§ 39-16-108 — Enforcement

(a) Audits. To assess credits and deficiencies against
taxpayers and vendors, the department is authorized to rely on
final audit findings made by the department of audit, taxpayer
information, vendor information or department review subject to
the following conditions:
(i) Audits shall commence when the taxpayer or vendor
receives written notice of the engagement of the audit. The
issuance of the written notice of the audit shall toll the
statute of limitations provided in W.S. 39-16-110 for the audit
period specified in this subsection. The audit shall be
completed by the department of audit with final findings issued
to the taxpayer or vendor within one (1) year of the date of the
notice of engagement. This time limit may be extended only upon
mutual agreement between the taxpayer or vendor and the
department;
(ii) After receiving notice of an audit under this
subsection, the taxpayer or vendor shall preserve all records
and books necessary to determine the amount of tax due for the
time period that is being audited;
(iii) Except as otherwise provided in this paragraph,
audits shall encompass a time period not to exceed three (3)
years immediately preceding the reporting period when the audit
is engaged. The three (3) year limit shall not apply to an audit
if:
(A) There is evidence of a violation of
paragraph (c)(iv) of this section by the taxpayer or vendor for
the reporting period being audited; or
(B) There is evidence of gross negligence by the
taxpayer or vendor in reporting or remitting taxes for the
reporting period being audited.
(iv) If a taxpayer is not willing or able to produce
adequate records to demonstrate taxes due, the department or the
department of audit may project taxes based on the best
information available. If a vendor is not willing or able to
comply with the record requirements of W.S. 39-15-108(c)(xi),
the department or the department of audit may project taxes
based on the best information available;
(v) Audits under this subsection are subject to the
authority and procedures provided in W.S. 9-2-2003;
(vi) Any assessment or levy, including the assessment
of a penalty and interest, if any, resulting from final audit
findings or department review shall be issued not later than one
(1) year following the completion of the audit or review.
(b) Interest. The following shall apply:
(i) Interest on amounts due under W.S. 39-16-107
shall be at one percent (1%) per month or fraction thereof from
the date the return was due until paid. Effective July 1, 1994,
interest at an annual rate equal to the average prime interest
rate as determined by the state treasurer during the preceding
fiscal year plus four percent (4%) shall be added to the
delinquent tax. To determine the average prime interest rate,
the state treasurer shall average the prime interest rate for at
least seventy-five percent (75%) of the thirty (30) largest
banks in the United States. The interest rate on delinquent
taxes shall be adjusted on January 1 of each year following the
year in which the taxes first became delinquent. In no instance
shall the delinquent tax rate be greater than eighteen percent
(18%) from any sale made on or after July 1, 1994. The interest
rate on any delinquent tax from any sale made before July 1,
1994, shall be one percent (1%) per month from the date the
return was due until paid;
(ii) The department may credit or waive interest
imposed by this subsection as part of a settlement or for any
other good cause.
(c) Penalties. The following shall apply:
(i) If any part of the deficiency is due to
negligence or intentional disregard of this article or rules and
regulations, a penalty of ten percent (10%) of the deficiency
shall be added in addition to interest. If any part of the
deficiency is due to fraud or an intent to evade this article or
authorized rules and regulations, a penalty of twenty-five
percent (25%) of the deficiency shall be added in addition to
interest;
(ii) If any person liable for the tax imposed by this
article neglects or fails to file a return the department shall
make an estimate of the total taxable sales and taxes due from
the best information available, adding a penalty of ten percent
(10%) and interest as provided by paragraph (i) of this
subsection from the date the taxes were due until paid. If the
neglect or refusal is due to fraud or an intent to evade the
provisions of this article a penalty of twenty-five percent
(25%) shall be added in addition to interest;
(iii) If any person neglects or refuses to pay the
tax imposed by this article the department shall compute the
amount due based on the best information available, adding a
penalty of ten percent (10%) and interest as provided by
paragraph (i) of this subsection from the date the taxes were
due until paid. Payment of the tax, penalty and interest imposed
by this paragraph relieves the vendor from payment;
(iv) When the department has reason to believe the
tax imposed by this article will be jeopardized by delay it
shall immediately levy a jeopardy assessment which is
immediately due and payable. If the jeopardy assessment is not
paid within ten (10) days following notice thereof a delinquency
penalty and interest as imposed by paragraph (ii) of this
subsection shall be added;
(v) If the taxes, penalty and interest due under this
section are unpaid within ten (10) days following service of
notice an additional penalty of ten percent (10%) and interest
as provided by paragraph (i) of this subsection shall be added
by the department;
(vi) The department shall promptly give written
notice of all taxes, penalty and interest due under this section
by personal service or mail to the address as shown in the
department records;
(vii) The department may bring an action to recover
any delinquent taxes, penalty or interest in any appropriate
court within three (3) years following the delinquency. In the
case of an assessment created by an audit, the delinquency
period is deemed to start thirty (30) days after the date the
assessment letter is sent. Any Tax penalty and interest related
to the audit assessment shall be calculated from the filing
period during which the deficiency occurred. In such action a
certificate by the department is prima facie evidence of the
amount due;
(viii) Any person who violates W.S. 39-16-107(b)(i)
or (vi) is guilty of a misdemeanor;
(ix) Any person who violates W.S. 39-16-102(c) is
guilty of a misdemeanor;
(x) Any person who fails to file any return required
by this article, refuses to provide any information requested by
the department or violates any other provision of this article
for which there is no specific penalty is guilty of a
misdemeanor;
(xi) Any person who violates W.S. 39-16-106(a) is
guilty of a misdemeanor;
(xii) Any person who files a false or fraudulent
return is subject to the provisions of W.S. 6-5-303;
(xiii) Upon request of the department, the attorney
general may institute proceedings to restrain and enjoin any
person from:
(A) Acting as a vendor until they have received
a license as required by W.S. 39-15-106;
(B) Continuing to act as a vendor if they have
not remitted to the department, when due, all taxes, penalty and
interest imposed by this article.
(xiv) W.S. 39-15-108(b)(ii), (c)(iv) and
39-15-107(b)(iv) apply to use taxes under this article;
(xv) The department may impose a penalty of ten
dollars ($10.00) upon any vendor who fails to file his return in
a timely manner as required by W.S. 39-16-107(a) provided the
vendor files his return within thirty (30) days of receiving
notice from the department pursuant to paragraph (xii) of this
subsection. The department may impose a penalty of twenty-five
dollars ($25.00) upon any vendor who fails to file his return
within thirty (30) days of receiving notice from the department
pursuant to paragraph (xii) of this subsection;
(xvi) The department, for good cause, may waive a
penalty imposed for failure to file a return provided that the
taxpayer requests the waiver in writing within ninety (90) days
after the due date, setting forth the reasons for the late
filing;
(xvii) The department may credit or waive penalties
imposed by this subsection as part of a settlement or for any
other good cause;
(xviii) Notwithstanding W.S. 39-16-102(c), if any
vendor or taxpayer is one hundred fifty (150) days or more
delinquent on taxes due under this article, has not entered into
a formal payment arrangement with the department and after
thirty (30) days notice provided by first class mail, the
department shall post monthly the name of the vendor or
taxpayer, the sales and use tax license number, physical address
and the unpaid balance owed by the vendor or taxpayer on the
website of the department indicating that the vendor or taxpayer
has not paid the tax due under this article.
(d) Liens. The following shall apply:
(i) Any tax due under this article constitutes a debt
to the state from the persons who are parties to the transaction
and is a lien from the date due on all the property of those
persons. The tax lien shall have preference over all liens
except any valid mortgage or other liens of record filed or
recorded prior to the date the tax became due. When the tax is
collected by a retailer or his agent, the tax lien has the same
status as sales tax liens under W.S. 39-15-108(d)(i);
(ii) If any person is delinquent in the payment of
taxes, penalty or interest imposed by this article, the
department may give notice of the amount of the delinquency to
any person having in their possession or control credits or
personal property belonging to the delinquent taxpayer or owing
debts to him at the time of the notice. No person so notified
shall transfer or make any disposition of the credits, personal
property or debts unless the department approves of the
disposition or until sixty (60) days has elapsed from the
receipt of the notice. Each person receiving a notice under this
paragraph shall advise the department within five (5) days after
receiving the notice of all credits or personal property in
their possession or under their control which belong to the
delinquent taxpayer or of debts owed him;
(iii) Upon a failure to pay the tax due upon any
vehicle as provided by this section, the county treasurer shall
notify the department which may file a lien against the vehicle
as provided by this subsection and shall note the lien on the
title of the vehicle.
(e) Tax sales. At any time following a delinquency the
department with board approval may seize and sell at public
auction any property owned by the delinquent taxpayer to pay all
taxes, penalty and interest due plus the cost involved in
seizing and selling the property. Notice of the sale showing its
time and place shall be mailed to the delinquent taxpayer at
least ten (10) days prior to the sale. The notice shall also be
printed in a newspaper of general circulation published in the
county wherein the seized property is to be sold at least ten
(10) days prior to the sale. If no newspaper is published in the
county the notice shall be posted in three (3) public places ten
(10) days prior to the sale. The notice shall contain a
description of the property to be sold, a statement of the
entire amount due, the name of the delinquent taxpayer and a
statement that unless the amount due is paid on or before the
time of sale, the property or so much thereof as necessary shall
be sold. The department, with board approval, shall give the
purchaser a bill of sale for personal property or a deed for
real property purchased at the sale. Any unsold property seized
may be left at the sale at the risk of the delinquent taxpayer.
If the monies received at the sale are in excess of the amount
due the excess shall be given to the delinquent taxpayer upon
his receipt therefor. If a receipt by the delinquent taxpayer is
not given the department shall deposit the excess with the state
treasurer as trustee for the delinquent taxpayer.