Bill 386

                    Current Status

Bill Number:                       386
Type of Legislation:               General Bill GB
Introducing Body:                  Senate
Introduced Date:                   19950118
Primary Sponsor:                   McConnell 
All Sponsors:                      McConnell 
Drafted Document Number:           bbm\9722htc.95
Residing Body:                     Senate
Current Committee:                 Finance Committee 06 SF
Subject:                           Revenue and Taxation
                                   Department

Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

Senate  19950118  Introduced, read first time,             06 SF
                  referred to Committee

A BILL

TO AMEND SECTION 12-54-160, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AUTHORITY OF THE DEPARTMENT OF REVENUE AND TAXATION WITH RESPECT TO THE WAIVER, DISMISSAL, OR REDUCTION OF PENALTIES AND INTEREST, SO AS TO AUTHORIZE THE DEPARTMENT TO WAIVE INTEREST ON UNDERPAYMENTS WHEN A TAXPAYER FOLLOWED INACCURATE PROFESSIONAL ADVICE, HAD NO KNOWLEDGE OF THE TAX LIABILITY, OR IF THE IMPOSITION OF THE TAX IS THE RESULT OF REGULATION OR OTHER INTERPRETATION OF EXISTING TAX LAWS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 12-54-160 of the 1976 Code is amended to read:

"Section 12-54-160. The Commission department, unless prohibited within a specific section, may waive, dismiss, or reduce penalties provided for in this chapter;. Interest may not be waived, dismissed, or reduced except:

(1) when the taxpayer can establish that he followed professional advice which has proved inaccurate; or

(2) if the taxpayer can by clear and convincing evidence establish he did not know he was liable for the tax; or

(3) the imposition of the tax is a result of regulation or other interpretation of existing tax laws."

SECTION 2. This act takes effect upon approval of the Governor and applies with respect to interest on underpayments of state taxes assessed on and after that date. The provisions of Section 1 of this act also apply to interest paid or accrued in the three years preceding the effective date of the act, but no refund of interest already paid may be made except upon application therefor to the Department of Revenue and Taxation within ninety days of the effective date of this act.