43-107. Nonconformity in application of internal revenue code; abatement of penalties and interest; definitions

A. Notwithstanding sections 42-1123 and 42-1125, no interest or penalty may be assessed on a nonconformity deficiency if all of the following are true for a taxable year:

1. The taxpayer filed a return and paid the taxes due, relying on the department's published forms and instructions.

2. Conformity does not occur.

3. The department supplements its published forms and instructions related to nonconformity and requires the taxpayer to file an amended return.

4. By the extended due date of the next taxable year's return, the taxpayer amends its return to report the nonconformity deficiency and pays the additional tax in the manner prescribed by the department.

B. Notwithstanding section 42-1123, the department shall not pay interest on refunds resulting from an amended return related to nonconformity unless the refund is paid more than sixty days after the due date set forth in subsection A, paragraph 4 of this section or filing date, whichever is later.

C. For the purposes of this section:

1. " Conformity" means an amendment to section 43-105 that results in adoption of the definition of the internal revenue code for the taxable year.

2. " Nonconformity" means either:

(a) Conformity plus another amendment to this title that does not conform to specific provisions of the internal revenue code as defined in section 43-105 for the taxable year.

(b) No amendment to section 43-105 for the taxable year.