Bill Text: TX SB952 | 2023-2024 | 88th Legislature | Engrossed
Bill Title: Relating to certain tax and fee collection procedures and taxpayer suits.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2023-04-14 - Referred to Ways & Means [SB952 Detail]
Download: Texas-2023-SB952-Engrossed.html
By: Perry | S.B. No. 952 |
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relating to certain tax and fee collection procedures and taxpayer | ||
suits. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 111.0041(c), Tax Code, is amended to | ||
read as follows: | ||
(c) A taxpayer shall produce sufficient [ |
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records and supporting documentation appropriate to the tax or fee | ||
for the transactions in question to substantiate and enable | ||
verification of the taxpayer's claim related to the amount of tax, | ||
penalty, or interest to be assessed, collected, or refunded in an | ||
administrative or judicial proceeding. Sufficient | ||
[ |
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to the tax or fee may include[ |
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checks, shipping records, contracts, or other equivalent records, | ||
such as electronically stored images of such documents, reflecting | ||
legal relationships and taxes collected or paid. | ||
SECTION 2. Section 111.0081, Tax Code, is amended by | ||
amending Subsection (c) and adding Subsection (d) to read as | ||
follows: | ||
(c) The amount of a determination made under this code is | ||
due and payable 20 days after a comptroller's decision in a | ||
redetermination hearing becomes final. Except as provided by | ||
Subsection (d), if [ |
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within 20 days after the day the decision became final, a penalty of | ||
10 percent of the amount of the determination, exclusive of | ||
penalties and interest, shall be added. | ||
(d) The penalty provided by Subsection (c) is abated with | ||
respect to the disputed amount that is the subject of a timely filed | ||
suit under Subchapter E, Chapter 112. If the amount determined to | ||
be due in a final judgment in the suit is not paid within 20 days | ||
after the day the judgment became final, a penalty of 10 percent of | ||
the amount due, exclusive of penalties and interest, shall be | ||
added. | ||
SECTION 3. Subchapter A, Chapter 111, Tax Code, is amended | ||
by adding Section 111.0091 to read as follows: | ||
Sec. 111.0091. DISPUTING RESULTS OF MANAGED AUDITS: NOTICE | ||
OF INTENT TO BYPASS REDETERMINATION PROCESS. (a) A person who | ||
conducts a managed audit authorized by Section 151.0231 or 201.3021 | ||
may file with the comptroller a notice of intent to bypass the | ||
redetermination process under Section 111.009. The notice of | ||
intent must: | ||
(1) be filed on or before the 60th day after the date | ||
the comptroller issues a letter notifying the person of the results | ||
of the managed audit; | ||
(2) be in writing; | ||
(3) assert the material facts and each specific legal | ||
basis for disputing the results of the managed audit; and | ||
(4) specify the amounts of the disputed underpayments | ||
or overpayments contained in the report of the managed audit | ||
results. | ||
(b) A person who files a notice of intent under Subsection | ||
(a) may bypass the redetermination process under Section 111.009 | ||
and bring a suit under Subchapter D, Chapter 112, if: | ||
(1) the person participated in a conference under | ||
Subsection (c), in which case the suit must be filed on or before | ||
the 60th day after the date the conference concludes or a later date | ||
agreed to by the comptroller; or | ||
(2) the comptroller does not provide notice in the | ||
time required by Subsection (d) that a conference is required, in | ||
which case the suit must be filed on or before the 90th day after the | ||
date the notice of intent was filed. | ||
(c) The comptroller may require a conference between a | ||
person who files a notice of intent under Subsection (a) and a | ||
designated officer or employee of the comptroller to clarify any | ||
fact or legal issue in dispute regarding the results of the managed | ||
audit and to discuss the availability of additional documentation | ||
that may assist in resolving outstanding issues regarding the | ||
managed audit. The person who filed the notice of intent may amend | ||
a material fact or legal basis described by Subsection (a)(3) | ||
following the conference if the comptroller agrees in writing to | ||
the amendment. | ||
(d) If the comptroller requires a conference under | ||
Subsection (c), the comptroller shall notify the person of the | ||
conference requirement not later than the 30th day after the date | ||
the notice of intent under Subsection (a) was filed. The notice of | ||
the conference requirement must be in writing and include a date and | ||
time for the conference. The conference date provided in the notice | ||
must be not later than the 90th day after the date the notice of | ||
intent was filed. | ||
(e) The person who filed the notice of intent under | ||
Subsection (a) may request to reschedule the conference date | ||
provided in the notice under Subsection (d). The comptroller shall | ||
make a good faith effort to accommodate the request. If the | ||
comptroller and the person who filed the notice of intent do not | ||
agree on or before the 90th day after the date the notice of intent | ||
was filed to a rescheduled date for the conference, the person may | ||
on or before the 120th day after the date the notice of intent was | ||
filed rescind the notice of intent and petition the comptroller for | ||
a redetermination under Section 111.009. | ||
(f) Except as provided by Subsection (e), a person who files | ||
a notice of intent under Subsection (a) waives the person's right to | ||
a redetermination under Section 111.009. | ||
SECTION 4. Section 112.052(d), Tax Code, is amended to read | ||
as follows: | ||
(d) A taxpayer shall produce sufficient [ |
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records and supporting documentation appropriate to the tax for the | ||
transactions in question to substantiate and enable verification of | ||
a taxpayer's claim relating to the amount of the tax, penalty, or | ||
interest that has been assessed or collected or will be refunded, as | ||
required by Section 111.0041. | ||
SECTION 5. The heading to Subchapter D, Chapter 112, Tax | ||
Code, is amended to read as follows: | ||
SUBCHAPTER D. SUIT FOR TAX REFUND OR TO DISPUTE RESULTS OF MANAGED | ||
AUDIT | ||
SECTION 6. Section 112.151(f), Tax Code, is amended to read | ||
as follows: | ||
(f) A taxpayer shall produce sufficient [ |
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records and supporting documentation appropriate to the tax or fee | ||
for the transactions in question to substantiate and enable | ||
verification of a taxpayer's claim relating to the amount of the | ||
tax, penalty, or interest that has been assessed or collected or | ||
will be refunded, as required by Section 111.0041. | ||
SECTION 7. Subchapter D, Chapter 112, Tax Code, is amended | ||
by adding Section 112.1511 to read as follows: | ||
Sec. 112.1511. SUIT TO DISPUTE RESULTS OF MANAGED AUDIT. | ||
(a) A person may sue the comptroller to dispute the results of a | ||
managed audit conducted under Section 151.0231 or 201.3021 if the | ||
person: | ||
(1) has been issued a letter by the comptroller | ||
notifying the person of the results of the managed audit; and | ||
(2) is authorized to bring the suit under Section | ||
111.0091(b). | ||
(b) The suit must be brought against both the comptroller | ||
and the attorney general and must be filed in a district court. | ||
(c) The suit must be filed during the time provided by | ||
Section 111.0091(b) or it is barred. | ||
(d) The amounts of the disputed underpayments or | ||
overpayments contained in the report of the managed audit results | ||
must be set out in the original petition. A copy of the notice of | ||
intent filed under Section 111.0091(a) must be attached to the | ||
original petition filed with the court and to the copies of the | ||
original petition served on the comptroller and the attorney | ||
general. | ||
(e) A person may not intervene in the suit. | ||
(f) A taxpayer shall produce sufficient records and | ||
supporting documentation appropriate to the tax or fee for the | ||
transactions in question to substantiate and enable verification of | ||
a taxpayer's claim relating to the amount of the tax, penalty, or | ||
interest to be assessed, collected, or refunded, as required by | ||
Section 111.0041, including the amounts of the disputed | ||
underpayments or overpayments contained in the report of the | ||
managed audit results. | ||
(g) After the comptroller has been timely served in a suit | ||
that complies with this section, the comptroller and the attorney | ||
general: | ||
(1) are enjoined from collecting disputed | ||
underpayments identified in Section 111.0091(a)(4) from the person | ||
bringing the suit during the pendency of the suit; and | ||
(2) are not enjoined from: | ||
(A) asserting tax liens; or | ||
(B) as an alternative to asserting tax liens, | ||
requiring the person to provide security: | ||
(i) in an amount sufficient to secure | ||
payment of the entire disputed amount, including penalties and | ||
accrued interest, that is the subject of the suit; and | ||
(ii) in the form of a cash deposit filed | ||
with the comptroller or paid into the registry of the court, a | ||
surety bond, a letter of credit, or another form of guarantee. | ||
(h) Damages may be awarded under Chapter 65, Civil Practice | ||
and Remedies Code, if the court determines that all or part of the | ||
enjoined collection amounts under Subsection (g) were disputed | ||
solely for delay. | ||
SECTION 8. Section 112.152, Tax Code, is amended to read as | ||
follows: | ||
Sec. 112.152. ISSUES IN SUIT. (a) The only issues that may | ||
be raised in a suit under this subchapter are, as applicable, the: | ||
(1) grounds of error contained in the motion for | ||
rehearing; or | ||
(2) material facts and legal bases contained in the | ||
notice of intent filed under Section 111.0091(a) or 111.106(a). | ||
(b) The suit applies only to a tax liability period | ||
considered in the comptroller's decision or covered by the notice | ||
of intent filed under Section 111.0091 or 111.106, as applicable. | ||
SECTION 9. Section 112.201, Tax Code, is amended by | ||
amending Subsection (c) and adding Subsections (c-1) and (c-2) to | ||
read as follows: | ||
(c) A person bringing a suit under this subchapter may pay | ||
the disputed amounts as provided by Chapter 111. A disputed amount | ||
that is not paid as provided by Chapter 111 and that is determined | ||
to be due in a final judgment accrues penalties and interest as | ||
provided by Chapter 111. | ||
(c-1) After the comptroller has been timely served in a suit | ||
that complies with this subchapter, the comptroller and the | ||
attorney general: | ||
(1) are enjoined from collecting disputed amounts from | ||
the person bringing the suit during the pendency of the suit; and | ||
(2) [ |
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(A) asserting tax liens; or | ||
(B) as an alternative to asserting tax liens, | ||
requiring the person to provide security: | ||
(i) in an amount sufficient to secure | ||
payment of the entire disputed amount, including penalties and | ||
accrued interest, that is the subject of the suit; and | ||
(ii) in the form of a cash deposit filed | ||
with the comptroller or paid into the registry of the court, a | ||
surety bond, a letter of credit, or another form of guarantee. | ||
(c-2) Damages may be awarded under Chapter 65, Civil | ||
Practice and Remedies Code, if the court determines that all or part | ||
of the enjoined collection amounts under Subsection (c-1) were | ||
disputed solely for delay. | ||
SECTION 10. Section 112.202, Tax Code, is amended to read as | ||
follows: | ||
Sec. 112.202. RECORDS. A person shall produce, in | ||
connection with a suit under this subchapter, sufficient | ||
[ |
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to the tax for the transactions in question to substantiate and | ||
enable verification of the person's claim relating to the amount of | ||
the tax, penalty, or interest that has been assessed or collected, | ||
as required by Section 111.0041. | ||
SECTION 11. Section 111.105(e), Tax Code, is repealed. | ||
SECTION 12. This Act applies to a managed audit that is in | ||
progress and an administrative or judicial proceeding that is | ||
pending or filed on or after the effective date of this Act, without | ||
regard to whether the taxes that are the subject of the managed | ||
audit or proceeding were due before, on, or after that date. | ||
SECTION 13. This Act takes effect immediately if it | ||
receives a vote of two-thirds of all the members elected to each | ||
house, as provided by Section 39, Article III, Texas Constitution. | ||
If this Act does not receive the vote necessary for immediate | ||
effect, this Act takes effect September 1, 2023. |