The 2017 legislative session saw seemingly minor adjustments to tax procedure, but with significant impacts to affected taxpayers:
Act 435 loosens the taxpayer confidentiality statute to allow DFA to provide more information to a bankruptcy trustee, and it expands the confidentiality exception to apply to all bankruptcy trustees; not just Chapter 13 bankruptcy trustees.
Act 762 broadens DFA’s authority to deny or cancel sales tax permits or other licenses or registrations to also apply to any failure to comply with state tax laws, as well as any failure to pay assessed interest or penalties. Effective on and after January 1, 2018. The background to Act 762 is that DFA auditors and administrators are frustrated with small business tax noncompliance and will use this new authority to threaten to shut down businesses unless they pay all taxes, penalties, and interest due. Buyers of businesses also should be careful to confirm state tax compliance as part of the due diligence process.
Act 999 defines an erroneous refund as an underpayment and establishes a 3-year limitation period for the recovery of such an underpayment from when the refund was issued. This addressed procedural difficulties that DFA was having in recovering mistaken refund payments.
Act 997 establishes an appeal procedure for the DFA's decisions regarding reexamination or audit of a mileage claim.
Act 881 requires assessment notices that are delivered to taxpayers to include contact information for use in obtaining tax records from the DFA and requires additional detail in the notice requirements of the Tax Procedure Act and the Taxpayer's Bill of Rights.