Bill Introduced in Pennsylvania to Establish Statute of Limitations on Collection of Tax Debt

A bill has been introduced in the Pennsylvania House of Representatives that would establish a 10-year statute of limitations on the collection of state income tax.

The bill, House Bill 17, would amend the state’s Tax Reform Code of 1971. A copy of the bill can be accessed by clicking here.

Currently, there is no statute of limitations on collecting unpaid taxes owed to the state. The only exception to the 10-year statute of limitations would be instances where the taxpayer willfully filed a false or fraudulent return, in which case there would be no statute of limitations on collecting the unpaid debt. In instances where no return is filed or where an amended return is not filed, the 10-year statute of limitations would commence from when the return was first due.

The bill has been referred to the state’s Committee on Finance. It was introduced by state Rep. Francis Ryan, a Republican. The bill also includes 11 other co-sponsors.