PRINTER'S NO. 874
No. 763 Session of 2003
INTRODUCED BY PICCOLA, EARLL, D. WHITE, ROBBINS, JUBELIRER,
BRIGHTBILL, WAUGH, ERICKSON, ORIE, WAGNER, MUSTO,
TARTAGLIONE, KITCHEN, M. WHITE, PUNT, MELLOW, HELFRICK,
A. WILLIAMS, CORMAN, RHOADES, PILEGGI, ARMSTRONG, RAFFERTY,
FERLO, LEMMOND, COSTA, O'PAKE, MOWERY, WENGER, FUMO,
THOMPSON, TOMLINSON, MADIGAN, DENT, WONDERLING, GREENLEAF,
CONTI, STACK, KASUNIC AND SCARNATI, MAY 16, 2003
REFERRED TO FINANCE, MAY 16, 2003
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 for income tax returns and
11 liability.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 330(b) of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
16 March 26, 1991 (P.L.5, No.3), is amended to read:
17 Section 330. Returns and Liability.--* * *
18 (b) (1) In the case of an individual serving in the armed
19 forces of the United States in an area designated by the
20 President of the United States by Executive order as a "combat
1 zone" at any time during the period designated by the President
2 by Executive order as the period of combatant activities in the
3 combat zone or hospitalized as a result of injury received while
4 serving in the combat zone during such time, or an individual
5 serving in the armed forces in an area designated by the
6 President or Congress as a qualified hazardous duty area and
7 thereby treated as a combat zone under section 112 of the
8 Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
9 112), or an individual serving in a military capacity as a
10 result of a Federal callup to active duty or civilian capacity
11 outside the boundary of this Commonwealth in support of such
12 armed forces, the period of service in such area, plus the
13 period of qualified continuous hospitalization attributable to
14 such injury, and the next one hundred eighty days thereafter
15 shall be disregarded in determining, under this article, in
16 respect of any tax liability, including any interest, penalty,
17 additional amount or addition to the tax of such individual:
18 (i) Whether any of the following acts were performed within
19 the time prescribed therefor:
20 (A) Filing any return of income tax, except income tax
21 withheld at source;
22 (B) Payment of any income tax, except income tax withheld at
23 source or any installment thereof or of any other liability to
24 the Commonwealth in respect thereof;
25 (C) Filing a petition for redetermination of a deficiency or
26 for review of a decision rendered by the department;
27 (D) Allowance of a credit or refund of any tax;
28 (E) Filing a claim for credit or refund of any tax;
29 (F) Bringing suit upon any such claim for credit or refund;
30 (G) Assessment of any tax;
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1 (H) Giving or making any notice or demand for the payment of
2 any tax or with respect to any liability to the Commonwealth in
3 respect of any tax;
4 (I) Collection by the department, by levy or otherwise, of
5 the amount of any liability in respect of any tax;
6 (J) Bringing suit by the Commonwealth, or any officer on its
7 behalf, in respect of any liability in respect of any tax; and
8 (K) Any other act required or permitted under this article
9 specified in regulations prescribed by the department;
10 (ii) The amount of any credit or refund, including interest.
11 (2) The provisions of this subsection shall apply to the
12 spouse of any individual entitled to the benefits of paragraph
13 (1). This paragraph shall not cause this subsection to apply for
14 any spouse for any taxable year beginning more than one year
15 after the date of termination of combatant activities in a
16 combat zone.
17 (3) The period of service in the area referred to in this
18 subsection shall include the period during which an individual
19 entitled to benefits under this subsection is in a missing
20 status.
21 (4) In the event that any qualified individual under
22 paragraph (1) is killed while serving in the combat zone, the
23 tax liability of that decedent for both the year of death and
24 the immediate prior year shall be waived by the Commonwealth.
25 (5) For purposes of paragraph (1), the phrase "period of
26 qualified continuous hospitalization" shall mean:
27 (i) any hospitalization outside the United States; and
28 (ii) any hospitalization inside the United States.
29 Section 2. There shall be no penalty for failure to timely
30 file or timely pay income tax for tax year 2002 for those
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1 individuals who qualify under section 330 of the act, prior to
2 the effective date of this act.
3 Section 3. The amendment of section 330 of the act shall
4 apply to tax years beginning after December 31, 2001.
5 Section 4. This act shall take effect immediately.
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