Business groups urge rejection of HB 7270 sections they say would burden tax appeal process; DRS staffing and guidance targeted

Bonnie Stewart, a tax practitioner, told the Finance Committee she and her group oppose sections 1–17 of House Bill 7,270, which would overhaul audit and tax appeal procedures. Stewart said the drafted changes would impose “unbalanced and onerous filing requirements” and create procedural traps that will burden both taxpayers and the Department of Revenue Services (DRS). She recommended rejecting the sections as written and urged the committee to adopt narrower technical fixes — for example, modified language for out‑of‑state municipal bond treatment — and stronger written guidance from DRS.

During questioning, Stewart and other tax‑practice witnesses said lengthy appeal timelines are driven in their view by DRS staffing constraints and inconsistent guidance. Stewart described cases where taxpayers have waited years for decisions and urged statutory time limits to force action, citing models used in other states that give DRS a year to issue a decision before a taxpayer may require a ruling. DRS representatives were not present, but several lawmakers noted general concerns about server staffing and the need for DRS to re‑engage with stakeholders.

Why it matters: Tax‑appeal procedures affect taxpayers’ ability to resolve audits and affect collections for the General Fund. Practitioners said changes should emphasize timely decisions, clearer DRS guidance and administrative coordination rather than sweeping procedural changes that might create new compliance traps.