(A) Minimum time periods for taxpayer response.
(1) The taxpayer shall have at least 30 calendar days from the mailing date to respond to requests for information by the Tax Administrator. The Tax Administrator shall grant a reasonable extension upon written application explaining the reason(s) necessitating the extension which must amount to good cause. If the Tax Administrator denies a request for extension, the Tax Administrator must inform the taxpayer in writing of the basis for the denial and that the taxpayer must immediately provide the requested information. If the Tax Administrator grants an extension request, he or she must notify the taxpayer in writing of the amount of extension granted. Generally, an extension will not exceed 30 calendar days in length, and may be less, depending on the circumstances.
(2) The Tax Administrator shall notify the taxpayer of the procedures to obtain an extension in its initial request for information. Please refer to the notice explaining the request for extension of time to provide information in this subchapter.
(3) The Tax Administrator shall take no lawful action against a taxpayer for the tax year in question until the expiration of the applicable response period for submission of the information requested, including extensions. For example, the Tax Administrator may not engage in any collection efforts until after expiration of the response period. After expiration of the response period, the Tax Administrator may engage in collection efforts permitted by the LTBR and discussed in § 32.029.
(B) Requests for prior year tax returns.
(1) Except as provided in division (B)(2) below, an initial inquiry by the Tax Administrator regarding a taxpayer’s compliance with any eligible tax may include taxes required to be paid or tax returns required to be filed no more than three years prior to the mailing date of the notice.
(2) (a) The Tax Administrator may make an additional subsequent request for a tax return or supporting information if, after the initial request, the Tax Administrator determines that the taxpayer failed to file a tax return, under reported income, or failed to pay a tax for one or more of the tax periods covered by the initial request. Generally, however the Tax Administrator should not make routine requests for additional prior year returns.
(b) Notwithstanding the foregoing, the limitations in division (B)(2)(a) above on subsequent requests for prior year returns shall not apply if the Tax Administrator has sufficient information to indicate that the taxpayer failed to file a required return or to pay an eligible tax which was due more than three years prior to the date of the notice. Thus, in situations involving failure to file a required return or to pay a required eligible tax, the Tax Administrator shall, in his or her discretion, have the ability to request prior year returns due more than three years prior and supporting information.
(C) Use of federal or state tax information. The Tax Administrator may require a taxpayer to provide copies of the taxpayer’s federal individual income tax return if the Tax Administrator can demonstrate that the federal tax information is reasonably necessary for the enforcement or collection of tax and the information is not available from other available sources or the state’s Department of Revenue. The Tax Administrator may also require a taxpayer to provide copies of the taxpayer’s state individual income tax return.
(Ord. 1999-3, passed 12-21-1999)