Section 59-14-410 - Action for collection of tax - Action for refund or credit of tax(1)(a) Except as provided in Subsections (2) through (5), the commission shall assess a tax under this chapter within three years after a taxpayer files a return.(b) Except as provided in Subsections (2) through (5), if the commission does not assess a tax under this chapter within the three-year period provided in Subsection (1)(a), the commission may not commence a proceeding to collect the tax.(2) The commission may assess a tax at any time if a taxpayer:(a) files a false or fraudulent return with intent to evade; or(b) does not file a return.(3) The commission may extend the period to make an assessment or to commence a proceeding to collect the tax under this chapter if:(a) the three-year period under Subsection (1) has not expired; and(b) the commission and the taxpayer sign a written agreement:(i) authorizing the extension; and(ii) providing for the length of the extension.(4) If the commission delays an audit at the request of a taxpayer, the commission may make an assessment as provided in Subsection (5) if:(a) the taxpayer subsequently refuses to agree to an extension request by the commission; and(b) the three-year period under Subsection (1) expires before the commission completes the audit.(5) An assessment under Subsection (4) shall be:(a) for the time period for which the commission could not make an assessment because of the expiration of the three-year period; and(b) in an amount equal to the difference between:(i) the commission's estimate of the amount of tax the taxpayer would have been assessed for the time period described in Subsection (5)(a); and(ii) the amount of tax the taxpayer actually paid for the time period described in Subsection (5)(a).(6)(a) Except as provided in Subsection (6)(b), the commission may not make a credit or refund unless the taxpayer files a claim with the commission within three years of the date of overpayment.(b) The commission shall extend the period for a taxpayer to file a claim under Subsection (6)(a) if:(i) the three-year period under Subsection (6)(a) has not expired; and(ii) the commission and the taxpayer sign a written agreement: (A) authorizing the extension; and(B) providing for the length of the extension.Enacted by Chapter 6, 2007 General Session .