§ 9273. Assessment of additional tax

(a) If any operator shall fail to make a return as herein required, the Commissioner may make an estimate of the tax liability of the operator from any information he or she may obtain, and according to such estimate so made by him or her, assess the taxes, interest, and penalty due the State from such person, give notice of such assessment to the person and make demand upon him or her for payment.

(b) After a return is filed under the provisions of this chapter, the Commissioner shall cause the same to be examined, and may make such further audits or investigation as he or she may deem necessary and if he or she shall determine that there is a deficiency with respect to the payment of any tax due under this chapter, he or she shall assess the taxes and interest due the State, give notice of such assessment to the person liable, and make demand upon him or her for payment, but no such assessment shall be made after the later of three years from the date the return was filed or three years from the date the return was required to be filed, unless such return was fraudulent. When, before the expiration of the period prescribed herein for the assessment of an additional tax, a taxpayer has consented in writing that the period may be extended, the amount of the additional tax due may be determined at any time within the extended period. The period so extended may be further extended by subsequent consents in writing made before the expiration of the extended period. If the taxpayer has consented in writing to the extension of the period for assessment, the period for filing an application for credit or refund pursuant to section 9245 of this title shall likewise be extended for the same period of time. Notwithstanding the foregoing, where an operator under-reports tax collected under this chapter by 20 percent or more, the Commissioner may assess such tax at any time before the expiration of six years from the date the return was filed.

(c) If the Commissioner finds that an operator liable for a tax designs quickly to depart from this State or to remove his property therefrom or to conceal himself or herself or his or her property or to discontinue business or to do any other act tending to prejudice or to render wholly or partially ineffective proceedings to collect such tax, unless such proceedings be brought without delay, the Commissioner shall cause notice of such finding to be given such operator, together with a demand for an immediate return and immediate payment of such tax. If return and payment are not made upon demand, the Commissioner may make an estimate of the tax liability of such person from any information he or she may obtain and, according to such estimate assess the taxes due the State from such person. The Commissioner shall give notice of said assessment and demand payment thereof and such assessment shall be presumed to be correct, the burden showing otherwise being on the operator; thereupon, the tax shall become immediately due and payable. The Attorney General may at the same time, without delay, bring suit for the collection of the tax. (Added 1959, No. 217, § 11; amended 1971, No. 73, § 37, eff. April 16, 1971; 1975, No. 154 (Adj. Sess.), § 6, eff. date, see note below; 1989, No. 119, §§ 10, 12, 14, eff. June 22, 1989.)