Texas Register, Volume 11, Number 19, Pages 1163-1244, March 11, 1986 Page: 1,218
1163-1244 p. ; 28 cm.View a full description of this periodical.
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Issued in Austin, Texas, on February 25, 1986.
TRD-8602006 James K. Rourke, Jr.
General Counsel
Texas Water Commission
Effective date: March 3, 1986
Expiration date: July 1, 1966
For further informaton,lease call
(512) 483-8070.
TITLE 34. PUBLIC
FINANCE
Part I. Comptroller of
Public Accounts
Chapter 1. Central
Administration
Rules of Practice and Procedure
*34 TAC 1.3
The Comptroller of Public Accounts adopts
on an emergency basis an amendment to
1.3, concerning contested cases. The
amendment specifies that requests for
settlement of penalty and interest assess-
ments are not within the definition of con-
tested cases. These requests are not with-
in the jurisdiction of the agency's admin-
istrative law judges and will not be handled
through the agency hearings process. Un-
der the applicable provisions of the Tax
Code, these settlements are discretionary
with the Comptroller and are not required
to be disposed of as a part of a redeter-
mination order.
This amendment is adopt.. 'on an emer-
gency basis to reduce the number of as-
sessments on which a hearing is request-
ed and to reduce the number of issues in-
volved in those hearings. Further, the
amendment speeds the processing of as-
sessments in which requests for settle-
ment of penalty and interest is the only
point of disagreement, thereby speeding
up the collection of audit revenue.
This amendment is adopted on an
emergency basis under the Texas Tax
Code, 111.002, which provides the com-
ptroller with the authority to prescribe,
adopt, and enforce sections relating to
the administration and enforcement of
the provisions of the Texas Tax Code, Ti-
tie 2.
1.3. Contested Cases.
(a) A contested case is a proceeding
in which the legal rights, duties, or privileges
of a party are to be determined by the agen-
cy after an opportunity for adjudicative hear-
ing. It includes a request for redetermination
or refund, as well as actions initiated by the
agency to revoke or suspend permits or li-
censes administered by this agency on grounds
other than failure to pay a final tax deficien-
cy or failure to file a tax security.
(A) Contested Case
(b) A contested case [It] does not in-
clude forfeitures of rights to do business, of
certificates of authority, of articles of incor-poration, or requests for or revocation of ex-
emptions from taxation.
(c) Requests for settlement of
amounts assessed or paid as penalty or In-
terest with respect to a tax assment are not
contested cases. However, if a contested case
results in an adjustment to a tax liability, the
corresponding penalty and interest adjust-
ment will also be made.
(d) Contested cases are within the
jurisdiction of the agency's administrative
law judges.
issued in Austin, Texas, on March 3, 1986.
TRD-8602146 Bob Bullock
Comptroller of Public
Accounts
Effective date: March 3, 1986
Expiration date: July 1, 1986
For further information, please call
(512) 463-4606.
*34 TAC 1.5
The Comptroller of Public Accounts
adopts on an emergency basis an amend-
ment to 1.5, concerning initiation of a
hearing. The amendment deletes refer-
ences to penalty and interest amounts as
a basis on which a refund hearing may be
requested. Under the applicable provi-
sions of the Tax Code, settlements of pen-
alty and interest amounts are discretion-
ary with the Comptroller and are not re-
quired to be handled through the hearings
process.
This amendment is adopted on an emer-
gency basis to reduce the number of hear-
ings involving this issue, thereby improv-
ing the efficiency and promptness of the
hearings process and enhancing the fis-
cal situation of the state. Related section
actions are being adopted simultaneously
establishing procedure for reviewing
these settlement requests.
This emergency amendment is adopted
under the Texas Tax Code, 111.002, which
provides the Comptroller with the authori-
ty to prescribe, adopt, and enforce sec-
tions relating to the administration and
enforcement of the provisions of Title 2
of the Tax Code.
1.5. Initiation of a Hearing.
(a) (No change.)
(b) Refund of tax paid. Within the
time limits provided in Texas Tax Code
111.104(c), a taxpayer may request a refund
of any tax[, penalty, or interest] paid to the
Comptroller by sending the agency a writ-
ten reque gt. The request is defined to include
a statement of grounds which sets out in de-
tail the grounds on which the claim is founded.
If no grounds are stated as a basis for the
claim, no hearing will be commenced and the
claim will be denied. If the claim is granted
as to any tax amount, the corresponding
penalty and interest amount previously paid
will be refunded.(c) (No change.)
Issued in Austin, Texas, on March 3, 1986.
TRD-8602147 Bob Bullock
Comptroller of Public
Accounts
Effective date: March 3, 1986
Expiration date: July 1, 1986
For further information, please call
(512) 463-4606.Chapter 3. Tax Administration
Subchapter A. General Rulings
*34 TAC 3.5
The Comptroller of Public Accounts
adopts on an emergency basis new 3.5,
concerning settlement of tax penalty or
interest. The new section provides a pro-
cedure for evaluation and disposition of
requests for settlement of amounts of tax
penalty and/or interest. These are amounts
assessed or paid with respect to any of
the taxes administered by the Comptroller
of Public Accounts.
This section, in conjunction with amend-
ments to other sections, is adopted on an
emergency basis to remove the settle-
ment requests from the agency hearings
process and establish other procedures
for their disposition The combined effect
of these changes reduces the hearings
caseload, thereby improving the efficien-
cy of that process, enhancing the flow of
audits and assessments, and speeding
the collection of this revenue. At the same
time, audits and assessments in which
the settlement of penalty and interest is
the only point of disagreement are
handled more efficiently and speedily.
This new emergency section is adopted
under the Texas Tax Code, 111.002, which
provides the Comptroller with the authori-
ty to prescribe, adopt, and enforce sec-
tions relating to the administration and
enforcement of the provisions of Title 2
of the Tax Code.
3.5. Settlement of Tax Penalty or Interest.
(a) Procedure for requesting settle-
ment, audits.
(1) At the conclusion of the exit
conference for the audit, the taxpayer shall
have five working days in which to make a
written request to settle amounts of penalty
or interest found to be due in connection
with an audit. The request shall be directed
to the audit manager, to whom the Comp-
troller has delegated the authority to hear all
settlement offers of penalty or interest. The
audit manager is authorized to settle penal-
ty or interest if he finds the taxpayer exer-
cised reasonable diligence on amounts of
penalty or interest under $5,000. For
amounts over $5,000, the audit manager will
make a recommendation to the Chief Depu-
ty Comptroller and the Comptroller of final
decision.11 TexReg 1218 Alarch 11, 1986
Texas Register AP
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Texas. Secretary of State. Texas Register, Volume 11, Number 19, Pages 1163-1244, March 11, 1986, periodical, March 11, 1986; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth243767/m1/56/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.