§ 26-18-403 - Proposed assessments.
26-18-403. Proposed assessments.
(a) (1) If any taxpayer fails to file any return as required by any state tax law, the director, from any information in his possession or obtainable by him, may determine the correct amount of tax for the taxable period. If a return has been filed, the director shall examine the return and make any audit or investigation that he considers necessary.
(2) When no return has been filed and the director determines that there is a tax due for the taxable period or when a return has been filed and the director determines that the tax disclosed by the return is less than the tax disclosed by his examination, the director shall propose the assessment of additional tax plus penalties, as the case may be, and shall give notice of the proposed assessment to the taxpayer. The notice shall explain the basis for the proposed assessment and shall state that a final assessment, as provided by 26-18-401, will be made if the taxpayer does not protest such proposed assessment as provided by 26-18-404. The taxpayer does not have to protest the proposed assessment to later be entitled to exercise the right to seek a judicial review of the assessment, pursuant to the provisions of 26-18-406.
(b) Any demand for additional payment of a state tax which is made as the result of a verification of a mathematical error on the return shall not be deemed to be a proposed assessment under the provisions of this section and shall not be subject to the hearing or appeal provisions of this chapter.