§ 44-30-81 - Notice of deficiency.
SECTION 44-30-81
§ 44-30-81 Notice of deficiency. –(a) General. If upon examination of a taxpayer's return the taxadministrator determines that there is a deficiency, the administrator may maila notice of deficiency to the taxpayer at his or her last known address in orout of this state. If a husband and wife are jointly liable for tax, a noticeof deficiency may be a single joint notice, unless the tax administrator hasbeen notified by either spouse that separate residences have been established,in which event a duplicate original of the joint notice shall be mailed to eachspouse at his or her last known address in or out of this state. If a taxpayerhas died or is under a legal disability, a notice of deficiency may be mailedto his or her last known address in or out of this state, unless the taxadministrator has received notice of the existence of a fiduciary relationshipwith respect to the taxpayer.
(b) Notice of deficiency as assessment and demand fortax. After thirty (30) days from the mailing of a notice of deficiency, thenotice shall be an assessment and a notice and demand for tax to be paid at theplace and time specified in the notice, together with interest, additions totax, and civil penalties stated in the notice, except only for any tax or otheramounts as to which the taxpayer has within the thirty (30) day period filedwith the tax administrator an "administrative petition" under § 44-30-89.If the notice of deficiency is addressed to a person outside of the UnitedStates, the period shall be one hundred fifty (150) days.
(c) Restrictions on assessment and levy. No assessmentof a deficiency and no levy or proceeding in court for its collection shall bemade, begun, or prosecuted, except as provided in § 44-30-82(b), until anotice of deficiency has been mailed to the taxpayer, nor until the expirationof the time for filing an administrative petition contesting the notice, nor,if an administrative petition with respect to the taxable year has been filed,until the tax administrator's decision has become final.
(d) Waiver of restrictions. The taxpayer may at anytime, whether or not a notice of deficiency has been issued, by a signed noticein writing filed with the tax administrator waive in whole or in part therestrictions on deficiency assessments and collection.
(e) "Deficiency" defined. A "deficiency" means thecorrect amount of the tax less: (1) the amount shown as the tax upon thetaxpayer's return (whether or not the return was made or the tax computed bythe taxpayer), and less (2) the amounts previously assessed (or collectedwithout assessment) as a deficiency, and plus (3) the amount of any rebates.For purposes of this definition, the tax shown on the return and the correctamount of the tax shall both be determined without regard to payments onaccount of estimated tax or the credit for withholding tax; and a rebate meansso much of an abatement, credit, refund, or other repayment made on the groundthat the amounts entering into the definition of a "deficiency" showed abalance in the taxpayer's favor.
(f) Deficiency explanation. All notices of deficiencyshall explain the reasons why there is a deficiency together with a descriptionof all penalties and any fines to be assessed.