NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.
Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.
| SPONSOR: | Wilson | DATE TYPED: | 02/11/00 | HB | |||
| SHORT TITLE: | Erroneous Claims of Income Taxes Owed | SB | 169/aSWMC | ||||
| ANALYST: | Williams | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY00 | FY01 | |||
| $ (70.0) | $ (70.0) | Recurring | General Fund | |
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD) - Revised Analysis
Attorney General (AG)
SUMMARY
Synopsis of SWMC Amendment
The amendment addressed a technical concern with the bill identified by TRD. The controversial letters of advisement were not sent in March 1999, but instead in August 1999 and requested response by September 7, 1999. The amendment only changes the dates.
Synopsis of Original Bill
Certain taxpayers may claim as a credit against income tax due any expenses incurred in defense of an erroneous claim by TRD in a letter of advisement regarding the taxpayer owed income taxes for prior years. This credit could be carried forward for one tax year.
FISCAL IMPLICATIONS
TRD estimates a General Fund revenue loss of $70.0, based on an estimated cost of $200 per claim.
ADMINISTRATIVE IMPLICATIONS
TRD estimates an additional 2 FTE would be required in FY01 at a cost of $60.0 to verify claims.
AW/njw:gm