PA INCOME TAX STATUTE

I am a resident of Pennsylvania and have gotten a notice from the Dept. of Revenue that they have not received our taxes from capital gains for 1992 when we sold our home. I called them and was told that it was all straightened out. Last week we received a letter from them stating that they will offset our IRS refund this year because we owe PA Personal Income Tax from 1992. They say we owe over $5300 now. All of our paperwork was destroyed when our bathroom pipes broke and flooded the basement a few years back, so we have no proof that we paid the tax. Can the state go back that far? What is the statute? And if they can go back that far, is there some way I can get a copy of my taxes from them, even if I have to pay? I only have 8 days until they will request the offset against my federal taxes this year.

The general rule is that Pennsylvania may only assess any tax within three years after the return was filed (Sec. 348, Act of March 4, 1971, [72 P.S. §7348] ; Reg. Sec. 119.14 ). However, the following exceptions apply

(1)If more than 25% of includable income is omitted from the amount reported in a return, the tax may be assessed within six years after the return was filed (Reg. Sec. 119.15 ).

(2)In the case of a false or fraudulent return with the intent to evade any tax, the tax may be assessed, or a proceeding in court for the collection of the tax may be begun without assessment, at any time after the false or fraudulent return is filed (Reg. Sec. 119.16 ).

(3)In the case of a willful attempt to defeat or evade any tax imposed, the tax may be assessed, or a proceeding in court for the collection of the tax may be begun without assessment, at any time.

(4)In the case of a failure to file a return, the tax may be assessed, or a proceeding in court for the collection of the tax may be begun without assessment, at any time after the date prescribed for filing the return.

If none of the exceptions apply, then they have no right to assess you now.

I couldn’t find the procedure for asking for a copy of your tax return; I would suggest you call the Department of Revenue and ask how to request the form.