Amendment #56 to H.3382

Tax Amnesty Program to Provide for Critical Transportation Funding

Mr. Diehl of Whitman move that the bill be amended by inserting the following sections:-



SECTION XX. Chapter 62 of the General Laws is hereby amended by adding the following section:-



Section 65. (a) Notwithstanding any general or special law to the contrary, the department of revenue shall develop and implement a tax amnesty program in accordance with the provisions of this section to be effective for a period not to exceed 4 consecutive calendar months between July 1, 2013 and June 30, 2014, at the discretion of the commissioner.



(b) The tax amnesty program shall apply to taxes for which the department has issued a proposed assessment, notice of assessment, bill, notice or demand for payment on or after July 1, 2006, and before January 1, 2013, or to taxes that became due on or after 1, 2006, and before January 1, 2013.



(c) (i). The commissioner's authority to waive penalties during the amnesty period shall not apply to any taxpayer who, before the start date of the amnesty program selected by the commissioner, was the subject of a tax-related criminal investigation or prosecution. The amnesty program shall not authorize the waiver of interest or any amount treated as interest. The commissioner may offer tax amnesty to those taxpayers who have either an unpaid self-assessed liability or who have been assessed a tax liability, whether before or after the filing of a return, of which the assessed liability remains unpaid. (ii). A taxpayer who delivers or discloses any false or fraudulent application, document, return, or other statement to the department in connection with an amnesty application shall be ineligible for amnesty and shall be subject to the fraud penalty under present law, including section 11A of chapter 62B of the General Laws, or a penalty of $10,000, whichever is greater.



(d) Amnesty shall not apply to those penalties which the commissioner would not have the sole authority to waive including, but not limited to, fuel taxes administered under the International Fuel Tax Agreement or under the local option portions of taxes or excises collected for the benefit of cities, towns or state governmental authorities.



(e) The commissioner shall maintain records of the amnesty provided under this section including, but not limited to: (i) the number of taxpayers provided with amnesty; (ii) the types of tax liability for which amnesty was provided and, for each type of liability, the amount of tax liability collected and the amount of penalties foregone by virtue of the amnesty program; and (iii) the total outstanding tax liability for amnesty-eligible taxpayers at the conclusion of the tax amnesty program after the collection of all funds under this section. The commissioner shall file a report detailing such information with the clerks of the house of representatives and the senate, the joint committee on revenue, the house and senate committees on ways and means, the minority leader of the house and the minority leader of the senate not later than September 1, 2010; provided, however, that such report shall not contain information sufficient to identify an individual taxpayer or the amnesty that an individual taxpayer was provided under this section.



(f.) The department shall publicize the tax amnesty program in order to maximize the public awareness of and participation in the program.



(g.) Participation in the amnesty program shall be conditioned upon agreement of the taxpayer that the right to protest or initiate an administrative or judicial proceeding that is granted is barred.



(h.) Taxpayers electing to participate in amnesty who have paid under protest and filed suit shall agree that upon approval of their amnesty application, the department shall release their payment from escrow and apply it in accordance with the grant of amnesty.



(i.) Amnesty shall only be granted for eligible taxes to eligible taxpayers, as determined by the department, who apply for amnesty during the amnesty period on forms prescribed by the department and who pay all of the tax, all fees and costs, if applicable.. If the amnesty application is approved, the commissioner shall waive the remaining interest and all of the penalties associated with the tax periods to which amnesty is applied. No installment agreements will be entered into for tax periods that are approved for amnesty.



(j.) Following the termination of the tax amnesty period, the deparment shall issue a deficiency assessment for a period for which amnesty was taken. The department shall have the authority to impose penalties and institute civil proceedings or criminal proceedings only with respect to the difference between the amount shown on the amnesty application and the correct amount of tax due.



(k.) The department may, by regulation, impose after the expiration of the tax amnesty period a cost of collection penalty of 20 per cent of any deficiency assessed for any taxable period due on or after July 1, 2006, and ending before Jan. 1, 20014. This penalty shall be in addition to all other applicable penalties, fees, or costs.



(l.) Taxpayers shall be eligible for a refund or credit if an overpayment that arises after the amnesty application is submitted and is attributable to a properly claimed Massahcusetts net operating loss or that is attributable to an adjustment made by the Internal Revenue Service to the taxpayer's federal income tax and the taxpayer provides notice of the adjustment to the commissioner within 60 days of receipt of the adjustment from the Internal Revenue Service.









(m.) The department shall not impose a penalty if a deficiency results from an adjustment made by the Internal Revenue Service to the taxpayer's federal income tax and the taxpayer provides notice of the adjustment to the commissioner within 60 days of receipt of the adjustment from the Internal Revenue Service, or if the taxpayer's application for amnesty was based on a proposed assessment or notice of assessment.



(n.) taxable periods beginning on or after January 1, 2010 taxpayers that participate in amnesty and later fail to comply with any payment and filing provision shall be subject to the negligence penalty under present law or a penalty of $100, whichever is greater.



(o.) The department may retain from monies collected under the tax amnesty program an amount equal to all penalties waived, an amount equal to the costs for contractual information technology and amnesty program administration services, and an amount equal to any collection fees, legal fees, or any other fees the department incurs that are associated with granting amnesty. Provided further, that the department shall also retain an amount not to exceed $250,000 for advertising expenses from monies collected from taxes paid.



(p.) all remaining monies collected under the tax amnesty program shall be paid into the General Fund.



SECTION XX. Chapter 63 is hereby amended by adding the following section:-

Section 82. (a) Notwithstanding any general or special law to the contrary, the department of revenue shall develop and implement a tax amnesty program for corporations, limited liability companies, and partnerships in accordance with the provisions of this section to be effective for a period not to exceed 4 consecutive calendar months between July 1, 2013 and June 30, 2014, at the discretion of the commissioner.



(b) The tax amnesty program shall apply to taxes for which the department has issued a proposed assessment, notice of assessment, bill, notice or demand for payment on or after July 1, 2006, and before January 1, 2013, or to taxes that became due on or after 1, 2006, and before January 1, 2013.



(c) (i). The commissioner's authority to waive penalties during the amnesty period shall not apply to any taxpayer who, before the start date of the amnesty program selected by the commissioner, was the subject of a tax-related criminal investigation or prosecution. The amnesty program shall not authorize the waiver of interest or any amount treated as interest. The commissioner may offer tax amnesty to those taxpayers who have either an unpaid self-assessed liability or who have been assessed a tax liability, whether before or after the filing of a return, of which the assessed liability remains unpaid. (ii). A taxpayer who delivers or discloses any false or fraudulent application, document, return, or other statement to the department in connection with an amnesty application shall be ineligible for amnesty and shall be subject to the fraud penalty under present law, including and section 79 of chapter 63 of the General Laws, or a penalty of $10,000, whichever is greater.



(d) Amnesty shall not apply to those penalties which the commissioner would not have the sole authority to waive including, but not limited to, fuel taxes administered under the International Fuel Tax Agreement or under the local option portions of taxes or excises collected for the benefit of cities, towns or state governmental authorities.



(e) The commissioner shall maintain records of the amnesty provided under this section including, but not limited to: (i) the number of taxpayers provided with amnesty; (ii) the types of tax liability for which amnesty was provided and, for each type of liability, the amount of tax liability collected and the amount of penalties foregone by virtue of the amnesty program; and (iii) the total outstanding tax liability for amnesty-eligible taxpayers at the conclusion of the tax amnesty program after the collection of all funds under this section. The commissioner shall file a report detailing such information with the clerks of the house of representatives and the senate, the joint committee on revenue, the house and senate committees on ways and means, the minority leader of the house and the minority leader of the senate not later than September 1, 2010; provided, however, that such report shall not contain information sufficient to identify an individual taxpayer or the amnesty that an individual taxpayer was provided under this section.



(f.) The department shall publicize the tax amnesty program in order to maximize the public awareness of and participation in the program.



(g.) Participation in the amnesty program shall be conditioned upon agreement of the taxpayer that the right to protest or initiate an administrative or judicial proceeding that is granted is barred.



(h.) Taxpayers electing to participate in amnesty who have paid under protest and filed suit shall agree that upon approval of their amnesty application, the department shall release their payment from escrow and apply it in accordance with the grant of amnesty.



(i.) Amnesty shall only be granted for eligible taxes to eligible taxpayers, as determined by the department, who apply for amnesty during the amnesty period on forms prescribed by the department and who pay all of the tax, all fees and costs, if applicable.. If the amnesty application is approved, the commissioner shall waive the remaining interest and all of the penalties associated with the tax periods to which amnesty is applied. No installment agreements will be entered into for tax periods that are approved for amnesty.



(j.) Following the termination of the tax amnesty period, the deparment shall issue a deficiency assessment for a period for which amnesty was taken. The department shall have the authority to impose penalties and institute civil proceedings or criminal proceedings only with respect to the difference between the amount shown on the amnesty application and the correct amount of tax due.



(k.) The department may, by regulation, impose after the expiration of the tax amnesty period a cost of collection penalty of 20 per cent of any deficiency assessed for any taxable period due on or after July 1, 2006, and ending before Jan. 1, 20014. This penalty shall be in addition to all other applicable penalties, fees, or costs.



(l.) Taxpayers shall be eligible for a refund or credit if an overpayment that arises after the amnesty application is submitted and is attributable to a properly claimed Massahcusetts net operating loss or that is attributable to an adjustment made by the Internal Revenue Service to the taxpayer's federal income tax and the taxpayer provides notice of the adjustment to the commissioner within 60 days of receipt of the adjustment from the Internal Revenue Service.









(m.) The department shall not impose a penalty if a deficiency results from an adjustment made by the Internal Revenue Service to the taxpayer's federal income tax and the taxpayer provides notice of the adjustment to the commissioner within 60 days of receipt of the adjustment from the Internal Revenue Service, or if the taxpayer's application for amnesty was based on a proposed assessment or notice of assessment.



(n.) taxable periods beginning on or after January 1, 2010 taxpayers that participate in amnesty and later fail to comply with any payment and filing provision shall be subject to the negligence penalty under present law or a penalty of $100, whichever is greater.



(o.) The department may retain from monies collected under the tax amnesty program an amount equal to all penalties waived, an amount equal to the costs for contractual information technology and amnesty program administration services, and an amount equal to any collection fees, legal fees, or any other fees the department incurs that are associated with granting amnesty. Provided further, that the department shall also retain an amount not to exceed $250,000 for advertising expenses from monies collected from taxes paid.



(p.) all remaining monies collected under the tax amnesty program shall be paid into the General Fund.