35-18-506. Deficiency assessment -- hearing -- interest. (1) If the department of revenue determines that the amount of fee due is greater than the amount reported, it shall mail to the taxpayer a notice of the additional fee proposed to be assessed. Within 30 days after mailing of the notice, the taxpayer may file with the department a written protest against the proposed additional fee, setting forth the grounds upon which the protest is based, and may request in his protest an oral hearing or an opportunity to present additional evidence relating to his additional liability. If a protest is not filed, the amount of the additional fee proposed to be assessed becomes final upon expiration of the 30-day period. If a protest is filed, the department shall reconsider the proposed assessment and, if the taxpayer has requested, shall grant the taxpayer an oral hearing. After consideration of the protest and the evidence presented at an oral hearing, the department's action upon the protest is final when it mails notice of its action to the taxpayer.
     (2) (a) When a deficiency is determined and the additional fee becomes final, the department shall mail a notice and demand for payment to the taxpayer. The fee is due and payable at the expiration of 10 days after the notice and demand were mailed. Interest on any deficiency assessment bears interest until paid, at the rate of 1% a month or fraction of a month, computed from the original due date of the return.
     (b) If payment is not made within 10 days, the amount of the deficiency is considered delinquent. A 10% penalty must be added to the amount of the deficiency.

     History: En. Sec. 17, Ch. 676, L. 1991.