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A BILL TO BE ENTITLED
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AN ACT
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relating to suits for tax refunds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 111, Tax Code, is amended |
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by adding Section 111.106 to read as follows: |
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Sec. 111.106. TAX REFUND: NOTICE OF INTENT TO BYPASS |
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HEARING. (a) A person claiming a refund under Section 111.104 may |
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file with the comptroller a notice of intent to bypass the hearing |
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under Section 111.105. The notice of intent must: |
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(1) be filed on or before the 60th day after the date |
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the comptroller issues a letter denying the claim for refund; |
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(2) be in writing; |
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(3) assert the material facts and each specific legal |
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basis on which a refund is claimed; and |
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(4) specify the amount of the refund claimed. |
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(b) A person who files a notice of intent under Subsection |
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(a) may bypass the hearing under Section 111.105 and bring a suit |
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under Subchapter D, Chapter 112, if: |
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(1) the person participated in a conference under |
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Subsection (c), in which case the suit must be filed on or before |
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the 60th day after the date the conference concludes or a later date |
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agreed to by the comptroller; or |
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(2) the comptroller does not provide notice in the |
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time required by Subsection (d) that a conference is required, in |
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which case the suit must be filed on or before the 90th day after the |
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date the notice of intent was filed. |
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(c) The comptroller may require a conference between a |
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person who files a notice of intent under Subsection (a) and a |
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designated officer or employee of the comptroller to clarify any |
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fact or legal issue in dispute regarding the refund claim and to |
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discuss the availability of additional documentation that may |
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assist in resolving outstanding issues regarding the claim. The |
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person who filed the notice of intent may amend a material fact or |
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legal basis described by Subsection (a)(3) following the conference |
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if the comptroller agrees in writing to the amendment. |
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(d) If the comptroller requires a conference under |
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Subsection (c), the comptroller shall notify the person of the |
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conference requirement not later than the 30th day after the date |
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the notice of intent under Subsection (a) was filed. The notice of |
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the conference requirement must be in writing and include a date and |
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time for the conference. The conference date provided in the notice |
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must be no later than the 90th day after the date the notice of |
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intent was filed. |
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(e) The person who filed the notice of intent under |
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Subsection (a) may request to reschedule the conference date |
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provided in the notice under Subsection (d). The comptroller shall |
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make a good faith effort to accommodate the request. If the |
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comptroller and the person who filed the notice of intent do not |
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agree on or before the 90th day after the date the notice of intent |
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was filed to a rescheduled date for the conference, the person may |
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rescind the notice of intent on or before the 120th day after the |
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date the notice of intent was filed and request a hearing under |
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Section 111.105. |
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(f) Except as provided by Subsection (e), a person who files |
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a notice of intent under Subsection (a) waives the person's right to |
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a hearing under Section 111.105. |
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SECTION 2. Sections 112.151(a), (c), and (d), Tax Code, are |
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amended to read as follows: |
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(a) A person may sue the comptroller to recover an amount of |
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tax, penalty, or interest that has been the subject of a tax refund |
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claim if the person [has]: |
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(1) has filed a tax refund claim under Section 111.104 |
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[of this code]; |
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(2) either: |
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(A) has filed, as provided by Section 111.105 [of |
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this code], a motion for rehearing that has been denied by the |
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comptroller; or |
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(B) is authorized to bring the suit under Section |
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111.106(b); and |
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(3) has paid any additional tax found due in a jeopardy |
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or deficiency determination that applies to the tax liability |
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period covered in the tax refund claim. |
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(c) A person who satisfies the requirement of Subsection |
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(a)(2)(A) must file the [The] suit [must be filed] before the |
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expiration of 60 [30] days after the issue date of the denial of the |
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motion for rehearing or it is barred. A person who satisfies the |
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requirement of Subsection (a)(2)(B) must file the suit during the |
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time provided by Section 111.106(b) or it is barred. |
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(d) The amount of the refund sought must be set out in the |
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original petition. A copy of the motion for rehearing filed under |
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Section 111.105 or the notice of intent filed under Section |
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111.106(a), as applicable, [of this code] must be attached to the |
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original petition filed with the court and to the copies of the |
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original petition served on the comptroller and the attorney |
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general. |
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SECTION 3. Section 112.152, Tax Code, is amended to read as |
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follows: |
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Sec. 112.152. ISSUES IN SUIT. (a) The [grounds of error |
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contained in the motion for rehearing are the] only issues that may |
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be raised in a suit under this subchapter are, as applicable, the: |
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(1) grounds of error contained in the motion for |
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rehearing; or |
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(2) material facts and legal bases contained in the |
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notice of intent filed under Section 111.106(a). |
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(b) The suit applies only to a tax liability period |
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considered in the comptroller's decision or covered by the notice |
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of intent filed under Section 111.106, as applicable. |
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SECTION 4. This Act applies to a claim for a refund that is |
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pending or filed on or after the effective date of this Act, without |
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regard to whether the taxes that are the subject of the claim were |
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due before, on, or after that date. |
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SECTION 5. This Act takes effect September 1, 2021. |