September 8, 2010, Introduced by Reps. Durhal and Lemmons and referred to the Committee on Tax Policy.
A bill to amend 1941 PA 122, entitled
"An act to establish the revenue collection duties of the
department of treasury; to prescribe its powers and duties as the
revenue collection agency of this state; to prescribe certain
powers and duties of the state treasurer; to establish the
collection duties of certain other state departments for money or
accounts owed to this state; to regulate the importation, stamping,
and disposition of certain tobacco products; to provide for the
transfer of powers and duties now vested in certain other state
boards, commissions, departments, and offices; to prescribe certain
duties of and require certain reports from the department of
treasury; to provide procedures for the payment, administration,
audit, assessment, levy of interests or penalties on, and appeals
of taxes and tax liability; to prescribe its powers and duties if
an agreement to act as agent for a city to administer, collect, and
enforce the city income tax act on behalf of a city is entered into
with any city; to provide an appropriation; to abolish the state
board of tax administration; to prescribe penalties and provide
remedies; and to declare the effect of this act,"
by amending section 31 (MCL 205.31), as amended by 2002 PA 657.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 31. (1) If a taxpayer does not satisfy a tax liability or
makes an excessive claim for a refund as a result of reliance on
erroneous current written information provided by the department,
the state treasurer shall waive all criminal and civil penalties
provided by law for failing or refusing to file a return, for
failing to pay a tax, or for making an excessive claim for a refund
for a tax administered by the department of treasury pursuant to
this act if the taxpayer makes a written request for a waiver,
files a return or an amended return, and makes full payment of the
tax and interest.
(2)
For a period to be designated by the state treasurer of
not
less than 30 days and not more than 60 days, and ending before
September 30, 2002, there shall be an amnesty period during which
the
state treasurer shall waive all criminal and civil penalties
provided
by law for failing or refusing to file a return, for
failing
to pay a tax, or for making an excessive claim for a refund
for
a tax administered by the revenue division of the department of
treasury
under this act if the taxpayer makes a written request for
a
waiver, files a return or an amended return, and makes full
payment
in either a lump sum or installments as provided under
subsection
(9), of the tax and interest due for any prior tax year.
For the period beginning May 15, 2011 and ending June 30, 2011,
there shall be an amnesty period during which the state treasurer
shall waive all criminal and civil penalties provided by law for
failing or refusing to file a return, for failing to pay a tax, or
for making an excessive claim for a refund for a tax administered
by the department of treasury under this act if the taxpayer makes
a written request for a waiver on a form prescribed by the
department, submits any unfiled returns or amended returns, and
makes full payment of the tax and interest due for any prior period
not later than the last day of the amnesty period. This subsection
does not apply to taxes due after December 31, 2009.
(3) This section applies to the nonreporting and
underreporting of tax liabilities and to the nonpayment of taxes
previously determined to be due, but only to the extent of the
penalties attributable to the taxes that were previously due and
that are paid during the amnesty period provided for in subsection
(2).
(4) The department shall administer this section.
(5)
Subsection (2) does not apply to taxes due after June 1,
2001.
(5) (6)
There is appropriated from the revenues generated by
taxes
paid under subsection (2) the sum of $1,500,000.00 to the
department
of treasury for administration of the amnesty program
created
by the amendatory act that added this subsection. This
appropriation
is allotted for expenditure on and after October 1,
2001.
Only general purpose revenue generated by the amendatory act
that
added this subsection may be used to finance this
appropriation.
There is appropriated from
the revenues generated by
taxes paid under subsection (2) the sum of $6,800,000.00 to the
department of treasury for administration and public awareness of
the amnesty program created by the amendatory act that amended this
subsection. This appropriation is allotted for expenditure on and
after October 1, 2010. The appropriation authorized in this
subsection is a work project appropriation and any unencumbered or
unallotted funds are carried forward into the following fiscal
year. The following is in compliance with section 451a(1) of the
management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to provide technical and
administrative support for and public awareness of the 2011 tax
amnesty program in the department of treasury. Costs related to
this project will include, but are not limited to:
(i) Information technology systems changes.
(ii) Staffing-related costs.
(iii) Costs to promote public awareness.
(iv) Any other costs related to implementation and dissolution
of the program, including the resolution of accounts.
(b) The work project will be accomplished through the use of
interagency agreements, grants, state employees, and contracts.
(c) The total estimated completion cost of the project is
$6,800,000.00.
(d) The expected completion date is September 30, 2012.
(6) (7)
The state treasurer shall not waive
criminal and civil
penalties applicable to a tax under subsection (2) if 1 or more of
the following circumstances apply:
(a) If the taxpayer is eligible to enter into a voluntary
disclosure agreement under section 30c for that tax.
(b) If the tax is attributable to income derived from a
criminal act, if the taxpayer is under criminal investigation or
involved in a civil action or criminal prosecution for that tax, or
if the taxpayer has been convicted of a felony under this act or
the internal revenue code of 1986.
(7) (8)
The department shall provide
reasonable notice to
taxpayers that may be eligible for the amnesty program at least 30
days before the start of the designated amnesty period.
Notification shall include, but is not limited to, a description of
the amnesty program on appropriate tax instruction forms and on the
internet.
(9)
Under the amnesty program described in subsection (2), a
taxpayer
may pay tax and interest due in installments if the
taxpayer
meets 1 of the following:
(a)
The taxpayer is an individual and submits the greater of
$10,000.00
or 50% of the tax and interest due with the request for
waiver
under subsection (2) and pays the remaining tax and interest
due
in 2 equal installments, the first installment due no later
than
August 15, 2002 and the second installment due no later than
September 15, 2002.
(b)
A taxpayer that is not an individual submits the greater
of
$100,000.00 or 50% of the tax and interest due with the request
for
waiver under subsection (2) and pays the remaining tax and
interest
due in 2 equal installments, the first installment due no
later
than August 15, 2002 and the second installment due no later
than
September 15, 2002.