HB1552

Pennsylvania HB1552 amends the Tax Reform Code of 1971 to impose penalties on frivolous sales and use tax refund claims.

Pennsylvania HB1552 amends the Tax Reform Code of 1971 by adding provisions for penalties on frivolous refund claims. A claim for refund is subject to a penalty if it is incomplete, includes a purchase for which an earlier claim has already been filed, lacks a reasonable basis in law or fact, or if the taxpayer fails to provide proof that the tax was paid. The penalty is five percent of the refund amount for materially incomplete claims and ten percent for duplicative or baseless claims. The penalty applies only to claims totaling five thousand dollars or more.