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 person
determines is legally due for a particular taxable period, the person
may file a claim for a refund with the department. Except as provided
in subsections (f) and (g), in order to obtain the refund, the person
must file the claim with the department within three (3) years after
the 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 the
state gross retail or use tax, the gasoline tax, the special fuel tax, the
motor carrier fuel tax, the oil inspection fee, or the petroleum
severance tax is the end of the calendar year which contains the
taxable period for which the return is filed. The claim must set forth
the amount of the refund to which the person is entitled and the
reasons that the person is entitled to the refund.
(b) When the department receives a claim for refund, the
department shall consider the claim for refund and shall, if the
taxpayer requests, hold a hearing on the claim for refund to obtain
and consider additional evidence. After considering the claim and all
evidence relevant to the claim, the department shall issue a decision
on the claim, stating the part, if any, of the refund allowed and
containing a statement of the reasons for any part of the refund that
is denied. The department shall mail a copy of the decision to the
person who filed the claim. If the department allows the full amount
of the refund claim, a warrant for the payment of the claim is
sufficient notice of the decision.
(c) If the person disagrees with any part of the department's
decision, the person may appeal the decision, regardless of whether
or not the person protested the tax payment or whether or not the
person has accepted a refund. The person must file the appeal with
the tax court. The tax court does not have jurisdiction to hear a
refund appeal suit, if:
(1) the appeal is filed more than three (3) years after the date
the claim for refund was filed with the department;
(2) the appeal is filed more than ninety (90) days after the date
the department mails the decision of denial to the person; or
(3) the appeal is filed both before the decision is issued and
before the one hundred eighty-first day after the date the person
files 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 appealed
refund. The court may assess the court costs in any manner that it
feels is equitable. The court may enjoin the collection of any of the
listed 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 collected
by the department.
(e) With respect to the motor vehicle excise tax, this section
applies only to penalties and interest paid on assessments of the
motor vehicle excise tax. Any other overpayment of the motor
vehicle excise tax is subject to IC 6-6-5.
(f) If a taxpayer's federal income tax liability for a taxable year is
modified by the Internal Revenue Service, and the modification
would result in a reduction of the tax legally due, the due date by
which the taxpayer must file a claim for refund with the department
is the later of:
(1) the date determined under subsection (a); or
(2) the date that is six (6) months after the date on which the
taxpayer is notified of the modification by the Internal Revenue
Service.
(g) If an agreement to extend the assessment time period is
entered into under IC 6-8.1-5-2(h), the period during which a person
may file a claim for a refund under subsection (a) is extended to the
same 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 a
taxpayer prevails in a complaint that is placed on the small claims
docket under IC 33-26-5, the tax court shall order the refund of the
taxpayer'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 through
entities
Sec. 2. (a) If the department finds that a person has paid more tax
for a taxable year than is legally due, the department shall apply the
amount of the excess against any amount of that same tax that is
assessed and is currently due. The department may then apply any
remaining excess against any of the listed taxes that have been
assessed against the person and that are currently due. Subject to
subsection (c), if any excess remains after the department has applied
the overpayment against the person's tax liabilities, the department
shall either refund the amount to the person or, at the person's
request, credit the amount to the person's future tax liabilities.
(b) Subject to subsection (c), if a court determines that a person
has paid more tax for a taxable year than is legally due, the
department shall refund the excess amount to the person.
(c) As used in this subsection, "pass through entity"means a
corporation that is exempt from the adjusted gross income tax under
IC 6-3-2-2.8(2), a partnership, a limited liability company, or a
limited liability partnership and "pass through income" means a
person's distributive share of adjusted gross income for a taxable year
attributable to the person's interest in a pass through entity. This
subsection applies to a person's overpayment of adjusted gross
income tax for a taxable year if:
(1) the person has filed a timely claim for refund with respect
to the overpayment under IC 6-8.1-9-1;
(2) the overpayment:
(A) is with respect to a taxable year beginning before
January 1, 2009;
(B) is attributable to amounts paid to the department by:
(i) a nonresident shareholder, partner, or member of a pass
through entity;
(ii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13
on behalf of a nonresident shareholder, partner, or member
of the pass through entity; or
(iii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13
on behalf of a nonresident shareholder, partner, or member
of another pass through entity; and
(3) the overpayment arises from a determination by the
department or a court that the person's pass through income is
not includible in the person's adjusted gross income derived
from sources within Indiana as a result of the application of
IC 6-3-2-2(a)(5) and IC 6-3-2-2.2(g).
The department shall apply the overpayment to the person's liability
for taxes that have been assessed and are currently due as provided
in subsection (a) and apply any remaining overpayment as a credit or
credits in satisfaction of the person's liability for listed taxes in
taxable 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 to
credit all the remaining overpayment in a taxable year beginning
after December 31, 2008, and ending before January 1, 2019, the
taxpayer is not entitled for any taxable year ending after December
31, 2018, to have any part of the remaining overpayment applied,
refunded, or credited to the person's liability for listed taxes. If an
overpayment or part of an overpayment is required to be applied as
a credit under this subsection to the person's liability for listed taxes
for a taxable year beginning after December 31, 2008, and has not
been determined by the department or a court to meet the conditions
of subdivision (3) by the due date of the person's return for a listed
tax for a taxable year beginning after December 31, 2008, the
department shall refund to the person that part of the overpayment
that should have been applied as a credit for such taxable year within
ninety (90) days of the date that the department or a court makes the
determination that the overpayment meets the conditions of
subdivision (3). However, the department may establish a program
to refund small overpayment amounts that do not exceed the
threshold dollar value established by the department rather than
crediting the amounts against tax liability accruing for a taxable year
after December 31, 2008. A person that receives a refund or credit
under this subsection shall file a report with the department in the
form and in the schedule specified by the department that identifies
under penalties of perjury the home state or other jurisdiction where
the income subject to the refund or credit was reported as income
attributable to that state or jurisdiction.
(d) An excess tax payment that is not refunded or credited against
a current or future tax liability within ninety (90) days after the date
the refund claim is filed, the date the tax payment was due, or the
date the tax was paid, whichever is latest, accrues interest from the
date the refund claim is filed at the rate established under
IC 6-8.1-10-1 until a date, determined by the department, that does
not precede by more than thirty (30) days, the date on which the
refund 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 for
gasoline 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 files
an individual income tax return and who is entitled to a refund from
the Indiana department of revenue because of the overpayment of
income tax for a taxable year may designate on his annual state
income tax return that either a specific amount or all of the refund to
which he is entitled shall be paid over to the nongame fund. In the
event that the individual designates that a certain amount shall be
paid over to the nongame fund and the refund to which he is entitled
is less than the amount designated, such designation shall mean that
all of the refund to which he is entitled shall be paid over to the
nongame fund.
(b) Every husband and wife (other than nonresidents) who file a
joint income tax return and who are entitled to a refund from the
Indiana department of revenue because of the overpayment of
income tax for a taxable year may designate on their annual state
income tax return that either a specific amount or all of the refund to
which they are entitled shall be paid over to the nongame fund. In the
event that the husband and wife designate that a certain amount shall
be paid over to the nongame fund and the refund to which they are
entitled is less than the amount designated, such designation shall
mean that all of the refund to which they are entitled shall be paid
over to the nongame fund.
(c) The instructions for the preparation of individual income tax
returns shall contain a description of the purposes of the nongame
and endangered species program which is written in cooperation with
the 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 chapter
may not be maintained in any court, including the Indiana tax court,
on behalf of any person who has not complied with the requirements
of section 1(a) of this chapter before the certification of the class. A
refund of taxes to a member of a class in a class action is subject to
the time limits set forth in section 1(a) of this chapter based on the
time the class member filed the required claim for refund with the
department. 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 department
shall establish, administer, and make available a centralized debt
collection program for use by state agencies to collect delinquent
accounts, charges, fees, loans, taxes, or other indebtedness owed to
or being collected by state agencies. The department's collection
facilities shall be available for use by other state agencies only when
resources are available to the department.
(b) The commissioner shall prescribe the appropriate form and
manner in which collection information is to be submitted to the
department.
(c) The debt must be delinquent and not subject to litigation,
claim, appeal, or review under the appropriate remedies of a state
agency.
(d) The department has the authority to collect for the state or
claimant agency (as defined in IC 6-8.1-9.5-1) delinquent accounts,
charges, fees, loans, taxes, or other indebtedness due the state or
claimant agency that has a formal agreement with the department for
central debt collection.
(e) The formal agreement must provide that the information
provided to the department be sufficient to establish the obligation
in court and to render the agreement as a legal judgment on behalf of
the state. After transferring a file for collection to the department for
collection, the claimant agency shall terminate all collection
procedures and be available to provide assistance to the department.
Upon receipt of a file for collection, the department shall comply
with all applicable state and federal laws governing collection of the
debt.
(f) The department may use a claimant agency's statutory
authority to collect the claimant agency's delinquent accounts,
charges, fees, loans, taxes, or other indebtedness owed to the
claimant agency.
(g) The department's right to credit against taxes due may not be
impaired by any right granted the department or other state agency
under this section.
(h) The department of state revenue may charge the claimant
agency a fee not to exceed fifteen percent (15%) of any funds the
department collects for a claimant agency. Notwithstanding any law
concerning delinquent accounts, charges, fees, loans, taxes, or other
indebtedness, the fifteen percent (15%) fee shall be added to the
amount due to the state or claimant agency when the collection is
made.
(i) Fees collected under subsection (h) shall be retained by the
department after the debt is collected for the claimant agency and are
appropriated to the department for use by the department in
administering this section.
(j) The department shall transfer any funds collected from a
debtor to the claimant agency within thirty (30) days after the end of
the month in which the funds were collected.
(k) When a claimant agency requests collection by the
department, 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 the
department will attempt to collect for the claimant agency.
(m) The commissioner shall report, not later than March 1 for the
previous calendar year, to the governor, the budget director, and the
legislative council concerning the implementation of the centralized
debt collection program, the number of debts, the dollar amounts of
debts collected, and an estimate of the future costs and benefits that
may be associated with the collection program. A report to the
legislative council under this subsection must be in an electronic
format under IC 5-14-6.
(n) The department may not assess a fee to a state agency or a
custodial parent for seeking a setoff to a state or federal income tax
refund 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.
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 person
determines is legally due for a particular taxable period, the person
may file a claim for a refund with the department. Except as provided
in subsections (f) and (g), in order to obtain the refund, the person
must file the claim with the department within three (3) years after
the 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 the
state gross retail or use tax, the gasoline tax, the special fuel tax, the
motor carrier fuel tax, the oil inspection fee, or the petroleum
severance tax is the end of the calendar year which contains the
taxable period for which the return is filed. The claim must set forth
the amount of the refund to which the person is entitled and the
reasons that the person is entitled to the refund.
(b) When the department receives a claim for refund, the
department shall consider the claim for refund and shall, if the
taxpayer requests, hold a hearing on the claim for refund to obtain
and consider additional evidence. After considering the claim and all
evidence relevant to the claim, the department shall issue a decision
on the claim, stating the part, if any, of the refund allowed and
containing a statement of the reasons for any part of the refund that
is denied. The department shall mail a copy of the decision to the
person who filed the claim. If the department allows the full amount
of the refund claim, a warrant for the payment of the claim is
sufficient notice of the decision.
(c) If the person disagrees with any part of the department's
decision, the person may appeal the decision, regardless of whether
or not the person protested the tax payment or whether or not the
person has accepted a refund. The person must file the appeal with
the tax court. The tax court does not have jurisdiction to hear a
refund appeal suit, if:
(1) the appeal is filed more than three (3) years after the date
the claim for refund was filed with the department;
(2) the appeal is filed more than ninety (90) days after the date
the department mails the decision of denial to the person; or
(3) the appeal is filed both before the decision is issued and
before the one hundred eighty-first day after the date the person
files 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 appealed
refund. The court may assess the court costs in any manner that it
feels is equitable. The court may enjoin the collection of any of the
listed 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 collected
by the department.
(e) With respect to the motor vehicle excise tax, this section
applies only to penalties and interest paid on assessments of the
motor vehicle excise tax. Any other overpayment of the motor
vehicle excise tax is subject to IC 6-6-5.
(f) If a taxpayer's federal income tax liability for a taxable year is
modified by the Internal Revenue Service, and the modification
would result in a reduction of the tax legally due, the due date by
which the taxpayer must file a claim for refund with the department
is the later of:
(1) the date determined under subsection (a); or
(2) the date that is six (6) months after the date on which the
taxpayer is notified of the modification by the Internal Revenue
Service.
(g) If an agreement to extend the assessment time period is
entered into under IC 6-8.1-5-2(h), the period during which a person
may file a claim for a refund under subsection (a) is extended to the
same 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 a
taxpayer prevails in a complaint that is placed on the small claims
docket under IC 33-26-5, the tax court shall order the refund of the
taxpayer'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 through
entities
Sec. 2. (a) If the department finds that a person has paid more tax
for a taxable year than is legally due, the department shall apply the
amount of the excess against any amount of that same tax that is
assessed and is currently due. The department may then apply any
remaining excess against any of the listed taxes that have been
assessed against the person and that are currently due. Subject to
subsection (c), if any excess remains after the department has applied
the overpayment against the person's tax liabilities, the department
shall either refund the amount to the person or, at the person's
request, credit the amount to the person's future tax liabilities.
(b) Subject to subsection (c), if a court determines that a person
has paid more tax for a taxable year than is legally due, the
department shall refund the excess amount to the person.
(c) As used in this subsection, "pass through entity"means a
corporation that is exempt from the adjusted gross income tax under
IC 6-3-2-2.8(2), a partnership, a limited liability company, or a
limited liability partnership and "pass through income" means a
person's distributive share of adjusted gross income for a taxable year
attributable to the person's interest in a pass through entity. This
subsection applies to a person's overpayment of adjusted gross
income tax for a taxable year if:
(1) the person has filed a timely claim for refund with respect
to the overpayment under IC 6-8.1-9-1;
(2) the overpayment:
(A) is with respect to a taxable year beginning before
January 1, 2009;
(B) is attributable to amounts paid to the department by:
(i) a nonresident shareholder, partner, or member of a pass
through entity;
(ii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13
on behalf of a nonresident shareholder, partner, or member
of the pass through entity; or
(iii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13
on behalf of a nonresident shareholder, partner, or member
of another pass through entity; and
(3) the overpayment arises from a determination by the
department or a court that the person's pass through income is
not includible in the person's adjusted gross income derived
from sources within Indiana as a result of the application of
IC 6-3-2-2(a)(5) and IC 6-3-2-2.2(g).
The department shall apply the overpayment to the person's liability
for taxes that have been assessed and are currently due as provided
in subsection (a) and apply any remaining overpayment as a credit or
credits in satisfaction of the person's liability for listed taxes in
taxable 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 to
credit all the remaining overpayment in a taxable year beginning
after December 31, 2008, and ending before January 1, 2019, the
taxpayer is not entitled for any taxable year ending after December
31, 2018, to have any part of the remaining overpayment applied,
refunded, or credited to the person's liability for listed taxes. If an
overpayment or part of an overpayment is required to be applied as
a credit under this subsection to the person's liability for listed taxes
for a taxable year beginning after December 31, 2008, and has not
been determined by the department or a court to meet the conditions
of subdivision (3) by the due date of the person's return for a listed
tax for a taxable year beginning after December 31, 2008, the
department shall refund to the person that part of the overpayment
that should have been applied as a credit for such taxable year within
ninety (90) days of the date that the department or a court makes the
determination that the overpayment meets the conditions of
subdivision (3). However, the department may establish a program
to refund small overpayment amounts that do not exceed the
threshold dollar value established by the department rather than
crediting the amounts against tax liability accruing for a taxable year
after December 31, 2008. A person that receives a refund or credit
under this subsection shall file a report with the department in the
form and in the schedule specified by the department that identifies
under penalties of perjury the home state or other jurisdiction where
the income subject to the refund or credit was reported as income
attributable to that state or jurisdiction.
(d) An excess tax payment that is not refunded or credited against
a current or future tax liability within ninety (90) days after the date
the refund claim is filed, the date the tax payment was due, or the
date the tax was paid, whichever is latest, accrues interest from the
date the refund claim is filed at the rate established under
IC 6-8.1-10-1 until a date, determined by the department, that does
not precede by more than thirty (30) days, the date on which the
refund 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 for
gasoline 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 files
an individual income tax return and who is entitled to a refund from
the Indiana department of revenue because of the overpayment of
income tax for a taxable year may designate on his annual state
income tax return that either a specific amount or all of the refund to
which he is entitled shall be paid over to the nongame fund. In the
event that the individual designates that a certain amount shall be
paid over to the nongame fund and the refund to which he is entitled
is less than the amount designated, such designation shall mean that
all of the refund to which he is entitled shall be paid over to the
nongame fund.
(b) Every husband and wife (other than nonresidents) who file a
joint income tax return and who are entitled to a refund from the
Indiana department of revenue because of the overpayment of
income tax for a taxable year may designate on their annual state
income tax return that either a specific amount or all of the refund to
which they are entitled shall be paid over to the nongame fund. In the
event that the husband and wife designate that a certain amount shall
be paid over to the nongame fund and the refund to which they are
entitled is less than the amount designated, such designation shall
mean that all of the refund to which they are entitled shall be paid
over to the nongame fund.
(c) The instructions for the preparation of individual income tax
returns shall contain a description of the purposes of the nongame
and endangered species program which is written in cooperation with
the 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 chapter
may not be maintained in any court, including the Indiana tax court,
on behalf of any person who has not complied with the requirements
of section 1(a) of this chapter before the certification of the class. A
refund of taxes to a member of a class in a class action is subject to
the time limits set forth in section 1(a) of this chapter based on the
time the class member filed the required claim for refund with the
department. 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 department
shall establish, administer, and make available a centralized debt
collection program for use by state agencies to collect delinquent
accounts, charges, fees, loans, taxes, or other indebtedness owed to
or being collected by state agencies. The department's collection
facilities shall be available for use by other state agencies only when
resources are available to the department.
(b) The commissioner shall prescribe the appropriate form and
manner in which collection information is to be submitted to the
department.
(c) The debt must be delinquent and not subject to litigation,
claim, appeal, or review under the appropriate remedies of a state
agency.
(d) The department has the authority to collect for the state or
claimant agency (as defined in IC 6-8.1-9.5-1) delinquent accounts,
charges, fees, loans, taxes, or other indebtedness due the state or
claimant agency that has a formal agreement with the department for
central debt collection.
(e) The formal agreement must provide that the information
provided to the department be sufficient to establish the obligation
in court and to render the agreement as a legal judgment on behalf of
the state. After transferring a file for collection to the department for
collection, the claimant agency shall terminate all collection
procedures and be available to provide assistance to the department.
Upon receipt of a file for collection, the department shall comply
with all applicable state and federal laws governing collection of the
debt.
(f) The department may use a claimant agency's statutory
authority to collect the claimant agency's delinquent accounts,
charges, fees, loans, taxes, or other indebtedness owed to the
claimant agency.
(g) The department's right to credit against taxes due may not be
impaired by any right granted the department or other state agency
under this section.
(h) The department of state revenue may charge the claimant
agency a fee not to exceed fifteen percent (15%) of any funds the
department collects for a claimant agency. Notwithstanding any law
concerning delinquent accounts, charges, fees, loans, taxes, or other
indebtedness, the fifteen percent (15%) fee shall be added to the
amount due to the state or claimant agency when the collection is
made.
(i) Fees collected under subsection (h) shall be retained by the
department after the debt is collected for the claimant agency and are
appropriated to the department for use by the department in
administering this section.
(j) The department shall transfer any funds collected from a
debtor to the claimant agency within thirty (30) days after the end of
the month in which the funds were collected.
(k) When a claimant agency requests collection by the
department, 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 the
department will attempt to collect for the claimant agency.
(m) The commissioner shall report, not later than March 1 for the
previous calendar year, to the governor, the budget director, and the
legislative council concerning the implementation of the centralized
debt collection program, the number of debts, the dollar amounts of
debts collected, and an estimate of the future costs and benefits that
may be associated with the collection program. A report to the
legislative council under this subsection must be in an electronic
format under IC 5-14-6.
(n) The department may not assess a fee to a state agency or a
custodial parent for seeking a setoff to a state or federal income tax
refund 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.
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 person
determines is legally due for a particular taxable period, the person
may file a claim for a refund with the department. Except as provided
in subsections (f) and (g), in order to obtain the refund, the person
must file the claim with the department within three (3) years after
the 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 the
state gross retail or use tax, the gasoline tax, the special fuel tax, the
motor carrier fuel tax, the oil inspection fee, or the petroleum
severance tax is the end of the calendar year which contains the
taxable period for which the return is filed. The claim must set forth
the amount of the refund to which the person is entitled and the
reasons that the person is entitled to the refund.
(b) When the department receives a claim for refund, the
department shall consider the claim for refund and shall, if the
taxpayer requests, hold a hearing on the claim for refund to obtain
and consider additional evidence. After considering the claim and all
evidence relevant to the claim, the department shall issue a decision
on the claim, stating the part, if any, of the refund allowed and
containing a statement of the reasons for any part of the refund that
is denied. The department shall mail a copy of the decision to the
person who filed the claim. If the department allows the full amount
of the refund claim, a warrant for the payment of the claim is
sufficient notice of the decision.
(c) If the person disagrees with any part of the department's
decision, the person may appeal the decision, regardless of whether
or not the person protested the tax payment or whether or not the
person has accepted a refund. The person must file the appeal with
the tax court. The tax court does not have jurisdiction to hear a
refund appeal suit, if:
(1) the appeal is filed more than three (3) years after the date
the claim for refund was filed with the department;
(2) the appeal is filed more than ninety (90) days after the date
the department mails the decision of denial to the person; or
(3) the appeal is filed both before the decision is issued and
before the one hundred eighty-first day after the date the person
files 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 appealed
refund. The court may assess the court costs in any manner that it
feels is equitable. The court may enjoin the collection of any of the
listed 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 collected
by the department.
(e) With respect to the motor vehicle excise tax, this section
applies only to penalties and interest paid on assessments of the
motor vehicle excise tax. Any other overpayment of the motor
vehicle excise tax is subject to IC 6-6-5.
(f) If a taxpayer's federal income tax liability for a taxable year is
modified by the Internal Revenue Service, and the modification
would result in a reduction of the tax legally due, the due date by
which the taxpayer must file a claim for refund with the department
is the later of:
(1) the date determined under subsection (a); or
(2) the date that is six (6) months after the date on which the
taxpayer is notified of the modification by the Internal Revenue
Service.
(g) If an agreement to extend the assessment time period is
entered into under IC 6-8.1-5-2(h), the period during which a person
may file a claim for a refund under subsection (a) is extended to the
same 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 a
taxpayer prevails in a complaint that is placed on the small claims
docket under IC 33-26-5, the tax court shall order the refund of the
taxpayer'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 through
entities
Sec. 2. (a) If the department finds that a person has paid more tax
for a taxable year than is legally due, the department shall apply the
amount of the excess against any amount of that same tax that is
assessed and is currently due. The department may then apply any
remaining excess against any of the listed taxes that have been
assessed against the person and that are currently due. Subject to
subsection (c), if any excess remains after the department has applied
the overpayment against the person's tax liabilities, the department
shall either refund the amount to the person or, at the person's
request, credit the amount to the person's future tax liabilities.
(b) Subject to subsection (c), if a court determines that a person
has paid more tax for a taxable year than is legally due, the
department shall refund the excess amount to the person.
(c) As used in this subsection, "pass through entity"means a
corporation that is exempt from the adjusted gross income tax under
IC 6-3-2-2.8(2), a partnership, a limited liability company, or a
limited liability partnership and "pass through income" means a
person's distributive share of adjusted gross income for a taxable year
attributable to the person's interest in a pass through entity. This
subsection applies to a person's overpayment of adjusted gross
income tax for a taxable year if:
(1) the person has filed a timely claim for refund with respect
to the overpayment under IC 6-8.1-9-1;
(2) the overpayment:
(A) is with respect to a taxable year beginning before
January 1, 2009;
(B) is attributable to amounts paid to the department by:
(i) a nonresident shareholder, partner, or member of a pass
through entity;
(ii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13
on behalf of a nonresident shareholder, partner, or member
of the pass through entity; or
(iii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13
on behalf of a nonresident shareholder, partner, or member
of another pass through entity; and
(3) the overpayment arises from a determination by the
department or a court that the person's pass through income is
not includible in the person's adjusted gross income derived
from sources within Indiana as a result of the application of
IC 6-3-2-2(a)(5) and IC 6-3-2-2.2(g).
The department shall apply the overpayment to the person's liability
for taxes that have been assessed and are currently due as provided
in subsection (a) and apply any remaining overpayment as a credit or
credits in satisfaction of the person's liability for listed taxes in
taxable 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 to
credit all the remaining overpayment in a taxable year beginning
after December 31, 2008, and ending before January 1, 2019, the
taxpayer is not entitled for any taxable year ending after December
31, 2018, to have any part of the remaining overpayment applied,
refunded, or credited to the person's liability for listed taxes. If an
overpayment or part of an overpayment is required to be applied as
a credit under this subsection to the person's liability for listed taxes
for a taxable year beginning after December 31, 2008, and has not
been determined by the department or a court to meet the conditions
of subdivision (3) by the due date of the person's return for a listed
tax for a taxable year beginning after December 31, 2008, the
department shall refund to the person that part of the overpayment
that should have been applied as a credit for such taxable year within
ninety (90) days of the date that the department or a court makes the
determination that the overpayment meets the conditions of
subdivision (3). However, the department may establish a program
to refund small overpayment amounts that do not exceed the
threshold dollar value established by the department rather than
crediting the amounts against tax liability accruing for a taxable year
after December 31, 2008. A person that receives a refund or credit
under this subsection shall file a report with the department in the
form and in the schedule specified by the department that identifies
under penalties of perjury the home state or other jurisdiction where
the income subject to the refund or credit was reported as income
attributable to that state or jurisdiction.
(d) An excess tax payment that is not refunded or credited against
a current or future tax liability within ninety (90) days after the date
the refund claim is filed, the date the tax payment was due, or the
date the tax was paid, whichever is latest, accrues interest from the
date the refund claim is filed at the rate established under
IC 6-8.1-10-1 until a date, determined by the department, that does
not precede by more than thirty (30) days, the date on which the
refund 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 for
gasoline 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 files
an individual income tax return and who is entitled to a refund from
the Indiana department of revenue because of the overpayment of
income tax for a taxable year may designate on his annual state
income tax return that either a specific amount or all of the refund to
which he is entitled shall be paid over to the nongame fund. In the
event that the individual designates that a certain amount shall be
paid over to the nongame fund and the refund to which he is entitled
is less than the amount designated, such designation shall mean that
all of the refund to which he is entitled shall be paid over to the
nongame fund.
(b) Every husband and wife (other than nonresidents) who file a
joint income tax return and who are entitled to a refund from the
Indiana department of revenue because of the overpayment of
income tax for a taxable year may designate on their annual state
income tax return that either a specific amount or all of the refund to
which they are entitled shall be paid over to the nongame fund. In the
event that the husband and wife designate that a certain amount shall
be paid over to the nongame fund and the refund to which they are
entitled is less than the amount designated, such designation shall
mean that all of the refund to which they are entitled shall be paid
over to the nongame fund.
(c) The instructions for the preparation of individual income tax
returns shall contain a description of the purposes of the nongame
and endangered species program which is written in cooperation with
the 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 chapter
may not be maintained in any court, including the Indiana tax court,
on behalf of any person who has not complied with the requirements
of section 1(a) of this chapter before the certification of the class. A
refund of taxes to a member of a class in a class action is subject to
the time limits set forth in section 1(a) of this chapter based on the
time the class member filed the required claim for refund with the
department. 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 department
shall establish, administer, and make available a centralized debt
collection program for use by state agencies to collect delinquent
accounts, charges, fees, loans, taxes, or other indebtedness owed to
or being collected by state agencies. The department's collection
facilities shall be available for use by other state agencies only when
resources are available to the department.
(b) The commissioner shall prescribe the appropriate form and
manner in which collection information is to be submitted to the
department.
(c) The debt must be delinquent and not subject to litigation,
claim, appeal, or review under the appropriate remedies of a state
agency.
(d) The department has the authority to collect for the state or
claimant agency (as defined in IC 6-8.1-9.5-1) delinquent accounts,
charges, fees, loans, taxes, or other indebtedness due the state or
claimant agency that has a formal agreement with the department for
central debt collection.
(e) The formal agreement must provide that the information
provided to the department be sufficient to establish the obligation
in court and to render the agreement as a legal judgment on behalf of
the state. After transferring a file for collection to the department for
collection, the claimant agency shall terminate all collection
procedures and be available to provide assistance to the department.
Upon receipt of a file for collection, the department shall comply
with all applicable state and federal laws governing collection of the
debt.
(f) The department may use a claimant agency's statutory
authority to collect the claimant agency's delinquent accounts,
charges, fees, loans, taxes, or other indebtedness owed to the
claimant agency.
(g) The department's right to credit against taxes due may not be
impaired by any right granted the department or other state agency
under this section.
(h) The department of state revenue may charge the claimant
agency a fee not to exceed fifteen percent (15%) of any funds the
department collects for a claimant agency. Notwithstanding any law
concerning delinquent accounts, charges, fees, loans, taxes, or other
indebtedness, the fifteen percent (15%) fee shall be added to the
amount due to the state or claimant agency when the collection is
made.
(i) Fees collected under subsection (h) shall be retained by the
department after the debt is collected for the claimant agency and are
appropriated to the department for use by the department in
administering this section.
(j) The department shall transfer any funds collected from a
debtor to the claimant agency within thirty (30) days after the end of
the month in which the funds were collected.
(k) When a claimant agency requests collection by the
department, 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 the
department will attempt to collect for the claimant agency.
(m) The commissioner shall report, not later than March 1 for the
previous calendar year, to the governor, the budget director, and the
legislative council concerning the implementation of the centralized
debt collection program, the number of debts, the dollar amounts of
debts collected, and an estimate of the future costs and benefits that
may be associated with the collection program. A report to the
legislative council under this subsection must be in an electronic
format under IC 5-14-6.
(n) The department may not assess a fee to a state agency or a
custodial parent for seeking a setoff to a state or federal income tax
refund 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.
