Chapter 192 |
2019 -- H 5590 SUBSTITUTE A AS AMENDED Enacted 07/15/2019 |
A N A C T |
RELATING TO TAXATION -SALES AND USE TAXES-ENFORCEMENT AND COLLECTION |
Introduced By: Representatives Filippi, Price, Roberts, Place, and Newberry |
Date Introduced: February 27, 2019 |
It is enacted by the General Assembly as follows: |
SECTION 1. Section 44-19-13 of the General Laws in Chapter 44-19 entitled "Sales and |
Use Taxes - Enforcement and Collection" is hereby amended to read as follows: |
44-19-13. Notice of determination. |
(a) The tax administrator shall give to the retailer or to the person storing, using, or |
consuming the tangible personal property a written notice of his or her determination. Except in |
the case of fraud, intent to evade the provisions of this article, failure to make a return, or claim |
for additional amount pursuant to §§ 44-19-16 -- 44-19-19, every notice of a deficiency |
determination shall be mailed within three (3) years after the fifteenth (15th) day of the calendar |
month following the month for which the amount is proposed to be determined or within three (3) |
years after the return is filed, whichever period expires later, unless a longer period is agreed |
upon by the tax administrator and the taxpayer. |
(b) Notwithstanding the provisions of subsection (a) of this section, under no |
circumstances shall the tax administrator issue a notice of a deficiency determination for any sales |
or use tax determined to be due and payable more than ten (10) years after the return is filed or |
was due to be filed, nor shall the tax administrator commence any collection action for any tax |
that is due and payable unless the collection action is commenced within ten (10) years after a |
notice of a deficiency determination becomes a final collectible assessment; provided, however, |
that the tax administrator may renew a statutory lien that was initially filed within the ten-(10) |
year (10) period for collection actions. Both of the aforementioned ten-(10) year (10) periods are |
tolled for any period of time the taxpayer is in federal bankruptcy or state receivership |
proceedings. “Collection action” refers to any activity undertaken by the division of taxation to |
collect on any state tax liabilities that are final, due, and payable under Rhode Island law. |
“Collection action” may include, but is not limited to, any civil action involving a liability owed |
under chapters 18, 18.1, 18.2, and 19 of title 44. This section excludes any sales and use tax |
liabilities that are deemed trust funds as defined in § 44-19-35, as well as any meals and beverage |
tax liabilities that are collected pursuant to § 44-18-18.1, and any hotel tax liabilities that are |
collected pursuant to § 44-18-36.1. |
(c) The ten-(10) year (10) limitation shall not apply to the renewal or continuation of the |
state's attempt to collect a liability that became final, due, and payable within the ten-(10) year |
(10) limitation periods set forth in this section. |
SECTION 2. Section 44-23-9 of the General Laws in Chapter 44-23 entitled "Estate and |
Transfer Taxes - Enforcement and Collection" is hereby amended to read as follows: |
44-23-9. Assessment and notice of estate tax -- Collection powers -- Lien. |
(a) The tax imposed by § 44-22-1.1 shall be assessed upon the full and fair cash value of |
the net estate determined by the tax administrator as provided in this chapter. Notice of the |
amount of the tax shall be mailed to the executor, administrator, or trustee, but failure to receive |
the notice does not excuse the nonpayment of or invalidate the tax. The tax administrator shall |
receive and collect the assessed taxes in the same manner and with the same powers as are |
prescribed for and given to the collectors of taxes by chapters 7 -- 9 of this title. The tax shall be |
due and payable as provided in § 44-23-16, shall be paid to the tax administrator, and shall be and |
remain a lien upon the estate until it is paid. All executors, administrators, and trustees are |
personally liable for the tax until it is paid. |
(b) Notwithstanding the provisions of subsection (a) of this section, under no |
circumstances shall the tax administrator issue any notice of deficiency determination for the |
amount of the estate tax due more than ten (10) years after the return was filed or should have |
been filed, nor shall the tax administrator commence any collection action for any estate tax due |
and payable unless the collection action is commenced within ten (10) years after the date a |
notice of deficiency determination became a final collectible assessment. “Collection action” |
refers to any activity undertaken by the division of taxation to collect on any state tax liabilities |
that are final, due, and payable under Rhode Island law. “Collection action” may include, but is |
not limited to, any civil action involving a liability owed under chapters 22 and 23 of title 44. |
(c) The ten-(10) year (10) limitation shall not apply to the renewal or continuation of the |
state's attempt to collect a liability that became final, due, and payable within the ten-(10) year |
(10) limitation periods set forth in this section. |
SECTION 3. Section 44-30-83 of the General Laws in Chapter 44-30 entitled "Personal |
Income Tax" is hereby amended to read as follows: |
44-30-83. Limitations on assessment. |
(a) General. Except as otherwise provided in this section the amount of the Rhode Island |
personal income tax shall be assessed within three (3) years after the return was filed, whether or |
not the return was filed on or after the prescribed date. For this purpose a tax return filed before |
the due date shall be considered as filed on the due date; and a return of withholding tax for any |
period ending with or within a calendar year filed before April 15 of the succeeding calendar year |
shall be considered filed on April 15 of the succeeding calendar year. |
(b) Exceptions. |
(1) Assessment at any time. The tax may be assessed at any time if: |
(i) No return is filed; |
(ii) A false or fraudulent return is filed with intent to evade tax; or |
(iii) The taxpayer fails to file a report, pursuant to § 44-30-59, of a change, correction, or |
amended return, increasing his or her federal taxable income as reported on his or her federal |
income tax return or to report a change or correction which that is treated in the same manner as |
if it were a deficiency for federal income tax purposes. |
(2) Extension by agreement. Where, before the expiration of the time prescribed in this |
section for the assessment of tax, or before the time as extended pursuant to this section, both the |
tax administrator and the taxpayer have consented in writing to its assessment after that time, the |
tax may be assessed at any time prior to the expiration of the period agreed upon. |
(3) Report of changed or corrected federal income. If the taxpayer shall, pursuant to § 44- |
30-59, file an amended return, or report a change or correction increasing his or her federal |
taxable income or report a change or correction which that is treated in the same manner as if it |
were a deficiency for federal income tax purposes, an assessment may be made at any time prior |
to two (2) years after the report or amended return was filed. This assessment of Rhode Island |
personal income tax shall not exceed the amount of the increase attributable to the federal change, |
correction, or items amended on the taxpayer's amended federal income tax return. The |
provisions of this paragraph shall not affect the time within which or the amount for which an |
assessment may otherwise be made. |
(4) Deficiency attributable to net operating loss carryback. If a taxpayer's deficiency is |
attributable to an excessive net operating loss carryback allowance, it may be assessed at any time |
that a deficiency for the taxable year of the loss may be assessed. |
(5) Recovery of erroneous refund. An erroneous refund shall be considered to create an |
underpayment of tax on the date made. An assessment of a deficiency arising out of an erroneous |
refund may be made at any time within three (3) years thereafter, or at any time if it appears that |
any part of the refund was induced by fraud or misrepresentation of a material fact. |
(6) Armed forces relief. For purposes of this tax, the date appearing in 26 U.S.C. § 692(a) |
shall be January 1, 1971. |
(c) Omission of income on return. Notwithstanding the foregoing provisions of this |
section, the tax may be assessed at any time within six (6) years after the return was filed if an |
individual omits from his or her Rhode Island income an amount properly includible therein |
which is in excess of twenty-five percent (25%) of the amount of Rhode Island income stated in |
the return. For this purpose there shall not be taken into account any amount which that is |
omitted in the return if the amount is disclosed in the return, or in a statement attached to the |
return, in a manner adequate to apprise the tax administrator of the nature and amount of the item. |
(d) Suspension of limitation. The running of the period of limitations on assessment or |
collection of tax or other amount (or of a transferee's liability) shall, after the mailing of a notice |
of deficiency, be suspended for the period during which the tax administrator is prohibited under |
§ 44-30-81(c) from making the assessment or from collecting by levy, and for sixty (60) days |
thereafter. |
(e) Limitations exclusive. No period of limitations specified in any other law shall apply |
to the assessment or collection of Rhode Island personal income tax. Under no circumstances |
shall the tax administrator issue any notice of a deficiency determination for Rhode Island |
personal income tax due or payable more than ten (10) years after the date upon which the return |
was filed or due to be filed, nor shall the tax administrator commence any collection action for |
any personal income tax due and payable unless the collection action is commenced within ten |
(10) years after a notice of deficiency determination became a final collectible assessment; |
provided however, that the tax administrator can renew a statutory lien that was initially filed |
within the ten-(10) year (10) period for collection actions. Both of the aforementioned ten-(10) |
year (10) periods are tolled for any period of time the taxpayer is in federal bankruptcy or state |
receivership proceedings. “Collection action” refers to any activity undertaken by the division of |
taxation to collect on any state tax liabilities that are final, due, and payable under Rhode Island |
law. “Collection action” may include, but is not limited to, any civil action involving a liability |
owed under chapter 30 of title 44. This section excludes any liabilities that are deemed trust funds |
as defined in § 44-30-76, as amended. |
(f) The ten-(10) year (10) limitation shall not apply to the renewal or continuation of the |
state's attempt to collect a liability that became final, due, and payable within the ten (10) year |
limitation periods set forth in this section. |
SECTION 4. Section 44-11-7.1 of the General Laws in Chapter 44-11 entitled "Business |
Corporation Tax" is hereby amended to read as follows: |
44-11-7.1. Limitations on assessment. |
(a) General. Except as provided in this section, the amount of the Rhode Island corporate |
income tax shall be assessed within three (3) years after the return was filed, whether or not the |
return was filed on or after the prescribed date. For this purpose, a tax return filed before the due |
date shall be considered as filed on the due date. |
(b) Exceptions. (1) The tax may be assessed at any time if: |
(i) No return is filed. |
(ii) A false or fraudulent return is filed with intent to avoid tax. |
(2) Where, before the expiration of the time prescribed in this section for the assessment |
of tax, or before the time as extended, both the tax administrator and the taxpayer have consented, |
in writing, to its assessment after that time, the tax may be assessed at any time prior to the |
expiration of the agreed upon period. |
(3) If a taxpayer's deficiency is attributable to an excessive net operating loss carryback |
allowance, it may be assessed at any time that a deficiency for the taxable year of the loss may be |
assessed. |
(4) An erroneous refund shall be considered to create an underpayment of tax on the date |
made. An assessment of a deficiency arising out of an erroneous refund may be made at any time |
within three (3) years thereafter, or at any time if it appears that any part of the refund was |
induced by fraud or misrepresentation of a material fact. |
(c) Notwithstanding the provisions of this section, the tax may be assessed at any time |
within six (6) years after the return was filed if a taxpayer omits from its Rhode Island income an |
amount properly includable therein which that is in excess of twenty-five percent (25%) of the |
amount of Rhode Island income stated in the return. For this purpose there shall not be taken into |
account any amount which that is omitted in the return if the amount is disclosed in the return, or |
in a statement attached to the return, in a manner adequate to apprise the tax administrator of the |
nature and amount of the item. |
(d) The running of the period of limitations on assessment or collection of the tax or other |
amount, or of a transferee's liability, shall, after the mailing of a notice of deficiency, be |
suspended for any period during which the tax administrator is prohibited from making the |
assessment or from collecting by levy, and for sixty (60) days thereafter. |
(e) No period of limitations specified in any other law shall apply to the assessment or |
collection of Rhode Island corporate income tax. Under no circumstances shall the tax |
administrator issue any notice of deficiency determination for Rhode Island business corporation |
tax due and payable more than ten (10) years after the date upon which the return was filed or due |
to be filed, nor shall the tax administrator commence any collection action for any business |
corporation tax due and payable unless the collection action is commenced within ten (10) years |
after a notice of deficiency determination became a final collectible assessment; provided |
however, that the tax administrator may renew a statutory lien that was initially filed within the |
ten-(10) year (10) period for collection actions. Both of the aforementioned ten-(10) year (10) |
periods are tolled for any period of time the taxpayer is in federal bankruptcy or state receivership |
proceedings. “Collection action” refers to any activity undertaken by the division of taxation to |
collect on any state tax liabilities that are final, due, and payable under Rhode Island law. |
“Collection action” may include, but is not limited to, any civil action involving a liability owed |
under chapter 11 of title 44. |
(f) The ten-(10) year (10) limitation shall not apply to the renewal or continuation of the |
state's attempt to collect a liability that became final, due, and payable within the ten-(10) year |
(10) Limitation periods set forth in this section. |
SECTION 5. This act shall take effect on July 1, 2019 and shall apply only to state tax |
liabilities that become final, due and payable after July 1, 2019. |
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LC001524/SUB A/3 |
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