Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 65 - Sales and Use Tax › Subchapter 5 - Audit and Assessment › Section 710:65-5-4 - Examination of tax return; adjustments, notices, and demands

Current through Vol. 41, No. 20, July 1, 2024
If, upon examination of the books of account and records of
				  the person filing the tax return, facts are obtained which, in the opinion of
				  the Commission, warrant an adjustment of the tax liability reported, the
				  following procedure shall be followed:
(1)
Notice and demand.
A
				proposed assessment report will be prepared and mailed to the taxpayer. This
				report will contain an explanation of adjustments together with a recomputation
				of tax in accordance with such adjustments. The notice of adjustments and the
				demand for payment (if additional tax is due) or any other notice or demand
				upon the person filing the return required by law shall be sent to him at his
				last known address. In the alternative, the Commission may cause to be served
				upon such person a written statement of the computation of tax due.
(2)
Acquiescence or failure to
				protest.
In the event the person filing the return acquiesces in the
				changes reflected on the proposed assessment, or fails to file a protest within
				the period specified in the letter of proposed assessment (or any extensions
				allowable by Statute that have been granted) the proposed assessment becomes
				final.
(3)
Jeopardy
				assessment.
If the Commission has reason to believe that the collection
				of any tax due under the Sales and Use Tax Codes may be jeopardized, the
				Commission may immediately terminate the reporting period of the person
				required to pay such tax. Thereupon the Commission may assess a tax on the
				basis of information or knowledge available to him and demand immediate
				payment. If such payment is not immediately made, the Tax Commission may
				collect the tax by the use of any of the methods authorized law.
(4)
Protest of assessment.
Where
				a person does not acquiesce in the proposed assessment, he may file a protest
				within the period specified in the letter of proposed assessment (or within any
				extensions allowable by Statute that have been granted).
(5)
Review by taxing division;
				referral.
If, after a review of his protest the Division is unable to
				reach agreement with taxpayer, the taxpayer's file will be forwarded to the
				Office of the Administrative Law Judge where the taxpayer will have an
				opportunity to have a hearing before an Administrative Law Judge. The
				Administrative Law Judge subsequently will notify such person of the date set
				for the hearing.
(6)
Determination of case without hearing available.
If the taxpayer
				does not desire a hearing, an order will be issued by the Commission within a
				reasonable time.
(7)
Hearing;
				final determination.
If a hearing before the Administrative Law Judge is
				requested and granted, an order will not be issued until such time as the
				Administrative Law Judge has submitted Findings, Conclusions and
				Recommendations to the Commission and the Commission has made a final
				determination.
(8)
Final
				determination; appeal
The issuance of an order by the Commission
				constitutes a final determination. The taxpayer aggrieved by the order is
				granted a period of thirty (30) days from the date of mailing to the taxpayer
				of a certified copy of the order in which to directly appeal to the Oklahoma
				Supreme Court.
Amended at 12 Ok Reg
				  2635, eff 6-26-95; Amended at 15 Ok Reg 2827, eff 6-25-98; Amended at 20 Ok Reg
				  2175, eff 6-26-03