The Oklahoma Bar Journal October 2026

3) The tax liability is attribut able to actions of a person other than the taxpayer and it would be inequitable to hold the taxpayer liable for the tax liability; or 4) In cases of nonpayment of trust fund taxes, the taxes were not collected by the taxpayer from its customer and the taxpayer had a good faith belief that collection of the taxes was not required. The OTC has discretion to con sider the following circumstances when making findings on an abatement application: 1) Whether the taxpayer has made efforts in good faith to comply with the tax laws of this state; 2) Whether the taxpayer has benefited from the nonpay ment of the tax; and 3) Involvement of the taxpayer in

or on appeal, to the argu ments and legal authorities contained and cited in the application; 4) A statement of relief sought by the taxpayer; and 5) A verification by the tax payer or the taxpayer’s duly

Abatement 19 Taxpayers may submit a peti tion or request for abatement of a tax assessment, which is a pro cedure by which a taxpayer may request relief from an erroneous assessment. A taxpayer must request the OTC adjust or abate their assessment within one year of the assessment becoming final. Abatement can also be granted for other good cause as provided by statute. Specifically, the OTC is authorized to abate all or any por tion of tax liability, as well as cor responding penalties and interest, so long as the OTC finds by clear and convincing evidence that: 1) Collection of the tax liability and interest and penalties accruing thereto would reasonably result in the tax payer declaring bankruptcy; 2) The tax is uncollectible due

authorized agent that the statements and facts con tained therein are true. 17

After the application is submit ted, the division which issued the assessment reviews the account and determines whether adjustments are necessary. If disputes remain, the following process commences: 1) The protest application is forwarded to the offices of the administrative law judge (ALJ). 2) OTC’s Office of General Counsel assigns the protest to one of its attorneys. 3) If the taxpayer requests

to insolvency of the taxpayer resulting from facts beyond the control of the taxpayer or for other similar cause beyond the control of the taxpayer;

an oral hearing, the OTC shall provide the taxpayer with written notice of a hearing date. request an oral hearing, the OTC may proceed without further notice and enter an order in accordance with the OTC’s findings.

economic activity from which the tax liability originated.

4) If the taxpayer does not

If the taxpayer fails to file a written protest within the 60 days period described above, or fails to file notice required by 68 O.S. §226, the proposed assessment shall become final and absolute. 18 Protests bear many procedural similarities to claims for refund, however the latter progresses on a far swifter timeline.

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

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THE OKLAHOMA BAR JOURNAL