Action for collection of tax -- Action for refund or credit of tax

# (1)

# (a)

Except as provided in Subsections (2) through (5), the commission shall assess a tax under this chapter within three years after a taxpayer files a return.

# (b)

Except as provided in Subsections (2) through (5), if the commission does not assess a tax under this chapter within the three-year period provided in Subsection (1)(a), the commission may not commence a proceeding to collect the tax.

# (2)

The commission may assess a tax at any time if a taxpayer:

(a) files a false or fraudulent return with intent to evade; or

(b) does not file a return.

# (3)

The commission may extend the period to make an assessment or to commence a proceeding to collect the tax under this chapter if:

# (a)

the three-year period under Subsection (1) has not expired; and

# (b)

the commission and the taxpayer sign a written agreement:

(i) authorizing the extension; and

(ii) providing for the length of the extension.

# (4)

If the commission delays an audit at the request of a taxpayer, the commission may make an assessment as provided in Subsection (5) if:

# (a)

the taxpayer subsequently refuses to agree to an extension request by the commission; and

# (b)

the three-year period under Subsection (1) expires before the commission completes the audit.

# (5)

An assessment under Subsection (4) shall be:

# (a)

for the time period for which the commission could not make an assessment because of the expiration of the three-year period; and

# (b)

in an amount equal to the difference between:

(i) the commission's estimate of the amount of tax the taxpayer would have been assessed for the time period described in Subsection (5)(a); and

(ii) the amount of tax the taxpayer actually paid for the time period described in Subsection (5)(a).

# (6)

# (a)

Except as provided in Subsection (6)(b), the commission may not make a credit or refund unless the taxpayer files a claim with the commission within three years of the date of overpayment.

# (b)

The commission shall extend the period for a taxpayer to file a claim under Subsection (6)(a) if:

(i) the three-year period under Subsection (6)(a) has not expired; and

(ii) the commission and the taxpayer sign a written agreement:

(A) authorizing the extension; and

(B) providing for the length of the extension.