42-2055. Taxpayer assistance orders

A. The problem resolution officer, with or without a formal written request from a taxpayer, may issue a taxpayer assistance order that suspends or stays an action or proposed action by the department if, in the problem resolution officer's determination, a taxpayer is suffering or will suffer a significant hardship due to the manner in which the department administers the tax laws.

B. A taxpayer assistance order may require the department to release the taxpayer's property that has been levied on, cease any action or refrain from taking any action to enforce state tax laws against the taxpayer pending resolution of the issue or issues giving rise to the order.

C. The director or the problem resolution officer may modify, reverse or rescind a taxpayer assistance order. A taxpayer assistance order is binding on the department until it is reversed or rescinded.

D. The running of the applicable period of limitations for any action that is the subject of a taxpayer assistance order is suspended from the date the taxpayer applies for the order or the date the order is issued, whichever is earlier, until the order's expiration date, modification date or rescission date, if any. Interest that would otherwise accrue on an outstanding tax obligation is not affected by the issuance of a taxpayer assistance order.

E. A taxpayer assistance order may not be used:

1. To contest the merits of a tax liability.

2. As a substitute for informal protest procedures or administrative or judicial proceedings to review a deficiency assessment, collection action or denial of a refund claim.