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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 602 By: Rader
AS INTRODUCED
An Act relating to tax returns; amending 68 O.S.
2021, Sections 2373 and 2375, which relate to payment
of refunds, extensions, and delinqu ency and
deficiency of payments; requiring certain claims be
made in the form prescribed by the Oklahoma Tax
Commission; limiting claims made to within a period
of certain date; prohibiting refund for clai ms made
after certain period; providing exception; modifying
limitation on certain amount of refund to taxes paid
in certain preceding period; deleting requirement
that certain informati on filed constitutes a claim;
prohibiting application of limitation to certain
claims filed; modifying date requiring tax payer to
remit income tax due; excluding extensions from date
taxes become delinquent; updating statutory language;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2373, is
amended to read as follows:
Section 2373. A. Any claim for refund filed pursuant to this
section must be made on a return, in t he form prescribed by the
Oklahoma Tax Commission.
B. Any claim for refund of an overpay ment of any tax imposed by
Section 2355 of this title must be made within three (3) years from
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the due date of the return, including the period of any extension of
time for filing a return, or two (2) year s from the payment of the
tax liability, whichever period expires later, or, if no return was
filed by the taxpayer, within two (2) years from the time the tax
was paid.
C. Except as provided in subsection H of Sectio n 2375 of this
title, no refund shall be allowed or made after the expiration of
the period of limitation prescribed in subsection B of this section
for the filing of a claim for refund . If a claim for refund is
filed during the period prescribed in subse ction B of this section,
the amount of the refund, if any, shall not exceed the amount of tax
paid within the period, immediately preceding the filing of the
claim, equal to three (3) y ears plus the period of any extension of
time for filing a return. If the claim was not filed within the
three-year period prescribed in subsection B of this section, the
refund shall not exceed the portion of the tax paid during the two
(2) years immediately preceding the filing of the claim.
D. If, upon any revision or adjustment, including overpayment
or illegal payment on account of income derived from tax -exempt
Indian land, any refund is found to be due any taxpayer, it shall be
paid out of the “Income Tax Withholding Refund Account ”, created by
Section 2385.16 of t his title, in the same manner as refunds are
paid pursuant to such section. The information filed, reflecting
the revision or adjustment, shall constitute the claim for refund.
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E. Except as provided in subsection H of Section 2375 of this
title, the amount of the refund shall not exceed the po rtion of the
tax paid during the three (3) years imm ediately preceding the filing
of the claim, or, if no claim was filed, then during the three (3)
years immediately preceding the allowance of the refund. However,
this The three-year limitation set forth in subsection C of t his
section shall not apply to the amount of refunds payable upon claims
filed by members of federally recognized Indian tri bes or the United
States on behalf of its Ind ian wards or former Indian wards, to
recover taxes illegally colle cted from tax-exempt lands. In the
case of any refund to a member of a federally recognized Indian
tribe or to the United States on behalf of it s Indian wards or
former Indian wards, to rec over taxes illegally colle cted on bonus
payments from oil and gas leases located on tax -exempt Indian lands
pursuant to this section, the Tax Commission shall pay interest on
all refunds issued after January 1, 1996, at the rate of six percent
(6%) per annum from the date of paymen t by the taxpayer to the date
of the refund.
F. In cases where the Tax Commission and the t axpayer have
signed a consent, as provided by law, extending the period during
which the tax may be assessed, the period during which the taxp ayer
may file a claim for refund or during which an allowance for a
refund may be made shall be automatically exte nded to the final date
fixed by such consent plus thirty (30) days.
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G. The Oklahoma Tax Comm ission may authorize the use of direct
deposit in lieu of refund checks for electronically filed income tax
returns.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 2375, is
amended to read as follows:
Section 2375. A. At the time of transmitting the return
required hereunder to the Oklahoma Tax Commis sion On the original
due date of the return, not including any extensions , the taxpayer
shall remit therewith to the Tax Commission the amount of tax due
under the applicable provisions of Section 2351 et seq. of this
title. Failure to pay such tax on or before the date the return is
due, not including any extensions, shall cause the tax to beco me
delinquent. If the return is filed electronically, the amount of
the tax due pursuant to the provisions of this article shall be due
on or before the twentieth day of April following the close of the
taxable year regardless of when the return is electr onically filed.
The tax shall be deemed delinquent if unpaid aft er the twentieth day
of April if the return is electronically filed. Provided, if the
Internal Revenue Code provides for a later due date for returns of
individuals, the Tax Commission shall accept payments made with
returns filed by individuals by such d ate and such payments shall be
considered as timely paid.
B. If any tax due under Section 2351 et seq. of this title,
except a deficiency determined under Section 221 of this title, is
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not paid on or before the date such tax becomes delinquent, a
penalty of five percent (5%) of the total amount of the tax due
shall be added thereto, collected , and paid. However, the Tax
Commission shall not collect the penalty assessed if the taxpayer
remits the tax and interest within sixty (60) days of the mailing of
a proposed assessment or volun tarily pays the tax upon the filing of
an amended return.
C. If any part of deficiency, arbitrary , or jeopardy assessment
made by the Tax Commission is based upon or occasioned by the
refusal of any taxpayer to file with the Tax Commission any return
as required by Section 2351 et seq. of this title, within ten (10)
days after a written demand for such report or r eturn has been
served upon any taxpayer by the Tax C ommission by registered letter
with a return receipt attached, the Tax Commission may assess and
collect, as a penalty, twenty -five percent (25%) of the amount of
the assessment. In the exercise of the a uthority granted by
subsection C of Section 223 and Section 224 of this title, the Tax
Commission shall assess the tax as an estimated tax on the basis of
its own determination of the Oklahoma taxable income of the
taxpayer, to be adjusted if and when Okla homa taxable income is
ascertained under the provisi ons of Section 2351 et seq. of this
title.
D. If any part of any d eficiency was due to negli gence or
intentional disregard, without the intent to defraud, then ten
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percent (10%) of the total amount of th e deficiency, in addition to
such deficiency, includ ing interest as authorized by law, shall be
added, collected, and paid.
E. If any part of an y deficiency was due to fraud with intent
to evade tax, then fifty perc ent (50%) of the total amount of the
deficiency, in addition to such deficiency, including i nterest as
herein provided, shall be added, collected , and paid.
F. The provisions in this s ection for penalties shall supersede
all other provisions for penalties on income taxes. The provisions
in this section for penalties shall supersede the provisio ns in the
Uniform Tax Procedure Code, Section 201 et seq. of this tit le, only
to the extent of conflict between such provisions and the penalty
provisions in this s ection.
G. All taxes, penalties , and interest levied under Section 2351
et seq. of this title must be paid to the Tax Commission at Oklahoma
City, in the form or remittance required by and payable to it.
H. 1. The period of time prescribed in Section 22 3 of this
title, in which the procedures for the assessment of income tax may
be commenced by the Tax Commission, shall be tolled and extended
until the amount of taxable income for any year of a taxpayer under
the Internal Revenue Code has been finally de termined under
applicable federal law an d for the additional period of time
hereinafter provided in this subsection.
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2. If, in such final determination, the amou nt of taxable
income for any year of a taxpayer under the Internal Revenue Code is
changed or corrected from the amounts included in t he federal return
of the taxpayer for such year and such change or correction affects
the Oklahoma taxable income of the t axpayer for such year, the
taxpayer, within one (1) year after such final determination of the
corrected taxable income, shall file an amended return under Section
2351 et seq. of this t itle reporting the corrected Oklahoma taxable
income, and the Tax Comm ission shall make asses sment or refund
within two (2) years from the date the return required by this
paragraph is filed and not there after, unless a waiver is agreed to
and signed by the Tax Commission and the taxpayer.
3. In the event of failure by a ta xpayer to comply with t he
provisions of paragraph 2 of this subsection, the statute of
limitations shall be tolled for a period of tim e equal to the time
between the date the amended ret urn under this subsection is
required until such return is actually fu rnished.
4. In administering the provisions of this subsection, the Tax
Commission shall have the authority to audit each and every i tem of
income, deduction, credit , or any other matter related to the return
where such items or matters relate to allocatio n or apportionment
between the State of Oklahoma this state and some other state or the
federal government even if such items or matt ers were not affected
by revisions made in such fina l determination. Where such items or
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matters do not relate to allocation or appor tionment between the
State of Oklahoma this state and some other state or the fede ral
government, the Tax Commission shall be bound by the revisions made
in such final determ ination.
5. The provisions of this subsection shall be effective on
September 1, 1993, and e xcept in the case of tax years which are the
subject of closing, settle ment, or resolution agreements entered
into by taxpayers and the Tax Commission, keep open a ll tax years
beginning after June 30, 1988, and all tax years beginning on or
before June 30, 1988, for which extensions of the statute of
limitations have been exe cuted by the taxpayer, but only to the
extent such extensions remain open on the date of ena ctment hereof.
SECTION 3. This act shall become effective November 1, 2023.
59-1-256 QD 1/17/2023 7:13:17 PM