Section 213.21, F.S., requires the Department to establish rules and procedures for entering into stipulated time payment agreements with taxpayers to resolve their outstanding tax liabilities. The purpose of the proposed amendments to Rule Chapter ...

 

DEPARTMENT OF REVENUE

RULE NOS.:RULE TITLES:

12-17.001Scope of Rules

12-17.002Definitions

12-17.003Requirements for Considering Entering into Stipulated Time Payment Agreements

12-17.004Delegation of Authority

12-17.005Factors Considered by the Department

12-17.006Procedures

12-17.007Form and Execution of Stipulated Time Payment Agreements

12-17.008 Terms of Stipulated Time Payment Agreements

12-17.009Termination of Agreements

12-17.010Public Use Forms

PURPOSE AND EFFECT: Section 213.21, F.S., requires the Department to establish rules and procedures for entering into stipulated time payment agreements with taxpayers to resolve their outstanding tax liabilities. The purpose of the proposed amendments to Rule Chapter 12-17, F.A.C. (Agreements for Scheduling Payments of Liabilities), is to update and standardize the procedures for taxpayers resolving their outstanding tax liabilities through stipulated time payment agreements. When in effect, the updated rule chapter establishes the requirements to enter into a stipulated time payment agreement and to remain in compliance with the agreement, and the actions that will be taken when a taxpayer is held in default of an agreement.

SUMMARY: The proposed amendments to Rule 12-17.001, F.A.C. (Scope of Rules), provide that rules regarding the scheduling of payments to resolve outstanding tax liabilities do not apply to certain agreements, orders, or settlement of circuit court proceedings.

The proposed amendments to Rule 12-17.002, F.A.C. (Definitions), Rule 17.003, F.A.C. (Requirements for Considering Entering into Stipulated Time Payment Agreements), and Rule 12-17.005, F.A.C. (Factors Considered by the Department), provide that outstanding liabilities for taxes administered, regulated, controlled, and collected by the Department, and for the reemployment tax collected by the Department, may be resolved through stipulated time payment agreements.

The proposed amendments to Rule 12-17.004, F.A.C. (Delegation of Authority), provide that: (1) the Executive Director of the Department is authorized to issue a delegation of authority to designate those positions authorized to enter into stipulated time payment agreements; and (2) any such delegations will be in writing, signed by the Executive Director, and maintained by the agency clerk in the Office of the General Counsel.

The proposed amendments to Rule 12-17.006, F.A.C. (Procedures), standardize the requirements for a taxpayer to request a stipulated time payment agreement from the Department.

The proposed amendments to Rule 12-17.007, F.A.C. (Form and Execution of Stipulated Time Payment Agreements): (1) remove provisions prescribing Form DR-68 as the form used for stipulated time payment agreements; (2) provide that modifications to an agreement must be in writing and executed by all parties; and (3) remove payment coupons that are no longer used by the Department.

The proposed amendments to Rule 12-17.008, F.A.C. (Terms of Stipulated Time Payment Agreements), provide: (1) that the amount of a down payment required to enter into a stipulated time payment agreement is based upon the amount of the outstanding liability and the taxpayer’s ability to pay; (2) the notifications that will be included in a stipulated time payment agreement regarding actions the Department will take when an agreement is held in default; (3) that provisions relating to jeopardy assessments continue to apply during the terms of an agreement; (4) that the taxpayer agrees to make the required payments by electronic means, unless a variance or waiver is granted by the Department; (5) that the taxpayer agrees to timely file all required tax returns and timely remit all taxes due during the term of the agreement; and (6) that additional liabilities identified will be assessed upon a taxpayer who has entered into a stipulated time payment agreement to resolve other outstanding tax liabilities.

The proposed amendments to Rule 12-17.009, F.A.C. (Agreements in Default): (1) provide that any outstanding liability that remains due when a taxpayer is held in default of the terms of a stipulated time payment agreement is immediately due and payable; and (2) remove the listing of collection actions authorized by statute for the Department to recover outstanding liabilities when an agreement is held in default.

The proposed repeal of Rule 12-17.010, F.A.C. (Public Use Forms), removes the unnecessary adoption of Form DR-68, Stipulated Time Payment Agreement, which does not meet the definition of a “rule” in Section 120.52(15), F.S.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: 1) no requirement for the Statement of Economic Regulatory Costs (SERC) was triggered under Section 120.541(1), F.S.; and 2) based on past experiences regarding the procedures for resolving outstanding tax liabilities by entering into stipulated time payment agreements and rules of this nature, the adverse impact or regulatory cost, if any, does not exceed nor would exceed any one of the economic analysis criteria in a SERC, as set forth in Section 120.541(2)(a), F.S.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 20.05(1)(e), 213.06(1), 213.21(5) FS.

LAW IMPLEMENTED: 90.408, 212.18, 213.015(10), 213.05, 213.21(2), (4), 213.24(3), 213.27, 213.67, 213.69, 213.692, 443.1316, 443.141 FS.

A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: November 13, 2013, 2:00 p.m.

PLACE: 2450 Shumard Oak Boulevard, Building One, Room 1220, Tallahassee, Florida

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Tammy Miller at [phone]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Janet Young, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone: [phone]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

12-17.001 Scope of Rules.

(1) The rules set forth in this chapter shall be used by the Department in exercising the authority granted by Section 213.21(4), F.S., to enter into agreements for scheduling payments of outstanding liabilities taxes, interest, and penalties. These rules also implement the Taxpayer Bill of Rights statutory provision that guarantees every Florida taxpayer the right to procedures for retiring unpaid tax liabilities through stipulated time payment agreements that are based on the taxpayer’s financial position and the best interests of the state.

(2) Except for the delegations of authority provided in Rule 12-17.004, F.A.C., the rules set forth in this chapter do not apply to any stipulated time payment agreement made a part of:

(a) Any closing agreement executed pursuant to Section 213.21(2)(a), F.S., and Rule 12-13.009, F.A.C.;

(b) Any compliance agreement entered into pursuant to Sections 212.18 or 213.692, F.S.;

(c) Any proceeding pursuant to Chapter 120, F.S.; or

(d) The settlement of any action filed by a taxpayer in circuit court, as provided in Section 72.011, F.S.

Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 212.18, 213.015(10), 213.21(2)(a), (4), 213.24(3), 213.692 FS. History–New 10-4-89, Amended 4-29-03,__________.

 

12-17.002 Definitions.

(1) “Department” means the Florida Department of Revenue.

(2) “Taxpayer” means any person, as defined in Section 1.01, F.S., required to remit any tax, surtax, surcharge, or fee listed interest, or penalty to the Department under any of the tax laws enumerated in Section 213.05 72.011(1), F.S., that is administered, regulated, controlled, and collected by the Department, and any employing unit required to pay any contribution or reimbursement required under Chapter 443, F.S.

(3) “Stipulated time payment agreement” means a written agreement entered into by the Department and taxpayer which schedules payments of outstanding liabilities a liability for tax, interest, or penalty over a specified period of time.

(4) “Closing agreement” means a written agreement entered into by the Department and a taxpayer pursuant to Rule 12-13.009, F.A.C.

(4)(5) “Collection action” means the issuance of a delinquent notice or billing, a tax warrant or notice of lien, or any other attempt to obtain payment of an unpaid amount. The term “collection action” does not include an attempt by an auditor to collect an assessment arising from the performance of an audit by such auditor.

(5) “Outstanding liabilities” means any unpaid taxes, surtaxes, surcharges, or fees listed in Section 213.05, F.S., that are administered, regulated, controlled, and collected by the Department, or any unpaid contributions or reimbursements required under Chapter 443, F.S. Outstanding liabilities also include any associated penalties, interest, fees, or collection costs.

Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.05, 213.21(4), 213.24(3), 213.69, 443.1316 FS. History–New 10-4-89, Amended 4-29-03,__________.

 

12-17.003 Requirements for Considering Entering into Stipulated Time Payment Agreements.

(1) A taxpayer requesting a stipulated time payment agreement must first:

(a) Acknowledge the taxpayer’s outstanding liabilities liability for the total amount of tax, interest, or penalty finally determined to be due by the Department;, and

(b) Demonstrate to the satisfaction of the Department that he or she is currently unable to make a single lump sum payment to fully satisfy outstanding liabilities a liability for tax, interest, or penalty, or that a lump sum payment of the amounts due would impose an undue economic or financial hardship on the taxpayer;, and

(c) Pay all outstanding liabilities debts of tax, penalties, and interest not covered by the requested stipulated time payment agreement due that are owed to the Department.

(2) Pursuant to Section 213.24, F.S., the Department will not agree to a stipulated time payment agreement if the outstanding liabilities amount due from the taxpayer are is less than the costs the Department will incur to administer the taxpayer’s stipulated time payment agreement.

Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(4) FS. History–New 10-4-89, Amended 10-5-92, 4-29-03,__________.

 

12-17.004 Delegation of Authority.

(1) In addition to the statutory authority granted by Section 213.21(4), F.S., the Executive Director of the Department has authority to enter into agreements with taxpayers for scheduling payments for outstanding liabilities of taxes, interest, penalties, and fees under authority granted by the Governor and Cabinet as the head of the Department.

(2) The Executive Director of the Department is authorized to issue a delegation of hereby delegates authority setting forth those positions authorized to enter into stipulated time payment agreements with taxpayers under Section 213.21(4), F.S. Any such delegation, to the Deputy Executive Director, the General Counsel, the Deputy General Counsel, and the Program Director, the Deputy Program Director, the Regional Managers, and the Service Center Managers of the General Tax Administration Program of the Department, and:

(a) In cases where a tax matter is in litigation or in protest pursuant to Rule Chapter 12-6, F.A.C., to:

1. The Assistant General Counsels;

2. The Director, the Deputy Director, and Revenue Program Administrators in Technical Assistance and Dispute Resolution;

3. The Process Manager and Revenue Program Administrators in the Compliance Support Process.

4. The Process Manager, Revenue Program Administrators, and Revenue Administrators in the Taxpayer Services Process.

(b) In cases involving amounts assessed pursuant to an audit of the taxpayer, prior to initiation of litigation pursuant to Section 72.011, F.S., or expiration of the period for initiating same, to:

1. The Tax Audit Supervisors, Revenue Administrators, and Senior Revenue Administrators in the Director’s Office of the General Tax Administration Program; and

2. The Process Manager, Revenue Program Administrators, Tax Law Specialists, Government Analysts II, and Senior Tax Specialists in the Compliance Support Process.

(c) In cases involving a billing or assessment issued by the General Tax Administration Program, to:

1. The Revenue Program Administrators, Tax Audit Supervisors, Senior Revenue Administrators, and Revenue Administrators in the Director’s Office; and

2. The Process Manager, Revenue Program Administrators, Tax Specialist Administrator, Revenue Administrators, Revenue Managers, and Revenue Specialists in the Taxpayer Services Process.

(d) When the Executive Director delegates authority to sign stipulated time payment agreements to specific employees or positions that are not provided in this rule, the delegation of authority will be in writing, signed by the Executive Director, and will be for a specified time period. The renewal of such delegations will also be in writing, signed by the Executive Director. Copies of written delegations of authority are maintained on file with the agency clerk in the Office of General Counsel.

Rulemaking Authority 20.05(1)(e), 213.06(1), 213.21(5) FS. Law Implemented 213.21(4), 213.24(3) FS. History–New 10-4-89, Amended 10-5-92, 8-17-94, 4-29-03, 9-13-10,__________.

 

12-17.005 Factors Considered by the Department.

The Department will apply one or more of the following factors when determining whether to enter into a stipulated time payment agreement, and in determining the existence of undue economic or financial hardship or the inability of a taxpayer to satisfy outstanding liabilities a liability for tax, interest, or penalty in a lump sum, and in determining the terms of the stipulated time payment agreements:

(1) The taxpayer’s previous payment record with the Department;

(2) The taxpayer’s ability to meet a payment schedule obligation;

(3) The payment amount and the length of time required to retire the outstanding liabilities liability;

(4) The future outlook of the taxpayer’s business and the industry;

(5) The financial impact on the taxpayer if required to make a lump sum payment;

(6) Whether the taxpayer collected, but did not remit, the tax addressed by the agreement;

(7) Whether the taxpayer institutes business practices to ensure the proper collection and remittance of tax in the future;

(8) Whether the state would eventually receive more of the taxes due by entering into a stipulated time payment agreement than by requiring a lump sum payment;

(9) Any recommendation submitted by a Department department auditor based on an examination of the taxpayer’s records; and

(10) Any additional written information the taxpayer presents for the Department’s consideration.

Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(4) FS. History–New 10-4-89, Amended 4-29-03, __________.

 

12-17.006 Procedures.

(1) In instances where the Department does not already have the following information and items, a taxpayer requesting a stipulated time payment agreement must provide the following relief under this chapter shall provide such information and items to the Department:

(a) Taxpayer’s name, address, business partner number, federal employer identification number or social security number, audit identification number, and all account identification numbers requested number issued by the Department;

(b) Any outstanding tax returns identifying any tax due, by tax type, and the taxable period(s) that apply (any outstanding liabilities penalty and interest that is due will be computed at the time the agreement is completed);

(c) An acknowledgment of the outstanding liabilities liability for the total amount of tax, fees, collection costs, or other amounts assessed, and interest, and penalty determined to be due by the Department, and that Section 213.21(2)(a), F.S., eliminates the taxpayer agrees to waive any and all taxpayer’s rights, or purported rights, to institute any administrative or judicial proceedings to recover, compromise, defer, restructure, avoid, challenge, or reduce any outstanding liabilities paid or payable pursuant to the agreement under Section 72.011, F.S., with respect to the acknowledged liability;

(d) An oral or written explanation regarding the factual basis for the undue hardship or current inability to satisfy the outstanding liabilities liability in a lump sum and documentary evidence to support the taxpayer’s basis for relief; and

(e) A proposal for satisfaction of the outstanding liabilities liability that for tax, interest, and penalty wherein the taxpayer indicates projected cash flow for the succeeding 12 months.

(2) Where the tax, interest, or penalty is assessed as a result of an audit of the taxpayer, the taxpayer shall file the written request with the Process Manager, Compliance Support Process, Department of Revenue, P. O. Box 5139, Tallahassee, Florida 32314-5139, prior to the date an assessment becomes final. Upon execution of the stipulated agreement, it will be referred to the Taxpayer Services Process for administration.

(3) In cases involving notices, billings, jeopardy assessments, audit assessments, and tax warrants referred for collection, and tax warrants issued by the Department, the taxpayer shall file the information and items required by subsection (1) with the office which issued the notice, billing, jeopardy assessment, audit assessment, or tax warrant.

(4) In those instances where a protest is referred to the Office of Technical Assistance and Dispute Resolution (the Office) by the Compliance Enforcement Process, the Compliance Support Process, or the Taxpayer Services Process, all final assessments will be referred back to the originating process. If a taxpayer has requested a payment agreement, and the Office agrees that the taxpayer qualifies pursuant to this rule chapter, the Office will include, as part of the closing agreement, the terms of any stipulated payment plan that the Office has determined is appropriate pursuant to Section 213.21(4), F.S.

(5) On receipt of the taxpayer’s request for a stipulated time payment agreement, the Department will take any of the following additional actions required by the taxpayer’s specific circumstances:

(a) The Department will issue a warrant for the total liability for any one or more of the following reasons:

1. To protect the state’s interest in the taxpayer’s assets;

2. To establish priority in real or tangible property rights;

3. To establish priority in the event of possible bankruptcy;

4. To prevent the disposal of assets without the state’s consent;

5. The taxpayer has failed to respond to previous collection actions by the Department; or

6. The taxpayer has a previous history of delinquent filings or payments.

(b) The issuance of levy instructions to the Sheriff to execute the warrant will be withheld as long as:

1. This stipulated time payment agreement is in force and the taxpayer has not defaulted under the terms of the agreement; and

2. The taxpayer is in complete compliance with all other requirements of the revenue laws.

(c) The Department will also investigate the financial position of the taxpayer, when the Department determines that the information submitted pursuant to subsection (1) requires confirmation.

(2)(6) After consideration of the taxpayer’s request for relief, the Department will shall:

(a) Accept the request by executing a stipulated time payment agreement; or

(b) Reject the request in whole or in part; or

(c) Make a counter-proposal.

(3)(7) No change.

(4)(8) A request for a stipulated time payment agreement which is not accepted on behalf of the Department will shall not be deemed an admission of liability pursuant to Section 90.408, F.S. by the Department or the taxpayer and will not prejudice either party's position in administrative or judicial proceedings.

Rulemaking Authority 20.05(1)(e), 213.06(1), 213.21(5) FS. Law Implemented 90.408, 213.05, 213.21(2), (4), 213.24(3), 443.1316, 443.141 FS. History–New 10-4-89, Amended 10-5-92, 4-29-03,__________.

 

12-17.007 Form and Execution of Stipulated Time Payment Agreements.

(1) Every stipulated time payment agreement executed under this chapter will shall specify the name, business partner number, account identification number, and audit identification number, if applicable, of the taxpayer; the taxpayer’s current business address and the current address of the physical location of the business; the type of tax tax(es) and the taxable periods period(s) covered; the date of the proposed assessment, or warrant, or notice of lien, and the terms of the agreement.

(2) The Department prescribes form DR-68 (Stipulated Time Payment Agreement), as the form to be used by the Department for the purposes of this chapter.

(2)(3) Every stipulated time payment agreement must shall be signed on behalf of the Department by a person with delegated authority to enter into the agreement under Rule 12-17.004, F.A.C.

(3)(4) Every stipulated time payment agreement must shall be signed by the taxpayer or the taxpayer’s representative with authority to enter into the agreement on behalf of the taxpayer.

(a) In the case of a corporate taxpayer, an officer of the corporation must shall sign the agreement unless paragraph (c) of this subsection is applicable.

(b) An officer’s or fiduciary’s signature on a stipulated time payment agreement made by or for a taxpayer is shall be prima facie evidence that such individual was authorized to sign the agreement on behalf of the taxpayer.

(c) A stipulated time payment agreement may be signed by a representative of the taxpayer who files with the Department a Power of Attorney and Declaration of Representative (Form DR-835, incorporated by reference in Rule 12-6.0015, F.A.C.) power of attorney form (DR-835), which grants the representative authority to execute the agreement on behalf of the taxpayer.

(4)(5) A stipulated time payment agreement will become effective when it has been executed by all both parties. Any modification of the terms of the agreement must be in writing and executed by all parties. Upon presentation of the agreement, the Department will provide the taxpayer with a:

(a) A detailed amortization schedule of payments required for satisfaction of the outstanding liabilities. tax, interest, and penalty referenced in the stipulated time payment agreement, which will be placed on the stipulated time payment agreement above the signature lines; and.

(b) Payment coupons.

(6) Form DR-68 is incorporated by reference in Rule 12-17.010, F.A.C., and can be obtained as discussed in that rule.

Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.05, 213.21(2), (4), 213.24(3), 213.69, 443.1316 FS. History–New 10-4-89, Amended 10-5-92, 8-17-94, 4-29-03, __________.

 

12-17.008 Terms of Stipulated Time Payment Agreements.

(1) Every stipulated time payment agreement will include a discussion and determination of each of the following issues:

(a) The number of payments to be made during the term of the agreement (e.g., 6, 12, or 24 payments);

(b) The frequency and due date of each payment to be made during the term of the agreement (e.g., weekly, bi-weekly, or monthly);

(c) The amount of any Whether a down payment and the amount of each payment to be made during is required, as part of the terms of the agreement, and the amount of such down payment;

(d) Whether each payment will be an equal amount (e.g., an equal amount due each payment period), or equal payments with the final payment being a balloon payment);

(d)(e) How the Department will allocate each payment to reduce the outstanding liabilities, debt of tax, penalty, or interest as provided by Section 213.75, F.S.;

(f) Whether any portion of the liability will remain unpaid at the end of the current payment agreement, and if so, which of the following actions will be taken by the Department:

1. The terms and conditions of another payment agreement will be negotiated upon full compliance with the current agreement; or

2. The Department will request the taxpayer to pay the unpaid balance in full based on:

a. The taxpayer’s failure to fully comply with the current agreement; or

b. An improvement in the taxpayer’s financial condition.

(2) A down payment in a stipulated time payment agreement will be based upon the taxpayer’s filing and payment history, the amount of the outstanding liabilities, and any financial information provided by the taxpayer reflecting the taxpayer’s ability to pay. The determinations made in paragraphs (1)(a) through (f) of this rule by the Department will be based on the factors contained in Rule 12A-17.005 and subsection 12-17.006(5), F.A.C.

(3) Where there is risk to the state regarding collection of the amount due, additional terms will be included in a stipulated time payment agreement.

(4)(3) Every stipulated time payment agreement will made pursuant to this chapter shall include a notification to the taxpayer that:

(a) Interest will shall continue to accrue on the unpaid balance of the tax at the stated rate. provided by law; and

(b) The taxpayer agrees to waive any and all rights, or purported rights, to institute any judicial or administrative proceeding to recover, compromise, defer, restructure, avoid, challenge or reduce any outstanding liabilities paid or payable pursuant to the agreement. The Department will file a lien for the full amount of the unpaid liability, unless the Department representative who negotiates the agreement documents in writing the reason(s) for not filing a lien (any reason documented by the representative is acceptable). Also, the establishment of a stipulated time payment agreement does not invalidate or withdraw a warrant issued with respect to the liability covered by the agreement;

(c) The taxpayer agrees to accurately complete and timely file all required tax returns and timely remit all taxes that become due during the term of the agreement.

(d) The taxpayer agrees to pay each stipulated time payment to the Department by electronic means on or before the due date, unless a variance or waiver is granted pursuant to Section 120.542, F.S., and Rule Chapter 28-104, F.A.C.

(e) The taxpayer understands that the provisions of Section 213.732, F.S., relating to jeopardy assessments continue to apply during the terms of the agreement.

(f)(c) The current stipulated time payment agreement will be void if the taxpayer will be held in default of the terms of the stipulated time payment agreement when the taxpayer fails to comply:

1. Comply with all terms conditions of the agreement.; or

2. Submit all returns and pay all taxes in full pursuant to the revenue laws of Florida enumerated in Section 213.05, F.S., that become due during the term of the agreement.

(d) The provisions of the statutes relating to jeopardy assessments will continue to apply to a taxpayer who has entered into a stipulated time payment agreement.

(e) A taxpayer must submit cash, a cashier’s check, or a money order to the Department within seven calendar days of being informed that he or she has paid a stipulated time payment with a check that is not valid due to insufficient funds.

(f) Explains the rights granted to each taxpayer by subsection (2) of Rule 12-17.009, F.A.C., to protest the termination of a stipulated time payment agreement.

(g) If the taxpayer is held in default of the terms of the agreement, the Department will implement one or more of the following actions:

1. Issue a warrant or notice of lien for any outstanding liability and file a judgment lien certificate;

2. Issue levy instructions to the sheriff;

3. Refer the outstanding liability to the Department of Business and Professional Regulation for license action;

4. Implement the garnishment provisions of Section 213.67, F.S.;

5. Implement the provisions of Sections 212.18 and 213.692, F.S., to revoke all certificates of registration, permits, or licenses issued by the Department to the taxpayer;

6. Implement the provisions of Section 443.141, F.S., for collection of the outstanding contributions or reimbursements;

7. Assess the responsible person a penalty pursuant to Section 213.29, F.S.; or

8. Any other action provided by law to collect all outstanding liabilities.

(h) If the taxpayer fails to comply with the terms of the agreement, the Department is entitled to recover the outstanding liabilities, including attorney’s fees.

(i) The waiver by the Department of any breach of a stipulated time payment agreement by the taxpayer does not constitute a waiver of any other breach.

(5) When a taxpayer is in compliance with the terms of a stipulated time payment agreement, the Department agrees not to commence any additional collection activities for the outstanding liabilities. However, the provisions of Sections 213.732 and 443.141, F.S., relating to jeopardy assessments continue to apply during the terms of the agreement.

(6) The amount of the outstanding liabilities identified in any stipulated time payment agreement is subject to increase when the Department discovers through audit or otherwise that the outstanding liabilities have been understated. If the Department discovers through audit or otherwise that the outstanding liabilities are understated, the taxpayer will be assessed the additional liabilites. The taxpayer may protest the additional outstanding liabilities assessed, as provided in Rule Chapter 12-6, F.A.C.

Rulemaking Authority 20.05(1)(e), 213.06(1), 213.21(5) FS. Law Implemented 213.21(2), (4), 213.24(3), 213.69, 443.1316 FS. History–New 10-4-89, Amended 10-5-92, 6-15-93, 4-29-03,__________.

 

12-17.009 Termination of Agreements in Default.

(1) A taxpayer who fails to comply with the terms of The Department will void a stipulated time payment agreement will be held in default. under one or both of the following conditions:

(a) The taxpayer fails to make full payment when due under the terms of the agreement, or

(b) The taxpayer fails to remit in full amounts which become due and payable after the execution of the agreement.

(2) In the absence of jeopardy, as provided in Section 213.732, F.S., before holding a taxpayer in default of Before voiding a stipulated time payment agreement, the Department will notify the taxpayer in writing of the taxpayer’s failure to meet the terms of the agreement and provide afford the taxpayer the opportunity to present evidence of compliance with the current agreement, unless jeopardy to the revenue has previously been assessed.

(a) If the taxpayer fails to present evidence of compliance respond to this notification within 15 consecutive calendar days of the date on the notification from the Department, the taxpayer will be held in default of the terms of the agreement is voided.

(b) If the taxpayer agreement is held in default voided by the Department, the taxpayer will shall have an additional 15 consecutive calendar days after the date the Department notifies the taxpayer that the agreement has been voided to request that the Department reconsider voiding the agreement and to submit written proof that there are “reasonable cause” grounds for not holding voiding the agreement in default, pursuant to the “reasonable cause” provisions in Section 213.21, F.S., and Rule 12-13.007, F.A.C.

(c) If the taxpayer does not establish “reasonable cause” within the 15 consecutive calendar day period discussed in paragraph (b) of this subsection, the Department’s decision that the taxpayer is in default of the terms of to void the agreement becomes is final.

(3) Any outstanding liabilities that remain Should the Department void the agreement, any unpaid balance due at under the time a taxpayer is held in default of the terms of a stipulated time payment agreement are is immediately due and payable.

(4) If subsection (1) is applicable or if an agreement has otherwise expired, the Department will implement one or more of the following steps:

(a) Issue levy instructions to the sheriff to issue a warrant for the remaining liability or execute that warrant or a warrant previously issued with respect to the liability.

(b) Refer the issue to the Division of Alcoholic Beverages and Tobacco of the Department of Business and Professional Regulation for beverage license action;

(c) Implement the garnishment provisions of Section 213.67, F.S., and Part II of Rule Chapter 12-21, F.A.C.;

(d) Implement the collection referral provisions of Section 213.27, F.S.; and

(e) Cancel the sales tax registration certificate of a taxpayer pursuant to Section 212.18(3)(b), F.S.

Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(2), (4), 213.24(3), 213.27, 213.67, 213.69, 213.692, 443.1316 FS. History–New 10-4-89, Amended 4-29-03,__________.

 

12-17.010 Public Use Forms.

Rulemaking Authority 213.06(1) FS. Law Implemented 213.21(4) FS. History–New 4-29-03, Repealed__________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Janet Young, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone: [phone]

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Governor and Cabinet

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: September 24, 2013

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: A Notice of Proposed Rule Development was published in the Florida Administrative Weekly on August 31, 2012 (Vol. 38, No. 35, pp. 3559 - 3560), to advise the public of the proposed changes to Rule Chapter 12-17, F.A.C. (Agreements for Scheduling Payments of Liabilities), and to provide that, if requested in writing, a rule development workshop would be held on September 20, 2012. No request was received by the Department. No written comments were received by the Department.