Sec. 12-225. Supplemental and amended returns. Refund claim.
Sec. 12-225. Supplemental and amended returns. Refund claim. (a) Any company which, either intentionally or through error, fails to include in its return items of
income or invested capital or which claims unlawful deductions therefrom shall make
a supplemental return disclosing such facts within three years from the due date of the
return and, within thirty days thereafter, shall pay to the commissioner any tax due
thereon, with interest upon the amount of such additional tax at the rate of one per
cent per month or fraction thereof from the date when the original tax became due and
payable.
(b) (1) Any company which fails to include in its return items of deductions or
includes items of nontaxable income or makes any other error in such return may, within
three years from the due date of the return, file with the commissioner an amended
return, together with a claim for refund of taxes overpaid as shown by such amended
return. 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. The commissioner
shall, within one hundred eighty days of the receipt of such claim, determine whether
such claim is valid and, if so, the 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 such company. If the commissioner
determines that such claim is not valid, either in whole or in part, he shall mail notice
of the proposed disallowance in whole or in part of the claim to the company which 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 amount as to which the company has filed, as provided
in subdivision (2) of this subsection, a written protest with the commissioner. For the
purposes of computing any refund due or adjusting net income as a result of the inclusion
of income, the taxation of which by the state of Connecticut is prohibited by federal
law, including the Constitution of the United States, as applied, no expenses related to
such income shall be deducted in computing net income under this chapter.
(2) On or before the sixtieth day after the mailing of the proposed disallowance,
the company may file with the commissioner a written protest against the proposed
disallowance in which it 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 company has so requested, may grant or deny the company or its authorized representatives
an oral hearing.
(3) The commissioner shall mail notice of his determination to the company, 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 company.
(4) The action of the commissioner on the company's protest shall be final upon
the expiration of one month from the date on which he mails notice of his action to the
company unless within such period the company seeks judicial review of the commissioner's determination pursuant to section 12-237.
(1949 Rev., S. 1906; 1949, S. 1099d; 1959, P.A. 66, S. 1; 1967, P.A. 82; 1969, P.A. 257, S. 1; 388, S. 2; P.A. 76-322,
S. 2, 27; P.A. 80-307, S. 6, 31; P.A. 81-411, S. 14, 42; P.A. 84-423, S. 1; P.A. 93-74, S. 60, 67; May Sp. Sess. P.A. 94-4,
S. 30, 85; P.A. 95-2, S. 19, 36, 37; P.A. 95-160, S. 64, 69; P.A. 96-139, S. 3, 13; P.A. 97-243, S. 52, 67.)
History: 1959 act changed interest rate; 1967 act added provisions re amended returns; 1969 acts changed time within
which commissioner must act on amended return from 30 to 180 days and increased interest on overdue taxes from 0.5%
to 0.75% per month; P.A. 76-322 increased interest rate to 1% per month; P.A. 80-307 increased interest temporarily to
1.25% for taxes due on or after July 1, 1980, but not later than June 30, 1981; P.A. 81-411 continued interest on delinquent
taxes at 1.25% per month, effective July 1, 1981, and applicable to taxes becoming due on or after that date; P.A. 84-423
increased rate of interest applicable to amount of tax due on a supplemental return from 1.25% to 1.66% per month; P.A.
93-74 decreased interest rate from 1.66% to 1.25%, effective May 19, 1993, and applicable to taxes due and payable on
and after January 1, 1994; May Sp. Sess. P.A. 94-4 reduced interest rate from 1.25% to 1%, effective July 1, 1995, and
applicable to taxes due and owing on or after said date (Revisor's note: In refund provision the words "their claim" were
replaced editorially by the Revisors with "its claim" to correct grammatical error); P.A. 95-2, S. 19 divided section into
Subsecs. (a) and (b) and amended Subsec. (b) to add provision re expenses related to computing refund due or adjusting
net income as a result of inclusion of income, the taxation of which is prohibited by federal law, effective March 8, 1995;
P.A. 95-160 revised effective date of May Sp. Sess. P.A. 94-4 but without affecting this section; P.A. 96-139 made no
substantive changes; P.A. 97-243 amended Subsec. (b) to provide for an administrative hearing with the department before
taking an appeal to the Superior Court, to establish the time for filing a claim and to provide that failure to file within the
time prescribed constitutes a waiver of any demand against the state on account of overpayment, effective July 1, 1997,
and applicable to claims for refund filed on or after said date.
History discussed. 153 C. 111. Cited. 178 C. 243.
Cited. 44 CS 90.