Idaho Admin. Code r. 35.01.02.117 - REFUND CLAIMS
Sections 63-3612, 63-3613, 63-3619, 63-3626, 63-3629(c), 63-3631, 63-3045, 63-3045B, 63-3049, 63-4408, Idaho Code
01.
In General. Application for
refund of sales or use taxes paid in excess of those properly imposed by the
Sales Tax Act, is to be in accordance with the provisions of this rule.
(3-31-22)
02.
Payment of
Sales Tax by a Buyer to a Vendor. When a buyer has paid sales tax to a
vendor, and later determines that the sales tax was paid in error, the buyer
needs to request the refund from the vendor to whom the excess tax was paid. If
the buyer can provide evidence that the vendor has refused to refund the tax,
he may then file a claim for refund directly with the Commission.
(3-31-22)
03.
Payment of
Sales or Use Tax Directly to the State. When a person holding a seller's
permit or use tax account number has paid tax to the state, and later
determines that the sales or use tax was paid in error, he may file a claim for
refund directly with the Commission. (3-31-22)
04.
Bad Debts. Claims for
refunds arising from bad debts are to be filed with the Tax Commission in the
manner prescribed by this Rule
117 and Rule
063 of these rules.
(3-31-22)
05.
Mathematical
Errors. When the filer of sales or use tax returns determines that a
mathematical error has been made on a previously filed return resulting in
overpayment of the proper amount of sales or use taxes, he may file a claim for
refund directly with the Tax Commission. (3-31-22)
06.
Refund Claims. A refund
claim, however, is to be in writing and include the following information:
(3-31-22)
a. Full name, address, and phone
number of the claimant; (3-31-22)
b. Claimant's seller's permit number or use
tax account number if claimant has such a number; (3-31-22)
c. The amount of the refund claimed;
(3-31-22)
d. A detailed statement
of the reason the claimant believes refund is due; (3-31-22)
e. An itemized description of the specific
goods or services to which the tax relates; (3-31-22)
f. The date on which the claimed excess taxes
were paid; (3-31-22)
g. If the
claimant is the retailer, a statement under oath that the amount of tax plus
interest has been or will be refunded to the buyer; and (3-31-22)
h. If the claim is for bad debt, detailed
individual account information for each customer and each item purchased for
which a refund is claimed. (3-31-22)
i. A refund claim must be filed within three
(3) years from the time the payment was made to the Commission. If a refund
claim does not include the required information listed in Subsections
117.06.a. through h., as
applicable, then the claim does not satisfy the requirement to file a written
claim to stop the period of limitations provided in Section
63-3626(b)(1),
Idaho Code, from running. A refund claim that does not include the required
information will be denied and processed as set out in Subsection
117.11 of this rule.
(3-31-22)
07.
Outstanding Liabilities. No claim for refund will be approved or
issued unless the claimant first satisfies outstanding liabilities for taxes
administered by the Commission. (3-31-22)
08.
Payment Under Protest. It is
not necessary for a taxpayer to pay taxes under protest in order to
subsequently be able to claim a refund of such taxes. (3-31-22)
09.
Statute of Limitations. A
claim for refund will not be allowed if it is filed more than three (3) years
from the time the payment of the tax was made. The time the payment was made is
the date upon which the sales or use tax return relating to the payment was
filed with the Commission. (3-31-22)
10.
Taxes Paid in Response to a Notice
of Deficiency Determination. A claim for refund may not be filed
relating to any sales or use taxes which have been asserted by a notice of
deficiency determination. A taxpayer contending that taxes have been
erroneously or illegally collected by the Commission in conformance with a
notice of deficiency determination can seek a refund by using the appeal
procedures outlined in IDAPA 35.02.01.320 through 328, "Tax Administration and
Enforcement Administrative Rules." (3-31-22)
11.
Denial of a Refund Claim.
All claims for refund or credit will be reviewed by the Commission's staff. If
the staff concludes that all or part of the claim should not be allowed, notice
of denial of the claim will be given to the claimant by first class mail or by
other commercial delivery service providing proof of delivery, whichever is the
most cost efficient. The notice will include a statement of the reasons for the
denial. The notice of denial will be the equivalent of a notice of deficiency
determination. If the taxpayer wishes to seek a redetermination of the denial
notice, they can file a petition for redetermination in the manner prescribed
in IDAPA 35.02.01.320 -328, "Tax Administration and Enforcement Administrative
Rules." A petition for redetermination must be filed no later than sixty-three
(63) days from the date upon which the notice of denial is mailed to or served
on the claimant. (3-31-22)
12.
Interest on Refunds. See Rule
122 of these rules.
(3-31-22)
13.
Cross
Reference. See Rule
003 of these rules, Administrative
Appeals. (3-31-22)
Notes
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