Title 42 — Taxation

In this title, unless the context otherwise requires: 1. "Board" or "state board" means either the state board of tax appeals or the state board of equalization, as applicable. 2. "Court" means the tax court or superior court, whichever is applicable. 3. "Department" means the de…

A. There is established a department of revenue. B. The direction, operation and control of the department are the responsibility of the director. C. The director shall be appointed by the governor pursuant to section 38-211 and shall serve at the pleasure of the governor. D. Com…

A. The department consists of such divisions as the director deems necessary to achieve maximum efficiency, economy and effectiveness in administering and collecting taxes. The departmental organization shall provide for administering taxes as prescribed by law and for administra…

A. The department shall administer and enforce this title, title 43 and other laws assigned to it and has all the powers and duties prescribed by law for such purposes. In all proceedings prescribed by law the department may act on behalf of this state. In addition, the departmen…

A. The director shall be directly responsible to the governor for the direction, control and operation of the department and shall: 1. Make such administrative rules as he deems necessary and proper to effectively administer the department and enforce this title and title 43. 2. …

A. The director may prepare interrogatories to be propounded to taxpayers concerning matters relating to taxes, with an oath or affirmation annexed, which shall be fully answered by the taxpayers to whom they are submitted. B. Any person who knowingly makes a false answer to any …

If an action is commenced against the department, a copy of the summons and the complaint or the notice of appeal, whichever is applicable, shall be served upon the director to effect service upon the department.

An employee of the department of revenue, any individual acting as an agent or contractor of the department to perform any duties of the department or any manager or supervisor of an individual acting as an agent or contractor of the department shall not for compensation prepare …

(Rpld. 1/1/30) The department of revenue tax system modernization project advisory committee is established and shall serve as the liaison between the department and the users of the tax system. The committee shall consist of the following members: 1. The director of the departme…

In this article, unless the context otherwise requires: 1. "State" means the District of Columbia and any state, territory or possession of the United States. 2. "Tax" means: (a) Assessments lawfully made, whether based on a return or other disclosure of the taxpayer, upon the in…

If authorized by the law of another state, the attorney general or any person authorized by him, or any appropriate officer of a political subdivision of this state, may bring suits in the courts of such other state to collect taxes legally due this state or the political subdivi…

A. The officials of states which extend a comity to this state in authorizing suits as provided for in section 42-1052 may sue for the collection of such taxes in the courts of this state. A certificate issued by the secretary of state under the great seal of the state that such …

This article and chapter 2 of this title apply generally to the administration of income tax, withholding tax, transaction privilege tax, telecommunication services excise tax, county excise taxes and any other privilege excise tax administered by the department, severance tax, u…

In this article, unless the context otherwise requires: 1. "Audit" means a review or examination of a taxpayer's accounts, financial information, books and records and any other document to ensure information is reported correctly on a return in accordance with this chapter and t…

A. If the department deems it necessary to protect the revenues to be collected under this title and title 43, it may require a person liable for the tax to file a bond to secure the payment of the tax, penalty or interest, which may become due from that person. The bond shall be…

A. In order to ensure or to compel payment of taxes and to aid in enforcing this article, the director may apply to the tax court to enjoin any delinquent taxpayer or person who may be or may become liable for payment of any tax from engaging or continuing in business until the p…

A. The director may apply to the tax court to enjoin any return preparer from engaging in business if the return preparer has: 1. Been subject to a civil or criminal penalty prescribed by section 42-1125 or 42-1127. 2. Misrepresented the preparer's experience or education. 3. Gua…

A. The department may impose a civil penalty of two hundred fifty dollars against a return preparer who knew or reasonably should have known that an understatement of liability was on a return or claim for refund. The penalty under this subsection may be imposed only if there was…

A. The department may suspend an electronic return preparer from participating in the electronic filing program if the department determines that the electronic return preparer has failed to comply with any of the department's electronic filing program requirements, including req…

A. For the taxes to which this article applies, every notice of every additional tax due shall be prepared on forms prescribed by the department and mailed within four years after the report or return is required to be filed or within four years after the report or return is file…

A. The federal taxpayer identification number, assigned pursuant to section 6109 of the internal revenue code, is the taxpayer identifier for purposes of the taxes administered pursuant to this article. Each person who is required to make a return, statement or other document sha…

[Repealed or reserved.]

A. Any return, statement or other document that is electronically filed pursuant to an electronic filing program established by the department shall be deemed filed and received by the department on the date of the electronic postmark. If the taxpayer and the electronic return pr…

A return preparer, electronic return preparer or electronic return transmitter is guilty of a class 3 misdemeanor if the preparer or transmitter knowingly or recklessly discloses information related to a return, statement or other document to another person who is not authorized …

A. The period within which a claim for credit or refund may be filed, or credit or refund may be allowed or made if no claim is filed, is the period within which the department may make an assessment under section 42-1104. B. If the total amount withheld under section 43-401 exce…

A. The department, pursuant to administrative rule, may grant an automatic extension of time for filing an income tax return under title 43 if at least ninety percent of the tax liability disclosed by the taxpayer's return for the reporting period is paid and if the request for e…

A. If a taxpayer fails to file a return required by this title or title 43, or if the department is not satisfied with the return or payment of the amount of tax required to be paid under either title, the department may examine any return, including any books, papers, records or…

A. If a person who is required to file a report or return fails to do so within fifteen days after written demand by the department, the department shall proceed to obtain facts and information on which to base the tax, and for that purpose the department or its agent may examine…

A. The taxes administered pursuant to this article except estate and income taxes are a lien on the property of any person subject to this article who sells his business or stock of goods, or quits business, if the person fails to make a final return and payment of the tax within…

A. If the department believes that the collection of any assessment or deficiency of any tax administered pursuant to this article will be jeopardized by delay, whether or not the time otherwise prescribed by law for making a return and paying the tax has expired and notwithstand…

In performing its duties pursuant to this article the department may: 1. Examine any books, papers, records or memoranda bearing on the matters required to be included in the return of any taxpayer. 2. Require from a taxpayer's consolidated return, filed under sections 1501 and 1…

The department or any person authorized in writing by the department may enter into a written agreement with a taxpayer relating to the liability of the taxpayer, or relating to the liability of the person or estate for whom he acts, in respect of any tax administered pursuant to…

A. The department may bring an action in the name of this state to recover the amount of any taxes, penalties, interest or other amounts owed by the taxpayer to the department that are due and unpaid. The department of law shall prosecute the action. In the action a writ of attac…

The department shall account for amounts paid under protest until any of the following occurs: 1. A final judgment is rendered and the time for appeal expires. 2. The action begun by the taxpayer is dismissed. 3. Thirty days have elapsed after the order of the department became f…

A. The department of revenue shall promptly deposit, pursuant to sections 35-146 and 35-147, all monies it collects from the taxes administered pursuant to this article except the telecommunication services excise tax, separately accounting for each type of tax and each tax class…

B. The director shall administer the fund. C. Subject to legislative appropriation, the director shall use monies in the fund solely for the administrative costs of the department.

A. The department of revenue tax fraud interdiction fund is established consisting of fines collected pursuant to section 42-1127, subsection B, paragraphs 5 and 6. B. The director shall administer the fund. Subject to legislative appropriation, the director shall: 1. Use fifty p…

A. A tax refund account is established in the state general fund. The director of the department of administration shall draw all amounts necessary to make refunds under this article from the tax refund account. B. At any time during the fiscal year if it appears that the amount …

A. If the department determines that any amount of tax, penalty or interest has been paid in excess of the amount actually due, the department shall credit the excess amount against any tax administered pursuant to this article, including any penalty, interest or other amounts ow…

A. If the department disallows any claim for refund, it shall notify the taxpayer accordingly. The department's action on the claim is final unless the taxpayer appeals to the department in writing within the time and in the manner prescribed by section 42-1251. If the department…

A. If an overpayment is made by a taxpayer for any taxable period and a deficiency is owing from the spouse of the taxpayer for the same period and both the taxpayer and the spouse notify the department in writing before the expiration of the time within which credit for the over…

A. If an overpayment is made by a taxpayer for any taxable period and a deficiency is owing from the same taxpayer for any other taxable period, the overpayment, if the period within which credit for the overpayment may be allowed has not expired, shall be credited on the deficie…

A. The department shall establish a liability setoff program by which refunds under section 42-1118 and title 43, chapters 10 and 11 may be used to satisfy debts that the taxpayer owes to this state, a political subdivision or a court. The program shall comply with the standards …

A. If it is provided by law that interest applies as determined pursuant to this section, the department shall apply interest, compounded annually, in the same manner and at the same times as prescribed by section 6621 of the United States internal revenue code, except that the r…

A. If the department or its authorized agents or representatives discover any luxury subject to tax under chapter 3 of this title to which official stamps have not been affixed as required or on which the tax has not been paid or accounted for, the department or its agent or repr…

A. If a taxpayer fails to make and file a return for a tax administered pursuant to this article on or before the due date of the return or the due date as extended by the department, unless it is shown that the failure is due to reasonable cause and not due to wilful neglect, fo…

A. If a return preparer or electronic return preparer fails to furnish a completed copy of any return, statement or other document to the taxpayer when the return, statement or other document is presented for the taxpayer’s signature, the return preparer shall pay a penalty of fi…

A. The department may charge and collect a fee of $50 from a taxpayer that offers a check, draft, negotiable order of withdrawal or similar instrument, or an electronic funds transfer, automated clearing house debit or automated clearing house credit drawn on a bank or other depo…

A. It is a class 4 felony to: 1. Corruptly or by force or threats of force or injury: (a) Attempt to intimidate, impede or injure an employee of the department acting in an official capacity. (b) Obstruct, impede or attempt to obstruct or impede the administration of this title o…

A. A taxpayer who fails to pay any delinquent taxes, penalties or interest for a tax administered under this article is liable for all costs and expenses incurred by the department to collect the delinquent taxes, penalties and interest. The department may collect these expenses …