§ 77-2794 — Income tax; overpayment; interest

(1) Under regulations prescribed by the
Tax Commissioner interest shall be allowed and paid at the rate specified
in section 45-104.02 , as such rate may from time to time be adjusted, upon
any overpayment in respect to the income tax imposed by the Nebraska Revenue
Act of 1967.
(2) For purposes of this section:
(a) The date of overpayment shall be the last day prescribed
for filing the original return of such tax;
(b) Any return filed before the last day prescribed for the
filing thereof, determined without regard to any extension of time to file
the return, shall be considered as filed on such last day;
(c) Any tax paid by the taxpayer before the last day prescribed
for its payment, any income tax withheld from the taxpayer during any calendar
year, and any amount paid by the taxpayer as estimated income tax for a taxable
year shall be deemed to have been paid on the last day prescribed for filing
the return for the taxable year to which such amount constitutes a credit
or payment, determined without regard to any extension of time granted the
taxpayer;
(d) If at the time an overpayment is to be refunded, the taxpayer
also has a reported underpayment of the same tax in another year: (i) If the
overpayment is for a taxable year ending before the year of underpayment,
the overpayment shall be applied to reduce such underpayment as of the last
day prescribed for filing the original return of such tax for the year of
underpayment; (ii) if the overpayment is for a taxable year ending after the
year of underpayment, the overpayment shall be applied to reduce such underpayment
as of the last day prescribed for filing the original return of such tax for
the year of overpayment; or (iii) if the overpayment is one for which interest
is not allowed under this section, the overpayment shall be applied as of
the date of the filing of the claim for refund; and interest shall be allowed
for any remaining overpayment as provided in subdivision (a) of this subsection;
(e) The period of overpayment during which interest shall
be allowed shall not include any period during which the overpayment continued
due to the unreasonable delay by the taxpayer in filing the claim for refund.
For this purpose, the burden of proof shall be on the taxpayer to show that
a delay of more than ninety days after all of the facts required to prepare
a correct claim for refund are available is not unreasonable; and
(f) The period of overpayment during which interest shall
be allowed shall not include any period during which an agreement between
the taxpayer and the Internal Revenue Service was not filed as required by
subsection (6) of section 77-2786 and the first ninety days after such agreement
is filed.
(3)(a) Except as provided in subdivision
(b) of this subsection, if any overpayment of income tax imposed
by the Nebraska Revenue Act of 1967 is refunded within ninety days after the
last date prescribed, or permitted by extension of time, for filing the return
of such tax or within ninety days after any original return, and any amended
return filed to carry back a loss, was
filed, whichever is later, no interest shall be allowed under this section
on overpayment.
(b) If the Tax Commissioner approves and
implements an electronic form or method for filing the return and the return
is not filed electronically, no interest shall be allowed under this section
on overpayment.
(c) In the case of amended
returns filed for any reason other than to carry back a loss, interest shall
be allowed as provided in subsection (1) of this section.

Legislative History

Source: Laws 1967, c. 487, § 94, p. 1616; Laws 1981, LB 167, § 54; Laws 1991, LB 240, § 3; Laws 1992, Fourth Spec. Sess., LB 1, § 38; Laws 1993, LB 345, § 71; Laws 1996, LB 1041, § 8; Laws 2004, LB 955, § 2; Laws 2008, LB915, § 5; Laws 2010, LB879, § 14.