(a) If the Commissioner is not satisfied that the report filed or the amount of tax paid by a rental company is accurate, after investigating and finding such inaccuracy, he or she may make an additional assessment of taxes due from such rental company based upon his or her investigation. A penalty equal to 10 percent and interest at the rate of one and one-half percent per month shall be payable on the additional assessment, with interest computed from the date the tax payment was due. The Commissioner shall give notice by mail to the rental company of the additional assessment, penalty, and interest and shall designate the error or reason for such assessment. Payment shall be due within 30 days of the date of mailing the notice.

(b) When no report or payment of tax has been made as required by subsection 8905(d) of this title, or when a willfully false or fraudulent report has been filed, the tax may be assessed at any time; in all other cases, no assessment of additional tax, and the mailing of notice thereof, shall be made after the expiration of three years from the date of filing a report. (Added 1983, No. 251 (Adj. Sess.), § 13, eff. Jan. 1, 1985.)