PRIOR PRINTER'S NO. 3278 PRINTER'S NO. 3977
No. 2434 Session of 2000
INTRODUCED BY ADOLPH, BARRAR, FLICK, MICOZZIE, RAYMOND, ALLEN,
ARGALL, BAKER, BATTISTO, BENNINGHOFF, BOYES, BUNT, CLARK,
CLYMER, L. I. COHEN, CORRIGAN, COY, DAILEY, DALEY, DALLY,
DeWEESE, FARGO, FICHTER, FRANKEL, GEIST, GEORGE, GODSHALL,
GORDNER, HERMAN, HERSHEY, HUTCHINSON, KIRKLAND, LEDERER, LEH,
MAHER, MANN, MASLAND, McCALL, MELIO, R. MILLER, NAILOR, ORIE,
PETRARCA, PETRONE, PHILLIPS, PIPPY, PLATTS, READSHAW, RUBLEY,
SATHER, SAYLOR, SCHRODER, SEYFERT, SHANER, S. H. SMITH,
STABACK, STEVENSON, STURLA, E. Z. TAYLOR, TIGUE, TRELLO,
TRUE, TULLI, VANCE, WALKO, WILT, WRIGHT, YUDICHAK, ZUG,
MARSICO, McNAUGHTON, HORSEY, SAINATO AND SEMMEL,
APRIL 3, 2000
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, SEPTEMBER 27, 2000
AN ACT
1 Amending the act of December 20, 1996 (P.L.1504, No.195),
2 entitled "An act providing for the rights and privileges of
3 taxpayers," repealing the expiration provisions relating to <--
4 the Taxpayers' Bill of Rights. FURTHER PROVIDING FOR <--
5 DISCLOSURE STATEMENT OF RIGHTS OF TAXPAYERS AND FOR THE
6 TAXPAYERS' RIGHTS ADVOCATE; PROVIDING FOR INNOCENT SPOUSE
7 RELIEF, FOR BURDEN OF PROOF AND FOR REPORTS TO THE GENERAL
8 ASSEMBLY; AND FURTHER PROVIDING FOR THE EXPIRATION DATE.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 401 of the act of December 20, 1996 <--
12 (P.L.1504, No.195), known as the Taxpayers' Bill of Rights, is
13 repealed.
14 Section 2. This act shall take effect immediately.
15 SECTION 1. SECTIONS 202(A) AND 207 OF THE ACT OF DECEMBER <--
1 20, 1996 (P.L.1504, NO.195), KNOWN AS THE TAXPAYERS' BILL OF
2 RIGHTS, ARE AMENDED TO READ:
3 SECTION 202. DISCLOSURE STATEMENT OF RIGHTS OF TAXPAYERS.
4 (A) CONTENTS.--THE SECRETARY SHALL[, NOT LATER THAN 180 DAYS
5 AFTER THE EFFECTIVE DATE OF THIS ACT,] PREPARE A STATEMENT WHICH
6 SETS FORTH THE FOLLOWING IN SIMPLE AND NONTECHNICAL TERMS:
7 (1) THE RIGHTS OF A TAXPAYER AND THE [OBLIGATION]
8 JURISDICTION OF THE DEPARTMENT DURING AN AUDIT. THE TAXPAYER
9 SHALL BE INFORMED ABOUT THE EXTENT OF AND LIMITS TO THE
10 DEPARTMENT'S JURISDICTION IN AN AUDIT.
11 (2) THE PROCEDURES BY WHICH A TAXPAYER MAY APPEAL OR
12 SEEK REVIEW OF ANY ADVERSE DECISION OF THE DEPARTMENT,
13 INCLUDING ADMINISTRATIVE AND JUDICIAL APPEALS.
14 (3) THE PROCEDURE FOR FILING AND PROCESSING REFUND
15 CLAIMS AND TAXPAYER COMPLAINTS AND THE TIME FRAMES FOR
16 DEPARTMENTAL ACTION.
17 (4) THE PROCEDURES WHICH THE DEPARTMENT MAY USE AND THE
18 REMEDIES IT MAY SEEK IN ENFORCING [TAXES] TAX LAW.
19 (5) THE TAXPAYER'S RIGHT TO COUNSEL AND ADVICE AND TO BE
20 ASSISTED AT ANY DEPARTMENTAL PROCEEDINGS BY A PERSON OF THE
21 TAXPAYER'S CHOOSING.
22 * * *
23 SECTION 207. TAXPAYERS' RIGHTS ADVOCATE.
24 THE DEPARTMENT SHALL DESIGNATE A TAXPAYERS' RIGHTS ADVOCATE.
25 THE TAXPAYERS' RIGHTS ADVOCATE SHALL BE AN EMPLOYEE OF THE
26 DEPARTMENT AND SHALL REPORT DIRECTLY TO THE SECRETARY. THE
27 TAXPAYERS' RIGHTS ADVOCATE SHALL FACILITATE THE RESOLUTION OF
28 TAXPAYER COMPLAINTS AND PROBLEMS IN CONNECTION WITH THE AUDIT OR
29 COLLECTION OF A TAX IMPOSED UNDER ARTICLE III OR XXI OF THE ACT
30 OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF
20000H2434B3977 - 2 -
1 1971.
2 SECTION 2. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
3 SECTION 212. INNOCENT SPOUSE RELIEF.
4 UNDER REGULATIONS PROMULGATED BY THE SECRETARY, A TAXPAYER
5 FILING A JOINT RETURN UNDER ARTICLE III OF THE ACT OF MARCH 4,
6 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, FOR A
7 TAXABLE YEAR SHALL BE RELIEVED OF LIABILITY FOR TAX, INTEREST
8 AND PENALTIES FOR THAT TAXABLE YEAR TO THE EXTENT SUCH LIABILITY
9 IS ATTRIBUTABLE TO A SUBSTANTIAL UNDERSTATEMENT BY THE
10 TAXPAYER'S SPOUSE. THIS SECTION SHALL APPLY ONLY IF:
11 (1) ON SUCH JOINT RETURN THERE IS A SUBSTANTIAL
12 UNDERSTATEMENT OF TAX ATTRIBUTABLE TO GROSSLY ERRONEOUS ITEMS
13 OF ONE SPOUSE.
14 (2) THE OTHER SPOUSE ESTABLISHES THAT IN SIGNING THE
15 RETURN SUCH SPOUSE DID NOT KNOW, AND HAD NO REASON TO KNOW,
16 THAT THERE WAS SUCH SUBSTANTIAL UNDERSTATEMENT.
17 (3) TAKING INTO ACCOUNT ALL THE FACTS AND CIRCUMSTANCES,
18 IT IS INEQUITABLE TO HOLD THE OTHER SPOUSE LIABLE FOR ANY
19 ASSESSMENT FOR SUCH TAXABLE YEAR ATTRIBUTABLE TO SUCH
20 SUBSTANTIAL UNDERSTATEMENT.
21 SECTION 3. CHAPTER 3 HEADING OF THE ACT IS AMENDED TO READ:
22 CHAPTER 3
23 [INTERDEPARTMENTAL] DEPARTMENTAL DOCUMENTS AND REPORTS
24 SECTION 4. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
25 SECTION 304. REPORTS TO GENERAL ASSEMBLY.
26 THE SECRETARY SHALL PROVIDE TO THE CHAIRMAN AND MINORITY
27 CHAIRMAN OF THE FINANCE COMMITTEE OF THE SENATE AND THE CHAIRMAN
28 AND MINORITY CHAIRMAN OF THE FINANCE COMMITTEE OF THE HOUSE OF
29 REPRESENTATIVES THE REPORTS INDICATED IN PARAGRAPHS (1) THROUGH
30 (4):
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1 (1) A REPORT CONTAINING STATISTICAL INFORMATION RELATING
2 TO THE NUMBER OF CASES HANDLED BY THE TAXPAYERS' RIGHTS
3 ADVOCATE, THE TYPES OF TAXES ADDRESSED IN THE CASES AND THE
4 RESOLUTION OF THE CASES. THIS REPORT SHALL BE SUBMITTED BY
5 MARCH 1 OF EACH YEAR FOR CASES HANDLED DURING THE PRIOR
6 CALENDAR YEAR.
7 (2) A REPORT CONTAINING A SUMMARY OF THE RESULTS OF ANY
8 CUSTOMER OR TAXPAYER SATISFACTION SURVEY CONDUCTED BY THE
9 DEPARTMENT. THIS REPORT SHALL BE SUBMITTED BY MARCH 1 OF EACH
10 YEAR FOR ANY SUCH SURVEY COMPLETED DURING THE PRIOR CALENDAR
11 YEAR.
12 (3) A REPORT CONTAINING THE DEPARTMENT'S STRATEGIC PLAN
13 OR ANY UPDATES THERETO. THIS REPORT SHALL BE SUBMITTED BY
14 MARCH 1 OF ODD-NUMBERED YEARS.
15 (4) A REPORT CONTAINING THE STANDARDS OF CONDUCT OR THE
16 CONTENT OF ANY CODE OF ETHICS FOR DEPARTMENT EMPLOYEES. THIS
17 REPORT SHALL BE SUBMITTED BY MARCH 1 OF ODD-NUMBERED YEARS.
18 THE REPORT SHALL CONTAIN A NUMERIC REVIEW OF INCIDENTS OR
19 CONDUCT INVESTIGATED OR REPORTED UNDER THE STANDARDS OF
20 CONDUCT OR CODE OF ETHICS AS WELL AS THE RESOLUTIONS OF SUCH
21 REVIEWS OR INVESTIGATIONS.
22 SECTION 5. SECTION 401 OF THE ACT IS AMENDED TO READ:
23 SECTION 401. EXPIRATION.
24 THIS ACT SHALL EXPIRE ON DECEMBER 31, [2000] 2004.
25 SECTION 6. THIS ACT SHALL TAKE EFFECT JANUARY 1, 2001.
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