Section 45IAC15-9-2. Statute of limitations for refunds

   (a) If the department finds that a taxpayer has paid more tax than is legally due for a taxable period, the department shall apply the excess against any amount of that same tax that is assessed and is currently due. Any assessment by the department which has not been protested within sixty (60) days of the notice of proposed assessment shall be considered currently due.

  (b) The department has no legal method of generating a claim for refund. A claim for refund can only be initiated pursuant to IC 6-8.1-9-1.

EXAMPLE

A taxpayer is audited by the department for the tax period 19X3. This audit results in an overpayment of tax. The department has no legal authority to automaticaly [sic.] refund or credit this overpayment to the taxpayer. Instead, the taxpayer must file a claim for refund as prescribed in IC 6-8.1-9-1 and 45 IAC 15-9-1.

  (c) If a taxpayer claims a refund for a period which is closed to issuance of a proposed assessment as defined in IC 6-8.1-5-2, the department may still examine the period in order to determine that the reasons set forth by the taxpayer for the refund are valid. The department may adjust the period to the extent necessary to make the issues raised by the refund conform to the applicable law.

EXAMPLE

A taxpayer claims a refund arising from alleged exempt sales in interstate commerce under the gross income tax. The tax period, 19X1, is open to a refund claim under IC 6-8.1-9-1 but is closed to assessment under IC 6-8.1-5-2. The department may still examine the 19X1 tax period in order to determine whether the interstate sales are exempt and were properly reported.

EXAMPLE

A taxpayer claims a refund arising from a net operating loss carryback. The carryback years are open to refund but not to assessment. The department may still examine the closed years to determine whether the net operating loss is valid and was properly calculated. This examination includes any adjustments to properly reflect the Indiana adjusted gross income for the carryback year.

  (d) When filing a claim for refund with the department the taxpayer's claim shall set forth:

(1) the amount of refund claimed;

(2) a sufficiently detailed explanation of the basis of the claim such that the department may determine its correctness;

(3) the tax period for which the overpayment is claimed; and

(4) the year and date the overpayment was made.

The claim for refund shall be filed on a form prescribed by the department. (Department of State Revenue; 45 IAC 15-9-2; filed Oct 1, 1987, 1:30 pm: 11 IR 543)