Title 15 . Revenue

Chapter 10 . (Repealed)

Section 40. Tax liability bond requirements

15 AAC 10.040. Tax liability bond requirements

(a) If the taxpayer posts a tax liability bond for the current year, the bond may be a new bond or an amendment to an existing tax liability bond made payable to the Department of Revenue. If an existing tax liability bond is amended to cover the current year its coverage must be increased by the full amount of the required security for the current year without offset by any application for reduction or cancellation, until the department has granted such an application under 15 AAC 10.070.

(b) A tax liability bond, or an amendment to a tax liability bond, may not be reduced or cancelled in part or in whole by the taxpayer or surety without permission from the department under 15 AAC 10.070, except that a surety may upon 30 days' notice to the department cancel a bond prospectively with regard to the taxes attributable to a tax period or to that portion of any tax period which begins on a date more than 30 days after the date of the notice to the department.

(c) A tax liability bond, or an amendment to a tax liability bond, with respect to any year remains in effect until the assessment or collection of a tax or license fee, required to be shown in the affidavit for that year for which the tax liability bond was issued, is prohibited by the applicable statute of limitations.

History: Eff. 6/21/78, Register 66

Authority: AS 43.05.080

AS 43.10.160