§ 42-1106 — Time limitations for credit and refund claims

A. The period within which a claim for credit or refund may be filed, or credit or refund may be allowed or made if no claim is filed, is the period within which the department may make an assessment under section 42-1104.

B. If the total amount withheld under section 43-401 exceeds the amount of the tax on the employee's entire taxable income as computed under title 43, no refund, credit or offset may be made to the employee unless the employee files a return, in respect of which the tax withheld might be credited, within four years from the due date of the original return.

C. If a refund or credit of any overpayment of tax resulting from the amendments made to section 121(d)(9) of the internal revenue code by the military family tax relief act of 2003 (P.L. 108-121) is prevented by the operation of any law or rule of law, including res judicata, at any time before the close of the one year period beginning on November 11, 2003, the refund or credit may nevertheless be made or allowed if the claim is filed before the close of this period.

D. The failure to begin an action for refund or credit within the time specified in this section is a bar against the recovery of taxes by the taxpayer.