10-59-16. Time limitation for collection--Exceptions. Unless a proceeding, audit, action, or jeopardy assessment is commenced to determine or collect the tax, the collection thereof is barred three years from the date the return reporting the tax is filed by or on behalf of the taxpayer. There is no bar to assessment or collection of taxes, penalty, or interest in the following instances:
(1) Any period for which a taxpayer fails to obtain or maintain a license or permit required to engage in the activity which results in the tax obligation;
(2) Any period for which a taxpayer fails to file a required return or report or files a fraudulent return or report;
(3) Any tax, penalty, or interest first legally due and payable within three years of the date of mailing of a notice of intent to audit; or
(4) Any period for which a taxpayer files a return reporting tax due and fails to remit the tax reported on the return in full.Source:
SL 1986, ch 111, § 16; SL 1994, ch 104.
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