Sec. 12-415. Deficiency assessments.
Sec. 12-415. Deficiency assessments. (a) Deficiency assessments. If the commissioner is not satisfied with the return or returns of the tax or the amount of tax required
to be paid to the state by any person, the commissioner may compute and assess the
amount required to be paid upon the basis of the facts contained in the return or returns
or upon the basis of any information which is in or that may come into the commissioner's
possession. Except in the case of fraud or intent to evade or in the case of new information
that may come into the commissioner's possession, the commissioner may not make
more than one assessment for a tax period for which a return has been filed.
(b) Interest. The amount of the assessment, exclusive of penalties, shall bear interest at the rate of one per cent per month or fraction thereof from the last day of the month
succeeding the period for which the amount or any portion thereof should have been
returned until the date of payment.
(c) Deficiency due to negligence or intentional disregard. 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 fifteen per cent of the amount of
such deficiency assessment, or fifty dollars, whichever is greater.
(d) Twenty-five per cent penalty. 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 a penalty under both subsection (c) of this section and this subsection
in relation to the same tax period.
(e) Notice of assessment. The commissioner shall give to the retailer or person
storing, accepting, consuming or otherwise using services or tangible personal property
written notice of the commissioner's assessment. The notice may be served personally
or by mail. If by mail, it shall be addressed to the retailer or person storing, accepting,
consuming or otherwise using services or tangible personal property at the address as
it appears in the records of the commissioner's office.
(f) Limitations on deficiency assessments. Except in the case of fraud, intent to
evade this chapter or authorized regulations, failure to make a return, or claim for additional amount pursuant to subdivision (3) of section 12-418, every notice of a deficiency
assessment shall be mailed within three years after the last day of the month following
the period for which the amount is proposed to be assessed or within three years after
the return is filed, whichever period expires later. The limitation specified in this subsection does not apply in case of a sales tax proposed to be assessed with respect to sales
of services or property for the storage, acceptance, consumption or other use of which
notice of a deficiency assessment has been or is given pursuant to subsection (e) of this
section, subsection (c) of section 12-416, subdivision (1) of section 12-417 and this
subsection. The limitation specified in this subsection does not apply in case of an
amount of use tax proposed to be assessed with respect to storage, acceptance, consumption or other use of services or property for the sale of which notice of a deficiency
assessment has been or is given pursuant to said subsections and this subsection.
(g) Waiver. If, before the expiration of the time prescribed in subsection (f) of this
section for the mailing of a notice of deficiency determination, the taxpayer has consented in writing to the mailing of the notice after such time, the notice may be mailed
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 previously agreed upon.
(1949 Rev., S. 2099; 1951, S. 1171d; 1969, P.A. 388, S. 9, 10; P.A. 75-213, S. 36, 53; Dec. Sp. Sess. P.A. 75-1, S. 5,
6, 12; P.A. 76-322, S. 10, 11, 27; P.A. 80-307, S. 18, 19, 31; P.A. 81-64, S. 7, 23; 81-411, S. 26, 27, 42; P.A. 85-316, S.
2, 7; P.A. 88-314, S. 25, 54; P.A. 90-148, S. 10, 34; May Sp. Sess. P.A. 94-4, S. 38, 48, 85; P.A. 95-160, S. 64, 69; P.A.
97-243, S. 28, 67; P.A. 98-262, S. 7, 22; P.A. 99-48, S. 6, 10; 99-121, S. 12, 28; P.A. 02-103, S. 19.)
History: 1969 act changed interest rates in Subsecs. (2) and (3) from 0.5% to 0.75%; P.A. 75-213 added references to
"acceptance" and "services" in Subsec. (6); Dec. Sp. Sess. P.A. 75-1 deleted word "quarterly" from references re payment
periods in Subsecs. (2) and (7), effective January 1, 1976, and applicable to taxes imposed by chapter 219 on or after that
date; P.A. 76-322 increased interest rates in Subsecs. (2) and (3) to 1%; P.A. 80-307 temporarily increased interest rates
in Subsecs. (2) and (3) to 1.25% for assessments and payments due on or after July 1, 1980, but not later than June 30,
1981; P.A. 81-64 amended Subsec. (4) to include a minimum penalty of $50; P.A. 81-411 continued the rate of interest
applicable to a deficiency assessment under Subsec. (2) at 1.25% per month and continued the rate of interest applicable
with respect to overpayments and underpayments as provided in Subsec. (3) at 1.25% per month, effective July 1, 1981,
and applicable to taxes becoming due on or after that date; P.A. 85-316 amended Subsec. (3) by deleting reference to
penalties on underpayments as an item against which overpayments may be offset, retaining interest on underpayments
as an item subject to such offset; P.A. 88-314 made technical changes in Subsecs. (4) and (5) for purposes of clarification,
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. 90-148 increased the rate of interest added under Subsecs. (2) and (3)
from 1.25% to one and 1.66% per month and increased the penalty for deficiency assessment from 10% to 15% of the
assessment as provided under Subsec. (4), effective July 1, 1990, and applicable to taxes becoming due on or after that
date; May Sp. Sess. P.A. 94-4 made existing Subsec. (1) a Subdiv. (A) and added provision that commissioner may not
make more than one assessment for a tax period and added a new Subdiv. (B) re supplemental assessment, effective June
9, 1994, and in Subsecs. (2) and (3) reduced interest rate from 1.66% to 1%, effective July 1, 1995, and applicable to taxes
due and owing on or after said date; P.A. 95-160 revised effective date of May Sp. Sess. P.A. 94-4 but without affecting
this section; P.A. 97-243 amended Subsec. (1) to allow commissioner to make more than one assessment if new information
comes into his possession and deleted requirement to adopt regulations, effective July 1, 1997; P.A. 98-262 amended
Subsec. (7) to change reference from Subsec. (5) to Subsec. (4) of Sec. 12-416, effective June 8, 1998; P.A. 99-48 replaced
numeric Subsec. indicators with alphabetic indicators, deleting former Subsec. (3) re offsets by the commissioner, and
made technical changes, effective January 1, 2000; P.A. 99-121 amended Subsecs. (6) and (7) to make technical changes
and delete obsolete language, effective June 3, 1999; P.A. 02-103 made technical changes in Subsec. (f).
Cited. 168 C. 597. Cited. 187 C. 581. Cited. 210 C. 401. Cited. 231 C. 315. Section does not require proof of intent to
evade "sales tax"; it requires proof of intent to evade the Sales and Use Tax Act or authorized regulations, which laws
require accurate reporting and record keeping. 264 C. 286.
Cited. 12 CA 417.
Cited. 44 CS 297.
Subsec. (2):
Cited. 43 CA 744.
Subsec. (4):
Cited. 235 C. 393.
Subsec. (7):
Cited. 31 CS 373.