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A. (1) All information that the department or the department of administrative hearings receives from returns or reports from any investigation, or from any hearing conducted under this chapter, or under any tax ordinance, shall be confidential and shall be used for official purposes only.
(2) Any person who divulges confidential information in any manner and for any purpose, except in accordance with a proper judicial order, or as otherwise provided by law, shall be subject to a term of incarceration not to exceed six months or a fine not to exceed $500.00 or both.
B. Nothing in this chapter shall prevent the comptroller from publishing or making available to the public the names and addresses of persons filing returns or reports under this chapter, or under any tax ordinance, or from publishing or making available reasonable statistics concerning the operation of a tax by grouping the contents of returns so that the information in any individual return is not disclosed.
C. Nothing in this chapter shall prevent the comptroller from furnishing to the United States government, to the government of any state or to any federal or state officer or agency, for exclusively official purposes, information received by the department in administering this chapter or any tax ordinance; provided, however, that the other government or governmental officer or agency agrees to furnish tax information requested by the department.
D. (1) Furnishing information to a seller or purchaser under Section 3-4-140 of this chapter is an official purpose within the meaning of this section:
(2) Furnishing returns, reports or information to the city's auditor, or his or her authorized agent, or to the city council finance committee, as provided by Section 3-4-350 of this chapter, are official purposes within the meaning of this section.
(Added Coun. J. 11-14-91, p. 7458; Amend Coun. J. 7-10-96, p. 24982; Amend Coun. J. 11-12-97, p. 56813; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)
A. For all periods before December 31, 1999, any payment or remittance received for a tax period will be applied first to penalties for the period, then to interest due for the period, and then to the tax due for the period.
B. For all periods after December 31, 1999, any payment or remittance received for a tax period will be applied first to the interest due for the period, then to the tax due for the period and then to the penalties for the period.
(Added Coun. J. 11-14-91, p. 7458; Amend Coun. J. 5-12-99, p. 106; Amend Coun. J. 3-31-04, p. 20916, § 3.4)
A. If a tax ordinance does not provide for a credit or refund, and it appears that an amount of tax, interest or penalty has been paid or remitted in error to the department, the taxpayer or tax collector may file a claim for credit or refund; provided, however, that no person shall be eligible for a credit or refund unless the person paid or remitted the tax, interest or penalty directly to the department.
B. Any claim for a credit or refund must be filed in writing on forms provided by the department not later than three years from the date on which payment or remittance in error was made.
C. The department shall allow a claim for credit or refund only for sums paid or remitted through a mistake of fact, an error of law or as provided by subsection D. of this section.
D. In the event that a court of competent jurisdiction has declared a tax unconstitutional and the judgment of constitutional invalidity is final and all rights to appeal open to the department have expired or have been exhausted, then the department shall allow a claim for credit or refund but only if the claim is filed by a taxpayer or tax collector who, at the time of payment or remittance (1) paid or remitted the tax under written protest, or (2) paid or remitted the tax into an escrow account established by administrative order.
E. No credit or refund shall be allowed for any amount paid or remitted in error unless:
(1) In the case of a claim for credit or refund by a taxpayer, the taxpayer either:
a) Bore the burden of paying the tax and did not shift the burden to another person, or
b) Shifted the burden of paying the tax to another person, but has unconditionally repaid the tax to that person;
(2) In the case of a claim for credit or refund by a tax collector, the tax collector has unconditionally repaid the tax collected to the person from whom it was collected.
F. Any credit or refund allowed under this section will bear simple interest at the rate of three percent per annum, calculated daily, based on a 365 day calendar year, from the date the department received the erroneous payment or remittance until the date the comptroller approves in writing a credit or refund; provided, however, that interest will not accrue on a credit or refund resulting from overpayments of an annual return tax, requested pursuant to Section 3-4-186(H) of this chapter.
G. (1) Except as provided in Section 3-4-330 of this chapter or by order of court, no credit or refund shall be allowed for any sum paid or remitted in satisfaction of a final assessment or in settlement of any claim for taxes, interest or penalties asserted by the department.
(2) No credit or refund shall be allowed if a claimant owes the city a debt, as defined by Section 4-4-150 of this Code; provided, however, that the department may allow a credit or refund if the comptroller determines that: (a) the claimant has entered into an agreement with the department or other appropriate city department for the payment of all debts owed the city and such claimant is in compliance with the agreement; or (b) the claimant is contesting liability for or the amount of the debt in a pending administrative or judicial proceeding; or (c) the claimant has filed a petition in bankruptcy and the debts owed to the city are dischargeable in bankruptcy.
H. A claim for credit or refund shall be acknowledged in writing by the comptroller. The written acknowledgment shall identify the claim and state the date upon which it was received.
I. (1) As soon as practicable after a claim for credit or refund is filed, the comptroller shall examine the credit or refund request and determine the amount of credit or refund due, if any, and shall issue a written notice to the claimant of a tentative determination.
(2) The tentative determination of claim shall be prima facie correct and the claimant shall have the burden of proving with books, records, or other documentary evidence that the determination is incorrect.
(3) If the claimant disagrees with the tentative determination, the claimant may file with the department a written protest. The written protest which shall be on a form prescribed by the comptroller must be filed within 35 days of receiving the written notice of tentative determination of a claim.
(4) If a timely protest is filed with the department, the comptroller shall refer the protest to the department of administrative hearings upon the written request of the taxpayer or tax collector or at such earlier time as the comptroller deems appropriate. The department of administrative hearings thereupon shall fix the time and place for a hearing, give written notice thereof, and appoint an administrative law officer who shall conduct the hearing. The director of the department of administrative hearings may also promulgate additional governing procedures for the conduct of hearings held under this section.
(5) Any hearing held under this subsection shall be governed by the procedures set forth in Section 3-4-340 of this chapter.
(6) Upon conclusion of the hearing, the administrative law officer shall issue a final determination. Written notice of the administrative law officer's final determination shall be given to the claimant.
(7) If the claimant fails to file a timely written protest, the tentative determination shall become final without further notice.
J. The comptroller may issue to a claimant a letter of credit if the comptroller determines that a claimant may be able to use the credit in the foreseeable future or may issue a refund, in lieu of a letter of credit. Refunds shall be paid in the order of issuance from funds appropriated to the department for that purpose.
K. Application of credits to tax liabilities from periods either before or after the period for which credits are associated shall be made as follows:
1. If there are no liabilities to net against the credits, or the credits are greater than the liabilities in the same period, the credits will first be applied as payments to liabilities in prior periods.
2. The application of credits will begin in the oldest liability period within the statute of limitations, as set forth in Section 3-4-120, and apply within that period first to interest, next to tax, and finally to penalties. If credits remain, they will be applied to the next oldest period in the same manner, until all prior liabilities are paid or the credits are extinguished.
3. If a credit remains after all preceding liabilities have been satisfied, and the taxpayer is current in all tax filings, applicable interest will be calculated, and a refund will be issued for the resulting amount.
4. When a credit is applied to a tax liability in a prior period, the liability will continue to accrue interest through the due date of the credit period. Unpaid tax balances after application of a credit will continue to accrue interest through the due date of the next applied credit or the payment postmark date.
5. When a credit is applied to a later liability period, any unpaid balance will continue to accrue applicable interest through the date of the next applied credit.
6. When a credit is applied to a later liability period, the credit will accrue applicable interest through the due date of the liability period in which the credit was applied. If there is a remaining credit balance, it will continue to accrue applicable interest until applied to another deficiency or refunded.
7. Application of a credit to tax liabilities where more than one type of tax liability exists shall be divided proportionately between the tax liabilities so that each tax liability shall share the credit on the basis of the amount due for each tax liability.
(Added Coun. J. 11-14-91, p. 7458; Amend Coun. J. 11-17-93, p. 42192; Amend Coun. J. 7-10-96, p. 24982; Amend Coun. J. 11-12-97, p. 56813; Amend Coun. J. 4-29-98, p. 66564; Amend Coun. J. 5-12-99, p. 106; Amend Coun. J. 11-17-99, p. 18040, § 1.2; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3; Amend Coun. J. 11-16-16, p. 38042, Art. III, § 1; Amend Coun. J. 10-27-21, p. 40504, Art. VI, § 1)
A. Except as provided by subsection B., C. or D. of this section, the comptroller shall not issue any notice of tax determination and assessment to a taxpayer or tax collector for any period more than four years after the end of the calendar year in which the return for the period was filed with the department or the end of the calendar year in which the return for the period was due, whichever occurs later.
B. No statute of limitations applies where the person named in the tax determination and assessment: (1) filed a fraudulent tax return or remittance return or otherwise committed fraud; (2) failed to remit collected taxes to the department; or (3) agrees to waive the applicable statute of limitations.
C. [Reserved.]
D. Subject to the provisions of subsection B of this section, the statute of limitations set forth in subsection A of this section shall be extended by two years with respect to any period if: (1) no tax return or remittance return was filed for that period; or (2) the amount of tax paid for that period was less than 75 percent of the tax due; or (3) for any tax, during any four year period for which the Comptroller may issue a notice of tax determination and assessment, the total tax paid or remitted was less than 75 percent of the total tax due for that four year period.
E. If an amended return was filed for any period, the four year period shall commence at the end of the calendar year in which the amended return was filed; provided, however, that subject to the provisions of subsection B of this section the Department shall not issue a notice of tax determination and assessment to a taxpayer or tax collector more than six years after the original return was filed.
F. [Reserved.]
(Added Coun. J. 11-14-91, p. 7458; Amend Coun. J. 5-12-99, p. 106; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3; Amend Coun. J. 11-16-16, p. 38042, Art. III, § 1)
It shall be presumed that any tax, interest, penalty or nontax debt assessed by the comptroller is due and owing until the contrary is established. The person assessed has the burden of proving with documentary evidence, books and records that any tax, interest, penalty or nontax debt assessed by the comptroller is not due and owing.
(Added Coun. J. 11-14-91, p. 7458; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)
A. Seller's/Transferor's Notice Requirement.
(1) If a person conducts a business or activity that requires filing a tax return or remittance return with the department on any periodic basis or that requires licensing by the city pursuant to Title 4 of this Code, and the person:
(a) Sells or transfers the business or activity that requires the person to pay or remit a tax or be licensed by the city; or
(b) Sells or transfers a major part of the assets of the business or activity; or
(c) Sells or transfers, other than in the ordinary and usual course of business, a major part of any one or more of the following assets: (i) the stock of goods or inventory of the person; (ii) furniture or fixtures; (iii) machinery or equipment; or (iv) real property, then the person shall file with the department written notice of the intended sale or transfer.
(2) The seller's or transferor's written notice shall be filed with the department at least 45 days prior to the date of sale or transfer on a form provided by the department. The written notice shall set forth:
(a) The name of the seller or transferor;
(b) The name of the purchaser or transferee;
(c) A description of the property or business or activity to be sold;
(d) The purchase or transfer price;
(e) The date of sale or transfer; and
(f) Any other information the department may reasonably require.
(3) Within 30 days after sale or transfer, the seller or transferor shall file any tax returns or remittance returns and pay or remit to the department any taxes, interest, penalties, nontax debts and other debts due or accrued, and not paid or remitted, through the date of the sale or transfer.
B. Purchaser's / Transferee's Notice Requirement.
(1) At least 45 days prior to the date of sale or transfer, the purchaser or transferee shall file with the department written notice of intended sale or transfer on the form provided for in subsection A(2) of this section.
(2) The purchaser or transferee may give written notice in conjunction with the seller's or transferor's written notice.
(3) If the purchaser or transferee fails to file notice as required herein, then the purchaser or transferee shall be jointly and severally liable with the seller or transferor for the amount of taxes, interest, penalties, nontax debts and other debts owed by the seller or transferor to the city, but not exceeding fair market value of the property acquired by the purchaser or transferee.
C. Department's Response To Notice.
(1) If a timely written notice as required by this bulk sales provision is filed, then the department shall:
(a) Perform an audit of the seller's or transferor's books and records or otherwise determine all taxes, interest, penalties, nontax debts and other debts due or accrued through the date of sale or transfer; and
(b) At least 15 days prior to the date of sale or transfer, serve written notice on both the seller (transferor) and the purchaser (transferee) of the amount to be withheld from the purchase or transfer price to cover all taxes, interest, penalties, nontax debts and other debts due or accrued and unpaid or unremitted through the date of sale or transfer.
(2) Upon receiving timely written notice from the department of the amount to be withheld, the purchaser or transferee shall withhold this amount from the purchase or transfer price or, if payment of money or property is not involved, the purchaser or transferee shall withhold the performance that constitutes consideration for the sale or transfer, until the seller or transferor produces: (a) a receipt from the department showing that all taxes, interest, penalties, nontax debts and other debts have been paid or remitted, or (b) a certificate from the department showing no tax, interest, penalties, nontax debts or other debts are due.
(3) If the department fails to provide timely written notice to the purchaser or transferee as provided by subsection C(1)(b) of this section, then the purchaser or transferee shall be relieved of any duty to withhold from the purchase or transfer price and shall have no liability for taxes, interest, penalties, nontax debts or other debts due from the seller or transferor through the date of sale or transfer.
(4) If the department provides timely written notice to the purchaser or transferee of the amount to be withheld from the purchase or transfer price and that amount is withheld, then the purchaser's or transferee's liability for any taxes, interest, penalties, nontax debts or other debts through the date of sale or transfer shall be limited to the amount withheld.
(5) If the purchaser or transferee fails to withhold from the purchase or transfer price the amount requested by the department, then the purchaser or transferee shall be jointly and severally liable with the seller or transferor for all taxes, interest, penalties, nontax debts and other debts owed by the seller or transferor to the city but not exceeding the lesser of the fair market value of the property acquired or the amount requested by the department.
(6) The purchaser or transferee shall pay to the department upon the department's written demand any amount withheld under this bulk sales provision.
D. Seller's/transferor's continuing liability. Nothing in this Section 3-4-140 shall be construed to relieve the seller or transferor of liability for outstanding taxes, interest, penalties, nontax debts or other debts, except that any payments received from the purchaser or transferee pursuant to this section shall reduce the seller's or transferor's liability to the city.
E. The statutes of limitations provided by Section 3-4-120 of this chapter shall apply with respect to the issuance of a notice of tax determination and assessment to the purchaser or transferee in a bulk sale.
(Added Coun. J. 11-14-91, p. 7458; Amend Coun. J. 5-12-99, p. 106; Amend Coun. J. 12-4-02, p. 99931, § 2.1)
ARTICLE II. POWERS OF THE COMPTROLLER (3-4-150 et seq.)
A. (1) In addition to the powers provided in other provisions and chapters of this Code, including Chapter 2-32 of this Code, the comptroller is empowered to adopt, promulgate, and enforce rules and regulations pertaining to the administration and enforcement of the provisions of this chapter and any tax ordinance.
(2) The comptroller may from time to time prescribe and publish rules or regulations concerning the manner, format and medium in which tax returns are to be filed and tax payments or remittances are to be made. Any such rules or regulations shall include a provision allowing a taxpayer or tax collector who may suffer a financial or other hardship to file and pay or remit by other means, if the taxpayer or tax collector demonstrates the hardship in a written application to the comptroller. Any such rules or regulations may also include a penalty of $20 per incident for failure to comply with the rules or regulations, which shall be in lieu of the penalties provided by Sections 3-4-200, 3-4-210 and 3-4-220 of this chapter. If the comptroller determines that the taxpayer or tax collector had reasonable cause for the failure to comply, then the $20 penalty shall be waived.
B. (1) The comptroller may correct or amend any tax return or remittance return at any time.
(2) The comptroller is authorized to determine and assess any tax, interest or penalty due under this chapter, or under any tax ordinance, and may amend a tax determination and assessment at any time before it becomes final. Any tax determination and assessment, or amended tax determination and assessment, shall be deemed prima facie correct and the burden shall be on the person assessed to prove the contrary.
C. (1) In addition to the comptroller's authority to determine and collect any nontax debt by any other means, the comptroller is further authorized to assess any nontax debts due and owing the city by adding them to a tax determination and assessment.
(2) The department may issue, correct or amend any assessment of any nontax debt at any time before the tax determination and assessment becomes final. All initial nontax debt assessments and any amended nontax debt assessments shall be deemed prima facie correct and the burden shall be on the person assessed a nontax debt to prove the contrary.
D. The department is authorized to examine the books and records of any taxpayer or tax collector during business hours of the day to verify the accuracy of any return made or, if no return was made, then to ascertain and assess the tax imposed by any tax ordinance.
E. In the course of any audit, investigation or other inquiry, the comptroller may require any taxpayer or tax collector to file information on a form prescribed and furnished by the department.
F. The comptroller shall provide for a conference between a taxpayer or tax collector and a representative of the department to be held after the audit of the taxpayer or tax collector is completed and at least 20 calendar days before the comptroller issues a notice of tax determination and assessment; provided, however, that the department shall not be required to hold a conference if the comptroller determines in his or her sole discretion either (a) that delay will jeopardize the collection of any unpaid taxes or (b) that the taxpayer or tax collector will not agree to a date for holding the conference that is within 14 calendar days after the department notifies the taxpayer or tax collector that the audit has been completed. Conferences shall be held in person if deemed practicable by the department or otherwise by telephone.
G. The comptroller, with the approval of the corporation counsel, may compromise all disputes in connection with any tax or interest due or any tax, interest or penalty assessed.
H. For any debt arising in connection with a tax for which returns are required to be filed with the department, if the comptroller determines in his or her discretion that the costs of billing, maintaining, processing and otherwise administering the debt would exceed the amount of the debt itself, then the comptroller may order that no billing, maintaining, processing or other administrative costs be incurred with respect to such debt; provided, however, that such action on the part of the comptroller shall not be construed as a release, cancellation or discharge of the debt itself.
(Added Coun. J. 11-14-91, p. 7458; Amend Coun. J. 5-12-99, p. 106; Amend Coun. J. 11-17-99, p. 18040, § 1.2; Amend Coun. J. 5-24-06, p. 76266, § 1; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)
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