Sec. 12-204. Assessment and collection of taxes.
Sec. 12-204. Assessment and collection of taxes. (a) The commissioner shall
within three years after the due date for the filing of a return or within three years after
the date of receipt of such return by him, whichever period expires later, examine it and,
in case any error is disclosed by such examination, shall, within thirty days after such
disclosure, notify the taxpayer and the State Comptroller thereof. When it appears that
any part of the deficiency for which a deficiency assessment is made is due to negligence
or intentional disregard of the provisions of this chapter or regulations promulgated
thereunder, there shall be imposed a penalty equal to ten per cent of the amount of such
deficiency assessment, or fifty dollars, whichever is greater. When it appears that any
part of the deficiency for which a deficiency assessment is made is due to fraud or intent
to evade the provisions of this chapter or regulations promulgated thereunder, there shall
be imposed a penalty equal to twenty-five per cent of the amount of such deficiency
assessment. No taxpayer shall be subject to more than one penalty under this section in
relation to the same tax period. Within thirty days of the mailing of such notice, the
taxpayer shall pay to the commissioner, in cash or by check, draft or money order drawn
to the order of the Commissioner of Revenue Services, any additional amount of tax
shown to be due by the examination, or shall be paid by the State Treasurer, upon order
of the Comptroller, any amount shown to be due it by such examination. The failure of
the taxpayer to receive any notice required by this section shall not relieve it of the
obligation to pay the tax or any interest or penalties thereon. If, before the expiration
of the time prescribed by this section for the examination of the return or the assessment
of the tax, both the commissioner and the taxpayer consent in writing to such examination
or assessment after such time, the return may be examined and the tax may be assessed
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 agreed upon. The commissioner may also in such a case extend the period
during which a claim for refund may be made by such taxpayer.
(b) To any taxes which are assessed under this section, there shall be added interest
at the rate of one per cent per month or fraction thereof from the date when the original
tax became due and payable. The amount of any tax, penalty or interest due and unpaid
under the provisions of this chapter may be collected under the provisions of section
12-35. The warrant therein provided for shall be signed by the commissioner or his
authorized agent. The amount of any such tax, penalty or interest shall be a lien on the
real estate of the taxpayer from the thirty-first day of December next preceding the due
date of such tax until such tax is paid. The commissioner may, at any time after such
December thirty-first, record such lien in the records of any town in which the real estate
of such company is situated, but no such lien shall be enforceable against a bona fide
purchaser or qualified encumbrancer of such real estate. When any tax with respect to
which a lien has been recorded under the provisions of this section has been satisfied,
the commissioner upon request of any interested party, shall issue a certificate discharging such lien, which certificate shall be recorded in the same office in which the lien
was recorded. Any action for the foreclosure of such lien shall be brought by the Attorney
General in the name of the state in the superior court for the judicial district in which
the property subject to such lien is situated, or, if such property is located in two or more
judicial districts, in the superior court for any one such judicial district, and the court
may limit the time for redemption or order the sale of such property or make such other
or further decree as it judges equitable.
(1949, S. 1085d; June, 1969, P.A. 1, S. 3; P.A. 76-322, S. 22, 27; P.A. 77-614, S. 139, 610; P.A. 80-307, S. 2, 31; P.A.
81-64, S. 2, 23; 81-411, S. 10, 42; P.A. 82-172, S. 2, 14; P.A. 88-314, S. 2, 54; P.A. 90-333, S. 1; P.A. 93-361, S. 2; P.A.
95-26, S. 1, 52.)
History: 1969 act included exceptions re date when taxes due and re payment and required examination of return within
three years rather than on or before the next following December thirty-first; P.A. 76-322 increased interest on overdue
taxes from three-fourths of 1% to 1%; P.A. 77-614 substituted commissioner of revenue services for tax commissioner,
effective January 1, 1979; P.A. 80-307 increased interest rate to 1.25% for taxes due on or after July 1, 1980, but not later
than June 30, 1981, and reduced rate to 1% thereafter; P.A. 81-64 amended the penalty provision related to taxes not paid
when due to provide for a minimum penalty of $50; P.A. 81-411 provided for continuance of interest on delinquent taxes
at 1.25% per month, effective July 1, 1981, and applicable to taxes payable to state which become due on or after that date;
P.A. 82-172 added reference to the collection procedure under section 12-35 and description of the foreclosure procedure
for the lien on real estate of the taxpayer; P.A. 88-314 provided clarification and changes related to period in which
commissioner shall examine returns, penalty to be imposed in the event of a deficiency assessment, agreement between
the commissioner and taxpayer as to an extension of time for examination of return or assessment of deficiency and the
addition of interest to deficiency assessments including rate thereof and period applied, effective July 1, 1988, and applicable
to any tax which first becomes due and payable on or after said date, to any return or report due on or after said date, or
in the case of any ongoing obligation imposed in accordance with said act, to the tax period next beginning on or after said
date; P.A. 90-333 amended Subsec. (b) by increasing the rate of interest to be added from 1.25% to 1.66% per month; P.A.
93-361 made technical changes in Subsec. (a); P.A. 95-26 amended Subsec. (b) to lower interest rate from 1.66% to 1%,
effective July 1, 1995, and applicable to taxes due and owing on or after July 1, 1995, whether or not those taxes first
became due before said date.
Cited. 164 C. 497, 504.
Cited. 16 CS 134.