Relating to certain tax and fee collection procedures and taxpayer suits.

Contracts

• Tax Indemnity Agreements (M&A/MSAs): Review agreements where you indemnify a buyer or client for taxes. You must amend these to ensure you retain control over the forum selection (Administrative vs. District Court) to utilize the "Bypass" option.
• Outside Counsel Engagement Letters: Update terms to require counsel to draft the "Notice of Intent to Bypass" with the same level of detail as a court petition, as the law limits future litigation strictly to issues raised in this initial notice.

Hiring/Training

• Tax & Accounting Staff: Train staff on the new "Bypass" workflow. They must identify material facts and legal bases within 60 days of receiving a Managed Audit Letter of Results.
• Accounts Payable: Establish a "Red Alert" protocol for tax judgments. Payment must be cleared within 20 days of a judgment becoming final to avoid the automatic 10% penalty.

Reporting & Record-Keeping

• Evidence Generation: You are no longer required to possess "contemporaneous" records to prove a deduction or exemption. You may now create affidavits or obtain vendor statements *during* the audit to fill documentation gaps.
• New Filing: Create a template for the "Notice of Intent to Bypass Redetermination." This document must assert specific disputed amounts and legal grounds; it is not a generic placeholder.

Fees & Costs

• New Penalty Risk: A mandatory 10% penalty applies if the final amount due is not paid within 20 days of the judgment.
• Litigation Security: If you choose the Bypass route, the Comptroller may require you to post a Surety Bond, Letter of Credit, or Cash Deposit to secure the disputed tax. Ensure your credit facility has capacity for this issuance.