Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
465.0000 REMEDIES OF TAXPAYERS
(c) NOTICE OF DETERMINATION
465.1549 Statute of Limitations. An opinion was requested as to the proper application of the statute of limitations where a taxpayer with no permit files a return covering specific periods.
The language in the first sentence of section 6487 supports the position that, at any time within a three year period following the filing of a return, additional tax may be asserted for the period covered by the return. Applied literally, this could mean that if a return is filed covering a ten year period during which no returns were filed, the Board could wait three years and then issue a determination covering thirteen years. In the same situation, if the taxpayer did not file a return, the determination could only go back eight years. It is noted that section 6487 was amended in 1951 to add the eight-year limitation period in cases of failure to file a return. It is not believed that the thrust of the amendment to limit the period to eight years can be avoided by a taxpayer filing a return which is then used as the basis for keeping the early periods open for an additional three years. 11/21/73.