Key provisions from the Chamber’s business tax reform bill are advancing in the Legislature. The FY’12 House Ways and Means Committee budget bill, released on April 13th, included the following proposals from that bill:
- Audit Cycle Length: Shorten audit cycles by waiving taxpayer penalties for substantial underpayment of taxes (Ch. 62C, Sec. 35A) if DOR fails to complete an audit within 18 months – providing an incentive for the state to speed up the audit process, which can be quite lengthy and costly for businesses.
- Tax Policy Development: Require the state to post monthly online reports on tax policies before it takes any action on them – giving taxpayers at least 30 days to vet proposed tax policies and provide input before the policies are finalized. This provision will strengthen the tax policy development site that was launched by the Dept. of Revenue last month in response to the Chamber’s proposal.
- Statute of Limitation Parity: Establish the same statute of limitations for assessments and refunds – addressing an unfair rule that currently exists in which businesses have a shorter period in which to amend a return than the state does to assess a return.