Texas 2023 - 88th Regular

Texas Senate Bill SB952 Compare Versions

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1	1	By: Perry S.B. No. 952
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to certain tax and fee collection procedures and taxpayer
7	7	suits.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 111.0041(c), Tax Code, is amended to
10	10	read as follows:
11	11	(c) A taxpayer shall produce sufficient [contemporaneous]
12	12	records and supporting documentation appropriate to the tax or fee
13	13	for the transactions in question to substantiate and enable
14	14	verification of the taxpayer's claim related to the amount of tax,
15	15	penalty, or interest to be assessed, collected, or refunded in an
16	16	administrative or judicial proceeding. Sufficient
17	17	[Contemporaneous] records and supporting documentation appropriate
18	18	to the tax or fee may include[, for example,] invoices, vouchers,
19	19	checks, shipping records, contracts, or other equivalent records,
20	20	such as electronically stored images of such documents, reflecting
21	21	legal relationships and taxes collected or paid.
22	22	SECTION 2. Section 111.0081, Tax Code, is amended by
23	23	amending Subsection (c) and adding Subsection (d) to read as
24	24	follows:
25	25	(c) The amount of a determination made under this code is
26	26	due and payable 20 days after a comptroller's decision in a
27	27	redetermination hearing becomes final. Except as provided by
28	28	Subsection (d), if [If] the amount of the determination is not paid
29	29	within 20 days after the day the decision became final, a penalty of
30	30	10 percent of the amount of the determination, exclusive of
31	31	penalties and interest, shall be added.
32	32	(d) The penalty provided by Subsection (c) is abated with
33	33	respect to the disputed amount that is the subject of a timely filed
34	34	suit under Subchapter E, Chapter 112. If the amount determined to
35	35	be due in a final judgment in the suit is not paid within 20 days
36	36	after the day the judgment became final, a penalty of 10 percent of
37	37	the amount due, exclusive of penalties and interest, shall be
38	38	added.
39	39	SECTION 3. Subchapter A, Chapter 111, Tax Code, is amended
40	40	by adding Section 111.0091 to read as follows:
41	41	Sec. 111.0091. DISPUTING RESULTS OF MANAGED AUDITS: NOTICE
42	42	OF INTENT TO BYPASS REDETERMINATION PROCESS. (a) A person who
43	43	conducts a managed audit authorized by Section 151.0231 or 201.3021
44	44	may file with the comptroller a notice of intent to bypass the
45	45	redetermination process under Section 111.009. The notice of
46	46	intent must:
47	47	(1) be filed on or before the 60th day after the date
48	48	the comptroller issues a letter notifying the person of the results
49	49	of the managed audit;
50	50	(2) be in writing;
51	51	(3) assert the material facts and each specific legal
52	52	basis for disputing the results of the managed audit; and
53	53	(4) specify the amounts of the disputed underpayments
54	54	or overpayments contained in the report of the managed audit
55	55	results.
56	56	(b) A person who files a notice of intent under Subsection
57	57	(a) may bypass the redetermination process under Section 111.009
58	58	and bring a suit under Subchapter D, Chapter 112, if:
59	59	(1) the person participated in a conference under
60	60	Subsection (c), in which case the suit must be filed on or before
61	61	the 60th day after the date the conference concludes or a later date
62	62	agreed to by the comptroller; or
63	63	(2) the comptroller does not provide notice in the
64	64	time required by Subsection (d) that a conference is required, in
65	65	which case the suit must be filed on or before the 90th day after the
66	66	date the notice of intent was filed.
67	67	(c) The comptroller may require a conference between a
68	68	person who files a notice of intent under Subsection (a) and a
69	69	designated officer or employee of the comptroller to clarify any
70	70	fact or legal issue in dispute regarding the results of the managed
71	71	audit and to discuss the availability of additional documentation
72	72	that may assist in resolving outstanding issues regarding the
73	73	managed audit. The person who filed the notice of intent may amend
74	74	a material fact or legal basis described by Subsection (a)(3)
75	75	following the conference if the comptroller agrees in writing to
76	76	the amendment.
77	77	(d) If the comptroller requires a conference under
78	78	Subsection (c), the comptroller shall notify the person of the
79	79	conference requirement not later than the 30th day after the date
80	80	the notice of intent under Subsection (a) was filed. The notice of
81	81	the conference requirement must be in writing and include a date and
82	82	time for the conference. The conference date provided in the notice
83	83	must be not later than the 90th day after the date the notice of
84	84	intent was filed.
85	85	(e) The person who filed the notice of intent under
86	86	Subsection (a) may request to reschedule the conference date
87	87	provided in the notice under Subsection (d). The comptroller shall
88	88	make a good faith effort to accommodate the request. If the
89	89	comptroller and the person who filed the notice of intent do not
90	90	agree on or before the 90th day after the date the notice of intent
91	91	was filed to a rescheduled date for the conference, the person may
92	92	on or before the 120th day after the date the notice of intent was
93	93	filed rescind the notice of intent and petition the comptroller for
94	94	a redetermination under Section 111.009.
95	95	(f) Except as provided by Subsection (e), a person who files
96	96	a notice of intent under Subsection (a) waives the person's right to
97	97	a redetermination under Section 111.009.
98	98	SECTION 4. Section 112.052(d), Tax Code, is amended to read
99	99	as follows:
100	100	(d) A taxpayer shall produce sufficient [contemporaneous]
101	101	records and supporting documentation appropriate to the tax for the
102	102	transactions in question to substantiate and enable verification of
103	103	a taxpayer's claim relating to the amount of the tax, penalty, or
104	104	interest that has been assessed or collected or will be refunded, as
105	105	required by Section 111.0041.
106	106	SECTION 5. The heading to Subchapter D, Chapter 112, Tax
107	107	Code, is amended to read as follows:
108	108	SUBCHAPTER D. SUIT FOR TAX REFUND OR TO DISPUTE RESULTS OF MANAGED
109	109	AUDIT
110	110	SECTION 6. Section 112.151(f), Tax Code, is amended to read
111	111	as follows:
112	112	(f) A taxpayer shall produce sufficient [contemporaneous]
113	113	records and supporting documentation appropriate to the tax or fee
114	114	for the transactions in question to substantiate and enable
115	115	verification of a taxpayer's claim relating to the amount of the
116	116	tax, penalty, or interest that has been assessed or collected or
117	117	will be refunded, as required by Section 111.0041.
118	118	SECTION 7. Subchapter D, Chapter 112, Tax Code, is amended
119	119	by adding Section 112.1511 to read as follows:
120	120	Sec. 112.1511. SUIT TO DISPUTE RESULTS OF MANAGED AUDIT.
121	121	(a) A person may sue the comptroller to dispute the results of a
122	122	managed audit conducted under Section 151.0231 or 201.3021 if the
123	123	person:
124	124	(1) has been issued a letter by the comptroller
125	125	notifying the person of the results of the managed audit; and
126	126	(2) is authorized to bring the suit under Section
127	127	111.0091(b).
128	128	(b) The suit must be brought against both the comptroller
129	129	and the attorney general and must be filed in a district court.
130	130	(c) The suit must be filed during the time provided by
131	131	Section 111.0091(b) or it is barred.
132	132	(d) The amounts of the disputed underpayments or
133	133	overpayments contained in the report of the managed audit results
134	134	must be set out in the original petition. A copy of the notice of
135	135	intent filed under Section 111.0091(a) must be attached to the
136	136	original petition filed with the court and to the copies of the
137	137	original petition served on the comptroller and the attorney
138	138	general.
139	139	(e) A person may not intervene in the suit.
140	140	(f) A taxpayer shall produce sufficient records and
141	141	supporting documentation appropriate to the tax or fee for the
142	142	transactions in question to substantiate and enable verification of
143	143	a taxpayer's claim relating to the amount of the tax, penalty, or
144	144	interest to be assessed, collected, or refunded, as required by
145	145	Section 111.0041, including the amounts of the disputed
146	146	underpayments or overpayments contained in the report of the
147	147	managed audit results.
148	148	(g) After the comptroller has been timely served in a suit
149	149	that complies with this section, the comptroller and the attorney
150	150	general:
151	151	(1) are enjoined from collecting disputed
152	152	underpayments identified in Section 111.0091(a)(4) from the person
153	153	bringing the suit during the pendency of the suit; and
154	154	(2) are not enjoined from:
155	155	(A) asserting tax liens; or
156	156	(B) as an alternative to asserting tax liens,
157	157	requiring the person to provide security:
158	158	(i) in an amount sufficient to secure
159	159	payment of the entire disputed amount, including penalties and
160	160	accrued interest, that is the subject of the suit; and
161	161	(ii) in the form of a cash deposit filed
162	162	with the comptroller or paid into the registry of the court, a
163	163	surety bond, a letter of credit, or another form of guarantee.
164	164	(h) Damages may be awarded under Chapter 65, Civil Practice
165	165	and Remedies Code, if the court determines that all or part of the
166	166	enjoined collection amounts under Subsection (g) were disputed
167	167	solely for delay.
168	168	SECTION 8. Section 112.152, Tax Code, is amended to read as
169	169	follows:
170	170	Sec. 112.152. ISSUES IN SUIT. (a) The only issues that may
171	171	be raised in a suit under this subchapter are, as applicable, the:
172	172	(1) grounds of error contained in the motion for
173	173	rehearing; or
174	174	(2) material facts and legal bases contained in the
175	175	notice of intent filed under Section 111.0091(a) or 111.106(a).
176	176	(b) The suit applies only to a tax liability period
177	177	considered in the comptroller's decision or covered by the notice
178	178	of intent filed under Section 111.0091 or 111.106, as applicable.
179	179	SECTION 9. Section 112.201, Tax Code, is amended by
180	180	amending Subsection (c) and adding Subsections (c-1) and (c-2) to
181	181	read as follows:
182	182	(c) A person bringing a suit under this subchapter may pay
183	183	the disputed amounts as provided by Chapter 111. A disputed amount
184	184	that is not paid as provided by Chapter 111 and that is determined
185	185	to be due in a final judgment accrues penalties and interest as
186	186	provided by Chapter 111.
187	187	(c-1) After the comptroller has been timely served in a suit
188	188	that complies with this subchapter, the comptroller and the
189	189	attorney general:
190	190	(1) are enjoined from collecting disputed amounts from
191	191	the person bringing the suit during the pendency of the suit; and
192	192	(2) [but] are not enjoined from:
193	193	(A) asserting tax liens; or
194	194	(B) as an alternative to asserting tax liens,
195	195	requiring the person to provide security:
196	196	(i) in an amount sufficient to secure
197	197	payment of the entire disputed amount, including penalties and
198	198	accrued interest, that is the subject of the suit; and
199	199	(ii) in the form of a cash deposit filed
200	200	with the comptroller or paid into the registry of the court, a
201	201	surety bond, a letter of credit, or another form of guarantee.
202	202	(c-2) Damages may be awarded under Chapter 65, Civil
203	203	Practice and Remedies Code, if the court determines that all or part
204	204	of the enjoined collection amounts under Subsection (c-1) were
205	205	disputed solely for delay.
206	206	SECTION 10. Section 112.202, Tax Code, is amended to read as
207	207	follows:
208	208	Sec. 112.202. RECORDS. A person shall produce, in
209	209	connection with a suit under this subchapter, sufficient
210	210	[contemporaneous] records and supporting documentation appropriate
211	211	to the tax for the transactions in question to substantiate and
212	212	enable verification of the person's claim relating to the amount of
213	213	the tax, penalty, or interest that has been assessed or collected,
214	214	as required by Section 111.0041.
215	215	SECTION 11. Section 111.105(e), Tax Code, is repealed.
216	216	SECTION 12. This Act applies to a managed audit that is in
217	217	progress and an administrative or judicial proceeding that is
218	218	pending or filed on or after the effective date of this Act, without
219	219	regard to whether the taxes that are the subject of the managed
220	220	audit or proceeding were due before, on, or after that date.
221	221	SECTION 13. This Act takes effect immediately if it
222	222	receives a vote of two-thirds of all the members elected to each
223	223	house, as provided by Section 39, Article III, Texas Constitution.
224	224	If this Act does not receive the vote necessary for immediate
225	225	effect, this Act takes effect September 1, 2023.