SUMMARY

This bill replaces the current law regarding the ability of the State Tax Assessor to compromise a tax liability. This bill:

1. Allows the assessor to compromise any tax liability;

2. Requires the general counsel for the Bureau of Revenue Services to review and explain the reason for the offer of compromise if the amount owed, including interest and other added amounts, is at least $50,000;

3. Requires the assessor to maintain a report showing the specifics of the compromise, including the amount assessed and the amount actually paid under the compromise;

4. Requires the assessor to establish guidelines to be used by officers and employees of the bureau in determining whether to grant offers in compromise and the amount that must be retained by the taxpayer making the offer in compromise in order to provide for basic living expenses; and

5. Allows the Attorney General to compromise the tax liability of any civil or criminal case that is referred to the Attorney General for prosecution or defense.