NFIB applauds House for passing HB 17, hopes Senate does the same
HARRISBURG, Sept. 19, 2019 –NFIB in Pennsylvania recognized the state House of Representatives today for passing HB 17, an important bill that will help prevent tax “gotchas” for small businesses.
The bill, HB 17, sponsored by state Representative Frank Ryan (R-Lebanon), has been strongly supported by NFIB through the committee and full State House consideration and voting process. The bill provides a 10-year time limit for the Pennsylvania Department of Revenue to collect assessed personal income tax. Under current law, the state has an unlimited number of years it can look back to collect taxes it claims are owed by small businesses. As a result, business owners can receive notices years later claiming they owe the Commonwealth assessed tax, often with added penalties.
“NFIB has heard stories in recent years from small business owners who were shocked to receive notices claiming they owe tax from more than 20 years ago. Of course, this is long after they have disposed of files that would help them argue their case,” said State Director Gordon Denlinger. “Many times, these notices relate to a time when a parent or grandparent owned the family business and the current owner has no way to dispute the state’s claims.”
The 10-year tax collection window provided in HB 17 would provide sufficient time for the state to collect taxes due, but it would also provide conformity with federal tax law and much-needed certainty for small businesses on tax collection processes including how long to retain tax records.
“Most importantly,” said Denlinger, “the bill would prevent the ‘gotcha’ moment that has caused tax, legal, and financial distress for many small businesses, handicapped in their ability to defend themselves after so many years.”
NFIB applauds the passage of HB 17 in the Pennsylvania House of Representatives and encourages the Pennsylvania State Senate to take up consideration of the bill in an expedited timeframe.
