MISSISSIPPI LEGISLATURE
2000 Regular Session
To: Finance
By: Senator(s) Ross
Senate Bill 2996
AN ACT TO CODIFY SECTION 27-3-80, MISSISSIPPI CODE OF 1972, TO EMPOWER THE SATE TAX COMMISSION TO ENTER INTO AN AGREEMENT WITH ANY TAXPAYER FOR THE SETTLEMENT OR COMPROMISE OF TAX LIABILITIES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The following shall be codified as Section 27-3-80, Mississippi Code of 1972:
27-3-80. Settlement or Compromise of Tax Liabilities.
The State Tax Commission shall have the power and authority to enter into an agreement with any taxpayer under which such taxpayer's tax liabilities, or any part thereof, including any applicable or assessed interest and penalty, are settled and compromised, and in connection therewith to receive and consider offers in compromise and settlement proposals, and to enter into binding settlement agreements and closing agreements under which a taxpayer's liabilities for taxes, interest and penalties are fully and finally compromised and settled. Such power and authority shall extend to and include compromise and settlements of proposed tax assessments, final tax assessments, and tax liabilities reflected by filed returns, judgments for taxes, and other proposed or final tax assessments and liabilities, and applicable interest and penalties.
The State Tax Commission or commissioner shall develop procedures for the receipt and consideration of offers in compromise and settlement proposals. In considering and taking action upon such offers and proposals, the State Tax Commission or the commissioner shall take into account:
(1) Controversy or doubt as to the taxpayer's liability for the tax that is the subject of the offer in compromise or settlement proposal;
(2) Controversy or doubt as to the collectability of the tax that is the subject of the offer in compromise or settlement proposal;
(3) That payment of the tax liability, or the interest or penalty thereon, will render the taxpayer insolvent, or incapable of continuing as a going business concern;
(4) That the taxpayer has had an offer in compromise accepted by the Internal Revenue Service, or has otherwise compromised or settled the federal tax liability relating to the same or a similar type of federal tax for the periods in question; and
(5) Hazards and costs of administrative proceedings and litigation.
With respect to the compromise of interest or penalties, the State Tax Commission or commissioner shall take into account, in addition to the factors listed above, whether the failure to pay applicable tax resulted from a mistake of fact or law, made in good faith.
A closing agreement or settlement agreement signed by the commissioner, or the commissioner's designee, shall be final and conclusive, and except upon a showing of fraud or misrepresentation of a material fact, no additional assessment or collection shall be made by the commissioner or the State Tax Commission, and the taxpayer shall not institute any judicial proceeding to recover the taxpayer
=s liabilities as agreed to in the closing agreement or settlement agreement.The commissioner shall promulgate regulations to establish the procedures for the receipt and consideration of offers in compromise and settlement proposals, and for determining whether an offer in compromise or settlement proposal is adequate and acceptable to resolve tax liability.
SECTION 2. This act shall take effect and be in force from and after July 1, 2000.