H.B. No. 2256
AN ACT
relating to procedures for tax auditing, determining amounts of
overpayments, and obtaining reimbursements of overpayments of gas
production taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter E, Chapter 201, Tax Code, is amended
by adding Section 201.207 to read as follows:
Sec. 201.207. DETERMINATION OF OVERPAID AMOUNTS. (a) This
section applies to the tax paid under this chapter by a person who
filed a report under Section 201.203 or 201.2035 and remitted tax in
error to this state.
(b) A person to whom this section applies may compute the
amount of overpayment using a sampling of marketing cost
transactions if the comptroller approves the sampling method.
(c) The person may obtain reimbursement for amounts
determined to have been overpaid by taking a credit on one or more
reports filed under Section 201.203 or 201.2035 or by filing a claim
for refund with the comptroller within the limitation period
specified by Section 111.107 and Subchapter D, Chapter 111.
(d) The person must record the method by which the
computation of the overpayment is performed and must make available
on request by the comptroller the records on which the computation
is based.
(e) The comptroller may adopt rules specifying additional
procedures that must be followed in connection with claiming a
credit under this section.
SECTION 2. Subchapter G, Chapter 201, Tax Code, is amended
by adding Section 201.3021 to read as follows:
Sec. 201.3021. MANAGED AUDITS. (a) In this section,
"managed audit" means a review and analysis of invoices, checks,
accounting records, or other documents or information conducted by
a taxpayer to determine a taxpayer's liability for tax under this
chapter.
(b) The comptroller may, in a written agreement, authorize a
taxpayer to conduct a managed audit under this section. The
agreement must:
(1) be signed by an authorized representative of the
comptroller and the taxpayer; and
(2) specify the period to be audited and the procedure
to be followed.
(c) The decision to authorize or not authorize a managed
audit rests solely with the comptroller.
(d) In determining whether to authorize a managed audit
under this section, the comptroller may consider:
(1) the taxpayer's history of tax compliance;
(2) whether the taxpayer has sufficient time and
resources to conduct the audit;
(3) the sufficiency and availability of the taxpayer's
tax records;
(4) the taxpayer's ability to pay any liability
arising as a result of the audit; and
(5) any other factor the comptroller determines is
relevant.
(e) A managed audit may be limited to one or more factors
affecting a taxpayer's liability for tax under this chapter,
including:
(1) gross value of gas produced;
(2) exempt interest;
(3) marketing costs of gas produced;
(4) gas used to power operations at a well or lease; or
(5) tax reimbursement paid by a purchaser to a
producer.
(f) The comptroller may examine records and perform reviews
that the comptroller determines are necessary before the audit is
finalized to verify the results of the audit.
(g) Unless the audit or information reviewed by the
comptroller under Subsection (f) discloses fraud or wilful evasion
of the tax, the comptroller may not assess a penalty and may waive
all or part of the interest that would otherwise accrue on any
amount identified to be due in a managed audit. This subsection does
not apply to any amount collected by the taxpayer that was a tax or
represented to be a tax but that was not remitted to this state.
(h) Except as provided by Section 111.104(f), the taxpayer
is entitled to a refund of any tax overpayment disclosed by a
managed audit under this section.
(i) The comptroller may adopt rules and establish
procedures to administer this section, including procedures that
must be followed when conducting a managed audit under this
section.
SECTION 3. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 4. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2256 was passed by the House on May 3,
2019, by the following vote: Yeas 140, Nays 0, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2256 was passed by the Senate on May
21, 2019, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor