Bill Text: DE HB144 | 2013-2014 | 147th General Assembly | Draft
Bill Title: An Act To Amend Title 30 Of The Delaware Code Relating To Procedure, Administration, And Enforcement Of Taxes.
Spectrum: Moderate Partisan Bill (Democrat 9-2)
Status: (Passed) 2013-07-24 - Signed by Governor [HB144 Detail]
Download: Delaware-2013-HB144-Draft.html
SPONSOR: |
Rep. Keeley & Sen. McDowell |
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HOUSE OF REPRESENTATIVES 147th GENERAL ASSEMBLY |
HOUSE BILL NO. 144 |
AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PROCEDURE, ADMINISTRATION, AND ENFORCEMENT OF TAXES. |
Section 1.Amend Section 501, Title 30 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
§501. Application of this chapter.
For
tax periods beginning on or after January 1, 1992, Eexcept
where in conflict with a specific provision within another chapter of this
title or, where applicable, a specific provision of Title 4 or Title 16 or a
rule of the Delaware Alcoholic Beverage Control Commission, this chapter shall
govern the administration, procedures and enforcement of the State revenue laws
provided for under Chapters 11, 13, 15, 19, 20, 21, 23, 25, 27, 29, 30, 33,
41, 43, 53, 54, 55, 61 and 63 of this title; §§3004 and 3005 Parts II,
III, IV (except Chapters 51 and 52), V, and VI of this title; subchapter
VII of Chapter 5 of Title 4; and Chapter 101 of Title 16.
Section 2.Amend Section 534(c), Title 30 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
(c)(1) For tax periods
beginning after December 31, 1999, if any partnership pass-through
entity required to file a return under §1174(a) §1605(a)(1)
of this title [repealed] for any taxable year fails to file such return
by the date prescribed therefor (determined with regard to any extension of
time for filing) or files a return which fails to show the information required
under §1174(a) 1605(a)(1) of this title [repealed], such partnership
pass-through entity shall be liable for a penalty determined under
paragraph (c)(2) of this section for each month, or fraction thereof, during
which such failure continues (but not to exceed 5 months), unless it is shown
that such failure was due to reasonable cause.
(2) For purposes
of paragraph (c)(1) of this section, the amount of penalty for any month is the
product of $25, multiplied by the number of persons who were partners members
in the partnership pass through entity during any part of the
taxable year; provided, however, that the maximum penalty for any taxable year
shall not exceed $10,000.
(3) The penalty
prescribed by this subsection shall be assessed against and shall be payable by
the partnership pass-through entity, and the deficiency and appeal
procedures provided in §§521-526 of this title shall not apply; provided,
however, that the Director shall mail written notice of such penalty to the partnership
pass-through entity, which may, within 60 days from the date of the
mailing of such notice, institute a protest of such penalty to the Director,
whose determination shall be final.
Section 3.Amend Section 534(d), Title 30 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
(d)(1) If any
partnership required to file a return or 1 or more Schedules K-1 under §
1174(b) of this title [repealed] for any taxable year fails to file such return
or Schedules K-1 by the date prescribed therefor (determined with regard to any
extension of time for filing), such partnership shall be liable for a penalty
determined under paragraph (d)(2) of this section for each month, or fraction
thereof, during which such failure continues (but not to exceed 5 months),
unless it is shown that such failure was due to reasonable cause.
(2) For
purposes of paragraph (d)(1) of this section, the amount of penalty for any
month is $25, multiplied by the number of Schedules K-1 required to have been
filed under §1174(b) of this title [repealed]; provided, however, that the
maximum penalty for any taxable year shall not exceed $10,000.
(3) The
penalty prescribed by this subsection shall be assessed against and shall be
payable by the partnership, and the deficiency and appeal procedures provided
in §§521-526 of this title shall not apply; provided, however, that the
Director shall mail written notice of such penalty to the partnership, which
may, within 60 days from the date of the mailing of such notice, institute a
protest of such penalty to the Director, whose determination shall be final.
(d) (1) For
tax periods beginning after December 31, 1999, if any pass-through entity fails
to comply with the provisions of §1605(a)(2) of this title, such pass-through
entity shall be liable for a penalty determined under paragraph (d)(2) of this
section for each month, or fraction thereof, during which such failure
continues (but not to exceed 5 months), unless it is shown that such failure
was due to reasonable cause.
(2) For purposes of paragraph (d)(1) of this section, the amount of penalty for any month is $25, multiplied by the number of persons who were members of the pass-through entity at any time during the tax year, provided, however, that the maximum penalty for any taxable year shall not exceed $10,000.
(3) The penalty prescribed by this subsection shall be assessed against and shall be payable by the pass-through entity and the deficiency and appeal procedures provided in §§521-526 of this title shall not apply; provided, however, that the Director shall mail written notice of such penalty to the pass-through entity, which may, within 60 days from the date of the mailing of such notice, institute a protest of such penalty to the Director, whose determination shall be final.
Section 4.Amend Section 534(i), Title 30 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
(i) For tax
periods beginning after December 31, 1994, Wwith
respect to any return, the amount of the addition to the tax under subsection
(a) of this section shall be reduced by the amount of the addition to the tax
under subsection (b) of this section for any month (or fraction thereof) to
which an addition to the tax is applied under both subsections (a) and (b) of
this section. In any case described in former subsection (h) [now repealed]
of this section, the amount of the addition to the tax under subsection (a) of
this section shall not be reduced under the preceding sentence below the amount
provided in former subsection (h) [now repealed] of this section.
Section 5. Amend Section 535(e), Title 30 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
(e) For tax
periods beginning after December 31, 1999, Aany
person required under this title to collect, account for and pay over any tax
imposed by this title, other than §3002 and Chapters 51 and 52 of this title,
who wilfully fails to collect or truthfully account for and pay over such tax,
or wilfully attempts in any manner to evade or defeat any such tax or the
payment thereof, shall, in addition to other penalties provided by law, be
liable for a penalty equal to the total amount of the tax evaded, or not
collected or not accounted for and paid over. No addition to tax under subsection
(a) of this section shall be imposed for any action or failure to act to which
this subsection applies. The term "person" as used in this
subsection, includes an officer or employee of a corporation, or a member,
officer or employee of a partnership pass-through entity, as
defined in § 1601 of this title, who, as such officer, employee, or
member is under a duty to perform the act in respect of which the violation
occurs.
Section 6. If any clause, sentence, section, provision or part of this Act shall be adjudged to be unconstitutional or invalid for any reason by any court of competent jurisdiction, such judgment shall not impair, invalidate, or affect the remainder of this Act, which shall remain in full force and effect.
SYNOPSIS
This Act clarifies and reaffirms the General Assembly's intent that the Division of Revenue has a single set of rules found in Chapter 5 of Title 30 governing how it administers, enforces, and collects State taxes. Before 1992, the laws declaring the procedures, administration, and enforcement of the laws administered and enforced by the Division of Revenue were interspersed throughout more than two dozen chapters of Title 30 of the Delaware Code. In an effort to simplify and streamline administration, and with the stated intent to,"create a new Chapter 5, into which the provisions for administration, enforcement, and collection of most of the State revenue can be consolidated" and, "…provide one set of rules applicable to all types of tax collected by the Division which will govern the actions of the Division of Revenue and protect the rights of the taxpayer," the General Assembly consolidated into a new Chapter 5 one set of procedural rules intended to apply to all the taxes collected by the Division of Revenue.(68 Del. Laws, c. 187, §1)Since that time, changes in Chapter 5 and other Chapters of Title 30 have not always been consistently coordinated, resulting in unintended gaps in the code. By substituting a broader classification of statutes (i.e. "Parts" of Title 30 instead of "Chapters"), Section 1 of this Act clarifies that the General Assembly intended that the provisions of Title 30, Chapter 5 of the Delaware Code relating to taxpayer's rights of procedural due process and the administration and enforcement of the revenue laws of this State apply to all statutes relating to taxes, credits, deductions, exclusions and exemptions administered by the Department of Finance, Division of Revenue as they have existed and may from time to time in the future be amended. Sections 2 and 3 of this Act substitute references to entities and existing subsections of the Delaware Code for the references and subsections that have been replaced or repealed. Section 4 of this Act deletes a cross-reference to a now-repealed provision of the Delaware Code. Section 5 of this Act clarifies the definition of "person" for purposes of § 535(e) of Title 30 to ensure that the provision applies to pass-through entities, as defined in § 1601 of Title 30. |