58.1-1812 - Assessment of omitted taxes by the Department of Taxation.
§ 58.1-1812. Assessment of omitted taxes by the Department of Taxation.
A. If the Tax Commissioner ascertains that any person has failed to make aproper return or to pay in full any proper tax he shall assess the taxesprescribed by law, adding to the taxes so assessed the penalty prescribed bylaw, if any, for the failure to file a return (if a return was required bylaw but not filed within the time prescribed by law) and the penalty orpenalties prescribed by law for the failure to pay the taxes and penalty orpenalties within the time prescribed by law. If no penalty is so prescribed,he shall assess a penalty of 5 percent of the tax due, or if the failure topay in full was fraudulent, a penalty of 100 percent of the tax due. Inaddition thereto, interest on the outstanding tax and penalty shall becharged at the rate established under § 58.1-15 for the period between thedue date and the date of full payment.
Except as otherwise provided by law, the amount of tax shall be assessedwithin three years after the return was filed, whether such return was filedon or after the date prescribed, and no proceeding in court withoutassessment shall be begun for the collection of such tax after the expirationof such period. A return of tax filed before the last day prescribed by lawfor the timely filing thereof shall be considered as filed on the last day. Areturn of recordation tax shall be considered as having been filed on thedate of recordation. If no return is filed, the tax may be assessed withinsix years of the date such return was due. If a false or fraudulent return isfiled with intent to evade the payment of tax, an assessment may be made atany time.
Upon such assessment, the Department of Taxation shall send a bill thereforto the taxpayer and the taxes, penalties and interest shall be remitted tothe Department of Taxation within thirty days from the date of such bill. Ifsuch taxes, penalties and interest are not paid within such thirty days,interest at the rate provided herein shall accrue thereon from the date ofsuch assessment until payment.
B. The Department of Taxation shall not assess penalty or interest on anyassessment of tax for the recovery of an erroneous refund, as defined in thissection, provided that the tax is paid to the Department within thirty daysfrom the date of the bill. If the tax is not remitted to the Departmentwithin thirty days from the date of such bill, interest at the rate providedherein shall accrue thereon from the date of such assessment until payment.
As used in this section "erroneous refund" means any refund of taxresulting solely from an error by the Department of Taxation which results inthe taxpayer receiving a refund to which the taxpayer is not entitled.
(Code 1950, §§ 58-1160, 58-1161, 58-1162; 1971, Ex. Sess., c. 13; 1972, c.721; 1973, c. 446; 1976, c. 456; 1977, c. 396; 1980, c. 663; 1984, c. 675;1986, c. 39.)