Sec. 130-431. Statute of limitations.
(a)
(1) Except as provided in this section, the amount of any tax imposed by this article, and penalty and interest applicable thereto, shall be assessed, within three years after the filing of a return, whether or not such return was filed on or after the date prescribed, and no assessment shall be made or credit taken, and no notice of lien shall be filed, nor distraint warrant issued, nor suit for collection instituted, nor any other action to collect the same commenced after the expiration of such period.
(2) A written proposed adjustment of the tax liability by the finance director issued prior to the expiration of such period shall extend the limitation of subsection (a)(1) of this section for one year after a final determination or assessment is made.
(b)
(1) Except as provided in this section, no lien imposed by this article shall continue beyond three years after the filing of a return.
(2) For taxes assessed before the expiration of such three-year period, notice of lien with respect to which has been filed prior to the expiration of such period, and for taxes on which written notice of any proposed adjustment of the tax liability has been sent to the taxpayer during such three-year period, such lien shall continue for one year after the expiration of such period. In the event of an appeal by the taxpayer of a notice of assessment, such lien shall continue for one year after the issuance of a final determination of such appeal.
(c) For purposes of this section, a return filed before the last day prescribed by this article for the filing thereof shall be considered filed on such last day.
(d) In the case of a failure to file a return or the filing of a false or fraudulent return with intent to evade tax, the tax imposed by this article, together with interest and penalties thereon, may be assessed and collected at any time.
(e) The issuance of a notice of audit by the finance director to the taxpayer prior to the expiration of the three-year limitation period prescribed in subsection (a) of this section shall extend such period with respect to the designated audit period until such time as the audit is completed and a notice of final determination or assessment is issued. For purposes of this subsection (e), "designated audit period" includes all reporting periods with due dates that fall within the three-year period preceding the date of the notice of audit. If a notice of assessment issued as a result of such audit, the limitation period shall be further extended as provided in subsection (b) of this section. (Code 1979, § 36-220; Ord. No. 2021-64, § 9, 11-22-2021)