SF 3007

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; providing for a tax amnesty 
  1.3             program; 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   shall establish a tax amnesty program.  The program applies to 
  1.8   taxes payable to the commissioner, but excludes taxes that the 
  1.9   commissioner collects on behalf of local governments. 
  1.10     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
  1.11  following terms have the meanings given: 
  1.12     (1) "commissioner" means the commissioner of revenue; and 
  1.13     (2) "taxpayer" means an individual or person, as defined in 
  1.14  the relevant provision of Minnesota tax law, who is subject to 
  1.15  tax payable to the commissioner. 
  1.16     Subd. 3.  [QUALIFYING TAXPAYERS.] A taxpayer qualifies for 
  1.17  the amnesty program, if: 
  1.18     (1) the taxpayer does not have an account that includes a 
  1.19  civil fraud penalty imposed by the commissioner; and 
  1.20     (2) the taxpayer meets one of the following requirements: 
  1.21     (i) the taxpayer has an unpaid liability on the department 
  1.22  of revenue's accounts receivable system as of February 1, 2002; 
  1.23  or 
  1.24     (ii) the taxpayer has failed to file a return which, if 
  2.1   filed on February 1, 2002, would be considered to be a 
  2.2   delinquent return subject to a penalty and has not received a 
  2.3   written notice of nonfiling from the commissioner; or 
  2.4      (iii) the taxpayer has underreported tax liability on a 
  2.5   return filed and due before February 1, 2002, unless a notice of 
  2.6   assessment or audit has been issued, a bill has been issued, or 
  2.7   an audit is currently being or has been conducted on the return. 
  2.8      Subd. 4.  [AMOUNT OF REDUCTION.] (a) This subdivision 
  2.9   establishes the rules governing the amount of the reduction in 
  2.10  liability for taxpayers who qualify for amnesty under 
  2.11  subdivision 3 and who make payments as required by subdivision 5.
  2.12     (b) For a taxpayer who has an existing liability as of 
  2.13  February 1, 2002, on the department of revenue's accounts 
  2.14  receivable system, the commissioner shall accept as full payment 
  2.15  of the liability, the sum of the following: 
  2.16     (1) .. percent of the balance due on February 1, 2002; 
  2.17     (2) any interest accruing on that account after February 1, 
  2.18  2002; and 
  2.19     (3) any additional liabilities, including tax, penalty, and 
  2.20  interest, established by the commissioner after February 1, 
  2.21  2002, but before the taxpayer applies for amnesty. 
  2.22     (c) For a taxpayer who files an amended return reporting an 
  2.23  increase in liability for a return filed and due before February 
  2.24  1, 2002, the commissioner shall accept as full payment the sum 
  2.25  of the following: 
  2.26     (1) the additional tax and .. percent of the interest due 
  2.27  on the amended return through February 1, 2002; 
  2.28     (2) any interest accruing on that account after February 1, 
  2.29  2002; and 
  2.30     (3) any additional liabilities, including tax, penalty, and 
  2.31  interest, established by the commissioner after February 1, 
  2.32  2002, but before the taxpayer applies for amnesty. 
  2.33     (d) For a taxpayer who has failed to file a return which if 
  2.34  filed on February 1, 2002, would be considered a delinquent 
  2.35  return, the commissioner shall accept the delinquent return 
  2.36  along with payment of tax and interest. 
  3.1      Subd. 5.  [FORM AND TIME OF PAYMENT.] (a) To qualify for 
  3.2   amnesty under the program, the taxpayer must, on or after August 
  3.3   1, 2002, and before November 1, 2002: 
  3.4      (1) apply for amnesty on a form prescribed by the 
  3.5   commissioner; and 
  3.6      (2) make full payment by electronic funds transfer, 
  3.7   certified check, cashier's check, or money order. 
  3.8      (b) Payment qualifies only if it is actually received by 
  3.9   the commissioner at the St. Paul office or field office or is 
  3.10  electronically deposited in the designated bank account of the 
  3.11  state before November 1, 2002. 
  3.12     Subd. 6.  [NO CRIMINAL LIABILITY.] If a taxpayer files a 
  3.13  delinquent return under the amnesty program, the criminal and 
  3.14  civil penalties are waived unless the commissioner later finds 
  3.15  that the tax as shown on any return filed by the taxpayer under 
  3.16  the amnesty program was understated by 25 percent or more.  In 
  3.17  that case, the civil and criminal penalties are reinstated and 
  3.18  the commissioner shall collect the civil penalties and may 
  3.19  pursue criminal penalties. 
  3.20     Subd. 7.  [EXPIRATION.] This section expires January 1, 
  3.21  2003. 
  3.22     [EFFECTIVE DATE.] This section is effective the day 
  3.23  following final enactment. 
  3.24     Sec. 2.  [APPROPRIATION.] 
  3.25     $....... is appropriated from the general fund to the 
  3.26  commissioner of revenue to administer the tax amnesty program.  
  3.27  This appropriation is available in fiscal years 2002 and 2003. 
  3.28     [EFFECTIVE DATE.] This section is effective the day 
  3.29  following final enactment.