42-1102
|
42-1102. Taxpayer bonds; definition (L89, ch 132, sec 5) A. If the department deems it necessary to protect the revenues to be collected under this title and title 43, it may require a person liable for the tax to file a bond to secure the payment of the tax, penalty or interest which may become due from that person. The bond shall be: 1. Issued by a surety company authorized to transact business in this state and approved by the director of insurance of this state as to solvency and responsibility or composed of securities or cash which are deposited with, and kept in the custody of, the department. 2. In the amount which the department prescribes by administrative rule to secure the payment of any tax, penalty or interest which may become due from the person. B. If the department determines that a person is to file such a bond it shall notify him to that effect, specifying the amount of the bond required. The person shall file the bond within five days after the giving of notice unless within that time he requests in writing a hearing before the department at which time the department shall determine the necessity, propriety and amount of the bond. The determination is final unless within fifteen days after the giving of notice of the determination the person appeals the determination to the state board of tax appeals. The board shall decide on the appeal within fifteen days of its receipt. The bond may, at any time without notice, be applied to any tax, penalties or interest due, and for that purpose the securities may be sold at public or private sale without notice to the depositor. C. For purposes of this section a bond may be required if: 1. After investigation of financial status, the department determines that an applicant for a new license would be unable to timely remit amounts due. 2. An applicant for a new license held a license for a prior business, and the remittance record for the prior business falls within one of the conditions in paragraph 5. 3. The department experienced collection problems while the applicant was engaged in business under a prior license. 4. The applicant is substantially similar to a person who would have been required to post a bond under paragraph 5 or the person had a previous license which was revoked. An applicant is substantially similar if it is owned or controlled by persons who owned or controlled a previous licensee. 5. An existing licensee has had two or more delinquencies in remitting tax during the preceding twenty-four months if filing on a quarterly or less frequent basis or four or more delinquencies during the preceding twenty-four months if filing on a monthly or more frequent basis. D. If a licensee who is required to post a bond or security maintains a good filing and payment record for a period of two years, the licensee may request that the department waive the continued bond or security requirement. E. In this section "person" includes a firm, partnership, joint venture, association, corporation, sole proprietorship or any other business or governmental entity subject to a tax administered by this article but does not include an individual subject to individual income tax. |