Tennessee § 67-1-1005 - Duty to back assess or reassess — Citation.

§ 67-1-1005. Duty to back assess or reassess — Citation.

A back assessment or reassessment must be initiated on or before September 1 of the year following the tax year for which the original assessment was made, unless the omission or underassessment resulted from failure of the taxpayer to file the reporting schedule required by law, from actual fraud or fraudulent misrepresentation of the property owner or the property owner's agent, or from collusion between the property owner or the property owner's agent and the assessor. In the latter cases, a back assessment or reassessment must be initiated on or before three (3) years from September 1 of the tax year for which the original assessment was made. Additional taxes due as the result of a back assessment or reassessment shall not be deemed delinquent until sixty (60) days after the date notice of taxes arising from the back assessment or reassessment is sent to the taxpayer, unless the back assessment or reassessment resulted from failure of the taxpayer to file the reporting schedule required by law, from actual fraud or fraudulent misrepresentation of the property owner or the property owner's agent, or from collusion between the property owner or the property owner's agent and the assessor. In the latter cases, such taxes shall become delinquent as of the date of delinquency of the original assessment. A back assessment or reassessment may be initiated by certification of the assessor of property to the appropriate collecting officials identifying the property and stating the basis of the back assessment or reassessment and the tax years and amount of any additional assessment for which the owner or taxpayer is responsible. The assessor shall send a copy of the certification to the owner or taxpayer. The collecting official shall then send a notice of taxes due based on the back assessment and reassessment. Any person aggrieved by a back assessment or reassessment may appeal directly to the state board of equalization within sixty (60) days from the date that a copy of the certification is sent to the taxpayer, in the manner provided in § 67-5-1412, and such person may be assisted or represented in the appeal as provided in § 67-5-1514. Accrual of delinquency penalty and interest otherwise applicable is suspended while the appeal is pending; but, during such period, simple interest shall accrue in the amount provided in § 67-5-1512. A back assessment or reassessment for merchants' taxes and delinquent privilege taxes pursuant to this part may be initiated by a chief administrative officer of a tax jurisdiction to which the tax is payable, any citizen of such jurisdiction, or by the department of revenue. The back assessment or reassessment shall be initiated by the filing of a sworn, written complaint to the county clerk stating the basis of the complaint. The clerk may require a complainant, other than a public official acting in the official's capacity, to post a reasonable bond for payment of costs of the proceeding if the back assessment or reassessment is unsuccessful. An aggrieved party may appeal the clerk's disposition of the complaint to the department. Notwithstanding the deadline in this section for initiating a back assessment or reassessment, the issuance of a notice of tangible personal property audit by the assessor tolls the running of the deadline during the period of the audit from the issuance of the notice until issuance of the audit findings. Acts 1879, ch. 79, § 1; 1883, ch. 181, § 1; 1885, ch. 23, § 1; 1907, ch. 602, § 30; Shan., §§ 814, 823, 823a1; Code 1932, §§ 1486, 1499, 1500; modified; impl. am. Acts 1978, ch. 934, §§ 7, 16, 22, 36; T.C.A. (orig. ed.), §§ 67-1204, 67-1205, 67-1213; Acts 1990, ch. 898, § 2; 1990, ch. 1052, § 1; 1993, ch. 315, § 12; 2000, ch. 934, § 1; 2002, ch. 752, §§ 1-3; 2007, ch. 132, § 1. Textbooks. Pritchard on Wills and Administration of Estates (4th ed., Phillips and Robinson), § 789. Tennessee Jurisprudence, 18 Tenn. Juris., Limitations of Actions, § 3; 23 Tenn. Juris., Taxation, § 36. Law Reviews. The Tennessee Court Systems — Prosecution, 8 Mem. St. U.L. Rev. 477 (1978). Cited: Garner v. Rhea Realty Corp., 494 S.W.2d 783, 1971 Tenn. App. LEXIS 239 (Tenn. Ct. App. 1971); Roberts v. State Board of Equalization, 557 S.W.2d 502, 1977 Tenn. LEXIS 677 (Tenn. 1977).