Bill Text: MS HB1354 | 2014 | Regular Session | Introduced
Bill Title: Taxation; revise rate of interest assessed on underpayment or nonpayment of income, withholding, franchise and sales taxes.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2014-02-04 - Died In Committee [HB1354 Detail]
Download: Mississippi-2014-HB1354-Introduced.html
MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Ways and Means
By: Representative Smith (39th)
House Bill 1354
AN ACT TO AMEND SECTIONS 27-7-51, 27-7-53 AND 27-7-327, MISSISSIPPI CODE OF 1972, TO REDUCE CERTAIN INTEREST ASSESSMENTS THAT MAY BE MADE BY THE COMMISSIONER OF REVENUE FOR UNDERPAYMENT AND NONPAYMENT OF TAX UNDER THE INCOME TAX LAW FROM 1% TO 1-1/2% PER MONTH; TO AMEND SECTION 27-13-23 AND 27-13-25, MISSISSIPPI CODE OF 1972, TO REDUCE CERTAIN INTEREST ASSESSMENTS THAT MAY BE MADE BY THE COMMISSIONER OF REVENUE FOR UNDERPAYMENT AND NONPAYMENT OF TAX UNDER THE FRANCHISE TAX LAW FROM 1% TO 1-1/2% PER MONTH; TO AMEND SECTION 27-65-39, MISSISSIPPI CODE OF 1972, TO REDUCE CERTAIN INTEREST ASSESSMENTS THAT MAY BE MADE BY THE COMMISSIONER OF REVENUE FOR UNDERPAYMENT AND NONPAYMENT OF TAX UNDER THE SALES TAX LAW FROM 1% TO 1-1/2% PER MONTH; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-51, Mississippi Code of 1972, is amended as follows:
27-7-51. (1) If, upon examination of a return made under the provisions of this article, it appears that the correct amount of tax is greater or less than that shown in the return, the tax shall be recomputed. Any overpayment of tax so determined shall be credited or refunded to the taxpayer. If the correct amount of tax is greater than that shown in the return of the taxpayer, the commissioner shall make his assessment of additional tax due by mail or by personal delivery of the assessment to the taxpayer, which assessment shall constitute notice and demand for payment. The taxpayer shall be given a period of sixty (60) days from the date of the notice in which to pay the additional tax due, including penalty and interest as hereinafter provided, and if the sum is not paid within the period of sixty (60) days, the commissioner shall proceed to collect it under the provisions of Sections 27-7-55 through 27-7-67, provided that within the period of sixty (60) days the taxpayer may appeal to the board of review as provided by law.
(2) In the case of an
overpayment of tax, interest shall be computed under the provisions of Section
27-7-315. In the case of an underpayment of tax, interest at the rate of * * *
one-half of one
percent (1/2 of 1%) per month from the due date of the return may be added
or assessed in addition to the additional tax due as hereinabove provided in
subsection (1) of this section.
(3) In case of failure to pay any additional taxes as assessed under this section, there may be added to the additional amount assessed a penalty of one-half of one percent (1/2 of 1%) of the amount of the additional tax if the failure is for not more than one (1) month, with an additional one-half of one percent (1/2 of 1%) for each additional month or fraction thereof during which the failure continues, not to exceed twenty-five percent (25%) in the aggregate.
(4) Where the reported net
income of a taxpayer is increased by the Internal Revenue Service, a taxpayer
who, without action by the commissioner, amends a return filed under this
article on the basis of a change in taxable income made by the Internal Revenue
Service, and pays the additional tax due within thirty (30) days after
agreeing to the federal change (and has received statement of the federal
changes to which agreement has been made or payment thereof), shall add
interest to the additional tax at the rate of * * * one-half of one percent (1/2
of 1%) per month from due date of the original return. If the additional
tax, based on changes in taxable income by the Internal Revenue Service, is
assessed by the commissioner under subsection (1) of this section, in addition
to the interest there may be added a penalty of one-half of one percent (1/2 of
1%) of the additional tax due if the failure is for not more than one (1)
month, with an additional one-half of one percent (1/2 of 1%) for each
additional month or fraction thereof during which the failure to pay continues,
not to exceed twenty-five percent (25%) in the aggregate, unless it is shown
that the failure is due to reasonable cause and not due to willful neglect.
(5) In the case of a
taxpayer who files a bond when appealing the decision of the Board of Tax
Appeals instead of paying the amount of the additional tax found to be due by
the Board of Tax Appeals, and the tax assessment or a part of the assessment is
upheld by the chancery court and/or the Supreme Court, the assessment shall
bear interest at the rate of * * * one-half of one percent (1/2
of 1%) per month from the due date until paid.
(6) (a) Nothing in this section shall be construed as authorizing a refund of taxes for claims pursuant to the United States Supreme Court decision of Davis v. Michigan Department of Treasury, 109 S.Ct. 1500 (1989). These taxes were not incorrectly and/or erroneously collected as contemplated by this chapter.
(b) In the event a court of final jurisdiction determines the above provision to be void for any reason, it is hereby declared the intent of the Legislature that affected taxpayers shall be allowed a credit against future income tax liability as opposed to a tax refund.
SECTION 2. Section 27-7-53, Mississippi Code of 1972, is amended as follows:
27-7-53. (1) (a) Except as otherwise provided in this section, if a return is timely filed by the taxpayer but the tax due is not paid, the commissioner shall make his assessment of tax due by mail or by personal delivery of the assessment to the taxpayer, which assessment shall constitute notice and demand for payment. The taxpayer shall be given a period of sixty (60) days from the date of the notice in which to pay the tax due, including penalty and interest as hereinafter provided, and if the sum is not paid within the period of sixty (60) days, the commissioner shall proceed to collect it under the provisions of Sections 27-7-55 through 27-7-67 of this article; provided that within the period of sixty (60) days the taxpayer may appeal to the board of review as provided by law.
(b) (i) If an individual return is timely filed by the taxpayer and the amount of tax liability (determined without regard to interest, penalties, additions to the tax and additional amounts) of the taxpayer exceeds Seventy-five Dollars ($75.00) but does not exceed Three Thousand Dollars ($3,000.00), the taxpayer may request to pay the tax liability through an installment agreement.
(ii) If an individual return is timely filed by the taxpayer and the amount of tax liability (determined without regard to interest, penalties, additions to the tax and additional amounts) of the taxpayer exceeds Three Thousand Dollars ($3,000.00) and the taxpayer has entered into an installment agreement with the Internal Revenue Service to pay federal income taxes on income earned during the same taxable year during which the state income tax liability was incurred, the taxpayer may request to pay the tax liability through an installment agreement.
(iii) The taxpayer must file such a request with the return and must provide all information required by the commissioner.
(iv) If the commissioner determines a taxpayer is financially unable to pay the tax liability, the commissioner may enter into an agreement to accept payment of the tax liability in installments if:
1. The taxpayer (and the taxpayer's spouse if the tax liability relates to a joint return), during any of the preceding five (5) years, has not:
a. Failed to file any return required by this chapter,
b. Failed to pay any tax required by this chapter, or
c. Entered into an installment agreement under this paragraph (b);
2. The agreement requires full payment of the tax liability in equal installments within twelve (12) months from the date the return was filed if the tax liability falls within the provisions of subparagraph (i) of this paragraph, or within sixty (60) months from the date the return was filed if the tax liability falls within the provisions of subparagraph (ii) of this paragraph; and
3. The taxpayer agrees to comply with the terms of the agreement.
(v) Payments made through an installment agreement shall be subject to the interest provisions of subsection (3) of this section.
(vi) The commissioner may terminate an installment agreement entered into under this paragraph (b) if he determines the taxpayer provided inaccurate or incomplete information before the agreement was entered into or he believes the collection of the tax to which the agreement relates is in jeopardy.
(vii) The commissioner may modify or terminate an installment agreement entered into under this paragraph (b) if the taxpayer fails to:
1. Pay any installment due under the agreement;
2. Pay any other tax liability due under this chapter when the liability is due; or
3. Provide a statement of financial condition required by the commissioner.
(2) If no return is made by a taxpayer required by this chapter to make a return, the commissioner shall determine the taxpayer's liability from the best information available, which determination shall be prima facie correct for the purpose of this article, and the commissioner shall forthwith make an assessment of the tax so determined to be due by mail or by personal delivery of the assessment to the taxpayer, which assessment shall constitute notice and demand for payment. The taxpayer shall be given a period of sixty (60) days from the date of the notice in which to pay the tax due, including penalty and interest as hereinafter provided, and if the sum is not paid within the period of sixty (60) days, the commissioner shall proceed to collect it under the provisions of Sections 27-7-55 through 27-7-67 of this article; provided that within the period of sixty (60) days the taxpayer may appeal to the board of review as provided by law.
(3) Interest at the rate of * * *
one-half of one
percent (1/2 of 1%) per month from the due date of the return may be added
or assessed in addition to the tax due as provided in subsections (1) and (2)
of this section.
(4) In case of failure to file a return as required by this chapter, there may be added to the amount required to be shown as tax on the return a penalty of five percent (5%) of the amount of the tax if the failure is for not more than one (1) month, with an additional five percent (5%) for each additional month or fraction thereof during which the failure continues, not to exceed twenty-five percent (25%) in the aggregate. The failure to file a return penalty shall not be less than One Hundred Dollars ($100.00).
(5) In case of failure to pay the amount shown as tax on any return specified in subsections (1) and (2) of this section on or before the date prescribed for payment of the tax, determined with regard to any extension of time for payment or installment agreement, or both, there may be added to the amount shown as tax on the return one-half of one percent (1/2 of 1%) of the amount of the tax if the failure is for not more than one (1) month, with an additional one-half of one percent (1/2 of 1%) for each additional month or fraction thereof during which the failure continues, not to exceed twenty-five percent (25%) in the aggregate.
SECTION 3. Section 27-7-327, Mississippi Code of 1972, is amended as follows:
27-7-327. Taxpayers subject
to the requirements of estimated tax payments for an income year ending after
December 31, 1983, shall estimate an amount not less than eighty percent (80%)
of the tax actually due in the case of an individual or, except as otherwise
provided in Section 27-7-329(f), an amount not less than ninety percent (90%)
of the tax actually due in the case of a corporation. Any corporate taxpayer
which either fails to file the required estimated tax returns and pay the tax
within the time prescribed, or, except as otherwise provided in Section 27-7-329(f),
which underestimates the required amount of the estimated tax shall be liable
for a penalty in the amount of ten percent (10%) of the amount unpaid plus
interest at the rate of * * * one percent (1%)one-half of one percent (1/2 of 1%) per
month on such amount. Any individual taxpayer who either fails to file the
required estimated tax returns and pay the tax within the time prescribed, or
who underestimates the required amount of the estimated tax shall be liable for
interest at the rate of * * *one percent (1%) one-half of one percent (1/2 of 1%)
per month on such amount.
SECTION 4. Section 27-13-23, Mississippi Code of 1972, is amended as follows:
27-13-23. (1) If a return is timely filed by the taxpayer but the tax is not paid, the commissioner shall make his assessment of tax due by mail or by personal delivery of the assessment to the taxpayer, which assessment shall constitute notice and demand for payment. The taxpayer shall be given a period of sixty (60) days from the date of the notice in which to pay the tax due, including penalty and interest as provided in this section, and if the sum is not paid within the sixty-day period, the commissioner shall proceed to collect it under the provisions of Sections 27-13-29 through 27-13-41 of this chapter; provided that within the sixty-day period the taxpayer may appeal to the board of review as provided by law.
(2) If no return is made by a taxpayer required by this chapter to make a return, the commissioner shall determine the taxpayer's liability from the best information available, which determination shall be prima facie correct for the purpose of this chapter, and the commissioner shall forthwith make an assessment of the tax so determined to be due by mail or by personal delivery of the assessment to the taxpayer, which assessment shall constitute notice and demand for payment. The taxpayer shall be given a period of sixty (60) days from the date of the notice in which to pay the tax due, including penalty and interest as provided in this section, and if the sum is not paid within the sixty-day period, the commissioner shall proceed to collect it under the provisions of Sections 27-13-29 through 27-13-41 of this chapter; provided that within the sixty-day period the taxpayer may appeal to the board of review as provided by law.
(3) Interest at the rate of * * *
one-half of one
percent (1/2 of 1%) per month from the due date of the return shall be
added or assessed in addition to the tax due as provided in subsections (1) and
(2) of this section.
(4) In case of failure to file a return as required by this chapter, unless it can be shown that the failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on the return a penalty of five percent (5%) of the amount of the tax if the failure is for not more than one (1) month, with an additional five percent (5%) for each additional month or fraction thereof during which the failure continues, not to exceed twenty-five percent (25%) in the aggregate.
(5) In case of failure to pay the amount shown as tax on any return specified in subsections (1) and (2) of this section on or before the date prescribed for payment of the tax, determined with regard to any extension of time for payment, unless it is shown that the failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax on the return one-half of one percent (1/2 of 1%) of the amount of the tax if the failure is for not more than one (1) month, with an additional one-half of one percent (1/2 of 1%) for each additional month or fraction thereof during which the failure continues, not to exceed twenty-five percent (25%) in the aggregate.
SECTION 5. Section 27-13-25, Mississippi Code of 1972, is amended as follows:
27-13-25. (1) If, upon examination of a return made under the provisions of this chapter, it appears that the correct amount of tax is greater or less than that shown in the return, the tax shall be recomputed. Any overpayment of tax so determined shall be credited or refunded to the taxpayer. If the correct amount of tax is greater than that shown in the return of the taxpayer, the commissioner shall make his assessment of additional tax due by mail or by personal delivery of the assessment to the taxpayer, which assessment shall constitute notice and demand for payment. The taxpayer shall be given a period of sixty (60) days from the date of the notice in which to pay the additional tax due, including penalty and interest as provided in this section, and if the sum is not paid within the sixty-day period, the commissioner shall proceed to collect it under the provisions of Sections 27-13-29 through 27-13-41, provided that within the sixty-day period the taxpayer may appeal to the board of review as provided by law.
(2) In the case of an overpayment
of tax, interest shall be computed under the provisions of Section 27-7-315.
In the case of an underpayment of tax, interest at the rate of * * *
one-half of one
percent (1/2 of 1%) per month from the due date of the return shall be
added or assessed in addition to the additional tax due as provided in
subsection (1) of this section.
(3) In case of failure to pay any additional taxes as assessed under this section, unless it is shown that the failure is due to reasonable cause and not due to willful neglect, there shall be added to the additional amount assessed a penalty of one-half of one percent (1/2 of 1%) of the amount of the additional tax if the failure is for not more than one (1) month, with an additional one-half of one percent (1/2 of 1%) for each additional month or fraction thereof during which the failure continues, not to exceed twenty-five percent (25%) in the aggregate.
SECTION 6. Section 27-65-39, Mississippi Code of 1972, is amended as follows:
27-65-39. If any part of
the deficient or delinquent tax is due to negligence or failure to comply with
the provisions of this chapter or authorized rules and regulations promulgated
under the provisions of this chapter without intent to defraud, there may be
added as damages ten percent (10%) of the total amount of deficiency or
delinquency in the tax, or interest at the rate of * * * one-half of one percent (1/2
of 1%) per month, or both, from the date such tax was due until paid, and
the tax, damages and interest shall become payable upon notice and demand by
the commissioner.
If any part of the deficient
or delinquent tax is due to intentional disregard of the provisions of this
chapter or authorized rules and regulations promulgated under the provisions of
this chapter, or to fraud with intent to evade the law, then there shall be
added as damages fifty percent (50%) of the total amount of the deficiency or
delinquency of the tax, and in such case the whole amount of tax unpaid,
including the charges so added, shall become due and payable upon notice and
demand by the commissioner, and interest of * * * one-half of one percent (1/2
of 1%) per month of the tax shall be added from the date such tax was due
until paid.
SECTION 7. This act shall take effect and be in force from and after July 1, 2014.
