SF 652

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 09:06am

A bill for an act
relating to taxation; providing a tax amnesty period; appropriating money.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin TAX AMNESTY.
new text end

new text begin Subdivision 1. new text end

new text begin Amnesty program established. new text end

new text begin The commissioner of revenue must
establish a period of two months in duration, ending no later than October 31, 2011, to
administer the tax amnesty program established in this section. The program applies to
taxes payable to the commissioner, including sales taxes that the commissioner collects on
behalf of local units of government.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of revenue.
new text end

new text begin (c) "Department" means the Department of Revenue.
new text end

new text begin (d) "Tax liability" means all taxes and related penalties, interest, and other charges
payable to the commissioner for tax returns due on or after January 1, 2005, and before
March 1, 2011.
new text end

new text begin (e) "Taxpayer" means an individual, estate, trust, or corporation, as defined in the
relevant provision of Minnesota tax law, who is subject to at least one tax payable to
the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Qualifying taxpayers. new text end

new text begin (a) A taxpayer qualifies for the amnesty program if:
new text end

new text begin (1) the taxpayer has failed to file a return that, if filed on March 1, 2011, would be
considered to be a delinquent return subject to a penalty and has not received a written
notice of nonfiling from the commissioner prior to the request for amnesty;
new text end

new text begin (2) the taxpayer has under-reported tax liability on a return filed and due before
March 1, 2011, unless, prior to the filing of request for amnesty, a notice of assessment or
audit or a bill has been issued, or an audit is currently being or has been conducted on
the return; or
new text end

new text begin (3) the taxpayer has an unpaid liability on the department's accounts receivable
system as of March 1, 2011.
new text end

new text begin (b) A taxpayer is prohibited from participating in the amnesty program if:
new text end

new text begin (1) the taxpayer has a liability on the department's accounts receivable records that
includes a civil fraud penalty imposed by the commissioner;
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new text begin (2) the taxpayer has been convicted of a federal or state tax crime;
new text end

new text begin (3) the taxpayer is party to any criminal investigation or to any civil or criminal
litigation that is pending in any Minnesota court or any court of the United States for
nonpayment, delinquency, or fraud in relation to any Minnesota tax;
new text end

new text begin (4) the taxpayer is currently subject to a voluntary disclosure agreement with the
department; or
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new text begin (5) the taxpayer has received written notice of the commencement of an audit or is
currently being audited by the department.
new text end

new text begin (c) For purposes of this section, "written notice of nonfiling from the commissioner"
includes any written communication from the commissioner to the taxpayer concerning
any period for which the taxpayer has not filed a tax return. Written notice of nonfiling
includes any written communication, including any subpoena, served upon a third-party
record keeper requesting records regarding any period for which the taxpayer has not filed
a tax return, if notice of that third-party communication has been provided to the taxpayer.
Notice to the taxpayer required by this section is sufficient if it is mailed to the last address
on record with the commissioner.
new text end

new text begin (d) To be eligible for amnesty of tax liability, a taxpayer must file all tax returns
required to be filed with the commissioner and must pay all unpaid tax and interest that
is payable under the amnesty program to the commissioner based on all tax returns filed
during the amnesty period.
new text end

new text begin Subd. 4. new text end

new text begin Amount of reduction. new text end

new text begin (a) For a taxpayer who files an amended return
reporting an increase in liability for a return filed and due before March 1, 2011, the
commissioner must accept as full payment the additional tax and a percent of interest
and penalties to be determined by the commissioner that is at least 50 percent, but not
to exceed 70 percent, of the interest and penalties due on the amended return through
the date of payment.
new text end

new text begin (b) For a taxpayer who has failed to file a return that, if filed on March 1, 2011,
would be considered a delinquent return, the commissioner must accept as full payment
the delinquent return along with full payment of tax and 50 percent of the interest and
penalties due to the date of payment.
new text end

new text begin (c) For a taxpayer with existing liability on the department's accounts receivable
system, the commissioner must accept as full payment of the liability the full payment of
tax and 70 percent of the interest and penalties due to the date of payment.
new text end

new text begin Subd. 5. new text end

new text begin Waiver of appeal. new text end

new text begin If a taxpayer elects to participate in the amnesty
program under this section, that election constitutes an express and absolute relinquishment
of all administrative and judicial rights of appeal with respect to the tax liability for which
amnesty is sought.
new text end

new text begin Subd. 6. new text end

new text begin Form and time of payment. new text end

new text begin (a) During the amnesty period prescribed by
the commissioner under subdivision 1, the taxpayer must:
new text end

new text begin (1) apply for amnesty in the form and manner prescribed by the commissioner;
new text end

new text begin (2) file all delinquent tax returns or the amended tax returns that make the taxpayer
eligible for amnesty; and
new text end

new text begin (3) make full payment by electronic means, certified check, cashier's check, or
money order.
new text end

new text begin (b) Payment qualifies only if it is actually received in full by the commissioner at the
department's St. Paul office or a field office or is electronically deposited in the designated
account of the state before the last day of the amnesty period.
new text end

new text begin Subd. 7. new text end

new text begin Investigations. new text end

new text begin (a) Nothing in this section limits the ability of the
commissioner to assess additional tax, penalty, and interest on any return for which the
taxpayer has applied for and received the benefits of this section. For taxpayers who
qualify for the amnesty program under subdivision 4, paragraph (b), as a result of failing to
file returns, the commissioner is prohibited from initiating an audit based on information
received as a result of the taxpayer's participation in the amnesty program for a period
earlier than three years prior to the oldest period for which amnesty is sought.
new text end

new text begin (b) Nothing in this section limits the application of any criminal penalties.
new text end

new text begin Subd. 8. new text end

new text begin Additional penalty. new text end

new text begin For any taxpayer who was eligible for the amnesty
program under this section and failed to file the owed returns, tax, interest, and penalties,
that taxpayer is subject to a five percent penalty on the amount that would have been due
on the last day of the amnesty period, which must not be waived or abated. The five
percent penalty must be in addition to all other penalties, interest, or collection costs
otherwise authorized by law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the general fund to the commissioner of revenue to
administer the tax amnesty program in section 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end