2005 Connecticut Code - Sec. 12-638d. Examination of records. Deficiency assessment. Penalty. Limitation of assessment period.
Sec. 12-638d. Examination of records. Deficiency assessment. Penalty. Limitation of assessment period. (a) The commissioner may examine the records of any
entity subject to a tax imposed under this chapter, as he may deem necessary. If he shall
determine therefrom that there is a deficiency with respect to the payment of any such
tax due under the provisions of this chapter, he shall assess or reassess the deficiency
in tax, give notice of such deficiency assessment or reassessment to the taxpayer and
make demand upon him for payment. Such amount shall bear interest at the rate of one
per cent per month or fraction thereof from the date when the original tax was due and
payable. When it appears that any part of the deficiency for which a deficiency assessment is made is due to negligence or intentional disregard of the provisions of this
chapter or regulations promulgated thereunder, there shall be imposed a penalty equal
to ten per cent of the amount of such deficiency assessment, or fifty dollars, whichever
is greater. When it appears that any part of the deficiency for which a deficiency assessment is made is due to fraud or intent to evade the provisions of this chapter or regulations
promulgated thereunder, there shall be imposed a penalty equal to twenty-five per cent
of the amount of such deficiency assessment. No taxpayer shall be subject to more
than one penalty under this subsection in relation to the same tax period. Any decision
rendered by any federal court holding that a taxpayer has filed a fraudulent return with
the Director of Internal Revenue shall subject the taxpayer to the penalty imposed by
this section without the necessity of further proof thereof, except when it can be shown
that the return to the state so differed from the return to the federal government as to
afford a reasonable presumption that the attempt to defraud did not extend to the return
filed with the state. Within thirty days of the mailing of such notice, the taxpayer shall
pay to the commissioner, in cash, or by check, draft or money order drawn to the order
of the Commissioner of Revenue Services, any additional amount of tax, penalty and
interest shown to be due.
(P.A. 89-251, S. 42, 203; May Sp. Sess. P.A. 94-4, S. 65, 85; P.A. 95-26, S. 33, 52; 95-160, S. 64, 69.)
History: P.A. 89-251, S. 42 effective July 1, 1989, and applicable to sales or transfers of real property occurring on or after that date; May Sp. Sess. P.A. 94-4 in Subsec. (b) reduced interest rate from one and one-quarter per cent to one per cent provided that interest may only be applied on the tax rather than on the tax and any penalty, effective July 1, 1995, and applicable to taxes due and owing on or after said date; P.A. 95-26 amended Subsec. (a) to lower interest rate from one and one-fourth to one per cent, effective July 1, 1995, and applicable to taxes due and owing on or after July 1, 1995, whether or not those taxes first became due before said date; P.A. 95-160 revised effective date of May Sp. Sess. P.A. 94-4 but without affecting this section.
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