HF 540

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing a tax amnesty period; 
  1.3             appropriating money. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [TAX AMNESTY.] 
  1.6      Subdivision 1.  [PROGRAM ESTABLISHED.] The commissioner 
  1.7   must establish a period of two months in duration, ending no 
  1.8   later than December 31, 2003, to administer the tax amnesty 
  1.9   program established in this section.  The program applies to 
  1.10  taxes payable to the commissioner, including sales taxes that 
  1.11  the commissioner collects on behalf of local governments. 
  1.12     Subd. 2.  [DEFINITIONS.] (a) For purposes of this section, 
  1.13  the following terms have the meanings given. 
  1.14     (b) "Commissioner" means the commissioner of revenue. 
  1.15     (c) "Taxpayer" means a person, as defined in the relevant 
  1.16  provision of Minnesota tax law, who is subject to tax payable to 
  1.17  the commissioner. 
  1.18     (d) "Tax liability" means all taxes and related penalties, 
  1.19  interest, and other charges payable to the commissioner other 
  1.20  than individual income tax liabilities. 
  1.21     Subd. 3.  [QUALIFYING TAXPAYERS.] (a) A taxpayer qualifies 
  1.22  for the amnesty program, if: 
  1.23     (1) the taxpayer does not have a liability on the 
  1.24  department of revenue's accounts receivable records that 
  2.1   includes a civil fraud penalty imposed by the commissioner; 
  2.2      (2) the taxpayer does not have a liability on the 
  2.3   department of revenue's accounts receivable records that relates 
  2.4   to any period for which the taxpayer has been convicted of a 
  2.5   state or federal tax crime; and 
  2.6      (3) the taxpayer meets one of the following requirements: 
  2.7      (i) the taxpayer has failed to file a return which, if 
  2.8   filed on February 1, 2003, would be considered to be a 
  2.9   delinquent return subject to a penalty and has not received a 
  2.10  written notice of nonfiling from the commissioner prior to the 
  2.11  filing of the request for amnesty; or 
  2.12     (ii) the taxpayer has underreported tax liability on a 
  2.13  return filed and due before February 1, 2003, unless, prior to 
  2.14  the filing of the request for amnesty, a notice of assessment or 
  2.15  audit has been issued, a bill has been issued, or an audit is 
  2.16  currently being or has been conducted on the return; or 
  2.17     (iii) the taxpayer has an unpaid liability on the 
  2.18  department of revenue's accounts receivable system as of 
  2.19  February 1, 2003. 
  2.20     (b) For purposes of this section, "written notice of 
  2.21  nonfiling from the commissioner" includes any written 
  2.22  communication from the commissioner to the taxpayer concerning 
  2.23  any period for which the taxpayer has not filed a tax return.  
  2.24  Written notice of nonfiling also includes any written 
  2.25  communication, including any subpoena, served upon a third-party 
  2.26  record keeper requesting records regarding any period for which 
  2.27  the taxpayer has not filed a tax return, if that notice of that 
  2.28  third-party communication has been provided to the taxpayer.  
  2.29  Notice to the taxpayer required by this section is sufficient if 
  2.30  it is mailed to the last address on record with the commissioner.
  2.31     (c) To be eligible for amnesty of tax liability, a taxpayer 
  2.32  must file all tax returns required to be filed with the 
  2.33  commissioner and must pay all unpaid tax and interest that is 
  2.34  payable to the commissioner based on all business tax returns 
  2.35  filed during the amnesty period. 
  2.36     Subd. 4.  [AMOUNT OF REDUCTION.] (a) For a taxpayer who 
  3.1   files an amended return reporting an increase in liability for a 
  3.2   return filed and due before February 1, 2003, the commissioner 
  3.3   shall accept as full payment the additional tax and 50 percent 
  3.4   of the interest due on the amended return through the date of 
  3.5   payment. 
  3.6      (b) For a taxpayer who has failed to file a return which, 
  3.7   if filed on February 1, 2003, would be considered a delinquent 
  3.8   return, the commissioner shall accept as full payment the 
  3.9   delinquent return along with payment of tax and interest to the 
  3.10  date of payment. 
  3.11     (c) For a taxpayer who has an existing liability on the 
  3.12  department of revenue's accounts receivable system, the 
  3.13  commissioner shall accept as full payment of the liability, the 
  3.14  sum of the following: 
  3.15     (1) .. percent of the balance due on February 1, 2003; 
  3.16     (2) any interest accrued on that account after February 1, 
  3.17  2003; and 
  3.18     (3) any additional liabilities, including tax, penalty, and 
  3.19  interest, established by the commissioner after February 1, 
  3.20  2003, but before the taxpayer applies for amnesty. 
  3.21     Subd. 5.  [FORM AND TIME OF PAYMENT.] (a) During the 
  3.22  amnesty period prescribed by the commissioner under subdivision 
  3.23  1, the taxpayer must: 
  3.24     (1) apply for amnesty on a form prescribed by the 
  3.25  commissioner; 
  3.26     (2) file all the delinquent tax returns or the amended tax 
  3.27  returns which make the taxpayer eligible for amnesty under 
  3.28  subdivision 3; and 
  3.29     (3) make full payment by electronic means, certified check, 
  3.30  cashier's check, or money order. 
  3.31     (b) Payment qualifies only if it is actually received by 
  3.32  the commissioner at the St. Paul office of the department of 
  3.33  revenue or a field office or is electronically deposited in the 
  3.34  designated bank account of the state before the last day of the 
  3.35  amnesty period. 
  3.36     Subd. 6.  [INVESTIGATIONS.] (a) Nothing in this section 
  4.1   limits the ability of the commissioner to assess additional tax, 
  4.2   penalty, and interest on any return for which the taxpayer has 
  4.3   applied for and received the benefits of this section. 
  4.4      (b) Nothing in this section limits the application of any 
  4.5   criminal penalties. 
  4.6      Subd. 7.  [NO REFUNDS.] No refund may be paid under this 
  4.7   section for any tax paid prior to the filing of the taxpayer's 
  4.8   application for amnesty under subdivision 5. 
  4.9      Subd. 8.  [REDETERMINATIONS.] A taxpayer who has been 
  4.10  denied the benefits of amnesty or who believes that the benefits 
  4.11  of amnesty have not been calculated correctly may seek a 
  4.12  redetermination from the commissioner.  The request for 
  4.13  redetermination must be made within 30 days after the benefits 
  4.14  of amnesty have been denied or the benefits have been 
  4.15  calculated.  A taxpayer may appeal an adverse redetermination to 
  4.16  the tax court under Minnesota Statutes, section 271.06. 
  4.17     [EFFECTIVE DATE.] This section is effective the day 
  4.18  following final enactment.  
  4.19     Sec. 2.  [APPROPRIATION.] 
  4.20     $....... is appropriated from the general fund to the 
  4.21  commissioner of revenue to administer the tax amnesty program.  
  4.22  This appropriation is available in fiscal years 2004 and 2005. 
  4.23     [EFFECTIVE DATE.] This section is effective the day 
  4.24  following final enactment.