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
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," in personal income tax, further providing for
examination.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 355 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is amended to read:
Section 355. Examination.--The department, or any agent
authorized in writing by it, is hereby authorized to examine the
books, papers and records of any taxpayer or supposed taxpayer,
and to require the production of a copy of his return as made to
and filed with the Federal Government, if one was so made and
filed in order to verify the accuracy of any return made, or if
no return was made, to ascertain and assess the tax imposed by
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this article. The department or an agent of the department shall
examine in person, at the physical location of the taxpayer, any
requested books, papers and records if the requested books,
papers and records comprise twenty-five pages or more in total.
The department shall provide the taxpayer written notification
of an in-person examination of the requested books, papers and
records fourteen business days prior to the in-person
examination. Every such taxpayer or supposed taxpayer is hereby
directed and required to give to the department or its duly
authorized agent the means, facilities and opportunity for such
examinations and investigations as are hereby provided and
authorized. The department is hereby authorized to examine any
person under oath concerning any income which was or should have
been returned for taxation, and to this end may compel the
production of books, papers and records and the attendance of
all persons, whether as parties or witnesses, whom it believes
have knowledge of such income. The procedure for such hearing or
examination shall be the same as that provided by the act of
April 9, 1929 (P.L.343, No.176), known as "The Fiscal [Code"]
Code," relating to inquisitorial powers of fiscal officers.
Section 2. This act shall take effect in 60 days.
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