Florida Senate - 2011                                    SB 1764
       
       
       
       By Senator Rich
       
       
       
       
       34-01239-11                                           20111764__
    1                        A bill to be entitled                      
    2         An act relating to corporate income taxes; amending s.
    3         220.13, F.S.; limiting deductions of certain
    4         intangible expenses, licensing fees, and management
    5         fees paid by a taxpayer to a related entity; creating
    6         exceptions to the limitations on deductions; requiring
    7         the adjustment of the income of a related entity under
    8         certain circumstances; limiting the number of times
    9         certain items may be added or subtracted from taxable
   10         income; specifying information relating to
   11         transactions with related entities which must be
   12         contained in a corporate income tax return; providing
   13         that the failure of a taxpayer to add certain amounts
   14         to a taxpayer’s income or to provide complete
   15         information in a tax return is negligence for which a
   16         penalty may be imposed; authorizing the Department of
   17         Revenue to adopt rules; specifying the applicability
   18         of the act; providing an effective date.
   19  
   20  Be It Enacted by the Legislature of the State of Florida:
   21  
   22         Section 1. Section 220.13, Florida Statutes, is amended to
   23  read:
   24         220.13 “Adjusted federal income” defined; transactions with
   25  related entities.—
   26         (1) ADJUSTMENTS TO TAXABLE INCOME.—The term “adjusted
   27  federal income” means an amount equal to the taxpayer’s taxable
   28  income as defined in subsection (2), or such taxable income of
   29  more than one taxpayer as provided in s. 220.131, for the
   30  taxable year, adjusted as follows:
   31         (a) Additions.—There shall be added to such taxable income:
   32         1. The amount of any tax upon or measured by income,
   33  excluding taxes based on gross receipts or revenues, paid or
   34  accrued as a liability to the District of Columbia or any state
   35  of the United States which is deductible from gross income in
   36  the computation of taxable income for the taxable year.
   37         2. The amount of interest which is excluded from taxable
   38  income under s. 103(a) of the Internal Revenue Code or any other
   39  federal law, less the associated expenses disallowed in the
   40  computation of taxable income under s. 265 of the Internal
   41  Revenue Code or any other law, excluding 60 percent of any
   42  amounts included in alternative minimum taxable income, as
   43  defined in s. 55(b)(2) of the Internal Revenue Code, if the
   44  taxpayer pays tax under s. 220.11(3).
   45         3. In the case of a regulated investment company or real
   46  estate investment trust, an amount equal to the excess of the
   47  net long-term capital gain for the taxable year over the amount
   48  of the capital gain dividends attributable to the taxable year.
   49         4. That portion of the wages or salaries paid or incurred
   50  for the taxable year which is equal to the amount of the credit
   51  allowable for the taxable year under s. 220.181. This
   52  subparagraph shall expire on the date specified in s. 290.016
   53  for the expiration of the Florida Enterprise Zone Act.
   54         5. That portion of the ad valorem school taxes paid or
   55  incurred for the taxable year which is equal to the amount of
   56  the credit allowable for the taxable year under s. 220.182. This
   57  subparagraph shall expire on the date specified in s. 290.016
   58  for the expiration of the Florida Enterprise Zone Act.
   59         6. The amount of emergency excise tax paid or accrued as a
   60  liability to this state under chapter 221 which tax is
   61  deductible from gross income in the computation of taxable
   62  income for the taxable year.
   63         7. That portion of assessments to fund a guaranty
   64  association incurred for the taxable year which is equal to the
   65  amount of the credit allowable for the taxable year.
   66         8. In the case of a nonprofit corporation that which holds
   67  a pari-mutuel permit and which is exempt from federal income tax
   68  as a farmers’ cooperative, an amount equal to the excess of the
   69  gross income attributable to the pari-mutuel operations over the
   70  attributable expenses for the taxable year.
   71         9. The amount taken as a credit for the taxable year under
   72  s. 220.1895.
   73         10. Up to nine percent of the eligible basis of any
   74  designated project which is equal to the credit allowable for
   75  the taxable year under s. 220.185.
   76         11. The amount taken as a credit for the taxable year under
   77  s. 220.1875. The addition in this subparagraph is intended to
   78  ensure that the same amount is not allowed for the tax purposes
   79  of this state as both a deduction from income and a credit
   80  against the tax. This addition is not intended to result in
   81  adding the same expense back to income more than once.
   82         12. The amount taken as a credit for the taxable year under
   83  s. 220.192.
   84         13. The amount taken as a credit for the taxable year under
   85  s. 220.193.
   86         14. Any portion of a qualified investment, as defined in s.
   87  288.9913, which is claimed as a deduction by the taxpayer and
   88  taken as a credit against income tax pursuant to s. 288.9916.
   89         15. The costs to acquire a tax credit pursuant to s.
   90  288.1254(5) which that are deducted from or otherwise reduce
   91  federal taxable income for the taxable year.
   92         (b) Subtractions.—
   93         1. There shall be subtracted from such taxable income:
   94         a. The net operating loss deduction allowable for federal
   95  income tax purposes under s. 172 of the Internal Revenue Code
   96  for the taxable year,
   97         b. The net capital loss allowable for federal income tax
   98  purposes under s. 1212 of the Internal Revenue Code for the
   99  taxable year,
  100         c. The excess charitable contribution deduction allowable
  101  for federal income tax purposes under s. 170(d)(2) of the
  102  Internal Revenue Code for the taxable year, and
  103         d. The excess contributions deductions allowable for
  104  federal income tax purposes under s. 404 of the Internal Revenue
  105  Code for the taxable year.
  106  
  107  However, a net operating loss and a capital loss shall never be
  108  carried back as a deduction to a prior taxable year, but all
  109  deductions attributable to such losses shall be deemed net
  110  operating loss carryovers and capital loss carryovers,
  111  respectively, and treated in the same manner, to the same
  112  extent, and for the same time periods as are prescribed for such
  113  carryovers in ss. 172 and 1212, respectively, of the Internal
  114  Revenue Code.
  115         2. There shall be subtracted from such taxable income any
  116  amount to the extent included therein the following:
  117         a. Dividends treated as received from sources without the
  118  United States, as determined under s. 862 of the Internal
  119  Revenue Code.
  120         b. All amounts included in taxable income under s. 78 or s.
  121  951 of the Internal Revenue Code.
  122  
  123  However, as to any amount subtracted under this subparagraph,
  124  there shall be added to such taxable income all expenses
  125  deducted on the taxpayer’s return for the taxable year which are
  126  attributable, directly or indirectly, to such subtracted amount.
  127  Further, no amount shall be subtracted with respect to dividends
  128  paid or deemed paid by a Domestic International Sales
  129  Corporation.
  130         3. In computing “adjusted federal income” for taxable years
  131  beginning after December 31, 1976, there shall be allowed as a
  132  deduction the amount of wages and salaries paid or incurred
  133  within this state for the taxable year for which no deduction is
  134  allowed pursuant to s. 280C(a) of the Internal Revenue Code
  135  (relating to credit for employment of certain new employees).
  136         4. There shall be subtracted from such taxable income any
  137  amount of nonbusiness income included therein.
  138         5. There shall be subtracted any amount of taxes of foreign
  139  countries allowable as credits for taxable years beginning on or
  140  after September 1, 1985, under s. 901 of the Internal Revenue
  141  Code to any corporation that which derived less than 20 percent
  142  of its gross income or loss for its taxable year ended in 1984
  143  from sources within the United States, as described in s.
  144  861(a)(2)(A) of the Internal Revenue Code, not including credits
  145  allowed under ss. 902 and 960 of the Internal Revenue Code,
  146  withholding taxes on dividends within the meaning of sub
  147  subparagraph 2.a., and withholding taxes on royalties, interest,
  148  technical service fees, and capital gains.
  149         6. Notwithstanding any other provision of this code, except
  150  with respect to amounts subtracted pursuant to subparagraphs 1.
  151  and 3., any increment of any apportionment factor which is
  152  directly related to an increment of gross receipts or income
  153  which is deducted, subtracted, or otherwise excluded in
  154  determining adjusted federal income shall be excluded from both
  155  the numerator and denominator of such apportionment factor.
  156  Further, all valuations made for apportionment factor purposes
  157  shall be made on a basis consistent with the taxpayer’s method
  158  of accounting for federal income tax purposes.
  159         (c) Installment sales occurring after October 19, 1980.—
  160         1. In the case of any disposition made after October 19,
  161  1980, the income from an installment sale shall be taken into
  162  account for the purposes of this code in the same manner that
  163  such income is taken into account for federal income tax
  164  purposes.
  165         2. Any taxpayer who regularly sells or otherwise disposes
  166  of personal property on the installment plan and reports the
  167  income therefrom on the installment method for federal income
  168  tax purposes under s. 453(a) of the Internal Revenue Code shall
  169  report such income in the same manner under this code.
  170         (d) Nonallowable deductions.—A deduction for net operating
  171  losses, net capital losses, or excess contributions deductions
  172  under ss. 170(d)(2), 172, 1212, and 404 of the Internal Revenue
  173  Code which has been allowed in a prior taxable year for Florida
  174  tax purposes shall not be allowed for Florida tax purposes,
  175  notwithstanding the fact that such deduction has not been fully
  176  utilized for federal tax purposes.
  177         (e) Adjustments related to the Federal Economic Stimulus
  178  Act of 2008 and the American Recovery and Reinvestment Act of
  179  2009.—Taxpayers shall be required to make the adjustments
  180  prescribed in this paragraph for Florida tax purposes in
  181  relation to certain tax benefits received pursuant to the
  182  Economic Stimulus Act of 2008 and the American Recovery and
  183  Reinvestment Act of 2009.
  184         1. There shall be added to such taxable income an amount
  185  equal to 100 percent of any amount deducted for federal income
  186  tax purposes as bonus depreciation for the taxable year pursuant
  187  to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
  188  amended by s. 103 of Pub. L. No. 110-185 and s. 1201 of Pub. L.
  189  No. 111-5, for property placed in service after December 31,
  190  2007, and before January 1, 2010. For the taxable year and for
  191  each of the 6 subsequent taxable years, there shall be
  192  subtracted from such taxable income an amount equal to one
  193  seventh of the amount by which taxable income was increased
  194  pursuant to this subparagraph, notwithstanding any sale or other
  195  disposition of the property that is the subject of the
  196  adjustments and regardless of whether such property remains in
  197  service in the hands of the taxpayer.
  198         2. There shall be added to such taxable income an amount
  199  equal to 100 percent of any amount in excess of $128,000
  200  deducted for federal income tax purposes for the taxable year
  201  pursuant to s. 179 of the Internal Revenue Code of 1986, as
  202  amended by s. 102 of Pub. L. No. 110-185 and s. 1202 of Pub. L.
  203  No. 111-5, for taxable years beginning after December 31, 2007,
  204  and before January 1, 2010. For the taxable year and for each of
  205  the 6 subsequent taxable years, there shall be subtracted from
  206  such taxable income one-seventh of the amount by which taxable
  207  income was increased pursuant to this subparagraph,
  208  notwithstanding any sale or other disposition of the property
  209  that is the subject of the adjustments and regardless of whether
  210  such property remains in service in the hands of the taxpayer.
  211         3. There shall be added to such taxable income an amount
  212  equal to the amount of deferred income not included in such
  213  taxable income pursuant to s. 108(i)(1) of the Internal Revenue
  214  Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
  215  shall be subtracted from such taxable income an amount equal to
  216  the amount of deferred income included in such taxable income
  217  pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
  218  as amended by s. 1231 of Pub. L. No. 111-5.
  219         4. Subtractions available under this paragraph may be
  220  transferred to the surviving or acquiring entity following a
  221  merger or acquisition and used in the same manner and with the
  222  same limitations as specified by this paragraph.
  223         5. The additions and subtractions specified in this
  224  paragraph are intended to adjust taxable income for Florida tax
  225  purposes, and, notwithstanding any other provision of this code,
  226  such additions and subtractions shall be permitted to change a
  227  taxpayer’s net operating loss for Florida tax purposes.
  228         (2) DEFINITIONS.—For purposes of this section, a taxpayer’s
  229  taxable income for the taxable year means taxable income as
  230  defined in s. 63 of the Internal Revenue Code and properly
  231  reportable for federal income tax purposes for the taxable year,
  232  but subject to the limitations set forth in paragraph (1)(b)
  233  with respect to the deductions provided by ss. 172 (relating to
  234  net operating losses), 170(d)(2) (relating to excess charitable
  235  contributions), 404(a)(1)(D) (relating to excess pension trust
  236  contributions), 404(a)(3)(A) and (B) (to the extent relating to
  237  excess stock bonus and profit-sharing trust contributions), and
  238  1212 (relating to capital losses) of the Internal Revenue Code,
  239  except that, subject to the same limitations, the term:
  240         (a) “Taxable income,” in the case of a life insurance
  241  company subject to the tax imposed by s. 801 of the Internal
  242  Revenue Code, means life insurance company taxable income;
  243  however, for purposes of this code, the total of any amounts
  244  subject to tax under s. 815(a)(2) of the Internal Revenue Code
  245  pursuant to s. 801(c) of the Internal Revenue Code shall not
  246  exceed, cumulatively, the total of any amounts determined under
  247  s. 815(c)(2) of the Internal Revenue Code of 1954, as amended,
  248  from January 1, 1972, to December 31, 1983;
  249         (b) “Taxable income,” in the case of an insurance company
  250  subject to the tax imposed by s. 831(b) of the Internal Revenue
  251  Code, means taxable investment income;
  252         (c) “Taxable income,” in the case of an insurance company
  253  subject to the tax imposed by s. 831(a) of the Internal Revenue
  254  Code, means insurance company taxable income;
  255         (d) “Taxable income,” in the case of a regulated investment
  256  company subject to the tax imposed by s. 852 of the Internal
  257  Revenue Code, means investment company taxable income;
  258         (e) “Taxable income,” in the case of a real estate
  259  investment trust subject to the tax imposed by s. 857 of the
  260  Internal Revenue Code, means the income subject to tax, computed
  261  as provided in s. 857 of the Internal Revenue Code;
  262         (f) “Taxable income,” in the case of a corporation that
  263  which is a member of an affiliated group of corporations filing
  264  a consolidated income tax return for the taxable year for
  265  federal income tax purposes, means taxable income of such
  266  corporation for federal income tax purposes as if such
  267  corporation had filed a separate federal income tax return for
  268  the taxable year and each preceding taxable year for which it
  269  was a member of an affiliated group, unless a consolidated
  270  return for the taxpayer and others is required or elected under
  271  s. 220.131;
  272         (g) “Taxable income,” in the case of a cooperative
  273  corporation or association, means the taxable income of such
  274  organization determined in accordance with the provisions of ss.
  275  1381-1388 of the Internal Revenue Code;
  276         (h) “Taxable income,” in the case of an organization that
  277  which is exempt from the federal income tax by reason of s.
  278  501(a) of the Internal Revenue Code, means its unrelated
  279  business taxable income as determined under s. 512 of the
  280  Internal Revenue Code;
  281         (i) “Taxable income,” in the case of a corporation for
  282  which there is in effect for the taxable year an election under
  283  s. 1362(a) of the Internal Revenue Code, means the amounts
  284  subject to tax under s. 1374 or s. 1375 of the Internal Revenue
  285  Code for each taxable year;
  286         (j) “Taxable income,” in the case of a limited liability
  287  company, other than a limited liability company classified as a
  288  partnership for federal income tax purposes, as defined in and
  289  organized pursuant to chapter 608 or qualified to do business in
  290  this state as a foreign limited liability company or other than
  291  a similar limited liability company classified as a partnership
  292  for federal income tax purposes and created as an artificial
  293  entity pursuant to the statutes of the United States or any
  294  other state, territory, possession, or jurisdiction, if such
  295  limited liability company or similar entity is taxable as a
  296  corporation for federal income tax purposes, means taxable
  297  income determined as if such limited liability company were
  298  required to file or had filed a federal corporate income tax
  299  return under the Internal Revenue Code;
  300         (k) “Taxable income,” in the case of a taxpayer liable for
  301  the alternative minimum tax as defined in s. 55 of the Internal
  302  Revenue Code, means the alternative minimum taxable income as
  303  defined in s. 55(b)(2) of the Internal Revenue Code, less the
  304  exemption amount computed under s. 55(d) of the Internal Revenue
  305  Code. A taxpayer is not liable for the alternative minimum tax
  306  unless the taxpayer’s federal tax return, or related federal
  307  consolidated tax return, if included in a consolidated return
  308  for federal tax purposes, reflect a liability on the return
  309  filed for the alternative minimum tax as defined in s. 55(b)(2)
  310  of the Internal Revenue Code;
  311         (l) “Taxable income,” in the case of a taxpayer whose
  312  taxable income is not otherwise defined in this subsection,
  313  means the sum of amounts to which a tax rate specified in s. 11
  314  of the Internal Revenue Code plus the amount to which a tax rate
  315  specified in s. 1201(a)(2) of the Internal Revenue Code are
  316  applied for federal income tax purposes.
  317         (3) LIMITATIONS ON DEDUCTIONS OF INTANGIBLE EXPENSES AND
  318  FEES WITH A RELATED ENTITY.—
  319         (a)Definitions.As used in this subsection, the term:
  320         1.“Intangible expenses” means the following amounts to the
  321  extent that these amounts are allowed as deductions in
  322  determining federal taxable income under the Internal Revenue
  323  Code before the application of any net operating loss deduction
  324  and special deductions for the taxable year:
  325         a. Expenses, losses, and costs directly or indirectly for,
  326  related to, or in association with the acquisition, use,
  327  maintenance, management, ownership, sale, exchange, or other
  328  disposition of intangible property;
  329         b. Royalty, patent, technical, trademark, and copyright
  330  fees;
  331         c. Licensing fees; or
  332         d.Other substantially similar expenses and costs,
  333  including, but not limited to, interest and losses from
  334  factoring transactions.
  335         2.“Intangible property” means patents, patent
  336  applications, trade names, trademarks, service marks,
  337  copyrights, trade secrets, and substantially similar types of
  338  intangible assets.
  339         3.“Interest expenses” means amounts that are allowed as
  340  deductions under s. 163 of the Internal Revenue Code in
  341  determining federal taxable income before the application of any
  342  net operating loss deductions and special deductions for the
  343  taxable year.
  344         4.“Management fees” means expenses and costs paid for
  345  services, including, but not limited to, management overhead,
  346  management supervision, accounts receivable and payable,
  347  employee benefit plans, insurance, legal, payroll, data
  348  processing, purchasing, tax, financial and securities, billing,
  349  accounting, reporting and compliance, or similar services, only
  350  to the extent that the amounts are allowed as a deduction, cost,
  351  or expense in determining taxable net income under the Internal
  352  Revenue Code before the application of any net operating loss
  353  deduction and special deductions for the taxable year.
  354         5. “Recipient” means a related entity that is paid an item
  355  of income that corresponds to an intangible expense, interest
  356  expense, or management fee.
  357         6. “Related entity” means an artificial entity that would
  358  be a member of the taxpayer’s affiliated group under s. 1504 of
  359  the Internal Revenue Code during all or any portion of the
  360  taxable year using an ownership percentage of 50 percent instead
  361  of 80 percent. The term includes any entity, other than a
  362  natural person, which would be included in the affiliated group
  363  based upon a 50 percent ownership percentage if the entity was
  364  organized as a corporation.
  365         (b)Additions.Except as provided in paragraph (c), in
  366  determining its adjusted federal income under this section and
  367  s. 220.131, a corporation subject to tax shall add to its
  368  taxable income:
  369         1. Intangible expenses;
  370         2. Interest expenses; and
  371         3. Management fees,
  372  
  373  paid, accrued, or incurred directly or indirectly with a related
  374  entity. For income received from a pass-through entity or a
  375  disregarded entity, the corporation is deemed to have received
  376  its share of the income and the expenses of the pass-through
  377  entity or disregarded entity for purposes of this subsection.
  378         (c) Special exceptions.Except as provided in paragraph
  379  (d), the addition of intangible expenses, interest expenses, or
  380  management fees otherwise required in a taxable year under this
  381  subsection for a specific transaction with a related entity is
  382  not required if one of the following apply:
  383         1.The taxpayer and the recipient are included in the same
  384  Florida consolidated tax return filed under s. 220.131 for the
  385  taxable year.
  386         2. The taxpayer and the executive director or his or her
  387  designee agree in writing to alternative computations or
  388  adjustments. The executive director or his or her designee may
  389  enter into such an agreement only if the taxpayer has clearly
  390  established to the satisfaction of the executive director or his
  391  or her designee that the addition is unreasonable and that the
  392  proposed alternative method of determining the measure of the
  393  tax accurately reflects the activity, business, income, and
  394  capital of the taxpayers within this state. The agreement must
  395  be signed by the executive director or his or her designee. The
  396  term of the agreement may not exceed 4 years.
  397         3.The taxpayer makes a disclosure on its return and
  398  establishes all of the following by clear and convincing
  399  evidence:
  400         a. The recipient was subject to an income tax or franchise
  401  tax measured in whole or part by net income in its state or
  402  country of commercial domicile, or in the state of commercial
  403  domicile in which an intangible is required by contract to be
  404  held, and
  405         (I) The tax base for the income or franchise tax included
  406  the intangible expense, management fee, or interest expense
  407  paid, accrued, or incurred by the taxpayer;
  408         (II) The aggregate effective tax rate applied was at least
  409  5.5 percent;
  410         (III) If the recipient is a foreign corporation, the
  411  foreign nation has a comprehensive income tax treaty with the
  412  United States; and
  413         (IV) The recipient did not receive a credit, exemption, or
  414  exclusion for the net income from its intangible income,
  415  management fee income, or interest income, or the credit,
  416  exemption, or exclusion received was 75 percent or less of the
  417  net income.
  418         b. The transaction did not have Florida tax avoidance as a
  419  principle purpose.
  420         c. The recipient regularly engages in the same types of
  421  transactions with third parties.
  422         d. The transaction was made at a commercially reasonable
  423  rate and at arms-length terms similar to those with third
  424  parties.
  425         4. The taxpayer makes a disclosure on its return and
  426  establishes all of the following by clear and convincing
  427  evidence:
  428         a. The related entity, during the same taxable year,
  429  directly or indirectly incurred and paid the amount of the
  430  intangible expense, interest expense, and management fee to a
  431  person or entity that is not a related entity.
  432         b.The transaction was done for a valid business purpose.
  433         c.The payments were limited to reimbursement of the
  434  amounts paid to a person or entity that is not a related entity.
  435         d.The unrelated person or entity regularly engages in the
  436  same types of transactions with third parties on a substantial
  437  basis.
  438         (d) Limitation on special exceptions.The exceptions
  439  described in subparagraphs (c)3. and (c)4. do not apply to:
  440         1. Interest paid by a taxpayer in connection with a debt
  441  incurred to acquire the taxpayer’s or a related entity’s assets
  442  or stock in a transaction referenced in s. 368 of the Internal
  443  Revenue Code. For purposes of this subparagraph, acquisition
  444  interest paid by a taxpayer to a person or entity that is not a
  445  related entity is deemed to be made to a related entity.
  446         2. Intangible property acquired directly or indirectly from
  447  the taxpayer or from a related entity.
  448         3. Those instances in which the related entity is primarily
  449  engaged in managing, acquiring, or maintaining intangible
  450  property or related-party financing and a primary purpose of the
  451  transaction was the avoidance of Florida tax.
  452         4. Those instances in which the taxpayer files with the
  453  related entity or the related entity files with another related
  454  entity an income tax return or report and the return or report
  455  is due because of the imposition of a tax on or measured by
  456  income or the income tax return or report results in the
  457  elimination of the tax effects from transactions directly or
  458  indirectly between the taxpayer and the related member.
  459         (e) Adjustment to the taxable income of a related entity.
  460  To the extent that a taxpayer is required to make an adjustment
  461  under paragraph (b) or paragraph (c) for a specific related
  462  entity transaction, the corresponding related entity must make a
  463  corresponding subtraction to its taxable income if the income of
  464  the related entity is subject to tax in this state.
  465         (f)Adjustment of net operating loss carryover.The amount
  466  of a taxpayer’s net operating loss carryover from tax years
  467  ending before December 31, 2011, to a tax year ending on or
  468  after December 31, 2011, must be adjusted to account for the
  469  addition of intangible expenses, interest expenses, and
  470  management fees under this subsection. However, this calculation
  471  may not increase the amount of a net operating loss carryover.
  472         (g)Limitation on additions to income.—This subsection does
  473  not require a taxpayer to add to its Florida taxable income more
  474  than once any amount of interest expenses, intangible expenses,
  475  or management fees that the taxpayer pays, accrues, or incurs to
  476  a related entity.
  477         (h)Limitations on subtractions to income.—This subsection
  478  does not allow any item to be subtracted from adjusted federal
  479  income more than once a subtraction for any item that is
  480  excluded from income, or any item to be included in the adjusted
  481  federal income of more than one taxpayer.
  482         (i)Authority to make adjustments.—This subsection does not
  483  limit or negate the authority of the executive director to make
  484  adjustments under s. 220.131(2), s. 220.44, or s. 220.152.
  485         (j) Required information for a return.Each taxpayer shall
  486  provide the following information to the department along with
  487  its tax return regarding each related entity transaction:
  488         1. The name of the recipient;
  489         2.The state or country of domicile of the recipient;
  490         3. The amount paid to the recipient; and
  491         4. A complete description of the payment made to the
  492  recipient.
  493         (k) Negligence.—The failure of a taxpayer to add to its
  494  income an amount paid directly or indirectly to a related party
  495  or to provide complete information along with the tax return is
  496  evidence of negligence within the meaning of s. 220.803(1).
  497         (l) Rulemaking.—The department may adopt rules and forms
  498  necessary to administer this subsection, including, but not
  499  limited to, forms and rules for reporting transactions with
  500  related entities.
  501         Section 2. This act shall take effect upon becoming a law,
  502  and applies to tax years ending on or after December 31, 2011.