PRIOR PRINTER'S NOS. 3278, 3977 PRINTER'S NO. 4075
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 RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, OCTOBER 10, 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," further providing for disclosure statement of
4 rights of taxpayers and for the Taxpayers' Rights Advocate;
5 providing for innocent spouse relief, for burden of proof and
6 for reports to the General Assembly; and further providing
7 for the expiration date.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Sections 202(a) and 207 of the act of December
11 20, 1996 (P.L.1504, No.195), known as the Taxpayers' Bill of
12 Rights, are amended to read:
13 Section 202. Disclosure statement of rights of taxpayers.
14 (a) Contents.--The secretary shall[, not later than 180 days
15 after the effective date of this act,] prepare a statement which
1 sets forth the following in simple and nontechnical terms:
2 (1) The rights of a taxpayer and the [obligation]
3 jurisdiction of the department during an audit. The taxpayer
4 shall be informed about the extent of and limits to the
5 department's jurisdiction in an audit.
6 (2) The procedures by which a taxpayer may appeal or
7 seek review of any adverse decision of the department,
8 including administrative and judicial appeals.
9 (3) The procedure for filing and processing refund
10 claims and taxpayer complaints and the time frames for
11 departmental action.
12 (4) The procedures which the department may use and the
13 remedies it may seek in enforcing [taxes] tax law.
14 (5) The taxpayer's right to counsel and advice and to be
15 assisted at any departmental proceedings by a person of the <--
16 taxpayer's choosing AN ATTORNEY OR ACCOUNTANT. <--
17 * * *
18 Section 207. Taxpayers' Rights Advocate.
19 The department shall designate a Taxpayers' Rights Advocate.
20 The Taxpayers' Rights Advocate shall be an employee of the
21 department and shall report directly to the secretary. The
22 Taxpayers' Rights Advocate shall facilitate the resolution of
23 taxpayer complaints and problems in connection with the audit or
24 collection of a tax imposed under Article III or XXI of the act
25 of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
26 1971.
27 Section 2. The act is amended by adding a section to read:
28 Section 212. Innocent spouse relief.
29 Under regulations promulgated by the secretary, a taxpayer
30 filing a joint return under Article III of the act of March 4,
20000H2434B4075 - 2 -
1 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, for a
2 taxable year shall be relieved of liability for tax, interest
3 and penalties for that taxable year to the extent such liability
4 is attributable to a substantial understatement by the
5 taxpayer's spouse. This section shall apply only if:
6 (1) On such joint return there is a substantial
7 understatement of tax attributable to grossly erroneous items
8 of one spouse.
9 (2) The other spouse establishes that in signing the
10 return such spouse did not know, and had no reason to know,
11 that there was such substantial understatement.
12 (3) Taking into account all the facts and circumstances,
13 it is inequitable to hold the other spouse liable for any
14 assessment for such taxable year attributable to such
15 substantial understatement.
16 Section 3. Chapter 3 heading of the act is amended to read:
17 CHAPTER 3
18 [INTERDEPARTMENTAL] DEPARTMENTAL DOCUMENTS AND REPORTS
19 Section 4. The act is amended by adding a section to read:
20 Section 304. Reports to General Assembly.
21 The secretary shall provide to the chairman and minority
22 chairman of the Finance Committee of the Senate and the chairman
23 and minority chairman of the Finance Committee of the House of
24 Representatives the reports indicated in paragraphs (1) through
25 (4):
26 (1) A report containing statistical information relating
27 to the number of cases handled by the Taxpayers' Rights
28 Advocate, the types of taxes addressed in the cases and the
29 resolution of the cases. This report shall be submitted by
30 March 1 of each year for cases handled during the prior
20000H2434B4075 - 3 -
1 calendar year.
2 (2) A report containing a summary of the results of any
3 customer or taxpayer satisfaction survey conducted by the
4 department. This report shall be submitted by March 1 of each
5 year for any such survey completed during the prior calendar
6 year.
7 (3) A report containing the department's strategic plan
8 or any updates thereto. This report shall be submitted by
9 March 1 of odd-numbered years.
10 (4) A report containing the standards of conduct or the
11 content of any code of ethics for department employees. This
12 report shall be submitted by March 1 of odd-numbered years.
13 The report shall contain a numeric review of incidents or
14 conduct investigated or reported under the standards of
15 conduct or code of ethics as well as the resolutions of such
16 reviews or investigations.
17 Section 5. Section 401 of the act is amended to read:
18 Section 401. Expiration.
19 This act shall expire on December 31, [2000] 2004.
20 Section 6. This act shall take effect January 1, 2001.
B11L72RZ/20000H2434B4075 - 4 -