§ 44-30-87 - Limitations on credit or refund.
SECTION 44-30-87
§ 44-30-87 Limitations on credit orrefund. – (a) General. Claim for credit or refund of an overpayment of tax shallbe filed by the taxpayer within three (3) years from the time the return wasfiled or two (2) years from the time the tax was paid, whichever of theseperiods expires the later, or if no return was filed by the taxpayer, withintwo (2) years from the time the tax was paid. If the claim is filed within thethree (3) year period, the amount of the credit or refund shall not exceed theportion of the tax paid within the three (3) year period. If the claim is notfiled within the three (3) year period, but is filed within the two (2) yearperiod, the amount of the credit or refund shall not exceed the portion of thetax paid during the two (2) years immediately preceding the filing of theclaim. Except as otherwise provided in this section, if no claim is filed, theamount of a credit or refund shall not exceed the amount which would beallowable if a claim has been filed on the date the credit or refund is allowed.
(b) Extension of time by agreement. If an agreementunder § 44-30-83(b)(2) extending the period for assessment of tax is madewithin the period prescribed in subsection (a) of this section for the filingof a claim for credit or refund, the period for filing a claim for credit orrefund, or for making credit or refund if no claim is filed, shall not expireprior to six (6) months after the expiration of the period within which anassessment may be made pursuant to the agreement or any extension of itthereof. The amount of the credit or refund shall not exceed the portion of thetax paid after the execution of the agreement and before the filing of theclaim or the making of the credit or refund, as the case may be, plus theportion of the tax paid within the period which would be applicable undersubsection (a) of this section if a claim had been filed on the date theagreement was executed.
(c) Notice of change or correction of federal income.If a taxpayer is required by § 44-30-59 to file a report of a change orcorrection or amended return decreasing the federal taxable income reported onhis or her federal income tax return, or to report a change or correction whichis treated in the same manner as if it were an overpayment for federal incometax purposes, claim for credit or refund of an overpayment of tax shall befiled by the taxpayer within two (2) years from the time the report of thechange or correction or the amended return was required to be filed. If areport or amended return required by § 44-30-59 is not filed within theninety (90) day period specified in that section, interest on any resultingrefund or credit shall cease to accrue on the ninetieth day. The amount of thecredit or refund shall not exceed the amount of the reduction in Rhode Islandpersonal income tax attributable to the federal change, correction, or itemsamended on the taxpayer's amended federal income tax return. This subsectionshall not affect the time within which or the amount for which a claim forcredit or refund may otherwise be filed.
(d) Overpayment attributable to net operating losscarryback. If an overpayment is attributable to the application to thetaxpayer of a net operating loss carryback, a claim for credit or refund shallbe filed within three (3) years from the time the return was due for thetaxable year of the loss.
(e) Failure to file claim within prescribed period. Nocredit or refund shall be allowed or made, except as provided in subsection (f)of this section, after the expiration of the applicable period of limitationunless a claim for credit or refund is filed by the taxpayer within that periodor unless the tax administrator determines under subsection (f) of this sectionthat the taxpayer has made an overpayment. Any later credit shall be void andany later refund erroneous. No period of limitations specified in any other lawshall apply to the recovery by a taxpayer of moneys paid in respect of RhodeIsland personal income tax.
(f) Effect of filing administrative petition. If anotice of deficiency for a taxable year has been mailed to the taxpayer under§ 44-30-81 and if the taxpayer files a timely petition with the taxadministrator, the tax administrator may determine that the taxpayer has madean overpayment for that year, whether or not a deficiency is also determinedfor that year, and no separate claim for credit or refund for that year shallbe filed and no separate credit or refund for that year shall be allowed ormade, except:
(1) As to overpayment determined by a decision of the taxadministrator which has become final;
(2) As to any amount collected in excess of an amountcomputed in accordance with the decision of the tax administrator which hasbecome final;
(3) As to any amount collected after the period of limitationupon the making of levy for collection has expired; and
(4) As to any amount claimed as a result of a change orcorrection described in subsection (c) of this section.
(g) Limit on amount of credit or refund. The amount ofoverpayment determined under subsection (f) of this section shall, when thedecision of the tax administrator has become final, be credited or refunded inaccordance with § 44-30-86(a) and shall not exceed the amount of tax whichthe tax administrator determines as part of his or her decision was paid:
(1) After the mailing of the notice of deficiency; or
(2) Within the period which would be applicable undersubsection (a), (b), or (c) of this section, if on the date of the mailing ofthe notice of deficiency a claim had been filed, whether or not filed, statingthe grounds upon which the tax administrator finds that there is an overpayment.
(h) Early return. For purposes of this section, anyreturn filed before the last day prescribed for the filing of the return isconsidered as filed on that last day, determined without regard to anyextension of time granted the taxpayer.
(i) Prepaid income tax. For purposes of this section,any income tax withheld from the taxpayer during any calendar year and anyamount paid as estimated income tax for a taxable year is deemed to have beenpaid by the taxpayer on the fifteenth day of the fourth month following theclose of his or her taxable year with respect to which the amount constitutescredit or payment.
(j) Return and payment of withholding tax.Notwithstanding subsection (h) of this section, for purposes of this sectionwith respect to any withholding tax:
(1) If a return for any period ending with or within acalendar year is filed before April 15 of the succeeding calendar year, thereturn is considered filed on April 15 of the succeeding calendar year; and
(2) If a tax with respect to remuneration paid during anyperiod ending with or within a calendar year is paid before April 15 of thesucceeding calendar year, the tax is considered paid on April 15 of thesucceeding calendar year.
(k) Cross reference. See § 44-30-86(c), barringrefund of overpayment credited against tax of a succeeding year.