SENATE DOCKET, NO. 818        FILED ON: 1/18/2017

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1658

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

Bruce E. Tarr

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act to improve tax administration processes in the Commonwealth.

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PETITION OF:

SENATE DOCKET, NO. 818        FILED ON: 1/18/2017

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1658

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE SENATE, NO. 1575 OF 2015-2016.]

The Commonwealth of Massachusetts

_______________

In the One Hundred and Ninetieth General Court
(2017-2018)

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An Act to improve tax administration processes in the Commonwealth.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Subsection (h) of section 6 of Chapter 62 of the Massachusetts General Laws, as appearing in the 2014 official edition, is amended by inserting at the end thereof, the following sentences:-

Any person who is a tax return preparer with respect to any return or claim for refund shall comply with due diligence requirements, including completion of a due diligence form modeled after Form 8867 issued by the Internal Revenue Service, imposed by the commissioner of revenue by rule or regulations with respect to determining eligibility for, or the amount of, the credit allowable by this subsection. Any such form providing evidence of due diligence on behalf of a taxpayer by a tax return preparer shall satisfy the department’s internal audit requirements.

SECTION 2. Section 71 of Chapter 62C of the Massachusetts General Laws, as appearing in the 2014 official edition, as most recently amended in Chapter 359 of the Acts of 2014, is amended by inserting the following new paragraph:-

Any notice authorized or required under the provisions of this chapter shall be provided to a taxpayer and the taxpayer’s designee. If applicable, notices shall include a clear reasoning for denial of abatement, clear reasoning for intent to assess, and the options allowed to each taxpayer pursuant to this chapter.

SECTION 3. Notwithstanding any general or special law to the contrary, the department of revenue shall provide no less than two days each month in-person assistance for purposes of conduction field audits at the following regional offices: Worcester, Springfield, Pittsfield, Taunton, Hyannis and Woburn. The department shall evaluate annually the personnel needs to carry out this subsection and report to the Governor, Secretary of Administration and Finance, the joint committee on state administration and regulatory oversight, and the house and senate committees on ways and means the finding and recommendations.  

SECTION 4. The Commissioner of Revenue shall adopt or amend rules and regulations pursuant to Section 1 no later than December 31, 2017.