H2348B3475A12024     MSP:CDM  06/18/12     #90        A12024

  

  

  

  

AMENDMENTS TO HOUSE BILL NO. 2348

Printer's No. 3475

  

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Amend Bill, page 1, line 12, by striking out the comma after

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"reassessment" and inserting

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 and

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Amend Bill, page 1, line 12, by inserting after "procedure"

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; providing for compromise by secretary;

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Amend Bill, page 1, line 12, by inserting after "and"

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further providing 

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Amend Bill, page 4, lines 7 through 30; page 5, lines 1 

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through 19, by striking out all of said lines on said pages and

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inserting

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Section 3.  Section 2702 of the act is amended by adding a

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subsection to read:

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Section 2702.  Petition for reassessment.

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* * *

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(a.1)  Petition for review of tax adjustment not resulting in

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an increase in liability.--

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(1)  A petition for reassessment under subsection (a) may

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include a request for review of the department's adjustment

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of a tax item if the adjustment did not result in a tax

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increase in the year of adjustment, but may increase the tax

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due in a subsequent year. A request for review may include:

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(i)  Recalculation of the taxpayer's corporate net

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income tax net loss under Article IV as adjusted by the

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department.

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(ii)  Recalculation of the taxpayer's capital stock

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franchise tax average net income under Article VI as

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adjusted by the department.

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(iii)  Recalculation of the personal income tax basis

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of an asset under Article III as adjusted by the

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department.

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(2)  A taxpayer must file a petition for review under

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this subsection within 90 days of the mailing date of the

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department's notice of adjustment. A taxpayer's failure to

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file a petition under this subsection shall not prejudice the

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taxpayer's right to file a petition in a subsequent tax year.

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* * *

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Section 3.1.  Section 2703 of the act, added October 18, 2006

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(P.L.1149, No.119), is amended to read:

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Section 2703.  Petition procedure.

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(a)  Content of petition.--

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(1)  A petition for reassessment shall state:

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(i)  The tax type and tax periods included within the

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petition.

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(ii)  The amount of the tax that the taxpayer claims

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to have been erroneously assessed.

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(iii)  The basis upon which the taxpayer claims that

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the assessment is erroneous.

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(iv)  The basis upon which the taxpayer claims that

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the adjustment of a tax item is erroneous.

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(2)  A petition for refund shall state:

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(i)  The tax type and tax periods included within the

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petition.

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(ii)  The amount of the tax that the taxpayer claims

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to have been overpaid.

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(iii)  The basis of the taxpayer's claim for refund.

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(3)  The petition shall be supported by an affidavit by

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the petitioner or the petitioner's authorized representative

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that the petition is not made for the purpose of delay and

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that the facts set forth in the petition are true.

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(b)  Request for hearing.--Upon written request of the

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petitioner or when deemed necessary by the department, the

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department shall schedule a hearing to review a petition. The

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petitioner shall be notified by the department of the date, time

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and place where the hearing will be held.

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(c)  Decision and order.--The department shall issue a

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decision and order disposing of a petition on such basis as it

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deems to be in accordance with law. The department shall provide

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a written explanation of the basis for any denial of relief.

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(d)  Time limit for decision and order.--The department shall

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issue a decision and order disposing of a petition within six

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months after receipt of the petition. The petitioner and the

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department may agree to extend the time period for the

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department to dispose of the petition for one additional six-

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month period. Notice of the department's decision and order

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disposing of the petition shall be issued to the petitioner.

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(e)  Exception to time limit for decision and order.--If at

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the time of the filing of a petition proceedings are pending in

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a court of competent jurisdiction wherein any claim made in the

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petition may be established, the department, upon the written

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request of the petitioner, may defer consideration of the

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petition until the final judgment determining the question or

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questions involved in the petition has been decided. If

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consideration of the petition is deferred, the department shall

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issue a decision and order disposing of the petition within six

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months after the final judgment.

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(f)  Failure of department to take action.--The failure of

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the department to dispose of the petition within the time period

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provided for by subsection (d) or (e) shall act as a denial of

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the petition. Notice of the department's failure to take action

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and the denial of the petition shall be mailed to the

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petitioner.

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Section 3.2.  The act is amended by adding a section to read:

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Section 2707.  Compromise by secretary.

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The secretary may compromise on any civil tax matter within

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the jurisdiction of the department arising under the laws of

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this Commonwealth. The department shall promulgate guidelines

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for the approval of compromises in Commonwealth tax matters.

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Amend Bill, page 6, by inserting between lines 20 and 21

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Section 5.  The following provisions shall apply to tax

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periods which, on the effective date of this section, are open

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under the act; to administrative appeals pending on the

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effective date of this section; and to judicial appeals pending

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on the effective date of this section:

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(1)  The addition of section 2702(a.1) of the act.

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(2)  The addition of section 2703(a)(1)(iv) of the act.

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(3)  The amendment of section 3003.1(b) of the act.

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Amend Bill, page 6, line 21, by striking out "5" and

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inserting

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 6

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