71-10 Amend Chpt 128, Municipal Income Tax

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twenty-five percent (25%) or more of income subject to this tax, the limitation of time within which prosecution must be commenced shall be six (6) years from the date the return was due or the date the false or fraudulent return was filed. 128.1507 FAILURE TO PROCURE FORMS NOT EXCUSE. The failure of any employer or person to receive or procure a return, declaration or other required form shall not excuse him from making any information return, or declaration, from filing such form, or from paying the tax. COLLECTION OFUNPAID TAXES AND REFUNDS OF OVERPAYMENTS 128.1701 UNPAID TAXES RECOVERABLE AS OTHER DEBTS. All taxes imposed by this chapter shall be collectible, together with any interest and penalties thereon, by suit, as other debts of like amount are recoverable. All legal actions to recover municipal income taxes and penalties and interest thereon shall be brought within three (3) years after the tax was due or the return was filed, whichever is later, except in the case of fraud, of omission of twenty-five percent (25%) or more of income subject to this tax, or of failure to file a return, an additional assessment shall not be made or legal action initiated after six (6) years from the time the return was due or filed, whichever is later. However, in those cases in which a Commissioner of Internal Revenue and the taxpayer have executed a waiver of the federal statute of limitations, the period within which an additional assessment may be made by the Administrator shall be one year from the time of the final determination of the federal tax liability. 128.1702 REFUNDS OF TAXES ERRONEOUSLY PAID. (a) Taxes erroneously paid shall not be refunded unless a claim for refund is made within three years from the date which such payment was made or the return was due, or within three months after the final determination of the federal tax liability, whichever is later. In addition, the following shall apply regarding refunds of tax withheld from non-qualified deferred compensation plans (NDCP): (1) A taxpayer may be eligible for a refund if the taxpayer has suffered .a loss from a NDCP. The loss will be considered sustained only in the taxable year in which the taxpayer receives the final distribution of money and property pursuant to the NDCP. Full loss is sustaihed if no distribution of money and property will be made by the NDCP. (2) A taxpayer who receives income as a result of payments from a NDCP, and that income is less than the amount of income deferred to the NDCP and upon which municipal tax was withheld, then a refund will be issued on the amount representing the difference between the deferred income that was taxed and the income received from the NDCP. If different tax rates applied to the tax years in which