Time limitation on issuance of proposed assessment; extension
Sec. 2. (a) Except as otherwise provided in this section, the
department may not issue a proposed assessment under section 1 of
this chapter more than three (3) years after the latest of the date the
return is filed, or any of the following:
(1) the due date of the return; or
(2) in the case of a return filed for the state gross retail or use
tax, the gasoline tax, the special fuel tax, the motor carrier fuel
tax, the oil inspection fee, or the petroleum severance tax, the
end of the calendar year which contains the taxable period for
which the return is filed.
(b) If a person files an adjusted gross income tax (IC 6-3),
supplemental net income tax (IC 6-3-8) (repealed), county adjusted
gross income tax (IC 6-3.5-1.1), county option income tax (IC
6-3.5-6), or financial institutions tax (IC 6-5.5) return that
understates the person's income, as that term is defined in the
particular income tax law, by at least twenty-five percent (25%), the
proposed assessment limitation is six (6) years instead of the three
(3) years provided in subsection (a).
(c) In the case of the motor vehicle excise tax (IC 6-6-5), the tax
shall be assessed as provided in IC 6-6-5-5 and IC 6-6-5-6 and shall
include the penalties and interest due on all listed taxes not paid by
the due date. A person that fails to properly register a vehicle as
required by IC 9-18 and pay the tax due under IC 6-6-5 is considered
to have failed to file a return for purposes of this article.
(d) In the case of the commercial vehicle excise tax imposed
under IC 6-6-5.5, the tax shall be assessed as provided in IC 6-6-5.5
and shall include the penalties and interest due on all listed taxes not
paid by the due date. A person that fails to properly register a
commercial vehicle as required by IC 9-18 and pay the tax due under
IC 6-6-5.5 is considered to have failed to file a return for purposes of
this article.
(e) If a person files a fraudulent, unsigned, or substantially blank
return, or if a person does not file a return, there is no time limit
within which the department must issue its proposed assessment.
(f) If, before the end of the time within which the department may
make an assessment, the department and the person agree to extend
that assessment time period, the period may be extended according
to the terms of a written agreement signed by both the department
and the person. The agreement must contain:
(1) the date to which the extension is made; and
(2) a statement that the person agrees to preserve the person's
records until the extension terminates.
The department and a person may agree to more than one (1)
extension under this subsection.
(g) If a taxpayer's federal income tax liability for a taxable year is
modified due to the assessment of a federal deficiency or the filing
of an amended federal income tax return, then the date by which the
department must issue a proposed assessment under section 1 of this
chapter for tax imposed under IC 6-3 is extended to six (6) months
after the date on which the notice of modification is filed with the
department by the taxpayer.
As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.73-1983,
SEC.16; P.L.82-1983, SEC.11; P.L.76-1985, SEC.6;
P.L.335-1989(ss), SEC.19; P.L.347-1989(ss), SEC.18; P.L.2-1991,
SEC.55; P.L.28-1997, SEC.26; P.L.181-1999, SEC.6;
P.L.192-2002(ss), SEC.143.
Last modified: May 28, 2006