HB2019 - 451R - House Bill Summary

House of Representatives

HB 2019

department of revenue; confidentiality

Sponsors: May

X	Committee on Ways and Means
	Caucus and COW	This bill as introduced contains *an Appropriation clause.*
	As Passed the House

Establishes a new Refund Offset Program Fund that will be administered by Department of Revenue (DOR). This bill also allows DOR to disclose confidential information to other corporate officers.

History

In 1998 The IRS Restructuring and Reform act was passed creating the Federal Offset Program. The program is managed by Financial Management Service (FMS), a branch of the U.S. Department of Treasury. This program allows for states and territories to have the opportunity ot offset federal tax refunds against state tax debts. Trial run of this program was undertaken in Arizona and it yielded a net profit of $3,626,660 for the state. Current law does not provide for the creation of a Refund Offset Program Fund.

The bill also addresses who may receive confidential information for corporations. Current law stipulates that confidential corporate tax information can be disclosed to only “a designee of the taxpayer possessing written authorization” or to any “principal corporate officer”.

Provisions

· Establishes a Refund Offset Program Fund. This fund enables DOR to offset federal tax refunds against state tax debts. Monies from the fund are then utilized for administrative costs for the fund and any remaining monies go to the general fund, also the program fund is exempt from appropriation lapsing.

· Permits Financial Management Service of the Treasury Department to receive confidential information for the refund offset program.

· Appropriates to DOR $195,000 from the state general fund in fiscal year 2001-2002 for program setup.

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· 44th Legislature