2.7.807: EXAMINATION OF RETURNS:
As soon as practicable after the return is filed, the Director may examine it.
   A.   Recomputation: If it then appears that the correct amount of tax to be remitted is greater or less than that shown in the return, the tax shall be recomputed by the Director.
   B.   Overpayment: If the amount paid exceeds that which is due, the excess shall be refunded or credited against any subsequent remittance from the same person.
   C.   Underpayment: If the amount paid is less than the amount due, the difference, together with interest thereon at the rate as specified in section 2.7.1004 of this article, from the time the return was due, shall be paid by the taxpayer within twenty (20) days after written notice and demand to the taxpayer from the Director.
   D.   Negligent Deficiency: If any part of the deficiency in payment of sales or use tax is due to negligence, but without intent to defraud, there shall be added a penalty of ten percent (10%) of the total amount of the deficiency, and in the case interest shall be collected at the rate as specified in section 2.7.1004 of this article, on the amount of the deficiency from the time the return was due, from the person required to file the return, which interest and penalty shall become due and payable within twenty (20) days after written notice and demand is made by the Director.
   E.   Fraudulent Deficiency: If any part of the deficiency is due to fraud with the intent by the taxpayer to evade the tax, then there shall be added a penalty of one hundred percent (100%) of the total amount of the deficiency, and in the case, the whole amount of the tax unpaid, including additions, shall become due and payable twenty (20) days after written notice and demand is made by the Director, and an additional three percent (3%) per month on the amount shall be added from the date the return was due until paid. (Ord. 85-274; Ord. 01-42)