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(c) the Director of Practice is deemed to mean the director or his designee.

Section 12-60-410. The department shall assess all state taxes, including interest, additions to taxes, and penalties. An assessment is made by an employee of the department recording the liability of the taxpayer in the office of the department in accordance with rules or procedures prescribed by the department. Upon request of the taxpayer, the department shall furnish a copy of the assessment. The department may, at any time within the time period for assessment, make a supplemental assessment when it is determined that an assessment is imperfect or incomplete. The department may not assess taxes imposed by the same article, or chapter if the chapter has no article, for any tax period for which a final order has been issued by the Administrative Law Judge Division or a court determining the taxpayer s liability for that tax period, except in the case of fraud.

Section 12-60-420. If a division of the department determines there is a deficiency in any state tax, it may send by first class mail or deliver a proposed assessment to the taxpayer. The proposed assessment must explain the basis for the proposed assessment and state that an assessment will be made unless the taxpayer protests the proposed assessment as provided in Section 12-60-450. The department shall make available forms which taxpayers may use to protest proposed assessments. The proposed assessment is effective if mailed to the taxpayer s last known address even if the taxpayer refuses or fails to take delivery, is deceased, or is under a legal disability, or, if a corporation, has terminated its existence. For a joint tax return, one proposed assessment may be mailed to both taxpayers unless the department has notice that the taxpayers have separate addresses in which event a duplicate original of the joint proposed assessment must be sent to each taxpayer at his last known address.

Section 12-60-430. If a taxpayer fails or refuses to make any report or to file a return required by the provisions of this title or required to be filed with the department, the department may make an estimate of the tax liability from the best information available, and issue a proposed assessment for the taxes, including any penalties and interest.

(1) mathematical or clerical errors;

(2) interest imposed by this title or subject to assessment or collection by the department;

(3) amounts reported on a return or other document, or paid as tax; or

(4) assessments as provided in Section 12-60-910.
A taxpayer may request an abatement of any assessment due to a mathematical or clerical error within thirty days of the date of the assessment. Upon receipt of the request for abatement the department shall abate the assessment. Any further assessment of the tax with respect to which an abatement is made under this paragraph is subject to the proposed assessment procedures described in this chapter. No levy or collection proceeding may begin for a mathematical or clerical error during the thirty-day period during which a taxpayer may request an abatement.

Section 12-60-450. (A) A taxpayer can appeal a proposed assessment by filing a written protest with the department within thirty days of the date of the proposed assessment. The department may extend the time for filing a protest at any time before the period has expired.
(B) The written protest must contain:

(1) the name, address, and telephone number of the taxpayer;

(2) the appropriate taxpayer identification number or numbers;

(3) the tax period or date for which the tax was proposed;

(4) the nature and kind of tax in dispute;

(5) a statement of facts supporting the taxpayer s position;

(6) a statement outlining the reasons for the appeal, including any law or other authority upon which the taxpayer relies; and

(7) any other relevant information the department may reasonably prescribe. The taxpayer does not need to provide legal or other authority, as provided in item (6), if the total amount of the proposed assessment is less than two thousand five hundred dollars, unless the taxpayer is a partnership, an S corporation, an exempt organization, or an employee plan and the proposed tax is imposed by Chapter 7, 11, or 13 of this title.

(D) After the protest is filed and the taxpayer has completed or refused any other internal administrative appeals procedures provided by the department, the taxpayer and department representative shall stipulate the facts and issues upon which they can agree, and may attempt to settle the case.

If the taxpayer fails to respond or participate in the process with the department representative, the department may view the appeal as abandoned and make a department determination using any information provided in accordance with Section 12-60-30(16)(c)(iii).

(E) (1) The department will make a department determination using the information provided by the taxpayer in accordance with Section 12-60-30(16)(c)(iii).

(2) A department determination adverse to the taxpayer must be in writing and must:

(a) be sent by first class mail or delivered to the taxpayer;

(b) explain the basis for the department s determination;

(c) inform the taxpayer of his right to request a contested case hearing; and

(d) explain that the taxes will be assessed in thirty days and payment demanded unless the taxpayer requests a contested case hearing.

Section 12-60-460. Upon exhaustion of his prehearing remedy, a taxpayer may seek relief from the department s determination by requesting a contested case hearing before the Administrative Law Judge Division or the DMV hearing officers, as appropriate. This request must be made within thirty days after the date the department s determination was sent by first class mail or delivered to the taxpayer. Requests for a hearing before the Administrative Law Judge Division must be made in accordance with its rules. Requests for a hearing before the DMV hearing officers must be made to the department representative.

Section 12-60-470. (A) A taxpayer may seek a refund of any state tax by filing a written claim for refund with the department. A claim for refund is timely filed if filed within the period specified in Section 12-54-85 even though the time for filing a protest under Section 12-60-450 has expired and no protest was filed.

(B) The refund claim must specify:

(1) the name, address, and telephone number of the taxpayer;

(2) the appropriate taxpayer identification number or numbers;

(3) the tax period or date for which the tax was paid;

(5) the amount which the taxpayer claims was erroneously paid;

(6) a statement of facts supporting the taxpayer s position;

(7) a statement outlining the reasons for the claim, including any law or other authority upon which the taxpayer relies; and

(8) any other relevant information that the department may reasonably require.

The department will make forms available which taxpayers may use to file a claim for refund.

(C) A person who acts as a collector and remitter of state taxes may claim a credit or refund of the tax collected only if the person establishes that he has paid the tax in question to the State, and

(1) repaid the tax to the person from whom he collected it; or

(2) obtained the written consent of the person from whom he collected the tax to the allowance of the credit or refund.

(D) The appropriate division of the department shall decide what refund is due, if any, and give the taxpayer written notice of its decision as soon as practicable after a claim has been filed.

(E) A taxpayer may appeal the division s decision by filing a written protest with the department following the procedures provided in Section 12-60-450. For purposes of complying with the provisions of Section 12-60-450, the written denial of any part of a claim for refund is the equivalent of a proposed assessment.

(F) Upon exhaustion of his prehearing remedy, a taxpayer may seek relief from the department s determination by requesting a contested case hearing before the Administrative Law Judge Division or the DMV hearing officers, as appropriate. This request must be made within thirty days after the date the department s determination was sent by first class mail or delivered to the taxpayer. Requests for a hearing before the Administrative Law Judge Division must be made in accordance with its rules. Requests for a hearing before the DMV hearing officers must be made to the department representative.

(G) Even if a taxpayer has not filed a claim for refund, if the department determines that money has been erroneously or illegally collected from a taxpayer or other person, the department, in its discretion, may, upon making a record in writing of its reasons, grant a refund to the taxpayer or other person.

(H) A claim for refund can be amended prior to, but not after, the expiration of the time for filing the claim for refund under Section 12-54-85(F). The claim as amended must be treated as if it were first

(I) A taxpayer who requests a contested case hearing as provided in Section 12-60-460 is considered to have elected his remedy and is denied the benefits of this section.

Section 12-60-480. When a taxpayer prevails on the merits in a lawsuit seeking a refund or abatement of a license fee or any tax based upon an allegation that the tax or fee has been imposed wrongfully as a matter of law, the department shall issue a refund to all similarly situated taxpayers who properly applied for a refund pursuant to the requirements of this chapter. A taxpayer is considered to have prevailed on the merits in a lawsuit only when a tax or license fee is refunded or abated as a result of a finding of law by a court of competent jurisdiction, and after the exhaustion of, or expiration of the time for making, all relevant appeals. A taxpayer must not be considered similarly situated if the taxpayer did not file a claim for refund within the period provided in Section 12-54-85.

Section 12-60-490. If a taxpayer is due a refund, the refund must be applied first against any amount of that same tax that is assessed and is currently due from the taxpayer. The remaining refund, if any, must then be applied against any other state taxes that have been assessed against the taxpayer and that are currently due, or offset as provided in Article 3, Chapter 54 of this title. If any excess remains, the taxpayer must be refunded the amount plus interest as determined in Section 12-54-25, or, at the taxpayer s request, it may be credited to future tax liabilities.

Section 12-60-500. If it is determined that a refund is due of any tax paid to, or collected by the State, the department shall issue its order to the State Treasurer to refund the taxes. Refunds must be paid in preference to other claims against the State Treasury. If the State Treasurer does not have in his custody or possession enough funds to pay a refund of taxes he shall request that the General Assembly appropriate the refund.

Section 12-60-510. Before a taxpayer may seek a determination of a tax liability by an Administrative Law Judge or DMV hearing officer under Section 12-60-460 or 12-60-470, he shall exhaust the prehearing remedy. If a taxpayer requests a contested case hearing before the Administrative Law Judge Division or DMV hearing officers without exhausting his prehearing remedy because he failed to file a protest, the administrative law judge or DMV hearing officer shall dismiss the action without prejudice. If the taxpayer failed to provide the department with the facts, law, and other authority supporting his position, he shall provide the department with the facts, law, and other authority he failed to present to

Upon remand the department has thirty days, or a longer period ordered by the administrative law judge or DMV hearing officer, to consider the new facts and issues and amend its department determination. The department shall issue its amended department determination in the same manner as the original. The taxpayer has thirty days after the date the department s amended determination was sent by first class mail or delivered to the taxpayer to again request a contested case hearing. Requests for a hearing before the Administrative Law Judge Division must be made in accordance with its rules. Requests for a hearing before the DMV hearing officers must be made to the department representative. If the department fails to issue its amended department determination within thirty days of the date of the remand, or a longer period ordered by the administrative law judge or DMV hearing officer, the taxpayer can again request a contested case hearing. At the new hearing the facts, law, and other authority presented at the original hearing must be deemed to have been presented in a timely manner for purposes of exhausting the taxpayer s prehearing remedy. The statute of limitations remains suspended by Section 12-54-85(G) during this process.

Section 12-60-520. A taxpayer who requests a contested case hearing may elect to designate the action as a small claims case if no more than ten thousand dollars of taxes, including penalties, but not including interest, are in controversy at the time of filing the request for a contested case hearing. The designation must be made at the time the request for a contested case hearing is made and be included in the request. The decision of the administrative law judge or DMV hearing officer in an action designated as a small claims case is final and conclusive and may not be reviewed by any court. A case decided under this section may not be cited by either the department or any taxpayer in any future action and establishes no precedent except for the taxpayer involved and the tax period or periods in controversy. This section does not apply to actions that raise constitutional issues.

Section 12-60-910. (A) If the department finds that the assessment or the collection of a tax or a deficiency for any tax period is jeopardized in whole or in part by delay, the department may terminate the taxpayer s current tax period and immediately assess the tax for the current period

(B) If a jeopardy assessment is made under subsection (A), notice of the jeopardy assessment must be provided to the taxpayer by any of the following means:

(1) personal delivery of the assessment to the taxpayer;

(2) mailing a copy of the assessment to the last known address of the taxpayer by first class mail; or

(3) any other means reasonably designed to provide notice to the taxpayer.

(C) A jeopardy assessment is immediately due and payable, and proceedings for collection may begin as soon as the jeopardy assessment is made.

(D) A taxpayer may obtain a stay of the collection for all or part of the jeopardy assessment by:

(1) posting a bond with the department equal to the amount of the assessment that will be stayed, including interest to the date of payment; or

(2) providing security in any amount the department considers necessary to secure all or part of the amount of the jeopardy assessment. The security required by the department cannot exceed twice the assessed amount for which the taxpayer seeks a stay.

(E) The department may stay collection at any time it finds that an assessment or the collection of a tax in whole or in part is no longer in jeopardy.

(F) The taxpayer may at any time waive any part or all of the stay of collection.

(G) Where collection of any part or all of the jeopardy assessment is stayed under this section, the period of limitation on any action to collect the assessment is tolled during the time of the stay.

(H) The bond or security must be reduced if:

(1) the taxpayer pays any part of the tax covered by the bond or security and the taxpayer requests the reduction. The reduction must be proportionate to the amount paid.

(2) the department abates any portion of the jeopardy assessment. The reduction in the bond or security must be proportionate to the amount abated.

Section 12-60-920. (A) Within five days after the day on which a jeopardy assessment is made, the department shall provide the taxpayer

(B) Within thirty days after the day on which the taxpayer is furnished the written statement described in subsection (A), or within thirty days after the last day of the period within which the statement is required to be furnished, the taxpayer may request a contested case hearing before the Administrative Law Judge Division. Requests for a hearing before the Administrative Law Judge Division must be made in accordance with its rules. The only issue for determination under this subsection is whether the jeopardy assessment is reasonable and appropriate.

(C) Within ten days after an action is commenced under subsection (B), the department shall file its response with the Administrative Law Judge Division. Within twenty days after the department s response or as soon thereafter as practicable, an administrative law judge shall determine whether or not the making of the jeopardy assessment is reasonable under the circumstances, and whether the amount so assessed or demanded as a result of the action taken under Section 12-60-910 is appropriate under the circumstances. The running of the ten-day and twenty-day periods begins on the day on which service is made on the department.

(D) If the administrative law judge determines that the making of the jeopardy assessment is unreasonable or that the amount assessed or demanded is inappropriate, he may order the department to abate the assessment, to redetermine, in whole or in part, the amount assessed or demanded, or to take other action as the judge finds appropriate.

(E) The decision made by the administrative law judge under this section is final and conclusive and may not be reviewed by any court.

(F) (1) In an action under subsection (B) involving the issue of whether the making of an assessment under Section 12-60-910 is reasonable under the circumstances, the burden of proof in respect to the issue is on the department.

(2) In an action under subsection (B) involving the issue of whether an amount assessed or demanded as a result of action taken under Section 12-60-910 is appropriate under the circumstances, the department shall provide a written statement containing any information on which its determination of the amount assessed was based, but the burden of proof in respect to the issue is on the taxpayer.

Section 12-60-1310. (A) If a division of the department denies a person any license that the department administers, or sends by first class

(B) The written protest must contain:

(1) the name, address, and telephone number of the person;

(2) the appropriate taxpayer, driver, or vehicle identification number or numbers, if any;

(3) the kind of license in dispute;

(4) a statement of facts supporting the person s position;

(5) a statement outlining the reasons for the appeal, including any law or other authority upon which the person relies; and

(6) any other relevant information the department may reasonably prescribe.

(C) After the protest is filed and the person has completed or refused any other internal administrative appeals procedures provided by the department, the person and department representative shall stipulate the facts and issues upon which they can agree, and may attempt to settle the case. If the person fails to respond or participate in the process with the department representative, the department may view the appeal as abandoned and make a department determination using any information provided in accordance with Section 12-60-30(16)(c)(iii).

(D) (1) The department shall make a department determination using the information provided by the person in accordance with Section 12-60-30(16)(c)(iii).

(2) A determination of the department adverse to the person must be in writing and must:

(a) be sent by first class mail or delivered to the person;

(b) explain the basis for the department s determination;

(c) inform the person of his right to request a contested case hearing; and

(d) explain that the license must not be issued, or the license must be suspended or revoked in thirty days unless the person requests a contested case hearing.

Section 12-60-1320. Upon exhaustion of his prehearing remedy, a person may seek relief from the department s determination by requesting a contested case hearing before the Administrative Law Judge Division or the DMV hearing officers, as appropriate. This request must be made

Section 12-60-1330. Before a person may seek a determination by an administrative law judge or DMV hearing officer under Section 12-60-1320, he shall exhaust his prehearing remedy. If a person requests a contested case hearing before the Administrative Law Judge Division or DMV hearing officers without exhausting his prehearing remedy because he failed to file a protest, the administrative law judge or DMV hearing officer shall dismiss the action without prejudice. If the person failed to provide the department with the facts, law, and other authority supporting his position, he shall provide the department with the facts, law, and other authority he failed to present to the department earlier. The administrative law judge or DMV hearing officer shall then remand the case to the department for reconsideration in light of the new facts or issues unless the department elects to forego the remand. Upon remand the department has thirty days, or a longer period ordered by the administrative law judge or DMV hearing officer, to consider the new facts and issues and amend its department determination. The department shall issue its amended department determination in the same manner as the original. The person has thirty days after the date the department s amended determination was sent by first class mail or delivered to the person to again request a contested case hearing. Requests for a hearing before the Administrative Law Judge Division must be made in accordance with its rules. Requests for a hearing before the DMV hearing officers must be made to the department representative. If the department fails to issue its amended department determination within thirty days of the date of the remand, or a longer period ordered by the administrative law judge or DMV hearing officer, the person can again request a contested case hearing. At the new hearing the facts, law, and other authority presented at the original hearing must be deemed to have been presented in a timely manner for purposes of exhausting the person s prehearing remedy. The statute of limitations remains suspended by Section 12-54-85(G) during this process.

Section 12-60-1340. Anything else in this chapter notwithstanding, if the department determines that public health, safety, or welfare requires emergency action, it shall seek an emergency revocation order from the Administrative Law Judge Division, or the DMV hearing officers, as appropriate, pursuant to Section 1-23-370(c).

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