Connecticut General Statutes 12-415 – Deficiency assessment or reassessment
(a) Deficiency assessment or reassessment. If the commissioner is not satisfied with the return or returns of the tax or the amount of tax required to be paid to the state by any person, the commissioner may compute and assess or reassess the amount required to be paid upon the basis of the facts contained in the return or returns or upon the basis of any information which is in or that may come into the commissioner’s possession.
Terms Used In Connecticut General Statutes 12-415
- Fraud: Intentional deception resulting in injury to another.
- month: means a calendar month, and the word "year" means a calendar year, unless otherwise expressed. See Connecticut General Statutes 1-1
- Person: means and includes any individual, firm, copartnership, joint venture, association, association of persons however formed, social club, fraternal organization, corporation, limited liability company, foreign municipal electric utility as defined in section 12-59, estate, trust, fiduciary, receiver, trustee, syndicate, the United States, this state or any political subdivision thereof or any group or combination acting as a unit, and any other individual or officer acting under the authority of any court in this state. See Connecticut General Statutes 12-407
- Personal property: All property that is not real property.
- Retailer: includes :
(A) Every person engaged in the business of making sales at retail or in the business of making retail sales at auction of tangible personal property owned by the person or others. See Connecticut General Statutes 12-407
- Storage: includes any keeping or retention in this state for any purpose except sale in the regular course of business or subsequent use solely outside this state of tangible personal property purchased from a retailer. See Connecticut General Statutes 12-407
- succeeding: when used by way of reference to any section or sections, mean the section or sections next preceding, next following or next succeeding, unless some other section is expressly designated in such reference. See Connecticut General Statutes 1-1
- Tangible personal property: includes (A) digital goods, (B) canned or prewritten computer software, including canned or prewritten software that is electronically accessed or transferred, other than when purchased by a business for use by such business, and any additional content related to such software, and (C) the distribution, generation or transmission of electricity. See Connecticut General Statutes 12-407
- Use: includes the exercise of any right or power over tangible personal property incident to the ownership of that property, except that it does not include the sale of that property in the regular course of business. See Connecticut General Statutes 12-407
(b) Interest. The amount of the assessment or reassessment, exclusive of penalties, shall bear interest at the rate of one per cent per month or fraction thereof from the last day of the month succeeding the period for which the amount or any portion thereof should have been returned until the date of payment.
(c) Deficiency due to negligence or intentional disregard. When it appears that any part of the deficiency for which a deficiency assessment or reassessment 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 fifteen per cent of the amount of such deficiency assessment or reassessment, or fifty dollars, whichever is greater.
(d) Deficiency due to fraud or intent to evade. When it appears that any part of the deficiency for which a deficiency assessment or reassessment 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 or reassessment. No taxpayer shall be subject to a penalty under both subsection (c) of this section and this subsection in relation to the same tax period.
(e) Notice of assessment or reassessment. The commissioner shall give to the retailer or person storing, accepting, consuming or otherwise using services or tangible personal property written notice of the commissioner’s assessment or reassessment. The notice may be served personally or by mail. If by mail, it shall be addressed to the retailer or person storing, accepting, consuming or otherwise using services or tangible personal property at the address as it appears in the records of the commissioner’s office.
(f) Limitations on deficiency assessment or reassessment. Except in the case of fraud, intent to evade this chapter or authorized regulations, failure to make a return, or claim for additional amount pursuant to subsection (c) of section 12-418, every notice of a deficiency assessment or reassessment shall be mailed within three years after the last day of the month following the period for which the amount is proposed to be assessed or reassessed or within three years after the return is filed, whichever period expires later. The limitation specified in this subsection does not apply in case of a sales tax proposed to be assessed or reassessed with respect to sales of services or property for the storage, acceptance, consumption or other use of which notice of a deficiency assessment or reassessment has been or is given pursuant to this subsection, subsection (e) of this section, subsection (c) of section 12-416, and subsection (a) of section 12-417. The limitation specified in this subsection does not apply in case of an amount of use tax proposed to be assessed or reassessed with respect to storage, acceptance, consumption or other use of services or property for the sale of which notice of a deficiency assessment or reassessment has been or is given pursuant to this subsection and said subsections.
(g) Waiver. If, before the expiration of the time prescribed in subsection (f) of this section for the mailing of a notice of deficiency assessment or reassessment, the taxpayer has consented in writing to the mailing of the notice after such time, the notice may be mailed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.