The Taxpayer Right to Appeal Act Exposed

The Taxpayer Right to Appeal Act was adopted by ALEC's Tax and Fiscal Policy Task Force at the Annual Meeting on August 20, 1998, approved by the full Board of Directors August, 1998. According to ALEC.org, the Act was re-approved by the Board of Directors on January 29, 2013. (Accessed on 2/1/2016).

CMD's Bill Summary

This Act would allow taxpayers to appeal taxes without having to pay for the assessment, costing the government revenue.

ALEC Bill Text

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.}

Adopted by the Tax and Fiscal Policy Task Force at the Annual Meeting, August 20, 1998.

Approved by the full ALEC Board of Directors August, 1998.