§ 54A:9-8 — Limitations on credit or refund

54A:9-8. (a) General. Claim for credit or refund of an overpayment of income tax shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed, within 2 years from the time the tax was paid. If the claim is filed within the 3-year period, the amount of the credit or refund shall not exceed the portion of the tax paid within the 3 years immediately preceding the filing of the claim plus the period of any extension of time for filing the return. If the claim is not filed within the 3-year period, but is filed within the 2-year period, the amount of the credit or refund shall not exceed the portion of the tax paid during the 2 years immediately preceding the filing of the claim. Except as otherwise provided in this section, if no claim is filed, the amount of a credit or refund shall not exceed the amount which would be allowable if a claim had been filed on the date the credit or refund is allowed. (b) Extension of time by agreement. If an agreement under the provisions of paragraph (2) of subsection (c) of N.J.S.54A:9-4 (extending the period for assessment of income tax) is made within the period prescribed in subsection (a) for the filing of a claim for credit or refund, the period for filing a claim for credit or refund, or for making credit or refund if no claim is filed, shall not expire prior to 6 months after the expiration of the period within which an assessment may be made pursuant to the agreement or any extension thereof. The amount of such credit or refund shall not exceed the portion of the tax paid after the execution of the agreement and before the filing of the claim or the making of the credit or refund, as the case may be, plus the portion of the tax paid within the period which would be applicable under subsection (a) if a claim had been filed on the date the agreement was executed. (c) Notice of change or correction of Federal income. If a taxpayer is required by N.J.S.54A:8-7 to report a change or correction in Federal taxable income reported on the taxpayer's Federal income tax return, or to report a change or correction which is treated in the same manner as if it were an overpayment for Federal income tax purposes, or to file an amended return with the director, claim for credit or refund of any resulting overpayment of tax shall be filed by the taxpayer within 2 years from the time the notice of such change or correction or such amended return was required to be filed with the director. The amount of such credit or refund shall not exceed the amount of the reduction in tax attributable to such Federal change, correction or items amended on the taxpayer's amended Federal income tax return. This subsection shall not affect the time within which or the amount for which a claim for credit or refund may be filed apart from this subsection. (d) Failure to file claim within prescribed period. No credit or refund shall be allowed or made, except as provided in subsection (e) of this section or subsection (d) of N.J.S.54A:9-10, after the expiration of the applicable period of limitation specified in this act, unless a claim for credit or refund is filed by the taxpayer within such period. Any later credit shall be void and any later refund erroneous. No period of limitations specified in any other law shall apply to the recovery by a taxpayer of moneys paid in respect of taxes under this act. (e) Effect of petition to director. If a notice of deficiency for a taxable year has been mailed to the taxpayer under N.J.S.54A:9-2 and if the taxpayer files a timely petition with the director under N.J.S.54A:9-9, the director may determine that the taxpayer has made an overpayment for such year (whether or not the director also determines a deficiency for such year). No separate claim for credit or refund for such year shall be filed, and no credit or refund for such year shall be allowed or made, except-- (1) As to overpayments determined by a decision of the director which has become final; and (2) As to any amount collected in excess of an amount computed in accordance with the decision of the director which has become final; and (3) As to any amount claimed as a result of a change or correction described in subsection (c). (f) Limit on amount of credit or refund. The amount of overpayment determined under subsection (e) shall, when the decision of the director has become final, be credited or refunded in accordance with subsection (a) of section N.J.S. 54A:6-6 and shall not exceed the amount of tax which the director determines as part of the director's decision was paid-- (1) After the mailing of the notice of deficiency; or (2) Within the period which would be applicable under subsections (a), (b) or (c), if on the date of the mailing of the notice of a deficiency a claim had been filed (whether or not filed) stating the grounds upon which the director finds that there is an overpayment. (g) Early return. For purposes of this section, any return filed before the last day prescribed for the filing thereof shall be considered as filed on such last day, determined without regard to any extension of time granted the taxpayer. (h) Prepaid income tax. For purposes of this section, 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 by the taxpayer on the fifteenth day of the fourth month following the close of the taxpayer's taxable year with respect to which such amount constitutes a credit or payment. (i) Return and payment of withholding tax. Notwithstanding subsection (h), for purposes of this section with respect to any withholding tax-- (1) If a return for any period ending with or within a calendar year is filed before April 15 of the succeeding calendar year, such return shall be considered filed on April 15 of such succeeding calendar year; and (2) If a tax with respect to remuneration paid during any period ending with or within a calendar year is paid before April 15 of the succeeding calendar year, such tax shall be considered paid on April 15 of such succeeding calendar year. (j) Final federal adjustments resulting from a partnership audit or administrative adjustments request. If a partnership files a Federal Adjustments Report with final federal adjustments resulting from a partnership audit or administrative adjustments request that do not result in a federal imputed underpayment, and which are not taken into account by the partnership in the federal adjustment year partnership return, then the partners may claim a credit or refund of the related State tax by filing an amended return or other schedule as required by the director. The amount of such credit or refund shall not exceed the amount of the reduction in New Jersey tax attributable to such final federal adjustments. This subsection shall not affect the time within which or the amount for which a claim for credit or refund may be filed apart from this subsection. L.1976, c. 47, s. 54A:9-8, eff. July 8, 1976, operative Aug. 30, 1976; amended 2022, c.133, s.5.