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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2019 - 2020 Regular Session


Posted: March 9, 2020 09:45 AM
From: Representative Barbara Gleim
To: All House members
Subject: PA Department of Revenue/Estimated Payment Legislation
In the near future, I plan to introduce legislation that will require the Department of Revenue to issue a refund, upon election by a taxpayer, for instances of estimated tax overpayment.

As many of you know, a significant number of Pennsylvania taxpayers take advantage of the ability to remit estimated quarterly tax payments for Personal Income Tax liabilities, as it not only enables them to gain a better sense of their cash flow, but also helps to avoid potential unforeseen surprises and unaccounted for penalties. For most taxpayers, this process works efficiently and is regarded as a benefit. However, it was recently brought to my attention that, due to an existing Department of Revenue regulation, if a taxpayer remits an overpayment of their estimated tax liability, the Department holds on to the excess amount and applies it as a credit to the taxpayer’s future tax liability. While for some, this practice may not pose a concern, I believe that each individual taxpayer has a right to decide what happens with any overpaid funds and should therefore be given the ability to make this determination.

To this end, my legislation will provide each taxpayer the ability to decide what happens with a determined overpayment and in effect negate the current regulation which allows the Department of Revenue to apply the overpayment as a credit towards future tax liabilities. Additionally, my bill will clarify that an amount withheld and not returned to the taxpayer may be subject to interest. I believe that affording this decision to be made by our taxpayers, rather than allowing the Department to decide, is in the best interest of all.

I respectfully ask for your consideration to cosponsor this legislation.

Introduced as HB2430