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.