SUBJECT: Excess Tax Payments Procedure for Refund and Payment of Interest

REFERENCES: IC 6-8.1-9-2

DISCLAIMER: Information bulletins are intended to provide nontechnical assistance to the general public. Every attempt is made to provide information that is consistent with the appropriate statutes, rules, and court decisions. Any information that is not consistent with the law, regulations, or court decisions is not binding on either the department or the taxpayer. Therefore, the information provided herein should serve only as a foundation for further investigation and study of the current law and procedures related to the subject matter covered herein.

SUMMARY OF CHANGES

Only nonsubstantive, technical changes have been made to this bulletin. It has been primarily changed to reflect updated formatting.

INTRODUCTION

The purpose of this bulletin is to provide guidance regarding IC 6-8.1-9-2 and the procedures for when interest begins to accrue on a claim for refund.

PROCEDURES

When it is determined that a person paid more tax than is legally due, the department shall apply the amount of the overpayment against any outstanding liability for a listed tax as listed in IC 6-8.1-1-1. If any excess remains after the department has applied the overpayment against other outstanding 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.

If an excess tax payment is not refunded or credited against a current or future tax liability within 90 days after the date the refund claim is filed, the date the tax was due, or the date the tax was paid, whichever is latest, the excess payment accrues interest from the latest of:

For sales and use tax, the oil inspection fee, and the petroleum severance tax, the due date of the tax is December 31 of the year containing the taxable period for which the tax was paid.

In the case of refunds generated as the result of department audit or investigation, no interest will accrue unless the taxpayer files a refund claim, and then only to the extent otherwise provided above. This rule also applies to the extent the department issues a refund pursuant to IC 6-8.1-9-1.5.

If you have any questions concerning this bulletin, please contact the Tax Policy Division at taxpolicy@dor.in.gov.

_________________________

Robert J. Grennes, Jr.

Commissioner