Budget Amendment ID: FY2014-S3-9

OTH 9

TAX AMNESTY

Messrs. Tarr, Michael O. Moore, Knapik and Ross moved that the proposed new text be amended by striking out Section 17 and inserting in place thereof the following new section:-

“SECTION__. (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 3 consecutive calendar months between July 1, 2013 and June 30, 2014.

(b) The tax amnesty program shall be limited to the following taxpayers:

(i) taxpayers  who receive written notice from the department that they are eligible for participation in the tax amnesty program with the following existing  business tax liabilities: sales/use tax, sales tax on telecommunications services, meals tax, meals tax local option, material and sales tax, withholding income, performer withholding, pass-through entity withholding, lottery annuity withholding, room occupancy excise, room occupancy excise local option, convention center financing fees on room occupancy in Boston, Cambridge, Chicopee, Springfield, West Springfield, and Worcester, convention center financing surcharge for sightseeing tours, convention center financing surcharge on vehicle rentals in Boston, convention center financing surcharge on parking in Boston, Springfield, and Worcester, deeds excise, cigarette excise, cigars and smoking tobacco excise, club alcohol beverage excise, gasoline excise, special fuels excise, special fuels excise local option, and boat/recreational vehicles sales tax; or

(ii) taxpayers who receive written notice from the department that they are eligible for participation in the tax amnesty program with existing Part B taxable income liabilities

(c) 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.

(d) (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 less than 10 per cent of the interest or more than 30 per cent of the 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 under section 11A of chapter 62B of the General Laws, or a penalty of $10,000, whichever is greater.

(e) To the extent that a taxpayer within the scope of the amnesty program as determined by the commissioner and wishing to participate in the amnesty program has postponed the payment of an assessment of tax, interest and penalty under the authority of subsection (e) of section 32 of chapter 62C of the General Laws, the taxpayer shall waive in writing all rights under said subsection (e) of said section 32 of said chapter 62C further delay the payment of the tax and applicable interest portions of the assessment. The tax and applicable interest portions of the assessment shall be payable in full from the date of the commissioner's notice of assessment. Upon payment by the taxpayer of the tax and interest of the outstanding assessment, the commissioner shall waive all penalties associated with that assessment. The taxpayer and the commissioner shall then proceed with all administrative appeal rights that the taxpayer wishes to pursue with respect to the assessment.

(f) 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.

(g) 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, 2014; 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.

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

(i) Taxpayers electing to participate in the amnesty program 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.

(j) 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, fees and costs, if applicable. If the amnesty application is approved, the commissioner shall waive the appropriate 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.

(k) The department may adopt regulations and provide notice that a cost of collection penalty may be imposed after the expiration of the tax amnesty period for any deficiency assessed for any taxable period due on or after July 1, 2006, and ending before January 1, 2014.  This penalty shall be in addition to all other applicable penalties, fees, or costs.

(l) All revenues from this section shall go to the Tax Reduction Fund as established under Chapter 29 Section 2i.”