HB 959 -- Taxpayer Rights

Sponsor:  Patek

This bill changes various provisions related to the rights and
remedies of taxpayers for appeals to the Administrative Hearing
Commission on matters of taxation.

The bill requires that all state tax laws are to be strictly
construed against the taxing authority, which bears the ultimate
burden of proof.  The bill also:

(1)  Allows the taxpayer to choose the method and time frame for
reconstructing income for an audit by the Department of Revenue,
unless the department can show that the taxpayer's method would
result in material misstatement of income (less than 50% of
income derived by an accepted alternative method);

(2)  Requires audit findings of the Department of Revenue to be
accompanied, if requested in writing by the taxpayer, by a
statement of legal principles relied upon by the auditor.
Collection of any amount based on an invalid rule or regulation
is required to be refunded to the taxpayer with interest, along
with attorney's fees;

(3)  Requires auditors assigned to an audit to spend no less
than 75% of their work time to completion of that audit;

(4)  Allows a taxpayer for whom a tax has been collected to
receive a refund even if the collecting party does not file for
one;

(5)  Requires refunds to be paid in a lump sum regardless of the
filing status of the taxpayer;

(6)  Requires all tax refund requests to be processed, and a
written confirmation or denial mailed, within 30 days of receipt
of the request;

(7)  Applies the same innocent spouse protections for state
income tax returns as apply to federal income tax returns;

(8)  Subjects all agents and employees of the Department of
Revenue to the same provisions of the Fair Debt Collection
Practices Act as apply to the Internal Revenue Service due to
the Restructuring and Reform Act of 1998.  Taxpayers are given
standing to bring a civil action for damages for any collection
practice which violates those provisions.