CHAPTER 9. REFUNDS
IC 6-8.1-9
Chapter 9. Refunds
IC 6-8.1-9-1
Filing of claim; time limitation; considerations and hearing;decision; appeal
Sec. 1. (a) If a person has paid more tax than the persondetermines is legally due for a particular taxable period, the personmay file a claim for a refund with the department. Except as providedin subsections (f) and (g), in order to obtain the refund, the personmust file the claim with the department within three (3) years afterthe latter of the following:
(1) The due date of the return.
(2) The date of payment.
For purposes of this section, the due date for a return filed for thestate gross retail or use tax, the gasoline tax, the special fuel tax, themotor carrier fuel tax, the oil inspection fee, or the petroleumseverance tax is the end of the calendar year which contains thetaxable period for which the return is filed. The claim must set forththe amount of the refund to which the person is entitled and thereasons that the person is entitled to the refund.
(b) When the department receives a claim for refund, thedepartment shall consider the claim for refund and shall, if thetaxpayer requests, hold a hearing on the claim for refund to obtainand consider additional evidence. After considering the claim and allevidence relevant to the claim, the department shall issue a decisionon the claim, stating the part, if any, of the refund allowed andcontaining a statement of the reasons for any part of the refund thatis denied. The department shall mail a copy of the decision to theperson who filed the claim. If the department allows the full amountof the refund claim, a warrant for the payment of the claim issufficient notice of the decision.
(c) If the person disagrees with any part of the department'sdecision, the person may appeal the decision, regardless of whetheror not the person protested the tax payment or whether or not theperson has accepted a refund. The person must file the appeal withthe tax court. The tax court does not have jurisdiction to hear arefund appeal suit, if:
(1) the appeal is filed more than three (3) years after the datethe claim for refund was filed with the department;
(2) the appeal is filed more than ninety (90) days after the datethe department mails the decision of denial to the person; or
(3) the appeal is filed both before the decision is issued andbefore the one hundred eighty-first day after the date the personfiles the claim for refund with the department.
(d) The tax court shall hear the appeal de novo and without a jury,and after the hearing may order or deny any part of the appealedrefund. The court may assess the court costs in any manner that itfeels is equitable. The court may enjoin the collection of any of thelisted taxes under IC 33-26-6-2. The court may also allow a refund
of taxes, interest, and penalties that have been paid to and collectedby the department.
(e) With respect to the motor vehicle excise tax, this sectionapplies only to penalties and interest paid on assessments of themotor vehicle excise tax. Any other overpayment of the motorvehicle excise tax is subject to IC 6-6-5.
(f) If a taxpayer's federal income tax liability for a taxable year ismodified by the Internal Revenue Service, and the modificationwould result in a reduction of the tax legally due, the due date bywhich the taxpayer must file a claim for refund with the departmentis the later of:
(1) the date determined under subsection (a); or
(2) the date that is six (6) months after the date on which thetaxpayer is notified of the modification by the Internal RevenueService.
(g) If an agreement to extend the assessment time period isentered into under IC 6-8.1-5-2(h), the period during which a personmay file a claim for a refund under subsection (a) is extended to thesame date to which the assessment time period is extended.
As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.291-1985,SEC.12; P.L.335-1989(ss), SEC.22; P.L.71-1993, SEC.25;P.L.119-1998, SEC.19; P.L.98-2004, SEC.74; P.L.2-2005, SEC.22;P.L.211-2007, SEC.42; P.L.131-2008, SEC.30; P.L.182-2009(ss),SEC.256.
IC 6-8.1-9-1.2
Filing fee refund
Sec. 1.2. Notwithstanding section 1(d) of this chapter, if ataxpayer prevails in a complaint that is placed on the small claimsdocket under IC 33-26-5, the tax court shall order the refund of thetaxpayer's filing fee under IC 33-26-9-1 from the state general fund.
As added by P.L.100-1989, SEC.1. Amended by P.L.98-2004,SEC.75.
IC 6-8.1-9-2
Excess tax payments; procedure for credit or refund; pass throughentities
Sec. 2. (a) If the department finds that a person has paid more taxfor a taxable year than is legally due, the department shall apply theamount of the excess against any amount of that same tax that isassessed and is currently due. The department may then apply anyremaining excess against any of the listed taxes that have beenassessed against the person and that are currently due. Subject tosubsection (c), if any excess remains after the department has appliedthe overpayment against the person's tax liabilities, the departmentshall either refund the amount to the person or, at the person'srequest, credit the amount to the person's future tax liabilities.
(b) Subject to subsection (c), if a court determines that a personhas paid more tax for a taxable year than is legally due, thedepartment shall refund the excess amount to the person. (c) As used in this subsection, "pass through entity"means acorporation that is exempt from the adjusted gross income tax underIC 6-3-2-2.8(2), a partnership, a limited liability company, or alimited liability partnership and "pass through income" means aperson's distributive share of adjusted gross income for a taxable yearattributable to the person's interest in a pass through entity. Thissubsection applies to a person's overpayment of adjusted grossincome tax for a taxable year if:
(1) the person has filed a timely claim for refund with respectto the overpayment under IC 6-8.1-9-1;
(2) the overpayment:
(A) is with respect to a taxable year beginning beforeJanuary 1, 2009;
(B) is attributable to amounts paid to the department by:
(i) a nonresident shareholder, partner, or member of a passthrough entity;
(ii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13on behalf of a nonresident shareholder, partner, or memberof the pass through entity; or
(iii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13on behalf of a nonresident shareholder, partner, or memberof another pass through entity; and
(3) the overpayment arises from a determination by thedepartment or a court that the person's pass through income isnot includible in the person's adjusted gross income derivedfrom sources within Indiana as a result of the application ofIC 6-3-2-2(a)(5) and IC 6-3-2-2.2(g).
The department shall apply the overpayment to the person's liabilityfor taxes that have been assessed and are currently due as providedin subsection (a) and apply any remaining overpayment as a credit orcredits in satisfaction of the person's liability for listed taxes intaxable years beginning after December 31, 2008. If the person,including any successor to the person's interest in the overpayment,does not have sufficient liability for listed taxes against which tocredit all the remaining overpayment in a taxable year beginningafter December 31, 2008, and ending before January 1, 2019, thetaxpayer is not entitled for any taxable year ending after December31, 2018, to have any part of the remaining overpayment applied,refunded, or credited to the person's liability for listed taxes. If anoverpayment or part of an overpayment is required to be applied asa credit under this subsection to the person's liability for listed taxesfor a taxable year beginning after December 31, 2008, and has notbeen determined by the department or a court to meet the conditionsof subdivision (3) by the due date of the person's return for a listedtax for a taxable year beginning after December 31, 2008, thedepartment shall refund to the person that part of the overpaymentthat should have been applied as a credit for such taxable year withinninety (90) days of the date that the department or a court makes thedetermination that the overpayment meets the conditions ofsubdivision (3). However, the department may establish a program
to refund small overpayment amounts that do not exceed thethreshold dollar value established by the department rather thancrediting the amounts against tax liability accruing for a taxable yearafter December 31, 2008. A person that receives a refund or creditunder this subsection shall file a report with the department in theform and in the schedule specified by the department that identifiesunder penalties of perjury the home state or other jurisdiction wherethe income subject to the refund or credit was reported as incomeattributable to that state or jurisdiction.
(d) An excess tax payment that is not refunded or credited againsta current or future tax liability within ninety (90) days after the datethe refund claim is filed, the date the tax payment was due, or thedate the tax was paid, whichever is latest, accrues interest from thedate the refund claim is filed at the rate established underIC 6-8.1-10-1 until a date, determined by the department, that doesnot precede by more than thirty (30) days, the date on which therefund or credit is made. As used in this subsection, "refund claim"includes an amended return that indicates an overpayment of tax.
As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.6-1987,SEC.13; P.L.92-1987, SEC.11; P.L.48-1994, SEC.2; P.L.28-1997,SEC.27; P.L.111-2006, SEC.10; P.L.182-2009(ss), SEC.257.
IC 6-8.1-9-3
Gasoline, special fuel, and motor vehicle excise taxes;inapplicability
Sec. 3. This chapter does not apply to refund claims made forgasoline taxes under IC 6-6-1.1, special fuel taxes under IC 6-6-2.5,or the motor vehicle excise tax (excluding interest and penalties)under IC 6-6-5.
As added by Acts 1980, P.L.61, SEC.1. Amended by Acts 1981,P.L.93, SEC.10; Acts 1982, P.L.59, SEC.5; P.L.335-1989(ss),SEC.23; P.L.277-1993(ss), SEC.53; P.L.111-2006, SEC.11.
IC 6-8.1-9-4
Designation of all or part of refund to be paid to nongame fund
Sec. 4. (a) Every individual (other than a nonresident) who filesan individual income tax return and who is entitled to a refund fromthe Indiana department of revenue because of the overpayment ofincome tax for a taxable year may designate on his annual stateincome tax return that either a specific amount or all of the refund towhich he is entitled shall be paid over to the nongame fund. In theevent that the individual designates that a certain amount shall bepaid over to the nongame fund and the refund to which he is entitledis less than the amount designated, such designation shall mean thatall of the refund to which he is entitled shall be paid over to thenongame fund.
(b) Every husband and wife (other than nonresidents) who file ajoint income tax return and who are entitled to a refund from theIndiana department of revenue because of the overpayment ofincome tax for a taxable year may designate on their annual state
income tax return that either a specific amount or all of the refund towhich they are entitled shall be paid over to the nongame fund. In theevent that the husband and wife designate that a certain amount shallbe paid over to the nongame fund and the refund to which they areentitled is less than the amount designated, such designation shallmean that all of the refund to which they are entitled shall be paidover to the nongame fund.
(c) The instructions for the preparation of individual income taxreturns shall contain a description of the purposes of the nongameand endangered species program which is written in cooperation withthe department of natural resources.
As added by Acts 1982, P.L.66, SEC.1.
IC 6-8.1-9-5
Reserved
IC 6-8.1-9-6
Reserved
IC 6-8.1-9-7
Class actions; requisites; time limits
Sec. 7. A class action for the refund of a tax subject to this chaptermay not be maintained in any court, including the Indiana tax court,on behalf of any person who has not complied with the requirementsof section 1(a) of this chapter before the certification of the class. Arefund of taxes to a member of a class in a class action is subject tothe time limits set forth in section 1(a) of this chapter based on thetime the class member filed the required claim for refund with thedepartment.
As added by P.L.91-1989, SEC.2.
IC 6-8.1-9-8
Reserved
IC 6-8.1-9-9
Reserved
IC 6-8.1-9-10
Reserved
IC 6-8.1-9-11
Reserved
IC 6-8.1-9-12
Reserved
IC 6-8.1-9-13
Reserved
IC 6-8.1-9-14 Department centralized debt collection program for state agencies;fee for service; procedures; commissioner report
Sec. 14. (a) Except as provided in subsection (n), the departmentshall establish, administer, and make available a centralized debtcollection program for use by state agencies to collect delinquentaccounts, charges, fees, loans, taxes, or other indebtedness owed toor being collected by state agencies. The department's collectionfacilities shall be available for use by other state agencies only whenresources are available to the department.
(b) The commissioner shall prescribe the appropriate form andmanner in which collection information is to be submitted to thedepartment.
(c) The debt must be delinquent and not subject to litigation,claim, appeal, or review under the appropriate remedies of a stateagency.
(d) The department has the authority to collect for the state orclaimant agency (as defined in IC 6-8.1-9.5-1) delinquent accounts,charges, fees, loans, taxes, or other indebtedness due the state orclaimant agency that has a formal agreement with the department forcentral debt collection.
(e) The formal agreement must provide that the informationprovided to the department be sufficient to establish the obligationin court and to render the agreement as a legal judgment on behalf ofthe state. After transferring a file for collection to the department forcollection, the claimant agency shall terminate all collectionprocedures and be available to provide assistance to the department.Upon receipt of a file for collection, the department shall complywith all applicable state and federal laws governing collection of thedebt.
(f) The department may use a claimant agency's statutoryauthority to collect the claimant agency's delinquent accounts,charges, fees, loans, taxes, or other indebtedness owed to theclaimant agency.
(g) The department's right to credit against taxes due may not beimpaired by any right granted the department or other state agencyunder this section.
(h) The department of state revenue may charge the claimantagency a fee not to exceed fifteen percent (15%) of any funds thedepartment collects for a claimant agency. Notwithstanding any lawconcerning delinquent accounts, charges, fees, loans, taxes, or otherindebtedness, the fifteen percent (15%) fee shall be added to theamount due to the state or claimant agency when the collection ismade.
(i) Fees collected under subsection (h) shall be retained by thedepartment after the debt is collected for the claimant agency and areappropriated to the department for use by the department inadministering this section.
(j) The department shall transfer any funds collected from adebtor to the claimant agency within thirty (30) days after the end ofthe month in which the funds were collected. (k) When a claimant agency requests collection by thedepartment, the claimant agency shall provide the department with:
(1) the full name;
(2) the Social Security number or federal identification number,or both;
(3) the last known mailing address; and
(4) additional information that the department may request;
concerning the debtor.
(l) The department shall establish a minimum amount that thedepartment will attempt to collect for the claimant agency.
(m) The commissioner shall report, not later than March 1 for theprevious calendar year, to the governor, the budget director, and thelegislative council concerning the implementation of the centralizeddebt collection program, the number of debts, the dollar amounts ofdebts collected, and an estimate of the future costs and benefits thatmay be associated with the collection program. A report to thelegislative council under this subsection must be in an electronicformat under IC 5-14-6.
(n) The department may not assess a fee to a state agency or acustodial parent for seeking a setoff to a state or federal income taxrefund for past due child support.
As added by P.L.178-2002, SEC.73. Amended by P.L.28-2004,SEC.67; P.L.103-2007, SEC.3.