Rhode Island: Ten-Year Statute of Limitations Enacted

Recently, legislation (Senate Bill 5590) was signed into law in Rhode Island that adopts a ten-year statute of limitations for purposes of sales and use, corporate income, personal income, and estate taxes. The bill will not extend any statute of limitations that is currently open, but will apply to state tax liabilities that become final, due and payable after July 1, 2019. Specifically, per the bill, under no circumstances may the administrator issue any notice of deficiency determination due and payable more than ten years after the date upon which the return was filed or due to be filed. The tax administrator is also prohibited from commencing any collection action for any tax due and payable unless the collection action is commenced within ten years after a notice of deficiency determination became a final collectible assessment. Both of the ten- year periods are tolled for any period of time the taxpayer is in federal bankruptcy or state receivership proceedings.  Please stay tuned to TWIST for future legislative updates.