H 5051 Session 112 (1997-1998)
H 5051 General Bill, By Robinson
A BILL TO AMEND SECTION 12-60-920, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO TAXPAYER APPEAL OF A JEOPARDY ASSESSMENT BY THE DEPARTMENT OF
REVENUE, SO AS TO ALLOW THE TAXPAYER TO REQUEST RELIEF BY DELIVERING THE
REQUEST AND GROUNDS FOR RELIEF TO THE DEPARTMENT, TO SET TIME REQUIREMENTS FOR
FILING OF DEPARTMENTAL RESPONSE AND JUDICIAL DETERMINATION FROM THE DATE A
JEOPARDY HEARING IS REQUESTED, TO CHANGE THE SCOPE OF JUDICIAL REVIEW FROM THE
REASONABLENESS OF MAKING THE ASSESSMENT TO A DETERMINATION THAT THE COLLECTION
OF THE TAX IS IN JEOPARDY, AND TO REVISE THE REVIEW PROCEDURE TO REFLECT
CHANGES IN THE SCOPE OF REVIEW.
04/15/98 House Introduced and read first time HJ-11
04/15/98 House Referred to Committee on Ways and Means HJ-11
A BILL
TO AMEND SECTION 12-60-920, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO TAXPAYER APPEAL OF A
JEOPARDY ASSESSMENT BY THE DEPARTMENT OF
REVENUE, SO AS TO ALLOW THE TAXPAYER TO REQUEST
RELIEF BY DELIVERING THE REQUEST AND GROUNDS FOR
RELIEF TO THE DEPARTMENT, TO SET TIME
REQUIREMENTS FOR FILING OF DEPARTMENTAL
RESPONSE AND JUDICIAL DETERMINATION FROM THE
DATE A JEOPARDY HEARING IS REQUESTED, TO CHANGE
THE SCOPE OF JUDICIAL REVIEW FROM THE
REASONABLENESS OF MAKING THE ASSESSMENT TO A
DETERMINATION THAT THE COLLECTION OF THE TAX IS
IN JEOPARDY, AND TO REVISE THE REVIEW PROCEDURE
TO REFLECT CHANGES IN THE SCOPE OF REVIEW.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 12-60-920 of the 1976 Code, as added by
Act 60 of 1995, is amended to read:
"Section 12-60-920. (A) Within five days after the day on
which a jeopardy assessment is made, the department shall provide
the taxpayer with a written statement of the information the
department relied on in making the assessment.
(B) Within thirty days after the day on which the taxpayer is
furnished the written statement described in subsection (A), or within
thirty days after the last day of the period within which the statement
is required to be furnished, the taxpayer may request a contested
case jeopardy hearing before the Administrative Law
Judge Division by delivering the request to the department.
Requests The request for a jeopardy hearing
before the Administrative Law Judge Division also
must be made in accordance with its rules. The only issue for
determination under this subsection is whether the jeopardy
assessment is reasonable and appropriate include a statement
setting forth the taxpayer's grounds for relief.
(C) Within ten days after an action is commenced under
subsection (B) a jeopardy hearing is requested, the
department shall file its response with the Administrative Law Judge
Division. Within twenty days after the department's response
jeopardy hearing is requested, or as soon thereafter
after as practicable, an administrative law judge shall
determine whether or not the making of the jeopardy assessment
is reasonable under the circumstances, and whether:
(1) the collection of the tax assessed is in jeopardy; and
(2) the amount so assessed or demanded as
a result of the action taken under Section 12-60-910 is appropriate
under the circumstances. The running of the ten-day and
twenty-day periods begins on the day on which service is made on
the department.
(D) If the Administrative Law Judge determines that
the making of the jeopardy assessment is unreasonable or that the
amount assessed or demanded is inappropriate, he may order the
department to abate the assessment, to redetermine, in whole or in
part, the amount assessed or demanded, or to take other action as the
judge finds appropriate. In a jeopardy hearing under
subsection (C), the:
(1) department has the burden of proof of showing the
collection of the tax assessed is in jeopardy;
(2) taxpayer has the burden of proof of showing the tax assessed
as a result of the action taken under Section 12-60-910 is not
appropriate.
(E) (1) The decision made by the Administrative Law
Judge under this section is final and conclusive and may not be
reviewed by any court. If the administrative law judge
determines the collection of the tax assessed:
(a) is in jeopardy and the tax assessed is appropriate, the
department may continue with its jeopardy collection procedures;
(b) is not in jeopardy, the department may not continue its
jeopardy collection procedures; or
(c) is in jeopardy but the tax assessed is not appropriate, the
judge shall determine the amount that the department may collect
through its jeopardy collection procedures.
(2) The decision by the administrative law judge under this
subsection may not be reviewed by a court except that judicial review
of a decision rendered by an administrative law judge may be sought
under subsection (F).
(F)(1) In an action under subsection (B) involving the
issue of whether the making of an assessment under Section
12-60-910 is reasonable under the circumstances, the burden of proof
in respect to the issue is on the department.
(2) In an action under subsection (B) involving
the issue of whether an amount assessed or demanded as a result of
action taken under Section 12-60-910 is appropriate under the
circumstances, the department shall provide a written statement
containing any information on which its determination of the amount
assessed was based, but the burden of proof in respect to the issue is
on the taxpayer. If the administrative law judge determines
the collection of the tax assessed is in jeopardy, pursuant to
subsection (E)(a) or (c), the judge shall remand the case to the
department to issue a final agency determination in accordance with
the order of the administrative law judge within a time period
determined by the judge. The taxpayer may appeal this final agency
determination in accordance with Section 12-60-460. At the
contested case hearing on this final agency determination, the
taxpayer and department may raise issues and argument previously
presented at the jeopardy hearing."
SECTION 2. This act takes effect upon approval by the Governor.
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