Sec. 1. 36 MRSA §141, sub-§2, ķA, as amended by PL 2003, c. 451, Pt. HH, §1 and affected by §2, is further amended to read:

A. An assessment may be made within 6 years from the date the return was filed if the tax liability shown on the return, after adjustments necessary to correct any mathematical errors apparent on the face of the return, is less than 1/2 of the tax liability determined by the State Tax Assessor and the additional liability is attributable to information that was required to be reported but was not reported in the return. In determining whether the 50% threshold provided by this paragraph is satisfied, the assessor may not consider any portion of the understated tax liability for which the taxpayer has substantial authority supporting its position.

Sec. 2. Retroactivity. That section of this Act that amends the Maine Revised Statutes, Title 36, section 141, subsection 2, paragraph A applies retroactively to January 1, 2003.

SUMMARY

Public Law 2003, chapter 451 expanded the 6-year statute of limitations on assessments under the tax laws to remove the requirement that the liability be attributable to information not reported by the taxpayer and changed the standard for determining the 50% threshold.

This bill eliminates those changes and restores the language of the provision governing assessments under the tax laws that existed prior to enactment of Public Law 2003, chapter 451.