§ 44-30-83 - Limitations on assessment.
SECTION 44-30-83
§ 44-30-83 Limitations on assessment.– (a) General. Except as otherwise provided in this section the amount ofthe Rhode Island personal income tax shall be assessed within three (3) yearsafter the return was filed, whether or not the return was filed on or after theprescribed date. For this purpose a tax return filed before the due date shallbe considered as filed on the due date; and a return of withholding tax for anyperiod ending with or within a calendar year filed before April 15 of thesucceeding calendar year shall be considered filed on April 15 of thesucceeding calendar year.
(1) Assessment at any time. The tax may be assessed atany time if:
(i) No return is filed;
(ii) A false or fraudulent return is filed with intent toevade tax; or
(iii) The taxpayer fails to file a report, pursuant to §44-30-59, of a change, correction, or amended return, increasing his or herfederal taxable income as reported on his or her federal income tax return orto report a change or correction which is treated in the same manner as if itwere a deficiency for federal income tax purposes.
(2) Extension by agreement. Where, before theexpiration of the time prescribed in this section for the assessment of tax, orbefore the time as extended pursuant to this section, both the taxadministrator and the taxpayer have consented in writing to its assessmentafter that time, the tax may be assessed at any time prior to the expiration ofthe period agreed upon.
(3) Report of changed or corrected federal income. Ifthe taxpayer shall, pursuant to § 44-30-59, file an amended return, orreport a change or correction increasing his or her federal taxable income orreport a change or correction which is treated in the same manner as if it werea deficiency for federal income tax purposes, an assessment may be made at anytime prior to two (2) years after the report or amended return was filed. Thisassessment of Rhode Island personal income tax shall not exceed the amount ofthe increase attributable to the federal change, correction, or items amendedon the taxpayer's amended federal income tax return. The provisions of thisparagraph shall not affect the time within which or the amount for which anassessment may otherwise be made.
(4) Deficiency attributable to net operating losscarryback. If a taxpayer's deficiency is attributable to an excessive netoperating loss carryback allowance, it may be assessed at any time that adeficiency for the taxable year of the loss may be assessed.
(5) Recovery of erroneous refund. An erroneous refundshall be considered to create an underpayment of tax on the date made. Anassessment of a deficiency arising out of an erroneous refund may be made atany time within three (3) years thereafter, or at any time if it appears thatany part of the refund was induced by fraud or misrepresentation of a materialfact.
(6) Armed forces relief. For purposes of this tax, thedate appearing in 26 U.S.C. § 692(a) shall be January 1, 1971.
(c) Omission of income on return. Notwithstanding theforegoing provisions of this section, the tax may be assessed at any timewithin six (6) years after the return was filed if an individual omits from hisor her Rhode Island income an amount properly includible therein which is inexcess of twenty-five percent (25%) of the amount of Rhode Island income statedin the return. For this purpose there shall not be taken into account anyamount which is omitted in the return if the amount is disclosed in the return,or in a statement attached to the return, in a manner adequate to apprise thetax administrator of the nature and amount of the item.
(d) Suspension of limitation. The running of theperiod of limitations on assessment or collection of tax or other amount (or ofa transferee's liability) shall, after the mailing of a notice of deficiency,be suspended for the period during which the tax administrator is prohibitedunder § 44-30-81(c) from making the assessment or from collecting by levy,and for sixty (60) days thereafter.
(e) Limitations exclusive. No period of limitationsspecified in any other law shall apply to the assessment or collection of RhodeIsland personal income tax.