The purpose and effect of the proposed rule is to promulgate Rules 61A-2.023 and 61A-2.024 in order to establish the processes for tax assessments and refund denials, including taxpayer appeal rights.

 

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION

Division of Alcoholic Beverages and Tobacco

RULE NOS.:RULE TITLES:

61A-2.023Proposed and Final Tax Assessments

61A-2.024Final Refund Denials

PURPOSE AND EFFECT: The purpose and effect of the proposed rule is to promulgate Rules 61A-2.023 and 61A-2.024 in order to establish the processes for tax assessments and refund denials, including taxpayer appeal rights.

SUMMARY: Section 72.011(2)(b)3., Florida Statutes, requires the Department of Business and Professional Regulation to promulgate rules to set forth the processes for tax assessments and refund denials. As such, the division proposes to promulgate Rules 61A-2.023 and 61A-2.024 to satisfy this statutory requirement.

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: The economic review conducted by the agency.

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: 72.011(2)(b)3., 210.55(7)(b)2. FS.

LAW IMPLEMENTED: 72.011(2), 210.276, 210.30, 210.55 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Renita Walton-Hayes, Operations Review Specialist, Department of Business and Professional Regulation, 1940 North Monroe Street, Tallahassee, Florida 32399, [phone], [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

61A-2.023 Proposed and Final Tax Assessments – Other Tobacco Products.

(1) When an audit is performed that indicates that there is an amount of tax on tobacco products owed by the Taxpayer to the Division which is unpaid, the Division shall notify the taxpayer of the proposed tax assessment, i.e., the deficiency plus the applicable interest and penalties.

(2) A Taxpayer shall be notified of the proposed tax assessment in a letter entitled, “Notice of Proposed Tax Assessment.” 

(a) Said letter of notice shall be dated, and shall include:

1. The license number of the taxpayer.

2. The audit period of assessment.

3. The amount of the deficiency plus the applicable interest and penalties.

4. A request for payment within 10 days.

5. The specific address, e-mail address, and fax number designated to receive any response from the Taxpayer.

(b) Subsection 61A-2.020(3), Florida Administrative Code, shall accompany the letter of notice as an attachment.

(c) The letter shall also substantially contain the following language, “If you disagree with the proposed tax assessment, pursuant to Section 210.55(3), Florida Statutes, you are entitled to file a written protest and request for hearing within 60 calendar days of the mailing of this letter. For further instructions regarding the filing of the written protest and request, please see the attached recitation of subsection 61A-2.020(3), Florida Administrative Code.”

(3) A Taxpayer may file a protest and request an assessment conference within 60 calendar days of the date of the Notice of Proposed Tax Assessment.

(a) A Taxpayer protest shall include:

1. The Taxpayer’s name, address, e-mail address (if any), and telephone number.

2. A copy of the Notice of Proposed Tax Assessment.

3. The specific amounts of the tax, interest, and/or the penalty, by audit period, that is being protested.

4. A statement of facts supporting the protest of the specific amounts.

5. If applicable, a statement of law or other authority on which the taxpayer’s position is based.

6. A statement as to whether an assessment conference is being requested.

(b) A Taxpayer protest shall be filed with the Division by mailing, e-mailing, or faxing the protest to the address, e-mail address, or fax number designated on the Notice of Proposed Tax Assessment.

(4) Upon receipt of a timely protest and the holding of a hearing (if requested), the Division shall review the protest and issue a Final Tax Assessment.

(5) The Division shall dismiss protests postmarked, or e-mails and faxes received, more than 60 calendar days from the date of the Notice of Proposed Tax Assessment and shall issue a Final Tax Assessment.

(6) A Final Tax Assessment becomes final for purposes of Chapter 72, F.S., on the date of the issuance of the Final Tax Assessment.

Rulemaking Authority 72.011(2)(b)3., 210.55(7)(b)2. FS. Law Implemented 72.011(2), 210.276, 210.30, 210.55 FS. History–New___________.

 

61A-2.024 Final Refund Denials.

(1) The Division, upon determining that an application for refund should be wholly or partially denied, shall issue a notice of final refund denial to the Taxpayer with his or her application for refund. The notice of final refund denial shall include an explanation of the reason for denial.

(2)(a) The Taxpayer shall be notified of the final refund denial in a letter entitled, “Notice of Final Refund Denial.”

(b) The notice of final refund denial shall be dated and substantially include the following language, “If you disagree with this final refund denial and would like to contest, you are entiteld to initiate an administrative or judicial proceeding within 60 days of the date of this notice, pursuant to the provisions of Section 72.011, F.S.”

(3) A final refund denial becomes final for purposes of Chapter 72, F.S., on the date of the issuance of the notice of final refund denial.

Rulemaking Authority 72.011(2)(b)3. FS. Law Implemented 72.011(2) FS. History–New________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Ben Pridgeon, Chief of Auditing, Department of Business and Professional Regulation

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Ken Lawson, Secretary, Department of Business and Professional Regulation

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: October 9, 2014

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: September 8, 2014