FL
Florida House Bill H0507

Florida 2023 Regular Session

Florida House Bill H0507 Compare Versions

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1010 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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1414 A bill to be entitled 1
1515 An act relating to the federal taxation; creating s. 2
1616 17.45, F.S.; providing definitions; authorizing the 3
1717 Chief Financial Officer to reimburse an owner of a 4
1818 small business attorney fees and costs from the 5
1919 Internal Revenue Service Civil Liability Trust Fund 6
2020 under certain conditions; requiring the Department of 7
2121 Financial Services to certify certain information 8
2222 before such reimbursement; providing that the identity 9
2323 of a small business is not affected by certain 10
2424 changes; requiring the department to adopt rules; 11
2525 creating s. 72.042, F.S.; providing for an action in 12
2626 circuit court for an award of attorney fees and costs, 13
2727 actual damages, and punitive damages when the Internal 14
2828 Revenue Service is found to have committed certain 15
2929 violations; requiring an action brought in circuit 16
3030 court to be filed within a specified period; amending 17
31-s. 212.134, F.S.; making grammatical changes; 18
32-providing definitions; providing that certain t hird 19
33-party settlement organizations are required to submit 20
34-certain information to the Department of Revenue only 21
35-for participating payees in this state if certain 22
36-conditions are met and subject to certain limitations; 23
37-requiring certain third party settleme nt organizations 24
38-to create and maintain certain records; amending s. 25
31+s. 212.134, F.S.; providing definitions; providing 18
32+that a payment settlement entity is only required to 19
33+issue a return to certain participating payees; 20
34+requiring a payment settlement entity to create and 21
35+maintain certain records; amending s. 655.045, F.S.; 22
36+requiring a report submitted by a financial 23
37+institution to the Financial Services Commission to 24
38+include certain information received from the Internal 25
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4747 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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51-655.045, F.S.; requiring a report submitted by a 26
52-financial institution to the Financial Services 27
53-Commission to include certain information received 28
54-from the Internal Revenue Service; requ iring the 29
55-Office of Financial Regulation to submit an annual 30
56-report to the commission and Legislature by a 31
57-specified date; providing an effective date. 32
58- 33
59-Be It Enacted by the Legislature of the State of Florida: 34
60- 35
61- Section 1. Section 17.45, Florida St atutes, is created to 36
62-read: 37
63- 17.45 Reimbursement for retaliatory taxation proceedings. — 38
64- (1) As used in this section, the term: 39
65- (a) "Domiciled in this state" means authorized to do 40
66-business in this state and located in this state. 41
67- (b) "Retaliatory" m eans any proceeding initiated in part 42
68-to discriminate against or target a taxpayer on the basis of his 43
69-or her political affiliation, ideology, or beliefs, as 44
70-determined by a court of competent jurisdiction. 45
71- (c) "Small business" means any business entity, regardless 46
72-of corporate structure, that is domiciled in this state, that 47
73-employs 50 or fewer employees, and that generated an average 48
74-annual gross revenue of $4 million or less per year for the 49
75-preceding 2 years. 50
51+Revenue Service; requiring the Office of Financial 26
52+Regulation to submit an annual report to the 27
53+commission and Legislature by a specified date; 28
54+providing an effective date. 29
55+ 30
56+Be It Enacted by the Legislature of the State of Florida: 31
57+ 32
58+ Section 1. Section 17.45, Florida Statutes, is created t o 33
59+read: 34
60+ 17.45 Reimbursement for retaliatory taxation proceedings. — 35
61+ (1) As used in this section, the term: 36
62+ (a) "Domiciled in this state" means authorized to do 37
63+business in this state and located in this state. 38
64+ (b) "Retaliatory" means any proceeding initiated in part 39
65+to discriminate against or target a taxpayer on the basis of his 40
66+or her political affiliation, ideology, or beliefs, as 41
67+determined by the department. 42
68+ (c) "Small business" means any business entity, regardless 43
69+of corporate structure, tha t is domiciled in this state, that 44
70+employs 50 or fewer employees, and that generated an average 45
71+annual gross revenue of $4 million or less per year for the 46
72+preceding 2 years. 47
73+ (d) "Trust fund" means The Internal Revenue Service Civil 48
74+Liability Trust Fund created under s. 17.44. 49
75+ (2) Any owner of a small business against which the 50
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8484 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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88- (d) "Trust fund" means The Internal Rev enue Service Civil 51
89-Liability Trust Fund created under s. 17.44. 52
90- (2) Any owner of a small business against which the 53
91-Internal Revenue Service initiates proceedings in the United 54
92-States Tax Court may submit an application to the department for 55
93-reimbursement of reasonable attorney fees and costs necessarily 56
94-incurred in the proceedings, provided that all of the following 57
95-criteria have been satisfied: 58
96- (a) The small business owner is the prevailing party in 59
97-the proceeding before the United States Tax Court. 60
98- (b) The United States Tax Court determines that the 61
99-proceedings were retaliatory. 62
100- (c) The application is accompanied by a copy of the 63
101-attorney's retainer agreement and fee or billing statements for 64
102-the entire period of representation in the proceedings before 65
103-the United States Tax Court. 66
104- (d) The application and accompanying documentation is 67
105-submitted to the department within 90 days after receipt of a 68
106-final order or other pleading concluding the proceedings before 69
107-the United States Tax Court. 70
108- (e) The small business owner has not been previously 71
109-awarded attorney fees or costs related to the proceedings before 72
110-the United States Tax Court. 73
111- (3) If the criteria in subsection (2) are met, the 74
112-department shall certify the amount of the reimbursement and the 75
88+Internal Revenue Service initiates proceedings in the United 51
89+States Tax Court may submit an application to the department for 52
90+reimbursement of reasonable attorney fees and costs necessarily 53
91+incurred in the proceedings, provided that all of the following 54
92+criteria have been satisfied: 55
93+ (a) The small business owner is the prevailing party in a 56
94+proceeding before the United States Tax Court. 57
95+ (b) The attorney representing the small business owner 58
96+before the United States Tax Court certifies, in writing, that 59
97+there is a good faith belief that the proceedings were 60
98+retaliatory. 61
99+ (c) The application is accompanied by a copy of the 62
100+attorney's retainer agreement and fee or billing stateme nts for 63
101+the entire period of representation in the proceedings before 64
102+the United States Tax Court. 65
103+ (d) The application and accompanying documentation is 66
104+submitted to the department within 90 days after receipt of a 67
105+final order or other pleading concludin g the proceedings before 68
106+the United States Tax Court. 69
107+ (e) The small business owner has not been previously 70
108+awarded attorney fees or costs related to the proceedings before 71
109+the United States Tax Court. 72
110+ (3) If the criteria in subsection (2) are met, the 73
111+department shall certify the amount of the reimbursement and the 74
112+name of the applicant to the Chief Financial Officer, who shall 75
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121121 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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125-name of the applicant to the Chief Financial Officer, who shall 76
126-reimburse the applicant from the trust fund. 77
127- (4) For purposes of this section, the identity of a small 78
128-business is not affect ed by a change in name or by a change in 79
129-personnel. 80
130- (5) The department shall adopt rules to implement this 81
131-section. 82
132- Section 2. Section 72.042, Florida Statutes, is created to 83
133-read: 84
134- 72.042 Tax liabilities arising under federal law; 85
135-jurisdiction of circuit courts.— 86
136- (1) If, in connection with the collection of federal taxes 87
137-concerning a taxpayer domiciled in this state, an action is 88
138-brought in a federal district court of competent jurisdiction 89
139-against any officer or employee of the Internal Revenue S ervice, 90
140-or any independent contractor employed by the Internal Revenue 91
141-Service, for a violation of: 92
142- (a) Title VI of the Civil Rights Act of 1964; 93
143- (b) Title VII of the Civil Rights Act of 1964; 94
144- (c) Title 26 of the Internal Revenue Code of 1986, as 95
145-amended; 96
146- (d) The First Amendment to the United States Constitution; 97
147- (e) The Fourth Amendment to the United States 98
148-Constitution; or 99
149- (f) The Fifth Amendment to the United States Constitution, 100
125+reimburse the applicant from the trust fund. 76
126+ (4) For purposes of this sec tion, the identity of a small 77
127+business is not affected by a change in name or by a change in 78
128+personnel. 79
129+ (5) The department shall adopt rules to implement this 80
130+section. 81
131+ Section 2. Section 72.042, Florida Statutes, is created to 82
132+read: 83
133+ 72.042 Tax liabilities arising under federal law; 84
134+jurisdiction of circuit courts. — 85
135+ (1) If, in connection with the collection of federal taxes 86
136+concerning a taxpayer domiciled in this state, an action is 87
137+brought in a federal district court of competent jurisdiction 88
138+against any officer or employee of the Internal Revenue Service, 89
139+or any independent contractor employed by the Internal Revenue 90
140+Service, for a violation of: 91
141+ (a) Title VI of the Civil Rights Act of 1964; 92
142+ (b) Title VII of the Civil Rights Act of 1964; 93
143+ (c) Title 26 of the Internal Revenue Code of 1986, as 94
144+amended; 95
145+ (d) The First Amendment to the United States Constitution; 96
146+ (e) The Fourth Amendment to the United States 97
147+Constitution; or 98
148+ (f) The Fifth Amendment to the United States Constitution, 99
149+ 100
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158158 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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163-the taxpayer may bring an action in circuit court pursuant to 102
164-subsection (2) or subsection (3). 103
165- (2) In any action brought in a federal district court of 104
166-competent jurisdiction pursuant to paragraph (1)(a), paragraph 105
167-(1)(b), or paragraph (1)(c), upon a finding by the federal 106
168-district court that a violation has occur red, the circuit court 107
169-may award: 108
170- (a) Actual damages sustained by the taxpayer, which, but 109
171-for the actions of the Internal Revenue Service, would not have 110
172-been sustained. 111
173- (b) Attorney fees and costs. 112
174- (3) In any action brought in a federal district co urt of 113
175-competent jurisdiction pursuant to paragraph (1)(d), paragraph 114
176-(1)(e), or paragraph (1)(f), upon a finding by the federal 115
177-district court that a violation has occurred, the circuit court 116
178-may award: 117
179- (a) Actual damages sustained by the taxpayer, whic h, but 118
180-for the actions of the Internal Revenue Service, would not have 119
181-been sustained. 120
182- (b) Punitive damages, provided that the provisions of s. 121
183-768.72 are met. 122
184- (c) Attorney fees and costs. 123
185- (4) Notwithstanding any other provision of law, an action 124
186-filed in circuit court pursuant to this section must be filed 125
162+the taxpayer may bring an action in circuit court pursuant to 101
163+subsection (2) or subsection (3). 102
164+ (2) In any action brought in a federal district court of 103
165+competent jurisdiction pursuant to paragraph (1)(a), paragraph 104
166+(1)(b), or paragraph (1)(c), upon a finding by t he federal 105
167+district court that a violation has occurred, the circuit court 106
168+may award: 107
169+ (a) Actual damages sustained by the taxpayer, which, but 108
170+for the actions of the Internal Revenue Service, would not have 109
171+been sustained. 110
172+ (b) Attorney fees and costs. 111
173+ (3) In any action brought in a federal district court of 112
174+competent jurisdiction pursuant to paragraph (1)(d), paragraph 113
175+(1)(e), or paragraph (1)(f), upon a finding by the federal 114
176+district court that a violation has occurred, the circuit court 115
177+may award: 116
178+ (a) Actual damages sustained by the taxpayer, which, but 117
179+for the actions of the Internal Revenue Service, would not have 118
180+been sustained. 119
181+ (b) Punitive damages, provided that the provisions of s. 120
182+768.72 are met. 121
183+ (c) Attorney fees and costs. 122
184+ (4) Notwithstanding any other provision of law, an action 123
185+filed in circuit court pursuant to this section must be filed 124
186+within 2 years after the date the cause of action accrues. 125
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195195 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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199-within 2 years after the date the cause of action accrues. 126
200- Section 3. Subsections (1) through (4) of section 212.134, 127
201-Florida Statutes, are renumbered as subsections (2) through (5), 128
202-respectively, present subsections (1) and (2) are amended, and 129
203-new subsections (1) and (6) are added to that section, to read: 130
204- 212.134 Information returns relating to payment -card and 131
205-third party third-party network transactions. — 132
206- (1) For purposes of this sectio n, the term: 133
207- (a) "Participating payee" has the same meaning as in s. 134
208-6050W of the Internal Revenue Code. 135
209- (b) "Payment settlement entity" has the same meaning as in 136
210-s. 6050W of the Internal Revenue Code. 137
211- (c) "Return" or "information return" means IRS Form 1099-K 138
212-required under s. 6050W of the Internal Revenue Code. 139
213- (d) "Third party network transactions" has the same 140
214-meaning as in s. 6050W of the Internal Revenue Code. 141
215- (e) "Third party settlement organization" has the same 142
216-meaning as in s. 6050W of the Internal Revenue Code. 143
217- (2)(1) For each year in which a payment settlement entity, 144
218-an electronic payment facilitator, or other third party 145
219-contracted with the payment settlement entity to make payments 146
220-to settle reportable payment transactions on beh alf of the 147
221-payment settlement entity must file a return pursuant to s. 148
222-6050W of the Internal Revenue Code, for participating payees 149
223-with an address in this state, the entity, the facilitator, or 150
199+ Section 3. Subsections (1) through (4) of section 212.134, 126
200+Florida Statutes, are r enumbered as subsections (2) through (5), 127
201+respectively, present subsections (1) and (2) are amended, and 128
202+new subsections (1) and (6) are added to that section, to read: 129
203+ 212.134 Information returns relating to payment -card and 130
204+third-party network transact ions.— 131
205+ (1) For purposes of this section, the term: 132
206+ (a) "Participating payee" has the same meaning as in s. 133
207+6050W of the Internal Revenue Code. 134
208+ (b) "Payment settlement entity" has the same meaning as in 135
209+s. 6050W of the Internal Revenue Code. 136
210+ (c) "Return" or "information return" means IRS Form 1099 -K 137
211+required under s. 6050W of the Internal Revenue Code. 138
212+ (d) "Third-party network transactions" has the same 139
213+meaning as in s. 6050W of the Internal Revenue Code. 140
214+ (2)(1) For each year in which a payment settlement entity, 141
215+an electronic payment facilitator, or other third party 142
216+contracted with the payment settlement entity to make payments 143
217+to settle reportable payment transactions on behalf of the 144
218+payment settlement entit y must file a return pursuant to s. 145
219+6050W of the Internal Revenue Code, the entity, the facilitator, 146
220+or the third party must submit the information in the return to 147
221+the department by the 30th day after filing the federal return. 148
222+The format of the informati on returns required must be either a 149
223+copy of such information returns or a copy of such information 150
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232232 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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236-the third party must submit the information in the return to the 151
237-department by the 30th day after filing the federal return. The 152
238-format of the information returns required must be either a copy 153
239-of such information returns or a copy of how such information 154
240-return would have been filed had this section applied at the 155
241-federal level returns related to participating payees with an 156
242-address in the state . For purposes of complying with this 157
243-section, a third party settlement organization must submit the 158
244-information in the return to the department only for 159
245-participating payees with an address in this state whose 160
246-aggregate third party network transactions for goods and 161
247-services exceed $600 For purposes of this subsection, the term 162
248-"payment settlement entity" has the same meaning as provided in 163
249-s. 6050W of the Internal Revenue Co de. 164
250- (3)(2) All returns reports submitted to the department 165
251-under this section must be in an electronic format. 166
252- (6) A third party settlement organization participating in 167
253-a third party network transaction involving a participating 168
254-payee with an address in this state must create and maintain 169
255-records that clearly identify whether a transaction is a 170
256-transaction for goods or services, or both, if such information 171
257-is available at the time of the third party network transaction. 172
258-The information in the return submitted to the department under 173
259-subsection (2) for such entities must be limited to transactions 174
260-for goods and services as supported by the records under this 175
236+returns related to participating payees with an address in the 151
237+state. For purposes of complying with s. 6050W of the Internal 152
238+Revenue Code, a payment settle ment entity is only required to 153
239+issue a return to those participating payees with an address in 154
240+the state whose aggregate transactions for goods and services 155
241+exceed $600. For purposes of this subsection, the term "payment 156
242+settlement entity" has the same me aning as provided in s. 6050W 157
243+of the Internal Revenue Code. 158
244+ (3)(2) All returns reports submitted to the department 159
245+under this section must be in an electronic format. 160
246+ (6) A payment settlement entity participating in a third -161
247+party network transaction i nvolving a participating payee with 162
248+an address in the state must create and maintain records that 163
249+clearly identify whether a transaction is a transaction for 164
250+goods or services, or both, if applicable. 165
251+ Section 4. Subsections (3) and (4) of section 655.0 45, 166
252+Florida Statutes, are renumbered as subsections (4) and (5), 167
253+respectively, subsection (2) is amended, and a new subsection 168
254+(3) is added to that section, to read: 169
255+ 655.045 Examinations, reports, and internal audits; 170
256+penalty.— 171
257+ (2)(a) Each state financial institution, subsidiary, or 172
258+service corporation shall submit a report, at least four times 173
259+each calendar year, as of such dates as the commission or office 174
260+determines. The report must include : 175
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269269 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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273-subsection. 176
274- Section 4. Subsections (3) and (4) of section 655.045, 177
275-Florida Statutes, are re numbered as subsections (4) and (5), 178
276-respectively, subsection (2) is amended, and a new subsection 179
277-(3) is added to that section, to read: 180
278- 655.045 Examinations, reports, and internal audits; 181
279-penalty.— 182
280- (2)(a) Each state financial institution, subsidiary, or 183
281-service corporation shall submit a report, at least four times 184
282-each calendar year, as of such dates as the commission or office 185
283-determines. The report must include : 186
284- 1. The number of inquiries, requests, summons, subpoenas, 187
285-or other requests for info rmation or records received from the 188
286-Internal Revenue Service concerning any account holder domiciled 189
287-in this state. 190
288- 2. Such other information as the commission by rule 191
289-requires for that type of institution. 192
290- (b)(a) The office shall levy an administrati ve fine of up 193
291-to $100 per day for each day the report is past due, unless it 194
292-is excused for good cause. 195
293- (c)(b) For an intentional late filing of the report, the 196
294-office shall levy an administrative fine of up to $1,000 per day 197
295-for each day the report is p ast due. 198
296- (3) By January 30 of each year, the office shall submit a 199
297-report that contains the information from the quarterly reports 200
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306-F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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310-required under subsection (2) to the commission, the President 201
311-of the Senate, and the Speaker of the House of Representativ es. 202
312- Section 5. This act shall take effect July 1, 2023. 203
273+ 1. The number of inquiries, requests, summons, subpoenas , 176
274+or other requests for information or records received from the 177
275+Internal Revenue Service concerning any account holder domiciled 178
276+in this state. 179
277+ 2. Such other information as the commission by rule 180
278+requires for that type of institution. 181
279+ (b)(a) The office shall levy an administrative fine of up 182
280+to $100 per day for each day the report is past due, unless it 183
281+is excused for good cause. 184
282+ (c)(b) For an intentional late filing of the report, the 185
283+office shall levy an administrative fine of up to $1,000 per day 186
284+for each day the report is past due. 187
285+ (3) By January 30 of each year, the office shall submit a 188
286+report that contains the information from the quarterly reports 189
287+required under subsection (2) to the commission, the President 190
288+of the Senate, and the Speaker o f the House of Representatives. 191
289+ Section 5. This act shall take effect on the same date 192
290+that HB 509 or similar legislation takes effect , if such 193
291+legislation is adopted in the same legislative session or an 194
292+extension thereof and becomes a law. 195