A01392
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
17
Session of
2019
INTRODUCED BY RYAN, GROVE, JAMES, KAUFFMAN, KEEFER, SAYLOR,
SIMMONS, STAATS, WALSH, LAWRENCE, F. KELLER AND JONES,
JANUARY 28, 2019
REFERRED TO COMMITTEE ON FINANCE, JANUARY 28, 2019
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in personal income tax, further providing for
collection of tax and for limitations on assessment and
collection. in general provisions, providing for statute of
limitation for collection of assessed taxes and for period of
limitations on criminal tax prosecutions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 343 and 348(c) of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
amended to read:
Section 343. Collection of Tax.--(a) The department shall
collect the taxes imposed by this article in the manner provided
by law for the collection of taxes imposed by the laws of this
Commonwealth.
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(b) The following apply:
(1) except as provided under paragraph (2), where the
assessment of a tax imposed by this article has been made within
the applicable period of limitation, the tax shall be collected
by the department within ten years after the date the return was
first due; and
(2) where the taxpayer willfully files a false or fraudulent
return with the intent to evade the tax imposed by this article,
the amount of tax due may be assessed and collected at any time.
Section 348. Limitations on Assessment and Collection.--* *
*
(c) Where no return is filed, or if a taxpayer shall fail,
when required, to file an amended return, the amount of the tax
due may be assessed at any time not exceeding ten years from the
date the return was first due or any extension thereof.
* * *
Section 2. This act shall take effect in 60 days.
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding sections to
read:
Section 3003.23. Statute of Limitation for Collection of
Assessed Taxes.-- (a) The following shall apply:
(1) For a tax administered by the Department of Revenue,
except under Article XXI, the Department of Revenue may collect
the tax owed if collection commences within ten years of the
date the settlement, determination or assessment of the tax
becomes final. For nonfiled returns, the Department of Revenue
shall induce the filing of a return or settle, determine or
assess the tax liability of a nonfiled tax period within ten
years of the tax return due date. The filing of a tax lien shall
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not extend the ten-year period to collect a tax.
(2) Paragraph (1) shall not affect the Department of
Revenue's ability to set off tax overpayments by the taxpayer
against any taxes and other obligations owing the Commonwealth
by the taxpayer or to set off tax liabilities owed to the
Commonwealth with moneys owed the taxpayer by the Commonwealth
within the applicable collection period.
(b) The following shall apply:
(1) The Department of Revenue shall have no time limitation
to collect taxes in the following cases:
(i) For trust fund tax liabilities a taxpayer either
collected or withheld, as an agent of or in trust for the
Commonwealth, but wilfully failed, grossly neglected or refused
to remit to the Commonwealth notwithstanding whether the
taxpayer filed a return.
(ii) If a taxpayer files a false and fraudulent tax return
or report.
(iii) If a taxpayer wilfully fails to file a tax return or
report as required by law.
(iv) If a taxpayer attempts to evade or defeat a tax.
(v) For a tax offense for which a taxpayer has been
criminally charged and convicted in which tax liabilities remain
unpaid.
(vi) For liabilities of eligible taxes unknown to the
Department of Revenue that have not been extinguished under
subsection (a) prior to the commencement of the tax amnesty
period of a subsequently enacted or approved tax amnesty program
administered by the Department of Revenue.
(2) The collection expiration date shall be tolled for the
time when any of the following events are pending, plus one
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year:
(i) During a bankruptcy or proceeding during which the
taxpayer's assets are in the control or custody of an
administrative body, court or duly appointed guardian, receiver
or trustee.
(ii) The period during which a taxpayer's offer-in-
compromise is under consideration by the Department of Revenue.
(iii) The duration of an installment agreement or deferred
payment plan between the taxpayer and the Department of Revenue.
(iv) The duration, from commencement through final
determination, of a proceeding which constitutes a tax appeal or
which opposes a collection action before an administrative
tribunal or court of law or in which the taxpayer has filed a
lawsuit or brought a cause of action against the Department of
Revenue.
(v) The duration of a taxpayer's military service for which
the taxpayer is eligible for and has received a Federal
extension.
(vi) For a period of time as the taxpayer and the Department
of Revenue may agree, in writing, to extend the collection
expiration date.
(c) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection:
"Tax." A tax, interest, addition to tax, penalty, fee and
other cost, including the cost of collection.
Section 3003.24. Period of Limitations on Criminal Tax
Prosecutions.--(a) A person shall not be prosecuted, tried or
punished for an offense under a tax statute administered by the
Department of Revenue except if prosecution is instituted within
three years after the commission of the offense.
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(b) If the period under subsection (a) has expired, a
prosecution may be instituted for:
(1) An offense a material element of which is either fraud
or a breach of fiduciary obligation within one year after the
discovery of the offense. This paragraph shall not extend the
period of limitation otherwise applicable by more than two
years.
(2) The offense of wilfully attempting to evade or defeat a
tax or the payment of a tax within one year after the discovery
of the offense. This paragraph shall not extend the period of
limitation otherwise applicable by more than three years.
(c) In addition to a criminal offense identified in the tax
statutes administered by the Department of Revenue, a person may
be prosecuted for an offense provided for under 18 Pa.C.S.
(relating to crimes and offenses), relating to misconduct under
the tax statutes, if the prosecution is instituted within five
years after the commission of the offense.
(d) In addition to the imposition of a fine and imprisonment
and if a taxpayer has been convicted of a tax-related offense
under a statutory provision, the defendant taxpayer shall be
ordered and required to pay the Department of Revenue
restitution of each tax liability for which a conviction has
been entered. The amount of restitution shall be the taxes,
interest and penalties accrued through the date of payment.
Section 2. The following apply:
(1) The addition of sections 3003.23 and 3003.24 of the
act shall not relieve a person of a tax, interest, addition
to a tax, penalty, fee and other cost payable by the person
on the effective date of this section.
(2) If a court of competent jurisdiction holds that a
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tax, interest, addition to tax, penalty, fee and other cost
or money payable to the Commonwealth, or any officer or
agency of the Commonwealth, cannot be settled, assessed or
collected under the procedure provided by the addition of
sections 3003.23 and 3003.24 of the act, the matters shall
continue to be settled or assessed and collected under the
laws in force prior to the effective date of this section.
(3) The following apply to the addition of section
3003.23 of the act:
(i) For a settlement, determination or assessment
issued before the effective date of this section, the
ten-year collection period shall begin on the effective
date of this section or when the settlement,
determination or assessment becomes final, whichever is
later.
(ii) For a tax return due and not filed as of the
effective date of this section, the ten-year statute
applicable to a nonfiled return shall begin on the
effective date of this section.
(iii) For a tax return due and not filed before or
on the effective date of this section, the ten-year
statute applicable to a nonfiled return shall begin on
the effective date of this section.
(4) A tax lien created prior to January 1, 2021, shall
not be impaired, shall remain in full force and effect and
shall retain the priority under the provision imposing the
tax lien, without the necessity of refiling or revival, until
January 1, 2031.
Section 3. This act shall take effect as follows:
(1) The addition of section 3003.23 of the act shall
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take effect January 1, 2021.
(2) The remainder of this act shall take effect
immediately.
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