| 1 | 1 | | General Assembly Raised Bill No. 5471 |
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| 2 | 2 | | February Session, 2012 LCO No. 2119 |
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| 3 | 3 | | *02119_______FIN* |
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| 4 | 4 | | Referred to Committee on Finance, Revenue and Bonding |
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| 5 | 5 | | Introduced by: |
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| 6 | 6 | | (FIN) |
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| 7 | 7 | | |
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| 8 | 8 | | General Assembly |
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| 9 | 9 | | |
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| 10 | 10 | | Raised Bill No. 5471 |
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| 11 | 11 | | |
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| 12 | 12 | | February Session, 2012 |
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| 13 | 13 | | |
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| 14 | 14 | | LCO No. 2119 |
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| 15 | 15 | | |
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| 16 | 16 | | *02119_______FIN* |
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| 17 | 17 | | |
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| 18 | 18 | | Referred to Committee on Finance, Revenue and Bonding |
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| 19 | 19 | | |
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| 20 | 20 | | Introduced by: |
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| 21 | 21 | | |
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| 22 | 22 | | (FIN) |
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| 23 | 23 | | |
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| 24 | 24 | | AN ACT CONCERNING REFUND CLAIM PERIODS FOR SALES AND USE TAXES AND PERSONAL INCOME TAX. |
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| 25 | 25 | | |
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| 26 | 26 | | Be it enacted by the Senate and House of Representatives in General Assembly convened: |
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| 27 | 27 | | |
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| 28 | 28 | | Section 1. Section 12-425 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2012, and applicable to claims for refunds filed on or after said date): |
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| 29 | 29 | | |
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| 30 | 30 | | [(1)] (a) No refund shall be allowed unless a claim therefor is filed with the commissioner [within] not later than three years [from] after the last day of the month succeeding the period for which the overpayment was made, or [, with respect to assessments made under sections 12-415 and 12-416, within six months after the assessments become final] not later than two years after the date the tax was paid, whichever date is later. No credit shall be allowed after the expiration of the period specified for filing claims for refund unless a claim for credit is filed with the commissioner within such period, or unless the credit relates to a period for which a waiver is given pursuant to subsection (g) of section 12-415. |
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| 31 | 31 | | |
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| 32 | 32 | | [(2)] (b) No credit or refund of any amount paid pursuant to section 12-411 shall be allowed on the ground that the storage, acceptance, consumption or other use of the services or property is exempted under subdivision (1) of section 12-413, unless in addition to the overpayment for which the claim is filed the claimant also has reimbursed the claimant's vendor for the amount of the sales tax imposed upon the claimant's vendor with respect to the sale of the property and paid by the vendor to the state. |
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| 33 | 33 | | |
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| 34 | 34 | | [(3)] (c) Every claim shall be in writing and shall state the specific grounds upon which the claim is founded. |
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| 35 | 35 | | |
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| 36 | 36 | | [(4)] (d) Failure to file a claim within the time prescribed in this section constitutes a waiver of any demand against the state on account of overpayment. |
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| 37 | 37 | | |
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| 38 | 38 | | [(5)(A)] (e) (1) The commissioner, upon receipt of such claim for refund, shall determine whether such claim is valid and, if so, shall notify the State Comptroller of the amount of such refund and the State Comptroller shall draw an order on the State Treasurer for payment of such refund. If the commissioner determines that such claim is not valid, either in whole or in part, he shall mail notice of the proposed disallowance to the claimant in the manner prescribed for service of notice of a deficiency assessment. Sixty days after the date on which it is mailed, a notice of proposed disallowance shall constitute a final disallowance except only for such amounts as to which the claimant has filed, as provided in [subparagraph (B) of this] subdivision (2) of this subsection, a written protest with the commissioner. |
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| 39 | 39 | | |
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| 40 | 40 | | [(B)] (2) On or before the sixtieth day after the mailing of the proposed disallowance, the claimant may file with the commissioner a written protest against the proposed disallowance in which the claimant sets forth the grounds on which the protest is based. If a protest is filed, the commissioner shall reconsider the proposed disallowance and, if the claimant has so requested, may grant or deny the claimant or the claimant's authorized representatives an oral hearing. |
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| 41 | 41 | | |
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| 42 | 42 | | [(C)] (3) The commissioner shall mail notice of his determination to the claimant, which notice shall set forth briefly the commissioner's findings of fact and the basis of decision in each case decided in whole or in part adversely to the claimant. |
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| 43 | 43 | | |
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| 44 | 44 | | [(D)] (4) The action of the commissioner on the claimant's protest shall be final upon the expiration of one month from the date on which he mails notice of his action to the claimant unless within such period the claimant seeks judicial review of the commissioner's determination pursuant to section 12-422. |
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| 45 | 45 | | |
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| 46 | 46 | | Sec. 2. Subsection (a) of section 12-732 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2012, and applicable to claims for refund submitted on or after said date): |
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| 47 | 47 | | |
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| 48 | 48 | | (a) (1) If any tax has been overpaid, the taxpayer may file a claim for refund in writing with the commissioner [within three years from the due date for which such overpayment was made, stating] not later than three years after the return was filed or two years after the date the tax was paid, whichever date is later, or, if no return was filed, not later than two years after the date the tax was paid. Such claim shall state the specific grounds upon which the claim is founded, provided if the commissioner has extended the time for the filing of an income tax return by the taxpayer, the taxpayer may file a claim for refund [within] not later than three years after the date on which the income tax return is filed by the taxpayer or [within] not later than three years after the extended due date of the income tax return, whichever is earlier. If the claim was filed by the taxpayer during such three-year period, the amount of the refund shall not exceed the portion of the tax paid within the period immediately preceding the filing of the claim, equal to three years plus the period of any extension of time for filing the return. If the claim was filed within such two-year period, the amount of the refund shall not exceed the portion of the tax paid during the two years immediately preceding the filing of the claim. Not later than ninety days following receipt of such claim for refund the commissioner shall determine whether such claim is valid and, if so, said commissioner shall notify the State Comptroller of the amount of such refund and the State Comptroller shall draw an order on the State Treasurer in the amount thereof for payment to the taxpayer. For purposes of this section, a claim for refund that is filed before the last day prescribed by law or by a regulation adopted pursuant to law for the filing of an income tax return, determined without regard to any extension of time for filing, shall be deemed to be filed on such last day. To the amount of such refund, there shall be added interest at the rate of two-thirds of one per cent for each month or fraction thereof which elapses between (A) the ninetieth day following receipt by the commissioner of such claim for refund on a permitted form, containing the taxpayer's name, address and Social Security number or federal employer identification number, the required signature, and sufficient required information, whether on the return or on required attachments, to permit the mathematical verification of tax liability shown on the return, and (B) the date of notice by the commissioner that such refund is due. Failure to file a claim within the time prescribed in this section constitutes a waiver of any demand against the state on account of overpayment. If the commissioner determines that such claim is not valid, either in whole or in part, said commissioner shall mail notice of the disallowance in whole or in part of the claim to the claimant and such notice shall set forth briefly the commissioner's findings of fact and the basis of disallowance in each case decided in whole or in part adversely to the claimant. Sixty days after the date on which it is mailed, a notice of proposed disallowance shall constitute a final disallowance except only for such amounts as to which the claimant has filed, as provided in subdivision (2) of this subsection, a written protest with the commissioner. |
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| 49 | 49 | | |
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| 50 | 50 | | (2) On or before the sixtieth day after the mailing of the proposed disallowance, the claimant may file with the commissioner a written protest against the proposed disallowance in which the claimant sets forth the grounds on which the protest is based. If a protest is filed, the commissioner shall reconsider the proposed disallowance and, if the claimant has so requested, may grant or deny the claimant or the claimant's authorized representatives an oral hearing. |
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| 51 | 51 | | |
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| 52 | 52 | | (3) The commissioner shall mail notice of his determination to the claimant, which notice shall set forth briefly the commissioner's findings of fact and the basis of decision in each case decided in whole or in part adversely to the claimant. |
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| 53 | 53 | | |
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| 54 | 54 | | (4) The action of the commissioner on the claimant's protest shall be final upon the expiration of one month from the date on which he mails notice of his action to the claimant unless within such period the claimant seeks judicial review of the commissioner's determination pursuant to section 12-730. |
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| 55 | 55 | | |
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| 56 | 56 | | |
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| 57 | 57 | | |
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| 58 | 58 | | |
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| 59 | 59 | | This act shall take effect as follows and shall amend the following sections: |
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| 60 | 60 | | Section 1 July 1, 2012, and applicable to claims for refunds filed on or after said date 12-425 |
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| 61 | 61 | | Sec. 2 July 1, 2012, and applicable to claims for refund submitted on or after said date 12-732(a) |
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| 62 | 62 | | |
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| 63 | 63 | | This act shall take effect as follows and shall amend the following sections: |
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| 64 | 64 | | |
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| 65 | 65 | | Section 1 |
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| 66 | 66 | | |
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| 67 | 67 | | July 1, 2012, and applicable to claims for refunds filed on or after said date |
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| 68 | 68 | | |
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| 69 | 69 | | 12-425 |
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| 70 | 70 | | |
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| 71 | 71 | | Sec. 2 |
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| 72 | 72 | | |
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| 73 | 73 | | July 1, 2012, and applicable to claims for refund submitted on or after said date |
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| 74 | 74 | | |
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| 75 | 75 | | 12-732(a) |
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| 76 | 76 | | |
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| 77 | 77 | | Statement of Purpose: |
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| 78 | 78 | | |
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| 79 | 79 | | To provide an opportunity for taxpayers to claim a refund for an overpayment of taxes by making the deadline for such claims either three years after the date of filing a return or two years after the date of paying the tax, whichever is later. |
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| 80 | 80 | | |
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| 81 | 81 | | [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] |
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