2005 Minnesota Statutes - 289A.40 — Limitations on claims for refund.

     289A.40 Limitations on claims for refund. 


    Subdivision 1.    Time limit; generally.  Unless 
 otherwise provided in this chapter, a claim for a refund of an 
 overpayment of state tax must be filed within 3-1/2 years from 
 the date prescribed for filing the return, plus any extension of 
 time granted for filing the return, but only if filed within the 
 extended time, or one year from the date of an order assessing 
 tax under section 270C.33 or an order determining an appeal 
 under section 270C.35, subdivision 8, or one year from the date 
 of a return made by the commissioner under section 270C.33, 
 subdivision 3, upon payment in full of the tax, penalties, and 
 interest shown on the order or return made by the commissioner, 
 whichever period expires later.  Claims for refund, except for 
 taxes under chapter 297A, filed after the 3-1/2 year period but 
 within the one-year period are limited to the amount of the tax, 
 penalties, and interest on the order or return made by the 
 commissioner and to issues determined by the order or return 
 made by the commissioner. 


    In the case of assessments under section 289A.38, 
 subdivision 5 or 6, claims for refund under chapter 297A filed 
 after the 3-1/2 year period but within the one-year period are 
 limited to the amount of the tax, penalties, and interest on the 
 order or return made by the commissioner that are due for the 
 period before the 3-1/2 year period. 


    Subd. 1a.    Individual income taxes; suspension during 
 period of disability.  If the taxpayer meets the requirements 
 for suspending the running of the time period to file a claim 
 for refund under section 6511(h) of the Internal Revenue Code, 
 the time period in subdivision 1 for the taxpayer to file a 
 claim for an individual income tax refund is suspended. 


    Subd. 2.    Bad debt loss.  If a claim relates to an 
 overpayment because of a failure to deduct a loss due to a bad 
 debt or to a security becoming worthless, the claim is 
 considered timely if filed within seven years from the date 
 prescribed for the filing of the return.  A claim relating to an 
 overpayment of taxes under chapter 297A must be filed within 
 3-1/2 years from the date prescribed for filing the return, plus 
 any extensions granted for filing the return, but only if filed 
 within the extended time.  The refund or credit is limited to 
 the amount of overpayment attributable to the loss.  "Bad debt" 
 for purposes of this subdivision, has the same meaning as that 
 term is used in United States Code, title 26, section 166, 
 except that for a claim relating to an overpayment of taxes 
 under chapter 297A the following are excluded from the 
 calculation of bad debt:  financing charges or interest; sales 
 or use taxes charged on the purchase price; uncollectible 
 amounts on property that remain in the possession of the seller 
 until the full purchase price is paid; expenses incurred in 
 attempting to collect any debt; and repossessed property. 


    Subd. 3.    Net operating loss; individuals.  A refund 
 or credit must be allowed for a net operating loss carryback to 
 any taxable year authorized by section 290.095, or section 172 
 of the Internal Revenue Code, but the refund or credit is 
 limited to the amount of overpayment arising from the carryback. 


    Subd. 4.    Property tax refund claims.  A property tax 
 refund claim under chapter 290A is not allowed if the initial 
 claim is filed more than one year after the original due date 
 for filing the claim. 


    Subd. 5.    Purchaser filed refund claims.  A claim for 
 refund of taxes paid on a transaction not subject to tax under 
 chapter 297A, where the purchaser may apply directly to the 
 commissioner under section 289A.50, subdivision 2a, must be 
 filed within 3-1/2 years from the 20th day of the month 
 following the month of the invoice date for the purchase. 


    Subd. 6.    Capital equipment refund claims.  A claim 
 for refund for taxes paid under chapter 297A on capital 
 equipment must be filed within 3-1/2 years from the 20th day of 
 the month following the month of the invoice date for the 
 purchase of the capital equipment.  A claim for refund for taxes 
 imposed on capital equipment under section 297A.63 must be filed 
 within 3-1/2 years from the date prescribed for filing the 
 return, or one year from the date of an order assessing tax 
 under section 289A.37, subdivision 1, upon payment in full of 
 the tax, penalties, and interest shown on the order, whichever 
 period expires later. 


    HIST: 1990 c 480 art 1 s 20; 1991 c 291 art 6 s 46; 1992 c 511 
 art 6 s 19; 1993 c 375 art 8 s 14; art 10 s 18; 1994 c 587 art 1 
 s 24; 1995 c 264 art 13 s 11; 1996 c 471 art 2 s 7; 1997 c 84 
 art 3 s 1; art 6 s 24; 1999 c 243 art 16 s 15,16; 2001 c 7 s 57; 
 2003 c 127 art 1 s 4; 2005 c 151 art 2 s 17; art 7 s 3-5