KRS 136.550: Examination and audit of tax returns -- Assessment of excess.

(1) As soon as practicable after each return is received, the department shall examine

and audit it. If the amount of tax computed by the department is greater than the

amount returned by the financial institution, the excess shall be assessed by the

department within four (4) years from the date prescribed by law for the filing of a

return including an extension of time for filing, except as provided in this

subsection. A notice of the assessment shall be mailed to the financial institution.

(a) In the case of a failure to file a return or of a fraudulent return, the excess may

be assessed at any time.

(b) In the case of a return wherein a financial institution understates its net capital

or omits from net capital an amount properly includible therein or both, which

understatement or omission or both is in excess of twenty -five percent (25%)

of the amount of net capital stated in the return, the excess may be assessed at

any time within six (6) years after the return was filed.

(2) For the purpose of subsection (1) of this section, a return filed before the last day

prescribed by law for the filing shall be considered as filed on the last day. The

times provided for in subsection (1) of this section may be extended by agreement

between the financial institution and the department.