1. (a) Assessments.

   1. (1) The comptroller has four years from the date the tax becomes due and payable in which to assess the liability. For the statute of limitations regarding refunds, see §3.325 of this title (relating to Refunds and Payments under Protest). Before the expiration of the statute of limitations, the comptroller and a taxpayer may agree in writing to an extension. The agreement must comply with the provisions of the Texas Tax Code, §111.203.
   2. (2) An extension applies only to the periods specifically mentioned in the agreement. Any assessment or refund request pertaining to periods for which limitations have been extended must be made prior to the expiration date of the agreement. Following expiration of the agreement, the statute of limitations applies to subsequent assessments and refund requests as if no extension had been authorized.
   3. (3) In cases of fraud, or if sales tax returns have not been filed, the statute of limitations does not apply and the comptroller may assess and collect taxes, penalties, and interest at any time. The statute of limitations does not apply when information contained in the report of a taxpayer contains a gross error and the amount of tax due and payable after correction of the error is 25% or more greater than the amount initially reported.
   4. (4) The statute of limitations does not apply to any period for which a taxpayer has filed a timely claim for a sales tax refund. If, while investigating the merits of the refund claim, the comptroller determines that additional tax is due, an assessment may be made for that period until a final decision is made on the claim for refund.
2. (b) Successor liability. In the case of successor liability, the comptroller has four years in which to issue a notice of deficiency or jeopardy determination to the purchaser of the business or stock of goods. The four-year period in which the comptroller may assess begins to run for the purchaser from the date of the sale to the purchaser or from the date a determination issued to the seller becomes final, whichever event occurs later.
3. (c) Suit for collection. The comptroller has three years from the date that the deficiency determination becomes due and payable, the jeopardy determination becomes final, or after the last recording of a lien, in which to file suit for collection of the taxes, penalties, and interest. If a redetermination hearing is requested, the determination will not become final until a redetermination decision is issued and becomes final.
4. (d) Notice of delinquency. The comptroller has three years from the date that the deficiency determination becomes due and payable, the jeopardy determination becomes final, the last recording of a lien, or the redetermination decision becomes final to give notice of delinquency to all persons who have in their possession or under their control any credits or other personal property belonging to the delinquent, or who owe any debts to the delinquent.
5. (e) Seizure. The comptroller has three years from the date that the deficiency determination becomes due and payable, the jeopardy determination becomes final, or the redetermination decision becomes final to seize any property of the delinquent and sell the property, or a sufficient part of it, at public auction to pay the taxes, penalties, and interest due.
6. (f) Remedies cumulative. The remedies of the state are cumulative and no action taken by the comptroller or the attorney general constitutes an election by the state to pursue any remedy to the exclusion of any other remedy for which provision is made.

Source Note:The provisions of this §3.339 adopted to be effective January 1, 1976; amended to be effective November 15, 1978, 3 TexReg 3837; amended to be effective February 13, 1984, 9 TexReg 581.