§243-14  Assessments; limitation period;exceptions; extension by agreement.  (a)  In anycase of computation of the tax by the director of taxation, as provided insections 243-12 and 243-13, the amount of the tax shall be assessed against theperson liable therefor, and notice shall be given to the person of the amountof tax so assessed with penalties and interest.  The notice may be given bymail, addressed to the person assessed at the person's last known residence orplace of business.

(b)  The amount of license taxes imposed bythis chapter shall be assessed or levied, or the overpayment, if any, shall becredited within three years after filing of the monthly statement, or withinthree years of the due date prescribed for the filing of the statement,whichever is later.  No proceeding in court without assessment for thecollection of the taxes or the enforcement of the liability shall begin afterthe expiration of the three-year period.  Where the assessment of the taximposed by this chapter has been made within the period of limitationapplicable thereto, the tax may be collected by levy or by a proceeding incourt under chapter 231; provided that the levy is made or the proceeding wasbegun within fifteen years after the assessment of the tax.  For any tax thathas been assessed prior to July 1, 2009, the levy or proceeding shall be barredafter June 30, 2024.

Notwithstanding any otherprovision to the contrary in this section, the limitation on collection afterassessment in this section shall be suspended for the period:

(1)  The taxpayer agrees tosuspend the period;

(2)  The assets of the taxpayerare in control or custody of a court in any proceeding before any court of theUnited States or any state, and for six months thereafter;

(3)  An offer in compromiseunder section 231-3(10) is pending; and

(4)  During which the taxpayeris outside the State if the period of absence is for a continuous period of atleast six months; provided that if at the time of the taxpayer's return to the Statethe period of limitations on collection after assessment would expire beforethe expiration of six months from the date of the taxpayer's return, the periodshall not expire before the expiration of the six months.

As to all tax payments for which a refund or creditis not authorized by this section (including, without prejudice to thegenerality of the foregoing, cases of unconstitutionality), the remediesprovided by appeal or by section 40-35 are exclusive.

(c)  In the case of a false or fraudulentstatement with intent to evade tax or liability, or of a failure to file astatement, the tax or liability may be assessed or levied at any time; providedthat the burden of proof with respect to the issues of falsity or fraud andintent to evade tax shall be upon the State.

(d)  Where, before the expiration of the timeprescribed in this section for the assessment, levy, and collection of the taxor liability, both the department and the taxpayer have consented in writing toits assessment or levy after the expiration date, the tax or liability may beassessed or levied, or the overpayment, if any, may be credited at any timeprior to the expiration of the period agreed upon.  The period agreed upon maybe extended by a subsequent agreement in writing made before the expiration ofthe period previously agreed upon. [L Sp 1941, c 26, §1(12); RL 1945, §5413; RL1955, §123-11; am L Sp 1959 2d, c 1, §16; HRS §243-14; gen ch 1985; am L 1991,c 55, §4; am L 1993, c 257, §4; am L 1994, c 19, §3; am L 2009, c 166, §10]

 

Note

 

  Applicability of L 2009, c 166. L 2009, c 166, §27.