Section 10003.23 - Collection of Assessed Taxes.(a) The following shall apply: (1) For a tax administered by the Department of Revenue, except under Article XXI, the Department of Revenue may collect the tax owed if collection commences within ten years of the date the settlement, determination or assessment of the tax becomes final. For nonfiled returns, the Department of Revenue shall induce the filing of a return or settle, determine or assess the tax liability of a nonfiled tax period within ten years of the tax return due date. The filing of a tax lien shall not extend the ten-year period to collect a tax.(2) Paragraph (1) shall not affect the Department of Revenue's ability to set off tax overpayments by the taxpayer against any taxes and other obligations owing the Commonwealth by the taxpayer or to set off tax liabilities owed to the Commonwealth with moneys owed the taxpayer by the Commonwealth within the applicable collection period.(b) The following shall apply: (1) The Department of Revenue shall have no time limitation to collect taxes in the following cases: (i) For trust fund tax liabilities a taxpayer either collected or withheld, as an agent of or in trust for the Commonwealth, but wilfully failed, grossly neglected or refused to remit to the Commonwealth notwithstanding whether the taxpayer filed a return.(ii) If a taxpayer files a false and fraudulent tax return or report.(iii) If a taxpayer wilfully fails to file a tax return or report as required by law.(iv) If a taxpayer attempts to evade or defeat a tax.(v) For a tax offense for which a taxpayer has been criminally charged and convicted in which tax liabilities remain unpaid.(vi) For liabilities of eligible taxes unknown to the Department of Revenue that have not been extinguished under subsection (a) prior to the commencement of the tax amnesty period of a subsequently enacted or approved tax amnesty program administered by the Department of Revenue.(2) The collection expiration date shall be tolled for the time when any of the following events are pending, plus one year: (i) During a bankruptcy or proceeding during which the taxpayer's assets are in the control or custody of an administrative body, court or duly appointed guardian, receiver or trustee.(ii) The period during which a taxpayer's offer-in-compromise is under consideration by the Department of Revenue.(iii) The duration of an installment agreement or deferred payment plan between the taxpayer and the Department of Revenue.(iv) The duration, from commencement through final determination, of a proceeding which constitutes a tax appeal or which opposes a collection action before an administrative tribunal or court of law or in which the taxpayer has filed a lawsuit or brought a cause of action against the Department of Revenue.(v) The duration of a taxpayer's military service for which the taxpayer is eligible for and has received a Federal extension.(vi) For a period of time as the taxpayer and the Department of Revenue may agree, in writing, to extend the collection expiration date.(c) As used in this section, the following words and phrases shall have the meanings given to them in this subsection: "Tax." A tax, interest, addition to tax, penalty, fee and other cost, including the cost of collection.
Added by P.L. TBD 2019 No. 90, § 3, eff. 1/1/2021.