59-5-114. Limitation of actions.
(1) Except as provided in Subsectionsthrough, the commission shall assess the amount of taxes imposed under this part, and any penalties and interest, within six years after a taxpayer files a return. (1)(c) (f) Except as provided in Subsectionsthrough, if the commission does not make an assessment under Subsectionwithin six years, the commission may not commence a proceeding for the collection of the taxes after the expiration of the six-year period. (1)(c) (f) (1)(a) Notwithstanding Subsectionsand, the commission may make an assessment or commence a proceeding to collect a tax at any time if a deficiency is due to: (1)(a) (b) fraud; or failure to file a return. Notwithstanding Subsectionsand, beginning on July 1, 1998, the commission may extend the period to make an assessment or to commence a proceeding to collect the tax under this part if: (1)(a) (b) the six-year period under this Subsectionhas not expired; and (1) the commission and the taxpayer sign a written agreement: authorizing the extension; and providing for the length of the extension. If the commission delays an audit at the request of a taxpayer, the commission may make an assessment as provided in Subsectionif: (1)(f) the taxpayer subsequently refuses to agree to an extension request by the commission; and the six-year period under this Subsectionexpires before the commission completes the audit. (1) An assessment under Subsectionshall be: (1)(e) for the time period for which the commission could not make an assessment because of the expiration of the six-year period; and in an amount equal to the difference between: the commission's estimate of the amount of taxes the taxpayer would have been assessed for the time period described in Subsection; and (1)(f)(i) the amount of taxes the taxpayer actually paid for the time period described in Subsection. (1)(f)(i)
(2) Except as provided in Subsection, the commission may not make a credit or refund unless the taxpayer files a claim with the commission within six years of the date of overpayment. (2)(b) Notwithstanding Subsection, beginning on July 1, 1998, the commission shall extend the period for a taxpayer to file a claim under Subsectionif: (2)(a) (2)(a) the six-year period under Subsectionhas not expired; and (2)(a) the commission and the taxpayer sign a written agreement: authorizing the extension; and providing for the length of the extension.