SECTION 3.19. Limitation for Collections for Refunds

(a) If in attempting to comply with the provisions of the Texas Tax Code, Chapter 201, any administrative proceeding is set before any local, state, or federal regulatory agency or judicial proceeding arising therefrom which affects the amount of tax liability imposed under Texas Taxation-General, the period of time prescribed for the assessment and collection of any deficiency or the refund or credit of any amount which arises from such affected tax liability, is suspended until a final determination is reached in the aforementioned proceedings. The suspension does not affect the statutorily required filing requirements, and the taxpayer must continue filing reports and remitting all tax due therein.

(b) A final determination occurs when nothing remains in dispute; that is, when the amount of deficiency or refund has been agreed to by the parties and approved by the particular proceeding, or, in the absence of agreement, has been ordered by the proceeding.

(c) A taxpayer has the burden of bringing about "discovery' of any final determination of a proceeding affecting the tax liability so as to enable the comptroller to correctly compute the tax. The comptroller is authorized to issue rules and regulations on the meaning of "discovery by the comptroller. '

(d) In accordance with such authority, discovery by the comptroller will not be deemed to have occurred until the comptroller receives a complete detailed report upon which he may assess a deficiency or issue a credit or refund without further information. If the comptroller must audit or examine further information to determine the deficiency or the amount of the credit or refund, discovery by the comptroller of the final determination will not be deemed to have occurred until such information is ascertained by the comptroller. The comptroller must, within one year from making such discovery, assess a deficiency with penalty and interest or issue a credit or refund. The one-year period for the comptroller to take action commences from the date of earliest discovery as defined in this section.

Source Note: The provisions of this §3.19 adopted to be effective January 1, 1976.