If the taxpayer disclosed in writing the tax liability to the department before the department contacts the taxpayer, the statute of limitations remains at 3 years. Statute of Limitations: 4 years from either the return due date or the return filing date (whichever comes later). The state, however, has a longer statute of limitations for tax actions than residents have to claim refunds of taxes. CALL THE STATE? Read More: South Carolina Code Section 12-54-85, Exceptions: If a taxpayer fails to obtain or maintain a license or permit required to engage in the activity which results in the tax obligation, if a taxpayer fails to file a required return, if a taxpayer files a return reporting tax due but fails to remit the tax reported in full, or if a taxpayer files a fraudulent report, there is no statute of limitations, or “bar to assessment or collection of taxes, penalty, or interest.”, Read More: South Dakota Codified Laws 10-59-16, Statute of Limitations: 3 years from the end of the calendar year in which the return was filed. CAUTION ON CHARTS –-A big word of caution is in order when it comes to charts. But, it still makes for good state tax conversation. Of course, neither can companies recover overpaid taxes in expired periods. Exceptions: In the case of a false or fraudulent return with intent to evade tax, a sales tax assessment may be at any time. Website Designed by Altitude Marketing. Louisiana’s total sales and use tax rate is 4 percent. What is a Statute of Limitations A statute of limitations is a legal time limit within which legal actions must be taken or the entity or person who could bring the action waives that right. It is the time period the IRS has to collect on taxes owed for a specific assessment. Exceptions: In the case of a failure to file a return, a false or fraudulent return with the intent to evade the tax, the tax may be assessed or a proceeding to enforce the collection of such tax may begin, with or without assessment, at any time. Sales tax is much more a “form over substance” type of tax than income tax and how things are worded in a contract or invoice can be crucial to the taxability. Exceptions: In the case of fraud, intent to evade sales tax, or failure to make a return, the statute of limitations does not apply. If the taxpayer failed to file a return, the statute of limitations extends to 7 years from either the return due date or the return filing date, whichever comes later. In some states, there are different limitations periods for different types of taxes in the same state. If you have any questions, please give us a call. A state’s sales and use tax statute of limitations applies as a limit to how far back a state can go when they audit you — that is assuming your company has been registered and filing sales tax returns in that state. So an audit by the BOE conducted in 2017 can cover 2016, 2015, and 2014, but not 2013 and earlier. Exceptions: The failure to file a sales tax return will interrupt the sales tax assessment, and the assessment will not commence until the subsequent filing of the return. At the state level, we frequently run into situations where there is simply no documented answer to your question. Read More: Connecticut General Statute 12-415(f). This means that the BOE can audit the three previous tax years. Diane Yetter, of YETTER, said, “I think the states have started using data analytics to identify non registrants and that this will increase. ©2020 TaxJar. Click on the states in the map to explore the statute of limitations for each state, or scroll through the states in alphabetical order below. | Posted In Nexus, Registrations, Voluntary Disclosures. Exceptions: In the case of a false or fraudulent return, or return filed with the intent to evade sales tax, or a failure to file a return, a sales tax assessment may begin at any time. Exceptions: If no return is filed, or a false or fraudulent return with the intent to evade tax is filed, a sales tax audit can be entered at any time. If the taxable sales are misreported by more than 25%, then the statute of limitations increases to 6 years. This also applies to any special district sales or use tax. 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