Bill Text: MS SB2403 | 2013 | Regular Session | Engrossed
Bill Title: Sales and income tax; authorize extensions of examination period by agreement between the Commissioner of Revenue and the taxpayer.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-04-01 - Died In Conference [SB2403 Detail]
Download: Mississippi-2013-SB2403-Engrossed.html
MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Finance
By: Senator(s) Fillingane
Senate Bill 2403
(As Passed the Senate)
AN ACT TO AMEND SECTIONS 27-7-49 AND 27-65-42, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT EXAMINATIONS OF A TAXPAYER'S INCOME AND SALES TAX RETURNS MUST BE COMPLETED BY THE DEPARTMENT OF REVENUE WITHIN THREE YEARS OF THE DUE DATE OR DATE THE RETURN WAS FILED UNLESS THE COMMISSIONER OF REVENUE AND THE TAXPAYER AGREE IN WRITING TO AN EXTENSION OF THE TIME PERIOD FOR THE EXAMINATION OF THE RETURN; TO PROVIDE THAT THE COMMISSIONER AND THE TAXPAYER MAY AGREE TO FURTHER EXTENSIONS OF TIME BY SUBSEQUENT WRITTEN AGREEMENTS IF THE EXTENSIONS ARE ENTERED INTO BEFORE THE EXPIRATION OF THE IMMEDIATELY PRECEDING EXTENSION AGREEMENT; TO AMEND SECTION 27-73-5, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-49, Mississippi Code of 1972, is amended as follows:
27-7-49. (1) Returns shall
be examined by the commissioner or his duly authorized agents within three (3)
years from the due date or the date the return was filed, whichever is later,
and no determination of a tax overpayment or deficiency shall be made by the
commissioner, and no suit shall be filed with respect to income within the
period covered by such return, after the expiration of * * * the three-year period, except as
hereinafter provided in this section and as provided in Section 27-7-307.
(2) * * *
The
commissioner and the taxpayer may, within the three-year examination
period provided in subsection (1) of this section, * * * agree in writing to extend
the time period for examination of a return, for issuance of a determination of
an overpayment or deficiency or for filing of a suit with respect to income
covered by the return. The commissioner and the taxpayer may agree to further
extensions of time by subsequent written agreements if the extensions are
entered into before the expiration of the immediately preceding extension
agreement.
(3) Where the reported
taxable income of a taxpayer has been increased or decreased by the Internal
Revenue Service, the three-year examination period provided in subsection (1)
of this section shall not be applicable, insofar as the Mississippi income tax
liability is affected by the specific changes made by * * * the Internal Revenue Service.
However, no additional assessment or no refund shall be made under the
provisions of this article after three (3) years from the date the Internal
Revenue Service disposes of the tax liability in question.
(4) The three-year examination period provided in subsection (1) of this section shall not be applicable in the case of a false or fraudulent return with intent to evade tax.
(5) A taxpayer may apply to the commissioner for revision of any return filed under this article at any time within three (3) years from the due date, or if an extension of time to file was granted, three (3) years from the date the return was filed. If the return is not filed by the time authorized by the extension, then the three (3) years begin to run from the final day of the extension period. Agreements to extend the time for an examination shall also extend the time for which a taxpayer may apply for a refund or otherwise amend the return.
(6) Where the reportable taxable income of a taxpayer has been decreased by the carryback of a net casualty loss deduction under Section 27-7-20 or the carryback of a net operating loss deduction under Section 27-7-17, the three-year examination period provided under subsection (1) of this section shall not be applicable insofar as the Mississippi income tax liability is affected by the carryback of the net casualty loss deduction or the carryback of the net operating loss deduction.
SECTION 2. Section 27-65-42, Mississippi Code of 1972, is amended as follows:
27-65-42. (1) The
amount of taxes due on any return which has been filed as required by this
chapter shall be determined and assessed within thirty-six (36) months from the
date * * * the
return was filed * * *. However, the
commissioner and the taxpayer may, within the thirty-six (36) month examination
period, agree in writing to extend the time period for examination of returns,
for issuance of a determination of an overpayment or deficiency or for filing
of a suit with respect to income covered by the return. The commissioner and
the taxpayer may agree to further extensions of time by subsequent written
agreements if the extensions are entered into before the expiration of the
immediately preceding extension agreement.
(2) When an
examination of a taxpayer's records to verify returns made under this chapter
has been initiated and the taxpayer notified * * * of the examination, either by
certified mail or personal delivery by an agent of the commissioner, within the
thirty-six-month examination period provided * * * for in subsection (1) of this
section, the determination of the correct tax liability may be made by the
commission within one (1) year after the expiration of * * *
the thirty-six-month
examination period * * *.
(3) When a false or fraudulent return has been filed with the intent to evade tax or in case no return has been filed, the amount of tax due may be determined, assessed and collected and suit or proceedings for the collection of the tax may be begun at any time after it becomes due.
(4) A taxpayer may
apply to the commissioner for revision of the tax assessed against him, or paid
by him, at any time within thirty-six (36) months * * * from the
date the return was filed, within the one-year period provided for in
subsection (2) of this section or within the time period extension agreed to by
the commissioner and the taxpayer as provided for in subsection (1) of this
section. Unless a claim for credit or refund is filed by the taxpayer
within thirty-six (36) months from the time the return was filed or assessment
made, within the one-year period provided for in subsection (2) of this
section or within the time period extension agreed to by the commissioner and
the taxpayer as provided for in subsection (1) of this section, no credit
or refund shall be allowed.
SECTION 3. Section 27-73-5, Mississippi Code of 1972, is amended as follows:
27-73-5. Except as
otherwise provided in Sections 27-7-49 and 27-65-42, all suits by any
taxpayer for the recovery of any privilege, income, franchise, or other excise
tax, and all applications or proceedings for any refund or credit of * * *
these taxes shall be
filed or made within three (3) years next after the return was filed, or from
the date the assessment of the tax was made, or from the date the tax was paid,
as the case may be, whichever is the earlier, and no recovery of taxes under
any such suit shall be had and no refund of taxes shall be made unless such
suit or application was filed within * * * this period of limitation.
* * * However, as to income taxes the
three-year (3) statute of limitations shall be extended to six (6) years in
cases where the reported net income of a taxpayer has been reduced by the * * *
Internal
Revenue Service for any taxable period.
SECTION 4. This act shall take effect and be in force from and after July 1, 2013, and shall be repealed from and after June 30, 2013.
