Tax Type
Individual Income Tax
Description
Overpayments of individual income taxes
Topic
Payment and Refund
Taxpayers' Remedies
Date Issued
12-20-1982
December 20, 1982
Re: § 58-1118 Application
1978 and 1979 Individual-Income Taxes
Dear ***********
This is in response to your letter of November 1, 1982, requesting refunds, with interest, of 1978 and 1979 overpayments of individual income taxes. The overpayments were ******** for 1978 and ********** for 1979.
FACTS
The taxpayer made overpayments of 1977 estimated income taxes by $*******and, at his request, the department applied this amount to his 1978 estimated payments. However, the taxpayer did not include that amount in his computation of his 1978 income tax filed on or before May 1, 1979, thereby not generating a refund.
Again, in 1978, the taxpayer made overpayments of his 1978 estimated income taxes by $ ********* and, at his request, the department applied this amount to his 1979 estimated payments. Again, however, the taxpayer did not include that amount in his computation of his 1979 income tax filed -on or before May 1, 1980, thereby not generating a refund.
These same events occurred in 1980. However, because a mathematical error was detected in the 1980 return filed on or before May 1, 1981, the department recalculated the amount of overpayment and, instead of continuing to apply it to the current year's estimated taxes (1981), issued a refund to the taxpayer. The taxpayer mistakenly thought this refund represented his overpayments, plus interest, for 1978 and 1979. Also, since he had instructed that the 1980 overpayment be credited to his 1981 estimated taxes, he assumed this had been done and, therefore underpaid his 1981 taxes. The department issued an assessment, whereupon the taxpayer has uncovered the events herein described. The taxpayer has paid the 1981 assessment and request that the 1978 and 1979 overpayments be refunded to him.
DETERMINATION
A refund of any 1977 estimated tax overpayment is barred by the three year Statute of Limitations under § 58-1118.1. The taxpayer must have requested the refund within three years of the filing date of his 1978 income tax return, May 1, 1979, since 1978 was the year for which the 1977 overpayments were credited. However, a refund of the $ *********overpayment of 1978 estimated taxes would not be barred since the taxpayer has now requested it within three years from the filing date of his 1979 income tax return, May 1, 1980, taxable year 1979 being the year for which the 1978 overpayments were credited.
Therefore, the department grants your application for a refund of $ ***** plus interest, the overpayment of 1979 income taxes. However, a refund of the 1978 overpayment is barred by the three-year statute. I have no authority to waive this statute.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner