86R6322 SMT-F
By: Perry S.B. No. 2079
A BILL TO BE ENTITLED
AN ACT
relating to procedures for tax auditing and determining amounts of
overpayments of gas production taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 201.001, Tax Code, is amended by adding
Subdivision (7-a) to read as follows:
(7-a) "Selected marketing cost sampling" means the
use of a sample of marketing transactions to determine the
percentage of gross receipts attributable to marketing costs.
SECTION 2. 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 by use of selected marketing cost sampling.
The sampling method used must comply with generally accepted
sampling methods described by Statement on Auditing Standards No.
39, "Audit Sampling," and be approved by the comptroller.
(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 Subchapter D, Chapter 111.
(d) The person must record the method by which the
computation 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 3. 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) 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.
(e) Unless the audit or information reviewed by the
comptroller under Subsection (d) 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.
(f) 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.
(g) The comptroller may authorize the use of selected
marketing cost sampling in a managed audit under this section if:
(1) the comptroller approves the selection of
marketing transactions to be used in the sample; and
(2) the sampling method complies with generally
accepted sampling methods described by Statement on Auditing
Standards No. 39, "Audit Sampling."
SECTION 4. 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 5. This Act takes effect September 1, 2019.