Texas Senate Bill SB2079

Texas 2019 - 86th Regular

Caption

Relating to procedures for tax auditing and determining amounts of overpayments of gas production taxes.

Impact

The bill establishes a comprehensive framework for managed audits, empowering the comptroller to authorize taxpayers to conduct their own audits under specific written agreements. This could foster more efficient tax compliance by reducing the burden of tax auditing and allowing taxpayers to utilize their internal records to assess their tax obligations accurately. Moreover, if no fraud or willful evasion is detected, taxpayers are safeguarded from penalties, encouraging prompt correction of overpayments without severe repercussions.

Summary

SB2079 seeks to amend Texas tax code procedures regarding the auditing of gas production taxes and determining amounts of overpayments. A key provision of the bill is the introduction of selected marketing cost sampling, allowing taxpayers to use a sample of marketing transactions to compute overpaid taxes more effectively. This change aims to streamline the audit process and make it more accessible for taxpayers, who may otherwise struggle with the complex calculations associated with tax liabilities.

Conclusion

As the bill is set to take effect on September 1, 2019, it is important for stakeholders including tax professionals and businesses in the gas production sector to be prepared for these procedural changes. Understanding these amendments will be crucial for compliance and ensuring that taxpayers can take full advantage of the new allowances for issuing credits and refunds for overpayments identified through managed audits.

Contention

Despite its intended positive effects, SB2079 may face criticism regarding accountability and regulation over tax collection processes. Opponents might argue that granting taxpayers more autonomy in conducting audits could pose risks of underreporting or miscalculation. Furthermore, the bill’s framework relies heavily on the comptroller’s discretion when it comes to approving managed audits and selected marketing cost sampling methods, which some may view as an area ripe for inconsistencies or favoritism.