2005 Idaho Code - 63-3072 — CREDITS AND REFUNDS

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 30
                                  INCOME TAX
    63-3072.  CREDITS AND REFUNDS. (a) Subject to the provisions of
subsections (b), (c) and (h) of this section, where there has been an
overpayment of the tax imposed by the provisions of this chapter, the amount
of such overpayment shall be credited against any tax administered by the
state tax commission which tax is then due from the taxpayer, and any balance
of such excess shall be refunded to the taxpayer.
    (b)  Except in regard to amounts withheld as provided in section 63-3035,
63-3035A or 63-3036, Idaho Code, or amounts paid as estimated payments under
section 63-3036A, Idaho Code, a claim for credit or refund of tax, penalties,
or interest paid shall be made within the later of three (3) years of the due
date of the return, without regard to extensions, or three (3) years from the
date the return was filed. However, with regard to remittances received with
an extension of time to file, or a tentative return, a claim for credit or
refund of such remittances shall be made within three (3) years from the due
date of the return without regard to extensions.
    (c)  With regard to amounts withheld as provided in section 63-3035,
63-3035A or 63-3036, Idaho Code, or amounts paid as estimated payments under
section 63-3036A, Idaho Code, a claim for credit or refund shall be made
within three (3) years from the due date of the return, without regard to
extensions, for the taxable year in respect to which the tax was withheld or
paid.
    (d)  Notwithstanding any other provisions of this section, when Idaho
taxable income and/or tax credits for any taxable year have been adjusted as a
result of a final federal determination, the period of limitations for
claiming a refund or credit of tax, penalties, or interest shall be reopened
and shall not expire until the later of one (1) year from the date of delivery
of the final federal determination to the taxpayer by the internal revenue
service, three (3) years from the due date of the return, without regard to
extensions, or three (3) years from the date the return was filed. For
purposes of this subsection, the term "final federal determination" shall mean
the final resolution of all issues which were adjusted by the internal revenue
service. When the final federal determination is submitted, the taxpayer shall
also submit copies of all schedules and written explanations provided by the
internal revenue service. Upon the expiration of the period of limitations as
provided in subsections (b) and (h) of this section, only those specific items
of income, deductions, gains, losses or credits which were adjusted in the
final federal determination shall be subject to adjustment for purposes of
recomputing Idaho income, deductions, gains, losses, credits, and the effect
of such adjustments on Idaho allocations and apportionments.
    (e)  If a claim for credit or refund relates to an overpayment
attributable to a net operating loss carryback, in lieu of the period of
limitations prescribed in subsection (b) of this section, the period shall be
that period which ends with the expiration of the fifteenth day of the
fortieth month following the end of the taxable year of the net operating loss
which results in such carryback.
    (f)  If an adjustment, which was made within the period of limitations as
provided in this section, affects the amount of tax credit, net operating
loss, or capital loss, claimed in a taxable year other than the tax year in
which the adjustment is made, then adjustments to the credit, net operating
loss, or capital loss, claimed in such other tax year may be made and a claim
for credit or refund of tax, penalties or interest may be made even though
such claim would otherwise be barred under the provisions of this section.
    (g)  In the case of a duplicate return filed under section 63-217(1)(b),
Idaho Code, the limitations under this section shall be the later of one (1)
year from the filing of the duplicate return or the date otherwise applicable
under this section.
    (h)  Prior to the expiration of the time prescribed in this section for
credit or refund of any tax imposed by the provisions of this chapter, both
the state tax commission or its delegate or deputy and the taxpayer may
consent in writing to extend such period of time. The period so agreed upon
may be extended by subsequent agreements in writing made before the expiration
of the period previously agreed upon. When a pass-through entity extends the
period of limitations in accordance with the provisions of this subsection the
period of limitations for the other taxpayers is automatically extended for
the same period for the purpose of claiming a credit or refund of tax,
penalties or interest by the other taxpayers reflecting the pass-through
entity adjustments.
    (i)  The expiration of the period of limitations as provided in this
section shall be suspended for the time period between the issuance by the
state tax commission of a notice under either section 63-3045 or 63-3065,
Idaho Code, and the final resolution of any proceeding resulting from the
notice.
    (j)  Appeal of a state tax commission decision denying in whole or in part
a claim for credit or refund shall be made in accordance with and within the
time limits prescribed in section 63-3049, Idaho Code.
    (k)  For purposes of this section, "return" includes a notice of
deficiency determination issued by the state tax commission when no return was
filed by the taxpayer. Such a return is deemed filed on the date the taxes
determined by the state tax commission are assessed.