(A) As soon as practicable after each return is received, the city may examine and audit the return. If the amount of tax computed by the city is greater than the amount returned by the employer or person, the additional tax shall be assessed and a notice of assessment mailed to the employer or person by the city 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 an employer or employee understates gross earnings, or omits an amount properly includable in gross earnings, which understatement or omission, or both, is in excess of twenty-five percent (25%) of the amount of gross earnings 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 division, or six (6) months from the date the city receives the final determination of the Federal audit from the employer or employee, whichever is later.
(4) The times provided in this subsection may be extended by agreement between the employer or employee and the city. 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 employer or employee 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 city may initiate a civil action for the collection of any additional tax within the times prescribed in division (A) of this section
(Ord. 2017-1743, passed 8-24-17)