SENATE BILL NO. 200
AS AMENDED BY SENATE AMENDMENT NO. 1
AN ACT TO AMEND CHAPTER 19, TITLE 30 OF THE DELAWARE CODE RELATING TO THE CORPORATION INCOME TAX.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend §1906, Chapter 19, Title 30 of the Delaware Code by striking said Section in its entirety and substitute in lieu thereof a new §1906 to read as follows:
"If the amount of a taxpayer's federal tax liability reported on its federal income tax return for any taxable year is changed or corrected by the Internal Revenue Service or other competent authority, the taxpayer shall report to the Secretary of Finance such change or correction in federal tax liability within ninety days after the final determination of such change, correction, or renegotiation and shall concede the accuracy of such determination or state wherein it is erroneous. Any taxpayer filing an amended federal income tax return shall also file, within ninety days thereafter, an amended income tax return under this Chapter and shall provide such information relating thereto as the Secretary of Finance may require."
Section 2. Amend §1907, Chapter 19, Title 30 of the Delaware Code by striking said
Section in its entirety and substitute in lieu thereof a new §1907 to read as follows:
"(a) The amount of tax which is shown to be due on the return (including revisions for mathematical errors) shall be deemed to be assessed on the date of filing of the return (including any amended returns showing an increase of tax). In the case of a return properly filed without the computation of the tax, the tax computed by the Secretary of finance shall be deemed to be assessed on the date when payment is due. If a notice of deficiency has been mailed and no protest is filed, the alount of the deficiency shall be deemed to be assessed in accordance with subsection (e) of this Section, If a protest is filed, then the amount of the deficiency shall be deemed to be assessed on the date when the determination of the Secretary of Finance becomes final. If an amended return or report filed pursuant to §1906 of this Title concedes the accuracy of a federal change or correction, any deficiency in tax under this Chapter resulting therefrom shall be deemed to be assessed on the date of filing such report or amended return, and such assessment shall be timely notwithstanding any other provisions of this Chapter. Any amount paid as a tax or in respect of a tax, other than amounts paid as estimated income tax, shall be deemed to be assessed upon the date of receipt of payment, notwithstanding any other provision of this Chapter.
(b) If the mode or time for the assessment of any tax, interest, addition to tax or penalty under this Chapter is not otherwise provided for, the Secretary of Finance may establish the same by regulation.
(c) The Secretary of Finance may, at any time within the period prescribed for issuance of a notice of deficiency, issue a supplemental notice of deficiency, subject to the other provisions of this Section, whenever it is found that any notice is imperfect or incomplete in any material respect.
(d) As soon as practicable after a return is filed, the Secretary of Fiance shall examine it and shall determine the correct amount of tax. If the tax found due upon examination is greater than the amount shown on the return to be due, notice of a deficiency shall be mailed to the taxpayer by registered or certified mail.
(e) Within 90 days after such notice is mailed the taxpayer may file a written protest with the Secretary of Finance for a redetermination of the tax. The taxpayer shall be granted a hearing where it is requested in the written protest. Ninety days after such notice is mailed, the notice shall constitute a final assessment of the amount of tax specified, together with interest, additions to tax and penalties, except only for such amounts as to which the taxpayer has filed a written protest.
(a) Notice of the Secretary of Finance's determination shall be mailed to the taxpayer by certified or registered mail and such notice shall set- forth briefly the Secretary of Finance's basis of decision in each case decided in whole or in part adversely to the taxpayer. The action of the Secretary of Finance on the taxpayer's protest is final upon the expiration of 90 days from the date when he mails notice of his action to the taxpayer unless within this period the taxpayer filed an appeal to the Tax Appeal Board.
(g) If the taxpayer is notified that, because of a mathematical error appearing upon the face of the return, an amount of tax in excess of that shown upon the return is due then, notwithstanding subsection (d), (e) and (f) of this Section, such excess shall be paid within ten days after such notice is mailed to the taxpayer.
(a) A 'deficiency' means the amount (other than an amount described in subsection (g) of this Section) by which the tax imposed by this Chapter exceeds the amount shown as the tax by the taxpayer upon its return, or. if no return is made by the taxpayer, 'deficiency' means the amount determined by the Secretary of Fiance to be the estimated or correct amount of the tax."
Section 3. Amend §1908, Chapter 19, Title 30 of the Delaware Code by striking said Section in its entirety and substitute in lieu thereof a new §1908 to read as follows:
"(a) Except as provided below, a notice of deficiency shall be mailed to the taxpayer within three years after the last day prescribed for filing the return or, if later, the date the return was filed. No deficiency shall be assessed or collected with respect to the year for which the return was filed unless the notice of deficiency is mailed within the three year period or a period otherwise fixed in accordance with subsection (c) of this Section.
(b) If no return is filed or a false and fraudulent return is filed with intent to evade the tax imposed by this Chapter, a notice of deficiency may be mailed to the taxpayer at any time.
(c) Where, before the expiration of the time prescribed in subsection (a) of this Section for the issuance of the notice of deficiency, both the Secretary of Fiance and the taxpayer have consented in writing to its issuance after such time, the notice may be issued at any time prior to the expiration of the period previously agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. An agreement between the taxpayer and the Internal Revenue Service providing for the extension of the period for assessment of federal income taxes shall constitute an agreement with the Secretary of Finance to extend the period for issuance of a notice of deficiency in income taxes under this Chapter, provided that the taxpayer files a copy of all such agreements and extensions thereof with the Secretary of Fiance within thirty days after their execution.
(d) If a taxpayer fails to comply with the requirements of §1906 of this Title by not reporting a change or correction increasing its federal taxable income, by not reporting a change or correction which is treated in the same manner as if it were a deficiency for federal income tax purposes, or by not filing an amended return when one is required, a notice of deficiency may be mailed to the taxpayer at any time
(a) If the taxpayer shall, pursuant to §1906 of this Title, report a change or correction or file an amended return increasing its federal taxable income or report a change or correction which is treated in the same manner as if it were a deficiency for federal income tax purposes, the notice of deficiency may be issued at any time within two years after such report or amended return was filed."
Approved July 8, 1987.