Bill > HB1552

This bill amends the Tax Reform Code of 1971 to establish penalties for frivolous or improper sales and use tax refund claims. The bill introduces a new section that imposes financial penalties on taxpayers who submit incomplete, duplicative, or unsupported refund claims. Specifically, the bill creates a tiered penalty system where claims that are materially incomplete will incur a 5% penalty, while claims lacking a reasonable basis in law or fact will incur a 10% penalty. The penalties apply only to refund claims totaling $5,000 or more and will be assessed against the taxpayer or the tax preparer who filed the claim. Before assessing a penalty for an incomplete claim, the Department of Revenue must first notify the taxpayer or preparer, specifying what information is missing and allowing 60 days to correct the claim or withdraw it. The department retains the discretion to waive penalties if the duplicate claim was unintentional, minimal, or if the taxpayer demonstrates good cause. The penalties will be collected in the same manner as other tax assessments, and the act takes effect immediately upon passage.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1552