Idaho Admin. Code r. 35.01.01.880 - CREDITS AND REFUNDS
Section 63-3072, Idaho Code
01.
Overpayment. The term
overpayment includes: (4-6-23)
a. A voluntary
and unrequested payment greater than an actual tax liability.
(4-6-23)
b. An excessive amount
that an employer withholds pursuant to Sections
63-3035 and
63-3036, Idaho Code.
(4-6-23)
c. An excessive amount
that a pass-through entity withholds pursuant to Section
63-3036B, Idaho Code.
(4-6-23)
d. All amounts erroneously
or illegally assessed or collected. (4-6-23)
e. The term overpayment does not include an
amount paid pursuant to a final determination of tax, including a compromise
and closing agreement, decision of the Tax Commission, decision of the Board of
Tax Appeals, or final court judgment. (4-6-23)
02.
Requirements of a Valid Refund
Claim. Before the Tax Commission can credit or refund an overpayment,
the taxpayer making the claim must establish both of the following: (4-6-23)
a. The basis for the credit or refund claim,
and (4-6-23)
b. The amount of the
overpayment. (4-6-23)
03.
Timely Claim Required for Refund. (4-6-23)
a. The Tax Commission may not credit or
refund an overpayment after the expiration of the period of limitations unless
the taxpayer filed a claim before the expiration of the period.
(4-6-23)
b. When an adjustment to
the taxpayer's federal return affects the calculation or application of an
Idaho net operating loss, capital loss, or Idaho credit in a year otherwise
closed by the period of limitations, the taxpayer has one (1) year from the
date of the final determination to file a claim for refund. (4-6-23)
c. If a claim for credit or refund relates to
an overpayment attributable to an Idaho net operating loss carryback incurred
in taxable years beginning on and after January 1, 2013, an amended return
carrying the loss back must be filed within one (1) year of the end of the
taxable year of the net operating loss that results in such carryback.
(4-6-23)
04.
Amended Returns Required as Refund Claims. The claim for a credit
or refund must be made on an amended Idaho income tax return that is properly
signed and includes an explanation of each legal or factual basis in sufficient
detail to inform the Tax Commission of the reason for the claim. By signing the
amended return the taxpayer is declaring that the claim for refund is true and
correct to the best of his knowledge and belief and is made under the penalties
of perjury. (4-6-23)
05.
Closed Issues. The Tax Commission will deny a credit or refund
claim for a taxable year for which the Tax Commission has issued a Notice of
Deficiency, unless the taxpayer shows that the changes on the amended return
are unrelated to the adjustments in the Notice of Deficiency or that the
changes result from a final federal determination. (4-6-23)
06.
Limitations on Refunds of
Withholding and Estimated Payments. As provided by Section
63-3072(c), Idaho
Code, the Tax Commission may not refund taxes withheld from wages unless the
taxpayer files a return within three (3) years after the due date . The Tax
Commission may not refund any payment received with an extension of time to
file or with a tentative return, including quarterly estimated payments, unless
the taxpayer makes a claim for a refund within three (3) years of the due date
of the return. However, when an individual is in a combat zone and entitled to
an extension of time by Section
7508, Internal Revenue Code, the
number of days disregarded under such section will be added to the three (3)
year period for allowing refunds of amounts withheld or paid as estimated
payments. (4-6-23)
07.
Reduction or Denial of Refund Claims. If the Tax Commission
determines that a refund claim is in error, the Tax Commission will deny the
claim in whole or part. Unless the denial results from a mathematical error by
the claimant, the Tax Commission will give notice of the denial by a Notice of
Deficiency in the manner required by Section
63-3045, Idaho Code, and related
rules. The protest and appeal process that applies to a Notice of Deficiency
also applies to the denial or reduction of a refund. See Section
63-3045A, Idaho Code, for
information on mathematical errors. (4-6-23)
08.
Amended Federal Return.
Filing a claim with the Internal Revenue Service to reduce taxable income does
not extend the Idaho period of limitations for claiming a refund or credit of
tax. If the statute of limitations is about to expire on a taxpayer's Idaho
return for which an issue is pending on his federal return or return filed with
another state, the taxpayer should amend his Idaho return. He should clearly
identify the amended return as a protective claim for refund. The taxpayer must
notify the Tax Commission of the final resolution. (4-6-23)
09.
Combined Reports -- Final Federal
Determination and Change of Filing Method. If the Idaho period of
limitations is open due to a final federal determination, a corporate taxpayer
may not adjust its Idaho return to include a previously omitted corporation or
to exclude any corporation previously included in a combined report .
(4-6-23)
10.
Duplicate
Returns. If a return is filed pursuant to Section
63-217(1)(b),
Idaho Code, where the taxpayer establishes by competent evidence that the
return was deposited in the United States mail or with a qualifying private
delivery service (See IDAPA 35.02.01, "Tax Commission Administration and
Enforcement Rules," Rule
010) on or before the date for
filing and the Tax Commission has notified the taxpayer that it has not
received the return, the taxpayer must submit a duplicate return within fifteen
(15) days of such notification for the newly filed return to qualify as a
duplicate return. The period of limitations for a duplicate return is the later
of one (1) year from the filing of the duplicate return or the date provided
for in Section
63-3072(b), Idaho
Code. (4-6-23)
Notes
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