2006 Utah Code - 59-10-529 — Overpayment of tax -- Credits -- Refunds.

     59-10-529.   Overpayment of tax -- Credits -- Refunds.
     (1) In cases where there has been an overpayment of any tax imposed by this chapter, the amount of overpayment is credited as follows:
     (a) against any income tax then due from the taxpayer;
     (b) against:
     (i) the amount of any judgment against the taxpayer, including one ordering the payment of a fine or of restitution to a victim under Title 77, Chapter 38a, Crime Victims Restitution Act, obtained through due process of law by any entity of state government; or
     (ii) any child support obligation which is due or past due, as determined by the Office of Recovery Services in the Department of Human Services and after notice and an opportunity for an adjudicative proceeding, as provided in Subsection (2); or
     (c) as bail, to ensure the appearance of the taxpayer before the appropriate authority to resolve an outstanding warrant against the taxpayer for which bail is due, if a court of competent jurisdiction has not approved an alternative form of payment. This bail may be applied to any fine or forfeiture which is due and related to a warrant which is outstanding on or after February 16, 1984, and in accordance with Subsections (3) and (4).
     (2) (a) Subsection (1)(b)(ii) may be exercised only if the Office of Recovery Services has sent written notice to the taxpayer's last-known address or the address on file under Section 62A-11-304.4, stating:
     (i) the amount of child support that is due or past due as of the date of the notice or other specified date;
     (ii) that any overpayment shall be applied to reduce the amount of due or past-due child support specified in the notice; and
     (iii) that the taxpayer may contest the amount of past-due child support specified in the notice by filing a written request for an adjudicative proceeding with the office within 15 days of the notice being sent.
     (b) The Office of Recovery Services shall establish rules to implement this Subsection (2), including procedures, in accordance with the other provisions of this section, to ensure prompt reimbursement to the taxpayer of any amount of an overpayment of taxes which was credited against a child support obligation in error, and to ensure prompt distribution of properly credited funds to the obligee parent.
     (3) Subsection (1)(c) may be exercised only if:
     (a) a court has issued a warrant for the arrest of the taxpayer for failure to post bail, appear, or otherwise satisfy the terms of a citation, summons, or court order; and
     (b) a notice of intent to apply the overpayment as bail on the issued warrant has been sent to the person's current address on file with the commission.
     (4) (a) The commission shall deliver the overpayment applied as bail to the court that issued the warrant of arrest. The clerk of the court is authorized to endorse the check or commission warrant of payment on behalf of the payees and deposit the monies in the court treasury.
     (b) The court receiving the overpayment applied as bail shall order withdrawal of the warrant for arrest of the taxpayer if the case is one for which a personal appearance of the taxpayer is not required and if the dollar amount of the overpayment represents the full dollar amount of bail. In all other cases, the court receiving the overpayment applied as bail is not required to order the withdrawal of the warrant of arrest of the taxpayer during the 40-day period,

and the taxpayer may be arrested on the warrant. However, the bail amount shall be reduced by the amount of tax overpayment received by the court.
     (c) If the taxpayer fails to respond to the notice described in Subsection (3), or to resolve the warrant within 40 days after the notice was sent under that subsection, the overpayment applied as bail is forfeited and notice of the forfeiture shall be mailed to the taxpayer at the current address on file with the commission. The court may then issue another warrant or allow the original warrant to remain in force if:
     (i) the taxpayer has not complied with an order of the court;
     (ii) the taxpayer has failed to appear and respond to a criminal charge for which a personal appearance is required; or
     (iii) the taxpayer has paid partial but not full bail in a case for which a personal appearance is not required.
     (5) If the alleged violations named in the warrant are later resolved in favor of the taxpayer, the bail amount shall be remitted to the taxpayer.
     (6) Any balance shall be refunded immediately to the taxpayer.
     (7) (a) If a refund or credit is due because the amount of tax deducted and withheld from wages exceeds the actual tax due, a refund or credit may not be made or allowed unless the taxpayer or his legal representative files with the commission a tax return claiming the refund or credit:
     (i) within three years from the due date of the return, plus the period of any extension of time for filing the return provided for in Subsection (7)(c); or
     (ii) within two years from the date the tax was paid, whichever period is later.
     (b) Except as provided in Subsection (7)(d), in other instances where a refund or credit of tax which has not been deducted and withheld from income is due, a credit or refund may not be allowed or made after three years from the time the tax was paid, unless, before the expiration of the period, a claim is filed by the taxpayer or his legal representative.
     (c) Beginning on July 1, 1998, the commission shall extend the period for a taxpayer to file a claim under Subsection (7)(a)(i) if:
     (i) the time period for filing a claim under Subsection (7)(a) has not expired; and
     (ii) the commission and the taxpayer sign a written agreement:
     (A) authorizing the extension; and
     (B) providing for the length of the extension.
     (d) Notwithstanding Subsection (7)(b), beginning on July 1, 1998, the commission shall extend the period for a taxpayer to file a claim under Subsection (7)(b) if:
     (i) the three-year period under Subsection (7)(b) has not expired; and
     (ii) the commission and the taxpayer sign a written agreement:
     (A) authorizing the extension; and
     (B) providing for the length of the extension.
     (8) The fine and bail forfeiture provisions of this section apply to all warrants and fines issued in cases charging the taxpayer with a felony, a misdemeanor, or an infraction described in this section which are outstanding on or after February 16, 1984.
     (9) If the amount allowable as a credit for tax withheld from the taxpayer exceeds the tax to which the credit relates, the excess is considered an overpayment.
     (10) A claim for credit or refund of an overpayment which is attributable to the application to the taxpayer of a net operating loss carryback shall be filed within three years from

the time the return was due for the taxable year of the loss.
     (11) If there has been an overpayment of the tax which is required to be deducted and withheld under Section 59-10-402, a refund shall be made to the employer only to the extent that the amount of overpayment was not deducted and withheld by the employer.
     (12) If there is no tax liability for a period in which an amount is paid as income tax, the amount is an overpayment.
     (13) If an income tax is assessed or collected after the expiration of the applicable period of limitation, that amount is an overpayment.
     (14) (a) If a taxpayer is required to report a change or correction in federal taxable income reported on his federal income tax return, or to report a change or correction which is treated in the same manner as if it were an overpayment for federal income tax purposes, or to file an amended return with the commission, a claim for credit or refund of any resulting overpayment of tax shall be filed by the taxpayer within two years from the date the notice of the change, correction, or amended return was required to be filed with the commission.
     (b) If the report or amended return is not filed within 90 days, interest on any resulting refund or credit ceases to accrue after the 90-day period.
     (c) The amount of the credit or refund may not exceed the amount of the reduction in tax attributable to the federal change, correction, or items amended on the taxpayer's amended federal income tax return.
     (d) Except as specifically provided, this section does not affect the amount or the time within which a claim for credit or refund may be filed.
     (15) No credit or refund may be allowed or made if the overpayment is less than $1.
     (16) The amount of the credit or refund may not exceed the tax paid during the three years immediately preceding the filing of the claim, or if no claim is filed, then during the three years immediately preceding the allowance of the credit or refund.
     (17) In the case of an overpayment of tax by the employer under the withholding provisions of this chapter, a refund or credit shall be made to the employer only to the extent that the amount of the overpayment was not deducted and withheld from wages under the provisions of this chapter.
     (18) If a taxpayer who is entitled to a refund under this chapter dies, the commission may make payment to the duly appointed executor or administrator of the taxpayer's estate. If there is no executor or administrator, payment may be made to those persons who establish entitlement to inherit the property of the decedent in the proportions set out in Title 75, Utah Uniform Probate Code.
     (19) Where an overpayment relates to adjustments to net income referred to in Subsection 59-10-536(3)(c), credit may be allowed or a refund paid any time before the expiration of the period within which a deficiency may be assessed.
     (20) An overpayment of a tax imposed by this chapter shall accrue interest at the rate and in the manner prescribed in Section 59-1-402.

Amended by Chapter 35, 2002 General Session