|SB 0910||Allows abatement and prospective application of taxes in certain situations|
|LR Number:||2636S.01I||Fiscal Note:||2636-01|
|Committee:||Ways and Means|
|Last Action:||05/17/02 - S Inf Calendar S Bills for Perfection||Journal page:|
|Effective Date:||August 28, 2002|
SB 910 - This act authorizes the Department of Revenue (DOR) and the Administrative Hearing Commission (AHC) to abate all or part of the tax liability of a taxpayer in certain situations, including those situations in which:
1. The taxpayer fails to collect, account for or pay a tax which others in the same industry or occupation also failed to pay, perhaps due to miscommunication between DOR and a specific industry or profession about the taxability of a certain event or transaction; 2. The taxpayer does not have sufficient ability to pay the entire amount of the tax due; or 3. Collection of the tax would undermine compliance with the tax laws.
The act directs that in situations where DOR or the AHC
grant this type of relief to a taxpayer, the application of the
tax at issue shall be prospective for that taxpayer, such that
the taxability of the event or transaction begins after the DOR
or AHC decision on the issue. In order to qualify for whole or
partial abatement, a taxpayer must agree to several conditions
set forth in the act, such as paying his or her own attorney fees
and expenses. The taxpayer has a right to rely upon agreements
made by the Department of Revenue pursuant to the act.