AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- RHODE ISLAND BUSINESS CORPORATION ACT

This bill updates Rhode Island's tax laws for corporations, partnerships, and limited liability companies by clarifying how long the state has to assess unpaid taxes. It establishes a standard three-year window for tax assessments but allows for longer periods in cases of fraud, unfiled returns, or significant omissions of income. The legislation also sets a ten-year maximum limit for issuing tax deficiency notices and starting collection actions, with specific exceptions for bankruptcy and receivership situations. Additionally, the bill requires businesses selling off major assets outside of normal operations to notify the tax administrator five days in advance to ensure any owed taxes are paid. These changes aim to create clearer timelines and procedures for both the tax division and business entities regarding tax liabilities and asset transfers.