Compromise of taxes, interest, penalties, or additions to the tax,when--taxpayer agreements and duties--statute of limitations ifcompromise agreed upon--director's duties--rulemaking authority.
32.378. 1. In addition to the authority granted to the director ofrevenue and the administrative hearing commission pursuant to section32.375, the director of revenue may agree to compromise any tax, interest,penalties or additions to tax assessed or collected by the director ofrevenue on any of the following grounds:
(1) Doubt as to liability, which exists in any case where there is agenuine dispute as to the existence or amount of the correct tax liabilityunder the law;
(2) Doubt as to collectibility, which exists in any case where theamount assessed including interest, additions to tax and penalties exceedsthe taxpayer's ability to pay as defined by regulations promulgated by thedirector of revenue; or
(3) To promote effective tax administration which means thatcompromise of the liability will not undermine compliance by taxpayers withthe tax laws and that:
(a) Collection of the full liability will result in severe economichardship to the taxpayer; or
(b) Regardless of the taxpayer's financial circumstances, exceptionalcircumstances exist such that collection of the full liability will bedetrimental to voluntary compliance by taxpayers. Such exceptionalcircumstances include, but are not limited to, instances where thetaxpayer's failure to pay the taxes assessed is the result of circumstancesbeyond the reasonable control of the taxpayer and is not the result ofnegligence on the part of the taxpayer, or instances where a reasonableperson would not have expected the assessment based on previous policy ofthe department of revenue or information provided to the taxpayer by thedepartment of revenue.
2. As part of the consideration for any compromise of taxes that isbased on subdivision (2) or (3) of subsection 1 of this section, thetaxpayer shall agree:
(1) That the state of Missouri shall keep all payments and othercredits applied to the tax, interest, penalties or additions to tax for theperiods covered by the offer;
(2) That the state of Missouri shall keep any and all amountsotherwise due the taxpayer as a result of overpayments of any tax or otherliability, including interest, additions to tax and penalties, for periodsending before or as of the end of the calendar year in which the offer isaccepted; except that the state shall not keep any amounts that, togetherwith amounts already paid on the compromise, exceed the liabilitycompromised;
(3) That the taxpayer shall have no right to contest in court orotherwise the amount of the liability compromised;
(4) That the taxpayer shall bear his or her own costs, including anyattorney fees;
(5) That during the three-year period beginning with the date of thecompromise, the taxpayer shall comply with all tax obligations arising fromissues or transactions related to the issues or transactions that were thebasis of the tax that is the subject of the compromise and that thetaxpayer shall not challenge or protest any such tax obligations arisingduring the three-year period; however, any statutory changes that becomeeffective during the three-year period shall apply to the taxpayernotwithstanding this provision of the compromise;
(6) That if there is a default in payment of any principal orinterest due under terms of the agreement of compromise, or if the taxpayerfails to comply with the provisions of the agreement set forth insubdivision (5) of this subsection, the director of revenue may:
(a) Proceed immediately by suit to collect the entire unpaid balanceof the amount agreed upon; or
(b) Proceed immediately by suit to collect as liquidated damages anamount equal to the liability compromised, minus any payments alreadyreceived under the terms of the agreement, with interest on the unpaidbalance from the date of default; or
(c) Disregard the amount of the compromise and apply all amountspreviously paid under the agreement against the amount of the liabilitycompromised and assess and collect by levy or suit the balance of theliability. If the director chooses this option, the taxpayer shall havethe right to contest in court or otherwise the amount of the liabilitycompromised.
3. The director's remedies under this section are cumulative and thedirector may pursue any combination of such remedies together orconsecutively until the entire liability is paid. No action or inaction bythe director shall constitute a waiver or election not to pursue any remedygranted by this section.
4. The taxpayer requesting to compromise payment of taxes, interest,additions to tax, or penalties shall provide any information reasonablyrequested by the director in order that the director may determine that theoffer is made in good faith.
5. If compromise of taxes is agreed upon, any statute of limitationsapplicable to the assessment and collection of the liability compromisedshall be tolled during the period beginning on the date of the compromiseand ending one year after the last payment is due pursuant to theagreement.
6. The director's decision to reject or accept an offer of compromiseunder this section shall be based on consideration of all the facts andcircumstances, including the taxpayer's record of overall compliance withthe tax laws. Notwithstanding any provision of law to the contrary, thedirector's decision shall not be subject to review by the administrativehearing commission or any court.
7. The director shall prescribe guidelines for employees of theMissouri department of revenue to determine whether an offer-in-compromiseis adequate and should be accepted to resolve a dispute.
8. The director shall establish procedures for an independentadministrative review of any rejection of a proposed offer-in-compromisemade by a taxpayer pursuant to this section before such rejection iscommunicated to the taxpayer.
9. The provisions of this section shall not apply to the resolutionof any dispute of tax liability in accordance with section 32.375.
10. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection shall become effective only if it complies with and is subject toall of the provisions of chapter 536, RSMo, and, if applicable, section536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and ifany of the powers vested with the general assembly pursuant to chapter 536,RSMo, to review, to delay the effective date or to disapprove and annul arule are subsequently held unconstitutional, then the grant of rulemakingauthority and any rule proposed or adopted after August 28, 2002, shall beinvalid and void.
Compromise of taxes, interest, penalties, or additions to the tax,when--taxpayer agreements and duties--statute of limitations ifcompromise agreed upon--director's duties--rulemaking authority.
32.378. 1. In addition to the authority granted to the director ofrevenue and the administrative hearing commission pursuant to section32.375, the director of revenue may agree to compromise any tax, interest,penalties or additions to tax assessed or collected by the director ofrevenue on any of the following grounds:
(1) Doubt as to liability, which exists in any case where there is agenuine dispute as to the existence or amount of the correct tax liabilityunder the law;
(2) Doubt as to collectibility, which exists in any case where theamount assessed including interest, additions to tax and penalties exceedsthe taxpayer's ability to pay as defined by regulations promulgated by thedirector of revenue; or
(3) To promote effective tax administration which means thatcompromise of the liability will not undermine compliance by taxpayers withthe tax laws and that:
(a) Collection of the full liability will result in severe economichardship to the taxpayer; or
(b) Regardless of the taxpayer's financial circumstances, exceptionalcircumstances exist such that collection of the full liability will bedetrimental to voluntary compliance by taxpayers. Such exceptionalcircumstances include, but are not limited to, instances where thetaxpayer's failure to pay the taxes assessed is the result of circumstancesbeyond the reasonable control of the taxpayer and is not the result ofnegligence on the part of the taxpayer, or instances where a reasonableperson would not have expected the assessment based on previous policy ofthe department of revenue or information provided to the taxpayer by thedepartment of revenue.
2. As part of the consideration for any compromise of taxes that isbased on subdivision (2) or (3) of subsection 1 of this section, thetaxpayer shall agree:
(1) That the state of Missouri shall keep all payments and othercredits applied to the tax, interest, penalties or additions to tax for theperiods covered by the offer;
(2) That the state of Missouri shall keep any and all amountsotherwise due the taxpayer as a result of overpayments of any tax or otherliability, including interest, additions to tax and penalties, for periodsending before or as of the end of the calendar year in which the offer isaccepted; except that the state shall not keep any amounts that, togetherwith amounts already paid on the compromise, exceed the liabilitycompromised;
(3) That the taxpayer shall have no right to contest in court orotherwise the amount of the liability compromised;
(4) That the taxpayer shall bear his or her own costs, including anyattorney fees;
(5) That during the three-year period beginning with the date of thecompromise, the taxpayer shall comply with all tax obligations arising fromissues or transactions related to the issues or transactions that were thebasis of the tax that is the subject of the compromise and that thetaxpayer shall not challenge or protest any such tax obligations arisingduring the three-year period; however, any statutory changes that becomeeffective during the three-year period shall apply to the taxpayernotwithstanding this provision of the compromise;
(6) That if there is a default in payment of any principal orinterest due under terms of the agreement of compromise, or if the taxpayerfails to comply with the provisions of the agreement set forth insubdivision (5) of this subsection, the director of revenue may:
(a) Proceed immediately by suit to collect the entire unpaid balanceof the amount agreed upon; or
(b) Proceed immediately by suit to collect as liquidated damages anamount equal to the liability compromised, minus any payments alreadyreceived under the terms of the agreement, with interest on the unpaidbalance from the date of default; or
(c) Disregard the amount of the compromise and apply all amountspreviously paid under the agreement against the amount of the liabilitycompromised and assess and collect by levy or suit the balance of theliability. If the director chooses this option, the taxpayer shall havethe right to contest in court or otherwise the amount of the liabilitycompromised.
3. The director's remedies under this section are cumulative and thedirector may pursue any combination of such remedies together orconsecutively until the entire liability is paid. No action or inaction bythe director shall constitute a waiver or election not to pursue any remedygranted by this section.
4. The taxpayer requesting to compromise payment of taxes, interest,additions to tax, or penalties shall provide any information reasonablyrequested by the director in order that the director may determine that theoffer is made in good faith.
5. If compromise of taxes is agreed upon, any statute of limitationsapplicable to the assessment and collection of the liability compromisedshall be tolled during the period beginning on the date of the compromiseand ending one year after the last payment is due pursuant to theagreement.
6. The director's decision to reject or accept an offer of compromiseunder this section shall be based on consideration of all the facts andcircumstances, including the taxpayer's record of overall compliance withthe tax laws. Notwithstanding any provision of law to the contrary, thedirector's decision shall not be subject to review by the administrativehearing commission or any court.
7. The director shall prescribe guidelines for employees of theMissouri department of revenue to determine whether an offer-in-compromiseis adequate and should be accepted to resolve a dispute.
8. The director shall establish procedures for an independentadministrative review of any rejection of a proposed offer-in-compromisemade by a taxpayer pursuant to this section before such rejection iscommunicated to the taxpayer.
9. The provisions of this section shall not apply to the resolutionof any dispute of tax liability in accordance with section 32.375.
10. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection shall become effective only if it complies with and is subject toall of the provisions of chapter 536, RSMo, and, if applicable, section536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and ifany of the powers vested with the general assembly pursuant to chapter 536,RSMo, to review, to delay the effective date or to disapprove and annul arule are subsequently held unconstitutional, then the grant of rulemakingauthority and any rule proposed or adopted after August 28, 2002, shall beinvalid and void.
Compromise of taxes, interest, penalties, or additions to the tax,when--taxpayer agreements and duties--statute of limitations ifcompromise agreed upon--director's duties--rulemaking authority.
32.378. 1. In addition to the authority granted to the director ofrevenue and the administrative hearing commission pursuant to section32.375, the director of revenue may agree to compromise any tax, interest,penalties or additions to tax assessed or collected by the director ofrevenue on any of the following grounds:
(1) Doubt as to liability, which exists in any case where there is agenuine dispute as to the existence or amount of the correct tax liabilityunder the law;
(2) Doubt as to collectibility, which exists in any case where theamount assessed including interest, additions to tax and penalties exceedsthe taxpayer's ability to pay as defined by regulations promulgated by thedirector of revenue; or
(3) To promote effective tax administration which means thatcompromise of the liability will not undermine compliance by taxpayers withthe tax laws and that:
(a) Collection of the full liability will result in severe economichardship to the taxpayer; or
(b) Regardless of the taxpayer's financial circumstances, exceptionalcircumstances exist such that collection of the full liability will bedetrimental to voluntary compliance by taxpayers. Such exceptionalcircumstances include, but are not limited to, instances where thetaxpayer's failure to pay the taxes assessed is the result of circumstancesbeyond the reasonable control of the taxpayer and is not the result ofnegligence on the part of the taxpayer, or instances where a reasonableperson would not have expected the assessment based on previous policy ofthe department of revenue or information provided to the taxpayer by thedepartment of revenue.
2. As part of the consideration for any compromise of taxes that isbased on subdivision (2) or (3) of subsection 1 of this section, thetaxpayer shall agree:
(1) That the state of Missouri shall keep all payments and othercredits applied to the tax, interest, penalties or additions to tax for theperiods covered by the offer;
(2) That the state of Missouri shall keep any and all amountsotherwise due the taxpayer as a result of overpayments of any tax or otherliability, including interest, additions to tax and penalties, for periodsending before or as of the end of the calendar year in which the offer isaccepted; except that the state shall not keep any amounts that, togetherwith amounts already paid on the compromise, exceed the liabilitycompromised;
(3) That the taxpayer shall have no right to contest in court orotherwise the amount of the liability compromised;
(4) That the taxpayer shall bear his or her own costs, including anyattorney fees;
(5) That during the three-year period beginning with the date of thecompromise, the taxpayer shall comply with all tax obligations arising fromissues or transactions related to the issues or transactions that were thebasis of the tax that is the subject of the compromise and that thetaxpayer shall not challenge or protest any such tax obligations arisingduring the three-year period; however, any statutory changes that becomeeffective during the three-year period shall apply to the taxpayernotwithstanding this provision of the compromise;
(6) That if there is a default in payment of any principal orinterest due under terms of the agreement of compromise, or if the taxpayerfails to comply with the provisions of the agreement set forth insubdivision (5) of this subsection, the director of revenue may:
(a) Proceed immediately by suit to collect the entire unpaid balanceof the amount agreed upon; or
(b) Proceed immediately by suit to collect as liquidated damages anamount equal to the liability compromised, minus any payments alreadyreceived under the terms of the agreement, with interest on the unpaidbalance from the date of default; or
(c) Disregard the amount of the compromise and apply all amountspreviously paid under the agreement against the amount of the liabilitycompromised and assess and collect by levy or suit the balance of theliability. If the director chooses this option, the taxpayer shall havethe right to contest in court or otherwise the amount of the liabilitycompromised.
3. The director's remedies under this section are cumulative and thedirector may pursue any combination of such remedies together orconsecutively until the entire liability is paid. No action or inaction bythe director shall constitute a waiver or election not to pursue any remedygranted by this section.
4. The taxpayer requesting to compromise payment of taxes, interest,additions to tax, or penalties shall provide any information reasonablyrequested by the director in order that the director may determine that theoffer is made in good faith.
5. If compromise of taxes is agreed upon, any statute of limitationsapplicable to the assessment and collection of the liability compromisedshall be tolled during the period beginning on the date of the compromiseand ending one year after the last payment is due pursuant to theagreement.
6. The director's decision to reject or accept an offer of compromiseunder this section shall be based on consideration of all the facts andcircumstances, including the taxpayer's record of overall compliance withthe tax laws. Notwithstanding any provision of law to the contrary, thedirector's decision shall not be subject to review by the administrativehearing commission or any court.
7. The director shall prescribe guidelines for employees of theMissouri department of revenue to determine whether an offer-in-compromiseis adequate and should be accepted to resolve a dispute.
8. The director shall establish procedures for an independentadministrative review of any rejection of a proposed offer-in-compromisemade by a taxpayer pursuant to this section before such rejection iscommunicated to the taxpayer.
9. The provisions of this section shall not apply to the resolutionof any dispute of tax liability in accordance with section 32.375.
10. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection shall become effective only if it complies with and is subject toall of the provisions of chapter 536, RSMo, and, if applicable, section536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and ifany of the powers vested with the general assembly pursuant to chapter 536,RSMo, to review, to delay the effective date or to disapprove and annul arule are subsequently held unconstitutional, then the grant of rulemakingauthority and any rule proposed or adopted after August 28, 2002, shall beinvalid and void.
