HB 1805 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in general provisions, providing for deferred payment plan and installment plan penalty, fine and fee freeze.

PRINTER'S NO.     2219

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1805
                                                 Session of
                                                   2025

     INTRODUCED BY CEPEDA-FREYTIZ, HILL-EVANS, MAYES, GAYDOS, KHAN,
        SANCHEZ AND PARKER, AUGUST 14, 2025

     REFERRED TO COMMITTEE ON FINANCE, AUGUST 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 general provisions, providing for deferred
11      payment plan and installment plan penalty, fine and fee
12      freeze.
13      The General Assembly of the Commonwealth of Pennsylvania
14   hereby enacts as follows:
15      Section 1.    The act of March 4, 1971 (P.L.6, No.2), known as
16   the Tax Reform Code of 1971, is amended by adding a section to
17   read:
18      Section 3003.26.    Deferred Payment Plan and Installment Plan
19   Penalty, Fine and Fee Freeze.--(a)      A taxpayer subject to any
20   tax under this act who has entered into a duly authorized
21   deferred payment plan or installment plan for the taxpayer's
22   past due tax liability may not be charged any additional
23   penalties, fines or fees for the late payment of the taxpayer's
1   tax liability if the taxpayer is making payments in accordance
2   with the terms of the deferred payment plan or installment plan.
3      (b)   Entrance into or participation in a duly authorized
4   deferred payment plan or installment plan for the taxpayer's
5   past due tax liability, including an agreement to reinstate a
6   sales and use tax license, shall not preclude the taxpayer from
7   having the right to appeal the taxpayer's past due tax
8   liability.
9      Section 2.   This act shall take effect in 60 days.




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