The purpose of the proposed amendments to Rule 12-18.003, F.A.C. (Amount and Payment of Compensation), is to provide that compensation for tax information will be paid at a flat rate of 10 percent, 5 percent, or 1 percent of the tax, penalty, and ...

 

DEPARTMENT OF REVENUE

Departmental

RULE NOS.: RULE TITLE:

12-18.003 Amount and Payment of Compensation

12-18.004 Submission of Information and Claims for Compensation

PURPOSE AND EFFECT: The purpose of the proposed amendments to Rule 12-18.003, F.A.C. (Amount and Payment of Compensation), is to provide that compensation for tax information will be paid at a flat rate of 10 percent, 5 percent, or 1 percent of the tax, penalty, and interest collected based on the currently established criteria. The purpose of the proposed amendments to Rule 12-18.004, F.A.C. (Submission of Information and Claims for Compensation), is to update information on how to obtain copies of forms from the Department.

SUMMARY: The proposed amendments to Rule 12-18.003, F.A.C. (Amount and Payment of Compensation): (1) provide in subsection (2) of the rule that compensation for tax information will be paid at a flat rate of 10 percent, 5 percent, or 1 percent of the tax, penalty, and interest collected, based on the criteria currently established; and (2) remove the provisions of subsection (3) that established the criteria for when the Executive Director will pay an amount of compensation greater than the amounts established in subsection (2) of the rule.

The proposed amendments to Rule 12-18.004, F.A.C. (Submission of Information and Claims for Compensation), update information on how to obtain a copy of Form DR-55, Application for Compensation for Tax Information, from the Department.

SUMMARY OF statement of ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Costs 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) FS., 213.30(1) FS.

LAW IMPLEMENTED: 213.30 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: February 6, 2006, 10:00 a.m.

PLACE: Room 118, Carlton Building, 501 South 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 Larry Green 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 RULES 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 RULES IS:

 

12-18.003 Amount and Payment of Compensation.

(1) No change.

(2) The amount of compensation due for providing information resulting in the collection of taxes, penalties, and interest, except for the collection of unpaid taxes derived from the operation of vending machines, will take into account the value of the information in relation to the facts developed in the investigation or inspection of records.

(a) The amount of compensation will be 10 percent of the first $75,000 in taxes, penalties, and interest collected, 5 percent of the next $25,000 in taxes, penalties, and interest collected, and 1 percent of any additional taxes, penalties, and interested collected when:

1. The information is provided in the form of detailed and specific documentary or testimonial evidence;

2. The information directly caused an investigation or inspection of records;

3. The information directly resulted in the recovery of taxes, penalties, or interest due that included taxes, penalties, and interest due on a specific infraction of the revenue laws administered by the Department pursuant to Section s. 213.05, F.S.; and

4. The detailed and specific documentary or testimonial evidence provided by the applicant significantly reduced the time and resources expended in establishing the facts necessary to determine that an infraction of those revenue laws existed.

(b) The amount of compensation will be 5 percent of the first $75,000 in taxes, penalties, and interest collected, 2 1/2 percent of the next $25,000 in taxes, penalties, and interest collected, and 1/2 percent of any additional taxes, penalties, and interest collected when:

1. The information provided directly caused an investigation or inspection of records; and

2. The information, although not of sufficient detail or specificity to constitute evidence, was a significant factor in establishing that an infraction occurred and in the recovery of taxes, penalties, and interest due that included taxes, penalties, and interest due on a specific infraction of the revenue laws administered by the Department pursuant to Section s. 213.05, F.S.

(c) The amount of compensation will be 1 percent of the first $75,000 in taxes, penalties, and interest collected, and 1/2 percent of any additional taxes, penalties, and interest collected when:

1. The information caused an investigation or inspection of records; and

2. The information provided was of no value in determining the specific liability for taxes, penalties, or interest due.

(3) The Executive Director, or the Executive Director’s designee, will pay an applicant an amount greater than the amounts allowed in subsection (2) of this rule when all of the following criteria are met:

(a) The payment for compensation is insufficient to compensate the applicant for monetary damages;

(b) The applicant reasonably fears for his or her safety in light of the totality of the circumstances; and

(c) There is no other way for the Department to secure the proffered information.

(4) through (7) renumbered (3) through (6) No change.

Specific Authority 213.06(1), 213.30(1) FS. Law Implemented 213.30 FS. History–New 6-21-88, Amended 11-14-91, 9-14-93, 10-19-99,__________.

 

12-18.004 Submission of Information and Claims for Compensation.

(1) through (2) No change.

(3)(a) The Department designates Form DR-55, Application for Compensation for Tax Information, as the form to be used by claimants for this purpose. Form DR-55, Application for Compensation for Tax Information (R. 12/02), is hereby incorporated, by reference, in this rule.

(b) Copies of this form may be obtained, without cost, through one or more of the following methods: 1) downloading the form from the Department’s Internet site at http://www.myflorida.com/dor/taxes/rewards.html; or, 2) faxing a forms request to the Distribution Center at [phone]; or, 3) calling the Distribution Center at [phone]; or, 4) writing the Florida Department of Revenue, Distribution Center, 168A Blountstown Highway, Tallahassee, Florida 32304; or, 5) 2) faxing the Distribution Center at [phone]; or, 3) using a fax machine telephone handset to call the Department’s automated Fax on Demand system at [phone]; or, 4) visiting any local Department of Revenue Service Center to personally obtain a copy; or, 5) calling the Forms Request Line during regular office hours at [phone] (in Florida only) or [phone]; or, 6) downloading selected forms from the Department’s Internet site at the address shown inside the parentheses (www.myflorida.com/dor). Persons with hearing or speech impairments may call the Department’s TDD at [phone].

Specific Authority 213.06(1), 213.30(1) FS. Law Implemented 213.30 FS. History–New 6-21-88, Amended 11-14-91, 10-11-99, 10-1-03,_______.

 

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

NAME OF SUPERVISOR OR PERSON WHO APPROVED THE PROPOSED RULE: Charles Strausser, Revenue Program Administrator II, Technical Assistance and Dispute Resolution, P. O. Box 7443, Tallahassee, Florida 32314-7443; telephone number [phone]

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 27, 2005

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: The proposed amendments to Rule Chapter 12-18, F.A.C. (Compensation for Tax Information), were noticed for a rule development workshop in the Florida Administrative Weekly on November 10, 2005 (Vol. 31, No. 45, pp. 4112-4113). A rule development workshop was held on November 30, 2005. No one appeared to provide comment regarding these proposed rule changes. No written comments have been received by the Department.