[§244D-8]  Determination of tax, additionalassessments, credit, and refunds.  (a)  As soon as practicable after eachreturn has been filed, the department of taxation shall cause it to be examinedand shall compute and determine the amount of the tax payable thereon.

(b)  If it should appear upon such examinationor thereafter within five years after the filing of the return, or at any timeif no return has been filed, as a result of such examination or as a result ofany examination of the records of the taxpayer or of any other inquiry orinvestigation, that the correct amount of the tax is greater than that shown onthe return, or that any tax imposed by the chapter has not been paid, anassessment of such tax may be made in the manner provided in section235-108(b).  The amount of the tax for the period covered by the assessmentshall not be reduced below the amount determined by an assessment so made,except upon appeal or in a proceeding brought pursuant to section 40-35.

(c)  If the taxpayer has paid or returned withrespect to any month more than the amount determined to be the correct amountof tax for such month, the amount of the tax so returned and any assessment oftax made pursuant to the return may be reduced, and any overpayment of tax may becredited upon the tax imposed by this chapter, or at the election of thetaxpayer, the taxpayer not being delinquent in the payment of any taxes owingto the State, may be refunded in the manner provided in section 231-23(c);provided that no reduction of tax may be made when forbidden by subsection (b)or more than five years after the filing of the return. [L Sp 1984 1st, c 1, ptof §2; gen ch 1985]

 

Revision Note

 

  In subsection (c), "231-23(c)" substituted for"231-23(d)".