(a) Initiated byDepartment. The Department must refund an overpayment made by a taxpayer whenthe Department processes a return and finds all of the following:
(1) The statute oflimitations for obtaining a refund has not expired.
(2) The amount shown dueon the return is not correct.
(3) The correction ofthe amount due shows that the taxpayer has overpaid the tax.
(b) Initiated byTaxpayer. A taxpayer may request a refund of an overpayment made by the taxpayerby taking one of the following actions within the statute of limitations forobtaining a refund:
(1) Filing an amendedreturn reflecting an overpayment due the taxpayer.
(2) Filing a claim forrefund. The claim must identify the taxpayer, the type and amount of taxoverpaid, the filing period to which the overpayment applies, and the basis forthe claim. The taxpayer's statement of the basis of the claim does not limitthe taxpayer from changing the basis.
(c) Action on Request. When a taxpayer files an amended return or a claim for refund, the Departmentmust take one of the actions listed in this subsection within six months afterthe date the amended return or claim for refund is filed. If the Departmentdoes not take one of these actions within this time limit, the inaction isconsidered a proposed denial of the requested refund.
(1) Send the taxpayer arefund of the amount shown due on the amended return or claim for refund.
(2) Adjust the amount ofthe requested refund by increasing or decreasing the amount shown due on theamended return or claim for refund and send the taxpayer a refund of theadjusted amount. If the adjusted amount is less than the amount shown due onthe amended return or claim for refund, the adjusted refund must include areason for the adjustment. The adjusted refund is considered a notice ofproposed denial for the amount of the requested refund that is not included inthe adjusted refund.
(3) Deny the refund andsend the taxpayer a notice of proposed denial.
(4) Send the taxpayer aletter requesting additional information concerning the requested refund. If ataxpayer does not respond to a request for information, the Department may denythe refund and send the taxpayer a notice of proposed denial. If a taxpayerprovides the requested information, the Department must take one of the actionslisted in this subsection within the later of the following:
a. The remainder of thesix‑month period.
b. 30 days afterreceiving the information.
c. A time periodmutually agreed upon by the Department and the taxpayer.
(d) Notice. A noticeof a proposed denial of a request for refund must contain the followinginformation:
(1) The basis for theproposed denial. The statement of the basis of the denial does not limit theDepartment from changing the basis.
(2) The circumstancesunder which the proposed denial will become final.
(e) Restrictions. TheDepartment may not refund any of the following:
(1) Until a taxpayerfiles a final return for a tax period, an amount paid before the final returnis filed.
(2) An overpaymentsetoff under Chapter 105A, the Setoff Debt Collection Act, or under anothersetoff debt collection program authorized by law.
(3) An income taxoverpayment the taxpayer has elected to apply to another purpose as provided inthis Article.
(4) An individual incometax overpayment of less than one dollar ($1.00) or another tax overpayment ofless than three dollars ($3.00), unless the taxpayer files a written claim forthe refund.
(f) Effect of Denialor Refund. A proposed denial of a refund by the Secretary is presumed to becorrect. A refund does not absolve a taxpayer of a tax liability that may infact exist. The Secretary may propose an assessment for any deficiency asprovided in this Article. (2007‑491, s. 1.)
(a) Initiated byDepartment. The Department must refund an overpayment made by a taxpayer whenthe Department processes a return and finds all of the following:
(1) The statute oflimitations for obtaining a refund has not expired.
(2) The amount shown dueon the return is not correct.
(3) The correction ofthe amount due shows that the taxpayer has overpaid the tax.
(b) Initiated byTaxpayer. A taxpayer may request a refund of an overpayment made by the taxpayerby taking one of the following actions within the statute of limitations forobtaining a refund:
(1) Filing an amendedreturn reflecting an overpayment due the taxpayer.
(2) Filing a claim forrefund. The claim must identify the taxpayer, the type and amount of taxoverpaid, the filing period to which the overpayment applies, and the basis forthe claim. The taxpayer's statement of the basis of the claim does not limitthe taxpayer from changing the basis.
(c) Action on Request. When a taxpayer files an amended return or a claim for refund, the Departmentmust take one of the actions listed in this subsection within six months afterthe date the amended return or claim for refund is filed. If the Departmentdoes not take one of these actions within this time limit, the inaction isconsidered a proposed denial of the requested refund.
(1) Send the taxpayer arefund of the amount shown due on the amended return or claim for refund.
(2) Adjust the amount ofthe requested refund by increasing or decreasing the amount shown due on theamended return or claim for refund and send the taxpayer a refund of theadjusted amount. If the adjusted amount is less than the amount shown due onthe amended return or claim for refund, the adjusted refund must include areason for the adjustment. The adjusted refund is considered a notice ofproposed denial for the amount of the requested refund that is not included inthe adjusted refund.
(3) Deny the refund andsend the taxpayer a notice of proposed denial.
(4) Send the taxpayer aletter requesting additional information concerning the requested refund. If ataxpayer does not respond to a request for information, the Department may denythe refund and send the taxpayer a notice of proposed denial. If a taxpayerprovides the requested information, the Department must take one of the actionslisted in this subsection within the later of the following:
a. The remainder of thesix‑month period.
b. 30 days afterreceiving the information.
c. A time periodmutually agreed upon by the Department and the taxpayer.
(d) Notice. A noticeof a proposed denial of a request for refund must contain the followinginformation:
(1) The basis for theproposed denial. The statement of the basis of the denial does not limit theDepartment from changing the basis.
(2) The circumstancesunder which the proposed denial will become final.
(e) Restrictions. TheDepartment may not refund any of the following:
(1) Until a taxpayerfiles a final return for a tax period, an amount paid before the final returnis filed.
(2) An overpaymentsetoff under Chapter 105A, the Setoff Debt Collection Act, or under anothersetoff debt collection program authorized by law.
(3) An income taxoverpayment the taxpayer has elected to apply to another purpose as provided inthis Article.
(4) An individual incometax overpayment of less than one dollar ($1.00) or another tax overpayment ofless than three dollars ($3.00), unless the taxpayer files a written claim forthe refund.
(f) Effect of Denialor Refund. A proposed denial of a refund by the Secretary is presumed to becorrect. A refund does not absolve a taxpayer of a tax liability that may infact exist. The Secretary may propose an assessment for any deficiency asprovided in this Article. (2007‑491, s. 1.)
(a) Initiated byDepartment. The Department must refund an overpayment made by a taxpayer whenthe Department processes a return and finds all of the following:
(1) The statute oflimitations for obtaining a refund has not expired.
(2) The amount shown dueon the return is not correct.
(3) The correction ofthe amount due shows that the taxpayer has overpaid the tax.
(b) Initiated byTaxpayer. A taxpayer may request a refund of an overpayment made by the taxpayerby taking one of the following actions within the statute of limitations forobtaining a refund:
(1) Filing an amendedreturn reflecting an overpayment due the taxpayer.
(2) Filing a claim forrefund. The claim must identify the taxpayer, the type and amount of taxoverpaid, the filing period to which the overpayment applies, and the basis forthe claim. The taxpayer's statement of the basis of the claim does not limitthe taxpayer from changing the basis.
(c) Action on Request. When a taxpayer files an amended return or a claim for refund, the Departmentmust take one of the actions listed in this subsection within six months afterthe date the amended return or claim for refund is filed. If the Departmentdoes not take one of these actions within this time limit, the inaction isconsidered a proposed denial of the requested refund.
(1) Send the taxpayer arefund of the amount shown due on the amended return or claim for refund.
(2) Adjust the amount ofthe requested refund by increasing or decreasing the amount shown due on theamended return or claim for refund and send the taxpayer a refund of theadjusted amount. If the adjusted amount is less than the amount shown due onthe amended return or claim for refund, the adjusted refund must include areason for the adjustment. The adjusted refund is considered a notice ofproposed denial for the amount of the requested refund that is not included inthe adjusted refund.
(3) Deny the refund andsend the taxpayer a notice of proposed denial.
(4) Send the taxpayer aletter requesting additional information concerning the requested refund. If ataxpayer does not respond to a request for information, the Department may denythe refund and send the taxpayer a notice of proposed denial. If a taxpayerprovides the requested information, the Department must take one of the actionslisted in this subsection within the later of the following:
a. The remainder of thesix‑month period.
b. 30 days afterreceiving the information.
c. A time periodmutually agreed upon by the Department and the taxpayer.
(d) Notice. A noticeof a proposed denial of a request for refund must contain the followinginformation:
(1) The basis for theproposed denial. The statement of the basis of the denial does not limit theDepartment from changing the basis.
(2) The circumstancesunder which the proposed denial will become final.
(e) Restrictions. TheDepartment may not refund any of the following:
(1) Until a taxpayerfiles a final return for a tax period, an amount paid before the final returnis filed.
(2) An overpaymentsetoff under Chapter 105A, the Setoff Debt Collection Act, or under anothersetoff debt collection program authorized by law.
(3) An income taxoverpayment the taxpayer has elected to apply to another purpose as provided inthis Article.
(4) An individual incometax overpayment of less than one dollar ($1.00) or another tax overpayment ofless than three dollars ($3.00), unless the taxpayer files a written claim forthe refund.
(f) Effect of Denialor Refund. A proposed denial of a refund by the Secretary is presumed to becorrect. A refund does not absolve a taxpayer of a tax liability that may infact exist. The Secretary may propose an assessment for any deficiency asprovided in this Article. (2007‑491, s. 1.)
