Taxpayer Right to Appeal Act

Taxpayer Right to Appeal Act

Summary

Taxpayers are often required to pay any tax assessment before they may exercise their right to dispute or appeal the assessment. This “pay-to-play” requirement places an undue burden on small businesses and taxpayers.

Model Legislation

{Title, enacting clause, etc.}

Section 1. {Title.} This Act shall be known and may be cited as The Taxpayer Right to Appeal Act

Section 2. {Statement of purpose} It is the intent of the legislature to allow taxpayers to dispute or appeal a tax without having to first pay the tax assessment. Taxpayers should not be required to pay a disputed tax assessment before they may exercise their right to appeal.

Section 3. {Amendment to state revenue and tax code} Section [cite appropriate number] is amended to read:

(A) No tax imposed by [cite appropriate section] shall be required to be paid or shall be collected involuntarily during the period of time that the taxpayer is contesting the tax as set forth by {cite appropriate section}.

(B) In accordance with the foregoing, no tax shall be required to be paid or shall be collected involuntarily until the taxpayer has exhausted all rights of appeal as outlined by {cite appropriate section}

Section 4. {Severability clause.}

Section 5. {Repealer clause.}

Section 6. {Effective date.}

  

 

Reapproved by the ALEC Board of Directors on January 29, 2013.