection of the amount assessed that is covered by the bond or
17 other security shall be stayed. The taxpayer shall have the
18 right to waive the stay at any time in respect of the whole or
19 any part of the amount covered by the bond or other security. If
20 the taxpayer waives any part of the amount covered by the bond
21 or other security, then the bond or other security shall be
22 proportionately reduced upon payment of the amount waived. If
23 any portion of the jeopardy assessment is abated, the bond or
24 other security shall be proportionately reduced at the request
25 of the taxpayer.
26 (f) (1) A taxpayer may prevent a jeopardy assessment from
27 becoming final by filing a petition for reassessment with the
28 department within thirty days after the mailing date of the
29 notice of jeopardy assessment. The issues to be addressed in the
30 review of the petition shall include:
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1 (i) Whether the making of the jeopardy assessment is
2 reasonable under the circumstances.
3 (ii) Whether the amount assessed as a result of the jeopardy
4 assessment is appropriate under the circumstances.
5 (2) The department shall issue a decision and order
6 disposing of a petition filed under paragraph (1) within sixty
7 days after receipt of the petition. Notice of the department's
8 decision and order disposing of the petition shall be mailed to
9 the petitioner.
10 (3) A taxpayer may file a petition for review of the
11 department's decision and order under paragraph (2) in
12 Commonwealth Court within 30 days after the following:
13 (i) The mailing date of the department's notice of decision
14 and order on a petition for reassessment of a jeopardy
15 assessment.
16 (ii) If the petition is not disposed of by the department
17 within sixty days after receipt, the sixtieth day following the
18 date the petition was received by the department.
19 (4) If it is determined that the making of the jeopardy
20 assessment is unreasonable or that the amount assessed is
21 inappropriate, the assessment may be abated, the assessment may
22 be redetermined in whole or in part, or the department or the
23 taxpayer may be directed to take such other actions as may be
24 appropriate.
25 (g) Any determination made pursuant to a petition for
26 reassessment under this section shall be final and conclusive
27 upon exhaustion of the appeal rights provided in this section
28 and shall not be reviewed in any other proceeding.
29 (h) (1) In an action under this section involving the issue
30 of whether the making of a jeopardy assessment is reasonable
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1 under the circumstances, the burden of proof in respect to such
2 issue shall be upon the department.
3 (2) In an action under this section involving the issue of
4 whether an amount assessed as a result of jeopardy assessment is
5 appropriate under the circumstances, the burden of proof in
6 respect of such issue shall be upon the taxpayer.
7 Section 407.3. Limitations on Assessments.--(a) Tax may be
8 assessed within three years after the date the report is filed.
9 (b) Tax may be assessed at any time if a taxpayer fails to
10 file a report required by law.
11 (c) Tax may be assessed at any time if the taxpayer files a
12 false or fraudulent report with intent to evade tax imposed by
13 the tax laws of this Commonwealth.
14 (d) If at any time within the time limitations specified in
15 this section the department is not satisfied with its
16 determination of the taxpayer's liability, the department may
17 strike all, or any part of, a previously issued assessment or
18 may issue additional assessments of tax.
19 (e) The department may, within three years of the granting
20 by the department of any refund or credit or within the period
21 in which an assessment could have been filed by the department
22 with respect to the taxable period for which the refund was
23 granted by the department, whichever period shall last occur,
24 file an assessment to recover any refund or part thereof or
25 credit or part thereof which was erroneously made or allowed.
26 (f) For purposes of this section, a report filed before the
27 last day prescribed for filing shall be deemed to have been
28 filed on the last day.
29 Section 407.4. Extension of Limitation Period.--
30 Notwithstanding section 407.3, where, before the expiration of
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1 the period prescribed in section 407.3, a taxpayer has consented
2 in writing that such period be extended, the amount of tax due
3 may be assessed at any time within the extended period. The
4 period so extended may be further extended by subsequent
5 consents in writing made before the expiration of the extended
6 period.
7 Section 16. Section 408(b) of the act, amended June 23, 1982
8 (P.L.610, No.172), is amended to read:
9 Section 408. Enforcement; Rules and Regulations;
10 Inquisitorial Powers of the Department.--* * *
11 (b) The department, or any agent authorized in writing by
12 it, is hereby authorized to examine the books, papers, and
13 records, and to investigate the character of the business of any
14 corporation in order to verify the accuracy of any report made,
15 or if no report was made by such corporation, to ascertain and
16 [settle] assess the tax imposed by this article. Every such
17 corporation is hereby directed and required to give to the
18 department, or its duly authorized agent, the means, facilities,
19 and opportunity for such examinations and investigations, as are
20 hereby provided and authorized. Any information gained by the
21 department, as a result of any returns, investigations, or
22 verifications required to be made by this article, shall be
23 confidential, except for official purposes, and any person
24 divulging such information shall be guilty of a misdemeanor,
25 and, upon conviction thereof, shall be sentenced to pay a fine
26 of not less than one hundred dollars ($100) or more than one
27 thousand dollars ($1,000) and costs of prosecution, or to
28 undergo imprisonment for not more than six months, or both.
29 Nothing in this section shall preclude the department from
30 providing public information, as defined in section 403(a)(3),
20050S0993B1893 - 17 -
1 to other government units. Any identification number provided by
2 the department to another governmental unit for governmental
3 purposes shall continue to be confidential information.
4 * * *
5 Section 17. The act is amended by adding sections to read:
6 Section 408.1. Collection of Tax.--The department shall
7 collect the taxes imposed by this article in the manner provided
8 by law for the collection of taxes imposed by the laws of this
9 Commonwealth.
10 Section 408.2. Actions to Collect Taxes; Defenses.--(a) The
11 department may initiate actions to collect any tax:
12 (1) Immediately, in the case of any amount related to tax
13 reported as due the Commonwealth by the taxpayer that is not
14 paid by the due date for payment of the tax.
15 (2) After ninety days from the mailing date of a notice of
16 assessment, if no petition for reassessment has been filed.
17 (3) After ninety days from the mailing date of the
18 department's decision and order disposing of a petition for
19 reassessment, if no petition for review has been filed.
20 (4) After thirty days from the mailing date of the decision
21 and order of the Board of Finance and Revenue upon a petition
22 for review or from the expiration of the board's time for acting
23 upon such petition, if no decision has been made.
24 (5) Immediately, in all cases of judicial sales,
25 receiverships, assignments or bankruptcies.
26 (6) Immediately, in the case of jeopardy assessments as
27 provided by section 407.2.
28 (b) A taxpayer shall not be permitted to raise any defense
29 to the department's collection action that might have been
30 determined by the department, the Board of Finance and Revenue
20050S0993B1893 - 18 -
1 or the courts if the taxpayer had properly pursued its
2 administrative remedies under this article.
3 Section 18. Section 1101(e) of the act, amended December 11,
4 1979 (P.L.499, No.107), is amended to read:
5 Section 1101. Imposition of Tax.--* * *
6 (e) Time to File Reports.--The time for filing annual
7 reports may be extended, estimated [settlements] assessments may
8 be made by the Department of Revenue if reports are not filed,
9 and the penalties for failing to file reports and pay the taxes
10 imposed under subsections (a) and (b) shall be as prescribed by
11 the laws defining the powers and duties of the Department of
12 Revenue. In any case where the works of any corporation,
13 company, copartnership, association, joint-stock association,
14 limited partnership, person or persons are operated by another
15 corporation, company, copartnership, association, joint-stock
16 association, limited partnership, person or persons, the taxes
17 imposed under subsections (a) and (b) shall be apportioned
18 between the corporations, companies, copartnerships,
19 associations, joint-stock associations, limited partnerships,
20 person or persons in accordance with the terms of their
21 respective leases or agreements, but for the payment of the said
22 taxes the Commonwealth shall first look to the corporation,
23 company, copartnership, association, joint-stock association,
24 limited partnership, person or persons operating the works, and
25 upon payment by the said company, corporation, copartnership,
26 association, joint-stock association, limited partnership,
27 person or persons of a tax upon the receipts, as herein
28 provided, derived from the operation thereof, no other
29 corporation, company, copartnership, association, joint-stock
30 association, limited partnership, person or persons shall be
20050S0993B1893 - 19 -
1 held liable for any tax imposed under subsections (a) and (b)
2 upon the proportion of said receipts received by said
3 corporation, company, copartnership, association, joint-stock
4 association, limited partnership, person or persons for the use
5 of said works.
6 * * *
7 Section 19. Section 1111-C of the act, amended July 2, 1986
8 (P.L.318, No.77) and July 7, 2005 (P.L.149, No.40), is amended
9 to read:
10 Section 1111-C. [Determination] Assessment and Notice of
11 Tax; Review.--(a) If any person shall fail to pay any tax
12 imposed by this article for which he is liable, the department
13 is hereby authorized and empowered to make [a determination] an
14 assessment of additional tax and interest due by such person
15 based upon any information within its possession or that shall
16 come into its possession. All of such [determinations]
17 assessments shall be made within three years after the date of
18 the recording of the document, subject to the following:
19 (1) If the taxpayer underpays the correct amount of the tax
20 by twenty-five per cent or more, the tax may be assessed at any
21 time within six years after the date of the recording of the
22 document.
23 (2) If any part of an underpayment of tax is due to fraud or
24 an undisclosed, intentional disregard of rules and regulations,
25 the full amount of the tax may be assessed at any time.
26 (b) Promptly after the date of such [determination]
27 assessment, the department shall send by certified mail a copy
28 thereof, including the basis of the assessment, to the person
29 against whom it was made. [Within ninety days after the date
30 upon which the copy of any such determination was mailed, such
20050S0993B1893 - 20 -
1 person may file with the department a petition for
2 redetermination of such taxes. Every petition for
3 redetermination shall state specifically the reasons which the
4 petitioner believes entitle him to such redetermination, and it
5 shall be supported by affirmation that it is not made for the
6 purpose of delay and that the facts set forth therein are true.
7 It shall be the duty of the department within six months after
8 the date of filing of any petition for redetermination to
9 dispose of the petition. Notice of the action taken upon any
10 petition for redetermination shall be given to the petitioner
11 promptly after the date of redetermination by the department.
12 (c) Any person shall have the right to review by the Board
13 of Finance and Revenue and appeal in the same manner and within
14 the same time as provided by law in the case of capital stock
15 and franchise taxes imposed upon corporations.] Any taxpayer
16 against whom an assessment is made may petition the department
17 for a reassessment pursuant to Article XXVII.
18 Section 20. Section 1112-C of the act, amended July 2, 1986
19 (P.L.318, No.77), is amended to read:
20 Section 1112-C. Lien.--(a) Any tax determined to be due by
21 the department and remaining unpaid after demand for the same,
22 and all penalties and interest thereon, shall be a lien in favor
23 of the Commonwealth upon the property, both real and personal,
24 of such person but only after said lien has been entered and
25 docketed of record by the prothonotary of the county where such
26 property is situated.
27 (a.1) At any time after it makes [a determination] an
28 assessment of additional tax, penalty or interest, the
29 department may transmit to the prothonotaries of the respective
30 counties certified copies of all liens for such taxes, penalties
20050S0993B1893 - 21 -
1 and interest, and it shall be the duty of each prothonotary
2 receiving the lien to enter and docket the same of record in his
3 office, which lien shall be indexed as judgments are now
4 indexed. After the department's [determination] assessment
5 becomes final, a writ of execution may directly issue upon such
6 lien without the issuance and prosecution to judgment of a writ
7 of scire facias: Provided, That not less than ten days before
8 issuance of any execution on the lien, notice shall be sent by
9 certified mail to the taxpayer at his last known post office
10 address. No prothonotary shall require as a condition precedent
11 to the entry of such liens, the payment of any costs incident
12 thereto.
13 (b) The lien imposed hereunder shall have priority from the
14 date of its recording as aforesaid, and shall be fully paid and
15 satisfied out of the proceeds of any judicial sale of property
16 subject thereto before any other obligation, judgment, claim,
17 lien or estate to which said property may subsequently become
18 subject, except costs of the sale and of the writ upon which the
19 sale was made, and real estate taxes and municipal claims
20 against such property, but shall be subordinate to mortgages and
21 other liens existing and duly recorded or entered of record
22 prior to the recording of the tax lien. In the case of a
23 judicial sale of property subject to a lien imposed hereunder
24 upon a lien or claim over which the lien imposed hereunder has
25 priority, as aforesaid, such sale shall discharge the lien
26 imposed hereunder to the extent only that the proceeds are
27 applied to its payment, and such lien shall continue in full
28 force and effect as to the balance remaining unpaid.
29 (c) The lien imposed hereunder shall continue for five years
30 from the date of its entry of record, and may be renewed and
20050S0993B1893 - 22 -
1 continued in the manner now or hereafter provided for the
2 renewal of judgments, or as may be provided in the act of April
3 9, 1929 (P.L.343, No.176), known as "The Fiscal Code."
4 Section 21. Section 1113-C of the act, amended May 7, 1997
5 (P.L.85, No.7), is amended to read:
6 Section 1113-C. Refunds.--(a) Whenever the amount due upon
7 [determination, redetermination] assessment or review is less
8 than the amount paid to the department on account thereof, the
9 department shall enter a credit in the amount of such difference
10 to the account of the person who paid the tax.
11 (b) Where there has been no [determination] assessment of
12 unpaid tax, the department shall have the power, and its duty
13 shall be, to hear and decide any application for refund and,
14 upon the allowance of such application, to enter a credit in the
15 amount of the overpayment to the account of the person who paid
16 the tax. Such application must be filed under [section 3003.1]
17 Article XXVII.
18 Section 22. Section 1502(f) of the act, amended October 14,
19 1988 (P.L.737, No.106), is amended to read:
20 Section 1502. Imposition; Report and Payment of Tax;
21 Exemptions.--* * *
22 (f) If any institution shall neglect or refuse to make any
23 report required by this article, such institution shall be
24 liable to a penalty of five thousand dollars ($5,000), which
25 shall be [settled] assessed in the same manner as the tax
26 imposed by this article is [settled] assessed.
27 Section 23. Section 2005 of the act, added December 22, 1989
28 (P.L.775, No.110), is amended to read:
29 Section 2005. Assessment by Department.--(a) If any person
30 shall fail to pay any tax imposed by this article for which he
20050S0993B1893 - 23 -
1 is liable, the department is hereby authorized and empowered to
2 make an assessment of additional tax due by such person, based
3 upon any information within its possession, or that shall come
4 into its possession.
5 (b) Promptly after the date of such assessment, the
6 department shall send by [registered] certified mail a copy of
7 the assessment, including the basis of the assessment, to the
8 person against whom it was made. Within ninety days after the
9 date upon which the copy of any such assessment was mailed, such
10 person may file with the department a petition for reassessment
11 of such taxes. Every petition for reassessment shall state
12 specifically the reasons which the petitioner believes entitle
13 him to such reassessment, and it shall be supported by affidavit
14 that it is not made for the purpose of delay, and that the facts
15 set forth therein are true. It shall be the duty of the
16 department, within six months after the date of any assessment,
17 to dispose of any petition for reassessment. Notice of the
18 action taken upon any petition for reassessment shall be given
19 to the petitioner promptly after the date of reassessment by the
20 department.
21 (c) Within [sixty] ninety days after the date of mailing of
22 notice by the department of the action taken on any petition for
23 reassessment filed with it, the person against whom such
24 assessment was made, may, by petition, request the Board of
25 Finance and Revenue to review such action. Every petition for
26 review filed hereunder shall state specifically the reason upon
27 which the petitioner relies, or shall incorporate by reference
28 the petition for reassessment in which such reasons shall have
29 been stated. The petition shall be supported by affidavit that
30 it is not made for the purpose of delay, and that the facts
20050S0993B1893 - 24 -
1 therein set forth are true. If the petitioner be a corporation,
2 joint-stock association or limited partnership, the affidavit
3 must be made by one of the principal officers thereof. A
4 petition for review may be amended by the petitioner at any time
5 prior to the hearing, as hereinafter provided. The Board of
6 Finance and Revenue shall act finally in disposition of such
7 petitions filed with it within six months after they have been
8 received, and, in the event of the failure of said board to
9 dispose of any such petition within six months, the action taken
10 by the department upon the petition for reassessment shall be
11 deemed sustained. The Board of Finance and Revenue may sustain
12 the action taken on the petition for reassessment, or it may
13 reassess the tax due upon such basis as it shall deem according
14 to law and equity. Notice of the action of the Board of Finance
15 and Revenue shall be given by mail, or otherwise, to the
16 department and to the petitioner.
17 (d) In all cases of petitions for reassessment, review or
18 appeal, the burden of proof shall be upon the petitioner or
19 appellant, as the case may be.
20 (e) Whenever any assessment of additional tax is not paid
21 within ninety days after the date of the assessment, if no
22 petition for reassessment has been filed, or within [sixty]
23 ninety days from the date of reassessment, if no petition for
24 review has been filed, or within [sixty] thirty days from the
25 date of the decision of the Board of Finance and Revenue upon a
26 petition for review, or the expiration of the board's time for
27 acting upon such petition, if no appeal has been made, and in
28 all cases of judicial sales, receiverships, assignments or
29 bankruptcies, the department may call upon the Office of
30 Attorney General to collect such assessment. In such event, in a
20050S0993B1893 - 25 -
1 proceeding for the collection of such taxes, the person against
2 whom they were assessed shall not be permitted to set up any
3 ground of defense that might have been determined by the
4 department, the Board of Finance and Revenue or the courts. The
5 department may also certify to the Liquor Control Board, for
6 such action as the board may deem proper, the fact that any
7 person has failed to pay or duly appeal from such assessment of
8 additional tax. The department may also provide, adopt,
9 promulgate and enforce such rules and regulations, as may be
10 appropriate, to prevent further shipment or transportation of
11 malt or brewed beverages into this Commonwealth by any person
12 against whom such unpaid assessment shall have been made.
13 Section 24. Sections 2009(f) and 2181 of the act, amended
14 May 7, 1997 (P.L.85, No.7), are amended to read:
15 Section 2009. Refund of Tax.--* * *
16 (f) In each of the above cases the department shall pay or
17 issue to the manufacturer credits of sufficient value to cover
18 the refund. Such credits may be used by the manufacturer for the
19 payment of any taxes due by him to the Commonwealth. The
20 procedure for refund in any case shall be completed by the
21 department within sixty days after the proper affidavits have
22 been filed with the department under section [3003.1] 2703.
23 Section 2181. Refund of Tax.--(a) A refund shall be made of
24 any tax to which the Commonwealth is not rightfully or equitably
25 entitled provided the Commonwealth determines the refund is due
26 or [application] a petition for refund is made [within the
27 appropriate time limit as set forth in subsection (d)] pursuant
28 to section 2703.
29 (b) Interest shall be paid on refundable tax at the same
30 rate as the interest rate on deficiencies provided for in
20050S0993B1893 - 26 -
1 section 2143.
2 (c) Refund shall be made in cash to the party who paid the
3 tax or to his assignee or as directed by the court.
4 [(d) Application for refund of tax shall be made within
5 three years after:
6 (1) the court has rescinded its order and adjudication of
7 presumed death when the refund is claimed for tax paid on the
8 transfer of the estate of a presumed decedent who is later
9 determined to be alive;
10 (2) termination of litigation establishing a right to a
11 refund; no application for refund shall be necessary when the
12 litigation has been with the Commonwealth over liability for the
13 tax or the amount of tax due;
14 (3) it has been finally determined that the whole or any
15 part of an alleged deficiency tax, asserted by the Federal
16 Government beyond that admitted to be payable, and in
17 consequence of which an estate tax was paid under section 2117
18 was not payable;
19 (4) a final judgment holding that a provision of this
20 article under which tax has been paid is unconstitutional or
21 that the interpretation of a provision of this article under
22 which tax has been paid was erroneous; or
23 (5) the date of payment, or the date of the notice of the
24 assessment of the tax, or the date the tax becomes delinquent,
25 whichever occurs later, in all other cases.
26 (e) An application for refund of tax shall be made to the
27 department.
28 (e.1) A petition to review the decision and order of the
29 department on a petition for refund may be made to the Board of
30 Finance and Revenue under this article.
20050S0993B1893 - 27 -
1 (f) The action of the Board of Finance and Revenue on all
2 applications for refund of tax may be appealed as provided for
3 in 42 Pa.C.S. § 933 (relating to appeals from government
4 agencies).]
5 (g) As much of the moneys received as payment of tax under
6 this article as shall be necessary for the payment of the
7 refunds provided for in this article with interest is
8 appropriated for the payment of such refunds.
9 Section 25. The act is amended by adding an article to read:
10 ARTICLE XXVII
11 PROCEDURE AND ADMINISTRATION
12 Section 2701. Definitions.
13 The following words and phrases when used in this article
14 shall have the meanings given to them in this section unless the
15 context clearly indicates otherwise:
16 "Board." The Board of Finance and Revenue.
17 "Department." The Department of Revenue of the Commonwealth.
18 "Return." The term includes a tax report.
19 "Secretary." The Secretary of Revenue of the Commonwealth.
20 Section 2702. Petition for reassessment.
21 (a) General rule.--A taxpayer may file a petition for
22 reassessment with the department within 90 days after the
23 mailing date of the notice of assessment.
24 (b) Special rule for shares taxes.--Notwithstanding any
25 provision of law to the contrary, section 2703(d) shall
26 constitute the exclusive method by which an appeal from the
27 assessment of the tax imposed by Article VII or VIII may be
28 made.
29 (c) Application to inheritance and estate taxes.--This
30 section shall not apply to the taxes imposed by Article XXI.
20050S0993B1893 - 28 -
1 Part XI of Article XXI shall provide the exclusive procedure for
2 protesting the appraisement and assessment of taxes imposed by
3 Article XXI.
4 Section 2703. Petition for refund.
5 (a) General rule.--A taxpayer may file a petition for refund
6 of tax with the department within three years after the return
7 was filed or within three years after payment, whichever is
8 later. Except as provided by section 407.1, if no return is
9 filed by the taxpayer, a taxpayer may file a petition for refund
10 of tax with the department within three years after payment. If
11 tax is required to be paid by means of a stamp, a taxpayer may
12 file a petition for refund of tax with the department within
13 three years after payment.
14 (b) Limit on refund.--
15 (1) If a petition for refund is filed by the taxpayer
16 during the three-year period prescribed in subsection (a),
17 the amount of the refund shall not exceed the portion of the
18 tax paid within the period immediately preceding the filing
19 of the petition, equal to three years plus the period of any
20 extension of time for filing the return. If the tax was
21 required to be paid by means of a stamp, the amount of the
22 refund shall not exceed the portion of the tax paid within
23 the three years immediately preceding the filing of the
24 petition.
25 (2) The period for filing a petition for refund provided
26 in subsection (a) and paragraph (1) shall not expire prior to
27 six months after the expiration of the period within which an
28 assessment may be made, including any period pursuant to an
29 agreement to extend the statute of limitations for assessment
30 under the provisions of section 261, 349 or 407.4.
20050S0993B1893 - 29 -
1 (c) Refund of inheritance and estate tax.--A taxpayer may
2 file a petition for refund of tax imposed by Article XXI with
3 the department within three years after any of the following:
4 (1) The court has rescinded its order and adjudication
5 of presumed death when the refund is claimed for tax paid on
6 the transfer of the estate of a presumed decedent who is
7 later determined to be alive.
8 (2) Termination of litigation establishing a right to a
9 refund. A petition for refund shall not be necessary when the
10 litigation has been with the Commonwealth over liability for
11 the tax or the amount of tax due.
12 (3) It has been finally determined that the whole or any
13 part of an alleged deficiency tax, asserted by the Federal
14 Government beyond that admitted to be payable, and in
15 consequence of which an estate tax was paid under section
16 2117 was not payable.
17 (4) The date of payment, or the date of the notice of
18 the assessment of the tax, or the date the tax becomes
19 delinquent, whichever occurs later, in all other cases.
20 (d) Special rule for shares taxes.--Upon sufficient cause
21 shown by a taxpayer that the payment of tax assessed under
22 Article VII or VIII would irreparably harm the taxpayer, the
23 department may take jurisdiction of a petition for refund
24 challenging the assessed tax without the tax being paid if the
25 petition is filed within two years after the mailing date of the
26 assessment.
27 (e) Payment date.--For purposes of this section, any payment
28 of estimated tax, withholding of tax or other payment of tax
29 made prior to the due date for payment of the tax shall be
30 deemed to have been made on the due date for payment of the tax.
20050S0993B1893 - 30 -
1 (f) Liquid fuels and fuels tax claims.--This section shall
2 not apply to claims for refund or reimbursement of liquid fuels
3 and fuels tax required to be submitted to the Board of Finance
4 and Revenue under 75 Pa.C.S. Ch. 90 (relating to liquid fuels
5 and fuels tax). The provisions of 75 Pa.C.S. § 9017 (relating to
6 refunds) shall provide the exclusive procedure for those claims.
7 Section 2704. Petition procedure.
8 (a) Content of petition.--
9 (1) A petition for reassessment shall state:
10 (i) The tax type and tax periods included within the
11 petition.
12 (ii) The amount of the tax that the taxpayer claims
13 to have been erroneously assessed.
14 (iii) The basis upon which the taxpayer claims that
15 the assessment is erroneous.
16 (2) A petition for refund shall state:
17 (i) The tax type and tax periods included within the
18 petition.
19 (ii) The amount of the tax that the taxpayer claims
20 to have been overpaid.
21 (iii) The basis of the taxpayer's claim for refund.
22 (3) The petition shall be supported by an affidavit by
23 the petitioner or the petitioner's authorized representative
24 that the petition is not made for the purpose of delay and
25 that the facts set forth in the petition are true.
26 (b) Request for hearing.--Upon written request of the
27 petitioner or when deemed necessary by the department, the
28 department shall schedule a hearing to review a petition. The
29 petitioner shall be notified by the department of the date, time
30 and place where the hearing will be held.
20050S0993B1893 - 31 -
1 (c) Decision and order.--The department shall issue a
2 decision and order disposing of a petition on such basis as it
3 deems to be in accordance with law. The department shall provide
4 a written explanation of the basis for any denial of relief.
5 (d) Time limit for decision and order.--The department shall
6 issue a decision and order disposing of a petition within six
7 months after receipt of the petition. The petitioner and the
8 department may agree to extend the time period for the
9 department to dispose of the petition for one additional six-
10 month period. Notice of the department's decision and order
11 disposing of the petition shall be mailed to the petitioner.
12 (e) Exception to time limit for decision and order.--If at
13 the time of the filing of a petition proceedings are pending in
14 a court of competent jurisdiction wherein any claim made in the
15 petition may be established, the department, upon the written
16 request of the petitioner, may defer consideration of the
17 petition until the final judgment determining the question or
18 questions involved in the petition has been decided. If
19 consideration of the petition is deferred, the department shall
20 issue a decision and order disposing of the petition within six
21 months after the final judgment.
22 (f) Failure of department to take action.--The failure of
23 the department to dispose of the petition within the time period
24 provided for by subsection (d) or (e) shall act as a denial of
25 the petition. Notice of the department's failure to take action
26 and the denial of the petition shall be mailed to the
27 petitioner.
28 Section 2705. Review by board.
29 (a) Petition for review of a decision and order.--Within 90
30 days after the mailing date of the department's notice of
20050S0993B1893 - 32 -
1 decision and order on a petition filed with it, a taxpayer may
2 petition the board to review the decision and order of the
3 department.
4 (b) Petition for review of denial by department's failure to
5 act.--A petition for review may be filed with the board within
6 90 days after the mailing date of the department's notice to the
7 petitioner of its failure to dispose of the petition within the
8 time periods prescribed by section 2704(d) or (e).
9 (c) Conflict of interest.--Neither the secretary nor the
10 secretary's designee may sit as a member of the board to hear,
11 deliberate or vote on any petition filed with the board pursuant
12 to this article. In such cases, the board shall allow the
13 department to provide information to the board and to address
14 the board on a basis similar to that provided for taxpayer
15 participation.
16 Section 2706. Burden of proof.
17 Except as otherwise provided by this act, in all cases of
18 petitions filed pursuant to this article, the burden of proof
19 shall be upon the petitioner or appellant, as the case may be.
20 Section 2707. Compromise of tax appeals.
21 (a) Compromise of tax.--The department, with the approval of
22 the Attorney General, shall have the authority to compromise the
23 liability for tax disputed in any petition on terms as it
24 determines to be in the best interests of the Commonwealth.
25 (b) Compromise of penalties.--The department shall have the
26 authority to compromise the liability for interest or penalties
27 disputed in any petition on the terms as it determines to be in
28 the best interests of the Commonwealth.
29 Section 26. This act shall apply as follows:
30 (1) The addition of Article XXVII of the act shall apply
20050S0993B1893 - 33 -
1 to all decisions and orders of the Department of Revenue
2 mailed after December 31, 2006, regarding a petition for
3 reassessment, redetermination, resettlement or refund.
4 (2) The amendment or addition of the following
5 provisions shall apply to taxable years beginning after
6 December 31, 2006:
7 (i) Section 407.1 of the act.
8 (ii) Section 407.2 of the act.
9 (iii) Section 407.3 of the act.
10 (iv) Section 407.4 of the act.
11 (v) Section 408(b) of the act.
12 (vi) Section 408.2 of the act.
13 (vii) Section 1101(e) of the act.
14 (viii) Section 1502(f) of the act.
15 Section 27. This act shall take effect as follows:
16 (1) The amendment, addition or repeal of the following
17 provisions shall take effect January 1, 2007:
18 (i) Section 230 of the act.
19 (ii) Section 232 of the act.
20 (iii) Section 234 of the act.
21 (iv) Section 247.1 of the act.
22 (v) Section 250 of the act.
23 (vi) Section 251 of the act.
24 (vii) Section 252 of the act.
25 (viii) Section 253 of the act.
26 (ix) Section 254 of the act.
27 (x) Section 256 of the act.
28 (xi) Section 338 of the act.
29 (xii) Section 339 of the act.
30 (xiii) Section 340 of the act.
20050S0993B1893 - 34 -
1 (xiv) Section 341 of the act.
2 (xv) Section 350 of the act.
3 (xvi) Section 1111-C of the act.
4 (xvii) Section 1112-C of the act.
5 (xviii) Section 1113-C of the act.
6 (xix) Section 2005 of the act.
7 (xx) Section 2009 of the act.
8 (xxi) Section 2181 of the act.
9 (xxii) Article XXVII of the act.
10 (2) The remainder of this act shall take effect July 1,
11 2006, or immediately, whichever is later.
12 SECTION 1. SECTIONS 230, 232 AND 234 OF THE ACT OF MARCH 4, <--
13 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, ARE
14 AMENDED TO READ:
15 SECTION 230. ASSESSMENT.--THE DEPARTMENT IS AUTHORIZED AND
16 REQUIRED TO MAKE THE INQUIRIES, DETERMINATIONS AND ASSESSMENTS
17 OF THE TAX (INCLUDING INTEREST, ADDITIONS AND PENALTIES) IMPOSED
18 BY THIS ARTICLE. A NOTICE OF ASSESSMENT AND DEMAND FOR PAYMENT
19 SHALL BE MAILED BY CERTIFIED MAIL TO THE TAXPAYER. THE NOTICE
20 SHALL SET FORTH THE BASIS OF THE ASSESSMENT.
21 SECTION 232. REASSESSMENT.--ANY TAXPAYER AGAINST WHOM AN
22 ASSESSMENT IS MADE MAY PETITION THE DEPARTMENT FOR A
23 REASSESSMENT PURSUANT TO ARTICLE XXVII. [NOTICE OF AN INTENTION
24 TO FILE SUCH A PETITION SHALL BE GIVEN TO THE DEPARTMENT WITHIN
25 THIRTY DAYS OF THE DATE THE NOTICE OF ASSESSMENT WAS MAILED TO
26 THE TAXPAYER, EXCEPT THAT THE DEPARTMENT FOR DUE CAUSE MAY
27 ACCEPT SUCH NOTICE WITHIN NINETY DAYS OF THE DATE THE NOTICE OF
28 ASSESSMENT WAS MAILED. THE DEPARTMENT BY REGISTERED MAIL SHALL
29 SUPPLY THE TAXPAYER WITH A STATEMENT SETTING FORTH IN REASONABLE
30 DETAIL THE BASIS OF THE ASSESSMENT WITHIN THIRTY DAYS AFTER
20050S0993B1893 - 35 -
1 RECEIPT OF THE TAXPAYER'S NOTICE OF INTENTION TO FILE A PETITION
2 FOR REASSESSMENT. A PETITION FOR REASSESSMENT SHALL THEREAFTER
3 BE FILED WITHIN THIRTY DAYS AFTER SUCH BASIS OF ASSESSMENT HAS
4 BEEN MAILED TO THE TAXPAYER. SUCH PETITION SHALL SET FORTH IN
5 REASONABLE DETAIL THE GROUNDS UPON WHICH THE TAXPAYER CLAIMS
6 THAT THE ASSESSMENT IS ERRONEOUS OR UNLAWFUL, IN WHOLE OR IN
7 PART, AND SHALL BE ACCOMPANIED BY AN AFFIDAVIT OR AFFIRMATION
8 THAT THE FACTS CONTAINED THEREIN ARE TRUE AND CORRECT AND THAT
9 THE PETITION IS NOT INTERPOSED FOR DELAY. AN EXTENSION OF TIME
10 FOR FILING THE PETITION MAY BE ALLOWED FOR CAUSE BUT IN NO CASE
11 SHALL SUCH EXTENSION EXCEED ONE HUNDRED TWENTY DAYS. THE
12 DEPARTMENT SHALL HOLD SUCH HEARINGS AS MAY BE NECESSARY FOR THE
13 PURPOSE, AT SUCH TIMES AND PLACES AS IT MAY DETERMINE, AND EACH
14 TAXPAYER WHO HAS DULY FILED SUCH PETITION FOR REASSESSMENT SHALL
15 BE NOTIFIED BY THE DEPARTMENT OF THE TIME WHEN, AND THE PLACE
16 WHERE, SUCH HEARING IN HIS CASE WILL BE HELD.
17 IT SHALL BE THE DUTY OF THE DEPARTMENT, WITHIN SIX MONTHS
18 AFTER RECEIVING A FILED PETITION FOR REASSESSMENT, TO DISPOSE OF
19 THE ISSUE RAISED BY SUCH PETITION AND MAIL NOTICE OF THE
20 DEPARTMENT'S DECISION TO THE PETITIONER: PROVIDED, HOWEVER, THAT
21 THE TAXPAYER AND THE DEPARTMENT MAY, BY STIPULATION, EXTEND SUCH
22 DISPOSAL TIME BY NOT MORE THAN SIX ADDITIONAL MONTHS.
23 SECTION 234. REVIEW BY BOARD OF FINANCE AND REVENUE.--WITHIN
24 SIXTY DAYS AFTER THE DATE OF MAILING OF NOTICE BY THE DEPARTMENT
25 OF THE DECISION ON ANY PETITION FOR REASSESSMENT FILED WITH IT,
26 THE PERSON AGAINST WHOM SUCH ASSESSMENT WAS MADE MAY, BY
27 PETITION, REQUEST THE BOARD OF FINANCE AND REVENUE TO REVIEW
28 SUCH DECISION. THE FAILURE OF THE DEPARTMENT TO NOTIFY THE
29 PETITIONER OF A DECISION WITHIN THE TIME PROVIDED FOR BY SECTION
30 232 SHALL ACT AS A DENIAL OF SUCH PETITION, AND A PETITION FOR
20050S0993B1893 - 36 -
1 REVIEW MAY BE FILED WITH THE BOARD OF FINANCE AND REVENUE WITHIN
2 ONE HUNDRED TWENTY DAYS OF THE DATE PRIOR TO WHICH THE
3 DEPARTMENT SHOULD HAVE MAILED TO THE PETITIONER ITS NOTICE OF
4 DECISION. EVERY PETITION FOR REVIEW FILED HEREUNDER SHALL STATE
5 SPECIFICALLY THE REASONS ON WHICH THE PETITIONER RELIES, OR
6 SHALL INCORPORATE BY REFERENCE THE PETITION FOR REASSESSMENT IN
7 WHICH THE REASONS ARE STATED. THE PETITION SHALL BE SUPPORTED BY
8 AFFIDAVIT THAT IT IS NOT MADE FOR THE PURPOSE OF DELAY AND THAT
9 THE FACTS SET FORTH THEREIN ARE TRUE. THE BOARD OF FINANCE AND
10 REVENUE SHALL ACT FINALLY IN DISPOSING OF PETITIONS FILED WITH
11 IT WITHIN SIX MONTHS AFTER THEY HAVE BEEN RECEIVED. IN THE EVENT
12 OF THE FAILURE OF THE BOARD TO DISPOSE OF ANY PETITION WITHIN
13 SIX MONTHS, THE ACTION TAKEN BY THE DEPARTMENT, UPON THE
14 PETITION FOR REASSESSMENT, SHALL BE SUSTAINED. THE BOARD OF
15 FINANCE AND REVENUE MAY SUSTAIN THE ACTION TAKEN BY THE
16 DEPARTMENT ON THE PETITION FOR REASSESSMENT, OR IT MAY REASSESS
17 THE TAX DUE ON SUCH BASIS AS IT DEEMS ACCORDING TO LAW. THE
18 BOARD SHALL GIVE NOTICE OF ITS ACTION TO THE DEPARTMENT AND TO
19 THE PETITIONER.]
20 SECTION 2. SECTION 235 OF THE ACT, AMENDED DECEMBER 3, 1975
21 (P.L.476, NO.140) AND REPEALED IN PART APRIL 28, 1978 (P.L.202,
22 NO.53), IS AMENDED TO READ:
23 [SECTION 235. APPEAL TO COMMONWEALTH COURT.--ANY PERSON
24 AGGRIEVED BY THE DECISION OF THE BOARD OF FINANCE AND REVENUE OR
25 BY THE BOARD'S FAILURE TO ACT UPON A PETITION FOR REVIEW WITHIN
26 SIX MONTHS MAY APPEAL IN THE MANNER NOW OR HEREAFTER PROVIDED BY
27 LAW FOR APPEALS IN THE CASE OF TAX SETTLEMENTS.]
28 SECTION 3. SECTION 247.1(A) OF THE ACT, AMENDED JUNE 22,
29 2001 (P.L.353, NO.23), IS AMENDED TO READ:
30 SECTION 247.1. REFUND OF SALES TAX ATTRIBUTED TO BAD DEBT.--
20050S0993B1893 - 37 -
1 (A) A VENDOR MAY FILE A PETITION FOR REFUND OF SALES TAX PAID
2 TO THE DEPARTMENT THAT IS ATTRIBUTED TO A BAD DEBT IF ALL OF THE
3 FOLLOWING APPLY:
4 (1) THE PURCHASER FAILS TO PAY THE VENDOR THE TOTAL PURCHASE
5 PRICE.
6 (2) THE PURCHASE PRICE IS WRITTEN OFF, EITHER IN WHOLE OR IN
7 PART, AS A BAD DEBT ON THE VENDOR'S BOOKS AND RECORDS.
8 (3) THE BAD DEBT HAS BEEN DEDUCTED FOR FEDERAL INCOME TAX
9 PURPOSES UNDER SECTION 166 OF THE INTERNAL REVENUE CODE OF 1986
10 (PUBLIC LAW 99-514, 26 U.S.C. § 166).
11 THE PETITION SHALL BE FILED WITH THE DEPARTMENT UNDER ARTICLE
12 XXVII WITHIN THE TIME LIMITATIONS PRESCRIBED BY SECTION 3003.1
13 OF THIS ACT.
14 * * *
15 SECTION 4. SECTIONS 250 AND 251 OF THE ACT ARE AMENDED TO
16 READ:
17 [SECTION 250. REFUND OR CREDIT FOR OVERPAYMENT.--WITH
18 RESPECT TO ALL TAXES PAID TO A VENDOR OR TO THE COMMONWEALTH
19 PRIOR TO APRIL 5, 1957, IN THE CASE OF ANY OVERPAYMENT, THE
20 DEPARTMENT, WITHIN THE APPLICABLE PERIOD OF LIMITATIONS, MAY
21 CREDIT THE AMOUNT OF SUCH OVERPAYMENT AGAINST ANY LIABILITY IN
22 RESPECT OF THE TAX IMPOSED BY THIS ACT ON THE PART OF THE PERSON
23 WHO MADE THE OVERPAYMENT, AND SHALL REFUND ANY BALANCE TO SUCH
24 PERSON.
25 SECTION 251. RESTRICTION ON REFUNDS.--NO REFUND SHALL BE
26 MADE UNDER SECTION 250 WITHOUT THE APPROVAL OF THE BOARD OF
27 FINANCE AND REVENUE.]
28 SECTION 5. SECTION 252 OF THE ACT, AMENDED APRIL 23, 1998
29 (P.L.239, NO.45), IS AMENDED TO READ:
30 SECTION 252. REFUNDS.--THE DEPARTMENT SHALL, PURSUANT TO THE
20050S0993B1893 - 38 -
1 PROVISIONS OF [SECTIONS 253 AND 254] ARTICLE XXVII, REFUND ALL
2 TAXES, INTEREST AND PENALTIES PAID TO THE COMMONWEALTH UNDER THE
3 PROVISIONS OF THIS ARTICLE AND TO WHICH THE COMMONWEALTH IS NOT
4 RIGHTFULLY ENTITLED. SUCH REFUNDS SHALL BE MADE TO THE PERSON,
5 HIS HEIRS, SUCCESSORS, ASSIGNS OR OTHER PERSONAL
6 REPRESENTATIVES, WHO ACTUALLY PAID THE TAX: PROVIDED, THAT NO
7 REFUND SHALL BE MADE UNDER THIS SECTION WITH RESPECT TO ANY
8 PAYMENT MADE BY REASON OF AN ASSESSMENT WITH RESPECT TO WHICH A
9 TAXPAYER HAS FILED A PETITION FOR REASSESSMENT PURSUANT TO
10 SECTION [232 OF THIS ARTICLE] 2702 OF ARTICLE XXVII TO THE
11 EXTENT THAT SAID PETITION HAS BEEN DETERMINED ADVERSELY TO THE
12 TAXPAYER BY A DECISION WHICH IS NO LONGER SUBJECT TO FURTHER
13 REVIEW OR APPEAL: PROVIDED FURTHER, THAT NOTHING CONTAINED
14 HEREIN SHALL BE DEEMED TO PROHIBIT A TAXPAYER WHO HAS FILED A
15 TIMELY PETITION FOR REASSESSMENT FROM AMENDING IT TO A PETITION
16 FOR REFUND WHERE THE PETITIONER HAS PAID THE TAX ASSESSED.
17 SECTION 6. SECTION 253 OF THE ACT, AMENDED MAY 7, 1997
18 (P.L.85, NO.7), IS AMENDED TO READ:
19 SECTION 253. REFUND PETITION.--(A) EXCEPT AS PROVIDED FOR
20 IN SECTION 256 AND IN SUBSECTION (B) [AND (D)] OF THIS SECTION,
21 THE REFUND OR CREDIT OF TAX, INTEREST OR PENALTY PROVIDED FOR BY
22 SECTION 252 SHALL BE MADE ONLY WHERE THE PERSON WHO HAS ACTUALLY
23 PAID THE TAX FILES A PETITION FOR REFUND WITH THE DEPARTMENT
24 UNDER [SECTION 3003.1. SUCH PETITION FOR REFUND MUST SET FORTH
25 IN REASONABLE DETAIL THE GROUNDS UPON WHICH THE TAXPAYER CLAIMS
26 THAT THE COMMONWEALTH IS NOT RIGHTFULLY ENTITLED TO SUCH TAX,
27 INTEREST OR PENALTY, IN WHOLE OR IN PART, AND SHALL BE
28 ACCOMPANIED BY AN AFFIDAVIT AFFIRMING THAT THE FACTS CONTAINED
29 THEREIN ARE TRUE AND CORRECT. THE DEPARTMENT MAY HOLD SUCH
30 HEARINGS AS MAY BE NECESSARY FOR THE PURPOSE AT SUCH TIMES AND
20050S0993B1893 - 39 -
1 PLACES AS IT MAY DETERMINE, AND EACH PERSON WHO HAS DULY FILED A
2 REFUND PETITION SHALL BE NOTIFIED BY THE DEPARTMENT OF THE TIME
3 WHEN, AND THE PLACE WHERE, SUCH HEARING IN HIS CASE WILL BE
4 HELD.] ARTICLE XXVII WITHIN THE TIME LIMITS OF SECTION 3003.1.
5 (B) A REFUND OR CREDIT OF TAX, INTEREST OR PENALTY, PAID AS
6 A RESULT OF AN ASSESSMENT MADE BY THE DEPARTMENT UNDER SECTION
7 231, SHALL BE MADE ONLY WHERE THE PERSON WHO HAS ACTUALLY PAID
8 THE TAX FILES WITH THE DEPARTMENT A PETITION FOR A REFUND WITH
9 THE DEPARTMENT UNDER [SECTION 3003.1(D)] ARTICLE XXVII WITHIN
10 THE TIME LIMITS OF SECTION 3003.1. THE FILING OF A PETITION FOR
11 REFUND, UNDER THE PROVISIONS OF THIS SUBSECTION, SHALL NOT
12 AFFECT THE ABATEMENT OF INTEREST, ADDITIONS OR PENALTIES TO
13 WHICH THE PERSON MAY BE ENTITLED BY REASON OF HIS PAYMENT OF THE
14 ASSESSMENT.
15 [(C) IT SHALL BE THE DUTY OF THE DEPARTMENT, WITHIN SIX
16 MONTHS AFTER RECEIVING A PETITION FOR REFUND, TO DISPOSE OF THE
17 ISSUE RAISED BY SUCH PETITION, AND MAIL NOTICE OF THE
18 DEPARTMENT'S DECISION TO THE PETITIONER: PROVIDED, HOWEVER, THAT
19 THE TAXPAYER AND THE DEPARTMENT MAY, BY STIPULATION, EXTEND SUCH
20 DISPOSAL TIME BY NOT MORE THAN SIX ADDITIONAL MONTHS.
21 (D) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION
22 WHERE ANY TAX, INTEREST OR PENALTY HAS BEEN PAID UNDER A
23 PROVISION OF THIS ARTICLE SUBSEQUENTLY HELD BY FINAL JUDGMENT OF
24 A COURT OF COMPETENT JURISDICTION TO BE UNCONSTITUTIONAL, OR
25 UNDER AN INTERPRETATION OF SUCH PROVISION SUBSEQUENTLY HELD BY
26 SUCH COURT TO BE ERRONEOUS, A PETITION FOR REFUND MAY BE FILED
27 EITHER BEFORE OR SUBSEQUENT TO FINAL JUDGMENT, BUT SUCH PETITION
28 MUST BE FILED UNDER SECTION 3003.1. THE DEPARTMENT SHALL HAVE
29 JURISDICTION TO HEAR AND DETERMINE ANY SUCH PETITION FILED PRIOR
30 TO SUCH FINAL JUDGMENT ONLY IF, AT THE TIME OF FILING OF THE
20050S0993B1893 - 40 -
1 PETITION, PROCEEDINGS ARE PENDING IN A COURT OF COMPETENT
2 JURISDICTION WHEREIN THE CLAIM OF UNCONSTITUTIONALITY OR OF
3 ERRONEOUS INTERPRETATION, MADE IN THE PETITION FOR REFUND MAY BE
4 ESTABLISHED, AND IN SUCH CASE, THE DEPARTMENT SHALL NOT TAKE
5 FINAL ACTION UPON THE PETITION FOR REFUND UNTIL THE JUDGMENT
6 DETERMINING THE QUESTION INVOLVED IN SUCH PETITION HAS BECOME
7 FINAL.]
8 SECTION 7. SECTION 254 OF THE ACT, AMENDED JUNE 30, 1995
9 (P.L.139, NO.21), IS AMENDED TO READ:
10 [SECTION 254. REVIEW BY BOARD OF FINANCE AND REVENUE.--
11 WITHIN NINETY DAYS AFTER THE DATE OF MAILING OF NOTICE BY THE
12 DEPARTMENT OF THE DECISION UPON A PETITION FOR REFUND FILED WITH
13 IT, PURSUANT TO SECTION 253, THE PETITIONER MAY FURTHER PETITION
14 THE BOARD OF FINANCE AND REVENUE TO REVIEW THE DECISION OF THE
15 DEPARTMENT. THE FAILURE OF THE DEPARTMENT TO NOTIFY THE
16 PETITIONER OF ITS DECISION WITHIN THE TIME PROVIDED FOR BY
17 SECTION 253 SHALL ACT AS A DENIAL OF SUCH PETITION, AND A
18 PETITION FOR REVIEW MAY BE FILED WITH THE BOARD OF FINANCE AND
19 REVENUE WITHIN ONE HUNDRED TWENTY DAYS OF THE DATE PRIOR TO
20 WHICH THE DEPARTMENT SHOULD HAVE MAILED TO THE PETITIONER ITS
21 NOTICE OF DECISION. EVERY PETITION FOR REVIEW FILED WITH THE
22 BOARD OF FINANCE AND REVENUE UNDER THE PROVISIONS OF THIS
23 SECTION SHALL INCORPORATE BY REFERENCE THE PETITION FOR REFUND.
24 THE PETITIONER MAY, IN HIS PETITION FOR REVIEW, ELECT TO
25 WITHDRAW ONE OR MORE GROUNDS AS SET OUT IN THE ORIGINAL REFUND
26 PETITION. THE BOARD OF FINANCE AND REVENUE SHALL ACT FINALLY IN
27 DISPOSING OF SUCH PETITIONS FILED WITH IT WITHIN SIX MONTHS
28 AFTER THEY HAVE BEEN RECEIVED. IN THE EVENT OF THE FAILURE OF
29 THE BOARD TO DISPOSE OF ANY PETITION WITHIN SIX MONTHS, THE
30 ACTION TAKEN BY THE DEPARTMENT UPON THE PETITION FOR REFUND
20050S0993B1893 - 41 -
1 SHALL BE SUSTAINED. THE BOARD OF FINANCE AND REVENUE MAY SUSTAIN
2 THE ACTION TAKEN BY THE DEPARTMENT ON A PETITION FOR REFUND, OR
3 IT MAY REDETERMINE WHETHER A LESSER OR GREATER AMOUNT OF REFUND
4 IS PROPER. UNDER NO CIRCUMSTANCES MAY THE BOARD OF FINANCE AND
5 REVENUE AUTHORIZE A REFUND GREATER THAN THAT ORIGINALLY APPLIED
6 FOR BY THE PETITIONER. THE BOARD SHALL GIVE NOTICE OF ITS ACTION
7 TO THE DEPARTMENT AND TO THE PETITIONER.]
8 SECTION 8. SECTION 255 OF THE ACT, AMENDED DECEMBER 3, 1975
9 (P.L.476, NO.140) AND REPEALED IN PART APRIL 28, 1978 (P.L.202,
10 NO.53), IS AMENDED TO READ:
11 [SECTION 255. APPEAL TO THE COMMONWEALTH COURT.--ANY PERSON
12 AGGRIEVED BY THE DECISION OF THE BOARD OF FINANCE AND REVENUE
13 UNDER SECTION 254, OR BY THE BOARD'S FAILURE TO ACT UPON A
14 PETITION FOR REVIEW WITHIN SIX MONTHS MAY APPEAL IN THE MANNER
15 NOW OR HEREAFTER PROVIDED FOR BY LAW FOR APPEALS IN THE CASE OF
16 TAX SETTLEMENTS.]
17 SECTION 9. SECTION 256 OF THE ACT IS AMENDED TO READ:
18 SECTION 256. EXTENDED TIME FOR FILING SPECIAL PETITION FOR
19 REFUND.--ANY PARTY TO A TRANSACTION WHO HAS PAID TAX BY REASON
20 OF A TRANSACTION WITH RESPECT TO WHICH THE DEPARTMENT IS
21 ASSESSING TAX AGAINST ANOTHER PERSON MAY, WITHIN SIX MONTHS
22 AFTER THE FILING BY THE DEPARTMENT OF THE ASSESSMENT AGAINST
23 SUCH OTHER PERSON, FILE A SPECIAL PETITION FOR REFUND,
24 NOTWITHSTANDING HIS FAILURE TO [FILE A REGULAR PETITION WITHIN
25 THREE YEARS OF THE PAYMENT.] TIMELY FILE A PETITION PURSUANT TO
26 SECTION 3003.1 OF ARTICLE XXX. THE PROVISIONS OF [SECTIONS 253,
27 254 AND 255] ARTICLE XXVII SHALL BE APPLICABLE TO SUCH SPECIAL
28 PETITION FOR REFUND, EXCEPT THAT THE DEPARTMENT NEED NOT ACT ON
29 SUCH PETITION UNTIL THERE IS A FINAL DETERMINATION AS TO THE
30 PROPRIETY OF THE ASSESSMENT FILED AGAINST THE OTHER PARTY TO THE
20050S0993B1893 - 42 -
1 TRANSACTION. WHERE A PETITION IS FILED UNDER THIS PROVISION IN
2 ORDER TO TAKE ADVANTAGE OF THE EXTENDED PERIOD OF LIMITATIONS,
3 OVERPAYMENTS BY THE PETITIONER SHALL BE REFUNDED BUT ONLY TO THE
4 EXTENT OF THE ACTUAL TAX (WITHOUT CONSIDERATION OF INTEREST AND
5 PENALTIES) PAID BY THE OTHER PARTY TO THE TRANSACTION. THE
6 PURPOSE OF THIS SECTION IS TO AVOID DUPLICATE PAYMENT OF TAX
7 WHERE A DETERMINATION IS MADE BY THE DEPARTMENT THAT ONE PARTY
8 TO A TRANSACTION IS SUBJECT TO TAX, AND ANOTHER PARTY TO THE
9 TRANSACTION HAS PREVIOUSLY PAID TAX WITH RESPECT TO SUCH
10 TRANSACTION AND, AS SUCH, THIS SECTION SHALL BE CONSTRUED AS
11 EXTENDING RIGHT BEYOND THAT PROVIDED FOR BY SECTION 253, AND NOT
12 TO LIMIT SUCH OTHER SECTION.
13 SECTION 10. SECTIONS 338, 339, 340 AND 341 OF THE ACT, ADDED
14 AUGUST 31, 1971 (P.L.362, NO.93), ARE AMENDED TO READ:
15 SECTION 338. ASSESSMENT.--(A) THE DEPARTMENT IS AUTHORIZED
16 AND REQUIRED TO MAKE THE INQUIRIES, DETERMINATIONS AND
17 ASSESSMENTS OF ALL TAXES IMPOSED BY THIS ARTICLE.
18 (B) IF THE MODE OR TIME FOR THE ASSESSMENT OF ANY TAX IS NOT
19 OTHERWISE PROVIDED FOR, THE DEPARTMENT MAY ESTABLISH THE SAME BY
20 REGULATIONS.
21 (C) IN THE EVENT THAT ANY TAXPAYER FAILS TO FILE A RETURN
22 REQUIRED BY THIS ARTICLE, THE DEPARTMENT MAY MAKE AN ESTIMATED
23 ASSESSMENT (BASED ON INFORMATION AVAILABLE) OF THE PROPER AMOUNT
24 OF TAX OWING BY THE TAXPAYER. A NOTICE OF ASSESSMENT IN THE
25 ESTIMATED AMOUNT SHALL BE SENT TO THE TAXPAYER. THE TAX SHALL BE
26 PAID WITHIN NINETY DAYS AFTER A NOTICE OF SUCH ESTIMATED
27 ASSESSMENT HAS BEEN MAILED TO THE TAXPAYER, UNLESS WITHIN SUCH
28 PERIOD THE TAXPAYER HAS FILED A PETITION FOR REASSESSMENT IN THE
29 MANNER PRESCRIBED BY [SECTION 340 OF THIS ARTICLE.] ARTICLE
30 XXVII.
20050S0993B1893 - 43 -
1 (D) A NOTICE OF ASSESSMENT ISSUED BY THE DEPARTMENT PURSUANT
2 TO THIS ARTICLE SHALL BE MAILED BY CERTIFIED MAIL TO THE
3 TAXPAYER. THE NOTICE SHALL SET FORTH THE BASIS OF THE
4 ASSESSMENT.
5 SECTION 339. JEOPARDY ASSESSMENTS.--(A) JEOPARDY
6 ASSESSMENTS, FILING AND NOTICE. IF THE DEPARTMENT BELIEVES THAT
7 THE ASSESSMENT OR THE COLLECTION OF A DEFICIENCY WILL BE
8 JEOPARDIZED IN WHOLE OR IN PART BY DELAY, IT MAY MAIL OR ISSUE
9 NOTICE OF ITS FINDING TO THE TAXPAYER, TOGETHER WITH A DEMAND
10 FOR IMMEDIATE PAYMENT OF THE TAX OR THE DEFICIENCY DECLARED TO
11 BE IN JEOPARDY INCLUDING INTEREST AND PENALTIES AND ADDITIONS
12 THERETO, IF ANY.
13 (B) CLOSING OF TAXABLE YEAR. IF THE DEPARTMENT BELIEVES THAT
14 A TAXPAYER DESIGNS QUICKLY TO DEPART FROM THE STATE OR TO REMOVE
15 HIS PROPERTY THEREFROM OR TO CONCEAL HIMSELF OR HIS PROPERTY
16 THEREIN, OR TO DO ANY OTHER ACT TENDING TO PREJUDICE OR TO
17 RENDER WHOLLY OR PARTLY INEFFECTUAL PROCEEDINGS TO COLLECT THE
18 TAX FOR THE TAXABLE YEAR THEN LAST PAST OR THE TAXABLE YEAR THEN
19 CURRENT UNLESS SUCH PROCEEDINGS BE BROUGHT WITHOUT DELAY, THE
20 DEPARTMENT SHALL DECLARE THE TAXABLE PERIOD FOR SUCH TAXPAYER
21 IMMEDIATELY TERMINATED AND SHALL CAUSE NOTICE OF SUCH FINDING
22 AND DECLARATION TO BE GIVEN THE TAXPAYER, TOGETHER WITH A DEMAND
23 FOR IMMEDIATE PAYMENT OF THE TAX FOR THE TAXABLE PERIOD SO
24 DECLARED TERMINATED AND OF THE TAX FOR THE PRECEDING TAXABLE
25 YEAR OR SO MUCH OF SUCH TAX AS IS UNPAID, WHETHER OR NOT THE
26 TIME OTHERWISE ALLOWED BY LAW FOR FILING RETURN AND PAYING THE
27 TAX HAS EXPIRED; AND SUCH TAXES SHALL THEREUPON BECOME
28 IMMEDIATELY DUE AND PAYABLE.
29 (C) JEOPARDY ASSESSMENTS, COLLECTION. A JEOPARDY ASSESSMENT
30 IS IMMEDIATELY DUE AND PAYABLE, AND PROCEEDINGS FOR COLLECTION
20050S0993B1893 - 44 -
1 MAY BE COMMENCED AT ONCE. THE TAXPAYER, HOWEVER, MAY STAY
2 COLLECTION AND PREVENT THE JEOPARDY ASSESSMENT FROM BECOMING
3 FINAL BY FILING, WITHIN TEN DAYS AFTER THE DATE OF THE NOTICE OF
4 JEOPARDY ASSESSMENT, A PETITION FOR REASSESSMENT,
5 NOTWITHSTANDING THE PROVISIONS OF SECTION [340] 2702 TO THE
6 CONTRARY, ACCOMPANIED BY A BOND OR OTHER SECURITY IN SUCH
7 AMOUNTS AS THE DEPARTMENT MAY DEEM NECESSARY, NOT EXCEEDING
8 DOUBLE THE AMOUNT (INCLUDING INTEREST AND PENALTIES AND
9 ADDITIONS THERETO) AS TO WHICH THE STAY IS DESIRED.
10 (D) JEOPARDY ASSESSMENT, WHEN FINAL. IF A PETITION FOR
11 REASSESSMENT, ACCOMPANIED BY BOND OR OTHER SECURITY IS NOT FILED
12 WITHIN THE TEN-DAY PERIOD, THE ASSESSMENT BECOMES FINAL.
13 (E) JEOPARDY ASSESSMENTS, HEARING. IF THE TAXPAYER HAS SO
14 REQUESTED IN HIS PETITION, THE DEPARTMENT SHALL GRANT HIM OR HIS
15 AUTHORIZED REPRESENTATIVE AN ORAL HEARING.
16 (F) JEOPARDY ASSESSMENTS, ACTION ON PETITION FOR
17 REASSESSMENT. THE DEPARTMENT SHALL CONSIDER THE PETITION FOR
18 REASSESSMENT AND NOTIFY THE TAXPAYER OF ITS DECISION THEREON.
19 ITS DECISION AS TO THE VALIDITY OF THE JEOPARDY ASSESSMENT SHALL
20 BE FINAL, UNLESS THE TAXPAYER WITHIN NINETY DAYS AFTER
21 NOTIFICATION OF THE DEPARTMENT'S DECISION FILES A PETITION FOR
22 REVIEW AUTHORIZED UNDER SECTION [341] 2704.
23 (G) JEOPARDY ASSESSMENTS, PRESUMPTIVE EVIDENCE OF JEOPARDY.
24 IN ANY PROCEEDING BROUGHT TO ENFORCE PAYMENT OF TAXES MADE DUE
25 AND PAYABLE BY THIS SECTION, THE BELIEF OF THE DEPARTMENT UNDER
26 SUBSECTION (A) WHETHER MADE AFTER NOTICE TO THE TAXPAYER OR NOT,
27 IS FOR ALL PURPOSES PRESUMPTIVE EVIDENCE THAT THE ASSESSMENT OR
28 COLLECTION OF THE TAX OR THE DEFICIENCY WAS IN JEOPARDY. A
29 CERTIFICATE OF THE DEPARTMENT OF THE MAILING OR ISSUING OF THE
30 NOTICES SPECIFIED IN THIS SECTION IS PRESUMPTIVE EVIDENCE THAT
20050S0993B1893 - 45 -
1 THE NOTICES WERE MAILED OR ISSUED.
2 SECTION 340. PROCEDURE FOR REASSESSMENT.--[PROMPTLY AFTER
3 THE DATE OF AN ASSESSMENT BY THE DEPARTMENT, THE DEPARTMENT
4 SHALL SEND BY MAIL A COPY THEREOF TO THE PERSON AGAINST WHOM IT
5 WAS MADE. WITHIN NINETY DAYS AFTER THE DATE UPON WHICH THE COPY
6 OF ANY SUCH ASSESSMENT WAS MAILED, SUCH PERSON MAY FILE WITH THE
7 DEPARTMENT A PETITION FOR REASSESSMENT OF SUCH TAX. EVERY
8 PETITION FOR REASSESSMENT SHALL STATE SPECIFICALLY THE REASONS
9 WHICH THE PETITIONER BELIEVES ENTITLED HIM TO SUCH REASSESSMENT,
10 AND IT SHALL BE SUPPORTED BY AFFIDAVIT THAT IT IS NOT MADE FOR
11 THE PURPOSE OF DELAY AND THAT THE FACTS SET FORTH THEREIN ARE
12 TRUE. IT SHALL BE THE DUTY OF THE DEPARTMENT, WITHIN SIX MONTHS
13 AFTER RECEIVING A PETITION FOR REASSESSMENT, TO DISPOSE OF SUCH
14 PETITION FOR REASSESSMENT. NOTICE OF THE ACTION TAKEN UPON ANY
15 PETITION FOR REASSESSMENT SHALL BE GIVEN TO THE PETITIONER
16 PROMPTLY THEREAFTER.] ANY TAXPAYER AGAINST WHOM AN ASSESSMENT IS
17 MADE MAY PETITION THE DEPARTMENT FOR A REASSESSMENT PURSUANT TO
18 ARTICLE XXVII.
19 [SECTION 341. REVIEW BY BOARD OF FINANCE AND REVENUE.--
20 WITHIN NINETY DAYS AFTER THE DATE OF MAILING OF NOTICE BY THE
21 DEPARTMENT OF THE ACTION TAKEN ON ANY PETITION FOR REASSESSMENT
22 FILED WITH IT, THE PERSON AGAINST WHOM THE ASSESSMENT WAS MADE
23 MAY BY PETITION REQUEST THE BOARD OF FINANCE AND REVENUE TO
24 REVIEW SUCH ACTION. THE FAILURE OF THE DEPARTMENT TO NOTIFY THE
25 PETITIONER OF A DECISION WITHIN THE SIX-MONTHS PERIOD PROVIDED
26 FOR BY SECTION 340 SHALL ACT AS A DENIAL OF SUCH PETITION, AND A
27 PETITION FOR REVIEW MAY BE FILED WITH THE BOARD OF FINANCE AND
28 REVENUE WITHIN ONE HUNDRED TWENTY DAYS AFTER WRITTEN NOTICE IS
29 MAILED TO PETITIONER THAT THE DEPARTMENT HAS FAILED TO DISPOSE
30 OF THE PETITION WITHIN THE SIX-MONTHS PERIOD PRESCRIBED BY
20050S0993B1893 - 46 -
1 SECTION 340. EVERY PETITION FOR REVIEW FILED HEREUNDER SHALL
2 STATE SPECIFICALLY THE REASONS UPON WHICH THE PETITIONER RELIES,
3 OR SHALL INCORPORATE BY REFERENCE THE PETITION FOR REASSESSMENT
4 IN WHICH SUCH REASONS SHALL HAVE BEEN STATED. THE PETITION SHALL
5 BE SUPPORTED BY AFFIDAVIT THAT IT IS NOT MADE FOR THE PURPOSE OF
6 DELAY AND THAT THE FACTS THEREIN SET FORTH ARE TRUE. THE BOARD
7 OF FINANCE AND REVENUE SHALL ACT IN DISPOSITION OF SUCH
8 PETITIONS FILED WITH IT WITHIN SIX MONTHS AFTER THEY HAVE BEEN
9 RECEIVED, AND IN THE EVENT OF FAILURE OF SAID BOARD TO DISPOSE
10 OF ANY SUCH PETITION WITHIN SIX MONTHS, THE ACTION TAKEN BY THE
11 DEPARTMENT UPON THE PETITION FOR REASSESSMENT SHALL BE DEEMED
12 SUSTAINED. THE BOARD OF FINANCE AND REVENUE MAY SUSTAIN THE
13 ACTION TAKEN ON THE PETITION FOR REASSESSMENT, OR IT MAY
14 REASSESS THE TAX DUE UPON SUCH BASIS AS IT SHALL DEEM ACCORDING
15 TO LAW. NOTICE OF THE ACTION OF THE BOARD OF FINANCE AND REVENUE
16 SHALL BE GIVEN BY MAIL TO THE DEPARTMENT AND TO THE PETITIONER.]
17 SECTION 11. SECTION 342 OF THE ACT, AMENDED DECEMBER 3, 1975
18 (P.L.476, NO.140) AND REPEALED IN PART APRIL 28, 1978 (P.L.202,
19 NO.53), IS AMENDED TO READ:
20 [SECTION 342. APPEAL TO THE COMMONWEALTH COURT.--ANY PERSON,
21 OR THE COMMONWEALTH, AGGRIEVED BY THE DECISION OF THE BOARD OF
22 FINANCE AND REVENUE MAY APPEAL IN THE MANNER NOW OR HEREAFTER
23 PROVIDED BY LAW FOR APPEALS FROM DECISIONS OF SAID BOARD IN TAX
24 CASES.]
25 SECTION 12. SECTION 347 OF THE ACT, AMENDED JULY 1, 1985
26 (P.L.78, NO.29), IS AMENDED TO READ:
27 SECTION 347. RESTRICTIONS ON REFUNDS.--[NO] A CREDIT OR
28 REFUND [SHALL] MAY BE MADE UNDER SECTION 346 [WITHOUT THE
29 APPROVAL OF THE BOARD OF FINANCE AND REVENUE, EXCEPT SUCH
30 CREDITS OR REFUNDS AS ARISE]:
20050S0993B1893 - 47 -
1 (1) BY REASON OF THE OVERPAYMENT OF AN INSTALLMENT OF
2 ESTIMATED TAX;
3 (2) UPON REASSESSMENT [OR UPON];
4 (3) UPON THE FILING OF A FINAL RETURN OR AMENDED FINAL
5 RETURN SHOWING ANY OVERPAYMENT OF TAX.
6 SECTION 13. SECTION 350 OF THE ACT, AMENDED MAY 7, 1997
7 (P.L.85, NO.7), IS AMENDED TO READ:
8 SECTION 350. LIMITATIONS ON REFUND OR CREDIT.--ANY
9 APPLICATION FOR REFUND MUST BE FILED WITH THE DEPARTMENT UNDER
10 ARTICLE XXVII WITHIN THE TIME LIMITS OF SECTION 3003.1.
11 SECTION 14. SECTION 401 OF THE ACT IS AMENDED BY ADDING A
12 CLAUSE TO READ:
13 SECTION 401. DEFINITIONS.--THE FOLLOWING WORDS, TERMS, AND
14 PHRASES, WHEN USED IN THIS ARTICLE, SHALL HAVE THE MEANING
15 ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT
16 CLEARLY INDICATES A DIFFERENT MEANING:
17 * * *
18 (7) "DETERMINATION." THE ASCERTAINMENT OF TAX LIABILITY.
19 THE TERM INCLUDES A REDETERMINATION.
20 SECTION 15. SECTION 403 OF THE ACT, AMENDED SEPTEMBER 9,
21 1971 (P.L.437, NO.105), JUNE 23, 1982 (P.L.610, NO.172) AND JULY
22 1, 1985 (P.L.78, NO.29), IS AMENDED TO READ:
23 SECTION 403. REPORTS AND PAYMENT OF TAX.--(A) [FOR THE
24 PURPOSE OF ASCERTAINING THE AMOUNT OF TAX PAYABLE UNDER THIS
25 ARTICLE, IT] IT SHALL BE THE DUTY OF EVERY CORPORATION, LIABLE
26 TO PAY TAX UNDER THIS ARTICLE, ON OR BEFORE APRIL 15, 1972, AND
27 EACH YEAR THEREAFTER, TO TRANSMIT TO THE DEPARTMENT, UPON A FORM
28 PRESCRIBED[, PREPARED AND FURNISHED] BY THE DEPARTMENT, AN
29 ANNUAL REPORT UNDER OATH OR AFFIRMATION OF ITS PRESIDENT, VICE-
30 PRESIDENT [OR OTHER PRINCIPAL OFFICER, AND OF ITS], TREASURER
20050S0993B1893 - 48 -
1 [OR], ASSISTANT TREASURER OR OTHER AUTHORIZED OFFICERS OF NET
2 INCOME TAXABLE UNDER THE PROVISIONS OF THIS ARTICLE. SUCH REPORT
3 SHALL SET FORTH:
4 (1) A TRUE COPY OF ITS RETURN TO THE FEDERAL GOVERNMENT OF
5 THE ANNUAL TAXABLE INCOME ARISING OR ACCRUING IN THE CALENDAR OR
6 FISCAL YEAR NEXT PRECEDING, OR SUCH PART OR PORTIONS OF SAID
7 RETURN, AS THE DEPARTMENT MAY DESIGNATE;
8 (2) IF NO RETURN WAS FILED WITH THE FEDERAL GOVERNMENT THE
9 REPORT MADE TO THE DEPARTMENT SHALL SHOW SUCH INFORMATION AS
10 WOULD HAVE BEEN CONTAINED IN A RETURN TO THE FEDERAL GOVERNMENT
11 HAD ONE BEEN MADE; AND
12 (3) SUCH OTHER INFORMATION AS THE DEPARTMENT MAY REQUIRE.
13 UPON RECEIPT OF THE REPORT, THE DEPARTMENT SHALL PROMPTLY
14 FORWARD TO THE DEPARTMENT OF STATE, THE NAMES OF THE PRESIDENT,
15 VICE-PRESIDENT, SECRETARY AND TREASURER OF THE CORPORATION AND
16 THE COMPLETE STREET ADDRESS OF THE PRINCIPAL OFFICE OF THE
17 CORPORATION FOR INCLUSION IN THE RECORDS OF THE DEPARTMENT OF
18 STATE RELATING TO CORPORATION.
19 (B) [FOR THE PURPOSE OF ASCERTAINING THE AMOUNT OF TAX
20 PAYABLE UNDER THIS ARTICLE FOR THE TAXABLE YEAR 1971, AND EACH
21 TAXABLE YEAR THEREAFTER, IT SHALL BE THE DUTY OF EVERY
22 CORPORATION LIABLE TO PAY TAX UNDER THIS ARTICLE, ON OR BEFORE
23 APRIL 30, 1971, AND ON OR BEFORE THE END OF THE FOURTH MONTH
24 AFTER THE CLOSE OF ITS PREVIOUS FISCAL YEAR FOR FISCAL YEAR
25 TAXPAYERS, AND EACH YEAR THEREAFTER, TO TRANSMIT IN LIKE FORM
26 AND MANNER AN ADDITIONAL TENTATIVE REPORT AND MAKE PAYMENT
27 PURSUANT TO THE PROVISIONS OF SECTION 3003: PROVIDED, THAT IN
28 MAKING SUCH REPORT AND PAYMENT FOR THE CALENDAR YEAR 1971 AND
29 EACH YEAR THEREAFTER AND FOR FISCAL YEARS COMMENCING DURING THE
30 CALENDAR YEAR 1971, AND EACH YEAR THEREAFTER THE TAX BASE FROM
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1 THE IMMEDIATE PRIOR YEAR, UPON WHICH THE TENTATIVE TAX
2 COMPUTATION IS TO BE MADE UNDER SAID SECTION 3003, SHALL BE
3 COMPUTED AS IF THE TAX BASE FOR SUCH IMMEDIATE PRIOR YEAR HAD
4 BEEN DETERMINED UNDER THE APPLICABLE PROVISIONS OF THE ACT OF
5 MARCH 4, 1971 (ACT NO.2). FOR TAXABLE YEARS COMMENCING WITH
6 CALENDAR YEAR 1986 AND FOR EACH TAXABLE YEAR THROUGH TAXABLE
7 YEAR 1991, CORPORATIONS SHALL NOT REPORT AND PAY TENTATIVE TAX
8 ON ACCOUNT OF THE CORPORATE NET INCOME TAX, BUT SHALL, ON OR
9 BEFORE APRIL 15 FOR CALENDAR YEAR TAXPAYERS AND ON OR BEFORE THE
10 FIFTEENTH DAY OF THE FOURTH MONTH OF THE FISCAL YEAR FOR FISCAL
11 YEAR TAXPAYERS, REPORT AND PAY ESTIMATED CORPORATE NET INCOME
12 TAX PURSUANT TO SECTION 3003.2 OF THIS ACT: PROVIDED, HOWEVER,
13 THAT TENTATIVE TAX ON ACCOUNT OF ANY OTHER TAX WHICH IS IMPOSED
14 AS THE RESULT OF THE ADOPTION BY REFERENCE OF THIS PART OR
15 SECTION SHALL CONTINUE TO BE IMPOSED. FOR TAXABLE YEARS
16 COMMENCING ON OR AFTER JANUARY 1, 1992, CORPORATIONS SHALL
17 REPORT AND PAY ESTIMATED TAX PURSUANT TO SECTION 3003.2 ON OR
18 BEFORE MARCH 15 FOR CALENDAR YEAR TAXPAYERS AND ON OR BEFORE THE
19 FIFTEENTH DAY OF THE THIRD MONTH FOR FISCAL YEAR TAXPAYERS.] IT
20 SHALL BE THE DUTY OF EACH CORPORATION LIABLE TO PAY TAX UNDER
21 THIS ARTICLE TO PAY ESTIMATED TAX UNDER SECTION 3003.2 AND TO
22 MAKE FINAL PAYMENT OF TAX DUE FOR THE TAXABLE YEAR WITH THE
23 ANNUAL REPORT REQUIRED BY THIS SECTION.
24 (C) THE AMOUNT OF ALL TAXES, IMPOSED UNDER THE PROVISIONS OF
25 THIS ARTICLE, NOT PAID ON OR BEFORE THE TIMES AS ABOVE PROVIDED,
26 SHALL BEAR INTEREST AS PROVIDED IN SECTION 806 OF THE ACT OF
27 APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS "THE FISCAL CODE,"
28 FROM THE DATE THEY ARE DUE AND PAYABLE UNTIL PAID, EXCEPT THAT
29 IF THE TAXABLE INCOME HAS BEEN, OR IS INCREASED BY THE
30 COMMISSIONER OF INTERNAL REVENUE, OR BY ANY OTHER AGENCY OR
20050S0993B1893 - 50 -
1 COURT OF THE UNITED STATES, INTEREST SHALL BE COMPUTED ON THE
2 ADDITIONAL TAX DUE FROM THIRTY DAYS AFTER THE CORPORATION
3 RECEIVES NOTICE OF THE CHANGE OF INCOME UNTIL PAID: PROVIDED,
4 HOWEVER, THAT ANY CORPORATION MAY PAY THE FULL AMOUNT OF SUCH
5 TAX, OR ANY PART THEREOF, TOGETHER WITH INTEREST DUE TO THE DATE
6 OF PAYMENT, WITHOUT PREJUDICE TO ITS RIGHT TO PRESENT AND
7 PROSECUTE [A PETITION FOR RESETTLEMENT, A PETITION FOR REVIEW],
8 AN ADMINISTRATIVE PETITION OR AN APPEAL TO COURT. IF IT BE
9 THEREAFTER DETERMINED THAT SUCH TAXES WERE OVERPAID, THE
10 DEPARTMENT SHALL ENTER A CREDIT TO THE ACCOUNT OF SUCH
11 CORPORATION, WHICH MAY BE USED BY IT IN THE MANNER PRESCRIBED BY
12 LAW.
13 (D) IF THE OFFICERS OF ANY CORPORATION SHALL NEGLECT, OR
14 REFUSE TO MAKE ANY REPORT AS HEREIN REQUIRED, OR SHALL KNOWINGLY
15 MAKE ANY FALSE REPORT, THE FOLLOWING PERCENTAGES OF THE AMOUNT
16 OF THE TAX SHALL BE ADDED BY THE DEPARTMENT TO THE TAX
17 DETERMINED TO BE DUE ON THE FIRST ONE THOUSAND DOLLARS ($1,000)
18 OF TAX TEN PER CENT, ON THE NEXT FOUR THOUSAND DOLLARS ($4,000)
19 FIVE PER CENT, AND ON EVERYTHING IN EXCESS OF FIVE THOUSAND
20 DOLLARS ($5,000) ONE PER CENT, NO SUCH AMOUNTS ADDED TO THE TAX
21 SHALL BEAR ANY INTEREST WHATSOEVER.
22 (E) IF ANY CORPORATION CLOSES ITS FISCAL YEAR NOT UPON
23 DECEMBER 31, BUT UPON SOME OTHER DATE, AND REPORTS TO THE
24 FEDERAL GOVERNMENT AS OF SUCH OTHER DATE, OR WOULD SO REPORT
25 WERE IT TO MAKE A RETURN TO THE FEDERAL GOVERNMENT, SUCH
26 CORPORATION SHALL CERTIFY SUCH FACT TO THE DEPARTMENT, AND SHALL
27 MAKE THE ANNUAL REPORT, HEREIN REQUIRED, WITHIN THIRTY DAYS
28 AFTER THE RETURN TO THE FEDERAL GOVERNMENT IS DUE, OR WOULD BE
29 DUE WERE IT TO BE REQUIRED OF SUCH CORPORATION, SUBJECT IN ALL
30 OTHER RESPECTS TO THE PROVISIONS OF THIS ARTICLE. [THE TENTATIVE
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1 REPORT REQUIRED OF SUCH CORPORATION SHALL BE DUE NOT LATER THAN
2 FOUR MONTHS AFTER THE END OF THE NEXT PRECEDING FISCAL YEAR.]
3 (F) IF THE CORPORATION SHALL CLAIM IN ITS REPORT THAT THE
4 RETURN MADE TO THE FEDERAL GOVERNMENT WAS INACCURATE, THE AMOUNT
5 CLAIMED BY IT TO BE THE TAXABLE INCOME, TAXABLE UNDER THIS
6 ARTICLE, AND THE BASIS OF SUCH CLAIM OF INACCURACY, SHALL BE
7 FULLY SPECIFIED.
8 SECTION 16. SECTION 406 OF THE ACT, AMENDED SEPTEMBER 9,
9 1971 (P.L.437, NO.105), IS AMENDED TO READ:
10 SECTION 406. CHANGES MADE BY FEDERAL GOVERNMENT.--(A) IF
11 THE AMOUNT OF THE TAXABLE INCOME, AS RETURNED BY ANY CORPORATION
12 TO THE FEDERAL GOVERNMENT, IS FINALLY CHANGED OR CORRECTED BY
13 THE COMMISSION OF INTERNAL REVENUE OR BY ANY OTHER AGENCY OR
14 COURT OF THE UNITED STATES, SUCH CORPORATION, WITHIN THIRTY DAYS
15 AFTER THE RECEIPT OF SUCH FINAL CHANGE OR CORRECTION, SHALL MAKE
16 A [CORRECTED] REPORT OF CHANGE, UNDER OATH OR AFFIRMATION, TO
17 THE DEPARTMENT SHOWING SUCH FINALLY CHANGED OR CORRECTED TAXABLE
18 INCOME, UPON WHICH THE TAX IS REQUIRED TO BE PAID TO THE UNITED
19 STATES. IN CASE A CORPORATION FAILS TO FILE A REPORT OF [SUCH
20 CORRECTION] CHANGE, WHICH RESULTS IN AN INCREASE IN TAXABLE
21 INCOME WITHIN THE TIME PRESCRIBED, THERE SHALL BE ADDED TO THE
22 TAX, A PENALTY OF FIVE DOLLARS ($5) FOR EVERY DAY DURING WHICH
23 SUCH CORPORATION IS IN DEFAULT, BUT THE DEPARTMENT MAY ABATE ANY
24 SUCH PENALTY IN WHOLE OR IN PART.
25 (B) IF, AS A RESULT OF SUCH FINAL CHANGE OR CORRECTION,
26 [THERE SHOULD BE] A CORPORATION SHOULD REPORT ANY CHANGE [MADE]
27 IN THE AMOUNT OF THE TAXABLE INCOME OF ANY CORPORATION UPON
28 WHICH TAX IS IMPOSED BY THIS ARTICLE, THE DEPARTMENT SHALL
29 ADJUST THE CORPORATION'S TAX ON THE DEPARTMENT'S RECORDS TO
30 CONFORM TO THE REVISED TAX AS REPORTED AND SHALL CREDIT
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1 TAXPAYER'S ACCOUNT TO THE EXTENT OF ANY OVERPAYMENT RESULTING
2 FROM THE ADJUSTMENT. THE DEPARTMENT SHALL THEN HAVE THE POWER,
3 AND ITS DUTY SHALL BE TO [RESETTLE SUCH TAXES. WHENEVER A
4 RESETTLEMENT SHALL HAVE BEEN MADE HEREUNDER, THE DEPARTMENT
5 SHALL RESETTLE THE ACCOUNT ACCORDING TO LAW, AND SHALL CREDIT OR
6 CHARGE, AS THE CASE MAY BE, THE AMOUNT RESULTING FROM SUCH
7 RESETTLEMENT UPON THE CURRENT ACCOUNTS OF THE CORPORATION WITH
8 WHICH IT IS MADE. THE RESETTLEMENT SHALL BE SUBJECT TO AUDIT AND
9 APPROVAL BY THE DEPARTMENT OF THE AUDITOR GENERAL, AS IN THE
10 CASE OF ORIGINAL SETTLEMENTS, AND IN CASE OF THE FAILURE OF THE
11 TWO DEPARTMENTS TO AGREE, THE RESETTLEMENT SHALL BE SUBMITTED TO
12 THE BOARD OF FINANCE AND REVENUE, AS IN THE CASE OF ORIGINAL
13 SETTLEMENTS.] DETERMINE AND ASSESS THE TAXPAYER'S UNPAID AND
14 UNREPORTED LIABILITY FOR TAX, INTEREST OR PENALTY DUE THE
15 COMMONWEALTH, OR TO CREDIT THE TAXPAYER'S ACCOUNT.
16 (C) WHERE A REPORT OF CHANGE, [CORRECTION, OR
17 REDETERMINATION] OF FEDERAL INCOME, OR FEDERAL TAX, HAS BEEN
18 FILED AFTER [A PETITION FOR REVIEW, OR] AN ADMINISTRATIVE OR
19 JUDICIAL APPEAL HAS BEEN TAKEN, [SUCH] THE REPORT SHALL BE
20 DEEMED A PART OF THE ORIGINAL ANNUAL REPORT UPON PETITION OF THE
21 TAXPAYER AT ANY SUBSEQUENT PROCEEDING AS THOUGH IT HAD BEEN
22 FILED WITH [SUCH] THE ORIGINAL REPORT, AND NO SEPARATE [PETITION
23 FOR REVIEW OR] APPEAL FROM [THE RESETTLEMENT] AN ASSESSMENT
24 RESULTING FROM [SUCH] THE REPORT OF CHANGE, CORRECTION, OR
25 REDETERMINATION SHALL BE NECESSARY TO THE EXTENT THE IDENTICAL
26 ISSUES FOR THE TAXABLE YEAR HAVE BEEN RAISED IN THE APPEAL.
27 (D) THE PROVISIONS OF THIS SECTION SHALL NOT BE CONSTRUED SO
28 AS TO PERMIT [A RESETTLEMENT] AN ASSESSMENT BASED UPON THE
29 ALLOWANCE OF ANY DEDUCTION ON ACCOUNT OF NET OPERATING LOSSES,
30 SUSTAINED IN OTHER FISCAL OR CALENDAR YEARS, THAT ARE NOT
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1 ALLOWED AS DEDUCTIONS UNDER THE DEFINITION OF "TAXABLE INCOME"
2 AS CONTAINED IN THIS ARTICLE.
3 (E) THE PROVISIONS OF THIS SECTION SHALL APPLY TO EVERY
4 CORPORATION WHICH WAS DOING BUSINESS IN PENNSYLVANIA IN THE YEAR
5 FOR WHICH THE FEDERAL INCOME HAS BEEN CHANGED, IRRESPECTIVE OF
6 WHETHER OR NOT SUCH CORPORATION HAS THEREAFTER MERGED,
7 CONSOLIDATED, WITHDRAWN OR DISSOLVED. ANY CLEARANCE CERTIFICATE
8 ISSUED BY THE DEPARTMENT SHALL BE CONDITIONED UPON THE
9 REQUIREMENT THAT IN THE EVENT OF A CHANGE IN FEDERAL INCOME FOR
10 ANY YEAR FOR WHICH TAXES HAVE BEEN PAID TO THE COMMONWEALTH, THE
11 CORPORATION OR ITS SUCCESSOR OR ITS OFFICERS OR ITS DIRECTORS
12 SHALL FILE WITH THE DEPARTMENT A REPORT OF CHANGE AND PAY ANY
13 ADDITIONAL STATE TAX RESULTING THEREFROM.
14 SECTION 17. THE HEADING OF PART IV OF ARTICLE IV OF THE ACT
15 IS AMENDED TO READ:
16 PART IV
17 [SETTLEMENT AND RESETTLEMENT]
18 ASSESSMENT AND COLLECTION OF TAX
19 SECTION 18. SECTION 407 OF THE ACT IS AMENDED BY ADDING A
20 SUBSECTION TO READ:
21 SECTION 407. SETTLEMENT AND RESETTLEMENT.--* * *
22 (E.1) THIS SECTION APPLIES TO SETTLEMENTS MAILED BY THE
23 DEPARTMENT PRIOR TO JANUARY 1, 2008.
24 SECTION 19. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:
25 SECTION 407.1. ASSESSMENTS.--(A) IF THE DEPARTMENT
26 DETERMINES THAT UNPAID OR UNREPORTED TAX IS DUE THE
27 COMMONWEALTH, THE DEPARTMENT SHALL ISSUE AN ASSESSMENT UNDER
28 THIS SECTION AND SECTIONS 407.2, 407.3, 407.4 AND 407.5. SUCH AN
29 ASSESSMENT IS NOT SUBJECT TO THE SETTLEMENT PROCEDURE IN THE ACT
30 OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS THE FISCAL CODE.
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1 (B) A NOTICE OF ASSESSMENT AND DEMAND FOR PAYMENT SHALL BE
2 MAILED BY CERTIFIED MAIL TO THE TAXPAYER. THE NOTICE SHALL SET
3 FORTH THE BASIS OF THE ASSESSMENT. THE ASSESSMENT SHALL BE PAID
4 TO THE DEPARTMENT UPON RECEIPT OF THE NOTICE OF ASSESSMENT.
5 PAYMENT OF THE ASSESSMENT SHALL BE WITHOUT PREJUDICE TO THE
6 RIGHT OF THE TAXPAYER TO FILE A PETITION FOR REASSESSMENT IN THE
7 MANNER PRESCRIBED BY ARTICLE XXVII.
8 (C) IN THE EVENT THAT A TAXPAYER FAILS TO FILE A REPORT FOR
9 A TAX GOVERNED BY THIS ARTICLE, THE DEPARTMENT MAY ISSUE AN
10 ESTIMATED ASSESSMENT, BASED UPON THE RECORDS AND INFORMATION
11 AVAILABLE OR THAT MAY COME INTO THE DEPARTMENT'S POSSESSION. IF
12 PRIOR TO THE FILING OF A REPORT THE DEPARTMENT ESTIMATES THAT
13 ADDITIONAL UNPAID OR UNREPORTED TAX IS DUE THE COMMONWEALTH, THE
14 DEPARTMENT MAY ISSUE ADDITIONAL ESTIMATED ASSESSMENTS.
15 (D) A NOTICE OF ESTIMATED ASSESSMENT AND DEMAND FOR PAYMENT
16 SHALL BE MAILED BY CERTIFIED MAIL TO THE TAXPAYER. THE
17 ASSESSMENT SHALL BE PAID TO THE DEPARTMENT UPON RECEIPT OF THE
18 NOTICE OF ASSESSMENT. PAYMENT OF THE ESTIMATED ASSESSMENT DOES
19 NOT ELIMINATE THE TAXPAYER'S OBLIGATION TO FILE A REPORT.
20 (E) A TAXPAYER SHALL HAVE NO RIGHT TO PETITION FOR
21 REASSESSMENT, PETITION FOR REFUND OR OTHERWISE APPEAL A NOTICE
22 OF ESTIMATED ASSESSMENT EXCEPT AS PROVIDED IN SUBSECTION (F).
23 (F) THE DEPARTMENT SHALL REMOVE AN ESTIMATED ASSESSMENT
24 WITHIN NINETY DAYS OF THE FILING OF A REPORT AND OTHER
25 INFORMATION REQUIRED TO DETERMINE THE TAX DUE THE COMMONWEALTH
26 WHEREUPON THE DEPARTMENT MAY ISSUE AN ASSESSMENT AS PROVIDED IN
27 SUBSECTION (A). ANY TAX DUE THE COMMONWEALTH THAT IS INCLUDED IN
28 AN ESTIMATED ASSESSMENT SHALL RETAIN ITS LIEN PRIORITY AS OF THE
29 DATE OF THE ESTIMATED ASSESSMENT TO THE EXTENT SUCH AMOUNT IS
30 INCLUDED WITH AN ASSESSMENT ISSUED UPON THE REVIEW OF THE FILED
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1 REPORT.
2 SECTION 407.2. JEOPARDY ASSESSMENTS.--(A) IF THE DEPARTMENT
3 BELIEVES THAT THE ASSESSMENT OR THE COLLECTION OF UNPAID OR
4 UNREPORTED TAX WILL BE JEOPARDIZED IN WHOLE OR IN PART BY DELAY,
5 IT SHALL ISSUE A JEOPARDY ASSESSMENT.
6 (B) IF THE DEPARTMENT BELIEVES THAT A TAXPAYER INTENDS TO
7 DEPART FROM THE COMMONWEALTH, REMOVE THE TAXPAYER'S PROPERTY
8 FROM THE COMMONWEALTH, CONCEAL HIMSELF OR PROPERTY OF THE
9 TAXPAYER FROM THE COMMONWEALTH, OR TO DO ANY OTHER ACT THAT MAY
10 PREJUDICE OR RENDER WHOLLY OR PARTLY INEFFECTUAL ANY ACTION TO
11 COLLECT ANY TAX FOR THE PRIOR OR CURRENT TAX PERIODS UNLESS THE
12 ACTION IS BROUGHT WITHOUT DELAY, THE DEPARTMENT SHALL DECLARE
13 THE CURRENT TAX PERIOD OF THE TAXPAYER IMMEDIATELY TERMINATED.
14 IN THIS CASE, THE DEPARTMENT SHALL ISSUE A JEOPARDY ASSESSMENT
15 FOR THE TAX PERIOD DECLARED TERMINATED AND FOR ALL PRIOR TAX
16 PERIODS, WHETHER OR NOT THE TIME OTHERWISE ALLOWED BY LAW FOR
17 FILING A REPORT OR PAYING THE TAX HAS EXPIRED.
18 (C) A NOTICE OF JEOPARDY ASSESSMENT AND DEMAND FOR PAYMENT
19 SHALL BE MAILED BY CERTIFIED MAIL TO THE TAXPAYER. THE NOTICE OF
20 JEOPARDY ASSESSMENT SHALL INCLUDE THE AMOUNT OF THE BOND OR
21 OTHER SECURITY REQUIRED TO STAY COLLECTION OF THE ASSESSMENT.
22 (D) THE JEOPARDY ASSESSMENT SHALL BE PAID TO THE DEPARTMENT
23 UPON RECEIPT OF THE NOTICE OF JEOPARDY ASSESSMENT. PAYMENT OF
24 THE JEOPARDY ASSESSMENT DOES NOT ELIMINATE THE TAXPAYER'S
25 OBLIGATION TO FILE A REPORT. IF PRIOR TO THE FILING OF A REPORT
26 THE DEPARTMENT ESTIMATES THAT ADDITIONAL UNPAID TAX IS DUE THE
27 COMMONWEALTH, THE DEPARTMENT MAY ISSUE ADDITIONAL JEOPARDY
28 ASSESSMENTS OR ESTIMATED ASSESSMENTS PURSUANT TO SECTION 407.1.
29 (E) A JEOPARDY ASSESSMENT IS IMMEDIATELY DUE AND PAYABLE,
30 AND PROCEEDINGS FOR COLLECTION MAY BE COMMENCED AT ONCE. THE
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1 FOLLOWING APPLY:
2 (1) THE COLLECTION OF THE WHOLE OR ANY AMOUNT OF A JEOPARDY
3 ASSESSMENT MAY BE STAYED, AT ANY TIME BEFORE THE ASSESSMENT
4 BECOMES FINAL, BY FILING WITH THE DEPARTMENT A BOND OR OTHER
5 SECURITY IN SUCH AMOUNTS AS THE DEPARTMENT MAY DEEM NECESSARY
6 NOT EXCEEDING ONE HUNDRED TWENTY PER CENT OF THE TAX FOR WHICH
7 THE STAY IS DESIRED.
8 (2) UPON THE FILING OF THE BOND OR OTHER SECURITY THE
9 COLLECTION OF THE AMOUNT ASSESSED THAT IS COVERED BY THE BOND OR
10 OTHER SECURITY SHALL BE STAYED. THE TAXPAYER SHALL HAVE THE
11 RIGHT TO WAIVE THE STAY AT ANY TIME IN RESPECT OF THE WHOLE OR
12 ANY PART OF THE AMOUNT COVERED BY THE BOND OR OTHER SECURITY. IF
13 THE TAXPAYER WAIVES ANY PART OF THE AMOUNT COVERED BY THE BOND
14 OR OTHER SECURITY, THEN THE BOND OR OTHER SECURITY SHALL BE
15 PROPORTIONATELY REDUCED UPON PAYMENT OF THE AMOUNT WAIVED. IF
16 ANY PORTION OF THE JEOPARDY ASSESSMENT IS ABATED, THE BOND OR
17 OTHER SECURITY SHALL BE PROPORTIONATELY REDUCED AT THE REQUEST
18 OF THE TAXPAYER.
19 (F) (1) A TAXPAYER MAY PREVENT A JEOPARDY ASSESSMENT FROM
20 BECOMING FINAL BY FILING A PETITION FOR REASSESSMENT WITH THE
21 DEPARTMENT WITHIN THIRTY DAYS AFTER THE MAILING DATE OF THE
22 NOTICE OF JEOPARDY ASSESSMENT. THE ISSUES TO BE ADDRESSED IN THE
23 REVIEW OF THE PETITION SHALL INCLUDE:
24 (I) WHETHER THE MAKING OF THE JEOPARDY ASSESSMENT IS
25 REASONABLE UNDER THE CIRCUMSTANCES.
26 (II) WHETHER THE AMOUNT ASSESSED AS A RESULT OF THE JEOPARDY
27 ASSESSMENT IS APPROPRIATE UNDER THE CIRCUMSTANCES.
28 (2) THE DEPARTMENT SHALL ISSUE A DECISION AND ORDER
29 DISPOSING OF A PETITION FILED UNDER PARAGRAPH (1) WITHIN SIXTY
30 DAYS AFTER RECEIPT OF THE PETITION. NOTICE OF THE DEPARTMENT'S
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1 DECISION AND ORDER DISPOSING OF THE PETITION SHALL BE MAILED TO
2 THE PETITIONER.
3 (3) A TAXPAYER MAY FILE A PETITION FOR REVIEW OF THE
4 DEPARTMENT'S DECISION AND ORDER UNDER PARAGRAPH (2) IN
5 COMMONWEALTH COURT WITHIN 30 DAYS AFTER THE FOLLOWING:
6 (I) THE MAILING DATE OF THE DEPARTMENT'S NOTICE OF DECISION
7 AND ORDER ON A PETITION FOR REASSESSMENT OF A JEOPARDY
8 ASSESSMENT.
9 (II) IF THE PETITION IS NOT DISPOSED OF BY THE DEPARTMENT
10 WITHIN SIXTY DAYS AFTER RECEIPT, THE SIXTIETH DAY FOLLOWING THE
11 DATE THE PETITION WAS RECEIVED BY THE DEPARTMENT.
12 (4) IF IT IS DETERMINED THAT THE MAKING OF THE JEOPARDY
13 ASSESSMENT IS UNREASONABLE OR THAT THE AMOUNT ASSESSED IS
14 INAPPROPRIATE, THE ASSESSMENT MAY BE ABATED, THE ASSESSMENT MAY
15 BE REDETERMINED IN WHOLE OR IN PART, OR THE DEPARTMENT OR THE
16 TAXPAYER MAY BE DIRECTED TO TAKE SUCH OTHER ACTIONS AS MAY BE
17 APPROPRIATE.
18 (G) ANY DETERMINATION MADE PURSUANT TO A PETITION FOR
19 REASSESSMENT UNDER THIS SECTION SHALL BE FINAL AND CONCLUSIVE
20 UPON EXHAUSTION OF THE APPEAL RIGHTS PROVIDED IN THIS SECTION
21 AND SHALL NOT BE REVIEWED IN ANY OTHER PROCEEDING.
22 (H) (1) IN AN ACTION UNDER THIS SECTION INVOLVING THE ISSUE
23 OF WHETHER THE MAKING OF A JEOPARDY ASSESSMENT IS REASONABLE
24 UNDER THE CIRCUMSTANCES, THE BURDEN OF PROOF IN RESPECT TO SUCH
25 ISSUE SHALL BE UPON THE DEPARTMENT.
26 (2) IN AN ACTION UNDER THIS SECTION INVOLVING THE ISSUE OF
27 WHETHER AN AMOUNT ASSESSED AS A RESULT OF JEOPARDY ASSESSMENT IS
28 APPROPRIATE UNDER THE CIRCUMSTANCES, THE BURDEN OF PROOF IN
29 RESPECT OF SUCH ISSUE SHALL BE UPON THE TAXPAYER.
30 SECTION 407.3. LIMITATIONS ON ASSESSMENTS.--(A) TAX MAY BE
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1 ASSESSED WITHIN THREE YEARS AFTER THE DATE THE REPORT IS FILED.
2 (B) TAX MAY BE ASSESSED AT ANY TIME IF A TAXPAYER FAILS TO
3 FILE A REPORT REQUIRED BY LAW.
4 (C) TAX MAY BE ASSESSED AT ANY TIME IF THE TAXPAYER FILES A
5 FALSE OR FRAUDULENT REPORT WITH INTENT TO EVADE TAX IMPOSED BY
6 THE TAX LAWS OF THIS COMMONWEALTH.
7 (D) IF AT ANY TIME WITHIN THE TIME LIMITATIONS SPECIFIED IN
8 THIS SECTION THE DEPARTMENT IS NOT SATISFIED WITH ITS
9 DETERMINATION OF THE TAXPAYER'S LIABILITY, THE DEPARTMENT MAY
10 STRIKE ALL, OR ANY PART OF, A PREVIOUSLY ISSUED ASSESSMENT OR
11 MAY ISSUE ADDITIONAL ASSESSMENTS OF TAX.
12 (E) THE DEPARTMENT MAY, WITHIN THREE YEARS OF THE GRANTING
13 OF ANY REFUND OR CREDIT OR WITHIN THE PERIOD IN WHICH AN
14 ASSESSMENT COULD HAVE BEEN FILED BY THE DEPARTMENT WITH RESPECT
15 TO THE TAXABLE PERIOD FOR WHICH THE REFUND WAS GRANTED,
16 WHICHEVER PERIOD SHALL LAST OCCUR, FILE AN ASSESSMENT TO RECOVER
17 ANY REFUND OR PART THEREOF OR CREDIT OR PART THEREOF WHICH WAS
18 ERRONEOUSLY MADE OR ALLOWED.
19 (F) FOR PURPOSES OF THIS SECTION, A REPORT FILED BEFORE THE
20 LAST DAY PRESCRIBED FOR FILING SHALL BE DEEMED TO HAVE BEEN
21 FILED ON THE LAST DAY.
22 SECTION 407.4. EXTENSION OF LIMITATION PERIOD.--
23 NOTWITHSTANDING SECTION 407.3, WHERE, BEFORE THE EXPIRATION OF
24 THE PERIOD PRESCRIBED IN SECTION 407.3, A TAXPAYER HAS CONSENTED
25 IN WRITING THAT SUCH PERIOD BE EXTENDED, THE AMOUNT OF TAX DUE
26 MAY BE ASSESSED AT ANY TIME WITHIN THE EXTENDED PERIOD. THE
27 PERIOD SO EXTENDED MAY BE FURTHER EXTENDED BY SUBSEQUENT
28 CONSENTS IN WRITING MADE BEFORE THE EXPIRATION OF THE EXTENDED
29 PERIOD.
30 SECTION 407.5. AUDIT BY AUDITOR GENERAL; DETERMINATION OF
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1 TAX.--(A) THE DEPARTMENT OF THE AUDITOR GENERAL SHALL HAVE THE
2 POWER TO DO ALL OF THE FOLLOWING:
3 (1) AUDIT AND APPROVE ALL DETERMINATIONS BY THE DEPARTMENT
4 OF TAX LIABILITY AS REPORTED BY THE TAXPAYER, INCLUDING
5 DETERMINATIONS RESULTING FROM A FIELD AUDIT, PRIOR TO THE
6 DEPARTMENT'S ISSUANCE OF A DETERMINATION OF THE TAXPAYER'S
7 ACCOUNT.
8 (2) REVIEW ANY TAX REPORT FILED WITH THE DEPARTMENT,
9 DETERMINE THE AMOUNT OF TAX LIABILITY FOR THE TAX PERIOD COVERED
10 BY THE REPORT AND ISSUE TO THE DEPARTMENT FOR CONCURRENCE A
11 DETERMINATION OF TAX LIABILITY FOR THE TAX PERIOD.
12 (3) AUDIT THE PROCEDURES IMPLEMENTED BY THE DEPARTMENT UNDER
13 THIS PART FOR THE DETERMINATION OF TAX LIABILITY OR THE ISSUANCE
14 OF AN ASSESSMENT, REFUND OR CREDIT OR OTHER ACTION TAKEN BY THE
15 DEPARTMENT WITH REGARD TO TAX LIABILITY UNDER THIS PART.
16 (B) UPON THE CONCURRENCE OF THE DEPARTMENT AND THE AUDITOR
17 GENERAL ON THE DETERMINATION OF TAX LIABILITY UNDER SUBSECTION
18 (A)(1) OR (2), THE DEPARTMENT SHALL ISSUE AN ASSESSMENT UNDER
19 THIS ARTICLE, A REFUND OR A CREDIT, UNDER SECTION 1108 OF THE
20 ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS "THE FISCAL
21 CODE," OR TAKE OTHER APPROPRIATE ACTION.
22 (C) IN CASE OF THE FAILURE OF THE DEPARTMENT AND THE
23 DEPARTMENT OF THE AUDITOR GENERAL TO AGREE ON A DETERMINATION OF
24 TAX LIABILITY UNDER SUBSECTION (A)(1) OR (2) WITHIN FOUR MONTHS,
25 THE MATTER SHALL BE SUBMITTED TO THE BOARD OF FINANCE AND
26 REVENUE FOR DECISION. IF THE BOARD FAILS TO REACH A DECISION
27 WITHIN THREE MONTHS, THE DETERMINATION OF THE DEPARTMENT OF
28 REVENUE SHALL AUTOMATICALLY BECOME VALID. THE DECISION OF THE
29 BOARD OF FINANCE AND REVENUE SHALL BE IMPLEMENTED BY THE
30 ISSUANCE OF AN ASSESSMENT UNDER THIS ARTICLE, A REFUND OR A
20050S0993B1893 - 60 -
1 CREDIT, UNDER SECTION 1108 OF "THE FISCAL CODE," OR OTHER
2 APPROPRIATE ACTION.
3 (D) THE SECRETARY OF REVENUE AND THE AUDITOR GENERAL SHALL
4 AGREE ON THE DEVELOPMENT AND IMPLEMENTATION OF PROCEDURES FOR
5 THE AUTOMATED DETERMINATION OF TAXES THAT WILL FACILITATE THE
6 MOST EFFICIENT AND PRODUCTIVE USE OF THE RESOURCES OF THEIR
7 RESPECTIVE AGENCIES REQUIRED TO ADEQUATELY AND REASONABLY ENSURE
8 THE PROPER COLLECTION OF TAXES.
9 (E) NOTHING IN THIS PART SHALL LIMIT ANY POWERS AND DUTIES
10 CONFERRED UPON THE DEPARTMENT OF THE AUDITOR GENERAL BY STATUTE,
11 INCLUDING THE CONSTITUTION OF PENNSYLVANIA AND ARTICLE IV OF
12 "THE FISCAL CODE."
13 SECTION 20. SECTION 408(B) OF THE ACT, AMENDED JUNE 23, 1982
14 (P.L.610, NO.172), IS AMENDED TO READ:
15 SECTION 408. ENFORCEMENT; RULES AND REGULATIONS;
16 INQUISITORIAL POWERS OF THE DEPARTMENT.--* * *
17 (B) THE DEPARTMENT, OR ANY AGENT AUTHORIZED IN WRITING BY
18 IT, IS HEREBY AUTHORIZED TO EXAMINE THE BOOKS, PAPERS, AND
19 RECORDS, AND TO INVESTIGATE THE CHARACTER OF THE BUSINESS OF ANY
20 CORPORATION IN ORDER TO VERIFY THE ACCURACY OF ANY REPORT MADE,
21 OR IF NO REPORT WAS MADE BY SUCH CORPORATION, TO ASCERTAIN AND
22 [SETTLE] ASSESS THE TAX IMPOSED BY THIS ARTICLE. EVERY SUCH
23 CORPORATION IS HEREBY DIRECTED AND REQUIRED TO GIVE TO THE
24 DEPARTMENT, OR ITS DULY AUTHORIZED AGENT, THE MEANS, FACILITIES,
25 AND OPPORTUNITY FOR SUCH EXAMINATIONS AND INVESTIGATIONS, AS ARE
26 HEREBY PROVIDED AND AUTHORIZED. ANY INFORMATION GAINED BY THE
27 DEPARTMENT, AS A RESULT OF ANY RETURNS, INVESTIGATIONS, OR
28 VERIFICATIONS REQUIRED TO BE MADE BY THIS ARTICLE, SHALL BE
29 CONFIDENTIAL, EXCEPT FOR OFFICIAL PURPOSES, AND ANY PERSON
30 DIVULGING SUCH INFORMATION SHALL BE GUILTY OF A MISDEMEANOR,
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1 AND, UPON CONVICTION THEREOF, SHALL BE SENTENCED TO PAY A FINE
2 OF NOT LESS THAN ONE HUNDRED DOLLARS ($100) OR MORE THAN ONE
3 THOUSAND DOLLARS ($1,000) AND COSTS OF PROSECUTION, OR TO
4 UNDERGO IMPRISONMENT FOR NOT MORE THAN SIX MONTHS, OR BOTH.
5 NOTHING IN THIS SECTION SHALL PRECLUDE THE DEPARTMENT FROM
6 PROVIDING PUBLIC INFORMATION, AS DEFINED IN SECTION 403(A)(3),
7 TO OTHER GOVERNMENT UNITS. ANY IDENTIFICATION NUMBER PROVIDED BY
8 THE DEPARTMENT TO ANOTHER GOVERNMENTAL UNIT FOR GOVERNMENTAL
9 PURPOSES SHALL CONTINUE TO BE CONFIDENTIAL INFORMATION.
10 * * *
11 SECTION 21. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
12 SECTION 408.1. COLLECTION OF TAX.--(A) THE DEPARTMENT SHALL
13 COLLECT THE TAXES IMPOSED BY THIS ARTICLE IN THE MANNER PROVIDED
14 BY LAW FOR THE COLLECTION OF TAXES IMPOSED BY THE LAWS OF THIS
15 COMMONWEALTH.
16 (B) THE DEPARTMENT MAY COLLECT ANY TAX:
17 (1) IMMEDIATELY, IN THE CASE OF ANY AMOUNT RELATED TO TAX
18 REPORTED AS DUE THE COMMONWEALTH BY THE TAXPAYER THAT IS NOT
19 PAID BY THE DUE DATE FOR PAYMENT OF THE TAX.
20 (2) AFTER NINETY DAYS FROM THE MAILING DATE OF A NOTICE OF
21 ASSESSMENT, IF NO PETITION FOR REASSESSMENT HAS BEEN FILED.
22 (3) AFTER NINETY DAYS FROM THE MAILING DATE OF THE
23 DEPARTMENT'S DECISION AND ORDER DISPOSING OF A PETITION FOR
24 REASSESSMENT, IF NO PETITION FOR REVIEW HAS BEEN FILED.
25 (4) AFTER THIRTY DAYS FROM THE MAILING DATE OF THE DECISION
26 AND ORDER OF THE BOARD OF FINANCE AND REVENUE UPON A PETITION
27 FOR REVIEW OR FROM THE EXPIRATION OF THE BOARD'S TIME FOR ACTING
28 UPON SUCH PETITION, IF NO DECISION HAS BEEN MADE.
29 (5) IMMEDIATELY, IN ALL CASES OF JUDICIAL SALES,
30 RECEIVERSHIPS, ASSIGNMENTS OR BANKRUPTCIES.
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1 (6) IMMEDIATELY, IN THE CASE OF JEOPARDY ASSESSMENTS AS
2 PROVIDED BY SECTION 407.2.
3 (C) A TAXPAYER SHALL NOT BE PERMITTED TO RAISE ANY DEFENSE
4 TO THE DEPARTMENT'S COLLECTION OF TAX THAT MIGHT HAVE BEEN
5 DETERMINED BY THE DEPARTMENT, THE BOARD OF FINANCE AND REVENUE
6 OR THE COURTS IF THE TAXPAYER HAD PROPERLY PURSUED ITS
7 ADMINISTRATIVE REMEDIES UNDER THIS ARTICLE.
8 SECTION 22. SECTION 1101(E) OF THE ACT, AMENDED DECEMBER 11,
9 1979 (P.L.499, NO.107), IS AMENDED TO READ:
10 SECTION 1101. IMPOSITION OF TAX.--* * *
11 (E) TIME TO FILE REPORTS.--THE TIME FOR FILING ANNUAL
12 REPORTS MAY BE EXTENDED, ESTIMATED [SETTLEMENTS] ASSESSMENTS MAY
13 BE MADE BY THE DEPARTMENT OF REVENUE IF REPORTS ARE NOT FILED,
14 AND THE PENALTIES FOR FAILING TO FILE REPORTS AND PAY THE TAXES
15 IMPOSED UNDER SUBSECTIONS (A) AND (B) SHALL BE AS PRESCRIBED BY
16 THE LAWS DEFINING THE POWERS AND DUTIES OF THE DEPARTMENT OF
17 REVENUE. IN ANY CASE WHERE THE WORKS OF ANY CORPORATION,
18 COMPANY, COPARTNERSHIP, ASSOCIATION, JOINT-STOCK ASSOCIATION,
19 LIMITED PARTNERSHIP, PERSON OR PERSONS ARE OPERATED BY ANOTHER
20 CORPORATION, COMPANY, COPARTNERSHIP, ASSOCIATION, JOINT-STOCK
21 ASSOCIATION, LIMITED PARTNERSHIP, PERSON OR PERSONS, THE TAXES
22 IMPOSED UNDER SUBSECTIONS (A) AND (B) SHALL BE APPORTIONED
23 BETWEEN THE CORPORATIONS, COMPANIES, COPARTNERSHIPS,
24 ASSOCIATIONS, JOINT-STOCK ASSOCIATIONS, LIMITED PARTNERSHIPS,
25 PERSON OR PERSONS IN ACCORDANCE WITH THE TERMS OF THEIR
26 RESPECTIVE LEASES OR AGREEMENTS, BUT FOR THE PAYMENT OF THE SAID
27 TAXES THE COMMONWEALTH SHALL FIRST LOOK TO THE CORPORATION,
28 COMPANY, COPARTNERSHIP, ASSOCIATION, JOINT-STOCK ASSOCIATION,
29 LIMITED PARTNERSHIP, PERSON OR PERSONS OPERATING THE WORKS, AND
30 UPON PAYMENT BY THE SAID COMPANY, CORPORATION, COPARTNERSHIP,
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1 ASSOCIATION, JOINT-STOCK ASSOCIATION, LIMITED PARTNERSHIP,
2 PERSON OR PERSONS OF A TAX UPON THE RECEIPTS, AS HEREIN
3 PROVIDED, DERIVED FROM THE OPERATION THEREOF, NO OTHER
4 CORPORATION, COMPANY, COPARTNERSHIP, ASSOCIATION, JOINT-STOCK
5 ASSOCIATION, LIMITED PARTNERSHIP, PERSON OR PERSONS SHALL BE
6 HELD LIABLE FOR ANY TAX IMPOSED UNDER SUBSECTIONS (A) AND (B)
7 UPON THE PROPORTION OF SAID RECEIPTS RECEIVED BY SAID
8 CORPORATION, COMPANY, COPARTNERSHIP, ASSOCIATION, JOINT-STOCK
9 ASSOCIATION, LIMITED PARTNERSHIP, PERSON OR PERSONS FOR THE USE
10 OF SAID WORKS.
11 * * *
12 SECTION 23. SECTION 1111-C OF THE ACT, AMENDED JULY 2, 1986
13 (P.L.318, NO.77) AND JULY 7, 2005 (P.L.149, NO.40), IS AMENDED
14 TO READ:
15 SECTION 1111-C. [DETERMINATION] ASSESSMENT AND NOTICE OF
16 TAX; REVIEW.--(A) IF ANY PERSON SHALL FAIL TO PAY ANY TAX
17 IMPOSED BY THIS ARTICLE FOR WHICH HE IS LIABLE, THE DEPARTMENT
18 IS HEREBY AUTHORIZED AND EMPOWERED TO MAKE [A DETERMINATION] AN
19 ASSESSMENT OF ADDITIONAL TAX AND INTEREST DUE BY SUCH PERSON
20 BASED UPON ANY INFORMATION WITHIN ITS POSSESSION OR THAT SHALL
21 COME INTO ITS POSSESSION. ALL OF SUCH [DETERMINATIONS]
22 ASSESSMENTS SHALL BE MADE WITHIN THREE YEARS AFTER THE DATE OF
23 THE RECORDING OF THE DOCUMENT, SUBJECT TO THE FOLLOWING:
24 (1) IF THE TAXPAYER UNDERPAYS THE CORRECT AMOUNT OF THE TAX
25 BY TWENTY-FIVE PER CENT OR MORE, THE TAX MAY BE ASSESSED AT ANY
26 TIME WITHIN SIX YEARS AFTER THE DATE OF THE RECORDING OF THE
27 DOCUMENT.
28 (2) IF ANY PART OF AN UNDERPAYMENT OF TAX IS DUE TO FRAUD OR
29 AN UNDISCLOSED, INTENTIONAL DISREGARD OF RULES AND REGULATIONS,
30 THE FULL AMOUNT OF THE TAX MAY BE ASSESSED AT ANY TIME.
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1 (B) PROMPTLY AFTER THE DATE OF SUCH [DETERMINATION]
2 ASSESSMENT, THE DEPARTMENT SHALL SEND BY CERTIFIED MAIL A COPY
3 THEREOF, INCLUDING THE BASIS OF THE ASSESSMENT, TO THE PERSON
4 AGAINST WHOM IT WAS MADE. [WITHIN NINETY DAYS AFTER THE DATE
5 UPON WHICH THE COPY OF ANY SUCH DETERMINATION WAS MAILED, SUCH
6 PERSON MAY FILE WITH THE DEPARTMENT A PETITION FOR
7 REDETERMINATION OF SUCH TAXES. EVERY PETITION FOR
8 REDETERMINATION SHALL STATE SPECIFICALLY THE REASONS WHICH THE
9 PETITIONER BELIEVES ENTITLE HIM TO SUCH REDETERMINATION, AND IT
10 SHALL BE SUPPORTED BY AFFIRMATION THAT IT IS NOT MADE FOR THE
11 PURPOSE OF DELAY AND THAT THE FACTS SET FORTH THEREIN ARE TRUE.
12 IT SHALL BE THE DUTY OF THE DEPARTMENT WITHIN SIX MONTHS AFTER
13 THE DATE OF FILING OF ANY PETITION FOR REDETERMINATION TO
14 DISPOSE OF THE PETITION. NOTICE OF THE ACTION TAKEN UPON ANY
15 PETITION FOR REDETERMINATION SHALL BE GIVEN TO THE PETITIONER
16 PROMPTLY AFTER THE DATE OF REDETERMINATION BY THE DEPARTMENT.
17 (C) ANY PERSON SHALL HAVE THE RIGHT TO REVIEW BY THE BOARD
18 OF FINANCE AND REVENUE AND APPEAL IN THE SAME MANNER AND WITHIN
19 THE SAME TIME AS PROVIDED BY LAW IN THE CASE OF CAPITAL STOCK
20 AND FRANCHISE TAXES IMPOSED UPON CORPORATIONS.] ANY TAXPAYER
21 AGAINST WHOM AN ASSESSMENT IS MADE MAY PETITION THE DEPARTMENT
22 FOR A REASSESSMENT PURSUANT TO ARTICLE XXVII.
23 SECTION 24. SECTION 1112-C OF THE ACT, AMENDED JULY 2, 1986
24 (P.L.318, NO.77), IS AMENDED TO READ:
25 SECTION 1112-C. LIEN.--(A) ANY TAX DETERMINED TO BE DUE BY
26 THE DEPARTMENT AND REMAINING UNPAID AFTER DEMAND FOR THE SAME,
27 AND ALL PENALTIES AND INTEREST THEREON, SHALL BE A LIEN IN FAVOR
28 OF THE COMMONWEALTH UPON THE PROPERTY, BOTH REAL AND PERSONAL,
29 OF SUCH PERSON BUT ONLY AFTER SAID LIEN HAS BEEN ENTERED AND
30 DOCKETED OF RECORD BY THE PROTHONOTARY OF THE COUNTY WHERE SUCH
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1 PROPERTY IS SITUATED.
2 (A.1) AT ANY TIME AFTER IT MAKES [A DETERMINATION] AN
3 ASSESSMENT OF ADDITIONAL TAX, PENALTY OR INTEREST, THE
4 DEPARTMENT MAY TRANSMIT TO THE PROTHONOTARIES OF THE RESPECTIVE
5 COUNTIES CERTIFIED COPIES OF ALL LIENS FOR SUCH TAXES, PENALTIES
6 AND INTEREST, AND IT SHALL BE THE DUTY OF EACH PROTHONOTARY
7 RECEIVING THE LIEN TO ENTER AND DOCKET THE SAME OF RECORD IN HIS
8 OFFICE, WHICH LIEN SHALL BE INDEXED AS JUDGMENTS ARE NOW
9 INDEXED. AFTER THE DEPARTMENT'S [DETERMINATION] ASSESSMENT
10 BECOMES FINAL, A WRIT OF EXECUTION MAY DIRECTLY ISSUE UPON SUCH
11 LIEN WITHOUT THE ISSUANCE AND PROSECUTION TO JUDGMENT OF A WRIT
12 OF SCIRE FACIAS: PROVIDED, THAT NOT LESS THAN TEN DAYS BEFORE
13 ISSUANCE OF ANY EXECUTION ON THE LIEN, NOTICE SHALL BE SENT BY
14 CERTIFIED MAIL TO THE TAXPAYER AT HIS LAST KNOWN POST OFFICE
15 ADDRESS. NO PROTHONOTARY SHALL REQUIRE AS A CONDITION PRECEDENT
16 TO THE ENTRY OF SUCH LIENS, THE PAYMENT OF ANY COSTS INCIDENT
17 THERETO.
18 (B) THE LIEN IMPOSED HEREUNDER SHALL HAVE PRIORITY FROM THE
19 DATE OF ITS RECORDING AS AFORESAID, AND SHALL BE FULLY PAID AND
20 SATISFIED OUT OF THE PROCEEDS OF ANY JUDICIAL SALE OF PROPERTY
21 SUBJECT THERETO BEFORE ANY OTHER OBLIGATION, JUDGMENT, CLAIM,
22 LIEN OR ESTATE TO WHICH SAID PROPERTY MAY SUBSEQUENTLY BECOME
23 SUBJECT, EXCEPT COSTS OF THE SALE AND OF THE WRIT UPON WHICH THE
24 SALE WAS MADE, AND REAL ESTATE TAXES AND MUNICIPAL CLAIMS
25 AGAINST SUCH PROPERTY, BUT SHALL BE SUBORDINATE TO MORTGAGES AND
26 OTHER LIENS EXISTING AND DULY RECORDED OR ENTERED OF RECORD
27 PRIOR TO THE RECORDING OF THE TAX LIEN. IN THE CASE OF A
28 JUDICIAL SALE OF PROPERTY SUBJECT TO A LIEN IMPOSED HEREUNDER
29 UPON A LIEN OR CLAIM OVER WHICH THE LIEN IMPOSED HEREUNDER HAS
30 PRIORITY, AS AFORESAID, SUCH SALE SHALL DISCHARGE THE LIEN
20050S0993B1893 - 66 -
1 IMPOSED HEREUNDER TO THE EXTENT ONLY THAT THE PROCEEDS ARE
2 APPLIED TO ITS PAYMENT, AND SUCH LIEN SHALL CONTINUE IN FULL
3 FORCE AND EFFECT AS TO THE BALANCE REMAINING UNPAID.
4 (C) THE LIEN IMPOSED HEREUNDER SHALL CONTINUE FOR FIVE YEARS
5 FROM THE DATE OF ITS ENTRY OF RECORD, AND MAY BE RENEWED AND
6 CONTINUED IN THE MANNER NOW OR HEREAFTER PROVIDED FOR THE
7 RENEWAL OF JUDGMENTS, OR AS MAY BE PROVIDED IN THE ACT OF APRIL
8 9, 1929 (P.L.343, NO.176), KNOWN AS "THE FISCAL CODE."
9 SECTION 25. SECTION 1113-C OF THE ACT, AMENDED MAY 7, 1997
10 (P.L.85, NO.7), IS AMENDED TO READ:
11 SECTION 1113-C. REFUNDS.--(A) WHENEVER THE AMOUNT DUE UPON
12 [DETERMINATION, REDETERMINATION] ASSESSMENT OR REVIEW IS LESS
13 THAN THE AMOUNT PAID TO THE DEPARTMENT ON ACCOUNT THEREOF, THE
14 DEPARTMENT SHALL ENTER A CREDIT IN THE AMOUNT OF SUCH DIFFERENCE
15 TO THE ACCOUNT OF THE PERSON WHO PAID THE TAX.
16 (B) WHERE THERE HAS BEEN NO [DETERMINATION] ASSESSMENT OF
17 UNPAID TAX, THE DEPARTMENT SHALL HAVE THE POWER, AND ITS DUTY
18 SHALL BE, TO HEAR AND DECIDE ANY APPLICATION FOR REFUND AND,
19 UPON THE ALLOWANCE OF SUCH APPLICATION, TO ENTER A CREDIT IN THE
20 AMOUNT OF THE OVERPAYMENT TO THE ACCOUNT OF THE PERSON WHO PAID
21 THE TAX. SUCH APPLICATION MUST BE FILED UNDER [SECTION 3003.1]
22 ARTICLE XXVII.
23 SECTION 26. SECTION 1502(F) OF THE ACT, AMENDED OCTOBER 14,
24 1988 (P.L.737, NO.106), IS AMENDED TO READ:
25 SECTION 1502. IMPOSITION; REPORT AND PAYMENT OF TAX;
26 EXEMPTIONS.--* * *
27 (F) IF ANY INSTITUTION SHALL NEGLECT OR REFUSE TO MAKE ANY
28 REPORT REQUIRED BY THIS ARTICLE, SUCH INSTITUTION SHALL BE
29 LIABLE TO A PENALTY OF FIVE THOUSAND DOLLARS ($5,000), WHICH
30 SHALL BE [SETTLED] ASSESSED IN THE SAME MANNER AS THE TAX
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1 IMPOSED BY THIS ARTICLE IS [SETTLED] ASSESSED.
2 SECTION 27. SECTION 2005 OF THE ACT, ADDED DECEMBER 22, 1989
3 (P.L.775, NO.110), IS AMENDED TO READ:
4 SECTION 2005. ASSESSMENT BY DEPARTMENT.--(A) IF ANY PERSON
5 SHALL FAIL TO PAY ANY TAX IMPOSED BY THIS ARTICLE FOR WHICH HE
6 IS LIABLE, THE DEPARTMENT IS HEREBY AUTHORIZED AND EMPOWERED TO
7 MAKE AN ASSESSMENT OF ADDITIONAL TAX DUE BY SUCH PERSON, BASED
8 UPON ANY INFORMATION WITHIN ITS POSSESSION, OR THAT SHALL COME
9 INTO ITS POSSESSION.
10 (B) PROMPTLY AFTER THE DATE OF SUCH ASSESSMENT, THE
11 DEPARTMENT SHALL SEND BY [REGISTERED] CERTIFIED MAIL A COPY OF
12 THE ASSESSMENT, INCLUDING THE BASIS OF THE ASSESSMENT, TO THE
13 PERSON AGAINST WHOM IT WAS MADE. WITHIN NINETY DAYS AFTER THE
14 DATE UPON WHICH THE COPY OF ANY SUCH ASSESSMENT WAS MAILED, SUCH
15 PERSON MAY FILE WITH THE DEPARTMENT A PETITION FOR REASSESSMENT
16 OF SUCH TAXES. EVERY PETITION FOR REASSESSMENT SHALL STATE
17 SPECIFICALLY THE REASONS WHICH THE PETITIONER BELIEVES ENTITLE
18 HIM TO SUCH REASSESSMENT, AND IT SHALL BE SUPPORTED BY AFFIDAVIT
19 THAT IT IS NOT MADE FOR THE PURPOSE OF DELAY, AND THAT THE FACTS
20 SET FORTH THEREIN ARE TRUE. IT SHALL BE THE DUTY OF THE
21 DEPARTMENT, WITHIN SIX MONTHS AFTER THE DATE OF ANY ASSESSMENT,
22 TO DISPOSE OF ANY PETITION FOR REASSESSMENT. NOTICE OF THE
23 ACTION TAKEN UPON ANY PETITION FOR REASSESSMENT SHALL BE GIVEN
24 TO THE PETITIONER PROMPTLY AFTER THE DATE OF REASSESSMENT BY THE
25 DEPARTMENT.
26 (C) WITHIN [SIXTY] NINETY DAYS AFTER THE DATE OF MAILING OF
27 NOTICE BY THE DEPARTMENT OF THE ACTION TAKEN ON ANY PETITION FOR
28 REASSESSMENT FILED WITH IT, THE PERSON AGAINST WHOM SUCH
29 ASSESSMENT WAS MADE, MAY, BY PETITION, REQUEST THE BOARD OF
30 FINANCE AND REVENUE TO REVIEW SUCH ACTION. EVERY PETITION FOR
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1 REVIEW FILED HEREUNDER SHALL STATE SPECIFICALLY THE REASON UPON
2 WHICH THE PETITIONER RELIES, OR SHALL INCORPORATE BY REFERENCE
3 THE PETITION FOR REASSESSMENT IN WHICH SUCH REASONS SHALL HAVE
4 BEEN STATED. THE PETITION SHALL BE SUPPORTED BY AFFIDAVIT THAT
5 IT IS NOT MADE FOR THE PURPOSE OF DELAY, AND THAT THE FACTS
6 THEREIN SET FORTH ARE TRUE. IF THE PETITIONER BE A CORPORATION,
7 JOINT-STOCK ASSOCIATION OR LIMITED PARTNERSHIP, THE AFFIDAVIT
8 MUST BE MADE BY ONE OF THE PRINCIPAL OFFICERS THEREOF. A
9 PETITION FOR REVIEW MAY BE AMENDED BY THE PETITIONER AT ANY TIME
10 PRIOR TO THE HEARING, AS HEREINAFTER PROVIDED. THE BOARD OF
11 FINANCE AND REVENUE SHALL ACT FINALLY IN DISPOSITION OF SUCH
12 PETITIONS FILED WITH IT WITHIN SIX MONTHS AFTER THEY HAVE BEEN
13 RECEIVED, AND, IN THE EVENT OF THE FAILURE OF SAID BOARD TO
14 DISPOSE OF ANY SUCH PETITION WITHIN SIX MONTHS, THE ACTION TAKEN
15 BY THE DEPARTMENT UPON THE PETITION FOR REASSESSMENT SHALL BE
16 DEEMED SUSTAINED. THE BOARD OF FINANCE AND REVENUE MAY SUSTAIN
17 THE ACTION TAKEN ON THE PETITION FOR REASSESSMENT, OR IT MAY
18 REASSESS THE TAX DUE UPON SUCH BASIS AS IT SHALL DEEM ACCORDING
19 TO LAW AND EQUITY. NOTICE OF THE ACTION OF THE BOARD OF FINANCE
20 AND REVENUE SHALL BE GIVEN BY MAIL, OR OTHERWISE, TO THE
21 DEPARTMENT AND TO THE PETITIONER.
22 (D) IN ALL CASES OF PETITIONS FOR REASSESSMENT, REVIEW OR
23 APPEAL, THE BURDEN OF PROOF SHALL BE UPON THE PETITIONER OR
24 APPELLANT, AS THE CASE MAY BE.
25 (E) WHENEVER ANY ASSESSMENT OF ADDITIONAL TAX IS NOT PAID
26 WITHIN NINETY DAYS AFTER THE DATE OF THE ASSESSMENT, IF NO
27 PETITION FOR REASSESSMENT HAS BEEN FILED, OR WITHIN [SIXTY]
28 NINETY DAYS FROM THE DATE OF REASSESSMENT, IF NO PETITION FOR
29 REVIEW HAS BEEN FILED, OR WITHIN [SIXTY] THIRTY DAYS FROM THE
30 DATE OF THE DECISION OF THE BOARD OF FINANCE AND REVENUE UPON A
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1 PETITION FOR REVIEW, OR THE EXPIRATION OF THE BOARD'S TIME FOR
2 ACTING UPON SUCH PETITION, IF NO APPEAL HAS BEEN MADE, AND IN
3 ALL CASES OF JUDICIAL SALES, RECEIVERSHIPS, ASSIGNMENTS OR
4 BANKRUPTCIES, THE DEPARTMENT MAY CALL UPON THE OFFICE OF
5 ATTORNEY GENERAL TO COLLECT SUCH ASSESSMENT. IN SUCH EVENT, IN A
6 PROCEEDING FOR THE COLLECTION OF SUCH TAXES, THE PERSON AGAINST
7 WHOM THEY WERE ASSESSED SHALL NOT BE PERMITTED TO SET UP ANY
8 GROUND OF DEFENSE THAT MIGHT HAVE BEEN DETERMINED BY THE
9 DEPARTMENT, THE BOARD OF FINANCE AND REVENUE OR THE COURTS. THE
10 DEPARTMENT MAY ALSO CERTIFY TO THE LIQUOR CONTROL BOARD, FOR
11 SUCH ACTION AS THE BOARD MAY DEEM PROPER, THE FACT THAT ANY
12 PERSON HAS FAILED TO PAY OR DULY APPEAL FROM SUCH ASSESSMENT OF
13 ADDITIONAL TAX. THE DEPARTMENT MAY ALSO PROVIDE, ADOPT,
14 PROMULGATE AND ENFORCE SUCH RULES AND REGULATIONS, AS MAY BE
15 APPROPRIATE, TO PREVENT FURTHER SHIPMENT OR TRANSPORTATION OF
16 MALT OR BREWED BEVERAGES INTO THIS COMMONWEALTH BY ANY PERSON
17 AGAINST WHOM SUCH UNPAID ASSESSMENT SHALL HAVE BEEN MADE.
18 SECTION 28. THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
19 ARTICLE XXVII
20 PROCEDURE AND ADMINISTRATION
21 SECTION 2701. DEFINITIONS.
22 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
23 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
24 CONTEXT CLEARLY INDICATES OTHERWISE:
25 "BOARD." THE BOARD OF FINANCE AND REVENUE.
26 "DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.
27 "RETURN." THE TERM INCLUDES A TAX REPORT.
28 "SECRETARY." THE SECRETARY OF REVENUE OF THE COMMONWEALTH.
29 SECTION 2702. PETITION FOR REASSESSMENT.
30 (A) GENERAL RULE.--A TAXPAYER MAY FILE A PETITION FOR
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1 REASSESSMENT WITH THE DEPARTMENT WITHIN 90 DAYS AFTER THE
2 MAILING DATE OF THE NOTICE OF ASSESSMENT.
3 (B) SPECIAL RULE FOR SHARES TAXES.--NOTWITHSTANDING ANY
4 PROVISION OF LAW TO THE CONTRARY, SECTION 1104.1 OF THE ACT OF
5 APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS THE FISCAL CODE, SHALL
6 CONSTITUTE THE EXCLUSIVE METHOD BY WHICH AN APPEAL FROM THE
7 ASSESSMENT OF THE TAX IMPOSED BY ARTICLE VII OR VIII MAY BE
8 MADE.
9 (C) APPLICATION TO INHERITANCE AND ESTATE TAXES.--THIS
10 SECTION SHALL NOT APPLY TO THE TAXES IMPOSED BY ARTICLE XXI.
11 PART XI OF ARTICLE XXI SHALL PROVIDE THE EXCLUSIVE PROCEDURE FOR
12 PROTESTING THE APPRAISEMENT AND ASSESSMENT OF TAXES IMPOSED BY
13 ARTICLE XXI.
14 SECTION 2703. PETITION PROCEDURE.
15 (A) CONTENT OF PETITION.--
16 (1) A PETITION FOR REASSESSMENT SHALL STATE:
17 (I) THE TAX TYPE AND TAX PERIODS INCLUDED WITHIN THE
18 PETITION.
19 (II) THE AMOUNT OF THE TAX THAT THE TAXPAYER CLAIMS
20 TO HAVE BEEN ERRONEOUSLY ASSESSED.
21 (III) THE BASIS UPON WHICH THE TAXPAYER CLAIMS THAT
22 THE ASSESSMENT IS ERRONEOUS.
23 (2) A PETITION FOR REFUND SHALL STATE:
24 (I) THE TAX TYPE AND TAX PERIODS INCLUDED WITHIN THE
25 PETITION.
26 (II) THE AMOUNT OF THE TAX THAT THE TAXPAYER CLAIMS
27 TO HAVE BEEN OVERPAID.
28 (III) THE BASIS OF THE TAXPAYER'S CLAIM FOR REFUND.
29 (3) THE PETITION SHALL BE SUPPORTED BY AN AFFIDAVIT BY
30 THE PETITIONER OR THE PETITIONER'S AUTHORIZED REPRESENTATIVE
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1 THAT THE PETITION IS NOT MADE FOR THE PURPOSE OF DELAY AND
2 THAT THE FACTS SET FORTH IN THE PETITION ARE TRUE.
3 (B) REQUEST FOR HEARING.--UPON WRITTEN REQUEST OF THE
4 PETITIONER OR WHEN DEEMED NECESSARY BY THE DEPARTMENT, THE
5 DEPARTMENT SHALL SCHEDULE A HEARING TO REVIEW A PETITION. THE
6 PETITIONER SHALL BE NOTIFIED BY THE DEPARTMENT OF THE DATE, TIME
7 AND PLACE WHERE THE HEARING WILL BE HELD.
8 (C) DECISION AND ORDER.--THE DEPARTMENT SHALL ISSUE A
9 DECISION AND ORDER DISPOSING OF A PETITION ON SUCH BASIS AS IT
10 DEEMS TO BE IN ACCORDANCE WITH LAW. THE DEPARTMENT SHALL PROVIDE
11 A WRITTEN EXPLANATION OF THE BASIS FOR ANY DENIAL OF RELIEF.
12 (D) TIME LIMIT FOR DECISION AND ORDER.--THE DEPARTMENT SHALL
13 ISSUE A DECISION AND ORDER DISPOSING OF A PETITION WITHIN SIX
14 MONTHS AFTER RECEIPT OF THE PETITION. THE PETITIONER AND THE
15 DEPARTMENT MAY AGREE TO EXTEND THE TIME PERIOD FOR THE
16 DEPARTMENT TO DISPOSE OF THE PETITION FOR ONE ADDITIONAL SIX-
17 MONTH PERIOD. NOTICE OF THE DEPARTMENT'S DECISION AND ORDER
18 DISPOSING OF THE PETITION SHALL BE ISSUED TO THE PETITIONER.
19 (E) EXCEPTION TO TIME LIMIT FOR DECISION AND ORDER.--IF AT
20 THE TIME OF THE FILING OF A PETITION PROCEEDINGS ARE PENDING IN
21 A COURT OF COMPETENT JURISDICTION WHEREIN ANY CLAIM MADE IN THE
22 PETITION MAY BE ESTABLISHED, THE DEPARTMENT, UPON THE WRITTEN
23 REQUEST OF THE PETITIONER, MAY DEFER CONSIDERATION OF THE
24 PETITION UNTIL THE FINAL JUDGMENT DETERMINING THE QUESTION OR
25 QUESTIONS INVOLVED IN THE PETITION HAS BEEN DECIDED. IF
26 CONSIDERATION OF THE PETITION IS DEFERRED, THE DEPARTMENT SHALL
27 ISSUE A DECISION AND ORDER DISPOSING OF THE PETITION WITHIN SIX
28 MONTHS AFTER THE FINAL JUDGMENT.
29 (F) FAILURE OF DEPARTMENT TO TAKE ACTION.--THE FAILURE OF
30 THE DEPARTMENT TO DISPOSE OF THE PETITION WITHIN THE TIME PERIOD
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1 PROVIDED FOR BY SUBSECTION (D) OR (E) SHALL ACT AS A DENIAL OF
2 THE PETITION. NOTICE OF THE DEPARTMENT'S FAILURE TO TAKE ACTION
3 AND THE DENIAL OF THE PETITION SHALL BE MAILED TO THE
4 PETITIONER.
5 SECTION 2704. REVIEW BY BOARD.
6 (A) PETITION FOR REVIEW OF A DECISION AND ORDER.--WITHIN 90
7 DAYS AFTER THE MAILING DATE OF THE DEPARTMENT'S NOTICE OF
8 DECISION AND ORDER ON A PETITION FILED WITH IT, A TAXPAYER MAY
9 PETITION THE BOARD TO REVIEW THE DECISION AND ORDER OF THE
10 DEPARTMENT.
11 (B) PETITION FOR REVIEW OF DENIAL BY DEPARTMENT'S FAILURE TO
12 ACT.--A PETITION FOR REVIEW MAY BE FILED WITH THE BOARD WITHIN
13 90 DAYS AFTER THE MAILING DATE OF THE DEPARTMENT'S NOTICE TO THE
14 PETITIONER OF ITS FAILURE TO DISPOSE OF THE PETITION WITHIN THE
15 TIME PERIODS PRESCRIBED BY SECTION 2703(D) OR (E).
16 (C) CONTENTS OF PETITION.--
17 (1) A PETITION FOR REVIEW OF THE DEPARTMENT'S DECISION
18 AND ORDER ON A PETITION FOR REASSESSMENT SHALL STATE ALL OF
19 THE FOLLOWING:
20 (I) THE TAX TYPE AND TAX PERIODS INCLUDED WITHIN THE
21 PETITION.
22 (II) THE AMOUNT OF THE TAX THAT THE TAXPAYER CLAIMS
23 TO HAVE BEEN ERRONEOUSLY ASSESSED.
24 (III) THE BASIS UPON WHICH THE TAXPAYER CLAIMS THAT
25 THE ASSESSMENT IS ERRONEOUS.
26 (2) A PETITION FOR REVIEW OF THE DEPARTMENT'S DECISION
27 AND ORDER ON A PETITION FOR REFUND SHALL STATE ALL OF THE
28 FOLLOWING:
29 (I) THE TAX TYPE AND TAX PERIODS INCLUDED WITHIN THE
30 PETITION.
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1 (II) THE AMOUNT OF THE TAX THAT THE TAXPAYER CLAIMS
2 TO HAVE BEEN OVERPAID.
3 (III) THE BASIS OF THE TAXPAYER'S CLAIMS FOR REFUND.
4 (3) A PETITION MAY SATISFY THE REQUIREMENTS OF
5 PARAGRAPHS (1)(III) OR (2)(III) BY INCORPORATING BY REFERENCE
6 THE PETITION FILED WITH THE DEPARTMENT IN WHICH THE BASIS OF
7 THE TAXPAYER'S CLAIM IS SPECIFICALLY STATED.
8 (D) AFFIDAVIT.--A PETITION SHALL BE SUPPORTED BY AN
9 AFFIDAVIT BY THE PETITIONER OR THE PETITIONER'S AUTHORIZED
10 REPRESENTATIVE THAT THE PETITION IS NOT MADE FOR THE PURPOSE OF
11 DELAY AND THAT THE FACTS SET FORTH IN THE PETITION ARE TRUE.
12 (E) DECISION AND ORDER.--THE BOARD SHALL ISSUE A DECISION
13 AND ORDER DISPOSING OF A PETITION ON ANY BASIS AS IT DEEMS TO BE
14 IN ACCORDANCE WITH LAW AND EQUITY.
15 (F) TIME LIMIT FOR DECISION AND ORDER.--
16 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THE BOARD SHALL
17 ISSUE A DECISION AND ORDER DISPOSING OF A PETITION WITHIN SIX
18 MONTHS AFTER RECEIPT OF THE PETITION.
19 (2) IF AT THE TIME OF THE FILING OF A PETITION
20 PROCEEDINGS ARE PENDING IN A COURT OF COMPETENT JURISDICTION
21 IN WHICH ANY CLAIM MADE IN THE PETITION MAY BE ESTABLISHED,
22 THE BOARD, UPON THE WRITTEN REQUEST OF THE PETITIONER, MAY
23 DEFER CONSIDERATION OF THE PETITION UNTIL THE FINAL JUDGMENT
24 DETERMINING THE QUESTION OR QUESTIONS INVOLVED IN THE
25 PETITION HAS BEEN DECIDED. IF CONSIDERATION OF THE PETITION
26 IS DEFERRED, THE BOARD SHALL ISSUE A DECISION AND ORDER
27 DISPOSING OF THE PETITION WITHIN SIX MONTHS AFTER THE FINAL
28 JUDGMENT.
29 (G) FAILURE OF BOARD TO TAKE ACTION.--THE FAILURE OF THE
30 BOARD TO DISPOSE OF THE PETITION WITHIN THE TIME PERIOD PROVIDED
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1 FOR BY SUBSECTION (F) SHALL ACT AS A DENIAL OF THE PETITION.
2 NOTICE OF THE BOARD'S FAILURE TO TAKE ACTION AND THE DENIAL OF
3 THE PETITION SHALL BE ISSUED TO THE PETITIONER.
4 SECTION 2705. BURDEN OF PROOF.
5 EXCEPT AS OTHERWISE PROVIDED BY THIS ACT, IN ALL CASES OF
6 PETITIONS FILED PURSUANT TO THIS ARTICLE, THE BURDEN OF PROOF
7 SHALL BE UPON THE PETITIONER OR APPELLANT, AS THE CASE MAY BE.
8 SECTION 2706. ABATEMENT OF ADDITIONS OR PENALTIES.
9 UPON THE FILING OF A PETITION FOR REASSESSMENT OR A PETITION
10 FOR REFUND AS PROVIDED UNDER THIS ACT BY A TAXPAYER, ADDITIONS
11 OR PENALTIES IMPOSED UPON THE TAXPAYER BY THE LAWS OF THIS
12 COMMONWEALTH MAY BE WAIVED OR ABATED, IN WHOLE OR IN PART, WHERE
13 THE PETITIONER HAS ESTABLISHED THAT HE HAS ACTED IN GOOD FAITH,
14 WITHOUT NEGLIGENCE AND WITH NO INTENT TO DEFRAUD.
15 SECTION 29. SECTIONS 3003.2(I) OF THE ACT, AMENDED JUNE 29,
16 2002 (P.L.559, NO.89), IS AMENDED AND SUBSECTION (B) IS AMENDED
17 BY ADDING A PARAGRAPH TO READ:
18 SECTION 3003.2. ESTIMATED TAX.--* * *
19 (B) THE FOLLOWING WORDS, TERMS AND PHRASES WHEN USED IN THIS
20 SECTION AND SECTION 3003.3 SHALL HAVE THE FOLLOWING MEANINGS
21 ASCRIBED TO THEM:
22 (6) "TOTAL TAX." THE TOTAL TAX LIABILITY OF THE TAXPAYER
23 FOR THE TAX PERIOD INCLUDING THE TAX REPORTED BY THE TAXPAYER
24 AND SETTLED, RESETTLED OR ASSESSED BY THE DEPARTMENT.
25 * * *
26 (I) WHENEVER THE AMOUNT SHOWN AS DUE ON THE ANNUAL REPORT,
27 INCLUDING ANY [SETTLEMENT OF THE ANNUAL REPORT] ASSESSMENT OF
28 THE TAX PERIOD, IS LESS THAN THE AMOUNT PAID TO THE DEPARTMENT
29 ON ACCOUNT OF THAT AMOUNT UNDER THIS ARTICLE, THE DEPARTMENT
30 SHALL ENTER A CREDIT IN THE AMOUNT OF THE DIFFERENCE TO THE
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1 ACCOUNT OF THE TAXPAYER, WHICH CREDIT SHALL BE IMMEDIATELY
2 SUBJECT TO APPLICATION, ASSIGNMENT OR REFUND, AT THE REQUEST OF
3 THE TAXPAYER UNDER SECTION 1108 OF THE ACT OF APRIL 9, 1929
4 (P.L.343, NO.176), KNOWN AS "THE FISCAL CODE," OR AT THE
5 INITIATIVE OF THE DEPARTMENT. IF THE APPLICATION, ASSIGNMENT OR
6 REFUND OF CREDIT UNDER THIS SUBSECTION RESULTS IN AN
7 UNDERPAYMENT OF THE TAX DUE UPON [SETTLEMENT OR RESETTLEMENT]
8 ASSESSMENT, INTEREST SHALL BE CALCULATED ON THE AMOUNT OF THE
9 UNDERPAYMENT FROM THE DATE CREDIT WAS APPLIED, ASSIGNED OR
10 REFUNDED.
11 SECTION 30. SECTION 3003.3(B) AND (D) OF THE ACT, AMENDED
12 MAY 7, 1997 (P.L.85, NO.7) AND DECEMBER 23, 2003 (P.L.250,
13 NO.46), ARE AMENDED TO READ:
14 SECTION 3003.3. UNDERPAYMENT OF ESTIMATED TAX.--* * *
15 (B) (1) FOR PURPOSES OF THIS SECTION, THE AMOUNT OF THE
16 UNDERPAYMENT, IF ANY, SHALL BE THE EXCESS OF:
17 (I) THE CUMULATIVE AMOUNT OF INSTALLMENTS WHICH WOULD BE
18 REQUIRED TO BE PAID AS OF EACH INSTALLMENT DATE AS DEFINED IN
19 SECTION 3003.2(C) IF THE ESTIMATED TAX WERE EQUAL TO NINETY PER
20 CENT OF THE TAX SHOWN ON THE REPORT FOR THE TAXABLE YEAR, EXCEPT
21 THAT, IF THE [SETTLED TAX OR, IF THE TAX IS RESETTLED, THE
22 RESETTLED] TOTAL TAX EXCEEDS THE TAX SHOWN ON THE REPORT BY TEN
23 PER CENT OR MORE, THE AMOUNT OF THE UNDERPAYMENT SHALL BE BASED
24 ON NINETY PER CENT OF THE AMOUNT OF [SUCH SETTLED OR RESETTLED]
25 THE TOTAL TAX; OVER
26 (II) THE CUMULATIVE AMOUNT OF INSTALLMENTS PAID ON OR BEFORE
27 THE LAST DATE PRESCRIBED FOR PAYMENT.
28 (2) IF THE [SETTLED OR RESETTLED TAX IS USED IN CALCULATING
29 THE AMOUNT OF UNDERPAYMENT, THE AMOUNT OF TAX AS SETTLED OR
30 RESETTLED SHALL BE UTILIZED IN DETERMINING] TOTAL TAX IS
20050S0993B1893 - 76 -
1 REVISED, THE AMOUNT OF UNDERPAYMENT SHALL BE CALCULATED WITHOUT
2 THE NECESSITY OF THE FILING OF ANY PETITION BY THE DEPARTMENT OR
3 BY THE TAXPAYER.
4 * * *
5 (D) NOTWITHSTANDING THE PROVISIONS OF THE PRECEDING
6 SUBSECTIONS, INTEREST WITH RESPECT TO ANY UNDERPAYMENT OF ANY
7 INSTALLMENT OF ESTIMATED TAX SHALL NOT BE IMPOSED IF THE TOTAL
8 AMOUNT OF ALL PAYMENTS OF ESTIMATED TAX MADE ON OR BEFORE THE
9 LAST DATE PRESCRIBED FOR THE PAYMENT OF SUCH INSTALLMENT EQUALS
10 OR EXCEEDS THE AMOUNT WHICH WOULD HAVE BEEN REQUIRED TO BE PAID
11 ON OR BEFORE SUCH DATE IF THE ESTIMATED TAX WERE AN AMOUNT EQUAL
12 TO THE TAX COMPUTED AT THE RATES APPLICABLE TO THE TAXABLE YEAR,
13 INCLUDING ANY MINIMUM TAX IMPOSED, BUT OTHERWISE ON THE BASIS OF
14 THE FACTS SHOWN ON THE REPORT OF THE TAXPAYER FOR, AND THE LAW
15 APPLICABLE TO, THE SAFE HARBOR BASE YEAR, ADJUSTED FOR ANY
16 CHANGES TO SECTIONS 401, 601, 602 AND 1101 ENACTED FOR THE
17 TAXABLE YEAR, IF A REPORT SHOWING A LIABILITY FOR TAX WAS FILED
18 BY THE TAXPAYER FOR THE SAFE HARBOR BASE YEAR. IF THE TOTAL
19 AMOUNT OF ALL PAYMENTS OF ESTIMATED TAX MADE ON OR BEFORE THE
20 LAST DATE PRESCRIBED FOR THE PAYMENT OF SUCH INSTALLMENT DOES
21 NOT EQUAL OR EXCEED THE AMOUNT REQUIRED TO BE PAID PER THE
22 PRECEDING SENTENCE, BUT SUCH AMOUNT IS PAID AFTER THE DATE THE
23 INSTALLMENT WAS REQUIRED TO BE PAID, THEN THE PERIOD OF
24 UNDERPAYMENT SHALL RUN FROM THE DATE THE INSTALLMENT WAS
25 REQUIRED TO BE PAID TO THE DATE THE AMOUNT REQUIRED TO BE PAID
26 PER THE PRECEDING SENTENCE IS PAID. PROVIDED, THAT IF THE
27 [SETTLED] TOTAL TAX FOR THE SAFE HARBOR BASE YEAR EXCEEDS THE
28 TAX SHOWN ON SUCH REPORT BY TEN PER CENT OR MORE, THE [SETTLED]
29 TOTAL TAX ADJUSTED TO REFLECT THE CURRENT TAX RATE SHALL BE USED
30 FOR PURPOSES OF THIS SUBSECTION.[, EXCEPT THAT, IF THE SETTLED
20050S0993B1893 - 77 -
1 TAX IS SUBSEQUENTLY RESETTLED, THE AMOUNT OF TAX AS RESETTLED
2 SHALL BE UTILIZED IN THE APPLICATION OF THIS SUBSECTION WITHOUT
3 THE NECESSITY OF THE FILING OF ANY PETITION BY THE DEPARTMENT OR
4 BY THE TAXPAYER.] IN THE EVENT THAT THE [SETTLED OR RESETTLED]
5 TOTAL TAX FOR THE SAFE HARBOR BASE YEAR EXCEEDS THE TAX SHOWN ON
6 THE REPORT BY TEN PER CENT OR MORE, INTEREST RESULTING FROM THE
7 UTILIZATION OF SUCH [SETTLED OR RESETTLED] TOTAL TAX IN THE
8 APPLICATION OF THE PROVISIONS OF THIS SUBSECTION SHALL NOT BE
9 IMPOSED IF, WITHIN FORTY-FIVE DAYS OF THE MAILING DATE OF [SUCH
10 SETTLEMENT OR RESETTLEMENT] EACH ASSESSMENT, PAYMENTS ARE MADE
11 SUCH THAT THE TOTAL AMOUNT OF ALL PAYMENTS OF ESTIMATED TAX
12 EQUALS OR EXCEEDS THE AMOUNT WHICH WOULD HAVE BEEN REQUIRED TO
13 BE PAID ON OR BEFORE SUCH DATE IF THE ESTIMATED TAX WERE AN
14 AMOUNT EQUAL TO [SUCH SETTLED OR RESETTLED] THE TOTAL TAX
15 ADJUSTED TO REFLECT THE CURRENT TAX RATE. IN ANY CASE IN WHICH
16 THE TAXABLE YEAR FOR WHICH AN UNDERPAYMENT OF ESTIMATED TAX MAY
17 EXIST IS A SHORT TAXABLE YEAR, IN DETERMINING THE TAX SHOWN ON
18 THE REPORT OR THE [SETTLED OR RESETTLED] TOTAL TAX FOR THE SAFE
19 HARBOR BASE YEAR, THE TAX WILL BE REDUCED BY MULTIPLYING IT BY
20 THE RATIO OF THE NUMBER OF INSTALLMENT PAYMENTS MADE IN THE
21 SHORT TAXABLE YEAR TO THE NUMBER OF INSTALLMENT PAYMENTS
22 REQUIRED TO BE MADE FOR THE FULL TAXABLE YEAR.
23 SECTION 31. SECTIONS 3003.5 AND 3003.6 OF THE ACT, ADDED
24 JUNE 16, 1994 (P.L.279, NO.48), ARE AMENDED TO READ:
25 SECTION 3003.5. REFUND PETITIONS.--(A) EFFECTIVE JANUARY 1,
26 1995, PETITIONS FOR REFUND OF TAXES, PENALTIES, FINES, ADDITIONS
27 AND OTHER MONEYS COLLECTED BY THE DEPARTMENT OF REVENUE EXCEPT
28 THOSE CLAIMS FOR REFUNDS OF LIQUID FUELS TAXES PAID BY POLITICAL
29 SUBDIVISIONS, FARMERS, NONPUBLIC SCHOOLS NOT OPERATED FOR
30 PROFIT, VOLUNTEER FIRE COMPANIES, VOLUNTEER RESCUE SQUADS,
20050S0993B1893 - 78 -
1 VOLUNTEER AMBULANCE SERVICES, USERS OF LIQUID FUEL IN PROPELLER-
2 DRIVEN AIRCRAFT OR ENGINES AND AGENCIES OF THE FEDERAL
3 GOVERNMENT AND OF THE COMMONWEALTH AND THE BOAT FUND OF THE
4 PENNSYLVANIA FISH AND BOAT COMMISSION SHALL BE HEARD AND
5 DETERMINED BY THE DEPARTMENT OF REVENUE AS PROVIDED IN THE ACT
6 OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS "THE FISCAL CODE,"
7 AND THE DEPARTMENT OF REVENUE SHALL THEREAFTER HAVE, EXCEPT AS
8 SET FORTH IN ARTICLE XXVII, THE POWERS AND DUTIES FORMERLY
9 GRANTED TO THE BOARD OF FINANCE AND REVENUE WITH RESPECT TO SUCH
10 REFUNDS. ALSO EFFECTIVE JANUARY 1, 1995, THE BOARD OF FINANCE
11 AND REVENUE SHALL NO LONGER HAVE THE POWER AND DUTY TO HEAR AND
12 DETERMINE ANY PETITION FOR REFUND OF TAXES, PENALTIES, FINES,
13 ADDITIONS OR OTHER MONEYS COLLECTED BY THE DEPARTMENT OF
14 REVENUE, EXCEPT THAT THEREAFTER THE BOARD MAY EITHER HEAR AND
15 DETERMINE ANY SUCH PETITIONS FILED WITH IT PRIOR TO JANUARY 1,
16 1995, OR IT MAY TRANSFER SUCH PETITIONS TO THE DEPARTMENT OF
17 REVENUE.
18 (B) APPEALS.--THE DECISION OF THE DEPARTMENT OF REVENUE ON A
19 PETITION FOR REFUND UNDER THIS SECTION MAY, IN THE FIRST
20 INSTANCE, BE APPEALED TO THE BOARD OF FINANCE AND REVENUE IN THE
21 MANNER PROVIDED BY SECTION 1103 OF "THE FISCAL CODE" EXCEPT THAT
22 THE BOARD OF FINANCE AND REVENUE SHALL ACT FINALLY IN
23 DISPOSITION OF SUCH PETITIONS WITHIN TWELVE MONTHS AFTER THEY
24 HAVE BEEN RECEIVED.
25 SECTION 3003.6. TIMELY FILING.--A TAXPAYER SHALL BE DEEMED
26 TO HAVE TIMELY FILED [A PETITION FOR RESETTLEMENT,] A PETITION
27 FOR REASSESSMENT[, A PETITION FOR REDETERMINATION] OR ANY OTHER
28 PROTEST RELATING TO THE ASSESSMENT OF TAX OR ANY OTHER MATTER
29 RELATING TO ANY TAX IMPOSED BY THIS ACT IF THE LETTER
30 TRANSMITTING THE PETITION IS RECEIVED BY THE DEPARTMENT OF
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1 REVENUE OR IS POSTMARKED BY THE UNITED STATES POSTAL SERVICE ON
2 OR PRIOR TO THE FINAL DAY ON WHICH THE PETITION IS REQUIRED TO
3 BE FILED.
4 SECTION 32. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
5 SECTION 3003.18. ASSESSMENTS TO BE MADE BY DEPARTMENT.--(A)
6 PARTS IV, V, VI AND VII OF ARTICLE IV SHALL APPLY TO ALL OF THE
7 FOLLOWING:
8 (1) THE TAX IMPOSED BY SECTION 17 OF THE ACT OF JUNE 22,
9 1935 (P.L.414, NO.182), KNOWN AS THE "STATE PERSONAL PROPERTY
10 TAX ACT."
11 (2) THE TAX IMPOSED BY THE ACT OF MAY 23, 1945 (P.L.893,
12 NO.360), KNOWN AS THE "CO-OPERATIVE AGRICULTURAL ASSOCIATION
13 CORPORATE NET INCOME TAX ACT." THE REFERENCE TO PETITION FOR
14 RESETTLEMENT IN SECTION 4 OF THE "CO-OPERATIVE AGRICULTURAL
15 ASSOCIATION CORPORATE NET INCOME TAX ACT" SHALL BE INTERPRETED
16 AS A PETITION FOR REASSESSMENT.
17 (3) THE STATE ADMISSIONS TAX AND THE PARI-MUTUEL WAGERING
18 TAX IMPOSED BY SECTIONS 208 AND 222 OF THE ACT OF DECEMBER 17,
19 1981 (P.L.435, NO.135), KNOWN AS THE "RACE HORSE INDUSTRY REFORM
20 ACT."
21 (4) ALL TAXES, FEES, ADDITIONS, BONUSES, COSTS, PENALTIES OR
22 CHARGES COLLECTED BY THE DEPARTMENT EITHER:
23 (I) SUBJECT TO SETTLEMENT OR DETERMINATION BY THE DEPARTMENT
24 PRIOR TO THE EFFECTIVE DATE OF THIS SECTION; OR
25 (II) FOR WHICH NO OTHER METHOD FOR THE ESTABLISHMENT OF THE
26 UNPAID OR UNREPORTED LIABILITY TO BE COLLECTED BY THE DEPARTMENT
27 IS PROVIDED BY LAW.
28 (B) THE POWERS CONFERRED UPON THE DEPARTMENT BY THIS SECTION
29 SHALL BE IN ADDITION TO, BUT NOT EXCLUSIVE OF, ANY POWERS
30 CONFERRED UPON THE DEPARTMENT BY LAW BEFORE OR AFTER THE
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1 EFFECTIVE DATE OF THIS SECTION.
2 (C) THIS SECTION SHALL NOT APPLY TO ANY OF THE FOLLOWING:
3 (1) THE PROCEDURE FOR COLLECTION OF MONEYS DUE THE
4 COMMONWEALTH BY COUNTY OR CITY OFFICERS AS PROVIDED BY ARTICLE
5 IX OF THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS "THE
6 FISCAL CODE."
7 (2) THE TAXES IMPOSED BY 75 PA.C.S. CHS. 90 (RELATING TO
8 LIQUID FUELS AND FUELS TAX), 95 (RELATING TO TAXES FOR HIGHWAY
9 MAINTENANCE AND CONSTRUCTION) AND 96 (RELATING TO MOTOR CARRIERS
10 ROAD TAX).
11 SECTION 33. THIS ACT SHALL APPLY AS FOLLOWS:
12 (1) THE PROVISIONS OF THIS ACT SHALL APPLY TO ALL
13 DETERMINATIONS AND ASSESSMENTS OF TAX LIABILITY BY THE
14 DEPARTMENT OF REVENUE AFTER DECEMBER 31, 2007.
15 (2) THE PROVISIONS OF THIS ACT SHALL NOT APPLY TO OR
16 EFFECT ANY PROCEEDING, PROSECUTION, ACTION, SUIT OR APPEAL
17 INVOLVING ASSESSMENTS, DETERMINATIONS OR SETTLEMENTS OF TAX
18 LIABILITY BY THE DEPARTMENT OF REVENUE PRIOR TO JANUARY 1,
19 2008, AND ANY REASSESSMENT, REDETERMINATION OR RESETTLEMENT
20 RESULTING FROM SUCH PROCEEDING, PROSECUTION, SUIT OR APPEAL.
21 FOR ALL PROCEEDINGS, PROSECUTIONS, ACTIONS, SUITS OR APPEALS
22 INVOLVING ASSESSMENTS, DETERMINATIONS OR SETTLEMENTS OF TAX
23 LIABILITY BY THE DEPARTMENT OF REVENUE PRIOR TO JANUARY 1,
24 2008, THE PROCEDURES IN PLACE PRIOR TO THE EFFECTIVE DATE OF
25 THIS SECTION SHALL APPLY UNTIL FINAL RESOLUTION BY
26 WITHDRAWAL, REASSESSMENT, REDETERMINATION OR RESETTLEMENT BY
27 THE DEPARTMENT OF REVENUE OR AN ADMINISTRATIVE BOARD OR A
28 DECISION BY A COURT OF COMPETENT JURISDICTION.
29 SECTION 34. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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