Bill

Bill > HB856


PA HB856

PA HB856
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

Introduced
03/11/2025
In Committee
03/11/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

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 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.

AI Summary

This bill proposes several changes to Pennsylvania's Tax Reform Code to improve tax assessment and administrative procedures. The bill requires that all tax assessment notices from the Department of Revenue include detailed explanations of why specific items are being adjusted, which will help taxpayers better understand the basis of their tax assessments. It introduces a provision allowing the department to extend the deadline for filing a petition for reassessment if a taxpayer demonstrates good cause and the extension does not prejudice the Commonwealth. The bill also establishes new rules for petitions for refunds, stipulating that taxpayers must file within six months if the Department of Revenue applies a tax overpayment or credit to satisfy an assessment. Additionally, the bill provides the Department of Revenue with more flexibility to compromise or adjust tax assessments in cases of doubtful liability, financial hardship, or administrative errors, such as clerical mistakes, payment issues, or incomplete documentation. These changes aim to create a more transparent, flexible, and taxpayer-friendly tax assessment process while maintaining the state's ability to effectively administer tax collection. The bill will take effect 60 days after its enactment.

Committee Categories

Budget and Finance

Sponsors (5)

Last Action

Referred to Finance (on 03/11/2025)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...