3-4-120 Statute of limitations.

   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)

3-4-130 General presumptions and burden of proof.

   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)

3-4-140 Bulk sales or transfers.

   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.)

3-4-150 General powers.

   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)

3-4-151 Additional duties of the department.

   In addition to all other rights, duties and responsibilities imposed by this Code, the department shall have the following duties and responsibilities:

   A.   The department shall furnish a written statement of rights to every taxpayer or tax collector that is issued a notice of tax assessment and determination, a tax bill, or a denial of a claim for credit or refund, or that requests a copy of such a written statement of rights. The statement shall describe in summary form the rights of taxpayers and tax collectors, and the obligations of the department, with respect to the administration, enforcement and collection of city taxes.

   B.   The department shall provide a brief written explanation of all tax liabilities and penalties on or with every tax notice issued.

   C.   The department shall not cancel any payment agreement unless the taxpayer or tax collector fails to comply with the material terms of the agreement, such as failing to pay any amount due, and fails to cure any breach of the agreement within the time permitted by the agreement or by the department.

   D.   Except in judicial proceedings, the department shall place any seized taxpayer or tax collector bank accounts in escrow with the bank for 20 calendar days immediately following the seizure to permit the taxpayer or tax collector to correct any department error.

   E.   In coordination with the Office of Budget and Management, the department shall publish monthly a report of all corporate fund revenue collected for the current fiscal year. Such monthly report shall include: (i) the total collections for each revenue category during the preceding month and the current fiscal year to date; (ii) the variance between expected and actual revenues pursuant to the applicable annual budget; and (iii) the total collections for the corresponding month in the preceding year and preceding year to date by revenue category. The department shall publish each monthly report required under this section at a prominent location on its website no later than the last day of each month.

   F.   The department shall publish at a prominent location on its website a current list of taxes and whether such taxes are remitted on a monthly, quarterly, or annual basis.

(Added Coun. J. 5-12-99, p. 106; Amend Coun. J. 4-21-21, p. 29449, § 1)

3-4-152 Problems resolution.

   The comptroller shall establish a problems resolution committee within the staff of the department, which shall have as its primary purpose the resolution of complex administrative or processing problems concerning taxes, expediting of matters when unreasonable delays have occurred, ensuring that taxpayer rights are protected in the administration of the tax laws and giving of priority treatment to time- sensitive inquiries or cases of a truly urgent nature. The committee shall consider matters referred to it by the comptroller in his or her sole discretion, either at the request of a taxpayer or otherwise as the comptroller may determine. Any communication, recommendation, action or decision of the comptroller or committee regarding the problems resolution process shall be confidential and shall be within the sole discretion of the comptroller or committee.

(Added Coun. J. 5-12-99, p. 106; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3)