Chapter 1 Administrative Operations 2022

710:1 OKLAHOMA TAX COMMISSION

CHAPTER 1. ADMINISTRATIVE OPERATIONS

Subchapter

1. General Provisions ................................................................................................................................ 710:1-1

3. Public Policy ............................................................................................................................................ 710:1-3

5. Practice and Procedure .................................................................................................................. 710:1-5

8. Tax Amnesty Program [EXPIRED] ........................................................................................... 710:1-8

9. Oklahoma Voluntary Compliance Initiative [EXPIRED] .......................................... 710-1-9

11. Retailer Compliance Initiative [EXPIRED] ........................................................................ 710-1-11

13. Consumer Compliance Initiative.......................................................................................... 710-1-13

15. Oklahoma Voluntary Compliance Initiative 2015 [EXPIRED] ......................... 710:1-15

17. Oklahoma Voluntary Disclosure Initiative [EXPIRED] ........................................... 710:1-17

Appendix A. Schedule of Fees

[Authority: 68 O.S. §§118(B), 203, 205(C)(7), 205.2(H), 212, 216.3, 216.4, 218(A),

219.1(H), 221.1, 236, 1406.1, and 1407.4(D); 75 O.S. §§302, 305, 307]

[Source: Codified 12-30-91]

710:1 OKLAHOMA TAX COMMISSION

CHAPTER 1. ADMINISTRATIVE OPERATIONS

SUBCHAPTER 1. GENERAL PROVISIONS ...................................................................................................................... 1

710:1-1-1. Purpose ........................................................................................................................................................... 1

710:1-1-2. General description of the Oklahoma Tax Commission ............................................................. 1

710:1-1-3. Statutory citation ....................................................................................................................................... 3

SUBCHAPTER 3. PUBLIC POLICY ....................................................................................................................................... 3

PART 1. GENERAL PROVISIONS ........................................................................................................................................ 3

710:1-3-1. Purpose ........................................................................................................................................................... 3

710:1-3-2. Required forms and where available ................................................................................................ 3

PART 3. TAXPAYER IDENTIFICATION .............................................................................................................................. 4

710:1-3-5. Intent of rule ................................................................................................................................................ 4

710:1-3-6. Use of Federal Employer Identification Numbers and other identification numbers

mandatory ........................................................................................................................................................................ 4

710:1-3-7. Checks made payable to the Oklahoma Tax Commission; use of Federal Employer

Identification Numbers, Social Security Numbers mandatory [REVOKED] .............................................. 4

710:1-3-8. Confidentiality of records....................................................................................................................... 4

710:1-3-9. [RESERVED] ................................................................................................................................................. 4

710:1-3-10. [RESERVED] ............................................................................................................................................... 4

710:1-3-11. [RESERVED] ................................................................................................................................................. 4

710:1-3-12. [RESERVED] ................................................................................................................................................ 5

710:1-3-13. [RESERVED] ................................................................................................................................................ 5

710:1-3-14. [RESERVED] ................................................................................................................................................ 5

710:1-3-15. Use of driver license number; exception ......................................................................................... 5

PART 5. FILING AND MAILING OF DOCUMENTS ............................................................................................................ 5

710:1-3-30. Timely filing ............................................................................................................................................... 5

710:1-3-31. Sender assumes risk of untimeliness of mail ................................................................................ 6

710:1-3-32. Documentation to avoid risk of untimeliness ............................................................................. 6

710:1-3-33. Designated delivery service ................................................................................................................ 6

PART 7. TAXPAYER PAYMENTS ........................................................................................................................................ 7

710:1-3-40. Allocation of voluntary payments to delinquent tax, penalty, interest [REVOKED] ... 7

710:1-3-41. Taxpayer may request particular allocation [REVOKED] ....................................................... 7

710:1-3-42. Interest [REVOKED] ................................................................................................................................ 7

710:1-3-43. Effective date of this Part [REVOKED] ............................................................................................ 7

710:1-3-44. Payment of tax, penalty and interest under protest [REVOKED] ........................................ 7

710:1-3-45. Definitions .................................................................................................................................................. 8

710:1-3-46. Partial payment of tax liabilities; allocation to taxes, penalties, interest, service

charges, and fees ............................................................................................................................................................. 8

710:1-3-47. Payment under protest ......................................................................................................................... 9

710:1-3-48. Payment of taxes by credit card ....................................................................................................... 9

PART 9. EXECUTION OF TAX WARRANTS .................................................................................................................. 10

710:1-3-50. Purpose ..................................................................................................................................................... 10

710:1-3-51. Execution on tax warrant and collection of sheriff's penalty .............................................. 10

710:1-3-52. Execution and collection duty; return of voucher .................................................................... 11

710:1-3-53. County sheriff Collection duty ......................................................................................................... 11

710:1-3-54. Release of tax warrants ..................................................................................................................... 11

710:1-3-55. Procedures for remittance and deposit of collections; apportionment; recordkeeping

.............................................................................................................................................................................................. 11

710:1-3-56. Collection fee attaches to tax warrant ........................................................................................ 12

710:1 OKLAHOMA TAX COMMISSION

710:1-3-57. Collection fee subject to audit ......................................................................................................... 12

710:1-3-58. Time limit for collection and return of warrant ........................................................................ 12

710:1-3-59. Taxpayer bankruptcy .......................................................................................................................... 12

710:1-3-60. Verification of discrepancies ........................................................................................................... 12

710:1-3-61. Validity of tax warrant ........................................................................................................................ 12

710:1-3-62. Instructional material available to sheriffs ............................................................................... 12

PART 11. PUBLIC RECORDS ................................................................................................................................................ 13

710:1-3-70. Records in general ................................................................................................................................ 13

710:1-3-71. Rules of the Oklahoma Tax Commission ...................................................................................... 14

710:1-3-72. Decisions of the Oklahoma Tax Commission ............................................................................. 14

710:1-3-73. Opinions and letter rulings ................................................................................................................ 15

710:1-3-74. Public records available under other provisions of law [REVOKED] ................................ 16

710:1-3-75. Fees for copying, retrieval, reproduction, and certification of public documents

[REVOKED] ....................................................................................................................................................................... 16

PART 13. OTHER POLICY PROVISIONS ........................................................................................................................... 16

710:1-3-80. Procedures for partial release of tax warrant or lien ............................................................. 16

710:1-3-81. Irrevocable letter of credit in lieu of bond [REVOKED] ............................................................ 17

710:1-3-82. Calculation of amount of nonresident contractor bond to be posted ................................ 17

710:1-3-83. Increases in amount of nonresident contractor bond to be posted ................................. 18

SUBCHAPTER 5. PRACTICE AND PROCEDURE ............................................................................................................ 18

PART 1. GENERAL PROVISIONS ....................................................................................................................................... 18

710:1-5-1. Purpose ......................................................................................................................................................... 18

PART 3. DESCRIPTION OF ADMINISTRATIVE REVIEW AND HEARINGS .............................................................. 19

710:1-5-10. Tax protests and claims for refund ................................................................................................... 19

710:1-5-11. Petitions for abatement ...................................................................................................................... 21

710:1-5-12. Petitions for waiver of interest or penalty (or both) ................................................................. 21

710:1-5-13. Settlement of claims or protests ..................................................................................................... 21

710:1-5-14. Criminal tax prosecution and referral .............................................................................................. 22

710:1-5-15. Requests for rulemaking action ...................................................................................................... 22

710:1-5-16. Rulemaking procedure and hearings ............................................................................................ 23

710:1-5-17. Petitions for declaratory rulings ...................................................................................................... 25

PART 5. ADMINISTRATIVE PROCEEDINGS RELATED TO TAX PROTESTS .......................................................... 27

710:1-5-20. Purpose and general overview of taxpayer protest procedure [REVOKED] ................. 27

710:1-5-21. Intent, scope and construction of rules ......................................................................................... 27

710:1-5-22. Commencement and numbering of a protest ........................................................................... 27

710:1-5-23. Protests in writing and timely filed; applications for hearings .......................................... 28

710:1-5-24. Protests to denials of claims for refunds ..................................................................................... 28

710:1-5-25. Content of protests and applications for hearing ................................................................... 28

710:1-5-26. Pleadings to be on 8 ½ " x 11" paper ............................................................................................... 28

710:1-5-27. Representation and participation in administrative proceedings ...................................... 29

710:1-5-28. Pre-hearing conference ...................................................................................................................... 29

710:1-5-29. Notice of hearing ................................................................................................................................... 30

710:1-5-30. Continuances or extensions ............................................................................................................. 30

710:1-5-31. Administrative law judge to hear case ......................................................................................... 30

710:1-5-32. Conduct of hearing ............................................................................................................................... 31

710:1-5-33. Discovery .................................................................................................................................................. 31

710:1-5-34. Rules of evidence ................................................................................................................................... 32

710:1-5-35. Oral evidence, witnesses and penalty for false statements ................................................ 33

710:1-5-36. Evidence by official notice ................................................................................................................ 33

710:1-5-37. Transcript of oral hearings; request for certified court reporter ............................................ 33

710:1 OKLAHOMA TAX COMMISSION

710:1-5-38. Submission of case on briefs ............................................................................................................ 33

710:1-5-38.1 Motion for summary disposition ................................................................................................... 34

710:1-5-39. Findings, conclusions and recommendations ............................................................................. 35

710:1-5-40. Options available to parties after action by Administrative Law Judge ........................... 35

710:1-5-41. Decision and order of the Oklahoma Tax Commission ............................................................. 37

710:1-5-42. Appeals from orders of the Oklahoma Tax Commission ......................................................... 38

710:1-5-43. Exceptions to the requirement for exhausting administrative remedies ......................... 38

710:1-5-44. Computation of time ............................................................................................................................. 38

710:1-5-45. Service of documents ............................................................................................................................ 39

710:1-5-46. Dismissal of case .................................................................................................................................... 39

710:1-5-47. Burden of proof ........................................................................................................................................ 40

710:1-5-48. Effective date of the Part ..................................................................................................................... 40

710:1-5-49. Survival and abatement of protests ................................................................................................ 40

PART 7. ABATEMENT OF ERRONEOUS TAX ASSESSMENT .................................................................................... 41

710:1-5-70. Purpose ...................................................................................................................................................... 41

710:1-5-71, When an assessment becomes final ................................................................................................ 41

710:1-5-72. Request for adjustment or abatement ........................................................................................... 42

710:1-5-73. Initial review, determination of abatement request ................................................................. 42

710:1-5-74. Notification of initial disposition of abatement request; procedure upon denial by

Division .............................................................................................................................................................................. 42

710:1-5-75. Docketing of abatement request ..................................................................................................... 43

710:1-5-76. Presentation of abatement request to Commission ................................................................. 43

710:1-5-77. "Preponderance of the evidence" and "clearly erroneous" defined; burden of proof for

tax abatement purposes ............................................................................................................................................ 43

710:1-5-78. No appeal; no stay of collection proceedings as a result of abatement request ........ 44

PART 8. SETTLEMENT OF TAX LIABILITY ....................................................................................................................... 44

710:1-5-80. Purpose ...................................................................................................................................................... 44

710:1-5-81. Definitions .................................................................................................................................................. 44

710:1-5-82. Grounds for settlement ........................................................................................................................ 45

710:1-5-83. Eligibility requirements for settlement .......................................................................................... 45

710:1-5-84. Application for a Settlement Agreement ...................................................................................... 46

710:1-5-85. Effect of Offer in Compromise by the Internal Revenue Service ............................................ 46

710:1-5-86. Review by Commission ........................................................................................................................ 47

710:1-5-87. Disclosure .................................................................................................................................................. 48

710:1-5-88. Effect of a Settlement Agreement ................................................................................................... 48

710:1-5-89. Payment .................................................................................................................................................... 49

710:1-5-90. If the proposed Settlement Agreement is declined ................................................................... 50

710:1-5-91. Return of Settlement Agreement Application............................................................................ 50

710:1-5-92. Exclusivity of request for settlement of tax liability .................................................................. 50

710:1-5-93. Officials ineligible for Settlement Agreement ............................................................................. 51

PART 9. PROCEEDINGS RELATED TO PERMITS AND LICENSES ............................................................................ 51

710:1-5-100. Show cause hearings .......................................................................................................................... 51

PART 10. BUSINESS COMPLIANCE PROCEEDINGS .................................................................................................. 51

710:1-5-110. Definitions ............................................................................................................................................... 51

710:1-5-111. Noncompliant taxpayer determination and advisory notice .............................................. 51

710:1-5-112. Commencement of twenty-four (24) month period and examples .................................. 52

710:1-5-113. Pending business closure notice ..................................................................................................... 52

710:1-5-114. Closure Order .......................................................................................................................................... 53

710:1-5-115. Installment payment agreements ................................................................................................. 53

710:1-5-116. Interest and penalty waiver requests ........................................................................................... 54

710:1-5-117. Hearing request by noncompliant taxpayer ............................................................................. 54

710:1 OKLAHOMA TAX COMMISSION

710:1-5-118. Timely filing of protest and applications for hearing ............................................................. 55

710:1-5-119. Defenses to business closure ............................................................................................................ 55

710:1-5-120. Hearing procedures governing hearing requests to pending business closure notice

.............................................................................................................................................................................................. 55

710:1-5-121. Hearing officer decisions ................................................................................................................... 55

710:1-5-122. Business closure ................................................................................................................................... 56

710:1-5-123. District Court injunctions .................................................................................................................. 56

PART 11. DISQUALIFICATION OF PERSONS REPRESENTING TAXPAYERS BEFORE THE OKLAHOMA

TAX COMMISSION ............................................................................................................................................................... 56

710:1-5-200. Disqualification procedure .............................................................................................................. 56

SUBCHAPTER 8. TAX AMNESTY PROGRAM [EXPIRED] ............................................................................................. 57

710:1-8-1. General provisions [EXPIRED] ............................................................................................................... 57

710:1-8-2. Definitions [EXPIRED] .............................................................................................................................. 57

710:1-8-3. Eligible tax liabilities to which tax amnesty may apply [EXPIRED] ....................................... 57

710:1-8-4. Qualification for amnesty program [EXPIRED] .............................................................................. 58

710:1-8-5. Application procedures [EXPIRED] .................................................................................................... 58

710:1-8-6. Verification and review [EXPIRED] ..................................................................................................... 58

710:1-8-7. Disclosure [EXPIRED] ............................................................................................................................... 58

710:1-8-8. Special circumstances [EXPIRED] ...................................................................................................... 58

SUBCHAPTER 9. OKLAHOMA VOLUNTARY COMPLIANCE INITIATIVE [EXPIRED] .......................................... 58

710:1-9-1. General provisions [EXPIRED] ............................................................................................................... 58

710:1-9-2. Definitions [EXPIRED].............................................................................................................................. 58

710:1-9-3. Eligible tax liabilities to which Voluntary Compliance Initiative may apply [EXPIRED]

.............................................................................................................................................................................................. 58

710:1-9-4. Qualification for Voluntary Compliance Initiative [EXPIRED] ................................................ 58

710:1-9-5. Application procedures [EXPIRED] .................................................................................................... 58

710:1-9-6. Verification and review [EXPIRED] .................................................................................................... 58

710:1-9-7. Disclosure [EXPIRED] ............................................................................................................................... 58

710:1-9-8. Nonpayment penalty [EXPIRED] ....................................................................................................... 58

710:1-9-9. Special circumstances [EXPIRED] ..................................................................................................... 59

710:1-9-10. Payment plan guidelines [EXPIRED] .............................................................................................. 59

SUBCHAPTER 11. RETAILER COMPLIANCE INITIATIVE [EXPIRED] ...................................................................... 59

710:1-11-1. Purpose [EXPIRED] .................................................................................................................................. 59

710:1-11-2. [RESERVED] ............................................................................................................................................... 59

710:1-11-3. Definitions [EXPIRED] ............................................................................................................................ 59

710:1-11-4. [RESERVED] ............................................................................................................................................... 59

710:1-11-5. Retailer Compliance Initiative [EXPIRED] .................................................................................... 59

SUBCHAPTER 13. CONSUMER COMPLIANCE INITIATIVE ....................................................................................... 59

710:1-13-1. Purpose ....................................................................................................................................................... 59

710:1-13-2. [RESERVED] .............................................................................................................................................. 59

710:1-13-3. Consumer Compliance Initiative .................................................................................................... 59

SUBCHAPTER 15. OKLAHOMA VOLUNTARY COMPLIANCE INITIATIVE 2015 [EXPIRED] ............................... 60

710:1-15-1. General provisions [EXPIRED]............................................................................................................. 60

710:1-15-2. Definitions [EXPIRED] ........................................................................................................................... 60

710:1-15-3. Eligible tax liabilities to which Voluntary Compliance Initiative may apply

[EXPIRED] ........................................................................................................................................................................ 60

710:1-15-4. Qualification for Voluntary Compliance Initiative [EXPIRED].............................................. 60

710:1-15-5. Payments [EXPIRED] ............................................................................................................................. 60

710:1 OKLAHOMA TAX COMMISSION

710:1-15-6. Verification and review [EXPIRED] .................................................................................................. 60

710:1-15-7. Disclosure [EXPIRED]............................................................................................................................. 60

710:1-15-8. Special circumstances [EXPIRED] ................................................................................................... 61

710:1-15-9. Payment plan guidelines [EXPIRED]............................................................................................... 61

SUBCHAPTER 17. OKLAHOMA VOLUNTARY DISCLOSURE INITIATIVE [EXPIRED] .......................................... 61

710:1-17-1. General provisions [EXPIRED] ............................................................................................................. 61

710:1-17-2. Definitions [EXPIRED] ........................................................................................................................... 61

710:1-17-3. Voluntary Disclosure Initiative [EXPIRED] .................................................................................... 61

710:1-17-4. Eligible tax liabilities to which Voluntary Disclosure Initiative may apply [EXPIRED]

.............................................................................................................................................................................................. 61

710:1-17-5. Eligible taxpayers [EXPIRED] ............................................................................................................ 61

710:1-17-6. Modified Voluntary Disclosure Agreement [EXPIRED] ............................................................ 61

710:1-17-7. Verification and review [EXPIRED] .................................................................................................. 61

710:1-17-8. Disclosure [EXPIRED] ............................................................................................................................ 61

710:1-17-9. Payment plan guidelines [EXPIRED] .............................................................................................. 61

APPENDIX A. SCHEDULE OF FEES ................................................................................................................................ 62

710:1 OKLAHOMA TAX COMMISSION

CHAPTER 1. ADMINISTRATIVE OPERATIONS

SUBCHAPTER 1. GENERAL PROVISIONS

710:1-1-1. Purpose

(a) The provisions of this Chapter have been adopted for the purpose of

compliance with the Oklahoma Administrative Procedures Act, 75 O.S. §§250.1 et

seq., and to facilitate the administration, enforcement, and collection of taxes

and other levies enacted by the Oklahoma Legislature for the general

maintenance and welfare of the State of Oklahoma.

(b) In particular, the purpose of Subchapter 1 is to set out a general description of

the Oklahoma Tax Commission, review the functions performed by the

Commission, and briefly present an overview of the statutory role of the

Commission, its organization and structure.

which require actions to be taken by the Commission shall be contingent on

availability of funding and should there be a reduction or elimination thereof,

the Commission may reduce or suspend performance of the obligation until

such time as funding is provided or secured.

[Source: Amended at 38 Ok Reg 1502, eff 9-1-21]

710:1-1-2. General description of the Oklahoma Tax Commission

(a) History. The Oklahoma Tax Commission, from its inception in 1931, has been

responsible for the collection and administration of various tax sources and the

apportionment of these revenues to state funds which provide monies for

education, transportation, recreation, social welfare, and the myriad of other

services provided for the citizens of Oklahoma.

(b) Composition. The Tax Commission is comprised of three members

(Chairman, Vice Chairman, and Secretary-Member) who are appointed by the

Governor with the advice and consent of the State Senate and serve terms of six

years each. The Commission appoints an administrator who is the

administrative officer of the Tax Commission and manages the activities of its

employees. The title of the administrative officer shall be Executive Director.

and enforcement of state tax laws and the collection of a majority of all state-

levied taxes and fees. The Commission directs the collection and distribution of

the tax and license sources under its administration and, by statute, is

responsible for apportioning such tax revenues to the various state funds. In

addition, the Oklahoma Tax Commission allocates directly to local units of

government certain state-collected levies earmarked to counties, school districts

and municipalities. On a contract basis with individual municipalities and

counties, the Tax Commission is involved with the administration, collection and

distribution of city and county sales taxes and use taxes.

(d) Areas of administration. The public may make submissions and requests to

the Commission in the following areas of taxation and licensing:

710:1 OKLAHOMA TAX COMMISSION

(1) Admission Tax

(2) Aircraft Excise Tax

(3) Aircraft License Fee

(4) Alcoholic Beverage Tax

(5) Amateur Radio Operators License Plate

(6) Bingo Tax

(7) Charity Games Tax

(8) Cigarette Tax & License

(9) Coin Device Decals and Distributor Permits

(10) Compressed Natural Gas

(11) Computer Enhancement Fund

(12) Controlled Dangerous Substances Tax Stamps

(13) County Clerk Fees

(14) Diesel Fuel Excise Tax

(15) Documentary Stamp Tax

(16) Driving Record Fee

(17) Energy Resources Assessment

(18) Farm Implement Tax Stamp

(19) Franchise Tax

(20) Freight Car Tax

(21) Gasoline Excise Tax

(22) Gross Production Tax

(23) Horsetrack Gaming Fees

(24) Income Tax

(25) Income Tax – Check-Offs

(26) Liquefied Natural Gas

(27) Medical Marijuana Excise Tax

(28) Mixed Beverage Gross Receipts Tax

(29) Motor Vehicle Collections

(30) Motor Vehicle Rental Tax

(31) Multiple Injury Trust Fund

(32) Nascar License Plates

(33) 911 Wireless Telephone Fee

(34) Occupational Health & Safety Tax

(35) Oklahoma Tax Commission Reimbursement

(36) Organ Donor Program

(37) Pari-Mutuel Tax

(38) Petroleum Excise Tax

(39) Pick Six/Seven Tax

(40) Printing and Revolving Account

(41) Professional Sporting Event Ticket Fees

(42) Public Services Penalties

(43) Registered Agents Fee

(44) Rural Electric Co-op Tax & License

(45) Sales Tax

(46) Sales Tax Permits

710:1 OKLAHOMA TAX COMMISSION

(47) Sales Tax Vendor's Lists

(48) Special Fuel Decals

(49) Special Fuel Use Tax

(50) Special License Plates

(51) Special Printing Account

(52) Storage Leakage Fund

(53) Sustaining Energy Resources Fee

(54) Telecommunications for the Hearing-Impaired Surcharge

(55) Tobacco Products Tax & License

(56) Transport & Reclaimer License Fees

(57) Tribal Cigarette & Tobacco Payments

(58) Unclassified Receipts

(59) Use Tax

(60) Used Tire Recycling Fee

(61) Vehicle Revenue Tax Stamps

(62) Warrant Release Filing Fee

(63) Wire Transmittal Fee

(64) Workers' Compensation – Insurance Premium Tax

(65) Workers' Compensation – Self-Insurance Guaranty Fund

(e) Main offices. The main offices of the Oklahoma Tax Commission are

located at 123 Robert S. Kerr Ave, Oklahoma City, Oklahoma 73102 (405)521-

3160.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99; Amended at 24 Ok Reg 1688, eff 6-11-07;

Amended at 29 Ok Reg 685, eff 5-25-12; Amended at 38 Ok Reg 1502, eff 9-1-21]

710:1-1-3. Statutory citation

Citations to statutes in this Title refer to the last codification of the statute,

unless such reference results in a clearly erroneous construction, or where a

provision expressly designates otherwise. Statutory references contained in

emergency rules and in rules which are not yet finally adopted, but are currently

within the promulgation process, will generally refer to the most recent

codification.

SUBCHAPTER 3. PUBLIC POLICY

PART 1. GENERAL PROVISIONS

710:1-3-1. Purpose

The provisions of Subchapter 3 are intended to describe general, uniform

policies which are applicable to all tax types, except where other policy is clearly

indicated by statute, controlling case law, or separate, specific Code provision.

710:1-3-2. Required forms and where available

(a) The Oklahoma Tax Commission utilizes a wide variety of forms in the

administration of the tax laws. Oklahoma tax forms may be accessed through

the Tax Commission website at www.tax.ok.gov.

710:1 OKLAHOMA TAX COMMISSION

(b) The Tax Commission may require any person filing a report or return required

by the provisions of any state tax law to file the report or return by electronic

means or may allow, upon a written request, a taxpayer to file a return on paper

that is required to be filed electronically. [68 O.S. § 203]

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99; Amended at 24 Ok Reg 1688, eff 6-11-07]

PART 3. TAXPAYER IDENTIFICATION

710:1-3-5. Intent of rule

The inclusion of Federal Employer's Identification or Social Security Account

Numbers (or both) on filings with the Commission is solely for identification

purposes.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-3-6. Use of Federal Employer Identification Numbers and other

identification numbers mandatory

All returns, applications, and forms required to be filed with the Oklahoma

Tax Commission (Commission) in the administration of this State's tax laws

shall bear the Federal Employer's Identification Number(s), the Taxpayer

Identification Number, and/or other government issued identification number

of the person, firm, or corporation filing the item and of all persons required by

law or agency rule to be named or listed.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99; Amended at 26 Ok Reg 2320, eff 6-25-09;

Amended at 27 Ok Reg 127, eff 10-1-09 (emergency); Amended at 27 Ok Reg 2272, eff 7-11-10;

Amended at 32 Ok Reg 1330, eff 8-27-15]

710:1-3-7. Checks made payable to the Oklahoma Tax Commission; use of

Federal Employer Identification Numbers, Social Security Numbers

mandatory [REVOKED]

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99; Revoked at 32 Ok Reg 1330, eff 8-27-15]

710:1-3-8. Confidentiality of records

All Federal Employer's Identification and/or Social Security Account Numbers

are deemed to be included in the confidential records of the Commission.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-3-9. [RESERVED]

710:1-3-10. [RESERVED]

710:1-3-11. [RESERVED]

710:1 OKLAHOMA TAX COMMISSION

710:1-3-12. [RESERVED]

710:1-3-13. [RESERVED]

710:1-3-14. [RESERVED]

710:1-3-15. Use of driver license number; exception

(a) All returns, applications, and forms required by the Oklahoma Vehicle

Licensing and Registration Act shall bear the driver license number of the person

submitting the return, application, or form.

(b) All checks made payable to the Oklahoma Tax Commission for fees

required under the Oklahoma Vehicle Licensing and Registration Act shall bear

the driver license number of the person issuing or drawing the check, or of the

person on whose behalf the check is written.

may be submitted on the return, application, form, or check described in

subsections (a) and (b) of this Section, if the person has no driver license. [See:

47 O.S. §1144]

PART 5. FILING AND MAILING OF DOCUMENTS

710:1-3-30. Timely filing

(a) General definition. When the last date for filing any document or

performing any act required by the Oklahoma Tax Commission falls on a day

when the offices are not open for business, the filing of the document or

performance of the act shall be considered timely if it is performed by the end of

the next business day.

(b) When filing is by mail, timely filing shall be defined as follows. If any

claim, statement, or other document required by law or agency rule to be filed

within a prescribed period, or on or before a prescribed date, is delivered after

the prescribed period or date by the United States Postal Service or other

delivery service designated by OAC 710:1-3-33 to the Oklahoma Tax Commission,

at 123 Robert S. Kerr Ave, Oklahoma City, Oklahoma 73102, the date of the United

States postmark, stamped on the cover in which the claim, statement, or other

document is mailed or the date recorded pursuant to OAC 710:1-3-33 by a

designated delivery service shall be considered to be the date of delivery.

(1) Determined with regard to any extension of time granted for the filing;

(2) Only if the postmark date or date recorded by a designated delivery

service falls within the prescribed period, or on or before the prescribed date

for filing the claim, statement, or other document; and,

(3) Only if the claim, statement, or other document was, within the

prescribed time, deposited in the mail in the United States or placed with a

designated delivery service, in an envelope or other appropriate wrapper,

postage prepaid, properly addressed to the agency, office, or officer with

which the claim, statement, or other document is required to be filed.

710:1 OKLAHOMA TAX COMMISSION

[Source: Amended at 22 Ok Reg 1514, eff 6-11-05]

710:1-3-31. Sender assumes risk of untimeliness of mail

(a) The sender who relies upon the applicability of the definition of timely

filing in 710:1-3-30 by mailing a claim, statement, or other document, assumes

the risk that the postmark will bear a date, on or before the last date or day, of

the period prescribed for filing the document.

(b) If the postmark on the envelope or wrapper is not legible or the envelope is

unavailable, the person who is required to file the document has the burden of

proving when the postmark was made or when the claim, statement, or other

document was placed for delivery with a designated delivery service. [See: OAC

710:1-3-33]

[Source: Amended at 22 Ok Reg 1514, eff 6-11-05]

710:1-3-32. Documentation to avoid risk of untimeliness

(a) If a document is sent by United States Registered Mail or by a delivery

service designated in OAC 710:1-3-33, the date of registration of the document

shall be treated as the postmark date.

(b) If a document is sent by United States Certified Mail or by a delivery service

designated in OAC 710:1-3-33, and the sender's receipt is dated by the service's

employee, the date on the receipt shall be treated as the postmark date of the

document.

[Source: Amended at 22 Ok Reg 1514, eff 6-11-05]

710:1-3-33. Designated delivery service

(a) For purposes of filing any document or performing any act required by the

Oklahoma Tax Commission, in addition to the United States Postal Service

(USPS), the Commission may designate delivery services that are substantially

equivalent to USPS registered or certified mail.

(b) To qualify as a designated delivery service, the service must:

(1) Be available to the general public;

(2) Be as timely and reliable, on a regular basis, as the USPS; and,

(3) Record electronically to its data base, kept in the regular course of

business, the date on which the item was given to the service for delivery; or,

(4) Mark on the cover of the item to be delivered, the date on which the

item was given to the service for delivery.

by the Tax Commission as meeting the required standards prescribed in (b) of

this Section.

(1) Airborne Express (Airborne)

(A) Overnight Air Express Service

(B) Next Afternoon Service

710:1 OKLAHOMA TAX COMMISSION

(2) DHL Worldwide Express

(A) DHL "Same Day" Service

(B) DHL USA Overnight

(3) Federal Express (FedEx)

(A) FedEx Priority Overnight

(B) FedEx Standard Overnight

(D) FedEx International Priority

(E) FedEx International First

(4) United Parcel Service (UPS)

(A) UPS Next Day Air

(B) UPS Next Day Air Saver

(D) UPS 2nd Day Air A.M.

(d) Only the designated private delivery services and the types of services listed

in (c) of this Section qualify for consideration under the "timely filing" provision in

68 O.S. § 221.1. The designated private delivery services listed in this Section are

effective until the Commission amends the list.

(e) The "timely filing" rule, OAC 710:1-3-30, does not apply if a taxpayer uses a

business that contracts with a designated delivery service, but the business is not

itself a designated delivery service.

[Source: Added at 22 Ok Reg 1514, eff 6-11-05]

PART 7. TAXPAYER PAYMENTS

710:1-3-40. Allocation of voluntary payments to delinquent tax, penalty,

interest [REVOKED]

[Source: Revoked at 10 Ok Reg 3819, eff 7-12-93]

710:1-3-41. Taxpayer may request particular allocation [REVOKED]

[Source: Revoked at 10 Ok Reg 3819, eff 7-12-93]

710:1-3-42. Interest [REVOKED]

[Source: Revoked at 10 Ok Reg 3819, eff 7-12-93]

710:1-3-43. Effective date of this Part [REVOKED]

[Source: Revoked at 10 Ok Reg 3819, eff 7-12-93]

710:1-3-44. Payment of tax, penalty and interest under protest [REVOKED]

[Source: Revoked at 10 Ok Reg 3819, eff 7-12-93]

710:1 OKLAHOMA TAX COMMISSION

710:1-3-45. Definitions

The following words and terms, when used in this Part, shall have the

following meaning, unless the context clearly indicates otherwise:

"Involuntary payment" means any payment received by the Commission as a

result of or in connection with any distraint, levy, seizure, attachment or

garnishment, or any other legal proceeding or administrative action wherein the

Commission seeks to collect or enforce the collection of a tax liability or to file a

claim therefor. Such proceedings and actions include, but are not limited to,

bankruptcy proceedings, the filing and forwarding of tax warrants directing the

levy and sale of property, and any administrative action or proceeding wherein

the Commission proposes to revoke, cancel, suspend or deny any license, permit

or privilege because of an outstanding tax liability. Payments made pursuant to

an installment or "payout" agreement entered into as a result of or subsequent

to the institution of any of the above collection measures are deemed

involuntary payments.

"Liability period" means the reporting period of a delinquent tax or tax

liability, or, in the case of tax liabilities determined as a deficiency, all reporting

periods included in the assessment of such deficiency. For purposes of

determining the earlier of two or more liability periods, the beginning date of

each liability period is used.

"Partial payment" means any payment to or receipt by the Commission of an

amount less than sufficient to pay in full all tax liabilities of the taxpayer.

"Tax liability" means delinquent taxes and tax amounts determined as a

deficiency, and includes all penalties, interest, service charges and fees accrued

and accruing in relation thereto.

"Voluntary payment" means a payment made prior to or in the absence of

any legal proceeding or administrative action in or by which the Commission

seeks to collect or enforce the collection of a tax liability. Payments made

pursuant to an agreement voluntarily entered into between the taxpayer and

the Commission prior to such legal proceeding or administrative action will

continue to be deemed as voluntary payments only so long as the taxpayer

remains in full compliance with the terms of such agreement.

[Source: Added at 10 Ok Reg 3819, eff 7-12-93]

710:1-3-46. Partial payment of tax liabilities; allocation to taxes, penalties,

interest, service charges, and fees

(a) Voluntary payments. Voluntary partial payments of tax liabilities will be

applied to such liabilities in the manner designated by the taxpayer, where the

taxpayer provides specific written instructions for the application of such

payments. If the taxpayer fails to give specific written instructions for the

application of a voluntary partial payment, the Commission will allocate and

apply such payment in the same manner as provided for involuntary payments.

(b) Involuntary payments. The taxpayer has no right to direct or designate the

allocation or application of an involuntary payment. In all instances, the

Commission will allocate and apply involuntary partial payments in the manner

710:1 OKLAHOMA TAX COMMISSION

which, in the discretion of the Commission, will best serve the interests of the

State. Generally, unless the Commission determines that a different allocation

will better serve the State's interests, involuntary partial payments will be

allocated and applied in the following manner:

(1) First, to the tax portion of non-trust fund tax liabilities, beginning with the

earliest such liability period, and then to the tax portion of each succeeding

liability period until all non-trust fund taxes are paid;

(2) Next, to the tax portion of all trust fund tax liabilities, beginning with the

earliest such liability period, and then to the tax portion of each succeeding

liability period until all trust fund taxes are paid;

(3) Next, to the interest, penalties, service charges, and fees, in that order,

associated with non-trust fund tax liabilities, beginning with the earliest such

liability period, and then in the same order for each succeeding liability

period(s) until all interest, penalties, service charges, and fees associated with

non-trust fund tax liabilities have been paid;

(4) Next, to the interest, penalties, service charges, and fees, in that order,

associated with trust fund tax liabilities, beginning with the earliest such

liability period, and then in the same order for each succeeding liability

period(s) until all interest, penalties, service charges, and fees associated with

trust fund tax liabilities have been paid.

[Source: Added at 10 Ok Reg 3819, eff 7-12-93; Amended at 12 Ok Reg 139, eff 9-29-94

(emergency); Amended at 12 Ok Reg 2923, eff 7-14-95; Amended at 22 Ok Reg 1515, eff 6-11-05]

710:1-3-47. Payment under protest

In any case where a taxpayer files a written protest to a proposed assessment

as provided by 68 O.S. §221, the taxpayer may pay the tax amounts proposed to

be assessed and designate such payment as being made under protest. Such

payment will stop the accrual of interest on the amounts so paid. If the

Commission sustains the protest, in whole or in part, the amount determined by

the Commission not to be due shall be refunded to the taxpayer, without

interest, except as otherwise provided by law.

[Source: Added at 10 Ok Reg 3819, eff 7-12-93]

710:1-3-48. Payment of taxes by credit card

(a) "Nationally recognized" credit card means any instrument or device,

whether known as a credit card, credit plate, charge plate or by any other name,

issued with or without fee by an issuer for the use of the cardholder in obtaining

goods, services or anything else of value on credit which is accepted by over one

thousand merchants in this state. The Oklahoma Tax Commission shall

determine which nationally recognized credit cards will be accepted for

payment of taxes. Currently Discover, American Express, Visa and MasterCard

are accepted.

(b) Implementation of payment by credit card will be phased in over a period

of time as determined by the Commission.

710:1 OKLAHOMA TAX COMMISSION

(1) Initially, payment of taxes by credit card will only be allowed at the

current designated receiving points or by designated agents.

(2) When tax return forms are modified to include credit card information in

a designated area on the form, payment by this method will be accepted

when the tax return document is submitted.

acceptance of credit card to insure that no loss of state revenue will occur by the

use of such card.

(1) If a taxpayer is at a designated receiving point and credit is not available,

the taxpayer then has the opportunity to pay by other methods accepted by

the Commission.

(2) If the taxpayer mails the credit card information with their return and

credit is not available, the return will be handled as a document with no

remittance and a bill will be forthcoming.

(d) The Tax Commission may add an amount equal to the amount of the

service charge incurred, not to exceed four percent (4%) of the amount of such

payment as a service charge for the acceptance of such credit card.

(e) Credit card payments should not be mixed with other type payments, i.e.

checks, cash.

(f) The Commission will contract a third party to process credit card

transactions who will place monies received into the Commission's account with

the State Treasurers Office and report such payments to the Commission.

(g) Taxpayers wishing to pay by credit cards must be willing to submit

normally required credit card information to the Commission. This includes, but

is not limited to: card type (VISA, etc.), card number, card expiration date, and

card holder name as shown. The Commission assumes no liability for

unauthorized use of this information.

[Source: Reserved at 10 Ok Reg 3819, eff 7-12-93; Added at 11 Ok Reg 3465, eff 6-26-94]

PART 9. EXECUTION OF TAX WARRANTS

710:1-3-50. Purpose

The intent of this Part is to provide an efficient system for the collection of

taxes evidenced by tax warrants and to provide for the prompt disbursement to

sheriffs of fees and expenses authorized by law. [See: 68 O.S. §231.1]

710:1-3-51. Execution on tax warrant and collection of sheriff's penalty

The Sheriff shall execute all warrants as provided by law. All monies so

collected shall be made payable to the Oklahoma Tax Commission. The Sheriff's

office is entitled under the law to an amount of money equal to an additional

penalty of Fifteen Dollars ($15.00), or an amount equal to Ten Percent of the total

amount of tax, penalty, and interest collected in the execution of a tax warrant,

whichever amount is greater, but not to exceed $200.00, to be paid to the

County Sheriff's Office after collection of the amounts due by the Sheriff,

Undersheriff, or Deputy Sheriff.

710:1 OKLAHOMA TAX COMMISSION

(1) The penalty imposed shall not be assessed or collected more than once

for the execution of a tax warrant in each county.

(2) The penalties paid to the sheriff are to be used by the sheriff's department

to increase efforts to locate tax debtors and their property, to execute upon

tax warrants, and to collect delinquent taxes.

[Source: Amended at 10 Ok Reg 3819, eff 7-12-93; Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-3-52. Execution and collection duty; return of voucher

Tax warrants for delinquent tax, penalty and interest will be issued by the

Oklahoma Tax Commission. Once issued by the Commission, the warrants will

be filed by the county clerk and forwarded to the county sheriff. The sheriff is to

actively pursue collection of each warrant delivered.

710:1-3-53. County sheriff Collection duty

In execution of tax warrants, and to qualify for collection fee disbursement

pursuant to this Rule, the county sheriff's activity shall include, but not be limited

to: phone contacts, letters, and personal visits. The sheriff must be able to

document the date and type of contact made for each tax warrant for which the

sheriff is claiming a fee.

710:1-3-54. Release of tax warrants

A tax warrant issued by the Oklahoma Tax Commission shall only be released

by the Commission, after a determination by the Income Tax Accounts Division

of the Oklahoma Tax Commission that:

(1) The tax, penalty and interest to date has been paid in full.

(2) The penalty imposed by law and all other fees authorized by law have

been paid in full.

(3) Such release shall be processed under Commission procedures, after

clearance by the Income Tax Accounts Division.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-3-55. Procedures for remittance and deposit of collections;

apportionment; recordkeeping

(a) All tax warrants collected upon by a county sheriff must be returned

monthly, attached to a tax warrant summary sheet. Each tax warrant collection

summary sheet must have a check attached for the total collected, including

collection fee.

(b) All collections shall be deposited within 48 hours of collection to a separate

account in the county, maintained by each sheriff and used exclusively for these

deposits.

summary sheet, to the Commission.

(d) The Commission shall process, account for and disburse the funds as

provided by law. The checks transferred to the Commission shall be deposited

710:1 OKLAHOMA TAX COMMISSION

in the Oklahoma Tax Commission Fund.

(e) The sheriff's fee shall be apportioned and returned to the sheriff as soon as

practicable after deposit and verification that payment of tax, penalty, interest

and fees has been made in full.

(f) Sheriffs shall maintain records of deposits made to the Oklahoma Tax

Commission fund. Such records shall be kept on forms prescribed by the

Commission and be submitted in the manner specified by the Commission for

verification of disbursements.

710:1-3-56. Collection fee attaches to tax warrant

A sheriff's collection fee will attach to the tax warrants and accrue for

payment on a case-by-case basis. If the taxpayer remits the face amount of the

warrant directly to the Commission, the Commission will determine whether the

collection fee has attached and either release the warrant, or request the sheriff

to pursue additional collection efforts to collect the fee. Any discrepancy shall

be resolved by the Commission, and will be final and binding on the sheriff and

the taxpayer. If a sheriff is aggrieved, the sheriff may ask the Commission to

adjust its determination.

710:1-3-57. Collection fee subject to audit

All sheriff's collection fees are subject to audit.

710:1-3-58. Time limit for collection and return of warrant

Sheriffs shall collect and return warrants assigned to them within 60 days

after filing of the warrant.

710:1-3-59. Taxpayer bankruptcy

If a sheriff, during execution of a warrant, learns that the taxpayer has filed

bankruptcy and has not yet been discharged, the sheriff shall write the

bankruptcy case number on the warrant and return it to the Commission.

710:1-3-60. Verification of discrepancies

In some cases, the amount to be collected on a warrant will be less than the

amount shown on the face of the warrant, due to partial payment or an

intercepted refund claim. In these cases, the sheriff shall verify the correct

amount due with the Warrant Office.

710:1-3-61. Validity of tax warrant

Any questions about the validity of a tax warrant, (i.e. wrong name, wrong

business, incorrect address, etc.) should be referred to the Income Tax Accounts

Division.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-3-62. Instructional material available to sheriffs

Each sheriff's office will be provided with a detailed instruction packet and

710:1 OKLAHOMA TAX COMMISSION

forms approved and distributed by the Commission.

PART 11. PUBLIC RECORDS

710:1-3-70. Records in general

(a) Confidentiality of records. Generally, the law provides that the records and

files of the Oklahoma Tax Commission are confidential except as specifically

provided otherwise by statute. [See: 68 O.S. § 205]

(b) Classes of exceptions to the general rule of non-disclosure. Certain

documents are available to the public by specific exception to the general law

set out in (a) of this Section. In addition, some documents are considered public

in nature, pursuant to the Open Records Act. [See: 68 O.S. §§ 205, 205.2, 205.5

and 205.6; 51 O.S. § 24A.4]

mandate and by exceptions to the general rule of confidentiality set out in 68

O.S. § 205, there are a number of sources of information available to the public

and maintained by the Commission.

(1) List of income tax filers. A list of persons who filed Oklahoma income tax

returns is prepared annually and made available for inspection at the

Taxpayer Resource Center, 300 N. Broadway Ave, Oklahoma City, OK 73102,

during normal business hours.

(2) Register of tax warrants filed. A register of current outstanding tax

warrants issued is updated monthly and made available for inspection at the

Taxpayer Resource Center, 300 N. Broadway Ave, Oklahoma City, OK 73102,

during normal business hours.

(3) Oklahoma aircraft registry. A list of aircraft registered with the state is

maintained and available for public inspection at the Taxpayer Resource

Center, 300 N. Broadway Ave, Oklahoma City, OK 73102, during normal

business hours.

(4) Decedents' list. A list of decedents within the state, county of probate,

and probate number is maintained and available for public inspection at the

Audit Services Division, 300 N. Broadway Ave, Oklahoma City, 73102 OK

during normal business hours.

(5) Permits, licenses, exemptions. Information regarding the issuance or

revocation of licenses and permits and documents evidencing exemption are

available for most applicable tax types. The elements or items of information

available regarding permits, licenses and exemptions may vary by tax type. In

addition, the format in which a particular record is available may be limited

to that normally used by the agency. Items of permit-related information

may include permit number, permittee name, name of business, and

business address. Inquiries should be made to the Business Tax Services

Division.

(d) Limited disclosure in some instances. Some records and information from

records maintained by the Commission may be accessible only by certain

persons, or for certain limited uses. In these instances, the release of information

must be one permissible by statute. The Commission may require that the

710:1 OKLAHOMA TAX COMMISSION

request be written and may require supporting documentation or identification,

if the release of information sought is one statutorily limited in scope.

(e) Requesting records; fees. Where a person desires the Commission to make

photocopies of public records, the request should be made in writing, specifying

the record requested. The Commission may collect a fee for the copying of

records, as well as other fees required by statute, and may structure the manner

of response to requests so as to protect the normal business of the agency from

undue disruption or delay. [For specific fee information, see Appendix A of this

Chapter, Schedule of Fees.]

[Source: Amended at 10 Ok Reg 3819, eff 7-12-93; Amended at 12 Ok Reg 2923, eff 7-14-95;

Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-3-71. Rules of the Oklahoma Tax Commission

(a) Rules described. "Rules" of the Oklahoma Tax Commission are formal

statements of policy which set out procedures to be followed in the

administration of various tax levies and fees. Rules describe broad

interpretations of the tax laws, often prescribe forms, and may set out informal

and formal procedures for filing, remitting, registering and objecting to the

various taxing provisions. Rules may also prescribe procedures for the granting,

denial, suspension, renewal, or revocation of various permits and licenses

administered by the Commission. Rules are subject to the provisions of Article I

of the Oklahoma Administrative Procedures Act (APA), in Title 75 of the

Oklahoma Statutes and must be promulgated under the terms of the APA

before they are considered effective. Rules which have been promulgated have

the full force and effect of law and continue in effect until amended or revoked

under APA provisions.

(b) Availability. Current rules, both permanent and emergency, of the

Oklahoma Tax Commission are available on the Oklahoma Tax Commission

website at www.tax.ok.gov or from the Taxpayer Resource Center, 300 N.

Broadway Ave, Oklahoma City, OK 73102, during normal business hours.

[Source: Amended at 22 Ok Reg 1515, eff 6-11-05]

710:1-3-72. Decisions of the Oklahoma Tax Commission

(a) Decision defined. A "decision" of the Oklahoma Tax Commission means a

final determination in an adversarial hearing on an individual tax protest or

claim, including a Commission order in writing which is made, entered, and

mailed to a taxpayer pursuant to the provisions of the Uniform Tax Procedure

Code (68 O.S. § 201, et seq.). Decisions initially rendered from individual tax

hearings are considered confidential records. However, decisions from individual

tax hearings are available to the public under the grant of authority set out in 68

O.S. § 221 and the mandate of Section 302(A)(4) of Title 75 of the Oklahoma

Statutes (Administrative Procedures Act).

(b) Confidentiality. To protect the identity of individuals, the decisions of the

Oklahoma Tax Commission available for examination by the public utilize

710:1 OKLAHOMA TAX COMMISSION

fictitious names or have had names and identifying features removed, leaving

intact the factual statement, the statement of applicable law, the findings of the

Commission, and the disposition of the protest or claim.

categorized into two groups: Precedential and Non-precedential. A Precedential

decision is one in which the findings are applicable to a broad spectrum of

taxpayers and in which the interpretation of law embodied in the holding may

appropriately be relied upon prospectively by the Commission and by the

public. A Non-precedential decision is generally one in which the rule of law

expressed is unique to the fact situation of the particular case.

(d) Availability. Decisions are available from the Administrative Proceedings

Section, 3700 North Classen Boulevard, Suite 260, Oklahoma City, Oklahoma,

during normal business hours and may be accessed through the Tax

Commission website at Error! Hyperlink reference not valid.www.tax.ok.gov.

[Source: Amended at 10 Ok Reg 3819, eff 7-12-93; Amended at 16 Ok Reg 2628, eff 6-25-99;

Amended at 22 Ok Reg 1515, eff 6-11-05; Amended at 24 Ok Reg 1688, eff 6-11-07]

710:1-3-73. Opinions and letter rulings

(a) Opinions not issued by the Commission. An "opinion" is a formal document,

generally prepared by legal counsel, expressing conclusions that interpret or

apply the law to a set of assumed facts. As so defined, the Oklahoma Tax

Commission does not issue opinions. However, legal counsel may prepare such

a document to advise the Commission or a taxing Division within the

Commission.

(b) "Opinion" defined. Thus, an "opinion," with respect to the Oklahoma Tax

Commission, means a written communication embodying formal legal advice,

upon which the Commission may base, in whole or in part, administrative

decisions, decisions in individual tax proceedings, or prospective policy decisions.

Opinions, being advisory to the Commission, do not constitute authority by any

party for challenging any matter pending before the Commission.

Commission, based upon such a legal opinion, impacts broad segments of

taxpayers and is to be given future effect by the Commission, such policy may be

promulgated as a rule of the Commission.

(d) Availability of opinions. Such opinions as may be made available to the

public, pursuant to the provisions of Section 302(A)(4) of Title 75, as further

defined and limited by the terms of Section 24A.1, et seq. of Title 51, will be

limited to those which are, or will be embodied in policy of the Commission.

(e) "Letter ruling" described. The Tax Policy and Research Division and the

Office of the General Counsel may draft and issue letter rulings, which are

informal written statements of policy or treatment of specific fact situations

under Oklahoma tax law. Such a letter ruling may generally be relied upon only

by the taxpayer to whom it is issued, provided that all facts have been accurately

and completely stated, and that there has been no change in applicable law.

(f) Requests for letter rulings. Requests by individuals or groups of taxpayers for

710:1 OKLAHOMA TAX COMMISSION

letter rulings will be honored by the Commission, at its discretion, and in

consideration of the time and resources available to respond to such requests.

Requests for letter rulings should be made to the Tax Policy and Research

Division, Oklahoma Tax Commission, Oklahoma City, OK 73194.

(g) Letter ruling may initiate rulemaking. To the degree that a letter ruling

impacts broad segments of taxpayers and is to be given future effect by the

Commission, such letter ruling may become the basis for a rule of the

Commission.

(h) Availability of letter rulings. Letter rulings may be viewed at the Taxpayer

Resource Center, 300 N. Broadway Ave, Oklahoma City, OK 73102, during

normal business hours.

[Source: Amended at 10 Ok Reg 3819, eff 7-12-93; Amended at 16 Ok Reg 2628, eff 6-25-99;

Amended at 26 Ok Reg 2320, eff 6-25-09]

710:1-3-74. Public records available under other provisions of law [REVOKED]

[Source: Revoked at 10 Ok Reg 3819, eff 7-12-93]

710:1-3-75. Fees for copying, retrieval, reproduction, and certification of public

documents [REVOKED]

[Source: Revoked at 10 Ok Reg 3819, eff 7-12-93]

PART 13. OTHER POLICY PROVISIONS

710:1-3-80. Procedures for partial release of tax warrant or lien

(a) Partial Release of a Tax Warrant or Lien may be issued under the following

circumstances:

(1) Where there is a short sale and the lien of an outstanding Tax Warrant is

unenforceable or uncollectible due to the existence of a prior lien(s) held on

the parcel of realty, and the amount of the outstanding prior lien(s) exceeds

the amount such property would bring at a sale of the property for fair

market value;

(2) Where the lien of an outstanding Tax Warrant is unenforceable or

uncollectible due to the existence of a prior outstanding mortgage lien(s)

held by the requesting party on the parcel of realty, and the amount of the

outstanding mortgage lien(s) exceeds the amount such property would bring

at a foreclosure sale;

(3) Where a mortgage lien(s) has been foreclosed in an action in a District

Court but where there has been a failure to name the State of Oklahoma ex

rel, Oklahoma Tax Commission as a party defendant in the foreclosure action

and there exists no likelihood of collection or enforceability of a Tax Warrant

against a particular parcel of realty;

(4) Where the holder of a mortgage lien(s) has taken a deed in lieu of

foreclosure and there exists no likelihood of collection or enforceability of a

710:1 OKLAHOMA TAX COMMISSION

Tax Warrant against a particular parcel of realty;

(5) Where the applicant is not the taxpayer named in the Tax Warrant and

acquired a parcel of realty encumbered by an Oklahoma Tax Commission

tax lien, whether it be at a County Tax Resale or any other situation where

title was passed from the taxpayer named in the Tax Warrant to the

applicant without properly extinguishing the Tax Warrant;

(6) Where there exists no likelihood of collection or enforceability of a Tax

Warrant against a particular parcel of realty because the applicant does not

have enough equity in the property to satisfy the Tax Warrant in full; or

(7) Where the denial of the Partial Release would result in an undue

expense or hardship on the requesting party.

(b) For purposes of this Section, under the situations described in (a) of this

Section, "adequate consideration" for a Partial Release is defined as follows:

(1) In a situation described in (a)(1), (a)(2) or (a)(3) of this Section, payment of ten

percent (10%) of the Tax Warrant inclusive of interest and penalty, provided

such an amount is not less than Five Hundred Dollars ($500.00).

(2) In a situation described in (a)(4) of this Section, payment of the principal

tax liability on the Tax Warrant, provided such an amount is not less than Five

Hundred Dollars ($500.00).

(3) In a situation described in (a)(5) of this Section, payment of all of the net

proceeds from the sale.

(4) Pursuant to 68 O.S. Section 214, a Tax Warrant may be released without

the payment of any consideration only when the Tax Commission determines

that the warrant, certificate or judgment is clouding the title of such property

by reason of error in the description of properties or similarity of names.

(5) In any case where the Commission shall determine that the amount

prescribed by (1) through (4) of this subsection shall be excessive or

inadequate, then adequate consideration shall be such amount as the

Commission shall prescribe.

[Source: Amended at 10 Ok Reg 3819, eff 7-12-93; Amended at 36 Ok Reg 1197, eff 8-11-19]

710:1-3-81. Irrevocable letter of credit in lieu of bond [REVOKED]

[Source: Revoked at 13 Ok Reg 3091, eff 7-11-96]

710:1-3-82. Calculation of amount of nonresident contractor bond to be

posted

(a) Along with the notice of contract and a bond in the penal sum of three

times the tax liability incurred or to be incurred by a nonresident contractor with

a contract in excess of One Hundred Thousand Dollars ($100,000.00), an

estimation for the tax liabilities incurred or to be incurred is to be filed on a form

or in a format as required by the Oklahoma Tax Commission, setting out the tax

base and the estimated tax liability, to include, but not be limited to the

following taxes, as applicable:

(1) Ad valorem taxes

710:1 OKLAHOMA TAX COMMISSION

(2) Aircraft excise taxes and registration fees

(3) Employment security tax

(4) Employee withholding tax

(5) Franchise tax

(6) Income tax

(7) Motor fuel tax

(8) Motor vehicle excise taxes and registration fees

(9) Sales and use tax

(10) Payments for worker's compensation coverage

(b) In the absence of the filing of the estimation of tax liability required above,

it will be presumed that the bond required to be filed will be ten percent (10%)

of the amount of the contract less the amount of any bonds posted by any

subcontractors who are also nonresident contractors.

[Source: Added at 12 Ok Reg 2923, eff 7-14-95; Amended at 22 Ok Reg 1516, eff 6-11-05]

710:1-3-83. Increases in amount of nonresident contractor bond to be posted

If a nonresident contractor who has posted a bond in accordance with Rule

710:01-03-82, enters into other contracts to perform services or duties in this

state, or if in the judgment of the Oklahoma Tax Commission the amount of tax

liability incurred or to be incurred has increased from the amount used to

compute the amount of the original bond, the bond shall be increased so that

the total bond shall be equal to three times the increased tax liability. In the

case of the nonresident contractor entering into one or more contracts

subsequent to the posting of the original bond, but prior to the sending of a

Notice of Completion of the original contract, the bond required shall be in an

amount equal to three times the sum of the estimated tax liabilities for all

contracts on which a Notice of Completion has not been filed.

[Source: Added at 12 Ok Reg 2923, eff 7-14-95]

SUBCHAPTER 5. PRACTICE AND PROCEDURE

PART 1. GENERAL PROVISIONS

710:1-5-1. Purpose

The provisions of Subchapter 5 have been promulgated for the purpose of

compliance with the Oklahoma Administrative Procedures Act, 75 O.S. §§302,

305, and 307. The various procedural processes, both formal and informal, by

which a party aggrieved by any action of the Commission in the performance of

its functions may seek a remedy are described in Subchapter 5.

(1) The provisions of Part 3 are intended to describe the various procedures,

both formal and informal, by which a taxpayer may seek redress of a

grievance or seek to have a particular suggestion or complaint considered by

the Commission, pursuant to the various remedial avenues provided by

statute.

(2) The provisions of Part 5 of this Subchapter prescribe the formal Rules of

710:1 OKLAHOMA TAX COMMISSION

Practice and Procedure before the Office of the Administrative Law Judges,

particularly with respect to protests of tax assessments and protests of

denials of claims for refunds of taxes paid.

(3) The provisions of Part 7 govern the procedures for the consideration and

disposition of a request for an abatement or adjustment of an alleged

erroneous tax assessment.

(4) Finally, Part 9 of this Subchapter addresses procedures which govern the

administrative proceedings dealing with the granting, suspension, and

revocation of various permits and licenses which fall within the administrative

purview of the Commission.

[Source: Amended at 10 Ok Reg 3819, eff 7-12-93]

PART 3. DESCRIPTION OF ADMINISTRATIVE REVIEW AND HEARINGS

710:1-5-10. Tax protests and claims for refund

(a) A protest may be described as a formal, written challenge to a proposed

tax assessment or to the denial of a claim for refund of taxes paid. The statutory

requirements for perfecting a protest or claim for refund are governed, generally,

by the provisions of the Uniform Tax Procedure Code (68 O.S. §§ 201 et seq.),

except in the areas of Income Tax (Article 23 of Title 68 of the Oklahoma

Statutes) and Estate Tax (Article 8 of Title 68 of the Oklahoma Statutes) which

have additional, and in some instances, superseding, statutory requirements.

(b) There are several routes available, both formal and informal, to a taxpayer in

objecting to an assessment. Prior to the filing of a protest, the issues may be

resolved by further discussion with the assessing tax division. Challenged

assessments or audits may be amended or adjusted by the tax Division involved,

upon reasoned grounds and adequate documentation. Should issues remain

unresolved after consulting with the assessing division, the taxpayer may file

written protest with the taxing division. A protest must be "timely filed." That is,

it must be filed on, or before, the statutory time provided for filing protests, to

insure that the protestant-taxpayer preserves his legal rights to a full hearing of

the matter and a route for appeal if the disposition of the protest is not resolved

in his favor. In the absence of a formal written extension of time within which to

file a protest, proposed assessments which are not protested within the time

prescribed by statute are considered final. Any finally assessed tax in such a

case which is paid to or collected by the Tax Commission is not subject to a

claim for refund or hearing thereon, to the extent provided in 68 O.S. § 227(f).

Thus, a taxpayer who receives a notice of proposed assessment of tax from the

Tax Commission should not assume that it can be challenged later by way of a

claim for refund, if a protest of the proposed assessment is not timely filed and

the proposed assessment then becomes final. However, a taxpayer who fails to

file a timely protest may, within one (1) year of the date the assessment becomes

final, request the Tax Commission to adjust or abate the assessment pursuant to

68 O.S. § 221(e) and the provisions of Part 7 of this Subchapter.

710:1 OKLAHOMA TAX COMMISSION

within the framework of the Oklahoma Tax Commission administrative

proceedings process.

(1) Initially, an audit is conducted by one of the various taxing Divisions of

the Oklahoma Tax Commission pursuant to 68 O.S. § 221(a). Thereafter, a

proposed assessment is issued to the taxpayer. If, in fact, the taxpayer

disagrees with the proposed assessment, a protest may be filed, generally

within sixty (60) days of the date of the assessment, pursuant to the

provisions of 68 O.S. § 221(c).

(2) Except for the initial filing of a protest, which may be made with the

taxing division, with the Office of the General Counsel, or with the office of the

Administrative Law Judges, the office of the Administrative Law Judges serves

as the "Court Clerk" for the administrative hearing process. The

Administrative Law Judges are appointed by the Commissioners of the

Oklahoma Tax Commission and act independently of the taxing Divisions

and the Office of the General Counsel.

(3) Once a protest is received by the taxing Division, the Division will

generally review the proposed assessment to determine whether further

adjustments are appropriate. Additional discussion between the taxpayer

and the Division may be requested in this regard. If issues still remain

unresolved at the conclusion of this process, the protest is forwarded to the

Administrative Law Judges' Office, where the protest is docketed and a Pre-

Hearing Conference is scheduled between the taxpayer, the General

Counsel's Office attorney who represents the taxing Division and an

Administrative Law Judge.

(4) At this time, a case may be resolved through discussion and negotiation

with the staff attorney and the protest or claim is formally withdrawn from

the docket, at the request of the parties. This informal resolution may be

described as either a withdrawn assessment or a withdrawn protest,

depending upon the manner in which the issues were resolved.

(5) Generally, the manner in which a case is to be submitted is decided by

the parties at the Pre-Hearing Conference. Other matters decided at this

conference are the legal issues of the case and the manner of evidence or

witnesses (or both) to be presented at any hearing. Taxpayers are urged to

respond to letters; appear or make alternate arrangements at scheduled pre-

hearing conferences and hearings; file required briefs or position letters in a

timely fashion; and in all respects pursue their legal rights diligently.

(6) Following the Pre-Hearing Conference, and assuming the case is not

resolved, it is set for hearing. The Administrative Law Judge will preside at the

hearing, wherein testimony and exhibits are received and a record is made.

After consideration of the merits, the Administrative Law Judge will issue

Findings, Conclusions and Recommendations.

(7) Following the issuance of the Findings by the Administrative Law Judge,

the Commissioners may either adopt the Finding, or modify it, in part, or in

whole. If the taxpayer has requested an en banc hearing, the Commission

may grant it at this time. Once the Order of the Commission is issued, the

Taxpayer has thirty (30) days within which to file an appeal with the

710:1 OKLAHOMA TAX COMMISSION

Oklahoma Supreme Court.

(8) Detailed procedural rules governing a tax protest may be found in 710:1-

5-21 through 710:1-5-49, which set out rules of Practice and Procedure before

the Office of the Administrative Law Judges.

[Source: Amended at 9 Ok Reg 3015, eff 7-13-92; Amended at 10 Ok Reg 3819, eff 7-12-93;

Amended at 12 Ok Reg 2923, eff 7-14-95; Amended at 16 Ok Reg 2628, eff 6-25-99; Amended at 20

Ok Reg 2580, eff 7-11-03; Amended at 26 Ok Reg 2320, eff 6-25-09]

710:1-5-11. Petitions for abatement

(a) A petition or request for abatement or adjustment of a tax assessment is a

procedure by which a taxpayer may request relief from an assessment which has

become final, but which the taxpayer may show, by a preponderance of the

evidence, that the assessment contested was clearly erroneous. The

determination of such a petition or request is within the sole discretion of the

Commission pursuant to the provisions of 68 O.S. § 221(e) and is not subject to

appeal.

(b) The procedures for the filing, consideration, and disposition of petitions for

abatement or adjustment of a tax assessment are set out in 710:1-5-70 through

710:1-5-78.

must be clearly distinguished from the procedures required for filing a timely

protest of a proposed tax assessment or a protest of a denial of a claim for refund

of taxes. Tax protest procedure is governed by the provisions of 710:1-5-21

through 710:1-5-49, which set out general rules of Practice and Procedure before

the Office of the Administrative Law Judges.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-12. Petitions for waiver of interest or penalty (or both)

Waiver of interest or penalty associated with a tax assessment or failure to file

a return or report is within the discretionary authority of the Commission

pursuant to the provisions of 68 O.S. § 220. Requests for waiver of penalty or

interest should be in writing, and addressed to the division which originated the

tax assessment or liability notification.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-13. Settlement of claims or protests

Settlement of disputed, unliquidated tax claims or assessments is within the

discretionary authority of the Oklahoma Tax Commission pursuant to the

provisions of 68 O.S. § 219. Request for settlement or offer of settlement proposal

should be made to the taxing division which initiated the disputed assessment.

Settlements of final liabilities pursuant to 68 O.S. § 219.1 are governed by the

provisions of Part 8 of this Subchapter.

[Source: Amended at 20 Ok Reg 2580, eff 7-11-03]

710:1 OKLAHOMA TAX COMMISSION

710:1-5-14. Criminal tax prosecution and referral

The Tax Commission has the authority to pursue criminal prosecution in

appropriate cases pursuant to the provisions of 68 O.S. § 105. The General

Counsel or the district attorney is required to initiate criminal actions for

violations of the tax laws of this state. The attorneys for the Tax Commission

may prosecute such criminal actions or may, upon request of a district

attorney, appear and assist in the prosecution of such actions initiated by the

district attorney. 68 O.S. § 105(B). As used herein, the term "tax laws of this

state" means any law of the State of Oklahoma which levies, imposes, provides

for administration of, or in any way relates to a tax, fee, or revenue raising

property which is collected by or required to be deposited with the

Commission. 68 O.S. § 105(C).

[Source: Revoked at 33 Ok Reg 1060, eff 8-25-16; Added at 36 Ok Reg 1197, eff 8-11-19]

710:1-5-15. Requests for rulemaking action

(a) Any interested person may petition the Commission, requesting the

adoption, amendment, or revocation of an existing rule of the Oklahoma Tax

Commission. Such a request need not take any particular form, but must be

written and include the following information:

(1) The full text, or identifiable portion thereof, of a proposed rule or rules;

(2) The identification and the full text, or identifiable portion thereof, of an

existing rule or rules, as proposed to be amended, clearly indicating proposed

changes;

(3) The identification of the rule or rules for which repeal is sought;

(4) A statement in support of the proposal made. This statement shall make

reference to the statutory basis for the proposal, including, when appropriate,

judicial and administrative interpretations of the statute or statutes in

question. The supporting statement should include specific objections to

existing rules, practices, or interpretations, and set forth the policy

considerations which support adoption of the proposal; and,

(5) A statement describing in detail the interest of the petitioner in making

the proposal. This description shall include a statement as to whether the

proposal is intended to affect the tax consequences of any transaction or

transactions entered into or contemplated by the petitioner, its vendors,

customers, clients, or any person upon whose request or upon whose behalf

the proposal is made, the taxability of which are known by the petitioner to

be the subject of an inquiry, audit, refund, or assessment proceeding by the

Commission and shall contain an explanation of the circumstances

surrounding the inquiry, audit, refund, or assessment proceeding, if any.

(b) The Commission shall consider each request for rulemaking action which is

filed in conformity with this Section and, at its discretion, direct that rulemaking

proceedings be initiated in response thereto or deny the request. The

Commission may also, at its discretion and with a view to agency resources,

direct the rulemaking action be deferred until the next regularly scheduled

710:1 OKLAHOMA TAX COMMISSION

rulemaking proceedings are commenced. If the rulemaking request is denied,

the Commission shall timely so notify the requesting party, in writing, stating the

reason(s) for denial. The determination of rulemaking requests shall be solely

within the province of the Commission, and no individual proceeding shall be

afforded any party in conjunction therewith.

Administrative Procedures Act, "APA") any petition for which rulemaking action

has not commenced within 30 calendar days is deemed to be denied.

(d) Requests may be made to the Tax Policy and Research Division, at Oklahoma

Tax Commission, Oklahoma City, Oklahoma, 73194.

[Source: Amended at 10 Ok Reg 3819, eff 7-12-93; Amended at 12 Ok Reg 2923, eff 7-14-95;

Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-16. Rulemaking procedure and hearings

(a) "Hearing" for rulemaking purposes defined. Rulemaking hearings of the

Oklahoma Tax Commission are a forum in which interested parties may express

views, make suggestions, and generally have input into the process by which the

Commission formulates policy set out in proposed rules. The "hearing" in a

rulemaking action consists of:

(1) a period for public comment, during which written submissions are

accepted (will be "heard") by the Commission for the rulemaking actions

previously announced; and,

(2) a meeting at which interested persons may attend and express opinions,

give views, make suggestions, or argue orally.

(b) Who may appear. Any persons interested in or affected by proposed

rulemaking actions may appear at a rulemaking hearing. An appearance may

be made individually, or by a representative.

(1) The Commission may commence action to promulgate, amend, or revoke

a rule at any time on its own initiative.

(2) The Commission may commence action to promulgate, amend, or revoke

a rule pursuant to a Request or Petition for Rulemaking action described in

710:1-5-15.

(3) The Commission may commence action to promulgate, amend, or revoke

a rule pursuant to applicable judicial or statutory mandate.

(d) Applicable procedures. Rulemaking procedure, as it applies to the

Commission, is set out in general by the terms of the Oklahoma Administrative

Procedures Act ("APA"), 75 O.S. §§ 250.1, et seq. Rulemaking hearings required by

the APA will substantially conform to the provisions thereof. The following

general provisions will apply to rulemaking hearings held by the Oklahoma Tax

Commission:

(1) Unless expressly stated otherwise in a Notice of Rulemaking Intent,

rulemaking hearings will be held at the Oklahoma Tax Commission, 123

Robert S. Kerr Ave, Oklahoma City, Oklahoma 73102.

(2) Unless expressly stated otherwise in a Notice of Rulemaking Intent,

710:1 OKLAHOMA TAX COMMISSION

persons wishing to present views orally should notify the Commission in

advance of the hearing. To assure efficient use of the forum, the Commission,

in its discretion, may limit the amount of time available to each speaker.

(3) All written submissions and requests to be placed on the agenda to make

oral submission shall be directed to the Oklahoma Tax Commission, Tax

Policy and Research Division, Oklahoma City, OK 73194.

(4) All persons in attendance at a rulemaking hearing, whether offering input

or not, will be requested to identify themselves for the rulemaking record.

(5) All persons in attendance at a rulemaking hearing who desire to make

oral comment will be requested to provide a name and mailing address for

the rulemaking record.

(6) All persons in attendance at a rulemaking hearing will limit oral

comments to the merits of the proposed rules for which the hearing is

commenced, as announced by the applicable Notice of Rulemaking Intent.

(7) A rulemaking hearing being non-adversarial in nature, all persons in

attendance at such hearing will offer input in such a fashion as to comport

with the purpose of gathering effective and meaningful information for the

guidance of the Commission in formulating policy.

(8) Summaries or audio recordings (or both) will be made of rulemaking

hearings and maintained as a part of the rulemaking record. No transcript of

the rulemaking hearing will be prepared. Should an interested party desire a

transcription or recording of a rulemaking hearing, the taxpayer is directed to

contact a certified court reporter, and make the necessary arrangements for

the presence of the reporter at the hearing, and the cost thereof. The cost of

transcribing will be borne by the party seeking such transcript, who must

furnish the original of the transcript to the Commission.

(9) All records required to be kept pertaining to rulemaking will be

maintained and may be viewed at the Oklahoma Tax Commission, Tax Policy

and Research Division, 300 N. Broadway Ave, Oklahoma City, Oklahoma

73102, during normal business hours (7:30 a.m. to 4:30 p.m.). Interested

persons may obtain copies of both current and proposed rules of the

Commission from this source.

(10) Interested persons may request individual notice of proposed

rulemaking intent by a written request to the Oklahoma Tax Commission, Tax

Policy and Research Division, Rulemaking Liaison, Oklahoma City, Oklahoma,

73194. Requests for individual notice should specify the area of tax or

procedure for which notice is desired and must be renewed annually.

(e) Attendance by Commission representatives; Commission review. To

ensure that public input will receive a meaningful hearing, all rulemaking

hearings will be attended by a representative from the taxing Division of the

Commission initiating the proposed rules. All submissions or summaries thereof,

both written and oral, will be reviewed and considered by the Commission prior

to the adoption or promulgation of any proposed rules.

[Source: Amended at 10 Ok Reg 3819, eff 7-12-93; Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1 OKLAHOMA TAX COMMISSION

710:1-5-17. Petitions for declaratory rulings

(a) General provisions. The Commission or its duly authorized agent may issue

declaratory rulings, as to the applicability of any rule or principle of law

embodied in a precedential decision of the Commission, which is requested by

or on behalf of a person directly affected thereby, subject to the terms and

conditions set forth in this Section.

(b) Form of petition; where to file. A declaratory ruling petition must be made

in writing and sent in duplicate to the Secretary-Member, Oklahoma Tax

Commission, Oklahoma City, Oklahoma 73194.

must specifically state:

(1) That a "declaratory ruling is requested pursuant to 710:1-5-17";

(2) The petitioner's

(A) Name (the name of the person, partnership, corporation or entity to

whom the facts presented in the petition apply);

(B) Address and phone number;

(D) Appropriate OTC license, registration or identification number, where

applicable.

(3) The type of tax, fee, bond, registration, license, or permit at issue;

(4) The issue(s) on which a declaratory ruling is requested, stated clearly and

concisely;

(5) A complete, clear and concise statement of all relevant facts on which the

declaratory ruling is requested;

(6) The petitioner's desired result and the legal basis for that result, including

reference to the applicable statutes, rules, regulations, and case law;

(7) Whether the issue, as it regards the petitioner, is presently under

investigation or audit by the Commission or any of its agents. The term

investigation or audit includes, but is not limited to, an inquiry, audit, refund,

assessment, suspension or revocation proceeding by the Commission; and

(8) Whether the petitioner is presently pursuing any protest, litigation or

negotiation on the issue with the Commission or any of its Divisions, as well as

the name of any other person, partnership, corporation or entity whom the

petitioner or a duly authorized representative knows is involved with the

identical issue pending before or with the Commission.

(d) Petition must bear authorized signature. A petition for a declaratory ruling

must be signed by the petitioner or an authorized agent of the petitioner.

(e) Proposed draft may be offered. The petitioner may provide a draft ruling for

the Commission's consideration.

(f) Commission may require additional information. The Commission or its

authorized representative may request additional information from the

petitioner as deemed necessary to issue a declaratory ruling. Failure to provide

the requested information shall result in denial of the petition to issue the

declaratory ruling.

(g) Effect of a declaratory ruling. A declaratory ruling shall have the following

effect:

710:1 OKLAHOMA TAX COMMISSION

(1) The declaratory ruling shall apply only to the particular fact situation

stated in the declaratory ruling petition;

(2) The declaratory ruling shall apply only to the petitioner;

(3) The declaratory ruling shall bind the Commission, its duly authorized

agents and their successors only prospectively;

(4) The declaratory ruling shall bind the Commission, its duly authorized

agents and their successors as to transactions of the petitioner that occur

within three (3) years after the date of the issuance of the declaratory ruling;

and

(5) The declaratory ruling may be revoked, altered, or amended by the

Commission at any time.

(h) Exceptions to binding effect of declaratory ruling. The declaratory ruling

shall cease to be binding if:

(1) A pertinent change is made in the applicable law by the Legislature;

(2) A pertinent change is made in the Commission's rules;

(3) A pertinent change in the interpretation of the law is made by a court of

law or by an administrative tribunal; or

(4) The actual facts are determined to be materially different from the facts

set out in the petitioner's declaratory ruling petition.

(i) Issuance of a declaratory ruling. The Commission will make a good faith

effort to issue a declaratory ruling within ninety (90) days from date of receipt of

a complete and proper petition unless, in the Commission's discretion, the issue

is of such complexity or novelty that additional time is required.

(j) Contents of a declaratory ruling. A written response from the Commission or

from any employee or agent of the Commission to an inquiry from a taxpayer

may not be construed to be a declaratory ruling unless made in conformity with

this Subsection. A declaratory ruling must contain:

(1) A statement that: "This is a declaratory ruling issued by the Oklahoma Tax

Commission pursuant to 75 O.S. § 307;" and

(2) The signature of the Commission or any person duly authorized to issue

declaratory rulings on its behalf.

(k) Denial of a petition for declaratory ruling. The Commission, in its discretion,

may deny a petition for declaratory ruling for good cause. In this instance, the

Commission, in a letter, will indicate the reason(s) for refusing to issue the

declaratory ruling. Good cause includes, but is not limited to, the following:

(1) The petition does not substantially comply with the information required

by this Section;

(2) The petition involves hypothetical situations or alternative plans;

(3) The petitioner requests the Commission to interpret or apply a statute, or

requests a determination as to whether a statute is constitutional under the

Oklahoma Constitution or the United States Constitution;

(4) The facts or issue(s) presented in the petition are unclear, overbroad,

insufficient or otherwise inappropriate as a basis upon which to issue the

declaratory ruling;

(5) The issue about which the declaratory ruling is requested is primarily one

of fact;

710:1 OKLAHOMA TAX COMMISSION

(6) The issue is presently being considered in a rulemaking proceeding,

protest proceeding or other agency or judicial proceeding that may

definitively resolve the issue;

(7) The issue cannot be reasonably resolved prior to the issuance of rules;

(8) The petitioner is under investigation or audit relating to that issue, or the

issue is the subject of investigation, audit, administrative proceeding or

litigation;

(9) The issue relates to the application of the law to members of a business,

trade, professional or industrial association or other similar group(s); or

(10) The petitioner is not identified or is anonymous.

(l) Withdrawal of a petition for declaratory ruling. The petitioner may

withdraw the petition for a declaratory ruling, in writing, prior to the issuance of

the declaratory ruling.

(m) Response when declaratory ruling inappropriate. When a declaratory

ruling petition requests the Commission to interpret or apply a statute or case

law to a specific set of facts, the Commission will issue a letter ruling, as

described in OAC 710:1-3-73, instead of a declaratory ruling.

[Source: Amended at 10 Ok Reg 3819, eff 7-12-93; Amended at 12 Ok Reg 2923, eff 7-14-95;

Amended at 16 Ok Reg 2628, eff 6-25-99; Amended at 22 Ok Reg 1516, eff 6-11-05; Amended at 32

Ok Reg 1330, eff 8-27-15]

PART 5. ADMINISTRATIVE PROCEEDINGS RELATED TO TAX PROTESTS

710:1-5-20. Purpose and general overview of taxpayer protest procedure

[REVOKED]

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99; Revoked at 38 Ok Reg 1502, eff 9-1-21]

710:1-5-21. Intent, scope and construction of rules

The Rules of Practice and Procedure before the Office of the Administrative

Law Judges set out in this Part shall govern all contested proceedings before the

Oklahoma Tax Commission or its delegated Administrative Law Judge. These

Rules shall be given the most reasonable meaning, taken in their total context,

and will be construed to secure due process in the proper resolution of every

controversy. They shall not be construed to limit legal rights or obligations of any

party.

710:1-5-22. Commencement and numbering of a protest

(a) Protests must be commenced by filing a timely written protest with the

office of any Commissioner, the director of the division out of which the

controversy arose, the office of the Administrative Law Judges, or the office of the

General Counsel. In order for a protest to be considered timely, it must be filed,

pursuant to Oklahoma Statutes, within sixty (60) days after the date of the

mailing of the assessment, unless an extension is granted within the sixty (60)

day period.

710:1 OKLAHOMA TAX COMMISSION

(b) The Administrative Law Judges' Office assigns a case number of a protest of

proposed assessment or protest to denial of claim for refund (both called

"protest" herein), creates a court file, assigns a Judge and sets a day for a pre-

hearing conference between the parties and the Administrative Law Judge.

[Source: Amended at 20 Ok Reg 2580, eff 7-11-03]

710:1-5-23. Protests in writing and timely filed; applications for hearings

All tax protests must be in writing and must be timely filed according to the

applicable statute. If an oral hearing is desired, an application or request

therefor must be made in writing. No protest hearing will be set without a

written application or request therefor.

710:1-5-24. Protests to denials of claims for refunds

A claim for refund has to be denied by the tax division before a taxpayer can

file a protest. Once a claim is denied and the taxpayer files a protest with the Tax

Commission, the Administrative Law Judge shall set a hearing within sixty (60)

days after the filing of the protest. The taxpayer shall be duly notified of time of

the hearing. Protests to denials of claims for refund have priority status and shall

be set for hearing at the earliest practicable date.

710:1-5-25. Content of protests and applications for hearing

Protests and applications for hearing shall be filed and signed by the taxpayer,

or an authorized representative, and shall set out therein:

(1) The name, address and employer's identification number, if applicable;

(2) A statement of the amount of the deficiency as determined by the

Division in the proposed assessment, the nature of the tax and the amount

thereof in controversy;

(3) A clear and concise assignment of each error alleged to have been

committed;

(4) The argument and legal authority upon which each assignment of error is

made; provided, that the applicant shall not be bound or restricted in such

hearing, or on appeal, to the arguments and legal authorities contained and

cited in said applications;

(5) A statement of the relief sought by the taxpayer;

(6) A verification by the taxpayer or his duly authorized agent that the

statements and facts contained therein are true; and

(7) In a refund claim, an assertion as to whether the basis for the claim

request is due to a mistake of law or a mistake of fact with a brief statement

of the mistake.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99; Amended at 32 Ok Reg 1330, eff 8-27-15]

710:1-5-26. Pleadings to be on 8 ½ " x 11" paper

All pleadings filed with the Oklahoma Tax Commission shall be duplicated on

letter size, 8 ½ " x 11" paper.

710:1 OKLAHOMA TAX COMMISSION

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-27. Representation and participation in administrative proceedings

(a) Representation. In an administrative proceeding the taxpayer may represent

himself at any stage of the proceeding or may be represented by:

(1) an attorney;

(2) an accountant;

(3) an enrolled agent; or

(4) a representative who has been approved by the Commission to represent

the taxpayer.

(b) Proper showing may be required. If a taxpayer wants to be represented by

someone other than himself, an attorney, an accountant, or an enrolled agent,

the Administrative Law Judge may require that such person, before being

recognized as a representative of the taxpayer, make a proper showing that he

or she is of good character and in good repute and possessed with necessary

qualifications to enable the representative to render such services to the

taxpayer. Upon such showing by the representative, the Administrative Law

Judge will certify the representative.

required at any time to show written proof, in a form satisfactory to the

Commission, of his or her authority to represent such taxpayer in that matter.

(d) Confidentiality of proceedings; participation of others. Proceedings are

not open to the public unless confidentiality has been waived by the taxpayer or

his representative. Any person who is not a party, not employed by a party, or

not called as a witness, must obtain the permission of the Administrative Law

Judge before observing or participating during any stage of the proceeding.

Under provisions of Title 68 O.S. § 205, the taxpayer has the right to enforce the

confidentiality of the proceedings.

(e) Ex parte communication. Communication with the office of the assigned

Administrative Law Judge regarding scheduling and procedural matters is

permitted. The taxpayer(s) and/or their representative(s), the taxing division

and their attorney(s) shall have no ex parte communication on the substance

of a pending case with the assigned Administrative Law Judge.

[Source: Amended at 11 Ok Reg 3465, eff 6-26-94; Amended at 16 Ok Reg 2628, eff 6-25-99;

Amended at 19 Ok Reg 2027, eff 7-1-08; Amended at 26 Ok Reg 2320, eff 6-25-09; Amended at 30

Ok Reg 1850, eff 7-11-13]

710:1-5-28. Pre-hearing conference

(a) General provisions. A pre-hearing conference notice is sent to the parties,

usually within sixty (60) days of the filing of the protest. The purpose of the pre-

hearing conference is to get the parties together before the Administrative Law

Judge to attempt to resolve the case or parts of it, early in the progression of the

case, to discuss the facts, identify the legal issues, present discovery requests,

make all appropriate stipulations, and to propose a procedural schedule.

710:1 OKLAHOMA TAX COMMISSION

However, the pre-hearing conference should not serve as the parties

introduction to the case. Rather, the parties are to make contact and discuss the

merits of the case prior to the scheduled pre-hearing conference.

(b) Rulings; pre-hearing conference order. During the pre-hearing conference,

the Administrative Law Judge makes all necessary rulings. After the pre-hearing

conference, the Administrative Law Judge issues a pre-hearing conference order

which reduces to writing the agreements reached at the pre-hearing

conference.

conference or to timely respond to the notice of pre-hearing conference, but has

previously submitted a written request for a hearing on the protest, then a

hearing will be set. If a hearing has not been requested, then the Division will be

directed by the Administrative Law Judge to file a response to the protest,

verified by the Division and signed by the attorney representing the Division. If a

party files a reply to the Division's Verified Response, and requests a hearing

therein, then the Administrative Law Judge may set the matter for hearing on

the merits of the protest, and thereafter, enter recommendations to the

Commission in accordance with the findings. If a party files a reply to the

Verified Response and does not request a hearing, then the Administrative Law

Judge will consider the reply in making a recommendation to the Commission.

If a party fails to file a reply to the Verified Response, then the Administrative Law

Judge will issue Findings, Conclusions and Recommendations. Any party

aggrieved by the recommendation may proceed pursuant to 710:1-5-40.

[Source: Amended at 11 Ok Reg 3465, eff 6-26-94; Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-29. Notice of hearing

If a case is not fully resolved at the pre-hearing conference, the case is set for

formal hearing before the Administrative Law Judge. Notice of the time, date

and location of the hearing is sent to the parties. The parties are directed to file

briefs or position letters (or both) in support of their positions.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-30. Continuances or extensions

A party seeking an extension or continuance shall direct the request to the

Administrative Law Judge, with notice to opposing party, and for good cause

shown, a continuance or extension will be granted.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-31. Administrative law judge to hear case

Hearings will be conducted by an Administrative Law Judge, who must be a

licensed attorney at law, who has been appointed by the Oklahoma Tax

Commission. The Administrative Law Judge shall have authority to conduct

hearings, to examine witnesses, to rule upon motions, to rule upon the

710:1 OKLAHOMA TAX COMMISSION

admissibility of evidence, to continue or recess any hearing, to control the record,

and to make recommendations to the Oklahoma Tax Commission. If for any

reason an Administrative Law Judge cannot continue on a case, the

Commissioners shall designate another Administrative Law Judge with the

above qualifications, who will become familiar with the record and perform any

function remaining to be performed without the necessity of repeating any

previous proceedings.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-32. Conduct of hearing

Administrative proceedings are conducted by the Oklahoma Tax Commission

pursuant to the following procedures:

(1) Appearances; motions; preliminary matters; oaths. The burden of proof

is generally on the taxpayer. The hearing will be convened by the

Administrative Law Judge, appearances noted, and any motions or

preliminary matters will be considered. The Administrative Law Judge shall

administer oaths or affirmations to the witnesses.

(2) Argument; witnesses; evidence. Each party shall have the opportunity to

present its case, to make opening statements, to call and examine witnesses,

to offer documentary evidence into the record and to make closing

arguments. Each party shall also have the opportunity to cross-examine

opposing witnesses on matters covered in direct examination and, in the

discretion of the Administrative Law Judge, upon matters relevant to the

issues even though not covered in direct examination. Any objection to

testimony or evidentiary offers should be made, and the basis of the objection

stated on the record.

(3) Discretion of Administrative Law Judge in certain matters. The

Administrative Law Judge may question any party or any witness. The

Administrative Law Judge shall establish the order of proceeding, but

regardless of the order, the taxpayer is entitled to open and conclude in

arguments. The Administrative Law Judge is responsible for closing the

record, and may hold it open for stated purposes. Parties may submit

proposed Findings, Conclusions and Recommendations at any time after

notice of the hearing, but prior to closing of the record. Parties may request

that the record be held open for this or other purposes.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-33. Discovery

Discovery in administrative proceedings before the Commission shall comply

with the following:

(1) Authority of Administrative Law Judge. The Administrative Law Judge

may, upon his or her own motion or on the motion of either party:

(A) Subpoena any person to appear and testify and to produce certain

documents or other tangible items at an oral hearing;

710:1 OKLAHOMA TAX COMMISSION

(B) Require either party to complete interrogatories;

certain documents or other tangible items at the time of the deposition;

and

(D) Order any party to allow entry of a Tax Commission employee upon

property under his control for the purpose of doing any act or making any

inspection which is reasonably calculated to lead to the discovery of

evidence material to the contested case.

(2) Subpoenas; costs; fees; service. When a witness is required to appear or

to produce documentary evidence, a subpoena shall be issued under the seal

of the Secretary of the Tax Commission. The party requesting the subpoena

shall fill it in before issuance. The subpoena may be served by certified mail

with return receipt requested or it may be hand delivered. The party

requesting the subpoena shall bear the cost of serving it. Fees of a non-party

witness who is subpoenaed to appear before the Tax Commission shall be

the same as those allowed to witnesses appearing before the district courts

of this State. Party witnesses are not entitled to witness fees.

(3) Confidentiality. Any and all information obtained through the discovery

proceedings shall be deemed confidential, shall be used only for matters

pending in the case in which they were discovered, and shall be accorded the

same degree of confidentiality as any other document or paper required by

law to be filed with the Oklahoma Tax Commission.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-34. Rules of evidence

(a) Rules governing; admissibility; objections. The rules of evidence as

applied in non-jury, civil cases in the district courts of this State shall be followed

in administrative proceedings related to tax protests except when it is necessary

to ascertain facts not reasonably susceptible of proof under those rules. In that

event, evidence not admissible under the Rules of Evidence may be admitted, if

it is of a type commonly relied on by reasonably prudent persons in the conduct

of their affairs. The Administrative Law Judge shall give effect to the rules of

privilege recognized by law. Objections to evidentiary offers may be made and

shall be noted in the record. Subject to these requirements, part or all of the

evidence may be received in written form if the hearing will be expedited and

the interest of the parties will not be substantially prejudiced.

(b) Certification of issues. A party to the proceedings who objects to a ruling

of the Administrative Law Judge may request and obtain certification of the

issue to the Commission for a decision prior to the issuance of Findings,

Conclusions and Recommendations by the Administrative Law Judge. The

signatures of the taxpayer's representative, the tax division attorney and the

Administrative Law Judge must be upon the certification.

[Source: Amended at 10 Ok Reg 3819, eff 7-12-93]

710:1 OKLAHOMA TAX COMMISSION

710:1-5-35. Oral evidence, witnesses and penalty for false statements

An Administrative Law Judge may require the parties to an administrative

proceeding to identify the persons they expect to call as witnesses. The

testimony of witnesses shall be made under oath or affirmation, and the making

of false statements may subject a person to the penalties of perjury.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-36. Evidence by official notice

(a) The Administrative Law Judge in an administrative proceeding may,

regardless of whether requested by the parties, take official notice of matters

which the judges of district courts of Oklahoma can judicially notice and of facts

within the scope of personal knowledge or within the specialized knowledge of

the Tax Commission. Such official notice must be stated on the record, and the

parties must have an opportunity to contest the material noticed. A party

requesting the official notice must state upon the record sufficient information

to enable the Administrative Law Judge to comply with the request.

(b) If an Administrative Law Judge receives any document or other evidence

from a party in connection with an administrative proceeding which has not

been provided to the other party, the Administrative Law Judge shall give notice

of such receipt to the party not receiving the document or other evidence and

advise such party of its right to receive a copy of the document or other

evidence.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99; Amended at 30 Ok Reg 1850, eff 7-11-13]

710:1-5-37. Transcript of oral hearings; request for certified court reporter

Testimony offered under oath, comments of counsel and the Administrative

Law Judge, offers of documentary evidence and rulings made during the course

of an oral hearing shall be recorded by electronic media which can be

transcribed by the Administrative Law Judge's Office. A copy of the transcript of

the hearing will be furnished to any party to the proceeding upon written

request to the Administrative Law Judge and payment of a reasonable fee

established by the Tax Commission. Upon request to the Administrative Law

Judge by either party, the hearing will be recorded and transcribed by a certified

court reporter. If a certified court reporter is requested, necessary arrangements

for the presence of a reporter at a hearing, the cost thereof, and cost of

transcribing will be borne by the requesting party who must furnish the

Administrative Law Judge's Office with an original and the attorney for the

Commission with a copy, of such transcript.

[Source: Amended at 10 Ok Reg 3819, eff 7-12-93; Amended at 13 Ok Reg 3091, eff 7-11-96;

Amended at 26 Ok Reg 2320, eff 6-25-09]

710:1-5-38. Submission of case on briefs

When a taxpayer in an administrative proceeding does not request an oral

710:1 OKLAHOMA TAX COMMISSION

hearing, or the parties agree that an oral hearing is not needed, the

Administrative Law Judge will base the Findings, Conclusions and

Recommendations on the position letters and briefs submitted by the parties.

The Administrative Law Judge will mail notice of a date certain for each party

to submit a position letter or brief setting out therein the statement of facts,

issues to be determined, contentions and statutory and case law relied upon to

support his contentions. The Administrative Law Judge may schedule a

conference between the parties if it is deemed necessary to clarify the

positions of the parties.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99; Amended at 26 Ok Reg 2320, eff 6-25-09;

Amended at 30 Ok Reg 1850, eff 7-11-13]

710:1-5-38.1 Motion for summary disposition

A party may file a motion for summary disposition on any or all issues on

the ground that there is no substantial controversy as to any material fact. The

procedures for such motion are as follows:

(1) The motion for summary disposition shall be accompanied by a concise

written statement of the material facts as to which the movant contends no

genuine issue exists and a statement of argument and authority

demonstrating that summary disposition of any or all issues should be

granted. The moving party shall verify the facts to which such party

contends no genuine controversy exists with affidavits and evidentiary

material attached to the statement of material facts.

(2) If the protest has been set for hearing, the motion shall be served at

least twenty (20) days before the hearing date unless an applicable

scheduling order issued by the Administrative Law Judge establishes an

earlier deadline. The motion shall be served on all parties and filed with the

Office of the Administrative Law Judge.

(3) Any party opposing summary disposition of issues shall file with the

Administrative Law Judge within fifteen (15) days after service of the motion

a concise written statement of the material facts as to which a genuine

issue exists and the reasons for denying the motion. The adverse party shall

attach to the statement evidentiary material justifying the opposition to the

motion, but may incorporate by reference material attached to the papers

of the moving party. All material facts set forth in the statement of the

movant which are supported by acceptable evidentiary material shall be

deemed admitted for the purpose of summary disposition unless

specifically controverted by the statement of the adverse party which is

supported by acceptable evidentiary material.

(4) The affidavits that are filed by either party shall be made on personal

knowledge, shall show that the affiant is competent to testify as to the

matters stated therein, and shall set forth matters that would be admissible

in evidence at a hearing. A party challenging the admissibility of any

evidentiary material submitted by another party may raise the issue

expressly by written objection or motion to strike such material.

710:1 OKLAHOMA TAX COMMISSION

(5) If the taxpayer has requested a hearing, the Administrative Law Judge

will issue a notice to the parties scheduling the motion for a hearing limited

to oral argument. If the taxpayer has not requested a hearing, the

Administrative Law Judge will rule on the motion based on the submission

of the parties, including the motion, opposition to the motion, and

attachments thereto.

(6) If the Administrative Law Judge finds that there is no substantial

controversy as to the material facts and that one of the parties is entitled to

a decision in its favor as a matter of law, the Judge will grant summary

disposition by issuing Findings of Fact, Conclusions of Law, and

Recommendations. Such Findings of Fact, Conclusions of Law and

Recommendations are subject to review by the Commission pursuant to

OAC 710:1-5-10, 710:1-5-40 and 710:1-5-41. If a motion for summary

disposition is denied, the Administrative Law Judge will issue an order

denying such motion.

(7) If the Administrative Law Judge finds that there is no substantial

controversy as to certain facts or issues, the Judge may grant partial

summary disposition by issuing an order which specifies the facts or issues

which are not in controversy and directing that the action proceed for a

determination of the remaining facts or issues. If a hearing of factual issues

is required, evidentiary rulings in the context of the summary procedure

shall be treated as rulings in limine. Any ruling on partial summary

disposition shall be incorporated into the Findings of Fact, Conclusions of

Law, and Recommendations issued at the conclusion of the proceedings

before the Administrative Law Judge.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13]

710:1-5-39. Findings, conclusions and recommendations

(a) Issuance. When the record in an administrative proceeding is closed and

submitted, the Administrative Law Judge will issue Findings, Conclusions and

Recommendations to the Tax Commission for its consideration. The Findings,

Conclusions and Recommendations will include a statement of facts, the issues

and contentions, conclusions based on the findings of fact and applicable law,

and recommendation to the Tax Commission. The parties to the proceeding will

be mailed copies of the Administrative Law Judge's Findings, Conclusions and

Recommendations.

(b) No appeal. No appeal may be based upon the Findings, Conclusions and

Recommendations issued by the Administrative Law Judge, since only the Tax

Commission may issue the final order from which an appeal may be brought.

[Source: Amended at 11 Ok Reg 3465, eff 6-26-94; Amended at 12 Ok Reg 2923, eff 7-14-95;

Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-40. Options available to parties after action by Administrative Law

Judge

710:1 OKLAHOMA TAX COMMISSION

The following options are available to parties to an administrative proceeding

related to a tax protest after issuance of an unfavorable recommendation:

(1) Motion for rehearing or motion for reconsideration; content; replies;

time limitations. Within fifteen (15) days following mailing of the Findings of

Fact, Conclusions of Law and Recommendations of the Administrative Law

Judge, any party to the proceedings may file a motion for rehearing or a

motion for reconsideration with the Administrative Law Judge. The opposing

party may reply to a motion for rehearing or a motion for reconsideration

within fifteen (15) days after mailing of the motion for rehearing or motion for

reconsideration. A party's request shall be reviewed on the basis of the

content presented therein and not solely on the style of the party's motion.

(2) Rehearing procedure. If a party elects to file a motion for rehearing, that

party will be precluded upon rehearing, should the motion be granted, from

raising as error any issue not set forth in the motion. If a motion for rehearing

is granted, the proposed Findings of Fact, Conclusions of Law and

Recommendations of the Administrative Law Judge are vacated pending

rehearing. If the motion is overruled, the original proposed Findings of Fact,

Conclusions of Law and Recommendations of the Administrative Law Judge

shall be deemed issued on the date the motion is overruled. If a rehearing is

granted, notice will be issued to the parties setting out the date, time and

place of the hearing.

(3) Reconsideration procedure. A motion for reconsideration must specify

each ground upon which the party alleges the findings to be erroneous. If a

motion for reconsideration is granted, the original proposed Findings of Fact,

Conclusions of Law and Recommendations of the Administrative Law Judge

are vacated. If the motion is overruled, the original proposed Findings of Fact,

Conclusions of Law and Recommendations of the Administrative Law Judge

shall be deemed issued on the date the motion is overruled.

(4) Grounds for granting motion for rehearing. A motion for rehearing may

be granted on any of the following, although such list is illustrative and not

exclusive:

(A) Newly-discovered evidence which could not, with reasonable

diligence, have been discovered and produced at the hearing on the

matter.

(B) Need for additional evidence to develop the facts essential to proper

decision.

contemplated prior to the Findings of Fact, Conclusions of Law and

Recommendations of the Administrative Law Judge being issued.

(5) Grounds for granting motion for reconsideration. A motion for

reconsideration may be granted on any of the following, although such list is

illustrative and not exclusive:

(A) Need for further consideration of the issues and the evidence.

(B) A showing that issues not previously considered ought to be examined

in order to properly dispose of the matter.

710:1 OKLAHOMA TAX COMMISSION

(6) Application for en banc hearing before Commission. If a motion for

rehearing or reconsideration is denied, the aggrieved party may, within fifteen

(15) days following mailing of such denial, file an application for oral

argument before the Tax Commission en banc. If a motion for hearing en

banc is granted, the case will be heard by the Commissioners sitting together

as a decision making body.

(7) En banc hearing procedure. Any party may apply for a hearing en banc

before the Commissioners whether or not he/she moved for rehearing or

reconsideration before the Administrative Law Judge. If a motion for

rehearing or reconsideration before the Administrative Law Judge is not filed,

any party requesting a direct appeal to the Commission en banc, must file

said motion for a hearing en banc within fifteen (15) days of the mailing of the

Administrative Law Judge's findings. The application must specify each

ground upon which the party alleges the Findings, Conclusions and

Recommendations to be erroneous. The opposing party may reply to a

motion for hearing en banc within fifteen (15) days after mailing of the motion

for hearing en banc. Should the application be granted, the moving party

will be precluded from raising as error any issue not set forth in the

application for a hearing en banc.

(8) Granting of hearing en banc; filing of briefs; time limitations. If such

application for oral argument is granted, the Commissioners will set a date,

time and place for the hearing and notice will be given to each side by mail

at least twenty (20) days in advance of the hearing. Typewritten briefs must

be submitted to the Commissioners at least fourteen (14) days prior to such

hearing, or as otherwise directed by the Commission. Time limits for oral

arguments will be set by the Commissioners at the time of the hearing.

(9) Exhaustion of administrative remedies. Although taxpayers must

exhaust all administrative remedies before appealing to the Oklahoma

Supreme Court, or if appropriate to a Federal court, it is not necessary to

move for reconsideration or rehearing or to apply for a hearing en banc to

exhaust administrative remedies. All that is necessary for exhaustion is to

pursue a protest until the Commissioners issue a final decision in the form of

an order.

(10) Commission decision commences appeal time. Neither a motion for

rehearing or reconsideration nor an application for a hearing en banc will be

granted after a final decision has been made and an order issued. Therefore, a

motion for rehearing or reconsideration or an application for a hearing en

banc will not serve to stay the time to appeal to the Supreme Court.

[Source: Amended at 10 Ok Reg 3819, eff 7-12-93; Amended at 11 Ok Reg 3465, eff 6-26-94;

Amended at 12 Ok Reg 2923, eff 7-14-95; Amended at 13 Ok Reg 3091, eff 7-11-96; Amended at 16

Ok Reg 2628, eff 6-25-99; Amended at 19 Ok Reg 2027, eff 7-1-08; Amended at 28 Ok Reg 929, eff

6-1-11]

710:1-5-41. Decision and order of the Oklahoma Tax Commission

The Tax Commission will issue a written order in each case whether or not

710:1 OKLAHOMA TAX COMMISSION

application for oral argument is made. The Tax Commission may, in its

discretion, vacate, modify, or affirm, in part or whole, the recommendations of

the Administrative Law Judge.

[Source: Amended at 12 Ok Reg 2923, eff 7-14-95; Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-42. Appeals from orders of the Oklahoma Tax Commission

(a) If a taxpayer is aggrieved by any order, ruling, or finding of the Tax

Commission, the taxpayer may appeal therefrom directly to the Oklahoma

Supreme Court. The appeal must be perfected within thirty (30) days of the

mailing of the order by filing a petition in error with the clerk of the Supreme

Court of the State of Oklahoma and by filing a designation of the record with the

Secretary of the Tax Commission at the same time the petition in error is filed.

(b) In lieu of an appeal to the Supreme Court, any taxpayer aggrieved by a final

order of the Tax Commission assessing a tax or an additional tax or denial of a

claim for refund may opt to file an appeal for a trial de novo in the district court

of Oklahoma County or the county in which the taxpayer resides. An appeal

for trial de novo in district court must be filed in the district court within thirty

(30) days of the mailing of the Tax Commission order. A district court order

resulting from such a trial shall be appealable directly to the Supreme Court of

Oklahoma by either the taxpayer or the Tax Commission. Such appeal shall be

taken in the manner and time provided by law for appeal to the Supreme

Court from the district court in civil actions. The provisions of this subsection

shall be applicable for tax periods beginning after January 1, 2014. Provided, if

the order applies to multiple tax periods which begin before and after January

1, 2014, the appeal provided by this subsection shall be available to the

aggrieved taxpayer.

[Source: Amended at 12 Ok Reg 2923, eff 7-14-95; Amended at 24 Ok Reg 1688, eff 6-11-07;

Amended at 32 Ok Reg 1330, eff 8-27-15]

710:1-5-43. Exceptions to the requirement for exhausting administrative

remedies

The taxpayer must exhaust the administrative remedies prescribed by law

prior to appealing to the Supreme Court from an order of the Tax Commission,

except in cases involving Constitutional issues as outlined in Title 68 O.S. § 226(c).

(See, Cimarron Industries, Inc. v. Oklahoma Tax Commission, 621 P.2d 539

(Okla. 1980).)

[Source: Amended at 12 Ok Reg 2923, eff 7-14-95; Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-44. Computation of time

When filing documents in an administrative proceeding related to a tax

protest, the following provisions apply:

(1) General provisions. In computing any period of time, begin on the day

after the act, event, or default and conclude on the last day of the computed

710:1 OKLAHOMA TAX COMMISSION

period, unless it be a Saturday, Sunday or legal holiday, in which event the

period runs until the end of the next day which is neither a Saturday,

Sunday nor legal holiday.

(2) Filing; evidence of filing. Documents required to be filed are considered

filed on the date of personal service of such documents or upon the date of

the postmark showing date mailed on the envelope containing such

documents and must show a date on or before the last day of filing as

defined hereinabove.

(3) Use of certified or registered mail. If the document is sent by United

States registered mail, the date of registration of the document shall be

treated as the postmarked date. If the document is sent by United States

certified mail and the sender's receipt is postmarked by the postal employee,

the date of the United States postmark on such receipt shall be treated as

the postmark date of the document. Thus, the risk that the document will

not be postmarked on the day that it is deposited in the mail may be

overcome by the use of registered mail or certified mail.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-45. Service of documents

Service of any document in an administrative proceeding may be

accomplished by personal delivery or by mailing such document addressed to

the party or his authorized representative at the last known address, postage

prepaid. The document shall indicate on its face by Certificate of Service or of

Mailing that copies have been served on parties of record.

710:1-5-46. Dismissal of case

(a) Voluntary dismissal. A protestant may dismiss his or her protest, or the tax

division whose action or proposed action has been protested may withdraw its

action or proposed action, without a motion therefor, at any time prior to the

entry of a final order by the Commission.

(b) Dismissal for mootness. "Moot", for purposes of this Subchapter means

that a case presents no actual controversy or that the issues have ceased to exist.

A protest that is or has become moot may be dismissed by the Commission or

by the Administrative Law Judge on their own motion or on the motion of a

party. At least fifteen (15) days' notice of the motion or intent to dismiss shall be

given to all parties, who shall have the opportunity to respond and show cause

why the protest should not be dismissed. A dismissal by the Administrative Law

Judge is appealable to the Commission in the same manner as appeals from

other rulings by the ALJ.

jurisdiction to consider a protest that is not filed within the time provided by

statute. The question of the Commission's jurisdiction to consider a protest may

be raised at any time, by a party, the Administrative Law Judge, or the

Commission itself. Questions as to the authority, propriety, or timeliness of the

tax division's action or proposed action shall not be raised by a motion to

710:1 OKLAHOMA TAX COMMISSION

dismiss, but shall be raised as defenses to such action or proposed action, as a

part of or addition to the protest.

(d) Motion to dismiss. A motion filed by a party to dismiss a protest for lack of

jurisdiction, or a notice by the Administrative Law Judge or the Commission of

intent to dismiss a protest on jurisdictional grounds, shall state the reasons

therefore, shall be filed in the case, and shall be mailed to all parties or their

authorized representatives. The motion or notice of intent to dismiss shall be set

for hearing, which shall not be less than fifteen (15) days after the filing of such

motion or notice of intent, at which time any party opposing such motion or

notice of intent may appear and show cause why the protest should not be

dismissed. Notice of the date, time and place of the hearing shall be mailed to

the parties or their representatives along with the motion or notice of intent to

dismiss.

[Source: Amended at 11 Ok Reg 3465, eff 6-26-94; Amended at 12 Ok Reg 2923, eff 7-14-95;

Amended at 16 Ok Reg 2628, eff 6-25-99; Amended at 22 Ok Reg 1517, eff 6-11-05]

710:1-5-47. Burden of proof

In all administrative proceedings, unless otherwise provided by law, the

burden of proof shall be upon the protestant to show in what respect the action

or proposed action of the Tax Commission is incorrect. If, upon hearing, the

protestant fails to prove a prima facie case, the Administrative Law Judge may

recommend that the Commission deny the protest solely upon the grounds of

failure to prove sufficient facts which would entitle the protestant to the

requested relief.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-48. Effective date of the Part

The provisions of this Part govern all proceedings and cases commenced after

they take effect, and also all further proceedings in cases then pending, except

to the extent that in the opinion of the Commission or the Administrative Law

Judge, their application in a pending case would not be feasible or would work

an injustice.

710:1-5-49. Survival and abatement of protests

No protest pending before the Tax Commission shall abate by the death of

the protestant. Consideration of such a protest shall proceed according to the

following:

(1) Death of protestant where no hearing has been requested. If a

taxpayer dies subsequent to the filing of a protest and no oral hearing has

been requested, the Commission shall proceed without further notice to

examine the merits of the protest and enter an order in accordance with its

findings.

(2) Death of protestant prior to hearing. If a taxpayer has requested a

hearing as provided by law but dies before such hearing, and the

710:1 OKLAHOMA TAX COMMISSION

Commission is apprised of such death, notice of the proceedings and any

upcoming hearing shall be mailed to taxpayer's address as last given in

connection with the protest proceeding, and addressed to taxpayer,

taxpayer's estate, or taxpayer's personal representative. Taxpayer's personal

representative or persons who demonstrate a legal interest in taxpayer's

estate shall be given a opportunity to appear and to be heard in connection

with the protest proceedings. If, after such notice, there is no appearance or

substitution by such persons in the protest proceedings, the protest shall not

be dismissed or decided as by default, but the merits of the protest shall be

examined and an order confirming, modifying, or vacating the prior action or

proposed action shall be entered, as in a case where no hearing has been

requested.

(3) Death of protestant after hearing or submission of case. If a taxpayer

dies after a requested hearing or after the matter has been submitted for

decision, findings, conclusions and a recommendation as to the final

disposition of taxpayer's protest may be entered by the Administrative Law

Judge, and a final order may be entered by the Commission, although the

personal representative of the taxpayer or other person has not been

substituted as a party to the proceeding. Notice of the findings, conclusions

and recommendation of the Administrative Law Judge and of the

Commission's final order shall be given to the taxpayer's personal

representative or other such person who has demonstrated a legal interest in

the estate of the deceased taxpayer and who has requested such notice.

(4) Substitution of personal representative. Taxpayer's personal

representative may be substituted for the taxpayer on motion of a party with

notice to the representative, and shall be substituted for the taxpayer upon

application by the representative. [See: OTC Order No. 96-02-13-017]

[Source: Added at 22 Ok Reg 1518, eff 6-11-05]

PART 7. ABATEMENT OF ERRONEOUS TAX ASSESSMENT

710:1-5-70. Purpose

The provisions of this Part are provided to taxpayers who wish to request

adjustment or abatement of an assessment of the Oklahoma Tax Commission

which has already become final. [See: 68 O.S. § 221(e)]

[Source: Amended at 20 Ok Reg 2580, eff 7-11-03]

710:1-5-71, When an assessment becomes final

(a) In the event the person to whom a proposed assessment is issued

acquiesces in the changes reflected on the proposed assessment, or fails to file a

written protest within the sixty (60) days after the mailing of the proposed

assessment (or any extensions allowable by Statute that have been granted by

the Division), the proposed assessment becomes final.

(b) In cases in which an extension has been granted for filing a protest, the

710:1 OKLAHOMA TAX COMMISSION

proposed assessment becomes final at the expiration of the period as extended

by the Division if no protest is filed.

[Source: Amended at 20 Ok Reg 2580, eff 7-11-03]

710:1-5-72. Request for adjustment or abatement

(a) Untimely "protest" construed as request for abatement. Every written

statement "protesting" a proposed assessment which is received after the

expiration of sixty (60) days from the mailing of the proposed assessment, or

after the expiration of any extension granted by the Division, shall be treated as a

request for an adjustment or abatement of the assessment.

(b) Manner in which timeliness determined. Timeliness of the filing of a

request for adjustment or abatement of the assessment shall be determined by

the date of the first filing with the Director of the Division out of which the

controversy arose, the office of the Administrative Law Judges, the office of the

General Counsel, or the Commission.

assessment may be timely protested. A request for adjustment or abatement

of an assessment does not extend the time in which a written protest can be

timely filed. No request for adjustment or abatement of an assessment filed

after a proposed assessment becomes final will be construed as amending the

time in which a protest can be filed and a request for hearing submitted.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99; Amended at 20 Ok Reg 2580, eff 7-11-03]

710:1-5-73. Initial review, determination of abatement request

(a) Division to review. All requests for adjustment or abatement of an

assessment shall be forwarded to the Division which issued the proposed

assessment to determine whether the request was timely filed. Should it be

determined that the request was timely filed, the Division will determine

whether the assessment is clearly erroneous.

(b) Division may adjust or abate clearly erroneous assessment. If the Division

determines that the assessment, or some portion thereof, is clearly erroneous,

the Division shall issue a document, signed by the Division Director, or a

designee, adjusting or abating the assessment, a copy of which shall be mailed

to the applicant.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-74. Notification of initial disposition of abatement request; procedure

upon denial by Division

Should the Division not agree that the evidence presented demonstrates that

the assessment, or some portion thereof, is clearly erroneous, the Division shall

notify the taxpayer of its determination. The notification letter shall state

prominently that should taxpayer disagree with the Division's determination,

taxpayer must make written request for a review of the determination, to the

710:1 OKLAHOMA TAX COMMISSION

General Counsel's office within thirty days of the mailing of the Division

notification. Failure of taxpayer to seek review within thirty days of the mailing of

the Division's notification shall constitute abandonment of the request.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-75. Docketing of abatement request

The General Counsel's office assigns a case number to a request for

adjustment or abatement of a proposed assessment which has become final,

creates a file, assigns an attorney, and notifies the taxpayer of the assignment.

710:1-5-76. Presentation of abatement request to Commission

(a) Once docketed, the assigned attorney shall review the evidence submitted in

support of taxpayer's request, prepare a fact sheet for presentation to the

Commission at a regularly scheduled meeting, and notify the taxpayer of the day

said request will be presented. The taxpayer may appear before the

Commission and present documentary evidence and testimony in the form of

affidavit(s).

(b) No hearing other than the appearance of taxpayer at a regularly scheduled

meeting of the Commission will be held. No transcript of the appearance before

the Commission will be prepared.

the Commission, the taxpayer will need to contact a certified court reporter, and

make the necessary arrangements for the presence of the reporter at the

Commission meeting, and the cost thereof. The cost of transcribing will be

borne by the taxpayer who must furnish the original of the transcript to the

Commission.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-77. "Preponderance of the evidence" and "clearly erroneous" defined;

burden of proof for tax abatement purposes

(a) In order to have the assessment adjusted or abated, the taxpayer must

demonstrate, by a preponderance of the evidence, that the assessment or some

portion thereof is clearly erroneous.

(b) For purposes of Section 221(e) of Title 68 of the Oklahoma Statutes and Part 7

of this Subchapter, "preponderance of the evidence" means the evidence which

is of greater weight or more convincing than the evidence which is offered in

opposition to it; evidence which as a whole shows that the fact sought to be

proved is more probable than not.

of this Subchapter, "clearly erroneous" means unsupported by substantial

evidence; contrary to clear weight of evidence or induced by erroneous view of

the law.

(d) In order to sustain the burden of demonstrating that the assessment or some

portion thereof is clearly erroneous, taxpayer must show evidence that the

710:1 OKLAHOMA TAX COMMISSION

assessment deviates from the law and is therefore invalid or is unsupported by

the evidence, or both.

[Source: Amended at 16 Ok Reg 2628, eff 6-25-99]

710:1-5-78. No appeal; no stay of collection proceedings as a result of

abatement request

No appeal to the Supreme Court of the State of Oklahoma may be taken

from an Order denying taxpayer's request to adjust or abate an assessment.

Furthermore, collection actions instituted by the Commission to collect a tax

liability will not be stayed or continued as a result of the filing of a request for

adjustment or abatement.

[Source: Amended at 9 Ok Reg 3015, eff 7-13-92; Amended at 16 Ok Reg 2628, eff 6-25-99]

PART 8. SETTLEMENT OF TAX LIABILITY

710:1-5-80. Purpose

The provisions of this Part are provided to taxpayers who wish to request

settlement of all or any portion of an Oklahoma tax liability and interest and

penalties which have already become final for less than the outstanding

amount. [See: 68 O.S. §219.1]

[Source: Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03]

710:1-5-81. Definitions

The following words and terms, when used in this Part, shall have the

following meaning, unless the context clearly indicates otherwise:

"Commission" means the Oklahoma Tax Commission.

"Final liability" means:

(A) The tax, penalty and interest due after the expiration of the statutory

prescribed time within which to file a protest to a proposed assessment;

(B) The amount due after the exhaustion of administrative remedies

without appeal to the Supreme Court;

(D) The amount found due after a final court decision concerning the

existence or amount of the liability; or,

(E) Other cases of liabilities where further administrative or judicial review is

not available and the only consideration is collectibility.

"Insolvency" means:

(A) The inability to pay debts as they fall due in the usual course of business;

or,

(B) Having liabilities in excess of the reasonable market value of assets held.

"Person" means any individual, partnership, corporation, limited liability

company, association, or public or private organization of any character.

710:1 OKLAHOMA TAX COMMISSION

"Settlement Agreement" means a written agreement between a taxpayer

and the Commission whereby the Commission agrees to abate all or a portion of

an outstanding tax liability, including the interest or penalties accruing thereto,

and the taxpayer agrees to pay the remainder of such liability, if any, as provided

herein.

"Tax Liability" means and includes the total amount of Oklahoma tax,

penalty, or interest due.

"Taxpayer" means:

(A) Any person subject to or liable for any Oklahoma tax; or,

(B) Any person required to file a return, or to pay or withhold and remit any

tax required by the provisions of any Oklahoma tax law that is administered

by the Commission.

"Trust fund tax" means Oklahoma Sales Tax levied pursuant to 68 O.S. §§ 1350

et seq., Oklahoma Gross Receipts Tax (AKA Mixed Beverage Tax) pursuant to

37A §§ 5-105-5-107, Oklahoma Income Tax withholding levied pursuant to 68

O.S. §§ 2385.2-2385.28, or Oklahoma Motor Fuel taxes levied pursuant to 68 O.S.

§§ 500.1 et seq.

[Source: Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03;

Amended at 39 Ok Reg 2237, eff 9-11-22]

710:1-5-82. Grounds for settlement

(a) General provisions. Except for a trust fund tax, the Commission may settle

an Oklahoma tax liability for any of the following reasons:

(1) Collection of the tax with interest and penalties would reasonably result

in the taxpayer declaring bankruptcy;

(2) The tax liability is uncollectible due to the insolvency of the taxpayer

resulting from factors beyond the control of the taxpayer or other similar

factors; or,

(3) The tax liability is the result of actions of a person other than the taxpayer

and to hold taxpayer liable for the tax liability would be inequitable.

(b) Uncollected trust fund taxes. If the tax liability for which settlement is

sought is a "trust fund tax", the applicant must show:

(1) That the tax was not collected; and,

(2) That applicant had a good faith belief that collection of the tax was not

required.

to the Commission, may not be abated.

[Source: Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03]

710:1-5-83. Eligibility requirements for settlement

(a) General requirements. Before a taxpayer becomes eligible for settlement

pursuant to this program, the following general requirements must be met:

(1) Tax liability must be final.

(2) All administrative remedies and appeals must have been exhausted.

710:1 OKLAHOMA TAX COMMISSION

(3) Taxpayer must be current with all returns filed or required to be filed

with the Commission.

(4) Taxpayer must not be currently the subject of an open bankruptcy

proceeding.

(5) Taxpayer must not be currently the subject of a State tax-related criminal

investigation or criminal prosecution.

(b) Bankruptcy or insolvency. If settlement is sought on the grounds of

bankruptcy or insolvency:

(1) Taxpayer must demonstrate that the ability to make payment in full any

time in the foreseeable future is unlikely.

(2) Taxpayer must be without sufficient resources or unable to apply present

or future resources to paying the outstanding tax liability.

(3) Taxpayer must be reasonably unable to dispose of assets or borrow

against assets to pay the tax liability.

(4) Taxpayer must demonstrate that monthly income is insufficient to fully

pay the tax liability through reasonable installment payments.

[Source: Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03]

710:1-5-84. Application for a Settlement Agreement

(a) Application. The forms necessary to make application for a Settlement

Agreement are available online at www.tax.ok.gov.

(b) When a Power of Attorney is required. Applications being tendered on

behalf of a taxpayer by an attorney, CPA, or other person, must be accompanied

by a properly acknowledged Power of Attorney Form, signed by the taxpayer,

authorizing the person to act on behalf of the taxpayer.

additional financial or other information deemed necessary to supplement the

Settlement Agreement Application.

(d) Presentation of the application. The Income Tax Accounts Division shall

present a completed application to the Commission during a regularly

scheduled meeting of the Commission.

(e) Notice of the determination of the application. The Income Tax Accounts

Division shall notify the applicant in writing of the decision of the Commission

and make any required adjustments to the applicant's account.

(f) Withdrawal of application. An application for a Settlement Agreement

may be withdrawn by the taxpayer at any time prior to its acceptance.

[Source: Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03]

710:1-5-85. Effect of Offer in Compromise by the Internal Revenue Service

(a) Acceptance of an Offer in Compromise by the Internal Revenue Service

does not automatically guarantee acceptance by the State. An application for a

Settlement Agreement tendered to the Commission will be reviewed and

evaluated on its own merits.

(b) The federal "Offer in Compromise" form cannot be substituted for the

710:1 OKLAHOMA TAX COMMISSION

Oklahoma Settlement Agreement Application. However, other documents such

as the current financial statements included in a compromise offer submitted to

the Internal Revenue Service may also be submitted to the State in support of an

application for a Settlement Agreement.

[Source: Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03]

710:1-5-86. Review by Commission

(a) Unanimous vote required. A unanimous vote of the members of the

Commission is required for approval of a Settlement Agreement.

(b) Discretionary act. The determination of settlement is within the sole

discretion of the Commission.

consider, but not be limited to, the following matters:

(1) The likelihood of collection of the debt;

(2) The amount of the debt;

(3) Efforts made by the Applicant to pay a part of the debt prior to filing an

application for settlement;

(4) The taxpaying record of the Applicant;

(5) Applicant's current and possible future earning capacity;

(6) The portion of the tax itself which would be paid under the terms of the

proposed Settlement Agreement;

(7) The composition of the balance of tax, penalty, and interest due;

(8) The percentage of the tax debt proposed to be settled;

(9) The Applicant's age and health;

(10) The Applicant's net worth;

(11) The acceptance by the Internal Revenue Service of an Offer in

Compromise and the amount;

(12) The age of the debt;

(13) The existence of liens;

(14) Current operating status of any business;

(15) Bankruptcy status;

(16) The amount determined to be collectible. This amount is generally based

upon the Commission's evaluation of the reasonable collection potential of

the taxpayer's assets and revenue. The collectible amount is one factor used

to determine if an offer is reasonable.

(17) Other liable parties;

(18) Whether tax debt due is a trust tax collected by Applicant but not

remitted to the Commission;

(19) What other persons are liable;

(20) Whether the Applicant is located within Oklahoma or not;

(21) The accuracy and veracity of the Applicant's representations to the

Commission;

(22) The recommendations of the Income Tax Accounts Division; and

(23) The expense and time expended in future collection efforts by the

Commission on the Applicant's debt.

710:1 OKLAHOMA TAX COMMISSION

(d) Other circumstances which may be considered. In addition to the factors

set out in (c) of this Section, the Commission may consider any other aggravating

or mitigating circumstances contributing to the request for settlement,

including, but not limited to:

(1) Good faith efforts made by taxpayer to comply with the tax laws of this

state.

(2) Benefit received by taxpayer from nonpayment of the tax.

(3) Involvement of taxpayer in economic activity which gave rise to tax

liability.

(e) No appeal of denial. The decision by the Commission to decline a proposed

Settlement Agreement is final and is not appealable.

(f) Court approval required. If the amount of the tax liability to be abated

exceeds Twenty-five Thousand Dollars ($25,000.00), the Settlement Agreement

requires the approval of a judge of the district court of Oklahoma County.

(g) Resubmission of application. If a taxpayer has previously submitted an

application for a Settlement Agreement and that application was not accepted,

the taxpayer may apply at a later date if financial conditions have changed, or to

submit additional information not previously provided for review by the

Commission.

[Source: Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03;

Amended at 23 Ok Reg 2802, eff 6-25-06; Amended at 36 Ok Reg 1197, eff 8-11-19]

710:1-5-87. Disclosure

No return or document filed with the Commission pursuant to the Settlement

of Tax Liability program will be subject to disclosure except as provided by 68

O.S. § 205.

[Source: Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03]

710:1-5-88. Effect of a Settlement Agreement

(a) Effect of pending Settlement Agreement.

(1) Filing an application for settlement does not constitute the filing of a

protest of a proposed assessment, or extend the time to protest a proposed

assessment. Filing an application for settlement does not constitute the

taking of an appeal to the Oklahoma Supreme Court, nor extend the time to

take an appeal to the Supreme Court. Filing an application for settlement

does not place a taxpayer in compliance for purposes of renewing a

professional license.

(2) If taxpayer is on an existing repayment plan, the taxpayer must continue to

make payments until the application for a Settlement Agreement is either

accepted or denied. Payments made pursuant to an existing repayment plan

will not be considered a part of the amount offered in the agreement.

(3) Collection activities may continue during the review process, however, the

Commission may suspend its collection efforts if the interests of the State will

not be compromised. If there is any indication that the taxpayer filed the

710:1 OKLAHOMA TAX COMMISSION

settlement offer simply to delay collection of the tax or that the delay would

interfere with collecting the tax, the Commission will immediately resume

collection efforts.

(4) Interest and penalty will continue to accrue on any unpaid tax debt while

the settlement is being considered.

(b) Effect of accepted Settlement Agreement.

(1) A Settlement Agreement relates to the entire liability of the taxpayer and

all questions of such liability are conclusively settled thereby.

(2) Neither the Commission nor the taxpayer shall, upon acceptance of the

proposed Settlement Agreement, be permitted to revise the agreement

except by reason of the following:

(A) Falsification or concealment of facts or assets by the taxpayer; or

(B) Mutual mistake of a material fact concerning the basis for a Settlement

Agreement; or

liquidated during the review process; or

(D) Taxpayer failed to comply with the terms of the agreement.

(3) Settlement of a civil liability does not constitute a settlement of a criminal

liability concerning the tax period in question.

(4) Tax liens will be released only after an application for a Settlement

Agreement is accepted and the amount offered is paid in full. If the amount

of the tax liability to be abated exceeds Twenty-five Thousand Dollars

($25,000.00), the taxpayer is also required to provide to the Commission a

certified copy of Oklahoma County District Court approval of the Settlement

Agreement before tax liens will be released.

[Source: Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03;

Amended at 24 Ok Reg 1688, eff 6-11-07; Amended at 36 Ok Reg 1197, eff 8-11-19]

710:1-5-89. Payment

(a) No payment is required to be paid when the Settlement Agreement

Application is submitted to the Commission.

(b) Full payment of the amount offered in settlement of the tax liability must be

made within thirty (30) days from date of notification that the proposed

Settlement Agreement has been accepted. Payment of the accepted

settlement amount by cash, cashier's check, money order, or charged to an

approved credit card must be made by the payment due date indicated on the

acceptance notice.

[See:https://www.ok.gov/tax/Online_Services/Payment_Options/index.html]

even if the Settlement Agreement is declined or withdrawn. The retained

payment will be applied to Applicant's outstanding tax liability in accordance

with Section 710:1-3-46 of this Chapter.

(d) In appropriate circumstances, the Commission may consider proposed

Settlement Agreements that provide for payments to be made over a period of

time based on future income.

710:1 OKLAHOMA TAX COMMISSION

(e) The Settlement Agreement becomes void if taxpayer defaults on payment

under the agreement.

(f) The Settlement Agreement becomes void if the agreement was obtained by

fraud or misrepresentation of a material fact.

[Source: Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03;

Amended at 24 Ok Reg 1688, eff 6-11-07]

710:1-5-90. If the proposed Settlement Agreement is declined

(a) If the application for a Settlement Agreement is declined, the taxpayer will

be notified by the Income Tax Accounts Division in writing.

(b) Taxpayer should immediately contact the Commission to arrange payment

of the entire liability. If immediate payment of the entire liability is not possible,

the taxpayer may request payment through the regular collection procedures.

[Source: Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03]

710:1-5-91. Return of Settlement Agreement Application

The Commission may reject the Settlement Agreement Application as not

processible for any of the following reasons:

(1) The applicant is not adequately identified (name, address, ID#, etc.) or

required signatures are not provided.

(2) The settlement offer includes an amount already collected or subject to

refund.

(3) The tax liability is not adequately identified.

(4) The Settlement Agreement Application does not show a reason or a

statement supporting the reason for the settlement offer has not been

provided.

(5) Financial statements or other documentation have not been included,

or are incomplete or do not present a complete and accurate

representation of the taxpayer's financial condition.

(6) The Commission's records indicate noncompliance with filing of

required returns.

(7) The applicant is currently under bankruptcy court jurisdiction.

(8) Power of Attorney Form (if indicated) has not been included.

[Source: Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03;

Amended at 24 Ok Reg 1688, eff 6-11-07]

710:1-5-92. Exclusivity of request for settlement of tax liability

Procedures governing settlement of final tax liabilities, pursuant to this Part,

are exclusive and must be clearly distinguished from procedures required for the

filing of a timely protest of a proposed tax assessment or a protest of a denial of

a claim for refund of taxes as set out in 710:1-5-21 through 710:1-5-49. The

procedures for the filing, consideration, and disposition of petitions for

abatement or adjustment of a tax assessment pursuant to the provisions of 68

710:1 OKLAHOMA TAX COMMISSION

O.S. § 221(e) are set out in 710:1-5-70 through 710:1-5-78. Procedures for

settlement of disputed, unliquidated tax claims or assessments are set out in

710:1-5-13.

[Source: Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03]

710:1-5-93. Officials ineligible for Settlement Agreement

No appointed or elected officials may apply for settlement pursuant to this

Section.

[Source: Added at 20 Ok Reg 748, eff 3-17-03 (emergency); Added at 20 Ok Reg 2580, eff 7-11-03]

PART 9. PROCEEDINGS RELATED TO PERMITS AND LICENSES

710:1-5-100. Show cause hearings

When a Tax Division contests the taxpayer's compliance with State tax laws or

Commission Rules, the Division may cause notice to be issued to the taxpayer

requiring him to appear before the Administrative Law Judge or an

Administrative Hearing Officer to show why his license or permit should not be

cancelled. The notice shall contain a date certain for the hearing. Failure to

appear at the hearing may result in the cancellation of license or permit. The

taxpayer may represent himself or be represented by an attorney, an accountant

or other representative approved by the Commission. The taxpayer is to bring all

reports and payments for delinquent taxes, penalty and interest to the hearing.

Evidence and testimony of witnesses may be presented at the hearing.

[Source: Amended at 10 Ok Reg 3819, eff 7-12-93; Amended at 12 Ok Reg 3474, eff 7-21-95

(emergency); Amended at 13 Ok Reg 3091, eff 7-11-96; Amended at 16 Ok Reg 2628, eff 6-25-99]

PART 10. BUSINESS COMPLIANCE PROCEEDINGS

710:1-5-110. Definitions

The following words and terms, when used in this Part, shall have the

following meaning, unless the context clearly indicates otherwise:

"Business day" means a day on which State offices are open for regular

business.

"Noncompliant taxpayer" means any taxpayer operating under a sales tax

permit who, within any consecutive twenty-four-month period, has failed to

file two (2) reports or remit tax due for any two (2) months, as required under

the provisions of any tax law. Provided, a taxpayer shall not be deemed

noncompliant for nonpayment of income taxes.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13; Amended at 35 Ok Reg 2032, eff 9-14-18]

710:1-5-111. Noncompliant taxpayer determination and advisory notice

710:1 OKLAHOMA TAX COMMISSION

Should a taxpayer fail to file two (2) reports or remit tax due for two (2)

months within a twenty-four-month period, the taxpayer is deemed to be

noncompliant and will be issued an advisory notice that a third delinquency in

reporting or remitting taxes occurring prior to payment of identified tax

delinquencies within the twenty-four-month period will result in closure of

taxpayer's business. The advisory notice provided pursuant to this Section will

be sent certified by the U.S. postal service to the taxpayer's last-known address

or will be hand delivered to the taxpayer's business address.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13; Amended at 35 Ok Reg 2032, eff 9-14-18]

710:1-5-112. Commencement of twenty-four (24) month period and examples

(a) Commencement of twenty-four (24) month period. A taxpayer's initial tax

delinquency begins commencement of the twenty-four (24) month period for

purposes of the business compliance proceedings.

(b) Examples. The following examples illustrate the application of the twenty-

four (24) month period.

(1) A taxpayer is delinquent for July and August of 2017, but does not incur

another delinquency until September 2019; no pending business closure

notice will be issued. Taxpayer's September 2019, delinquency begins

commencement of a new twenty-four (24) month period.

(2) A taxpayer is delinquent for July and August of 2017 and pays the tax,

interest, penalty and fees due before incurring an additional delinquency in

January 2018. A pending business closure notice will not be issued. The

January 2018 delinquency begins a new twenty-four (24) month period.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13; Amended at 35 Ok Reg 2032, eff 9-14-18]

710:1-5-113. Pending business closure notice

(a) Applicability. When a taxpayer deemed noncompliant fails to report or pay

tax for a third month within a twenty-four-month period, a Pending Business

Closure Notice will be issued.

(b) Contents of pending business closure notice. The notice will outline the

outstanding reports and tax payments and will advise the noncompliant

taxpayer that the business will be closed unless taxpayer within five (5)

business days from the delivery or attempted delivery of the notice exercises

one of the following options:

(1) Provides proof to the satisfaction of the Tax Commission that the

delinquent tax reports and/or tax payments have been previously filed

and/or paid.

(2) Files all outstanding tax reports and remits the delinquent tax including

any accrued interest, penalty and fees.

(3) Pursuant to the terms outlined in Section 710:1-5-115, enters into an

installment payment agreement approved by the Tax Commission to satisfy

the delinquent tax, interest, penalty and fees due.

710:1 OKLAHOMA TAX COMMISSION

(4) Objects to the business closure by filing a written protest and request for

an administrative hearing, pursuant to the terms outlined in Section 710:1-5-

117.

certified by the U.S. postal service to the taxpayer's last-known address or hand

delivered to the taxpayer's business address.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13; Amended at 35 Ok Reg 2032, eff 9-14-18]

710:1-5-114. Closure Order

If a noncompliant taxpayer fails to timely and fully exercise one of the

options to avoid business closure outlined in paragraphs (1) through (4) of

subsection (b) of Section 710:1-5-113, or to comply with the terms of an

installment payment agreement pursuant to Section 710:1-5-115, the Tax

Commission will issue a Closure Order.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13]

710:1-5-115. Installment payment agreements

(a) Eligibility and terms of installment payment agreements. Noncompliant

taxpayers owing tax delinquencies of Five Hundred Dollars ($500.00) or less

are not eligible for an installment payment agreement. Installment Payment

Agreements (IPA) for tax delinquencies over Five Hundred Dollars ($500.00)

require a down payment equal to or greater than one-fourth (1/4) of the tax,

interest, penalty and fees owed. The agreement shall not exceed twelve (12)

months. A tax warrant for the delinquent tax, interest, penalty and fees will be

filed by the Tax Commission to protect the State's interest.

(b) Installment payment agreement conditions.

(1) Taxpayer must file all delinquent tax returns prior to entering into an

installment payment agreement.

(2) Taxpayer must make installment payments when due by cashier's check,

money order, or credit card accepted by the Tax Commission.

(3) Taxpayer must remain in compliance, filing all tax returns and paying in

full all taxes that come due during the term of the installment payment

agreement.

payment agreement must be in writing and signed by both the taxpayer and a

Tax Commission representative.

(d) Default. Taxpayers failing to abide by the requirements set out in

subsection (b) of this Section will be considered in default. Once in default, a

Closure Order will be served immediately without further notice to the

defaulting taxpayer and a placard will be affixed to all entrances to the

business pursuant to Section 710:1-5-122.

(e) Exceptions to terms of and eligibility for installment payment

agreements. A taxpayer may request an installment payment agreement

outside the parameters of subsection (a) of this Section. Requests by taxpayers

710:1 OKLAHOMA TAX COMMISSION

with hearings scheduled pursuant to Section 710:1-5-117 may be made to the

Hearing Officer. Otherwise, such requests should be made to the Executive

Director of the Oklahoma Tax Commission. In the event the request for an

extended installment agreement is denied by the Hearing Officer or Executive

Director the taxpayer may make the request at a regularly scheduled meeting

of the Tax Commissioners.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13; Amended at 35 Ok Reg 2032, eff 9-14-18]

710:1-5-116. Interest and penalty waiver requests

(a) Waiver requests. In the event, a taxpayer prior to business closure by

affixing of a placard as provided in Section 710:1-5-122, pays the delinquent tax

in full and requests, in writing, a waiver of interest and penalty, the waiver

request will be treated as a stay to the business closure and a hearing will be

scheduled in the same manner as hearings to business closures in Section

710:1-5-120.

(b) Consideration of the request. Before the scheduled hearing date, the

waiver request must be considered by the applicable Division or Tax

Commissioners, dependent upon the amount requested to be waived, and the

taxpayer advised regarding approval/disapproval of the request.

hearing will be stricken from the docket and the taxpayer will be deemed

compliant for purposes of the business closure proceedings. If the waiver

request is not approved or only partially approved, the taxpayer will be

afforded the opportunity, prior to or at the hearing, to pay in full the

outstanding interest, penalties and fees or enter into an installment agreement

to pay the outstanding amounts subject to the provisions of Section 710:1-5-115.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13; Amended at 35 Ok Reg 2032, eff 9-14-18]

710:1-5-117. Hearing request by noncompliant taxpayer

(a) Contents and form of protest and request for hearing. The protest and

request for hearing must be made in writing, signed by the taxpayer or an

authorized representative, and should outline therein:

(1) Taxpayer's name, address and social security number or employer's

identification number;

(2) Taxpayer's sales tax permit or other identification number issued by the

Tax Commission;

(3) The tax reporting periods at issue; and

(4) That an administrative hearing is requested including the manner in

which the taxpayer desires the hearing to be held whether in person, by

telephone, upon written documents furnished by the noncompliant

taxpayer, or upon written documents and evidence produced by the

noncompliant taxpayer at hearing.

710:1 OKLAHOMA TAX COMMISSION

(b) Rule applicability. The tax protest procedure outlined in 710:1-5-21 through

710:1-5-48 is not applicable to the business closure protest proceedings which

are solely governed by the provisions of 710:1-5-117 through 710:1-5-121.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13; Amended at 32 Ok Reg 1330, eff 8-27-15; Amended

at 35 Ok Reg 2032, eff 9-14-18]

710:1-5-118. Timely filing of protest and applications for hearing

In order for the hearing request to be considered timely it must be filed

within five (5) business days after the date of delivery or attempted delivery of

the pending business closure notice.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13]

710:1-5-119. Defenses to business closure

The only defenses to business closure are proof that the noncompliant

taxpayer:

(1) Filed all delinquent returns and paid the delinquent tax due including

interest, penalty and fees; or

(2) Has entered into a payment agreement pursuant to Section 710:1-5-115 to

satisfy the tax due including interest, penalty and fees.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13; Amended at 35 Ok Reg 2032, eff 9-14-18]

710:1-5-120. Hearing procedures governing hearing requests to pending

business closure notice

(a) Hearing schedule. The date, time, and place for the hearing will be set by

the hearing officer and provided to the noncompliant taxpayer by mail at least

five (5) days in advance of the hearing.

(b) Administrative hearing. The administrative hearing will be conducted by

a hearing officer appointed by the Tax Commission. The administrative

hearing will be held within fourteen (14) calendar days of receipt by the Tax

Commission of the noncompliant taxpayer's request for hearing. Subject to

the approval of the hearing officer, the administrative hearing may be held in

person, by telephone, upon written documents furnished by the noncompliant

taxpayer, or upon written documents and any evidence produced by the

noncompliant taxpayer at an administrative hearing. A noncompliant taxpayer

who requests an administrative hearing based upon written documents is not

entitled to any other administrative hearing regarding the matter prior to the

date a decision is rendered by the hearing officer. The noncompliant taxpayer

may be represented by an authorized representative who may present

evidence in support of the position of the noncompliant taxpayer.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13]

710:1-5-121. Hearing officer decisions

710:1 OKLAHOMA TAX COMMISSION

The decision of the hearing officer to affirm or deny the business closure

must be rendered in writing and a decision to affirm the business closure shall

constitute a Closure Order with copies delivered to the noncompliant taxpayer

by the U.S. postal service or by hand delivery.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13]

710:1-5-122. Business closure

If a noncompliant taxpayer fails to fully exercise one of the options to avoid

business closure outlined in paragraphs (1) through (4) of subsection (b) of

Section 710:1-5-113, or to comply with the terms of an installment payment

agreement pursuant to Section 710:1-5-115, or if the business closure decision is

affirmed after administrative or judicial review, the Tax Commission shall

provide notice of business closure by affixing a placard to all entrances of the

business that:

(1) Identifies the business as being subject to a Closure Order; and

(2) States that the business is prohibited from further operation.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13]

710:1-5-123. District Court injunctions

After being served with a Closure Order, it shall be unlawful for any person

to continue to operate the business. If a person continues or threatens to

continue the unlawful operation of the business after having received a Closure

Order, the Tax Commission may seek an injunction in District Court to enjoin

the taxpayer from further operating or conducting the unlawful business. In all

cases where injunction proceedings are brought under this Section, the Tax

Commission shall not be required to furnish bond. Where notice of closure has

been given in accordance with the provisions of Section 710:1-5-122, no further

notice shall be required before the issuance of a temporary restraining order.

[Source: Added at 30 Ok Reg 1850, eff 7-11-13]

PART 11. DISQUALIFICATION OF PERSONS REPRESENTING TAXPAYERS

BEFORE THE OKLAHOMA TAX COMMISSION

710:1-5-200. Disqualification procedure

(a) General provisions. Any person shown to be in violation of the provisions of

Section 236 of Title 68 of the Oklahoma Statutes, may, after notice and an

opportunity for hearing, be disqualified from practice before the Oklahoma Tax

Commission.

(b) Complaint and initial investigation. The Commission may, upon its own

initiative, or upon receiving a written complaint filed with the Secretary-Member,

cause the complaint to be investigated and a determination made as to

whether good cause exists for initiating a disqualification proceeding. If it is

determined that no violation has occurred, or if there is insufficient evidence to

710:1 OKLAHOMA TAX COMMISSION

support the allegation, the investigation will be terminated. If a determination is

made that good cause exists for initiating a disqualification proceeding, such

proceeding will be promptly commenced.

proceeding, the matter shall be set for hearing before a hearing examiner or an

Administrative Law Judge assigned by the Commission. The respondent who is

the subject of the proceeding, and the Office of the General Counsel who shall

prosecute the matter, shall be provided notice of the hearing, at least thirty (30)

days prior to the hearing date.

(d) Notice. Notice to respondent shall be made by certified mail, return receipt

requested, postage prepaid, to the last known address, and shall contain a

summary of the complaint, the name of the Administrative Law Judge or

hearing examiner assigned to the matter, and the time and date of the hearing.

(e) Conduct of hearing. The hearing shall be public except where prohibited by

confidentiality imposed by law, and shall be conducted in conformity with the

Rules of Practice and Procedure before the Office of the Administrative Law

Judges (OAC 710:1-5-20 through 710:1-5-49).

(f) Burden of proof. The Office of the General Counsel shall have the burden of

establishing, by a preponderance of the evidence, that a violation of Section 236

has occurred such that respondent should be disqualified from practice before

the Commission. Notice of the final disposition of the disqualification

proceedings will be provided respondent.

(g) Scope of action. The respondent may be found qualified to practice and the

proceeding dismissed on the merits; or the respondent may be disqualified from

practice before the Commission for a stated period of time, or indefinitely. The

Commission may provide notice of the determination of the disqualification

proceeding to other agencies, boards, or Commissions who exercise jurisdiction

or regulatory authority over the respondent or the activities involved in the

violation. Nothing in this Section shall preclude the Commission from seeking

any other remedies or legal proceedings available at law to enforce its orders,

rules, or the provisions of 68 O.S. § 236.

[Source: Added at 16 Ok Reg 2642, eff 6-25-99]

SUBCHAPTER 8. TAX AMNESTY PROGRAM [EXPIRED]

710:1-8-1. General provisions [EXPIRED]

[Source: Added at 19 Ok Reg 3023, eff 8-14-02 through 7-14-03 (emergency)]

710:1-8-2. Definitions [EXPIRED]

[Source: Added at 19 Ok Reg 3023, eff 8-14-02 through 7-14-03 (emergency)]

710:1-8-3. Eligible tax liabilities to which tax amnesty may apply [EXPIRED]

[Source: Added at 19 Ok Reg 3023, eff 8-14-02 through 7-14-03 (emergency)]

710:1 OKLAHOMA TAX COMMISSION

710:1-8-4. Qualification for amnesty program [EXPIRED]

[Source: Added at 19 Ok Reg 3023, eff 8-14-02 through 7-14-03 (emergency)]

710:1-8-5. Application procedures [EXPIRED]

[Source: Added at 19 Ok Reg 3023, eff 8-14-02 through 7-14-03 (emergency)]

710:1-8-6. Verification and review [EXPIRED]

[Source: Added at 19 Ok Reg 3023, eff 8-14-02 through 7-14-03 (emergency)]

710:1-8-7. Disclosure [EXPIRED]

[Source: Added at 19 Ok Reg 3023, eff 8-14-02 through 7-14-03 (emergency)]

710:1-8-8. Special circumstances [EXPIRED]

[Source: Added at 19 Ok Reg 3023, eff 8-14-02 through 7-14-03 (emergency)]

SUBCHAPTER 9. OKLAHOMA VOLUNTARY COMPLIANCE INITIATIVE

[EXPIRED]

710:1-9-1. General provisions [EXPIRED]

[Source: Added at 26 Ok Reg 17, eff 8-8-08 through 7-14-09 (emergency)]

710:1-9-2. Definitions [EXPIRED]

[Source: Added at 26 Ok Reg 17, eff 8-8-08 through 7-14-09 (emergency)]

710:1-9-3. Eligible tax liabilities to which Voluntary Compliance Initiative

may apply [EXPIRED]

[Source: Added at 26 Ok Reg 17, eff 8-8-08 through 7-14-09 (emergency)]

710:1-9-4. Qualification for Voluntary Compliance Initiative [EXPIRED]

[Source: Added at 26 Ok Reg 17, eff 8-8-08 through 7-14-09 (emergency)]

710:1-9-5. Application procedures [EXPIRED]

[Source: Added at 26 Ok Reg 17, eff 8-8-08 through 7-14-09 (emergency)]

710:1-9-6. Verification and review [EXPIRED]

[Source: Added at 26 Ok Reg 17, eff 8-8-08 through 7-14-09 (emergency)]

710:1-9-7. Disclosure [EXPIRED]

[Source: Added at 26 Ok Reg 17, eff 8-8-08 through 7-14-09 (emergency)]

710:1-9-8. Nonpayment penalty [EXPIRED]

710:1 OKLAHOMA TAX COMMISSION

[Source: Added at 26 Ok Reg 17, eff 8-8-08 through 7-14-09 (emergency)]

710:1-9-9. Special circumstances [EXPIRED]

[Source: Added at 26 Ok Reg 17, eff 8-8-08 through 7-14-09 (emergency)]

710:1-9-10. Payment plan guidelines [EXPIRED]

[Source: Added at 26 Ok Reg 17, eff 8-8-08 through 7-14-09 (emergency)]

SUBCHAPTER 11. RETAILER COMPLIANCE INITIATIVE [EXPIRED]

710:1-11-1. Purpose [EXPIRED]

[Source: Added at 28 Ok Reg 461, eff 12-27-10 through 7-14-11 (emergency)]

710:1-11-2. [RESERVED]

[Source: Added at 28 Ok Reg 461, eff 12-27-10 through 7-14-11 (emergency)]

710:1-11-3. Definitions [EXPIRED]

[Source: Added at 28 Ok Reg 461, eff 12-27-10 through 7-14-11 (emergency)]

710:1-11-4. [RESERVED]

[Source: Added at 28 Ok Reg 461, eff 12-27-10 through 7-14-11 (emergency)]

710:1-11-5. Retailer Compliance Initiative [EXPIRED]

[Source: Added at 28 Ok Reg 461, eff 12-27-10 through 7-14-11 (emergency)]

SUBCHAPTER 13. CONSUMER COMPLIANCE INITIATIVE

710:1-13-1. Purpose

In order to encourage the voluntary disclosure and payment of use taxes

owed to the State, the Legislature has authorized the Tax Commission to

establish a Consumer Compliance Initiative.

[Source: Added at 28 Ok Reg 929, eff 6-1-11]

710:1-13-2. [RESERVED]

710:1-13-3. Consumer Compliance Initiative

Relief granted under Initiative. Taxpayers who qualify under the Initiative

will be granted a waiver of penalty, interest and other collection fees and the

Tax Commission will refrain from assessing use tax for more than one year prior

to the date the taxpayer registers to pay consumer use tax.

710:1 OKLAHOMA TAX COMMISSION

(1) Eligibility. Only businesses that make regular purchases of tangible

personal property outside the State of Oklahoma for their own use, storage

or consumption in this state are eligible for the relief granted under the

Initiative.

(2) Qualification. To qualify for the relief granted under the Initiative the

taxpayer must:

(A) Voluntarily file delinquent use tax returns and pay the delinquent

consumer use taxes reflected thereon; and

(B) Apply with the Oklahoma Tax Commission for an Oklahoma

consumer use tax account to report and remit use tax on a monthly

basis.

(i) Complete the business registration application online at

www.tax.ok.gov.

(ii) No fee is required to obtain the account.

(iii) Upon receipt and review of the application by the Tax

Commission, a consumer use tax account will be assigned.

(3) Exceptions. The relief provided under the Initiative is not available to a

taxpayer with respect to:

(A) Any matter or matters for which the consumer received notice of

the commencement of an audit and which the audit is not yet finally

resolved including any related administrative and judicial processes; and

(B) Use taxes already paid or remitted to the state.

(4) Applicability. The relief provided pursuant to the Initiative applies only

to use taxes due from a taxpayer in its capacity as a buyer not to use taxes

due from a taxpayer in its capacity as a seller.

[Source: Added at 28 Ok Reg 929, eff 6-1-11]

SUBCHAPTER 15. OKLAHOMA VOLUNTARY COMPLIANCE INITIATIVE 2015

[EXPIRED]

710:1-15-1. General provisions [EXPIRED]

710:1-15-2. Definitions [EXPIRED]

710:1-15-3. Eligible tax liabilities to which Voluntary Compliance Initiative

may apply [EXPIRED]

710:1-15-4. Qualification for Voluntary Compliance Initiative [EXPIRED]

710:1-15-5. Payments [EXPIRED]

710:1-15-6. Verification and review [EXPIRED]

710:1-15-7. Disclosure [EXPIRED]

710:1 OKLAHOMA TAX COMMISSION

710:1-15-8. Special circumstances [EXPIRED]

710:1-15-9. Payment plan guidelines [EXPIRED]

SUBCHAPTER 17. OKLAHOMA VOLUNTARY DISCLOSURE INITIATIVE

[EXPIRED]

710:1-17-1. General provisions [EXPIRED]

[Source: Added at 35 Ok Reg 53, eff 8-28-17 through 9-14-18 (emergency)]

710:1-17-2. Definitions [EXPIRED]

[Source: Added at 35 Ok Reg 53, eff 8-28-17 through 9-14-18 (emergency)]

710:1-17-3. Voluntary Disclosure Initiative [EXPIRED]

[Source: Added at 35 Ok Reg 53, eff 8-28-17 through 9-14-18 (emergency)]

710:1-17-4. Eligible tax liabilities to which Voluntary Disclosure Initiative may

apply [EXPIRED]

[Source: Added at 35 Ok Reg 53, eff 8-28-17 through 9-14-18 (emergency)]

710:1-17-5. Eligible taxpayers [EXPIRED]

[Source: Added at 35 Ok Reg 53, eff 8-28-17 through 9-14-18 (emergency)]

710:1-17-6. Modified Voluntary Disclosure Agreement [EXPIRED]

[Source: Added at 35 Ok Reg 53, eff 8-28-17 through 9-14-18 (emergency)]

710:1-17-7. Verification and review [EXPIRED]

[Source: Added at 35 Ok Reg 53, eff 8-28-17 through 9-14-18 (emergency)]

710:1-17-8. Disclosure [EXPIRED]

[Source: Added at 35 Ok Reg 53, eff 8-28-17 through 9-14-18 (emergency)]

710:1-17-9. Payment plan guidelines [EXPIRED]

[Source: Added at 35 Ok Reg 53, eff 8-28-17 through 9-14-18 (emergency)]

710:1 OKLAHOMA TAX COMMISSION

APPENDIX A. SCHEDULE OF FEES

DOCUMENT AUTHORITY FEE NOTES

Prior Notice of

Meetings of the

Oklahoma Tax

Commission

25 O.S. Supp. 1992,

§311(11)

$18.00 year (Annual Renewal

Required)

Certification of

Documents

68 O.S. 1991, §108 $2.00 each

certificate

Authentication of

Documents

68 O.S. 1991, §204 $1.00 each

Hearing transcripts 68 O.S. 1991, §108 $2.50 per page

(One original + 2 copies)

Copies of Exhibits 68 O.S. 1991, §108 $0.25 per page

Precedential

Decisions

68 O.S. 1991, §221(g)

$0.25 per page

Decisions from

Individual Tax

Hearings

68 O.S. 1991, §221(g)

$0.25 per page

General Document

Copying Fee

75 O.S. 1991, §302 $0.25 per page

Prior Years' Returns

and Accompanying

Forms

51 O.S. Supp. 1992,

§24A.5(3)

$0.25 per page

FAX Documents 68 O.S. 1991, §108 $1.00 per

document plus

$0.25 per page

Destination

unrestricted.

Certificate of

Compliance with

Franchise Tax Code

68 O.S. 1991, §1213 $1.00

Search Fee: Data

Search, Retrieval

and Compilation of

Certain Information

Pertaining to

Plugged Wells,

Leases, Unit

Numbers, Volume of

Production, and

Well Classification

68 O.S. Supp. 1992,

§1024

$20.00 first hour

$10.00 each

additional half-

hour

[Source: Added at 10 Ok Reg 3819, eff 7-12-93; Amended at 11 Ok Reg 3465, eff 6-26-94; Revoked

and reenacted at 13 Ok Reg 3933, eff 9-3-96 (emergency); Revoked and reenacted at 14 Ok Reg

710:1 OKLAHOMA TAX COMMISSION

2667, eff 6-26-97; Revoked and reenacted at 18 Ok Reg 2325, eff 5-7-01 (emergency); Revoked

and reenacted at 19 Ok Reg 2429. eff 6-27-02]