ASSESSMENTS,REFUNDS, AND RECORDS

 

§237-36  Erroneous returns, disallowance ofexemption, payment.  If any return made is erroneous, or is so deficient asnot to disclose the full tax liability, or if the taxpayer, in the taxpayer'sreturn, shall disclaim liability for the tax on any gross income or grossproceeds of sales liable to the tax, or if the taxpayer shall make applicationunder section 237-23 for an exemption to which the taxpayer is not entitled,the department of taxation shall correct the error or assess the proper amountof taxes.  If such recomputation results in an additional tax liability, or ifthe department proposes to assess any gross income or gross proceeds of salesby reason of the disallowance of an exemption claimed in the return or forwhich application has been filed, the department shall first give notice to thetaxpayer of the proposed assessment, and the taxpayer shall thereupon have anopportunity within thirty days to confer with the department.  After theexpiration of thirty days from the notification the department shall assess thegross income or gross proceeds of sales of the taxpayer or any portion thereofwhich the department believes has not theretofore been assessed, and shall givenotice to the taxpayer of the amount of the tax, and the amount thereof shallbe paid within twenty days after the date the notice was mailed, properlyaddressed to the taxpayer at the taxpayer's last known address or place ofbusiness.

No preliminary notice shall be necessary wherethe amount of the tax is calculated by the department from gross incomereturned by the taxpayer as subject to the tax (unless the taxpayer shall haveclaimed that the applicable rate of tax is lower than the rate of tax appliedby the department); in such case the tax shall be due and payable on the tenthday after the date the statement was mailed.  In a case of disallowance of anexemption for which application was made under section 237-23 the department,before making an assessment, may require the applicant, by demand made upon theapplicant by mail or delivery thereof to the address shown in the application,to file information returns as to the applicant's gross income or grossproceeds of sales within such reasonable time as the department may allow, andin the event of failure, neglect, or refusal to comply with the demand, thedepartment shall make an assessment under section 237-38, in lieu of thissection. [L 1935, c 141, §7(1); am L 1941, c 265, §5; RL 1945, §5467; am L1945, c 253, §9; am L 1947, c 111, §10; am L 1953, c 125, pt of §10; RL 1955,§117-31; am L Sp 1959 2d, c 1, §16; HRS §237-36; gen ch 1985]