Introduced Version
House Bill 2912 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 2912
(By Delegates White, Marcum and Moore)
(By Request of the State Tax Division)
[Introduced
March 12, 2013
; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact §11-10-5s of the Code of West Virginia,
1931, as amended, relating to disclosure of confidential
taxpayer information; authorizing the disclosure of specified
tax information by the Tax Commissioner to the Attorney
General; authorizing the disclosure of specified tax
information by the Attorney General to specified persons
relevant to enforcement of Tobacco Master Settlement
Agreement; authorizing the Tax Commissioner to enter into a
written agreement with the State Auditor for disclosure of
confidential tax information to the State Auditor to
facilitate the State Auditor's participation in federal and
state offset programs to collect unpaid taxes; and providing
for protection and limited use of confidential information.
Be it enacted by the Legislature of West Virginia:
That §11-10-5s of the Code of West Virginia, 1931, as amended,
be amended and reenacted, to read as follows:
ARTICLE 10. WEST VIRGINIA TAX AND PROCEDURE ADMINISTRATION ACT.
§11-10-5s. Disclosure of certain taxpayer information.
(a) Purpose. -- The Legislature hereby recognizes the
importance of confidentiality of taxpayer information as a
protection of taxpayers' privacy rights and to enhance voluntary
compliance with the tax law. The Legislature also recognizes the
citizens' right to accountable and efficient state government. To
accomplish these ends, the Legislature hereby creates certain
exceptions to the general principle of confidentiality of taxpayer
information.
(b) Exceptions to confidentiality. --
(1) Notwithstanding any provision in this code to the
contrary, the Tax Commissioner shall publish in the State Register
the name and address of every taxpayer and the amount, by category,
of any credit asserted on a tax return under articles thirteen-c,
thirteen-d, thirteen-e, thirteen-f, thirteen-g, thirteen-q,
thirteen-r and thirteen-s of this chapter and article one, chapter
five-e of this code. The categories by dollar amount of credit
received shall be are as follows:
(A) More than $1 but not more than $50,000;
(B) More than $50,000 but not more than $100,000;
(C) More than $100,000 but not more than $250,000;
(D) More than $250,000 but not more than $500,000;
(E) More than $500,000 but not more than $1 million; and
(F) More than $1 million.
(2) Notwithstanding any provision in this code to the
contrary, the Tax Commissioner shall publish in the State Register
the following information regarding any a compromise of a pending
civil tax case that occurs on or after the effective date of this
section in which the Tax Commissioner is required to seek the
written recommendation of the Attorney General and the Attorney
General has not recommended acceptance of the compromise or when
the Tax Commissioner compromises any a civil tax case for an amount
that is more than $250,000 less than the assessment of tax owed
made by the Tax Commissioner:
(A) The names and addresses of taxpayers that are parties to
the compromise;
(B) A summary of the compromise;
(C) Any written advice or recommendation rendered by the
Attorney General regarding the compromise; and
(D) Any written advice or recommendation rendered by the Tax
Commissioner's staff.
Under no circumstances may the tax return of the taxpayer or
any other information which would otherwise be confidential under any other provisions of law be disclosed pursuant to the provisions
of this subsection.
(3) Notwithstanding any provision in this code to the
contrary, the Tax Commissioner may disclose any relevant return
information to the prosecuting attorney for the county in which
venue lies for a criminal tax offense when there is reasonable
cause, based upon and substantiated by the return information, to
believe that a criminal tax law has been or is being violated.
(4) Notwithstanding any provision in this code to the
contrary, the Tax Commissioner may enter into written exchange of
information agreements with the commissioners of Labor, Employment
Security, Alcohol Beverage Control and Workers' Compensation to
disclose and receive timely return information. Provided, That The
Tax Commissioner may promulgate rules pursuant to chapter
twenty-nine-a of this code regarding further additional agencies
with which written exchange of information agreements may be sought
Provided, however, That the Tax Commissioner may not promulgate
emergency rules regarding further agencies with which written
exchange of information agreements may be sought. but may not
promulgate emergency rules regarding these additional agencies. The
agreements shall be published in the State Register and shall only
be are only for the purpose of facilitating premium collection, tax
collection and facilitating licensure requirements directly enforced, administered or collected by the respective agencies. The
provisions of this subsection shall not be construed to do not
preclude or limit disclosure of tax information authorized by other
provisions of this code. Any Confidential return information so
disclosed shall remain remains confidential in the hands of the
other division to the extent provided by section five-d of this
article and by other applicable federal or state laws.
(5) Notwithstanding any provision of this code to the
contrary, the Tax Commissioner may enter into a written agreement
with the State Treasurer to disclose to the State Treasurer the
following business registration information:
(A) The names, addresses and federal employer identification
numbers of businesses which have registered to do business in West
Virginia; and
(B) The type of business activity and organization of those
businesses.
Disclosure of this information shall begin as soon as
practicable after the effective date of this subsection and may be
used only for the purpose of recovery and disposition of unclaimed
property in accordance with the provisions of article eight,
chapter thirty-six of this code. The provisions of this subsection
shall not be construed to does not preclude or limit disclosure of
tax information authorized by other provisions of this code. Any Confidential return information disclosed hereunder or thereunder
shall otherwise remain confidential to the extent remains
confidential as provided by section five-d of this article and by
other applicable federal or state laws.
_____(6) Notwithstanding any provision of this code to the
contrary, the Tax Commissioner may disclose to the Attorney General
any information in the possession of the Tax Commissioner that is
necessary or relevant to administration, implementation,
enforcement, defense, or settlement and arbitration of the Tobacco
Master Settlement Agreement and its related statutory provisions
set forth in articles nine-b and nine-d, chapter sixteen of this
code, and successor or reenactement provisions, or necessary or
relevant to arbitration or litigation arising under the terms of
the Tobacco Master Settlement Agreement.
_____(A) The information includes, but is not limited to, return
information, audits and other tax information in the possession of
the Tax Commissioner originating with tobacco retailers, jobbers,
stamping agents, distributors, participating manufacturers as
defined in section two, article nine-d, chapter sixteen of this
code, nonparticipating manufacturers as defined in section two,
article nine-d, chapter sixteen of this code and entities or
persons taxable pursuant to article seventeen of this chapter, the
Tobacco Products Excise Tax Act.
_____(B) The information also includes, but is not limited to,
information in the possession of the Tax Commissioner originating
with persons or entities who: (i) Are not parties to the Tobacco
Master Settlement Agreement; (ii) who are not parties to any
arbitration or litigation relating to the Tobacco Master Settlement
Agreement; or (iii) who are not subject to the reporting
requirements or tax payment requirements of this article or of
article seventeen of this chapter, if the information is necessary
or relevant to administration, implementation, enforcement, defense
or settlement and arbitration of the Tobacco Master Settlement
Agreement and its related statutory provisions or necessary or
relevant to arbitration or litigation arising under the terms of
the Tobacco Master Settlement Agreement.
_____(C) This subdivision does not apply to a document, tax return
or other information subject to disclosure restrictions imposed by
federal statute or regulation.
_____(7) Notwithstanding any provision of this code to the
contrary, the Attorney General, upon the consent of the Tax
Commissioner, may disclose information provided by the Tax
Commissioner under the authority of subdivision six of this
subsection as follows:
_____(A) To a party or parties participating in arbitration or
litigation arising under the terms of the Tobacco Master Settlement Agreement; or
_____(B) To a judge, arbitrator, administrative law judge, legal
counsel or other officer, official or participant in proceedings
for or relating to administration, implementation, enforcement,
defense or settlement and arbitration of the provisions of articles
nine-b and nine-d of chapter sixteen of this code.
_____(C) Notwithstanding any provision of this code to the
contrary, the Attorney General may introduce into evidence or
disclose the information in the arbitration or litigation
proceedings or an action for administration, implementation,
enforcement, defense or settlement and arbitration of the
provisions of articles nine-b and nine-d of chapter sixteen of this
code.
_____(D) This subdivision does not apply to a document, tax return
or other information subject to disclosure restrictions imposed by
federal statute or regulation.
_____(8) Notwithstanding any provision of this code to the
contrary, the Tax Commissioner may enter into a written exchange
agreement with the Auditor to disclose certain taxpayer information
to facilitate participation in the following:
_____(A) The federal offset program authorized by section
thirty-seven, article one, chapter fourteen of this code; and
_____(B) The state offset program, as authorized by subsection (h), section thirty-seven, article one, chapter fourteen of this code,
for the purpose of protecting return information as defined in
section five-d, article ten of this chapter and collecting debts,
fees and penalties due the state, its departments, agencies or
institutions.
_____(C) The taxpayer information exchanged or disclosed pursuant
to this subdivision is to be used only for the purpose of
facilitating the collection of unpaid and delinquent tax
liabilities through offset against state payments due and owing to
taxpayers, vendors and contractors providing goods or services to
the state, its departments, agencies or institutions.
_____(D) The Tax Commissioner may disclose the following taxpayer
information:
_____(i) Name;
_____(ii) Address;
_____(iii) Social security number or tax identification number;
_____(iv) Amount of the tax liability; and
_____(v) Any other information required by the written agreement.
_____(E) Disclosure of this information begins as soon as
practicable after the effective date of this subdivision.
_____(F) The provisions of this section do not preclude or limit
disclosure of tax information authorized by other provisions of
this code. Any confidential return information disclosed hereunder or thereunder remains confidential to the extent provided by
section five-d of this article and by other applicable federal or
state laws.
(c) Tax expenditure reports. -- Beginning on January 15, 1992,
and every January 15 thereafter, the Governor shall submit to the
President of the Senate and the Speaker of the House of Delegates
a tax expenditure report. This report shall expressly identify all
tax expenditures. Within three-year cycles, the reports shall be
considered together to analyze all tax expenditures by describing
the annual revenue loss and benefits of the tax expenditure based
upon information available to the Tax Commissioner. For purposes of
this section, the term "tax expenditure" shall mean means a
provision in the tax laws administered under this article
including, but not limited to, exclusions, deductions, tax
preferences, credits and deferrals designed to encourage certain
kinds of activities or to aid taxpayers in special circumstances.
Provided, That The Tax Commissioner shall promulgate rules setting
forth the procedure by which he or she will compile the reports and
setting forth a priority for the order in which the reports will be
compiled according to type of tax expenditure.
(d) Federal and state return information confidential. --
Notwithstanding any other provisions of this section or of this
code, no return information made available to the Tax Commissioner by the Internal Revenue Service or department or agency of any
other state may be disclosed to another person in any a manner
inconsistent with the provisions of Section 6103 of the Internal
Revenue Code of 1986, as amended, or of the other states'
confidentiality laws.
NOTE: The purpose of this bill is to authorize the disclosure
of specified tax information by the Attorney General to specified
persons relevant to enforcement of Tobacco Master Settlement
Agreement and provide for a written agreement for the disclosure
and protection of confidential taxpayer information between the Tax
Commissioner and Auditor to be used in offset programs aimed at
collecting unpaid and delinquent state taxes.
Strike-throughs indicate language that would be stricken from
the present law and underscoring indicates new language that would
be added.