Rhode Island bill caps delinquent tax interest at 12% and sets audit limits

Original title: AN ACT RELATING TO TAXATION -- STATE TAX OFFICIALS (Caps delinquent tax interest rate at 12%. Prohibits audits beyond 3 years from date of tax filing, 7 years for fraudulent filings, and in no event beyond 10 years from date of filing or required filing date, whichever is later.)

Last action · April 8, 2026: Committee recommended measure be held for further studySponsors: Shallcross Smith and 8 others

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What This Bill Proposed

Rhode Island legislation caps the interest rate on es at 12 percent per year and limits standard tax audits to three years from the filing date. The measure restricts audits for fraudulent filings to seven years and sets a hard ten-year maximum limit from the original filing or required filing date.

Why it matters

Taxpayers face a strict statutory timeline beyond which the state cannot examine past returns, and the maximum penalty interest charged on overdue balances is legally capped.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Taxpayers

Taxpayers are subject to a capped delinquent interest rate of 12% and protected by strict time limits on how far back state tax audits can reach.

Directly affected

State Tax Officials

State tax officials are prohibited from conducting standard audits past 3 years and fraudulent audits past 7 years, with a hard 10-year ceiling.

Key Facts

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Frequently Asked Questions

How long does the state have to conduct a standard tax audit?

Standard audits are prohibited beyond 3 years from the date of tax filing.

What is the maximum time limit for auditing fraudulent tax filings?

Audits for fraudulent filings are limited to 7 years, with an absolute maximum of 10 years from the filing date or required filing date.

What else do you want to know?

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Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

3 actions

Apr 8, 2026
Committee recommended measure be held for further study
Apr 3, 2026
Scheduled for hearing and/or consideration (04/08/2026)
Feb 12, 2026Introduced
Introduced, referred to House Finance

Version history

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