Section 3402-502 - Examination of returns; assessment of tax refundsA. As soon as practicable after the return is filed, the department shall examine it and assess the tax.B. If the amount of tax, as assessed, shall be greater than the amount theretofore paid, the additional assessment shall be paid by the taxpayer to the department within ten days after a notice of the amount of such additional tax, as assessed, shall be mailed to the taxpayer by the department. In such case, if the return is made in good faith, and the understatement of the amount in the return is made in good faith, there shall be no interest or penalty because of such understatement, provided the deficiency be paid, or notice of an intention to file a petition for a reassessment, or to appear and be heard as herein provided, shall be given within ten days after notice of the amount is mailed to the taxpayer. If payment is not made within ten days, and if no notice of an intention to file a petition for a reassessment, or to appear and be heard is given to the department within ten days as herein provided, there shall be added to the amount of the deficiency five per centum thereof, and, in addition, interest at the rate of one per centum per month for each month or fraction thereof, from the date of such notice to the date of payment. If the understatement is false or fraudulent within intent to evade the tax, the tax, on the additional income, discovered to be taxable and assessed by the department shall be double, and an additional one per centum shall be added to the amount so due for each month or fraction of a month from the date the tax was originally due to the date of payment.C. If the amount of tax as assessed by the department shall be less than the amount paid by the taxpayer, the excess shall be refunded upon written application, by the department, with the approval of the Board of Finance and Revenue, out of the moneys in the State School Fund to the credit of the school district income tax account. As much of the moneys, from time to time, standing to the credit of the school district income tax account of the State School Fund, as may be necessary, is hereby appropriated to the department for the purpose of making refunds as herein authorized. Estimates of the amounts to be expended from this account for refunds, from time to time, by the department shall be submitted to the Governor for his approval or disapproval as in the case of other appropriations to administrative departments, boards, and commissions; and it shall be unlawful for the Auditor General to honor any requisition of the department for the expenditure of moneys hereunder in excess of the estimates approved by the Governor.
1935, July 12, P.L. 970, No. 314, art. V, § 502.