NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of HTRC Amendments

The amendments define managed audit and inserts language to require TRD to divulge and publish audit procedures. Section 5 regarding refund claims is deleted.

Synopsis of Original Bill

This is the annual Tax Administration Act technical amendments bill and is endorsed by the Revenue Stabilization and Tax Policy Committee.

The most significant provisions:

• •Changes references from director to secretary

• •Clarifies taxpayer confidentiality with respect to TRD employees, where there is information available from public sources
• •Authorizes release of information to a district attorney, state district or federal grand jury and to third party subject to a subpoena
• •Authorizes TRD to estimate tax liability if records and accounts do not exist or are insufficient; and
• •Adjusts how long TRD retains jurisdiction over a refund claim and addresses taxpayer action as follows:

1. The one-year period; denial of a claim for refund under various tax credits, begins when tax is assessed or TRD sues for recovery; and
2. When claim for refund follows an assessment for taxes owed from more than three years, the claim for refund cannot apply to any period before the earliest period shown on the assessment or for any other tax.

AW/njw