Section 213.21(2), F.S., authorizes the Executive Director of the Department to designate positions within the Department that may enter into agreements with a taxpayer to settle or compromise the taxpayer’s liability for any tax, interest, or ...

 

DEPARTMENT OF REVENUE

RULE NO: RULE TITLE
12-13.004: Delegation of Authority to Determine Settlements or Compromises
PURPOSE AND EFFECT: Section 213.21(2), F.S., authorizes the Executive Director of the Department to designate positions within the Department that may enter into agreements with a taxpayer to settle or compromise the taxpayer’s liability for any tax, interest, or penalty assessed. The purpose of the proposed amendments to Rule 12-13.004, F.A.C. (Delegation of Authority to Determine Settlements or Compromises), is to update the rule to reflect the positions within the Department authorized to settle or compromise a taxpayer’s assessment.
SUMMARY: The proposed amendments to Rule 12-13.004, F.A.C. (Delegation of Authority to Determine Settlements or Compromises): (1) update the positions authorized by the Executive Director of the Department to settle or compromise a taxpayer’s assessment to reflect the current organizational structure of the General Tax Administration Program and Technical Assistance and Dispute Resolution; and (2) simplify the rule by providing these delegations of authority in a chart, for ease of reference.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
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.
SPECIFIC AUTHORITY: 213.06(1), 213.21(5) FS.
LAW IMPLEMENTED: 213.05, 213.21 FS.
A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: June 24, 2010, 9:00 a.m.
PLACE: Room 118, Carlton Building, 501 S. Calhoun Street, Tallahassee, Florida
NOTICE UNDER THE AMERICANS WITH DISABILITIES ACT: Any person requiring special accommodations to participate in any rulemaking proceeding before Technical Assistance and Dispute Resolution is asked to advise the Department at least 48 hours before such proceeding by contacting Sarah Wachman at [phone]. Persons with hearing or speech impairments may contact the Department by using the Florida Relay Service, which can be reached at [phone] (Voice) and [phone] (TDD).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Janet L. 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:

12-13.004 Delegation of Authority to Determine Settlements or Compromises.

(1) through (2) No change.

(3) Cases in Protest. In cases involving a tax matter in protest in Technical Assistance and Dispute Resolution, authority to settle and compromise is delegated as follows:

(a) through (b) No change.

(c) For compromise of the following amounts of tax, or interest, or of $125,000 each or less and of penalty in any amount, to the Office Director of Technical Assistance and Dispute Resolution, and the Program Director and Deputy Program Director within the General Tax Administration Program:.

 

Positions	Tax	Interest	Penalty
Technical Assistance and Dispute Resolution
Director	$125,000	$125,000	Any Amount
Deputy Director	$125,000	$125,000	Any Amount
Revenue Program Administrators I and II	$62,500	$62,500	$250,000
Senior Attorneys	$12,500	$12,500	$ 75,000
Attorneys	$12,500	$12,500	$ 75,000
Tax Law Specialists	$12,500	$12,500	$ 75,000
Senior Tax Specialists	$12,500	$12,500	$ 75,000
General Tax Administration Program
Program Director	$125,000	$125,000	Any Amount
Deputy Program Director	$125,000	$125,000	Any Amount
Regional Managers	$62,500	$62,500	$250,000
Service Center Managers	$1,250	$1,250	$75,000
Tax Audit Supervisors	-0-	-0-	$37,500
Tax Specialists	-0-	-0-	$3,750
Revenue Specialist	-0-	-0-	$3,750
Taxpayer Services Process
Process Manager	$62,500	$62,500	$250,000
Revenue Program Administrators	$2,500	$2,500	$75,000
Tax Specialist Administrators	$2,500	$2,500	$ 75,000
Revenue Administrators	$2,500	$2,500	$ 75,000
Revenue Managers	$1,250	$1,250	$ 12,500
Compliance Support Process
Process Manager	$ 62,500	$ 62,500	$250,000
Revenue Program Administrators	$ 12,500	$12,500	$ 75,000
Tax Law Specialists	$ 12,500	$ 12,500	$ 75,000
Senior Tax Specialists	$ 12,500	$ 12,500	$ 75,000
Government Analysts II	$ 12,500	$ 12,500	$ 75,000

 

(d) For compromise of amounts of tax or interest of $62,500 each or less and penalty of $250,000 or less, to the Revenue Program Administrators I and II Technical Assistance and Dispute Resolution, and the Process Managers of the Taxpayer Services, Compliance Enforcement, and Compliance Support Processes.

(e) For compromise of amounts of tax or interest of $12,500 each or less and of penalty of $125,000 or less, to all Regional Managers of the Compliance Enforcement.

(f) For compromise of amounts of tax or interest of $12,500 each or less and of penalty of $75,000 or less, to the Senior Attorneys, Attorneys, Tax Law Specialists, and Senior Tax Specialists of Technical Assistance and Dispute Resolution, and the Revenue Program Administrators, Tax Law Specialists, Senior Tax Specialists and Government Analysts IIs of the Compliance Support Process.

(g) For compromise of amounts of tax or interest of $2,500 each or less and of penalty of $75,000 or less, to the Revenue Program Administrators II and Revenue Administrators III of the Taxpayer Services Process.

(h) For compromise of amounts of tax or interest of $1,250 each or less and of penalty of $75,000 or less, to the Service Center Managers of the Compliance Enforcement Process.

(i) For compromise of amounts of tax or interest of $1,250 each or less and of penalty of $12,500 or less, to the Tax Specialists I and II, the Revenue Managers of the Taxpayer Services Process, and the Revenue Managers of the Compliance Enforcement Process.

(j) For compromise of amounts of tax or interest of $625 each or less and penalty of $3,750 or less, to the Revenue Specialists I, II, and III of the Taxpayer Services Process.

(k) For compromise of penalty of $75,000 or less, to the Revenue Program Administrators I and II of the Compliance Enforcement Process.

(l) For compromise of penalty of $37,500 or less, to the Process Group Managers or Tax Audit Supervisor positions in the Compliance Enforcement Process.

(m) For compromise of penalty of $12,500 or less, to the Tax Specialist Administrators of the Compliance Support Process.

(n) For compromise of penalty of $12,500 or less, to the Tax Specialist II of the Program Director’s Office within the General Tax Administration Program.

(o) For compromise of penalty of $3,750 or less, to the Revenue Specialists I, II, and III of the Compliance Enforcement Process.

(4) Collection Cases. In cases involving a tax matter related to billings or assessments that which have been issued by or referred for collection to the Taxpayer Services Process, authority to settle and compromise is delegated as follows:

(a) through (b) No change.

(c) For compromise of the following amounts of tax, or interest, or of $125,000 each or less and penalty in any amount, to the Program Director and Deputy Program Director of the General Tax Administration Program:.

 

Positions	Tax	Interest	Penalty
General Tax Administration Program
Program Director	$125,000	$125,000	Any Amount
Deputy Program Director	$125,000	$125,000	Any Amount
Regional Managers	$ 62,500	$ 62,500	$250,000
Service Center Managers	$ 1,250	$ 1,250	$ 75,000
Revenue Administrators	$ 1,250	$ 1,250	$ 12,500
Tax Specialists	$ 1,250	$ 1,250	$ 12,500
Tax Audit Supervisors	-0-	-0-	$ 37,500
Revenue Specialists	-0-	-0-	$ 3,750
Taxpayer Services Process
Process Manager	$ 62,500	$ 62,500	$250,000
Revenue Program Administrators	$ 2,500	$ 2,500	$ 75,000
Revenue Administrators	$ 2,500	$ 2,500	$ 75,000
Tax Specialist Administrators	$ 2,500	$ 2,500	$ 75,000
Revenue Managers	$ 1,250	$ 1,250	$ 12,500
Tax Specialists	-0-	-0-	$ 12,500
Revenue Specialists	-0-	-0-	$ 3,750
Compliance Support Process
Process Manager	$ 62,500	$ 62,500	$250,000
Revenue Program Administrators	$ 12,500	$ 12,500	$ 75,000
Returns and Revenue Process
Process Manager	$ 62,500	$ 62,500	$250,000
Tax Specialist Administrators	$ 2,500	$ 2,500	$ 75,000
Revenue Manager	$ 1,250	$ 1,250	$ 12,500
Revenue Specialists	-0-	-0-	$ 3,750

 

(d) For compromise of amounts of tax or interest of $62,500 each or less and penalty of $250,000 or less, to the Process Managers of the Taxpayer Services, Compliance Enforcement, and Compliance Support Processes.

(e) For compromise of amounts of tax or interest of $12,500 each or less and penalty of $125,000 or less, to the Regional Managers of the Compliance Enforcement Process.

(f) For compromise of amounts of tax or interest of $12,500 each or less and penalty of $75,000 or less, to the Revenue Program Administrators I and II of the Compliance Support Process.

(g) For compromise of amounts of tax or interest of $2,500 each or less and penalty of $75,000 or less, to the Revenue Program Administrators II, Revenue Administrators III, and Tax Specialist Administrators of the Taxpayer Services Process.

(h) For compromise of amounts of tax or interest of $1,250 each or less and penalty of $75,000 or less, to the Service Center Managers of the Compliance Enforcement Process.

(i) For compromise of amounts of tax or interest of $1,250 each or less and penalty of $12,500 or less, to the Revenue Managers and Tax Specialists I and II of the Taxpayer Services Process and Revenue Managers of the Compliance Enforcement Process.

(j) For compromise of amounts of tax or interest of $625 each or less and penalty of $3,750 or less, to the Revenue Specialists I, II, and III of the Taxpayer Services Process.

(k) For compromise of penalty in amounts of $75,000 or less, to all Revenue Program Administrators I and II of the Compliance Enforcement Process.

(l) For compromise of penalty in amounts of $37,500 or less, to all the Process Group Managers of the Compliance Enforcement Process.

(m) For compromise of penalty in amounts of $12,500 or less, to all Tax Specialist Administrators, Tax Audit Support Services Supervisors, Senior Tax Specialists (Case Processing and Contract Audits) of the Compliance Support Process.

(n) For compromise of penalty of $12,500 or less, to the Tax Specialist II of the Program Director’s Office within the General Tax Administration Program.

(o) For compromise of penalty in amounts of $3,750 or less, to all Revenue Specialists I, II, and III of the Compliance Enforcement Process.

(p) Once an audit assessment has become final, the authority to compromise delegated pursuant to paragraphs (c) through (o) shall be limited to compromises based on doubt as to collectibility or reasonable cause based upon doubt as to collectibility.

(5) Audit Cases. In cases involving an audit of the taxpayer, or an audit conducted pursuant to a refund request, prior to initiation of litigation pursuant to Section 72.011, F.S., or expiration of the period for initiating same, or upon initial receipt of a protest involving penalty issues only, authority to settle and compromise is delegated as follows:

(a) through (b) No change.

(c) For compromise of the following amounts of tax, or interest, or of $62,500 each or less and penalty of $250,000 or less, to the General Tax Administration Program Process Managers of the Taxpayer Services, Compliance Enforcement, and Compliance Support Processes:.

 

Positions	Tax	Interest	Penalty
General Tax Administration Program
Program Director	$125,000	$125,000	Any Amount
Deputy Program Director	$125,000	$125,000	Any Amount
Regional Managers	$ 62,500	$ 62,500	$250,000
Service Center Managers	$ 1,250	$ 1,250	$ 75,000
Revenue Administrators	$ 1,250	$ 1,250	$ 12,500
Tax Audit Supervisors	-0-	-0-	$ 37,500
Tax Specialists	-0-	-0-	$ 3,750
Revenue Specialist	-0-	-0-	$ 3,750
Taxpayer Services Process
Process Manager	$ 62,500	$ 62,500	$250,000
Compliance Support Process
Process Manager	$ 62,500	$ 62,500	$250,000
Revenue Program Administrators	$ 12,500	$ 12,500	$ 75,000
Tax Law Specialists	$ 1,250	$ 1,250	$ 37,500
Senior Tax Specialists	$ 1,250	$ 1,250	$ 37,500
Government Analysts II	$ 1,250	$ 1,250	$ 37,500

 

(d) For compromise of amounts of tax or interest of $12,500 each or less and penalty of $125,000 or less, to the Regional Managers of the Compliance Enforcement Process.

(e) For compromise of amounts of tax or interest of $12,500 each or less and penalty of $75,000 or less, to the Revenue Program Administrators I and II of the Compliance Support Process.

(f) For compromise of amounts of tax or interest of $1,250 each or less and penalty of $75,000 or less, to the Service Center Managers of the Compliance Enforcement Process.

(g) For compromise of amounts of tax or interest of $1,250 each or less and penalty of $12,500 or less, to the Revenue Managers of the Compliance Enforcement Process.

(h) For compromise of amounts of penalty of $75,000 or less, to all Revenue Program Administrators I and II of the Compliance Enforcement Process.

(i) For compromise of penalty in amounts of $37,500 or less, to all Process Group Managers or Tax Audit Supervisor positions in the Compliance Enforcement Process.

(j) For compromise of amounts of tax or interest of $1,250 each or less, and penalty in amounts of $37,500 or less, to all Tax Specialist Administrators, Tax Law Specialists, Senior Tax Specialists, and Government Analysts II of the Compliance Support Process and Tax Specialists II within the General Tax Administration Program.

(k) For compromise of amounts of penalty of $3,750 or less, to all Revenue Specialists I, II, and III of the Compliance Enforcement Process.

(6) Refund Cases. In cases involving refund requests that have not been referred for audit, prior to initiation of litigation pursuant to Section 72.011, F.S., or prior to expiration of the period for initiating same, authority to settle and compromise is delegated as follows to the Office of General Counsel and to the General Tax Administration Program:

 

Positions	Tax	Interest	Penalty
Office of General Counsel
General Counsel	$250,000	Any Amount	Any Amount
Deputy General Counsel	$250,000	Any Amount	Any Amount
General Tax Administration Program
Program Director	-0-	-0-	Any Amount
Deputy Program Director	-0-	-0-	Any Amount
Refunds and Revenue Distribution Process
Process Manager	-0-	-0-	$100,000
Senior Tax Audit Administrator	-0-	-0-	$ 30,000
Tax Audit Supervisors	-0-	-0-	$ 15,000

 

(a) For compromise of amounts of penalty of $100,000 or less, to the Process Manager of the Refunds and Revenue Distribution Process.

(b) For compromise of amounts of penalty of $30,000 or less, to the Senior Tax Audit Administrator in the Refunds and Revenue Distribution Process.

(c) For compromise of amounts of penalty of $15,000 or less, to the Tax Audit Supervisors in the Refunds and Revenue Distribution Process.

(7) In all other circumstances not previously described in this rule, authority to settle and compromise tax in amounts of $250,000 or less and interest and penalty in any amount is delegated to the Deputy Executive Directors, the General Counsel, and the Deputy General Counsel.

(8)(a) When the The Executive Director delegates also shall have discretionary authority to delegate authority to settle and compromise to specific employees or positions that are not provided in this rule, the delegation will be in writing, signed by the Executive Director, and will be on a temporary basis pursuant to the following circumstances:

1. The issue assigned to the employee exceeds the monetary amount the employee is currently authorized to settle or compromise pursuant to this rule chapter; or

2. The employee has assumed the duties of another employee who has authority, or a higher authority, to settle or compromise tax, interest, and penalty, and refund requests.

(b) A temporary delegation of authority to any employee or position will beyond that described herein shall be in writing, signed by the Executive Director, and shall be for a specified time period of no more than 2 years.

(c) Such delegations cannot grant authority to compromise tax in excess of $250,000.

(d) Copies of any such written delegations of authority are shall be maintained on file with the agency clerk in the Office of General Counsel.

Rulemaking Specific Authority 213.06(1), 213.21(5) FS. Law Implemented 213.05, 213.21 FS. History–New 5-23-89, Amended 8-10-92, 10-24-96, 10-2-01, 10-4-04,________.

 

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: The Governor and Cabinet

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: May 11, 2010

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: A Notice of Proposed Rule Development Workshop was published in the Florida Administrative Weekly on September 25, 2009 (Vol. 35, No. 38, pp. 4635-4636). A rule development workshop was conducted on October 13, 2009. No comments were received by the Department.