The bill introduces amendments to the Rhode Island General Laws, particularly affecting Business Corporation Tax and Sales and Use Taxes. It revises the time limitations for the assessment of corporate income tax, setting a general three-year period post-filing, with exceptions for fraudulent returns or consent for extended periods, and a six-year period if more than 25% of Rhode Island income is omitted from a return. The bill also specifies a ten-year limit for issuing deficiency notices or commencing collection actions post-filing, with exceptions for bankruptcy proceedings. It mandates a five-business-day notification to the tax administrator before the sale or transfer of a major part of a business's assets, except for sales by certain public officers. The bill clarifies the time frame for issuing written notices of determination for Sales and Use Taxes, with a three-year limit post-filing, except in cases of fraud.

Furthermore, the bill sets a ten-year limitation on the tax administrator's actions for deficiency determinations and collections for various taxes, including sales, use, estate, and personal income tax, counting from the date the return was filed. It allows for the suspension of this limitation period during bankruptcy or state receivership proceedings and permits the renewal of statutory liens within the ten-year period. The bill also clarifies that the ten-year limit does not affect the state's efforts to collect liabilities that became final within that period. An insertion regarding the estate tax assessment and notice is included, detailing the tax administrator's powers and the lien on the estate until the tax is paid. The act is to take effect upon passage, indicating an immediate implementation of these changes.

Statutes affected:
2813  as amended: 44-19-13, 44-23-9, 44-30-83
2813: 7-16-67.1, 44-19-13, 44-23-9, 44-30-83