(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 (j), (k), (l), (m), and (n), in order to obtain the refund, the
person must file the claim with the department within three (3) years
after the later 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 a
periodic tax is thirty-one (31) days after 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.
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(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 (j), (k), (l), (m), and (n), in order to obtain the refund, the
person must file the claim with the department within three (3) years
after the later 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 a
periodic tax is thirty-one (31) days after 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) 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 that filed the claim. If the
person disagrees with a part of the decision on the claim, the person
may file a protest and request a hearing with the department. 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) 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.
(d) The decision on the claim must state that the person has sixty
(60) days from the date the decision is mailed to file a written protest.
If the person files a protest and requests a hearing on the protest, the
department shall:
(1) set the hearing at the department's earliest convenient time;
and
(2) notify the person by United States mail of the time, date, and
location of the hearing.
(e) The department may hold the hearing at the location of its choice
within Indiana if that location complies with IC 6-8.1-3-8.5.
(f) After conducting a hearing on a protest, or after making a
decision on a protest when no hearing is requested, the department
shall issue a memorandum of decision or order denying a refund and
shall send a copy of the decision through the United States mail to the
person that filed the protest. 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. The department may continue the hearing until
a later date if the taxpayer presents additional information at the
hearing or the taxpayer requests an opportunity to present additional
information after the hearing.
(g) A person that disagrees with any part of the department's
determination in a memorandum of decision or order denying a refund
may request a rehearing not more than thirty (30) days after the date on
which the memorandum of decision or order denying a refund is issued
by the department. The department shall consider the request and may
grant the rehearing if the department reasonably believes that a
rehearing would be in the best interests of the taxpayer and the state.
If the department grants the rehearing, the department shall issue a
supplemental order denying a refund or a supplemental memorandum
of decision based on the rehearing, whichever is applicable.
(h) If the person disagrees with any part of the department's
determination, the person may appeal the determination, 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 if:
(1) the appeal is filed more than ninety (90) days after the latest
of the dates on which:
(A) the memorandum of decision or order denying a refund is
issued by the department, if the person does not make a timely
request for a rehearing under subsection (g) on the
memorandum of decision or order denying a refund;
(B) the department issues a denial of the person's timely request
for a rehearing under subsection (g) on the memorandum of
decision or order denying a refund; or
(C) the department issues a supplemental memorandum of
decision or supplemental order denying a refund following a
rehearing granted under subsection (g); or
(2) 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 a refund with the department.
The ninety (90) day period may be extended according to the terms of
a written agreement signed by both the department and the person. The
agreement must specify a date upon which the extension will terminate
and include a statement that the person agrees to preserve the person's
records until that specified termination date. The specified termination
date agreed upon under this subsection may not be more than ninety
(90) days after the expiration of the period otherwise specified by this
subsection.
(i) With respect to the vehicle excise tax, this section applies only
to penalties and interest paid on assessments of the vehicle excise tax.
Any other overpayment of the vehicle excise tax is subject to IC 6-6-5.
(j) If a taxpayer's federal taxable income, federal adjusted gross
income, or 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 latest of:
(1) the date determined under subsection (a);
(2) the date that is one hundred eighty (180) days after the date of
the modification by the Internal Revenue Service as provided
under:
(A) IC 6-3-4-6(c) and IC 6-3-4-6(d) (for the adjusted gross
income tax); or
(B) IC 6-5.5-6-6(c) and IC 6-5.5-6-6(d) (for the financial
institutions tax); or
(3) in the case of a modification described in IC 6-8.1-5-2(k)(1)
through IC 6-8.1-5-2(k)(3), the date provided in IC 6-3-4.5 for
such refunds or December 31, 2021, whichever is later.
(k) Notwithstanding any other provision of this section, if an
individual received a severance payment described in Section
3(a)(1)(A) of the Combat-Injured Veterans Tax Fairness Act of 2016
(P.L. 114-292) and upon which the United States Secretary of Defense
withheld tax under IC 6-3, IC 6-3.5-1.1 (before its repeal), IC 6-3.5-6
(before its repeal), IC 6-3.5-7 (before its repeal), or IC 6-3.6, the
individual must file a claim for refund for taxes that were overpaid and
attributable to the severance payment not later than December 31,
2020. Any refund under this subsection shall be computed without
regard to subsection (a)(2). The department may establish procedures
to provide standard refund amounts if a standard refund amount is
requested from the Internal Revenue Service.
(l) Notwithstanding any other provision of this section, a taxpayer
may file a claim for refund for any taxes under IC 6-3 or IC 6-5.5 that
the taxpayer expected to be due as a result of an Internal Revenue
Service audit not later than the date otherwise prescribed in this section
or one hundred eighty (180) days after the date the taxpayer is notified
that the audit resulted in no change or, if the audit resulted in a
modification, the date of the modification as provided under:
(1) IC 6-3-4-6(c) and IC 6-3-4-6(d) (for adjusted gross income
tax); or
(2) IC 6-5.5-6-6(c) and IC 6-5.5-6-6(d) (for the financial
institutions tax);
whichever is later.
(m) If a taxpayer has an overpayment for a listed tax as a result of
a credit of taxes paid to another state, country, or local jurisdiction in
another state or country, and those taxes were assessed by the state,
country, or local jurisdiction after the period for which a refund could
have been claimed for that listed tax under this section, the period for
requesting the refund under this section is extended to one hundred
eighty (180) days after payment of the tax to the state, country, or local
jurisdiction.
(n) If an agreement to extend the assessment time period is entered
into under IC 6-8.1-5-2(i), 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; P.L.172-2011, SEC.89; P.L.137-2012,
SEC.109; P.L.242-2015, SEC.39; P.L.256-2017, SEC.88; P.L.86-2018,
SEC.81; P.L.146-2020, SEC.44; P.L.159-2021, SEC.35; P.L.118-2024,
SEC.23.