42-2062. Abatement of penalties;
definition
A. If a taxpayer has been assessed a penalty pursuant to section 42-1107, 42-1125,
43-581 or 43-582, the department, on written application by the taxpayer, shall abate the
penalty if it determines that the conduct, or lack of conduct, that caused the penalty to
be imposed was due to reasonable cause and not due to wilful neglect.
B. If, before an assessment is issued, a taxpayer applies in writing requesting
waiver of a penalty that may be assessed pursuant to section 42-1107, 42-1125, 43-581 or
43-582, the department shall not assess that penalty if it determines that the conduct,
or lack of conduct, that would cause the imposition of the penalty was due to reasonable
cause and not due to wilful neglect.
C. For the purpose of this section, and only as applied to the taxes imposed by
chapter 5, articles 1 through 6 and chapter 6, article 3 of this title, "reasonable
cause" includes situations in which the taxpayer had a reasonable basis to believe that
the tax did not apply to the business activity or the storage, use or consumption of the
taxpayer's tangible personal property in this state.
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