§ 44-30-89 - Administrative petition.
SECTION 44-30-89
§ 44-30-89 Administrative petition. –(a) Petition for redetermination of a deficiency. Within thirty (30)days, or one hundred fifty (150) days if the notice is addressed to a personoutside of the United States, after the mailing of the notice of deficiencyunder § 44-30-81, the taxpayer may file an administrative petition withthe tax administrator for a redetermination of the deficiency. The petition mayalso assert a claim for refund for the same taxable year or years, subject tothe limitations of § 44-30-87(g).
(b) Petition for refund. A taxpayer may file apetition to the tax administrator for the amounts asserted in a claim forrefund if:
(1) The taxpayer has filed a timely claim for refund with thetax administrator;
(2) The taxpayer has not previously filed a petition with thetax administrator for redetermination of a deficiency for the taxable year(except where the claim for refund relates to a report of change or correctionor amended return required to be filed under § 44-30-59); and
(3) Either: (i) six (6) months have expired since the claimwas filed, or (ii) the tax administrator has mailed to the taxpayer a notice ofdisallowance of the claim in whole or in part. No petition under thissubsection shall be filed more than two (2) years after the date of mailing ofa notice of disallowance. The foregoing two (2) year period may be extended bywritten agreement between the taxpayer and the tax administrator.
(c) Procedural rules. The form of a petition to thetax administrator, and further proceedings before the administrator in any caseinitiated by the filing of an administrative petition, shall be governed byrules to be established by the tax administrator. No administrative petitionshall be denied in whole or in part without an opportunity for a hearing havingbeen provided the taxpayer by the tax administrator or by a hearing officerdesignated by the tax administrator to decide the case. At any hearing, thetaxpayer may present any evidence that may be relevant, and the taxadministrator or the hearing officer shall redetermine the correct amount ofthe tax.
(1) Petition for redetermination of deficiency. If ataxpayer files with the tax administrator a petition for redetermination of adeficiency, the tax administrator shall have power to determine a greaterdeficiency than asserted in the notice of deficiency and to determine if anyaddition to tax, or civil penalty, as provided in § 44-30-85, should beassessed, if claim therefor is asserted at or before the hearing under rules ofthe tax administrator.
(2) Petition for refund. If the taxpayer files withthe tax administrator a petition for credit or refund for a taxable year, thetax administrator may:
(i) Determine a deficiency for that year as to any amount ofdeficiency asserted at or before the hearing under rules of the taxadministrator and within the period in which a notice of deficiency would betimely under § 44-30-83; or
(ii) Set off or deny so much of the amount for which creditor refund is sought, notwithstanding the expiration of any period oflimitations as the tax administrator could otherwise have set off or denied forthe same taxable year, provided the tax administrator has asserted the same ator before the hearing.
(e) Burden of proof. In any case before the taxadministrator the burden of proof shall be upon the petitioner except as to thefollowing issues:
(1) Whether the petitioner has been guilty of fraud withintent to evade tax;
(2) Whether the petitioner is liable as the transferee ofproperty of a taxpayer, but not to show that the taxpayer was liable for thetax; and
(3) Whether the petitioner is liable for any increase in adeficiency where the increase is asserted initially after a notice ofdeficiency was mailed and petition under this section filed, unless theincrease in deficiency is the result of an amended return, change, orcorrection of federal taxable income, required to be reported under §44-30-59, and of which the tax administrator had no notice at the time thenotice of deficiency was mailed.
(f) Related federal determination. Consideration maybe given to a federal determination relating to issues raised in a case beforethe tax administrator.