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PA HB1076

PA HB1076
In general provisions, further providing for statute of limitations for collection of assessed taxes.


summary

Introduced
03/31/2025
In Committee
03/31/2025
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 general provisions, further providing for statute of limitations for collection of assessed taxes.

AI Summary

This bill amends the Tax Reform Code of 1971 by reducing the statute of limitations for tax collection by the Pennsylvania Department of Revenue from ten years to seven years. Specifically, the bill changes the timeframe within which the Department of Revenue can collect taxes owed, either through settlement, determination, or assessment. For taxes on which a return has not been filed, the Department now has seven years from the tax return due date to induce filing or settle the tax liability, instead of the previous ten-year period. The bill clarifies that filing a tax lien does not extend this seven-year collection period. The changes will apply to taxes for which settlement or assessment becomes final after the bill's effective date, which is January 1, 2026, or immediately thereafter. This modification aims to streamline tax collection procedures and provide more definitive timelines for both taxpayers and the Department of Revenue.

Committee Categories

Budget and Finance

Sponsors (9)

Last Action

Referred to Finance (on 03/31/2025)

bill text


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