43-327. Recomputation of tax or amended return due after federal adjustment; definition

A. If the amount of taxable income for any year of any taxpayer as reported to the United States treasury department is changed or corrected by the commissioner of internal revenue or other officer of the United States or other competent authority, or if a renegotiation of a contract or subcontract with the United States results in a change in taxable income, such taxpayer within ninety days after the final determination of such change or correction or renegotiation shall either:

1. File with the department a copy of the final determination, concede the accuracy of the determination or state any errors and request the department to recompute the tax owed to this state. Recomputing the tax by the department is not considered to be an audit for purposes of section 42-2059.

2. File an amended return as required by the department of revenue.

B. For federal changes to which section 43-1414 applies:

1. If the partnership passes through to each partner the partner's distributive share of any adjustments pursuant to section 43-1414, subsection B, paragraph 2, the statement provided to each partner under section 43-1414, subsection B, paragraph 2 is considered to be a change in taxable income of the partner by the commissioner of internal revenue for the taxable year of the partner in which the reviewed year of the partnership ends. The partners shall each file an amended return within one hundred fifty days after the final determination of the partnership adjustments by the internal revenue service to report their share of the partnership adjustments as reported to them in the statement provided by the partnership pursuant to section 43-1414, subsection B, paragraph 2.

2. If the partnership is required to report federal changes and pay the tax pursuant to section 43-1414, subsection B, paragraph 1, the partnership shall file the return required under section 43-1414, subsection A and pay the tax within ninety days after the final determination of the partnership adjustments by the internal revenue service.

C. The department may require an amended return if the department lacks the necessary information to recompute the tax owed to this state.

D. Any taxpayer filing an amended return with the United States treasury department shall also file within ninety days of the final determination by the United States treasury department an amended return with the department of revenue, which shall contain such information as it shall require.

E. For the purposes of this section, assessments under a partial agreement, closing agreement covering specific matters, jeopardy or advance payment are considered part of the final determination and must be submitted to the department with the final determination.

F. If a partial agreement, a closing agreement covering specific matters or any other agreement with the United States treasury department would be final except for a federal extension still open for flow through adjustments from other entities or other jurisdictions, the final determination is the date the taxpayer signs the agreement. Flow through adjustments are finally determined based on criteria specified in subsection H of this section.

G. The department is not required to issue refunds based on any agreement other than a final determination.

H. For the purposes of this section, " final determination" means the appeal rights of both parties have expired or have been exhausted relative to the tax year.