42-2052. Erroneous advice or misleading statements by the department; abatement of penalties and interest; definitions

A. Notwithstanding sections 42-1123 and 42-1125, no interest or penalty may be assessed on an amount assessed as a deficiency if either:

1. The deficiency assessed is directly attributable to erroneous written advice furnished to the taxpayer by an employee of the department acting in an official capacity in response to a specific request from the taxpayer and not from the taxpayer's failure to provide adequate or accurate information.

2. All of the following are true:

(a) A tax return form or tax ruling prepared by the department contains a statement that, if followed by a taxpayer, would cause the taxpayer to misapply this title or title 43.

(b) The taxpayer reasonably relies on the statement.

(c) The taxpayer's underpayment directly results from this reliance.

B. Each employee of the department, at the time any oral advice is given to any person, shall inform the person that the department is not bound by such oral advice.

C. For purposes of this section:

1. "Tax return form" includes the instructions that the department prepares for use with the tax return form whether the form or instructions are provided on paper or by electronic means.

2. "Tax ruling" means a statement issued by the director and denominated as a tax ruling or a tax procedure.

42-2052. Erroneous advice or misleading statements by the department; abatement of penalties and interest; definitions

A. Notwithstanding sections 42-1123 and 42-1125, no interest or penalty may be assessed on an amount assessed as a deficiency if either:

1. The deficiency assessed is directly attributable to erroneous written advice furnished to the taxpayer by an employee of the department acting in an official capacity in response to a specific request from the taxpayer and not from the taxpayer's failure to provide adequate or accurate information.

2. All of the following are true:

(a) A tax return form or tax ruling prepared by the department contains a statement that, if followed by a taxpayer, would cause the taxpayer to misapply this title or title 43.

(b) The taxpayer reasonably relies on the statement.

(c) The taxpayer's underpayment directly results from this reliance.

B. Each employee of the department, at the time any oral advice is given to any person, shall inform the person that the department is not bound by such oral advice.

C. For purposes of this section:

1. "Tax return form" includes the instructions that the department prepares for use with the tax return form whether the form or instructions are provided on paper or by electronic means.

2. "Tax ruling" means a statement issued by the director and denominated as a tax ruling or a tax procedure.