Cancellation of Doubtful Liabilities
(1)This procedure is intended for those cases where the tax assessment set up by the department exceeds the taxpayer’s correct tax liability by at least $100.
(2)For purposes of this rule, the correct tax is the amount of tax determined by the department as supported by facts and documentation.
(3)It shall be the policy of the Department to provide a means for cancellation of all or a portion of tax, penalty, or interest for a specific tax year in cases where all other statutory appeal periods have expired, and where all of the following provisions are met:
(a)After an objective review of the facts and documentation, the department representative concludes that the department would have reduced or canceled the assessment if the taxpayer had objected to the assessment within the statutory time period.
(b)Taxpayer has a completed return or a report computing tax that supports cancellation or reduction of an assessment which could include:
(A)Written documentation made at the time income was received or expense was incurred;
(B)Records maintained by independent third parties; or
(C)Any documentation that the department representative considers reliable.
(c)The department representative determines the taxpayer:
(A)Has filed returns and reports as required for all tax programs administered by the department; and
(B)Has submitted full payment of the amount of tax, interest and penalty determined to be correct by the department, or has entered into and fulfilled an acceptable installment agreement for payment of such amounts.
(4)If relief is denied under these provisions, the taxpayer’s only right of appeal is directly to the Director of the Department of Revenue. The decision of the Director shall be final and may not be appealed further under this statute or any other statute pertaining to appeals of department assessments.
(5)In cases where the taxpayer has appealed an assessment to either the department or a court of this state, and a decision that determines the liability of the taxpayer has been issued, no relief shall be granted under the provisions of this section.
Rule 150-305-0272 — Cancellation of Doubtful Liabilities,