Years ago, we were able to secure a shift in the burden of proof to the Department of Revenue in tax cases for smaller businesses when the dispute did not involve an exemption or credit and where the taxpayer has provided reasonable access to records. This was done at the same time the burden of proof was shifted at the federal level to the Internal Revenue Service.
Fast forward 15 years. The controls put on the language when it first passed out of concern that taxpayers would abuse the privilege of being considered innocent until proven guilty have simply not materialized. So we think it is time the limits be removed and ALL taxpayers should be innocent until proven guilty in all tax cases, including those involving disputed exemptions.
SB 829 (Kraus) was approved today by the Senate Ways and Means Committee and would do just that. We thank Senator Kraus and the Committee for their leadership on this AIM supported issue that helps protect taxpayers from an increasingly aggressive tax collecting agency.