It is enacted by the General Assembly as follows
SECTION 1. Section 44-14-19.1 of the General Laws in Chapter 44-14 entitled "Taxation of Banks" is hereby amended to read as follows:
44-14-19.1. Claims for refund -- Hearing upon denial. -- (a) Any taxpayer may file a claim for refund with the tax administrator at any time within two (2) years after the tax has been paid, or in the case of a change or correction of its taxable income by any official of {ADD the state of Rhode Island or ADD} the United States government, within two (2) years after receiving notice of the change or correction. If the tax administrator shall determine that the tax has been overpaid, he or she shall make a refund with interest at the annual rate provided by section 44-1-7.1, as amended, from the date of payment.
(b) Any taxpayer whose claim for refund has been denied may, within thirty (30) days from the date of the mailing by the tax administrator of the notice of the decision, request a hearing and the tax administrator shall, as soon as practicable, set a time and place for the hearing and shall so notify the applicant.
SECTION 2. Chapter 44-14 of the general laws in chapter 44-14 entitled "Taxation of Banks" is hereby amended by adding thereto the following sections:
{ADD 44-14-19.2. Limitations on assessment. -- ADD} {ADD (a) General. Except as otherwise provided in this section the amount of the excise tax shall be assessed within three (3) years after the return was filed (whether or not the return was filed on or after the date prescribed). For this purpose, a tax return filed before the due date shall be considered as filed on the due date.
(b) Exceptions. (1) The tax may be assessed at any time if:
(i) No return is filed.
(ii) A false or fraudulent return is filed with intent to avoid tax.
(2) Where, before the expiration of the time prescribed in this section for the assessment of tax, or before the time as extended hereunder, both the tax administrator and the taxpayer have consented in writing to its assessment after that time, the tax may be assessed at any time prior to the expiration of the period agreed upon.
(3) An erroneous refund shall be considered to create an underpayment of tax on the date made. An assessment of a deficiency arising out of an erroneous refund may be made at any time within three (3) years thereafter, or at any time if it appears that any part of the refund was induced by fraud or misrepresentation of a material fact.
(c) Notwithstanding the foregoing provisions of this section, the tax may be assessed at any time within six (6) years after the return was filed if a taxpayer omits from its income an amount properly includable therein which is in excess of twenty-five percent (25%) of the amount of income stated in the return. For this purpose there shall not be taken into account any amount which is omitted in the return if the amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the tax administrator of the nature and amount of the item.
(d) The running of the period of limitations on assessment or collection of the tax or other amount (or of a transferee's liability) shall, after the mailing of a notice of deficiency, be suspended for any period during which the tax administrator is prohibited from making the assessment or from collecting by levy, and for sixty (60) days thereafter.
(e) No period of limitations specified in any other law shall apply to the assessment or collection of taxes due under this chapter. ADD}
SECTION 3. This act shall take effect upon passage.
