Article VII: ENFORCEMENT PROCEEDINGS
--------------------------------------------------------------------------------

Section 7.01. Suit for Collection of Tax.

A. The Earned Income Tax Administrator may sue in the name of the taxing district for the recovery of taxes due and unpaid under this resolution or ordinance.

B. Any suit brought to recover the tax imposed by the ordinance or resolution shall be begun within three (3) years after such tax is due or within three (3) years after the return has been filed, whichever date is later; provided, however, that this limitation shall not prevent the institution of a suit for the collection of any tax due or determined to be due in the following cases:

1. Where no return was filed by any person, although a return was required to be filed by him under provisions of the ordinance of resolution, there shall be no limitation.

2. Where an examination of the return filed by any person, or of other evidence relating to such return in the possession of the Tax Collector, reveals a fraudulent evasion of taxes, there shall be no limitation.

3. In the case of substantial understatement of tax liability of twenty-five percent (25%) or more, and no fraud, suit shall be begun within six (6) years.

4. Where any person has deducted taxes under the provisions of the Ordinance or Resolution, and has failed to pay the amounts so deducted to the Earned Income Tax Administrator, or where any person has willfully failed or omitted to make the deductions required by this section, there shall be no limitation.

5. This section shall not be construed to limit the governing body from recovering delinquent taxes by other means provided by this act.

C. The Earned Income Tax Administrator may sue for recovery of an erroneous refund provided such suit is begun two (2) years after making such refund, except that the suit may be brought within five (5) years if it appears that any part of the refund was induced by fraud or misrepresentative of material fact.

D. Where suit is brought for the recovery of any unpaid and/or delinquent earned income tax, the person liable therefore shall, in addition, be liable for the costs of collection and interest and penalties imposed.

COMMENT: The statute of limitations, and exceptions thereto, set forth in Section 7.01(B) of these Rules and Regulations, comes from 53 P.S. Section 6913(VII)(b) directly. Note that these limitations and exceptions thereto apply only to the prosecution of earned income tax cases, and do not apply to the other Act 511 taxes. Note that Section 7.01(D) permits the recovery of costs of collection and penalties and interest in the prosecution of earned income tax cases; this is permissible under Act 511, 53 P.S. Section 6913(VIII). See 53 P.S. Section 6913(VIII) which permits the recovery of costs of collection, penalties and interest where suit is brought for the recovery of earned income taxes.

Section 7.02. Wage Attachments.

A. The Earned Income Tax Administrator shall demand, receive and collect from all corporations, political subdivisions, associations, companies, firms or individuals employing persons owing delinquent earned income taxes, or whose spouse owes delinquent earned income taxes, or having in possession unpaid commissions or earnings belonging to any person or persons owing delinquent earned income taxes, or whose spouse owes delinquent earned income taxes, upon the presentation of a written notice and demand under oath or affirmation, containing the name of the taxable or the spouse thereof, and the amount of tax due. Upon the presentation of such written notice and demand, it shall be the duty of any such corporation, political subdivision, association, company, form or individual to deduct from the wages, commissions, or earnings of such individual employees, then owing or that shall within sixty (60) days thereafter become due, or from any unpaid commissions, or earnings of any such taxable in its or his/her possession, or that shall within sixty (60) days thereafter come into its or his/her possession, a sum sufficient to pay the respective amount of the delinquent earned income taxes, and costs shown upon the written notice or demand, and to pay the same to the Earned Income Tax Administrator within sixty (60) days after such notice shall have been given. Such corporation, political subdivision, association, firm or individual shall be entitled to deduct from the moneys collected from each employee the costs incurred from the extra bookkeeping necessary to record such transactions, not exceeding two percent (2%) of the amount of money so collected and paid over to the Earned Income Tax Administrator. Upon the failure of any such corporation, political subdivision, association, company, firm or individual to deduct the amount of such taxes or to pay the same over to the Earned Income Tax Administrator, less the cost of bookkeeping involved in such transaction, or herein provided, within the time hereby required, such corporation, political subdivision, association, company, firm or individual shall forfeit and pay the amount of such tax for each such taxable whose taxes were not withheld and paid over, or that are withheld and not paid over together with a penalty of ten percent (10%) added thereto, to be recovered by an action of assumption in a suit to be instituted by the Earned Income Tax Administrator or by the proper authorities of the taxing district, as debts of like amount are now by law recoverable, except that such person shall not have the benefit of any stay of execution or exemption law.

B. Upon presentation of a written notice and demand under oath an affirmation, to the State Treasurer or any other fiscal officer of the State, or its boards, authorities, agencies or commissions, it shall be the duty of the treasurer or officer to deduct from the wages then owing, or that shall within sixty (60) days thereafter become due to any employee, a sum sufficient to pay the respective amount of the delinquent earned income tax and costs shown on the notice; the same shall be paid to the Income Tax Officer within sixty (60) days after such notice is given.

C. The Income Tax Officer shall, at least fifteen days prior to the presentation of written notice and demand in Section 7.02(A) or (B), notify the delinquent taxpayer by registered or certified mail that said written notice and demand shall be presented to his employer unless said tax is paid. The return receipt card for said mailing shall be marked to the addressee only and the costs for said notification shall be added to the costs of collection.

COMMENT: See 53 P.S. Section 6919 which permits wage attachments for earned income taxes. 53 P.S. Section 6920 permits wage attachments to be taken against employees of the Commonwealth of Pennsylvania. The requisite fifteen (15) day notice set forth in Section 701(C) is required by 53 P.S. Section 6920.1

Section 7.03 Distress Sales.

A. The tax collector shall have power, in case of the neglect or refusal of any person, co-partnerships, association, or corporation, to make payment of the amount of any tax due by him, after two months from the date of the tax notice, to levy the amount of such tax, any penalty due thereon, and costs, not exceeding costs and charges allowed constables for similar services by distress and sale of the goods and chattels of such delinquent, wherever situate or found, upon giving at least ten days public notice of such sale, by posting ten written or printed notices, and by one advertisement in a newspaper of general circulation published in the county.

B. No failure to demand or collect any taxes by distress and sale of goods and chattels shall invalidate any return made, or lien filed for non-payment of taxes, or any tax sale for the collection of taxes.

C. A taxpayer subject to distraint for delinquent taxes has the right, within ten (10) days after the date of the levy, to appear at the office of the district magistrate in the district in which the goods and chattels are located and demand a hearing on the merits of the claim.

COMMENT: See, Section 18 of the LTEA, 53 P.S. § 6918 and Section 17 of the Local Tax Collection Law, 72 P.S. § 5511.17.