Tax Type
Individual Income Tax
Description
Credit , Statute of limitations
Topic
Credits
Returns/Payments/Records
Statute of Limitations
Date Issued
11-19-1984
November 19, 1984
Re: § 58-1118 Application: Individual
Dear **********
This will reply to your letter of June 20, 1984 in which you seek relief of individual income tax and interest assessed against your clients, the ***** ("Taxpayer"), for calendar year 1982.
Facts
Taxpayer claims to have filed a return for calendar year 1979, resulting in an overpayment credit to 1980 of ****. The Department has no record that the 1979 return was timely filed. A duplicate 1979 return was received by the Department in December 1983, after expiration of the statute of limitations.
Taxpayer's 1980 return claimed estimated tax payments of $**** whereas the Department's records showed payments of $**** less the $**** overpayment credit Taxpayer claimed on the 1979 return). The ***** overpayment credit was disallowed and an assessment was issued for tax deficiency. Taxpayer paid the assessment.
On the 1981 return Taxpayer claimed estimated payments of $****. The Department's records showed $**** in the estimated payments account. Because the tax liability was $****, no tax was due. Again, however, the overpayment credit of $**** (**** less ****) was reduced to zero.
Taxpayer's 1982 return claimed estimated tax payments of Because the $**** overpayment credit from 1981 had been reduced to zero, the Department's records showed $**** in estimated tax payments, resulting in a tax assessment of $****, plus interest. The assessment was paid in 1983 through the refund-match program.
Taxpayer contests the 1982 assessment on the grounds that the 1979 return was timely filed or, in the alternative, the claim for credit of the overpayment from 1979 was timely made on the 1980 tax return, and that the overpayment from 1979 should have been allowed.
Determination
As you know, the Department maintains a microfilm history of all individual income tax returns, including the dates filed and the dates payments were made, both by name and by social security number. There is no record that a 1979 return was timely filed by ***** under the social security number ***-**-****. We are not suggesting that the return was not mailed. However, without a record that the return was timely filed and without Taxpayer's being able to establish it was timely filed, there is no record of an overpayment credit resulting from 1979 and such credit cannot be allowed. The fact that Taxpayer claimed credit on the 1980 return for the overpayment credit from 1979 does not further, and in fact cuts against, Taxpayer's position, because when Taxpayer received an assessment based on the 1980 return Taxpayer was on notice at that time to inquire why an assessment was being issued instead of an overpayment credit being applied.
Based on the foregoing, the 1982 assessment was proper, and I find no basis to refund Taxpayer's payment or make any adjustment to Taxpayer's overpayment credit.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner