HB 1198 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for examination.

PRINTER'S NO.   1347

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1198
                                               Session of
                                                 2025

     INTRODUCED BY ZIMMERMAN, HAMM, PICKETT, M. MACKENZIE, JAMES,
        GLEIM, ROWE AND LEADBETER, APRIL 15, 2025

     REFERRED TO COMMITTEE ON FINANCE, APRIL 15, 2025


                                    AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," in personal income tax, further providing for
11      examination.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Section 355 of the act of March 4, 1971 (P.L.6,
15   No.2), known as the Tax Reform Code of 1971, is amended to read:
16      Section 355.    Examination.--The department, or any agent
17   authorized in writing by it, is hereby authorized to examine the
18   books, papers and records of any taxpayer or supposed taxpayer,
19   and to require the production of a copy of his return as made to
20   and filed with the Federal Government, if one was so made and
21   filed in order to verify the accuracy of any return made, or if
22   no return was made, to ascertain and assess the tax imposed by
 1   this article. The department or an agent of the department shall
 2   examine in person, at the physical location of the taxpayer, any
 3   requested books, papers and records if the requested books,
 4   papers and records comprise twenty-five pages or more in total.
 5   The department shall provide the taxpayer written notification
 6   of an in-person examination of the requested books, papers and
 7   records fourteen business days prior to the in-person
 8   examination. Every such taxpayer or supposed taxpayer is hereby
 9   directed and required to give to the department or its duly
10   authorized agent the means, facilities and opportunity for such
11   examinations and investigations as are hereby provided and
12   authorized. The department is hereby authorized to examine any
13   person under oath concerning any income which was or should have
14   been returned for taxation, and to this end may compel the
15   production of books, papers and records and the attendance of
16   all persons, whether as parties or witnesses, whom it believes
17   have knowledge of such income. The procedure for such hearing or
18   examination shall be the same as that provided by the act of
19   April 9, 1929 (P.L.343, No.176), known as "The Fiscal [Code"]
20   Code," relating to inquisitorial powers of fiscal officers.
21      Section 2.   This act shall take effect in 60 days.




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