By Isett H.B. No. 2832
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to tax auditing and collection procedures.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter A, Chapter 111, Tax Code, is amended
1-5 by adding Sections 111.0037 and 111.0038 to read as follows:
1-6 Sec. 111.0037. SELF-AUDITING UNDER SUPERVISION OF
1-7 COMPTROLLER. (a) A taxpayer may apply to the comptroller for
1-8 permission to conduct its own tax audit under the supervision of
1-9 the comptroller.
1-10 (b) The comptroller shall allow the taxpayer to conduct its
1-11 own tax audit if the comptroller determines that:
1-12 (1) the auditing procedures used by the taxpayer to
1-13 conduct its own tax audit are accurate and verifiable;
1-14 (2) the nature of the taxpayer's business makes a
1-15 self-audit reasonable; and
1-16 (3) allowing the taxpayer to conduct its own audit is
1-17 likely to be time-efficient.
1-18 (c) The comptroller may supervise, verify, or audit the
1-19 audit process of the taxpayer in any manner the comptroller
1-20 considers necessary.
1-21 (d) Notwithstanding Sections 111.060 and 111.061, any
1-22 interest or penalty is waived on any delinquent tax found by a
1-23 self-audit under this section.
1-24 (e) The taxpayer is entitled to a refund of any tax
2-1 overpayment found by a self-audit under this section.
2-2 Sec. 111.0038. PERCENTAGE-BASED REPORTING. The comptroller
2-3 may implement a system of percentage-based reporting that allows a
2-4 taxpayer the nature of whose business the comptroller determines is
2-5 suitable for the system to report its future tax responsibilities
2-6 based on a historical percentage calculated from a sample of
2-8 SECTION 2. Section 111.104, Tax Code, is amended by amending
2-9 Subsection (f) and adding Subsections (g) and (h) to read as
2-11 (f) Except as provided by Subsection (g), no [
2-12 penalties, or interest may be refunded to a person who has
2-13 collected the taxes from another person unless the person has
2-14 refunded all the taxes and interest to the person from whom the
2-15 taxes were collected.
2-16 (g) A person who holds a sales tax permit under Chapter 151
2-17 and who makes a claim under this section for a refund of sales
2-18 taxes paid by the person in error may take a credit on the person's
2-19 sales tax return for the amount claimed to have been paid in error.
2-20 If the claim is finally denied in whole or in part, the person is
2-21 liable for the tax due and any applicable interest and penalty.
2-22 (h) In finding whether an amount of tax has been unlawfully
2-23 or erroneously collected under Subsection (a), the comptroller
2-24 shall use, on its own initiative or at the request of the taxpayer,
2-25 the same or similar audit sampling techniques used by the
2-26 comptroller to determine if there is any tax deficiency.
2-27 SECTION 3. (a) This Act takes effect September 1, 1999.
3-1 (b) Section 2 of this Act applies to a claim for a refund of
3-2 tax made on or after the effective date of this Act, without regard
3-3 to whether the tax is claimed to have been erroneously paid before,
3-4 on, or after that date.
3-5 SECTION 4. The importance of this legislation and the
3-6 crowded condition of the calendars in both houses create an
3-7 emergency and an imperative public necessity that the
3-8 constitutional rule requiring bills to be read on three several
3-9 days in each house be suspended, and this rule is hereby suspended.