HB 856 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in sales and use tax, further providing for assessment; in personal income tax, further providing for assessment; in corporate net income tax, further providing for assessments; in procedure and administration, further providing for petition for reassessment; and, in general provisions, further providing for petitions for refunds and providing for compromise or adjustment of assessments.

Summary

Reforming State Tax Procedures

Bill Text

• Printer's No. 0894 View text Current

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This bill amends the Tax Reform Code of 1971 by modifying procedures related to assessments, petitions for reassessment, and the compromise or adjustment of assessments.

• Section 230

  A notice of assessment or notice of adjustment issued by the department shall contain information concerning the items being adjusted and an explanation regarding why items are being adjusted in the notice of assessment or notice of adjustment.

  Requires the department to provide detailed information in notices of assessment and adjustments.

• Section 338

  A notice of assessment or notice of adjustment issued by the department shall contain information concerning the items being adjusted and an explanation regarding why items are being adjusted in the notice of assessment or notice of adjustment.

  Mandates that assessments and adjustments include explanations and item details.

• Section 407.1

  A notice of assessment or notice of adjustment issued by the department shall contain information concerning the items being adjusted and an explanation regarding why items are being adjusted in the notice of assessment or notice of adjustment.

  Ensures that information regarding adjustments is included in notices of assessment.

• Section 2702(a)(1)

  The 60-day period for a taxpayer to file a petition for reassessment with the department shall not commence unless the notice of assessment or notice of adjustment issued by the department contains information concerning the items being adjusted and an explanation regarding why items are being adjusted in the notice of assessment or notice of adjustment.

  The clock for filing petitions for reassessment starts only when required information is provided in the assessment notice.

• Section 2702

  Notwithstanding any other provision of law, the department may extend the date for filing a petition for reassessment under subsection (a) if all of the following apply: (1) A taxpayer files a written application to the department that demonstrates good cause for the extension. (2) The department finds that granting the written application under paragraph (1) will not prejudice the Commonwealth.

  Allows the department to extend the filing deadline for reassessment petitions under certain conditions.

• Section 3003.1

  In the case of the Department of Revenue applying a tax overpayment or tax credit to satisfy, either in whole or in part, an assessment, a petition for refund must be filed with the department within six months of the mailing date of the notice of adjustment.

  Establishes a six-month deadline for filing refund petitions related to tax overpayments or credits.

• Section 3003.26

  Notwithstanding any other provision of law, in the case of doubtful liability or financial hardship of a taxpayer or in order to promote effective tax administration, the Department of Revenue may compromise an assessment of a tax imposed under this act without the requirement that the taxpayer appeal the assessment.

  Allows the Department of Revenue to compromise on tax assessments without requiring an appeal from the taxpayer.

• Section 3003.26

  Notwithstanding any other provision of law, the Department of Revenue shall adjust an assessment of a tax imposed under this act without the requirement that the taxpayer appeal the assessment if any of the following apply: (1) The assessment is a result of a clerical error made by the Department of Revenue. (2) There is an issue with the existence of a payment or tax credit. (3) The taxpayer failed to provide necessary documentation with a tax return.

  Enables the department to adjust tax assessments for specific situations without taxpayer appeals.

Action History

1. March 11, 2025

   Referred to FINANCE, March 11, 2025

Sponsors

• Joe Webster · Primary
• Carol Hill-Evans · Cosponsor
• Steven R. Malagari · Cosponsor
• G. Roni Green · Cosponsor
• Benjamin V. Sanchez · Cosponsor

Subjects