(a) As soon as practicable after each return is received, the urban county government may examine and audit the return. If the amount of tax computed by the urban county government is greater than the amount returned by the business entity, the additional tax shall be assessed and a notice of assessment mailed to the business entity by the urban county government within five (5) years from the date the return was filed, except as otherwise provided in this subsection.
(1) In the case of a failure to file a return or of a fraudulent return the additional tax may be assessed at any time.
(2) In the case of a return where a business entity understates net profit, or omits an amount properly includable in net profits, or both, which understatement or omission, or both, is in excess of twenty-five (25) percent of the amount of net profit stated in the return, the additional tax may be assessed at any time within six (6) years after the return was filed.
(3) In the case of an assessment of additional tax relating directly to adjustments resulting from a final determination of a federal audit, the additional tax may be assessed before the expiration of the times provided in this subsection, or six (6) months from the date the urban county government receives the final determination of the federal audit from the business entity, whichever is later.
(4) The times provided in this subsection may be extended by agreement between the business entity and the urban county government. For the purposes of this subsection, a return filed before the last day prescribed by law for filing the return shall be considered as filed on the last day. Any extension granted for filing the return shall also be considered as extending the last day prescribed by law for filing the return.
(b) Every business entity shall submit a copy of the final determination of the federal audit within thirty (30) days of the conclusion of the federal audit.
(c) The urban county government may initiate a civil action for the collection of any additional tax within the times prescribed in subsection (a) of this section.
(Ord. No. 267-2007, § 10, 12-6-07)