H*3550(Rat #0163, Act #0084 of 1997)  General Bill, By Boan
 A BILL TO AMEND SECTION 12-54-240, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
 1976, RELATING TO PROHIBITION OF DISCLOSURE OF INFORMATION FILED WITH THE
 DEPARTMENT OF REVENUE, SO AS TO ALLOW EXAMINATION OF INFORMATION BY PERSONS
 CONTRACTED WITH FOR AUDIT OF STATEWIDE FINANCIAL STATEMENTS OR COLLECTION OF
 DELINQUENT TAXES, AND TO SUBSTITUTE "DEPARTMENT" FOR "COMMISSION".

   02/27/97  House  Introduced and read first time HJ-5
   02/27/97  House  Referred to Committee on Ways and Means HJ-5
   04/17/97  House  Committee report: Favorable Ways and Means HJ-7
   04/29/97  House  Read second time HJ-22
   04/30/97  House  Read third time and sent to Senate HJ-9
   05/01/97  Senate Introduced and read first time SJ-7
   05/01/97  Senate Referred to Committee on Finance SJ-7
   05/21/97  Senate Committee report: Favorable Finance SJ-21
   05/22/97  Senate Read second time SJ-64
   05/22/97  Senate Ordered to third reading with notice of
                     amendments SJ-64
   05/29/97  Senate Read third time and enrolled SJ-50
   06/04/97         Ratified R 163
   06/10/97         Signed By Governor
   06/10/97         Effective date 06/10/97
   06/24/97         Copies available
   06/24/97         Act No. 84

AN ACT TO AMEND SECTION 12-54-240, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROHIBITION OF DISCLOSURE OF INFORMATION FILED WITH THE DEPARTMENT OF REVENUE, SO AS TO ALLOW EXAMINATION OF INFORMATION BY PERSONS CONTRACTED WITH FOR AUDIT OF STATEWIDE FINANCIAL STATEMENTS OR COLLECTION OF DELINQUENT TAXES, AND TO SUBSTITUTE "DEPARTMENT" FOR "COMMISSION".

Be it enacted by the General Assembly of the State of South Carolina:

Allows disclosure of Department of Revenue information in certain circumstances

SECTION 1. Section 12-54-240(B) and (C) of the 1976 Code, as last amended by Act 459 of 1996, is further amended to read:

"(B) Nothing in this section prohibits the:

(1) publication of statistics classified to prevent the identification of particular reports or returns and the items included on them, or the inspection by the Attorney General or other legal representative of the State of the report or return of a taxpayer (a) who brings an action to set aside or review the tax based on the report or return or against whom an action or proceeding has been instituted to recover a tax or a penalty imposed by this chapter, or (b) who has applied for review of an adjustment proposed by the department, or (c) filing a petition for redetermination of a deficiency assessed by the department. Reports and returns must be preserved for six years and after until the department orders them to be destroyed;

(2) examination of records, returns, and reports held by the department by persons employed by the State Auditor's Office annually to examine the books, accounts, receipts, disbursements, vouchers, and records of the department as required by Section 11-7-20;

(3) examination of records, returns, and reports held by the department by persons retained on an independent contract basis by the State Auditor's Office exclusively for the purpose of auditing statewide financial statements, or by persons retained on an independent contract basis by the department to collect delinquent taxes;

(4) transfer of funds and the submission of taxpayer home addresses and corrected social security numbers to the Department of Social Services Child Support Enforcement Division in accordance with Section 12-54-430(D);

(5) inspection of returns by officials of other jurisdictions in accordance with Section 12-7-1690;

(6) disclosure of deficiency assessments to probate courts and the filing of warrants for uncollected taxes;

(7) submission of taxpayer names, home addresses, and social security numbers to the State Election Commission and Department of Public Safety to effect the purposes of Section 14-7-130;

(8) exchange of information pursuant to Section 12-54-260 between the department and the collecting agency necessary to implement that section;

(9) disclosure of information pursuant to Section 12-4-310(5) to county and municipal officials;

(10) verification of information to the Retirement Systems Division of the State Budget and Control Board pursuant to Section 12-4-360;

(11) disclosure of information contained on a return to the South Carolina Employment Security Commission, Department of Revenue, or to the Department of the Treasury, Alcohol, Tobacco and Firearms Division;

(12) disclosure of whether a resident or nonresident tax return was filed by a particular taxpayer to the South Carolina Department of Natural Resources;

(13) disclosure of information pursuant to Section 12-54-1010(c) or 12-54-1020(c);

(14) disclosure and presentation of documents and other information in a bankruptcy proceeding relating to a claim or potential claim, including submission of the claim; disclosure of documents and information to the Trustee and U. S. Trustee; and disclosure of documents and information to the debtor in bankruptcy and the debtor's attorney;

(15) disclosure of information in accordance with the provisions of Article 5, Chapter 55 of Title 38, the 'Omnibus Insurance Fraud and Reporting Immunity Act';

(16) disclosure of information pursuant to Section 31-3-50. The public housing authority making this request is responsible for reimbursing the department for actual costs incurred in supplying the information. This information must be provided in the most useful and economical format possible;

(17) disclosure of information to the Secretary of State about a taxpayer who failed to pay a tax or fee or file a return, where the Secretary of State has the power to dissolve administratively the taxpayer or to revoke the taxpayer's authority to transact business in this State for failure to pay taxes or fees or file returns.

(C) The department shall provide guidelines to persons receiving information pursuant to subsection (B) of this section and shall monitor compliance with this section."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.

Approved the 10th day of June, 1997.