KRS 143A.100: Audit -- Additional assessment -- Determination of liability when

business discontinued -- Statute of limitations.

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

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

amount returned by the taxpayer, the excess shall be assessed by the department

within four (4) years from the date the return was filed, except as provided in

subsection (4) of this section and except that in the case of a failure to file a return

or of a fraudulent return the excess may be assessed at any time. A notice of such

assessment shall be mailed to the taxpayer. The time herein provided may be

extended by agreement between the taxpayer and the department.

(2) For the purpose of subsections (1) and (4) of this section, a return filed before the

last day prescribed by law for the filing thereof shall be considered as filed on such

last day.

(3) When a business is discontinued, a determination may be made at any time

thereafter within the periods specified in subsection (1) of this section as to liability

arising out of that business, irrespective of whether the determination is issued prior

to the due date of the liability as otherwise specified in KRS 143A.080.

(4) Notwithstanding the four (4) year time limitation of subsection (1) of this section, in

the case of a return where the tax computed by the department is greater by twenty -

five percent (25%) or more than the amount returned by the taxpayer, the excess

shall be assessed by the department within six (6) years from the date the return was

filed.