§ 47:1621 — Refunds of overpayments authorized

Louisiana § 47:1621

• Jurisdiction: Louisiana
• Title 47: Revenue and Taxation

Text

§1621. Refunds of overpayments authorized
A. For the purpose of this Chapter, "overpayment" means a payment of tax, penalty,
or interest when none was due; the excess of the amount of tax, penalty, or interest paid over
the amount due; or the payment of a penalty that is later waived or remitted by the secretary,
provided that the power of the secretary to refund overpayments shall be as prescribed and
limited in this Section.
B. The secretary shall make a refund of each overpayment where it is determined
that:
(1) The tax was overpaid because of an error on the part of the taxpayer in
mathematical computation on the face of the return or on any of the supporting documents.
(2) The tax was overpaid because of a construction of the law on the part of the
taxpayer contrary to the secretary's construction of the law at the time of payment.
(3) The overpayment was the result of an error, omission, or a mistake of fact of
consequence to the determination of the tax liability, whether on the part of the taxpayer or
the secretary.
(4) The overpayment resulted from a change made by the secretary in an assessment,
notice, or billing issued under the provisions of Chapter 18 of Subtitle II of this Title.
(5) With regard to a Louisiana income tax overpayment, the overpayment resulted
from a change in federal income tax data which formed the basis for calculation of the
Louisiana income tax.
(6) With regard to any Louisiana tax overpayment, the overpayment resulted from
an overpayment of estimated Louisiana tax.
(7) With regard to a Louisiana income tax overpayment, the overpayment resulted
from application of a Louisiana net operating loss carryover for all claims for this deduction
on any return filed on or after July 1, 2015, regardless of the taxable year to which the return
relates.
(8) The overpayment resulted from a subsequent determination that the taxpayer was
entitled to pay a tax at a reduced tax rate.
(9) The overpayment was the result of a payment that exceeded either the amount
shown on the face of the return or voucher, or which would have been shown on the face of
the return or voucher if a return or voucher were required.
(10) The tax was overpaid due to payment pursuant to an unconstitutional law,
invalid or unenforceable rule or regulation, or because of a mistake of law arising from the
misinterpretation by the collector of the provisions of any law or of any rule or regulation.
C. Notwithstanding the provisions of Subsection B, where it is determined that there
is clear and convincing evidence that an overpayment has been made, the secretary shall
make a refund, subject to conditions or limitations provided by law.
D.(1) Refunds required by the provisions of this Section shall be made out of any
current collections of the particular tax which was overpaid. The paper form for an
individual income tax return shall include provisions whereby the taxpayer may choose to
receive a refund of an overpayment by check or direct deposit. A refund for a taxpayer who
filed a paper tax return for individual income tax shall be made in accordance with the
method chosen by the taxpayer on the tax return. If the tax return does not reflect the
selection of a specific method of payment by the taxpayer, any refund due shall be paid by
check.
(2) If a taxpayer has overpaid a particular tax for more than one taxable year and
seeks a refund of the total amount, the secretary may issue the refund incrementally. The
number of increments shall not exceed the total number of years the tax was overpaid.
(3) If a refund is ordered or determined by an administrative decision or by a
judgment which has become final and non-appealable, then, notwithstanding the provisions
of Subsection G of this Section, the secretary shall make the refund within forty-five days
of the date of such administrative decision or the date such judgment has become final and
non-appealable.
(4) The first payment owed pursuant to the provisions of Paragraph (2) of this
Subsection shall be made within the time specified in Paragraph (3) of this Subsection, and
any subsequent payments shall be made no later than the same date of the respective
subsequent calendar years.
E. The secretary may recover any refunded or credited amount determined not to be
an overpayment through any collection remedy authorized by R.S. 47:1561 within two years
from December thirty-first of the year in which the refund was paid or credit was applied.
Any refunded or credited amount determined not to be an overpayment shall bear interest at
the rate provided in R.S. 47:1601, which shall be computed from the date the refund was
issued or credit was given to the date payment is received by the secretary.
F. Repealed by Acts 2019, No. 367, §2, eff. June 18, 2019.
G. Upon application by a corporation, the secretary shall pay interest to the
corporation required by R.S. 47:287.445. Such interest shall be paid within ninety days after
receipt of application and shall be paid out of any current collections of Louisiana corporate
income tax.
H. The secretary shall report monthly to the commissioner of administration the total
amount of refunds made each month. The secretary shall also report quarterly to the Joint
Legislative Committee on the Budget the total amount of refunds made each quarter and shall
specifically note when any refunds were not paid within the time period provided for in
Paragraph (D)(3) of this Section and the reason therefor.
I. The secretary is authorized to promulgate regulations pursuant to the
Administrative Procedure Act for the purpose of administration and enforcement of this
Section. Such regulations will have the full force and effect of law.
J.(1) A refund may be claimed pursuant to the provisions of this Section, subject to
the other conditions or limitations of this Chapter, on an amount paid on an otherwise final
assessment.
(2) The provisions of this Subsection shall not apply if the assessment became final
following an appeal of the assessment to the Board of Tax Appeals, or if an assessment
became final pursuant to a judgment in an action brought pursuant to R.S. 47:1576.
(3) The provisions of this Subsection shall apply only if the taxpayer or dealer
establishes that it did not receive the assessment prior to the deadline for appealing that
assessment, and the secretary did not comply with the provisions of R.S. 47:1565(D).
K. No refund shall be made for any overpayment that is based on a tax shelter, tax
sham, tax evasion scheme, or any transaction which lacks a legitimate business purpose or
otherwise fails the economic substance doctrine as determined by a final decision of a court
of competent jurisdiction.
NOTE: See Acts 2014, No. 412, §2, and Acts 2014, No. 560, §2, regarding
applicability.
NOTE: See Acts 2015, No. 103, §2, re: applicability.
NOTE: See Acts 2018, No. 143, §4, re: applicability.

Legislative History

Amended by Acts 1972, No. 565, §1; Acts 1991, No. 241, §1, eff. July 1, 1991; Acts 1992, No. 588, §1; Acts 2001 1st Ex. Sess., No. 6, §1, eff. Mar. 27, 2001; Acts 2004, No. 900, §1, eff. Jan. 1, 2005; Acts 2008, No. 826, §1, eff. July 1, 2008; Acts 2012, No. 818, §1; Acts 2014, No. 412, §1, eff. June 4, 2014; Acts 2014, No. 560, §1, eff. June 9, 2014; Acts 2015, No. 103, §1, eff. July 1, 2015; Acts 2015, No. 210, §1, eff. June 23, 2015; Acts 2018, No. 143, §1, eff. May 11, 2018; Acts 2019, No. 367, §§1, 2, eff. June 18, 2019; Acts 2025, No. 498, §4, eff. July 4, 2025.