Florida Senate - 2023                                     SB 182
       
       
        
       By Senator Rodriguez
       
       
       
       
       
       40-00058B-23                                           2023182__
    1                        A bill to be entitled                      
    2         An act relating to taxpayer delinquencies; amending s.
    3         213.21, F.S.; requiring the Department of Revenue, if
    4         requested by a taxpayer, to convene an informal
    5         conference to discuss a compromise of the taxpayer’s
    6         liability for any tax, interest, or penalty;
    7         authorizing the department to request to review
    8         certain records; requiring the department to take no
    9         action during the course of the informal conferencing;
   10         requiring the department to compromise a taxpayer’s
   11         liability for certain taxes and interest under
   12         specified conditions; creating a rebuttable
   13         presumption if a taxpayer does not provide specified
   14         records requested by the department; authorizing the
   15         department to settle or compromise certain penalties
   16         under specified circumstances; amending s. 213.67,
   17         F.S.; requiring, rather than authorizing, the
   18         department’s executive director or his or her designee
   19         to give a specified notice of a delinquency to attempt
   20         to informally resolve the delinquency; specifying that
   21         the taxpayer must receive assistance from the
   22         taxpayers’ rights advocate; requiring the department
   23         to issue a notice of intent to garnish under specified
   24         circumstances; specifying requirements for the notice;
   25         providing construction; providing an effective date.
   26          
   27  Be It Enacted by the Legislature of the State of Florida:
   28  
   29         Section 1. Paragraph (a) of subsection (3) of section
   30  213.21, Florida Statutes, is amended to read:
   31         213.21 Informal conferences; compromises.—
   32         (3)(a) If requested by a taxpayer, the department must
   33  convene an informal conference to discuss a compromise of the
   34  taxpayer’s liability for any tax, interest, or penalty. The
   35  department may request to review the taxpayer’s expenses,
   36  assets, and profit records for the period under dispute to
   37  determine the legitimacy of the taxpayer’s financial status.
   38  From the time the taxpayer requests an informal conference until
   39  the informal conference is concluded, the department must place
   40  a hold on the account and may take no action, including issuing
   41  a writ of garnishment, freezing of bank accounts, or assessing
   42  additional penalties. A taxpayer’s liability for any tax or
   43  interest specified in s. 72.011(1) in excess of 25 percent of
   44  the disputed tax amount shall may be compromised by the
   45  department upon the grounds of doubt as to liability for or
   46  collectibility of such tax or interest. A taxpayer’s liability
   47  for interest under any of the chapters specified in s. 72.011(1)
   48  shall be settled or compromised in whole or in part whenever or
   49  to the extent that the department determines that the delay in
   50  the determination of the amount due is attributable to the
   51  action or inaction of the department. A taxpayer’s liability for
   52  penalties under any of the chapters specified in s. 72.011(1)
   53  may be settled or compromised if it is determined by the
   54  department that the noncompliance is due to reasonable cause and
   55  not to willful negligence, willful neglect, or fraud. If the
   56  taxpayer does not provide adequate records as requested by the
   57  department, a rebuttable presumption is created that a
   58  taxpayer’s noncompliance is due to willful negligence, willful
   59  neglect, or fraud. A taxpayer’s liability for penalties under
   60  any of the chapters specified in s. 72.011(1), up to 25 percent
   61  of the tax, may be settled or compromised if the department
   62  determines that reasonable cause exists and that penalties in
   63  excess of 25 percent of the disputed tax amount were compromised
   64  because the noncompliance was not due to willful negligence,
   65  willful neglect, or fraud. The facts and circumstances are
   66  subject to de novo review to determine the existence of
   67  reasonable cause in any administrative proceeding or judicial
   68  action challenging an assessment of penalty under any of the
   69  chapters specified in s. 72.011(1). A taxpayer who establishes
   70  reasonable reliance on the written advice issued by the
   71  department to the taxpayer will be deemed to have shown
   72  reasonable cause for the noncompliance. In addition, a
   73  taxpayer’s liability for penalties under any of the chapters
   74  specified in s. 72.011(1) in excess of 25 percent of the tax
   75  shall be settled or compromised if the department determines
   76  that the noncompliance is due to reasonable cause and not to
   77  willful negligence, willful neglect, or fraud. The department
   78  shall maintain records of all compromises, and the records shall
   79  state the basis for the compromise. The records of compromise
   80  under this paragraph shall not be subject to disclosure pursuant
   81  to s. 119.07(1) and shall be considered confidential information
   82  governed by the provisions of s. 213.053.
   83         Section 2. Subsections (1), (2), and (3) of section 213.67,
   84  Florida Statutes, are amended to read:
   85         213.67 Garnishment.—
   86         (1)(a) If a person is delinquent in the payment of any
   87  taxes, penalties, and interest owed to the department, the
   88  executive director or his or her designee must may give notice
   89  of the amount of such delinquency by registered mail, by
   90  personal service, or by electronic means, including, but not
   91  limited to, facsimile transmissions, electronic data
   92  interchange, or use of the Internet, to the taxpayer to attempt
   93  to informally resolve the delinquency using the procedures in s.
   94  213.21. The notice must inform the taxpayer of his or her option
   95  to resolve the delinquency using the procedures specified in s.
   96  213.21. Upon request, the taxpayer must receive assistance from
   97  the taxpayers’ rights advocate.
   98         (b)If the taxpayer fails to request an informal conference
   99  within 30 days after receiving the notice identifying the amount
  100  of the delinquency under paragraph (a) or if the taxpayer fails
  101  to pay the amount agreed upon in a closing agreement, and before
  102  the department may initiate a garnishment action, the department
  103  must issue to the delinquent taxpayer and all persons having in
  104  their possession or under their control any credits or personal
  105  property, exclusive of wages, belonging to the delinquent
  106  taxpayer, or owing any debts to such delinquent taxpayer at the
  107  time of receipt by them, a written notice of intent to garnish.
  108  The notice must:
  109         1.Be printed in a font size no smaller than 14 points;
  110         2.Be titled “Notice of Intent to Garnish”;
  111         3.Explain the process involved in a garnishment action;
  112  and
  113         4.Provide a timeframe, which may not be sooner than 45
  114  days after the date printed on the notice of intent to garnish,
  115  to grant the taxpayer time to respond to the of such notice.
  116  
  117  Notwithstanding this paragraph, the department may still
  118  consider an attempt to informally resolve the delinquency by the
  119  taxpayer using the procedures in s. 213.21.
  120         (c)Thereafter, Any person who has received a notice of
  121  intent to garnish been notified may not transfer or make any
  122  other disposition of such credits, other personal property, or
  123  debts until the executive director or his or her designee
  124  consents to a transfer or disposition or until 60 days after the
  125  receipt of the such notice of intent to garnish. However, the
  126  credits, other personal property, or debts that exceed the
  127  delinquent amount stipulated in the notice are not subject to
  128  this section, wherever held, if the taxpayer does not have a
  129  prior history of tax delinquencies. If during the effective
  130  period of the notice of intent to garnish to withhold, any
  131  person so notified makes any transfer or disposition of the
  132  property or debts required to be withheld under this section, he
  133  or she is liable to the state for any indebtedness owed to the
  134  department by the person with respect to whose obligation the
  135  notice was given to the extent of the value of the property or
  136  the amount of the debts thus transferred or paid if, solely by
  137  reason of such transfer or disposition, the state is unable to
  138  recover the indebtedness of the person with respect to whose
  139  obligation the notice was given. If the delinquent taxpayer
  140  contests the intended levy in circuit court or under chapter
  141  120, the notice under this section remains effective until that
  142  final resolution of the contest. Any financial institution
  143  receiving such notice will maintain a right of setoff for any
  144  transaction involving a debit card occurring on or before the
  145  date of receipt of such notice.
  146         (2) All persons who have received a notice of intent to
  147  garnish under paragraph (1)(b) been notified must, within 5 days
  148  after receipt of the notice, advise the executive director or
  149  his or her designee of the credits, other personal property, or
  150  debts in their possession, under their control, or owing them,
  151  and must advise the executive director or designee within 5 days
  152  after coming into possession or control of any subsequent
  153  credits, personal property, or debts owed during the time
  154  prescribed by the notice. Any such person coming into possession
  155  or control of such subsequent credits, personal property, or
  156  debts may not transfer or dispose of them during the time
  157  prescribed by the notice or before the department consents to a
  158  transfer.
  159         (3) During the last 30 days of the 60-day period set forth
  160  in paragraph (1)(c) subsection (1), the executive director or
  161  his or her designee may levy upon such credits, other personal
  162  property, or debts. The levy must be accomplished by delivery of
  163  a notice of levy by registered mail, upon receipt of which the
  164  person possessing the credits, other personal property, or debts
  165  shall transfer them to the department or pay to the department
  166  the amount owed to the delinquent taxpayer.
  167         Section 3. This act shall take effect July 1, 2023.