SB 799

Introduction

This bill makes various changes to 1) the Department of Revenue's authority

related to third-party tax audits and 2) unclaimed property law.

Third-Party Tax Audits

This bill provides that DOR must bear the burden of proof by clear and

convincing evidence of each element of any assessment issued by DOR that is based

on information, documents, or audit determinations made by any person other than

DOR. The bill also prohibits DOR from entering into an agreement to allow a person

to engage in an audit of another person's documents or records in order to assess,

enforce, or collect a tax or fee administered by DOR or to purchase taxpayer

information arising from the audit of a taxpayer or any other person, except for

information received by the federal government.

Unclaimed Property

Holder Rights and Obligations

This bill makes various changes to the rights and obligations of persons in

possession of property belonging to others (holders) under this state's version of the

Uniform Unclaimed Property Act (UUPA).

Under current law, a holder in possession of property that is presumed

abandoned and subject to the custody of this state as unclaimed property under the

UUPA must annually file a report with the secretary of revenue regarding the

property. In addition to the other information a holder must report under current

law, this bill requires a holder to also report the date of birth and social security

number or other tax identification number of each person who appears to own the

property if that information is known and readily available to the holder. This bill

requires annual reports to be filed no later than November 1 of each year. Under

current law, reports must be filed before November 1 of each year.

This bill also requires a holder to maintain a record of all information included

in a report for three years after the property becomes reportable. Under current law,

the holder is only required to maintain a record of the name and last-known address

of any owner of abandoned property included in the report, and the information must

be maintained for five years after the property is actually reported to the secretary.

Under current law, a holder must, concurrently with the filing of a report, pay

or deliver to the secretary all abandoned property included in the report. This bill

provides that, with respect to contents of safe deposit boxes, a holder must pay and

deliver the contents no earlier than February 1 and no later than February 15 of the

year following the year in which the holder was required to file a report with respect

to the contents.

Under this bill, if a holder fails to timely pay or deliver abandoned property to

the secretary, the holder must pay interest on the value of the property at the annual

rate of 6 percent. Under current law, the annual interest rate is 18 percent.