FL H0507

Creates s. 17.45, F.S., authorizing the Chief Financial Officer to reimburse owners of Florida-domiciled small businesses (50 or fewer employees, $4 million or less average annual gross revenue) for attorney fees and costs from the IRS Civil Liability Trust Fund when they prevail in U.S. Tax Court proceedings determined to be retaliatory based on political affiliation, ideology, or beliefs, with applications due within 90 days of the final order.

Creates s. 72.042, F.S., allowing Florida-domiciled taxpayers to bring actions in state circuit court for actual damages, attorney fees, costs, and — in cases involving First, Fourth, or Fifth Amendment violations — punitive damages, when a federal district court finds that an IRS officer, employee, or contractor violated the Civil Rights Act of 1964, the Internal Revenue Code, or specified constitutional amendments during federal tax collection. Actions must be filed within 2 years of accrual.

Amends s. 212.134, F.S., to require third party settlement organizations to submit IRS Form 1099-K information to the Department of Revenue only for participating payees in Florida whose aggregate third party network transactions for goods and services exceed $600, and to create and maintain records identifying whether transactions involve goods or services.

Amends s. 655.045, F.S., to require state financial institutions' quarterly reports to the Financial Services Commission to include the number of IRS inquiries, requests, summons, subpoenas, or other information requests received concerning Florida-domiciled account holders, and requires the Office of Financial Regulation to submit an annual compilation of this data to the Commission and Legislature by January 30 each year.

Effective date is July 1, 2023.