1997 Minnesota Statutes

     297G.15 Assessments. 

    Subdivision 1.    General rule.  The commissioner shall 
 make determinations, corrections, and assessments with respect 
 to any tax under this chapter, including interest, additions to 
 taxes, and assessable penalties.  The commissioner may use 
 statistical or other sampling techniques consistent with 
 generally accepted auditing standards in examining returns or 
 records and making assessments. 

    Subd. 2.    Commissioner filed returns.  If a taxpayer 
 fails to file a required return, the commissioner, from 
 information in the commissioner's possession or obtainable by 
 the commissioner, may make a return for the taxpayer.  The 
 return is prima facie correct and valid. 

    Subd. 3.    Order of assessment; notice and demand to 
 taxpayer.  (a) When a return has been filed and the 
 commissioner determines that the tax disclosed by the return is 
 different than the tax determined by the examination, the 
 commissioner shall send an order of assessment to the taxpayer.  
 When no return has been filed, the commissioner may make a 
 return for the taxpayer under subdivision 2 or may send an order 
 of assessment under this subdivision.  The order must explain 
 the basis for the assessment and must explain the taxpayer's 
 appeal rights.  An order of assessment is final when made but 
 may be reconsidered by the commissioner under this chapter. 

    (b) The taxes are considered assessed when the commissioner 
 has prepared a notice of tax assessment and mailed it to the 
 person required to file a return to the post office address 
 given in the return.  The notice of tax assessment must be sent 
 by mail to the post office address given in the return and the 
 record of the mailing is presumptive evidence of the giving of 
 notice, and such records must be preserved by the commissioner. 

    (c) No collection action can be taken, including the filing 
 of liens under section 270.69, and no late payment penalty under 
 this chapter is imposed when a return has been filed for the 
 taxable period upon which the order is based, if the amount 
 shown on the order is paid to the commissioner: 

    (1) within 60 days after the order has been mailed to the 
 taxpayer by the commissioner; or 

    (2) if an administrative appeal is filed under this 
 chapter, or a tax court appeal is filed under chapter 271, 
 within 60 days following final determination of the appeal if 
 the appeal is based upon a constitutional challenge to the tax, 
 and if not, when the decision of the tax court is made. 

    Subd. 4.    Erroneous refunds or credits.  An erroneous 
 refund or credit is considered an underpayment of tax on the 
 date made.  An assessment of a deficiency arising out of an 
 erroneous refund or credit must be made within 3-1/2 years from 
 the date prescribed for filing the return, plus any extension of 
 time granted for filing the return, but only if filed within the 
 extended time, or two years from the time the tax is paid in 
 full, whichever period expires later. 

    Subd. 5.    Assessment presumed valid.  A return or 
 assessment of tax made by the commissioner is prima facie 
 correct and valid.  The taxpayer has the burden of establishing 
 its incorrectness or invalidity in any related action or 
 proceeding. 

    Subd. 6.    Aggregate refund or assessment.  The 
 commissioner, on examining returns of a taxpayer for more than 
 one year or period, may issue one order covering the period 
 under examination that reflects the aggregate refund or 
 additional tax due. 

    Subd. 7.    Sufficiency of notice.  An order of 
 assessment, sent postage prepaid by United States mail to the 
 taxpayer at the taxpayer's last known address, is sufficient 
 even if the taxpayer is deceased or is under a legal disability, 
 or, in the case of a corporation, has terminated its existence, 
 unless the department has been provided with a new address by a 
 party authorized to receive notices of assessment. 

    HIST: 1997 c 179 art 1 s 15