Pennsylvania HB 1694: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for tax amnesty program for fiscal year 2025-2026.

Bill Text

PRINTER'S NO. 2084
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1694
Session of
2025
INTRODUCED BY CEPEDA-FREYTIZ, HILL-EVANS, SANCHEZ, MAYES,
HADDOCK, T. DAVIS, D. WILLIAMS, NEILSON, HOHENSTEIN AND
BELLMON, JULY 2, 2025
REFERRED TO COMMITTEE ON FINANCE, JULY 7, 2025
AN ACT
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," providing for tax amnesty program for fiscal year
2025-2026.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XXIX-J
TAX AMNESTY PROGRAM FOR FISCAL YEAR 2025-2026
Section 2901-J. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Amnesty period." The time period of 90 consecutive days
established by the Governor ending no later than June 30, 2026.
"Department." The Department of Revenue of the Commonwealth.
"Eligible tax." As follows:
(1) A tax administered by the department under this act
that became delinquent during a taxable period.
(2) The term includes any interest, penalty or fee on an
eligible tax.
(3) For an unknown liability, the term only includes
taxes due during a taxable period.
(4) For purposes of taxes collected under the
International Fuel Tax Agreement, the term applies only to
taxes, interest and penalties owed to the Commonwealth, not
to other states or Canadian provinces.
"Program." The tax amnesty program established under section
2902-J as provided for in this article.
"Taxable period." A taxable year beginning after December
31, 2019, and ending no later than December 31, 2024.
"Taxpayer." As follows:
(1) A person, association, fiduciary, partnership,
corporation or other entity required to pay or collect any of
the eligible taxes.
(2) The term does not include a taxpayer that:
(i) prior to the amnesty period, has received notice
that the taxpayer is the subject of a criminal
investigation for an alleged violation of any law
imposing an eligible tax;
(ii) prior to the amnesty period, has been named as
a defendant in a criminal complaint alleging a violation
of any law imposing an eligible tax; or
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(iii) is a defendant in a pending criminal action
for an alleged violation of any law imposing an eligible
tax.
"Unknown liability." A liability for an eligible tax for
which:
(1) a return or report has not been filed, a payment has
not been made and the taxpayer has not been contacted by the
department concerning the unfiled returns or reports or
unpaid tax; or
(2) a return or report has been filed, the tax was
underreported and the taxpayer has not been contacted by the
department concerning the underreported tax and is not
already under audit when the amnesty period begins.
Section 2902-J. Establishment of program.
(a) Establishment and administration.--Subject to sections
2902-F(c) and 2902-G(c), a tax amnesty program is established
and shall be administered by the department.
(b) Applicability.--Subject to sections 2902-F(c) and 2902-
G(c), the program shall apply to a taxpayer that became
delinquent on payment of a liability for an eligible tax during
a taxable period, including a liability for returns not filed,
liabilities according to records of the department during a
taxable period, liabilities not reported, underreported or not
established, but delinquent during a taxable period.
(c) Future amnesty program participation.--A taxpayer that
participates in the program shall not be eligible to participate
in a future tax amnesty program.
(d) Deferred payment plan agreement.--An existing deferred
payment plan agreement between a taxpayer and the department
where the agreement applies to a tax liability for which amnesty
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is sought by the taxpayer for amounts remaining on the tax
liability, the taxpayer, as a condition of receiving amnesty,
shall pay the liability, notwithstanding terms of the agreement
to the contrary, in full during the amnesty period.
Section 2903-J. Required payment.
(a) Taxpayer requirements.--Subject to section 2904-J, each
taxpayer that participates in the program shall comply with all
of the following:
(1) Durin