Section 36 Overpayment of tax, interest, or penalty; refunds; persons against whom a default or arrest warrant has been issued

Section 36. If, on the verification of a return or otherwise, the commissioner determines that an overpayment of the full amount of any tax, and interest and penalties thereon, due with respect to such return has been made by the taxpayer, the amount of such overpayment may, in his discretion, be deducted from any unpaid amounts of any other taxes due from the taxpayer. The balance of such overpayment shall be refunded to the taxpayer if it exceeds ten dollars; if such balance is ten dollars or less, it may be refunded in the discretion of the commissioner or upon the application of the taxpayer. Interest upon such refund shall be paid in accordance with section forty.

The commissioner may, at the request of any taxpayer entitled to a refund of taxes paid, make such refund to a bank account designated by the taxpayer to receive such refund.

An application for an abatement or a refund of an overpayment of any tax where a return which is required to be filed has not been timely filed, shall be made and filed, along with the overdue return, within 3 years from the date that the return was due to be filed, without regard to extensions, or within 2 years of the date that the tax was paid, whichever is later. An application for an abatement or refund filed beyond those alternate deadlines shall be denied by the commissioner. An application for refund of and overpayment of any tax where no return is required shall be made by the taxpayer within 2 years from the time such tax was paid. An application for an abatement or refund in any other circumstance, including either where no return is required to be filed, or where the return has been filed in a timely manner, shall be made within the periods provided under section 37.

No person against whom a default or arrest warrant issued by any court of the commonwealth is outstanding may be issued a state tax refund. In lieu of the payment, the taxpayer shall receive notice informing the taxpayer that the refund is being withheld because there is a default or arrest warrant outstanding for such individual and that the refund will be withheld until the individual furnishes sufficient proof that the default or arrest warrant has been recalled or that no such warrant exists. Such refund shall be issued upon presentation of sufficient proof to the commissioner that said warrant has been recalled or that there is no such warrant outstanding for the individual. The commissioner of revenue shall promulgate regulations to implement this section, which shall include the opportunity for a hearing to challenge the existence of the outstanding warrant. If a hearing is requested, the law enforcement agency responsible for the warrant shall be notified of the time, place, date of hearing and the subject of the warrant. An affidavit from the law enforcement agency responsible for the warrant or from the colonel of the state police may be introduced as prima facie evidence of the existence of a warrant without the need for members of that law enforcement agency to attend any hearings held under this section.