HB 533 provides a procedure for a taxpayer to seek review of the DOR’s conclusion that the statute of limitations bars a refund claim. This legislation requires the DOR to deny a refund and send the taxpayer a notice of refund denial when it determines that an amended return or a claim for refund is filed outside the statute of limitations for refunds. In addition, the legislation provides a taxpayer whose request for refund was denied because the determination that the amended return or claim for refund was file outside the statute of limitations a right to contest that determination.

A taxpayer that believes it has overpaid its taxes may request a refund of the overpayment by taking one of the following actions within the statute of limitations for obtaining a refund:

1.    File an amended return reflecting an overpayment.

2.    File a claim for refund.

The general statute of limitations for obtaining a refund of an overpayment is the later of 3 years after the due date of the return or 2 years after payment of the tax. If a refund is requested within the statute of limitations and the DOR denies or reduces the refund, the taxpayer may request an administrative review. If the DOR issues a Notice of Final Determination that sustains the denial or reduction, the taxpayer may seek judicial review.

This new law includes two provisions that allow a taxpayer to seek judicial review of the DOR’s determination that a request for refund was filed outside the statute of limitations.

1.     Refund denied by the DOR on or after June 30, 2016:  A taxpayer that receives a notice of refund denial based on the DOR’s statute of limitations may contest the DOR’s determination by filing a petition for a contested tax case hearing at the Office of Administrative Hearings. The petition must be filed within 60 days of the date of the notice of denial.

2.     Statute of limitations determination made by the DOR prior to June 30, 2016: A taxpayer that received a notification from the DOR that an amended return of claim for refund was not filed within the statute of limi- tations and could not be processed by the DOR may contest the DOR’s determination by filing a petition for a contested tax case hearing at the Office of Administrative Hearings.