(a) The department, after notification as provided in subsection (b) of this section, may require any person subject to provisions of law administered by the department, not including Section 12-35-330, to post a cash or surety bond if the person fails to file a timely return or pay any tax for as many as two tax filing periods in a twelve-month period. The amount of the bond must be determined by the department and may not be greater than three times the estimated average liability each filing period of the person required to file the return. A cash bond must be held by the State Treasurer, without interest, as surety conditioned upon prompt payment of all taxes, penalties, and interest imposed by law upon the person. When any person required to post a bond complies with all requirements of law and regulations for a period of twenty-four consecutive months, the department shall return the bond and cancel the bonding requirements.
(b) The department shall serve the notice required by subsection (b) of this section by certified mail, or by an authorized agent of the department delivering the notice to the person in hand or by leaving the notice at the person's last or usual place of abode or at his place of business or employment. For corporations, partnerships, or trusts, the notice may be delivered by certified mail, or by an authorized agent for the department delivering the notice to an officer, partner, or trustee in hand, or by leaving the notice at the officer's, partner's, or trustee's last or usual place of abode or at his place of business or employment.