2017 Rhode Island General Laws
Title 44 - Taxation
Chapter 44-11 - Business Corporation Tax
Section 44-11-7.1 - Limitations on assessment.

§ 44-11-7.1. Limitations on assessment.

(a) General. Except as provided in this section, the amount of the Rhode Island corporate income tax shall be assessed within three (3) years after the return was filed, whether or not the return was filed on or after the prescribed date. For this purpose, a tax return filed before the due date shall be considered as filed on the due date.

(b) Exceptions. (1) The tax may be assessed at any time if:

(i) No return is filed.

(ii) A false or fraudulent return is filed with intent to avoid tax.

(2) Where, before the expiration of the time prescribed in this section for the assessment of tax, or before the time as extended, both the tax administrator and the taxpayer have consented, in writing, to its assessment after that time, the tax may be assessed at any time prior to the expiration of the agreed upon period.

(3) If a taxpayer's deficiency is attributable to an excessive net operating loss carryback allowance, it may be assessed at any time that a deficiency for the taxable year of the loss may be assessed.

(4) An erroneous refund shall be considered to create an underpayment of tax on the date made. An assessment of a deficiency arising out of an erroneous refund may be made at any time within three (3) years thereafter, or at any time if it appears that any part of the refund was induced by fraud or misrepresentation of a material fact.

(c) Notwithstanding the provisions of this section, the tax may be assessed at any time within six (6) years after the return was filed if a taxpayer omits from its Rhode Island income an amount properly includable therein which is in excess of twenty-five percent (25%) of the amount of Rhode Island income stated in the return. For this purpose there shall not be taken into account any amount which is omitted in the return if the amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the tax administrator of the nature and amount of the item.

(d) The running of the period of limitations on assessment or collection of the tax or other amount, or of a transferee's liability, shall, after the mailing of a notice of deficiency, be suspended for any period during which the tax administrator is prohibited from making the assessment or from collecting by levy, and for sixty (60) days thereafter.

(e) No period of limitations specified in any other law shall apply to the assessment or collection of Rhode Island corporate income tax.

History of Section.
(P.L. 1979, ch. 300, § 1; P.L. 1988, ch. 12, § 1.)