MS HB391

Authorizes the Department of Revenue to enter into binding settlement and closing agreements with taxpayers to compromise and settle tax liabilities, including proposed assessments, final assessments, filed returns, judgments, and applicable interest and penalties.

Requires the Department of Revenue to develop procedures for receiving and considering compromise offers, taking into account factors including doubt about taxpayer liability, doubt about collectability, taxpayer insolvency risk, prior IRS compromises on similar federal taxes, and administrative/litigation costs.

Makes closing agreements and settlement agreements signed by the Commissioner of Revenue final and conclusive, preventing additional assessments or taxpayer legal action except in cases of fraud or material misrepresentation.

Authorizes the Department of Revenue to promulgate rules and regulations under the Mississippi Administrative Procedures Law to implement the compromise and settlement authority.

Brings forward existing Sections 31-19-27 and 31-19-29 regarding doubtful claims and Governor authority to compromise state and local government debts, effective July 1, 2016.