Bill Text: MS SB2675 | 2012 | Regular Session | Enrolled
Bill Title: Business closure; authorize for failure to file tax returns or pay taxes.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Vetoed) 2012-05-03 - Veto Referred To Finance [SB2675 Detail]
Download: Mississippi-2012-SB2675-Enrolled.html
MISSISSIPPI LEGISLATURE
2012 Regular Session
To: Finance
By: Senator(s) Fillingane
Senate Bill 2675
(As Sent to Governor)
AN ACT TO PROVIDE A METHOD FOR THE CLOSURE OF BUSINESSES IN MISSISSIPPI FOR THE FAILURE OF A TAXPAYER TO FILE A TAX RETURN, FAILURE TO PAY A FINALLY DETERMINED TAX LIABILITY AND/OR FAILURE TO CEASE OPERATION OF A BUSINESS AFTER A LICENSE, PERMIT OR OTHER AUTHORIZATION TO OPERATE THE BUSINESS HAS BEEN REVOKED BY THE MISSISSIPPI DEPARTMENT OF REVENUE; TO PROVIDE NOTICE TO TAXPAYERS THAT FAILURE TO MEET CERTAIN CONDITIONS WILL RESULT IN THE CLOSURE OF THE TAXPAYER'S BUSINESS; TO PROVIDE THAT IF CLOSURE OF THE TAXPAYER'S BUSINESS IS AUTHORIZED UNDER ANY OF THE CIRCUMSTANCES PROVIDED FOR IN THIS ACT AND NOTICE HAS BEEN GIVEN, THE COMMISSIONER OF REVENUE MAY ORDER THE CLOSURE OF THE BUSINESS AND PLACE A LOCK ON ALL ENTRANCES TO THE BUSINESS OR OTHERWISE SECURE THE BUSINESS SO THAT THE BUSINESS IS PHYSICALLY INACCESSIBLE AND MAY NOT BE OPERATED; TO REQUIRE THE COMMISSIONER OF REVENUE TO AFFIX A CLOSURE ORDER TO ALL ENTRANCES OF THE BUSINESS; TO AUTHORIZE THE DISCLOSURE OF CERTAIN INFORMATION; TO PROVIDE THE MANNER IN WHICH CLOSURE MAY BE AVOIDED AND TO PROVIDE FOR THE REOPENING OF A CLOSED BUSINESS; TO AMEND SECTIONS 27-3-73, 27-7-83, 27-13-57, 27-65-81 AND 27-77-15, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Short title. This act may be cited as the Mississippi Business Closure Law.
SECTION 2. Purpose and scope. (1) The purpose of this act is to provide a method for the closure of businesses in Mississippi for the failure of a taxpayer to file a tax return, failure to pay a finally determined tax liability and/or failure to cease operation of a business after a license, permit or other authorization to operate the business has been revoked by the Mississippi Department of Revenue.
(2) The scope of this chapter is limited to businesses physically located within the State of Mississippi.
SECTION 3. Definitions. As used in this act:
(a) "Business closure" or "closure of a business" means any act of physical restraint that makes the location of a business enterprise inaccessible to any person other than a person given permission to enter such premises by the commissioner.
(b) "Closure order" means the order issued by the commissioner ordering the closure of a business and which is also affixed to the entrances of the business.
(c) "Commissioner" means the Commissioner of Revenue of the Mississippi Department of Revenue or his authorized agent.
(d) "Debtor" or "judgment debtor" means a taxpayer or other person against whom there is an unpaid finally determined tax liability collectible by the department.
(e) "Department" means the Mississippi Department of Revenue.
(f) "Finally determined tax liability" means any state tax, fee, penalty, and/or interest owed by a debtor to the department where the assessment of the liability is not subject to any further timely filed administrative or judicial review.
(g) "Last-known address of the debtor" means the address of the debtor appearing on the records of the department for which the finally determined tax liability was assessed at the time the notice of tax lien is sent by the department to the Office of the Secretary of State or a county circuit clerk's office.
(h) "Taxpayer" means an individual, business, organization or legal entity obligated to file a tax return and pay taxes of any kind as required by the laws of the State of Mississippi.
SECTION 4. Authority. In addition to all other remedies provided by law for the collection of unpaid taxes, the commissioner may order the closure of the business of a taxpayer under the following circumstances:
(a) A license, permit, or other authorization to operate the business has been revoked by the department, and the business continues to operate;
(b) A taxpayer fails to pay a finally determined tax liability, then, in the discretion of the commissioner, business closure may be utilized following enrollment of a lien and an unsuccessful attempt to collect the finally determined tax liability through other collection methods available to the department; and/or
(c) In the discretion of the commissioner, following the failure of the taxpayer to file a tax return as required by the laws of the State of Mississippi for any and all taxes administered by the department for which the taxpayer is obligated.
SECTION 5. Notice. (1) The commissioner shall give notice to the noncompliant taxpayer that the taxpayer's failure to do one or more of the following will result in the closure of the business:
(a) File the required tax return;
(b) Pay a finally determined tax liability;
(c) Cease operation of the business after a license, permit or other authorization to operate the business has been revoked.
(2) The notice shall be in writing and delivered to the noncompliant taxpayer via hand delivery or United States Postal Service regular mail.
(3) The notice shall contain the following:
(a) Identification of the business to be closed;
(b) The reason for the closure including the amount of taxes, interest, penalty, and administrative fees due, if applicable;
(c) Notification that the business will be closed on or after ten (10) calendar days from the date of the notice; and
(d) The means by which the closure can be avoided.
SECTION 6. Procedures. (1) (a) If closure of the business is authorized under any of the circumstance provided for in Section 4 of this act, and notice has been given as provided for in Section 5 of this act, the commissioner may, on or after ten (10) calendar days from the date of the notice, order the closure of the business and place a lock on all entrances to the business or otherwise secure the business so that the business is physically inaccessible and may not be operated.
(b) Any person who refuses to leave the business when directed to do so by the commissioner when he is locking or otherwise securing the business under a closure order and/or who otherwise interferes with the closure of a business under this section, shall be guilty of a misdemeanor and, upon conviction, be punished as provided in Section 99-19-31.
(2) (a) The commissioner shall affix a closure order to all entrances of the business. The closure order shall identify the name of the business, advise that the business is subject to business closure pursuant to authority of the commissioner and state that the business is prohibited from further operation. The closure order shall also provide the name and contact information of the authorized agents of the department that can be contacted regarding the closure.
(b) Any person who blocks, defaces, alters or removes a closure order affixed to the entrances of a business without prior approval of the commissioner shall be guilty of a misdemeanor, and upon conviction, punished as provided in Section 99-19-31.
(3) The provisions of this act apply to a business located in or operated out of a building located on the real property on which the taxpayer's residence is located but that is separate from the actual residence of the taxpayer. The continued operation of the business at or out of a separate building or from any other location after the posting of the closure order shall be prohibited. The provisions of this act do not apply to any business located in or operated out of the actual residence of a taxpayer.
(4) The commissioner may, in his discretion, request the assistance of any state or local law enforcement official to post the closure order or to secure the business as authorized in this section.
(5) (a) Any person who enters the premises of a business that the commissioner has locked or otherwise secured pursuant to the provisions of this act without prior approval of the commissioner shall be guilty of a misdemeanor and, upon conviction, punished as provided in Section 99-19-31. Persons entering the premises under emergency conditions to protect life or property shall be deemed to have the prior approval of the commissioner for the entry. The owner of the premises, or an employee or agent of the owner who enters the premises for purposes of routine maintenance, shall be deemed to have the prior approval of the commissioner for the entry.
(b) Any person desiring to remove personal property from the premises of a business that the commissioner has locked or otherwise secured pursuant to the provisions of this act shall contact an authorized agent of the commissioner to establish his ownership and/or right to possession of the property and to obtain permission to remove the property.
(6) The commissioner, the department, its employees or agents and/or the State of Mississippi shall not be liable for inventory spoilage or the payment of any fees, charges, rents, leases or utilities incurred by the business during the time of its closure.
(7) The commissioner, the department, its employees or agents and/or the State of Mississippi shall not be liable for any loss of business income incurred by the taxpayer during the time during which the business is closed pursuant to this act.
(8) The commissioner is authorized to disclose the closure and/or impending closure to:
(a) Any state, local or federal law enforcement official;
(b) The municipality and/or county in which the business is located;
(c) Any municipal, county, state or federal agency that has regulatory authority over the type of business being closed;
(d) Any person or entity that the commissioner has a reason to believe has an interest in the business or location being closed, including, but not limited to, the owner of the premises or a secured creditor of the taxpayer; and
(e) Anyone else the commissioner determines has a legitimate need to know of the closure or impending closure of the business.
(9) Any taxpayer information disclosed by the commissioner, the department, and/or its employees or agents under this section shall not be subject to confidentiality laws governing the department.
(10) The commissioner, the department, its employees or agents, and/or the State of Mississippi shall not be liable for any damage sustained to the business as a result of executing the business closure pursuant to this act. Any noncompliant taxpayer shall be barred from bringing any action against the commissioner, the department, its employees or agents, and/or the State of Mississippi for damages sustained as a consequence of executing a business closure.
SECTION 7. Avoidance of closure and reopening. (1) A noncompliant taxpayer may avoid closure of the business by:
(a) Filing all delinquent tax returns and remitting payment in full for any and all unpaid tax liabilities; or
(b) Entering into a satisfactory payment agreement.
(2) A noncompliant taxpayer may cause the business to be reopened by:
(a) Filing all delinquent tax returns and remitting payment in full for any and all unpaid tax liabilities. Upon receipt of filed returns for all periods for which returns are delinquent and payment in full of all unpaid tax liabilities, the department shall cease the closure of the business and remove the closure order, locks or other restraints from the entrances to the business.
(b) Upon entering into a satisfactory payment arrangement with the taxpayer, the department shall cease the closure of the business and remove the closure order, locks or other restraints from the entrances to the business.
(c) Filing an appeal in the chancery court of the county wherein the business is physically located. Upon being served with a copy of the lawsuit and proof of the posting of the required security or bond as required by Section 8 of this act, the department shall cease the closure of the business and remove the closure order, locks or other restraints from the entrances to the business.
(3) Pursuant to subsections (1) and (2) of this section, the commissioner may enter into satisfactory payment agreements with the taxpayers that provide for the full payment of any and all unpaid tax liabilities of the taxpayer. The agreements may provide for a down payment and periodic payments to be made at specific dates. Failure of a noncompliant taxpayer to make timely payments under the payment agreement may result in the commissioner issuing a new closure order and proceeding pursuant to Section 5 of this act.
(4) Notwithstanding subsections (1) and (2) of this section, if the sales tax permit for the business involved in the business closure has been revoked under Section 27-65-27(4), in addition to those requirements set in subsections (1) and (2) of this section, the commissioner may also require the taxpayer to enter into a bond as set out in Section 27-65-27(5) to avoid closure of the business under subsection (1) of this section or to obtain the authority to reopen after closure under subsection (2) of this section.
SECTION 8. Appeal. (1) A taxpayer whose business is closed pursuant to this act may file a lawsuit against the department in the chancery court of the county in which the business is physically located within twenty (20) calendar days following the date of the business closure.
(2) The only issue that may be decided in the lawsuit shall be whether the grounds upon which the business was closed actually occurred. The lawsuit shall be a preference case and tried at the earliest moment compatible with the ends of justice. The appeal process in this section is in addition to the appeal provision provided for in Section 27-77-1 et seq. An appeal under this section does not vest jurisdiction in the chancery court to determine the validity of any tax assessment issued against the taxpayer or the validity of any tax refund claim made by the taxpayer.
(3) In the event of a business closure due to taxpayer's failure to cease operation of a business after a license, permit or other authorization to operate the business has been revoked by the department and/or failure to pay a finally determined tax liability, the taxpayer shall post a bond approved by the clerk of the court, in an amount equal to the amount of all taxes currently due, including penalties and interest, as determined by the department, plus an amount sufficient to cover twice the taxpayer's estimated tax liability for a period of three (3) months, as determined by the department, conditioned to pay the amount of any taxes due by the taxpayer, including penalties and interest, and the amount of any damages, costs and reasonable attorney's fees as may be incurred or suffered by the state as a result of the business closure and the lawsuit if the lawsuit is found to be without merit and dismissed. The bond shall be posted at the time of the filing of the lawsuit and shall be jurisdictional in nature.
(4) In the event of a business closure due to failure to file tax returns, the taxpayer shall give security to the state in such sum as the chancery court deems proper for the payment of any and all unpaid taxes, damages, costs and reasonable attorney's fees as may be incurred or suffered by the state if the lawsuit is found without merit and dismissed. If the taxpayer fails to give the security within the time and in the amount ordered by the chancery court, the taxpayer's lawsuit filed under this section shall be dismissed by the chancery court with prejudice.
(5) In the event that a business is closed for the reasons described in both subsections (3) and (4) of this section, the taxpayer shall only be required to post the bond set out in subsection (4) of this section.
SECTION 9. Authority to promulgate regulations. The commissioner may, from time to time, adopt such rules and regulations, not inconsistent with this act, as he may deem necessary to enforce its provisions.
SECTION 10. Section 27-3-73, Mississippi Code of 1972, is amended as follows:
27-3-73. (1) Except in accordance with proper judicial order, as otherwise provided in this section, as authorized in Section 27-4-3 or as authorized in Sections 1 through 9 of this act, it shall be unlawful for the Commissioner of Revenue, or any deputy, agent, clerk or other officer or employee of the Department of Revenue, to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any report or return required on any taxes collected by reports received by the Department of Revenue. This provision relates to all taxes collected by the Department of Revenue and not referred to in Sections 27-7-83, 27-13-57 and 27-65-81, requiring confidentiality of income tax, franchise tax and sales tax returns. All system edits, thresholds, and any other automated system calculations used by the Department of Revenue in the processing of returns or statistics or used to determine the correct tax due for all taxes administered by the department shall be considered confidential information and may not be divulged or made known. Nothing in this section shall be construed to prohibit the publication of statistics, so classified as to prevent the identification of particular reports or returns and the items thereof, or the inspection by the Attorney General, or any other attorney representing the state, of the report or return of any taxpayer who shall bring action to set aside the tax thereon, or against whom an action or proceeding has been instituted to recover any tax or penalty imposed. Additionally, nothing in this section shall prohibit the Commissioner of Revenue from making available information necessary to recover taxes owing the state pursuant to the authority granted in Section 27-75-16.
The term "proper judicial order" as used in this section shall not include subpoenas or subpoenas duces tecum but shall include only those orders entered by a court of record in this state after furnishing notice and a hearing to the taxpayer and the Department of Revenue. The court shall not authorize the furnishing of such information unless it is satisfied that the information is needed to pursue pending litigation wherein the return itself is in issue, or the judge is satisfied that the need for furnishing the information outweighs the rights of the taxpayer to have such information secreted.
However, information relating to possible tax liability to other states or the federal government may be furnished to the revenue departments of those states or the federal government when the states or federal government grant a like comity to Mississippi.
(2) The State Auditor and the employees of his office shall have the right to examine only such tax returns as are necessary for auditing the Department of Revenue, and the same prohibitions against disclosure which apply to the Department of Revenue shall apply to the State Auditor and his office.
(3) Officers and employees of the Mississippi Development Authority who execute a confidentiality agreement with the Department of Revenue shall be authorized to discuss and examine information to which this section applies at the offices of the Mississippi Department of Revenue. This disclosure is limited to information necessary to properly administer the programs under the jurisdiction of the Mississippi Development Authority. The Department of Revenue is authorized to disclose to officers and employees of the Mississippi Development Authority who execute a confidentiality agreement the information necessary under the circumstances. The same prohibitions against disclosure which apply to the Department of Revenue shall apply to the officers or employees of the Mississippi Development Authority.
(4) Any person who violates the provisions of this section shall be guilty of a misdemeanor and, on conviction thereof, shall be fined not more than One Thousand Dollars ($1,000.00) or imprisoned not more than six (6) months in the county jail, or both.
(5) The Commissioner of Revenue and the Department of Revenue are authorized to disclose to the Child Support Unit and to the Fraud Investigation Unit of the Department of Human Services without the need for a subpoena or proper judicial order the name, address, social security number, amount of income, amount of sales tax, source of income, assets and other relevant information, records and tax forms for individuals who are delinquent in the payment of any child support as defined in Section 93-11-101 or who are under investigation for fraud or abuse of any state or federal program or statute as provided in Section 43-1-23.
SECTION 11. Section 27-7-83, Mississippi Code of 1972, is amended as follows:
27-7-83. (1) Returns and return information filed or furnished under the provisions of this chapter shall be confidential, and except in accordance with proper judicial order, as otherwise authorized by this section, as authorized in Section 27-4-3 or as authorized in Sections 1 though 9 of this act, it shall be unlawful for the Commissioner of Revenue or any deputy, agent, clerk or other officer or employee of the Department of Revenue or the Mississippi Department of Information Technology Services, or any former employee thereof, to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any report or return required. The provisions of this section shall apply fully to any federal return, a copy of any portion of a federal return, or any information reflected on a federal return which is attached to or made a part of the state tax return. Likewise, the provisions of this section shall apply to any federal return or portion thereof, or to any federal return information data which is acquired from the Internal Revenue Service for state tax administration purposes pursuant to the Federal-State Exchange Program cited at Section 6103, Federal Internal Revenue Code. The term "proper judicial order" as used in this section shall not include subpoenas or subpoenas duces tecum, but shall include only those orders entered by a court of record in this state after furnishing notice and a hearing to the taxpayer and the Department of Revenue. The court shall not authorize the furnishing of such information unless it is satisfied that the information is needed to pursue pending litigation wherein the return itself is in issue, or the judge is satisfied that the need for furnishing the information outweighs the rights of the taxpayer to have such information secreted.
(2) Returns and return information with respect to taxes imposed by this chapter shall be open to inspection by or disclosure to the Commissioner of the Internal Revenue Service of the United States, or the proper officer of any state imposing an income tax similar to that imposed by this chapter, or the authorized representatives of such agencies. Such inspection shall be permitted, or such disclosure made, only upon written request by the head of such agencies, or the district director in the case of the Internal Revenue Service, and only to the representatives of such agencies designated in a written statement to the Commissioner of Revenue as the individuals who are to inspect or to receive the return or return information on behalf of such agency. The Commissioner of Revenue is authorized to enter into agreements with the Internal Revenue Service and with other states for the exchange of returns and return information data, or the disclosure of returns or return information data to such agencies, only to the extent that the statutes of the United States or of such other state, as the case may be, grant substantially similar privileges to the proper officer of this state charged with the administration of the tax laws of this state.
(3) (a) The return of a person shall, upon written request, be open to inspection by or disclosure to:
(i) In the case of the return of an individual, that individual;
(ii) In the case of an income tax return filed jointly, either of the individuals with respect to whom the return is filed;
(iii) In the case of the return of a partnership, any person who was a member of such partnership during any part of the period covered by the return;
(iv) In the case of the return of a corporation or a subsidiary thereof, any person designated by resolution of its board of directors or other similar governing body, or any officer or employee of such corporation upon written request signed by any principal officer and attested to by the secretary or other officer;
(v) In the case of the return of an estate, the administrator, executor or trustee of such estate, and any heir at law, next of kin or beneficiary under the will, of the decedent, but only to the extent that such latter persons have a material interest which will be affected by information contained therein;
(vi) In the case of the return of a trust, the trustee or trustees, jointly or separately, and any beneficiary of such trust, but only to the extent that such beneficiary has a material interest which will be affected by information contained therein;
(vii) In the case of the return of an individual or a return filed jointly, any claimant agency seeking to collect a debt through the set-off procedure established in Sections 27-7-701 through 27-7-713 and Sections 27-7-501 through 27-7-519, from an individual with respect to whom the return is filed.
(b) If an individual described in paragraph (a) is legally incompetent, the applicable return shall, upon written request, be open to inspection by or disclosure to the committee, trustee or guardian of his estate.
(c) If substantially all of the property of the person with respect to whom the return is filed is in the hands of a trustee in bankruptcy or receiver, such return or returns for prior years of such person shall, upon written request, be open to inspection by or disclosure to such trustee or receiver, but only if the Commissioner of Revenue finds that such receiver or trustee, in his fiduciary capacity, has a material interest which will be affected by information contained therein.
(d) Any return to which this section applies shall, upon written request, also be open to inspection by or disclosure to the attorney-in-fact duly authorized in writing by any of the persons described in paragraph (a) of this subsection to inspect the return or receive the information on his behalf, subject to the conditions provided in paragraph (a).
(e) Return information with respect to any taxpayer may be open to inspection by or disclosure to any person authorized by this subsection to inspect any return of such taxpayer if the Commissioner of Revenue determines that such disclosure would not seriously impair state tax administration.
(4) The State Auditor and the employees of his office shall have the right to examine only such tax returns as are necessary for auditing the Department of Revenue, and the same prohibitions against disclosure which apply to the Department of Revenue shall apply to the State Auditor and his employees or former employees.
(5) Officers and employees of the Mississippi Development Authority who execute a confidentiality agreement with the Department of Revenue shall be authorized to discuss and examine information to which this section applies at the offices of the Mississippi Department of Revenue. This disclosure is limited to information necessary to properly administer the programs under the jurisdiction of the Mississippi Development Authority. The Department of Revenue is authorized to disclose to officers and employees of the Mississippi Development Authority who execute a confidentiality agreement the information necessary under the circumstances. The same prohibitions against disclosure which apply to the Department of Revenue shall apply to the officers or employees of the Mississippi Development Authority.
(6) Nothing in this section shall be construed to prohibit the publication of statistics, so classified as to prevent the identification of particular reports or returns and the items thereof, or the inspection by the Attorney General, or any other attorney representing the state, of the report or return of any taxpayer who shall bring action to set aside the tax thereon, or against whom any action or proceeding has been instituted to recover any tax or penalty imposed.
(7) Nothing in this section shall prohibit the commissioner from making available information necessary to recover taxes owing the state pursuant to the authority granted in Section 27-75-16.
(8) Reports and returns required under the provisions of this chapter shall be preserved in accordance with approved records control schedules. No records, however, may be destroyed without the approval of the Director of the Department of Archives and History.
(9) The Department of Revenue is authorized to disclose to the Child Support Unit and to the Fraud Investigation Unit of the Department of Human Services without the need for a subpoena or proper judicial order the name, address, social security number, amount of income, source of income, assets and other relevant information, records and tax forms for individuals who are delinquent in the payment of any child support as defined in Section 93-11-101 or who are under investigation for fraud or abuse of any state or federal program or statute as provided in Section 43-1-23.
(10) Nothing in this section shall prohibit the Department of Revenue from exchanging information with the federal government that is necessary to offset income tax refund payment on debts owed to this state or the United States.
(11) Nothing in this section shall prohibit the department from making available information that is necessary to be disclosed for the administration and enforcement of Section 27-7-87.
SECTION 12. Section 27-13-57, Mississippi Code of 1972, is amended as follows:
27-13-57. (1) Except in accordance with the proper judicial order, as otherwise provided in this section, as authorized in Section 27-4-3 or as authorized in Sections 1 through 9 of this act, it shall be unlawful for the Commissioner of Revenue or any deputy, agent, clerk or other officer or employee of the Department of Revenue to divulge or make known in any manner any particulars set forth or disclosed in any report or return required under this chapter. When a combined report or return is filed as authorized by Section 27-13-17(5), each report or return which composes the combined return shall be considered separate for the purpose of any examinations authorized in this section and only particulars relating to the specific return or report set forth in the judicial order or as otherwise provided shall be considered lawfully divulged. The term "proper judicial order" as used in this section shall not include subpoenas or subpoenas duces tecum, but shall include only those orders entered by a court of record in this state after furnishing notice and a hearing to the taxpayer and the Department of Revenue. The court shall not authorize the furnishing of such information unless it is satisfied that the information is needed to pursue pending litigation wherein the return itself is in issue, or the judge is satisfied that the need for furnishing the information outweighs the rights of the taxpayer to have such information secreted. Nothing in this section shall be construed to prohibit the publication of statistics, so classified as to prevent the identification of particular reports or returns and the items thereof, or the inspection by the Attorney General or any other attorney representing the state of the report or return of any taxpayer who shall bring action to set aside or review the tax based thereon, or against whom an action or proceeding has been instituted to recover any tax or penalty imposed by this chapter. Reports and returns shall be preserved in accordance with approved records control schedules. No records, however, may be destroyed without the approval of the Director of the Department of Archives and History.
However, information relating to possible tax liability of other states or the federal government may be furnished to the revenue department of those states or the federal government when those states or the federal government grant a like comity to Mississippi.
(2) The State Auditor and the employees of his office shall have the right to examine only such tax returns as are necessary for auditing the Department of Revenue, and the same prohibitions against disclosure which apply to the Department of Revenue shall apply to the State Auditor and his office.
(3) Officers and employees of the Mississippi Development Authority who execute a confidentiality agreement with the Department of Revenue shall be authorized to discuss and examine information to which this section applies at the offices of the Mississippi Department of Revenue. This disclosure is limited to information necessary to properly administer the programs under the jurisdiction of the Mississippi Development Authority. The Department of Revenue is authorized to disclose to officers and employees of the Mississippi Development Authority who execute a confidentiality agreement the information necessary under the circumstances. The same prohibitions against disclosure which apply to the Department of Revenue shall apply to the officers or employees of the Mississippi Development Authority.
(4) Nothing in this section shall prohibit the Commissioner of Revenue from making available information necessary to recover taxes owing the state pursuant to the authority granted in Section 27-75-16, Mississippi Code of 1972.
(5) Any person violating the provisions of this section shall be guilty of a misdemeanor and, on conviction, shall be punished by a fine of not exceeding Five Hundred Dollars ($500.00), or by imprisonment not exceeding one (1) year, or both, at the discretion of the court, and if the offender be an officer or employee of the state he shall be dismissed from office and be incapable of holding any public office in this state for a period of five (5) years thereafter.
SECTION 13. Section 27-65-81, Mississippi Code of 1972, is amended as follows:
27-65-81. (1) Applications, returns and information contained therein filed or furnished under this chapter shall be confidential, and except in accordance with proper judicial order, * * * as otherwise authorized by this section, as authorized by Section 27-4-3 or as authorized by Sections 1 through 9 of this act, it shall be unlawful for the Commissioner of Revenue or any deputy, agent, clerk or other officer or employee of the Department of Revenue or Department of Information Technology Services, or any former employee thereof, to divulge or make known in any manner the amount of income or any particulars set forth or disclosed on any application, report or return required.
The term "proper judicial order" as used in this section shall not include subpoenas or subpoenas duces tecum but shall include only those orders entered by a court of record in this state after furnishing notice and a hearing to the taxpayer and the Department of Revenue. The court shall not authorize the furnishing of such information unless it is satisfied that the information is needed to pursue pending litigation wherein the return itself is in issue, or the judge is satisfied that the need for furnishing the information outweighs the rights of the taxpayer to have such information secreted.
(2) Such information contained on the application, returns or reports may be furnished to:
(a) Members and employees of the Department of Revenue and the income tax department thereof, for the purpose of checking, comparing and correcting returns;
(b) The Attorney General, or any other attorney representing the state in any action in respect to the amount of tax under the provisions of this chapter;
(c) The revenue department of other states or the federal government when said states or federal government grants a like comity to Mississippi.
(3) The State Auditor and the employees of his office shall have the right to examine only such tax returns as are necessary for auditing the Department of Revenue, and the same prohibitions against disclosure which apply to the Department of Revenue shall apply to the State Auditor and his office.
(4) Officers and employees of the Mississippi Development Authority who execute a confidentiality agreement with the Department of Revenue shall be authorized to discuss and examine information to which this section applies at the offices of the Mississippi Department of Revenue. This disclosure is limited to information necessary to properly administer the programs under the jurisdiction of the Mississippi Development Authority. The Department of Revenue is authorized to disclose to officers and employees of the Mississippi Development Authority who execute a confidentiality agreement the information necessary under the circumstances. The same prohibitions against disclosure which apply to the Department of Revenue shall apply to the officers or employees of the Mississippi Development Authority.
(5) Nothing in this section shall prohibit the Commissioner of Revenue from making available information necessary to recover taxes owing the state pursuant to the authority granted in Section 27-75-16.
(6) The Department of Revenue is authorized to disclose to the Child Support Unit and to the Fraud Investigation Unit of the Department of Human Services without the need for a subpoena or proper judicial order the name, address, social security number, amount of income, amount of sales tax, source of income, assets and other relevant information, records and tax forms for individuals who are delinquent in the payment of any child support as defined in Section 93-11-101 or who are under investigation for fraud or abuse of any state or federal program or statute as provided in Section 43-1-23.
SECTION 14. Section 27-77-15, Mississippi Code of 1972, is amended as follows:
27-77-15. (1) Except as otherwise provided in this section or in Sections 1 through 9 of this act, it shall be unlawful for the executive director, the Board of Tax Appeals, the commissioner, the agency, or an officer, agent or employee of the agency or the Board of Tax Appeals, to divulge or make known in any manner the information contained in the files, records and orders of the agency, a hearing officer of the agency, the board of review or the Board of Tax Appeals in regard to an appeal to a hearing officer, the board of review or the Board of Tax Appeals under this chapter.
(2) For purposes of this section, the term "appellant" means the taxpayer, IFTA licensee, IRP registrant, permittee, tag holder or title interest holder who filed the appeal to the board of review or the Board of Tax Appeals under this chapter which resulted in the files, records and orders of that appeal.
(3) The executive director, the Board of Tax Appeals, the commissioner, the agency, hearing officer or an agent or employee of the agency or the Board of Tax Appeals is permitted to divulge and make known information otherwise prohibited from disclosure under subsection (1) of this section in any of the following circumstances:
(a) Where the information is being disclosed as a result of complying with the provisions of this chapter and/or with regulations promulgated to enforce the provisions of this chapter.
(b) Where the information is being provided to the appellant or his designated representative.
(c) Where the information is being disclosed to employees or officers of the agency.
(d) Where the information is being provided or disclosed pursuant to a written authorization executed by the appellant as prescribed by regulation.
(e) Where the information is being provided or disclosed in the course of a court action in which the agency, the Board of Tax Appeals, the commissioner, an officer or employee of the agency or the Board of Tax Appeals and the appellant are parties, including, but not limited to, an action brought under this chapter or in the course of the bankruptcy case of the appellant.
(f) Where the information is being provided to the Internal Revenue Service or a taxing authority of another state under an information exchange agreement where similar information can be obtained by the agency from the Internal Revenue Service or state taxing authority receiving the information.
(g) Where the information is being provided pursuant to the International Registration Plan (IRP) or the International Fuel Tax Agreement (IFTA) or any regulations, rules or procedures adopted under such plan or agreement.
(h) Where the disclosure of information is authorized under Section 27-19-123, 27-55-49, 27-55-557, 27-57-39, 27-59-53 or 27-61-20.
(i) Where the information is being provided to the State Auditor or his employees in the course of his audit of the agency; however, the prohibitions against disclosure which apply to the agency shall also apply to the State Auditor and his employees or former employees.
(j) Where the information is being provided to the Attorney General or any other attorney representing the state or the agency in an action brought by the appellant to set aside the tax, in an action brought by the state or agency to recover the tax imposed, or in an action where the appellant is being prosecuted for a crime under the tax laws of this state.
(k) Where the information is being provided by the commissioner to a contractor of collection services pursuant to the authority granted the commissioner in Section 27-75-16.
(l) Where the information is being provided in accordance with a proper judicial order. The term "proper judicial order" as used in this paragraph shall not include subpoenas or subpoenas duces tecum, but shall include only those orders entered by a court of record in this state after furnishing notice and a hearing to the appellant and the Department of Revenue. The court shall not authorize the furnishing of such information unless it is satisfied that the information is needed to pursue pending litigation in which the information itself is in issue, or the judge is satisfied that the need for furnishing the information outweighs the rights of the appellant to have such information secreted.
(4) Nothing in subsection (1) of this section shall prohibit the inspection or disclosure of the minutes of the Board of Tax Appeals except to the extent that such minutes reflect the specific amount of a tax assessment or refund claim or the specific amount of tax or refund claim determined by the Board of Tax Appeals to be due.
(5) Information that is prohibited from being disclosed in subsection (1) of this section shall be exempt from the provisions of the Mississippi Public Records Act of 1983.
(6) Due to the need to discuss confidential tax information, the hearings before a hearing officer, the board of review and the Board of Tax Appeals under this chapter, and the meetings in which the board of review and the Board of Tax Appeals deliberate and vote on the issues raised at such hearings shall be exempt from the provisions of Section 25-41-1 et seq.
SECTION 15. This act shall take effect and be in force from and after July 1, 2012.
