Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 1 - Administrative Operations › Subchapter 5 - Practice and Procedure › Part 3 - DESCRIPTION OF ADMINISTRATIVE REVIEW AND HEARINGS › Section 710:1-5-10 - Tax protests and claims for refund

Current through Vol. 41, No. 20, July 1, 2024
(a) A
protest
may be described as a formal, written challenge to a
				  proposed tax assessment or to the denial of a claim for refund of taxes paid.
				  The statutory requirements for perfecting a protest or claim for refund are
				  governed, generally, by the provisions of the Uniform Tax Procedure Code (68
				  O.S. §§
										201
				  et seq.), except in the areas of Income Tax (Article 23 of Title 68 of the
				  Oklahoma Statutes) and Estate Tax (Article 8 of Title 68 of the Oklahoma
				  Statutes) which have additional, and in some instances, superseding, statutory
				  requirements.
(b) There are several
				  routes available, both formal and informal, to a taxpayer in objecting to an
				  assessment. Prior to the filing of a protest, the issues may be resolved by
				  further discussion with the assessing tax division. Challenged assessments or
				  audits may be amended or adjusted by the tax Division involved, upon reasoned
				  grounds and adequate documentation. Should issues remain unresolved after
				  consulting with the assessing division, the taxpayer may file written protest
				  with the taxing division. A protest must be "timely filed." That is, it must be
				  filed on, or before, the statutory time provided for filing protests, to insure
				  that the protestant-taxpayer preserves his legal rights to a full hearing of
				  the matter and a route for appeal if the disposition of the protest is not
				  resolved in his favor. In the absence of a formal written extension of time
				  within which to file a protest,
proposed assessments which are not
				  protested within the time prescribed by statute are considered final.
Any finally assessed tax in such a case which is paid to or collected by the
				  Tax Commission is not subject to a claim for refund or hearing thereon, to the
				  extent provided in 68 O.S. §
										227(f).
				  Thus, a taxpayer who receives a notice of proposed assessment of tax from the
				  Tax Commission should not assume that it can be challenged later by way of a
				  claim for refund, if a protest of the proposed assessment is not timely filed
				  and the proposed assessment then becomes final. However, a taxpayer who fails
				  to file a timely protest may, within one (1) year of the date the assessment
				  becomes final, request the Tax Commission to adjust or abate the assessment
				  pursuant to 68 O.S. §
										221(e)
				  and the provisions of Part 7 of this Subchapter.
(c) The following is a brief description of a
				  typical protest that would take place within the framework of the Oklahoma Tax
				  Commission administrative proceedings process.
(1) Initially, an audit is conducted by one
				  of the various taxing Divisions of the Oklahoma Tax Commission pursuant to 68
				  O.S. §
											221(a).
				  Thereafter, a proposed assessment is issued to the taxpayer. If, in fact, the
				  taxpayer disagrees with the proposed assessment, a protest may be filed,
				  generally within sixty (60) days of the date of the assessment, pursuant to the
				  provisions of 68 O.S. §
											221(c).
(2) Except for the initial filing of a
				  protest, which may be made with the taxing division, with the Office of the
				  General Counsel, or with the office of the Administrative Law Judges, the
				  office of the Administrative Law Judges serves as the "Court Clerk" for the
				  administrative hearing process. The Administrative Law Judges are appointed by
				  the Commissioners of the Oklahoma Tax Commission and act independently of the
				  taxing Divisions and the Office of the General Counsel.
(3) Once a protest is received by the taxing
				  Division, the Division will generally review the proposed assessment to
				  determine whether further adjustments are appropriate. Additional discussion
				  between the taxpayer and the Division may be requested in this regard. If
				  issues still remain unresolved at the conclusion of this process, the protest
				  is forwarded to the Administrative Law Judges' Office, where the protest is
				  docketed and a Pre-Hearing Conference is scheduled between the taxpayer, the
				  General Counsel's Office attorney who represents the taxing Division and an
				  Administrative Law Judge.
(4) At
				  this time, a case may be resolved through discussion and negotiation with the
				  staff attorney and the protest or claim is formally withdrawn from the docket,
				  at the request of the parties. This informal resolution may be described as
				  either a withdrawn assessment or a withdrawn protest, depending upon the manner
				  in which the issues were resolved.
(5) Generally, the manner in which a case is
				  to be submitted is decided by the parties at the Pre-Hearing Conference. Other
				  matters decided at this conference are the legal issues of the case and the
				  manner of evidence or witnesses (or both) to be presented at any hearing.
				  Taxpayers are urged to respond to letters; appear or make alternate
				  arrangements at scheduled pre-hearing conferences and hearings; file required
				  briefs or position letters in a timely fashion; and in all respects pursue
				  their legal rights diligently.
(6)
				  Following the Pre-Hearing Conference, and assuming the case is not resolved, it
				  is set for hearing. The Administrative Law Judge will preside at the hearing,
				  wherein testimony and exhibits are received and a record is made. After
				  consideration of the merits, the Administrative Law Judge will issue Findings,
				  Conclusions and Recommendations.
(7) Following the issuance of the Findings by
				  the Administrative Law Judge, the Commissioners may either adopt the Finding,
				  or modify it, in part, or in whole. If the taxpayer has requested an en banc
				  hearing, the Commission may grant it at this time. Once the Order of the
				  Commission is issued, the Taxpayer has thirty (30) days within which to file an
				  appeal with the Oklahoma Supreme Court.
(8) Detailed procedural rules governing a tax
protest
may be found in
				  710:1-5-21
				  through
				  710:1-5-49,
				  which set out rules of Practice and Procedure before the Office of the
				  Administrative Law Judges.