Dispute over collection or remittance of sales or use tax--abatementallowed, when--administrative review.
32.375. 1. Notwithstanding any provision of law to the contrary, in anydispute regarding the potential liability of a taxpayer for collection andremittance or payment of sales or use tax or related interest, additions totax or penalties, the director of revenue may, at the request of the taxpayer,consider the reasons for the taxpayer's failure to pay the amounts in dispute.
2. The director may abate all or any portion of any amount assessed ordecide to not assess any such amount pursuant to this section if the directordetermines:
(1) The taxpayer took reasonable steps to determine whether the amountswere owed;
(2) Based on information reasonably available to the taxpayer, thetaxpayer reasonably believed that the transactions at issue were not subjectto tax and that the amounts in dispute were not owed;
(3) At the time of the transactions at issue, the department of revenuehad not issued either:
(a) A regulation that indicated that the transactions at issue weresubject to tax; or
(b) Any other written or oral communication that the taxpayer knew of orshould have known of stating that the transactions at issue were subject totax; and
(4) In the discretion of the director, such abatement is in the bestinterest of the state and will not undermine compliance by taxpayers with thetax laws of this state.
3. If the director determines that any amounts may be abated pursuant tothis section, as consideration for the abatement, the taxpayer shall agreethat:
(1) The taxpayer shall bear his or her own costs, including any attorneyfees;
(2) During the three-year period beginning with the date of theagreement, the taxpayer shall comply with all sales and use tax obligationsarising from the type of transactions that were the basis of the amounts thatare the subject of the agreement and the taxpayer shall not challenge orprotest any such sales or use tax obligations arising during the three-yearperiod; except that any final decision of a court of competent jurisdictionfinding such transactions to be nontaxable and any statutory changes thatbecome effective during the three-year period shall apply to the taxpayernotwithstanding any provision of the agreement; and
(3) The taxpayer shall not contest in court or otherwise any amount ofthe liability sought to be abated.
4. If due to a disagreement concerning the amount to be abated thetaxpayer does not agree to the terms provided by subsection 3 of this sectionor if the director determines the amounts in dispute should not be abated, thedirector shall issue a final decision setting forth the director'sdetermination. Within sixty days after the date on which the director'sdecision is delivered in person or is mailed to the taxpayer, whichever isearlier, the taxpayer may file a petition for review of the final decisionwith the administrative hearing commission.
5. On petition for review before the administrative hearing commission,the commission shall consider whether the director's determination wasreasonable based on the factors set forth in subsection 2 of this section.The commission may:
(1) Issue an order to the director stating an amount to be abated by thedirector, if the commission finds the director's decision unreasonable; or
(2) Issue an order denying the relief sought by the taxpayer, if thecommission finds the director's determination reasonable.
6. The provisions of subsection 3 of this section shall apply to anyabatement ordered by the commission.
7. A decision of the administrative hearing commission pursuant to thissection shall not be subject to appeal or petition for review by the taxpayeror the director.
Dispute over collection or remittance of sales or use tax--abatementallowed, when--administrative review.
32.375. 1. Notwithstanding any provision of law to the contrary, in anydispute regarding the potential liability of a taxpayer for collection andremittance or payment of sales or use tax or related interest, additions totax or penalties, the director of revenue may, at the request of the taxpayer,consider the reasons for the taxpayer's failure to pay the amounts in dispute.
2. The director may abate all or any portion of any amount assessed ordecide to not assess any such amount pursuant to this section if the directordetermines:
(1) The taxpayer took reasonable steps to determine whether the amountswere owed;
(2) Based on information reasonably available to the taxpayer, thetaxpayer reasonably believed that the transactions at issue were not subjectto tax and that the amounts in dispute were not owed;
(3) At the time of the transactions at issue, the department of revenuehad not issued either:
(a) A regulation that indicated that the transactions at issue weresubject to tax; or
(b) Any other written or oral communication that the taxpayer knew of orshould have known of stating that the transactions at issue were subject totax; and
(4) In the discretion of the director, such abatement is in the bestinterest of the state and will not undermine compliance by taxpayers with thetax laws of this state.
3. If the director determines that any amounts may be abated pursuant tothis section, as consideration for the abatement, the taxpayer shall agreethat:
(1) The taxpayer shall bear his or her own costs, including any attorneyfees;
(2) During the three-year period beginning with the date of theagreement, the taxpayer shall comply with all sales and use tax obligationsarising from the type of transactions that were the basis of the amounts thatare the subject of the agreement and the taxpayer shall not challenge orprotest any such sales or use tax obligations arising during the three-yearperiod; except that any final decision of a court of competent jurisdictionfinding such transactions to be nontaxable and any statutory changes thatbecome effective during the three-year period shall apply to the taxpayernotwithstanding any provision of the agreement; and
(3) The taxpayer shall not contest in court or otherwise any amount ofthe liability sought to be abated.
4. If due to a disagreement concerning the amount to be abated thetaxpayer does not agree to the terms provided by subsection 3 of this sectionor if the director determines the amounts in dispute should not be abated, thedirector shall issue a final decision setting forth the director'sdetermination. Within sixty days after the date on which the director'sdecision is delivered in person or is mailed to the taxpayer, whichever isearlier, the taxpayer may file a petition for review of the final decisionwith the administrative hearing commission.
5. On petition for review before the administrative hearing commission,the commission shall consider whether the director's determination wasreasonable based on the factors set forth in subsection 2 of this section.The commission may:
(1) Issue an order to the director stating an amount to be abated by thedirector, if the commission finds the director's decision unreasonable; or
(2) Issue an order denying the relief sought by the taxpayer, if thecommission finds the director's determination reasonable.
6. The provisions of subsection 3 of this section shall apply to anyabatement ordered by the commission.
7. A decision of the administrative hearing commission pursuant to thissection shall not be subject to appeal or petition for review by the taxpayeror the director.
Dispute over collection or remittance of sales or use tax--abatementallowed, when--administrative review.
32.375. 1. Notwithstanding any provision of law to the contrary, in anydispute regarding the potential liability of a taxpayer for collection andremittance or payment of sales or use tax or related interest, additions totax or penalties, the director of revenue may, at the request of the taxpayer,consider the reasons for the taxpayer's failure to pay the amounts in dispute.
2. The director may abate all or any portion of any amount assessed ordecide to not assess any such amount pursuant to this section if the directordetermines:
(1) The taxpayer took reasonable steps to determine whether the amountswere owed;
(2) Based on information reasonably available to the taxpayer, thetaxpayer reasonably believed that the transactions at issue were not subjectto tax and that the amounts in dispute were not owed;
(3) At the time of the transactions at issue, the department of revenuehad not issued either:
(a) A regulation that indicated that the transactions at issue weresubject to tax; or
(b) Any other written or oral communication that the taxpayer knew of orshould have known of stating that the transactions at issue were subject totax; and
(4) In the discretion of the director, such abatement is in the bestinterest of the state and will not undermine compliance by taxpayers with thetax laws of this state.
3. If the director determines that any amounts may be abated pursuant tothis section, as consideration for the abatement, the taxpayer shall agreethat:
(1) The taxpayer shall bear his or her own costs, including any attorneyfees;
(2) During the three-year period beginning with the date of theagreement, the taxpayer shall comply with all sales and use tax obligationsarising from the type of transactions that were the basis of the amounts thatare the subject of the agreement and the taxpayer shall not challenge orprotest any such sales or use tax obligations arising during the three-yearperiod; except that any final decision of a court of competent jurisdictionfinding such transactions to be nontaxable and any statutory changes thatbecome effective during the three-year period shall apply to the taxpayernotwithstanding any provision of the agreement; and
(3) The taxpayer shall not contest in court or otherwise any amount ofthe liability sought to be abated.
4. If due to a disagreement concerning the amount to be abated thetaxpayer does not agree to the terms provided by subsection 3 of this sectionor if the director determines the amounts in dispute should not be abated, thedirector shall issue a final decision setting forth the director'sdetermination. Within sixty days after the date on which the director'sdecision is delivered in person or is mailed to the taxpayer, whichever isearlier, the taxpayer may file a petition for review of the final decisionwith the administrative hearing commission.
5. On petition for review before the administrative hearing commission,the commission shall consider whether the director's determination wasreasonable based on the factors set forth in subsection 2 of this section.The commission may:
(1) Issue an order to the director stating an amount to be abated by thedirector, if the commission finds the director's decision unreasonable; or
(2) Issue an order denying the relief sought by the taxpayer, if thecommission finds the director's determination reasonable.
6. The provisions of subsection 3 of this section shall apply to anyabatement ordered by the commission.
7. A decision of the administrative hearing commission pursuant to thissection shall not be subject to appeal or petition for review by the taxpayeror the director.
