{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-1368.3","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-1368.3","heading":"Noncompliant taxpayer - Delinquency - Business closure","body":"A. As used in this section, \"noncompliant taxpayer\" means any\n\ntaxpayer operating under a sales tax permit who, within any\n\nconsecutive twenty-four-month period, has failed to file two reports\n\nor remit tax due for any two (2) months, as required under the\n\nprovisions of any tax law. Provided, a taxpayer shall not be deemed\n\nnoncompliant for nonpayment of income taxes.\n\nB. In addition to all other remedies provided by law for the\n\ncollection of unpaid taxes, the Oklahoma Tax Commission may close\n\nthe business of a noncompliant taxpayer, subject to the\n\nadministrative and judicial appeal procedures provided in this\n\nsection, if the noncompliant taxpayer, within any consecutive\n\ntwenty-four-month period, fails to file three reports or remit tax\n\ndue for any three (3) months, as required under the provisions of\n\nany tax law.\n\nC. 1. The Tax Commission shall give notice to a noncompliant\n\ntaxpayer that the third delinquency in reporting or remitting tax in\n\nany consecutive twenty-four-month period will result in the closure\n\nof the business. The notice must be in writing and delivered to the\n\nnoncompliant taxpayer by the United States Postal Service or by hand\n\ndelivery.\n\n2. If the noncompliant taxpayer has a third delinquency in\n\nreporting or remitting tax in any consecutive twenty-four-month\n\nperiod after the issuance of the notice provided in paragraph 1 of\n\nthis subsection, the Tax Commission shall notify the noncompliant\n\ntaxpayer by certified mail or by hand delivery that the business\n\nwill be closed within five (5) business days from the date of the\n\ndelivery or attempted delivery of the notice unless the noncompliant\n\ntaxpayer makes arrangements with the Tax Commission to satisfy the\n\ntax delinquency. When the fifth day falls on a Saturday, Sunday, or\n\nlegal holiday, the performance of the act is considered timely if it\n\nis performed on the next succeeding business day that is not a\n\nSaturday, Sunday, or legal holiday.\n\nD. A noncompliant taxpayer may avoid closure of the business\n\nby:\n\n1. Filing all delinquent reports and remitting the delinquent\n\ntax including any interest and penalty; or\n\n2. Entering into a payment agreement approved by the Tax\n\nCommission to satisfy the tax delinquency.\n\nE. The decision to close the business of a noncompliant\n\ntaxpayer will be final and absolute if the noncompliant taxpayer\n\nfails to request an administrative hearing as provided in subsection\n\nF of this section.\n\nF. 1. A noncompliant taxpayer may request an administrative\n\nhearing concerning the decision of the Tax Commission to close the\n\nbusiness of a noncompliant taxpayer by filing with the Tax\n\nCommission a written protest, signed by the noncompliant taxpayer or\n\nthe authorized agent of the noncompliant taxpayer, stating the\n\nreasons for opposing the closure of the business and requesting an\n\nadministrative hearing. The protest shall be timely if filed within\n\nfive (5) business days after the delivery or attempted delivery of\n\nthe notice required by paragraph 2 of subsection C of this section.\n\n2. A noncompliant taxpayer may request that an administrative\n\nhearing be held in person, by telephone, upon written documents\n\nfurnished by the noncompliant taxpayer, or upon written documents\n\nand any evidence produced by the noncompliant taxpayer at an\n\nadministrative hearing. The Tax Commission shall have the\n\ndiscretion to determine whether an administrative hearing at which\n\ntestimony is to be presented will be conducted in person or by\n\ntelephone. A noncompliant taxpayer who requests an administrative\n\nhearing based upon written documents is not entitled to any other\n\nadministrative hearing prior to the date a decision is rendered by\n\nthe hearing officer.\n\n3. The administrative hearing will be conducted by a hearing\n\nofficer appointed by the Tax Commission. The hearing officer will\n\nset the time and place for a hearing and will give the noncompliant\nliant taxpayer who requests an administrative\n\nhearing based upon written documents is not entitled to any other\n\nadministrative hearing prior to the date a decision is rendered by\n\nthe hearing officer.\n\n3. The administrative hearing will be conducted by a hearing\n\nofficer appointed by the Tax Commission. The hearing officer will\n\nset the time and place for a hearing and will give the noncompliant\n\ntaxpayer notice of the hearing. The noncompliant taxpayer may be\n\nrepresented by an authorized representative and may present evidence\n\nin support of the position of the noncompliant taxpayer.\n\n4. The administrative hearing will be held within fourteen (14)\n\ncalendar days of receipt by the Tax Commission of the request for\n\nhearing, as required in paragraph 1 of this subsection. The Tax\n\nCommission shall give the noncompliant taxpayer at least five (5)\n\ndays' notice of the hearing.\n\nG. The defense or defenses to the closure of a business under\n\nthis section include written proof that the noncompliant taxpayer:\n\n1. Filed all delinquent returns and paid the delinquent tax due\n\nincluding interest and penalty; or\n\n2. Has entered into a written payment agreement, approved by\n\nthe Tax Commission prior to the hearing, to satisfy the tax\n\ndelinquency.\n\nH. 1. The decision of the hearing officer must be rendered in\n\nwriting with copies delivered to the noncompliant taxpayer by the\n\nUnited States Postal Service or by hand delivery.\n\n2. If the decision of the hearing officer is to affirm the\n\nclosure of the business, the decision shall be submitted in writing\n\nand delivered by the United States Postal Service or by hand to the\n\nnoncompliant taxpayer.\n\n3. The noncompliant taxpayer may seek judicial relief from the\n\ndecision of a hearing officer as provided in Section 225 of Title 68\n\nof the Oklahoma Statutes for relief from a final order of the Tax\n\nCommission.\n\nI. The procedures established by this section are the sole\n\nmethods for seeking relief from a written decision to close the\n\nbusiness of a noncompliant taxpayer.\n\nJ. After being given notice of an order of closure of a\n\nbusiness pursuant to this section, it shall be unlawful for any\n\nperson to continue to operate the business. If a person continues\n\nor threatens to continue the unlawful operation of the business\n\nafter having received proper notice of the closure, upon complaint\n\nof the Tax Commission, the person shall be enjoined from further\n\noperating or conducting the unlawful business. In all cases where\n\ninjunction proceedings are brought under this subsection, the Tax\n\nCommission shall not be required to furnish bond. Where notice of\n\nclosure has been given in accordance with the provisions of this\n\nsection, no further notice shall be required before the issuance of\n\na temporary restraining order.\n\nK. If a noncompliant taxpayer fails to timely seek\n\nadministrative or judicial review of a business closure decision\n\npursuant to this section, or if the business closure decision is\n\naffirmed after administrative or judicial review, the Tax Commission\n\nshall affix a written notice to all entrances of the business that:\n\n1. Identifies the business as being subject to a business\n\nclosure order; and\n\n2. States that the business is prohibited from further\n\noperation.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"9147c396d7b8b05d7b8e667a02fc05bc75d68a97f89307b5316bccee252711b8","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-1368","next":"us-ok/okla.-stat.-tit.-68-68-1369"},"notice":"GroundRules: Original legal text. Not legal advice."}