58.1-1621 - Proceedings in case of previous incorrect payments.
§ 58.1-1621. Proceedings in case of previous incorrect payments.
Whenever the Department, in examining and auditing the records of anytaxpayer, or from other information, shall ascertain that the amount, oramounts, previously paid by any taxpayer for any period, is incorrect, theDepartment shall compute the correct amount of tax due. If it appears thatthe amount paid by the taxpayer is in excess of the correct amount due, suchexcess shall be refunded to the taxpayer under the rules and regulations ofthe Department. If it appears that the amount paid by such taxpayer is lessthan the amount due, the Department shall compute the amount of suchdeficiency and shall notify the taxpayer, and shall demand payment therefor.If such deficiency is not paid within thirty days from the date of suchdemand, the Department shall make an assessment against the taxpayer of theamount due and shall add a penalty of one-half of one percent per month fromthe date such taxes, or any part thereof, became due; provided, however, thatif the Department be of the opinion that there was a wilful or fraudulentintent by the taxpayer to evade the tax due, it may assess a penalty oftwenty-five percent of the tax.
(Code 1950, § 58-838.16; 1984, c. 675.)