The bill amends Section 44-1-7 of the General Laws concerning state tax officials, specifically addressing interest rates on delinquent tax payments and limitations on the tax administrator's authority to conduct audits. It establishes that, starting January 1, 2026, the interest rate on all delinquent tax payments will be capped at twelve percent (12%) per annum, including for trust fund taxes as established by 44-19-35 and 44-30-76. Additionally, the bill specifies that the interest rate applied will be based on the date of notification of delinquency rather than the original tax obligation date.

Furthermore, the bill introduces limitations on the tax administrator's auditing authority, restricting audits to a period of three years from the date of filing, with a maximum of seven years for cases involving fraud. Under no circumstances shall the tax administrator initiate or conduct an audit, investigation, or tax collection for any period in excess of ten years from the date of the original filing or required filing deadline, whichever is later. The tax administrator is also prohibited from requesting filings or attempting to collect tax liabilities for any period in excess of seven years from the date of filing or required filing deadline, regardless of whether an audit has been initiated. The limitation provided in this subsection shall apply without exception. The provisions of this act will take effect on January 1, 2026, and will apply to all assessments, audits, and tax payments initiated on or after that date.

Statutes affected:
5757: 44-1-7