Texas Administrative Code

Texas Administrative Code

TITLE 34	PUBLIC FINANCE
PART 1	COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3	TAX ADMINISTRATION
SUBCHAPTER A	GENERAL RULES
RULE §3.8	Informant's Recovery Payment Limitations

(a) No payment may be paid to an informant without the execution of a contract signed by both the informant and the comptroller. The contract must be executed in advance of any investigation or audit activity by the comptroller.

(b) The comptroller may contract for the recovery of state money or property. If another state agency is responsible for the money or property on which the information is provided, the comptroller will not enter into a contract with the informant until a letter of authorization is furnished to the comptroller from the affected agency.

(c) Payments may not be paid until and unless the recovery of the state funds on which the informant's payment is contingent are complete and uncontested. For the purposes of this statute and section, the term "complete" shall mean that moment in time when all reasonable efforts by the state to collect the money or property on which the information was provided have been exhausted.

(d) The amount of the payment is limited to 5.0% of the revenue recovered and applies only to amounts which are due to the state at the date the contract is executed. This limitation applies to the payment to be paid from all claims and causes of action whatsoever as have arisen or may arise in connection with the information provided to the state by the informant.

(e) Payments will not be made if the amount of the recovery is less than $2,000.

(f) Payment will not be made to any informant before the expiration of six months after the recovery of state money or property is complete and uncontested.

(g) The comptroller shall make the final determination as to the amount of state money or property received by the state and the amount of the payment due the informant in accordance with the informant contract. The informant has no authority to appeal the amount of the payment so determined by the comptroller. Should it later be determined that the money or property recovered by the state under a contract entered into under this section is not owed and must be refunded, the state shall have the right to recover from the informant any payments which were made to him erroneously.

(h) The phrase "state money or property" as used in this section shall not include money or property owed to a local governmental entity or metropolitan transit authority. It shall include any statutory penalties or interest due on taxes owed to the state.

Source Note: The provisions of this §3.8 adopted to be effective January 4, 1989, 13 TexReg 6351; amended to be effective March 20, 1990, 15 TexReg 1239; amended to be effective February 5, 1992, 17 TexReg 473.