§ 44-14-19.2. Limitations on assessment. (a) General. Except as provided in this section the amount of the excise tax shall be assessed within three (3) years after the return was filed (whether or not the return was filed on or after the prescribed date). For this purpose, a tax return filed before the due date shall be considered as filed on the due date.

(b) Exceptions.

(1) The tax may be assessed at any time if:

(i) No return is filed.

(ii) A false or fraudulent return is filed with intent to avoid tax.

(2) Where, before the expiration of the prescribed time in this section for the assessment of tax, or before the time as extended under this section, both the tax administrator and the taxpayer have consented, in writing, to its assessment after that time. The tax may be assessed at any time prior to the expiration of the agreed upon period.

(3) An erroneous refund shall be considered to create an underpayment of tax on the date made. An assessment of a deficiency arising out of an erroneous refund may be made at any time within three (3) years thereafter, or at any time if it appears that any part of the refund was induced by fraud or misrepresentation of a material fact.

(c) Notwithstanding the foregoing provisions of this section, the tax may be assessed at any time within six (6) years after the return was filed if a taxpayer omits from its income an amount properly includable in the return which is in excess of twenty-five percent (25%) of the amount of income stated in the return. For this purpose there shall not be taken into account any amount which is omitted in the return if the amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the tax administrator of the nature and amount of the item.

(d) The running of the period of limitations on assessment or collection of the tax or other amount (or of a transferee's liability) shall, after the mailing of a notice of deficiency, be suspended for any period during which the tax administrator is prohibited from making the assessment or from collecting by levy, and for sixty (60) days after this.

(e) No period of limitations specified in any other law shall apply to the assessment or collection of taxes due under this chapter.

History of Section. (P.L. 1997, ch. 106, § 2.)