Texas House Bill HB2857

Texas 2021 - 87th Regular

Caption

Relating to certain information regarding taxpayers subject to an audit that is provided to members of the public.

Impact

This legislative change is significant as it alters the landscape of taxpayer rights and the public's access to information regarding tax audits. The revisions could empower taxpayers, providing them with a safeguard against immediate disclosure of their audit status which may unfairly tarnish their reputation or attract unnecessary scrutiny before they have had a chance to respond. Furthermore, the amendment repeals certain previous provisions that could have permitted earlier public access to audit information, thereby bolstering the confidentiality of taxpayer data during the audit process.

Summary

House Bill 2857 aims to amend the Texas Tax Code concerning the provision of information related to taxpayers who are subject to audits by the comptroller's office. The bill enhances transparency by ensuring that information regarding such audits is considered public information but includes specific restrictions on when this information can be released to the public. One key provision is that the comptroller may not disclose audit information to the public until 14 days after notifying the taxpayer of the intent to audit, which allows taxpayers time to prepare and seek legal advice if necessary.

Sentiment

The sentiment surrounding HB 2857 appears to be largely supportive among lawmakers and advocacy groups focused on taxpayer rights. Proponents argue that the bill supports fair treatment of taxpayers and enhances the trust in the auditing process by allowing taxpayers the necessary time to address issues without public pressure. Critics, however, may express concerns regarding the balance of transparency against the need for taxpayer privacy, particularly in cases where public disclosure could lead to reputational damage before an audit's findings are finalized.

Contention

Notable points of contention include the balance between transparency and taxpayer privacy, as well as the implications for public trust in the government auditing process. While many legislators believe that restricting the immediate release of audit information is a prudent step for protecting taxpayer interests, some argue this may lead to challenges in holding the comptroller accountable for potential audits mishandling. The debate emphasizes the ongoing struggle to find the right balance between public access to government processes and the protections necessary to uphold taxpayer dignity and rights.