§ 10-189. Deficiency determinations.

(a)

Recomputation of tax. If the mayor or the mayor's designee is not satisfied with the return of the tax levied under this subdivision or the amount of the tax levied under this subdivision required to be paid to the city by any person, the mayor may compute and determine the amount required to be paid upon the basis of any information within the mayor's possession or that may come into the mayor's possession. One or more than one deficiency determinations may be made of the amount due for one or more than one monthly period.

(b)

Interest on deficiency. The amount of the determination, exclusive of penalties, shall bear interest at the rate of one percent per month or any fraction of a month from the 20th day after the close of the monthly period for which the amount or any portion thereof should have been returned until the date of payment.

(c)

Offsetting of overpayments. In making a determination, the mayor or the mayor's designee may offset overpayments, for a period, against underpayments, for another period, against penalties and against the interest on underpayments.

(d)

Penalty for negligence or disregard of rules and regulations. If any part of the deficiency for which a deficiency determination has been made is due to negligence or disregard of rules and regulations, a penalty of 15 percent of the amount of such deficiency shall be added thereto.

(e)

Penalty for fraud or intent to evade. If any part of the deficiency for which a deficiency determination is made is due to fraud or an intent to evade any section of this subdivision or other authorized rules and regulations, a penalty of 25 percent of the deficiency shall be added thereto.

(f)

Notice of deficiency determination. The mayor or the mayor's designee shall give to the licensee written notice of the mayor's deficiency determination. The notice may be served personally or by mail; if by mail, such service shall be addressed to the licensee at the licensee's address as it appears in the records of the license division, department of finance. For service by mail or any notice required by this subdivision, the service is complete at the time of deposit in the United States post office.

(g)

Time limits. Except for a fraud, intent to evade this subdivision or authorized rules or regulations or failure to make a return, every notice of a deficiency determination shall be mailed within three years after the 20th day of the calendar month following the monthly period for which the amount is proposed to be determined or within three years after the return is filed, whichever period shall last expire.

(Code 1977, § 14-2237)