§346E-6  Assessment of tax upon failure to
make return; limitation period; exceptions; extension by agreement.  (a) 
If any operator fails to make a return as required by this chapter, the
director shall make an estimate of the tax liability of the operator from any
information the director obtains, and according to the estimate so made, assess
the taxes, interest, and penalty due the State from the operator; give notice
of the assessment to the operator; and make demand upon the operator for
payment.  The assessment shall be presumed to be correct until and unless, upon
an appeal duly taken as provided in section 346E-8, the contrary shall be
clearly proved by the operator assessed.  The burden of proof upon the appeal
shall be upon the operator assessed to disprove the correctness of assessment.



(b)  After a return is filed under this chapter
the director shall cause the return to be examined, and may make such further
audits or investigations as the director considers necessary.  If the director
determines that there is a deficiency with respect to the payment of any tax
due under this chapter, the director shall assess the taxes and interest due
the State, give notice of the assessment to the persons liable, and make demand
upon the persons for payment.



(c)  Except as otherwise provided by this
section, the amount of taxes imposed by this chapter shall be assessed or
levied within three years after the annual return was filed, or within three
years of the due date prescribed for the filing of the return, whichever is
later.  No proceeding in court without assessment for the collection of any
such taxes shall be begun after the expiration of the period.  Where the
assessment of the tax imposed by this chapter has been made within the period
of limitation applicable thereto, the tax may be collected by levy or by a
proceeding in court under chapter 231; provided that the levy is made or the
proceeding was begun within fifteen years after the assessment of the tax.  For
any tax that has been assessed prior to July 1, 2009, the levy or proceeding
shall be barred after June 30, 2024.



Notwithstanding any other
provision to the contrary in this section, the limitation on collection after
assessment in this section shall be suspended for the period:



(1)  The taxpayer agrees to
suspend the period;



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



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



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



(d)  In the case of a
false or fraudulent return with intent to evade tax, or a failure to file the
annual return, the tax may be assessed or levied at any time; provided that the
burden of proof with respect to the issues of falsity or fraud and intent to
evade tax shall be upon the State.



(e)  Where, before the expiration of the period
prescribed in subsection (c) for assessments or in section 346E-7 for credits
and refunds, both the department and the operator have consented in writing to
the assessment or levy of the tax after the date fixed by subsection (c) or the
credit or refund of the tax after the date fixed by section 346E-7, the tax may
be assessed or levied, or the overpayment, if any, may be credited or refunded
at any time prior to the expiration of the period agreed upon.  The period so
agreed upon may be extended by subsequent agreements in writing made before the
expiration of the period previously agreed upon. [L 1993, c 315, pt of §1; ree
L 1994, c 230, pt of §1; am L 2009, c 166, §13]



 



Note



 



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