135.810. Failure to report, penalties--notice required, when, taxpayer liable for penalties, when--change of address notification required--rulemaking authority.
Failure to report, penalties--notice required, when, taxpayerliable for penalties, when--change of address notificationrequired--rulemaking authority.
135.810. 1. After credits have been issued, any failure to meet theannual reporting requirements established in section 135.805 or anydetermination of fraud in the application process shall result in penaltiesas follows:
(1) Failure to report for more than six months but less than one yearshall result in a penalty equal to two percent of the value of the creditsissued for each month of delinquency during such time period;
(2) Failure to report for more than one year shall result in apenalty equal to ten percent of the value of the credits issued for eachmonth of delinquency during such time period up to one hundred percent ofthe value of the credit issued is assessed by way of penalty;
(3) Fraud in the application process shall result in a penalty equalto one hundred percent of the credits issued. No taxpayer shall be deemedto have committed fraud in the application process for any credit unlesssuch conclusion has been reached by a court of competent jurisdiction orthe administrative hearing commission.
2. Ninety days after the annual report is past due, the administeringagency shall send notice by registered mail to the last known address ofthe person or entity obligated to complete the annual reporting informingsuch person or entity of the past-due annual report and describing indetail the pending penalties and their respective deadlines. Six monthsafter the annual report is past due, the administering agency shall notifythe department of revenue of any taxpayer subject to penalties. Thetaxpayer shall be liable for any penalties as of December thirty-first ofany tax year and such liability shall be due as of the filing date of thetaxpayer's next income tax return. If the taxpayer is not required to filean income tax return, the taxpayer's liability for penalties shall be dueas of April fifteenth of each year. The director of the department ofrevenue shall prepare forms and promulgate rules to allow for the reportingand satisfaction of liability for such penalties. The director of thedepartment of revenue shall offset any credits claimed on acontemporaneously filed tax return against an outstanding penalty beforeapplying such credits to the tax year against which they were originallyclaimed. Any nonpayment of liability for penalties shall be subject to thesame provisions of law as a liability for unpaid income taxes, including,but not limited to, interest and penalty provisions.
3. Penalties shall remain the liability of the person or entityobligated to complete the annual reporting, without regard to any transferof the credits.
4. Any person or entity obligated to complete the annual reportingrequirements provided in section 135.805 shall provide the properadministering agency with notice of change of address when necessary.
5. An administering agency may promulgate rules in order to implementthe provisions of this section. Any rule or portion of a rule, as thatterm is defined in section 536.010, RSMo, that is created under theauthority delegated in this section shall become effective only if itcomplies with and is subject to all of the provisions of chapter 536, RSMo,and, if applicable, section 536.028, RSMo. This section and chapter 536,RSMo, are nonseverable and if any of the powers vested with the generalassembly pursuant to chapter 536, RSMo, to review, to delay the effectivedate, or to disapprove and annul a rule are subsequently heldunconstitutional, then the grant of rulemaking authority and any ruleproposed or adopted after August 28, 2004, shall be invalid and void.
(L. 2004 S.B. 1099)