2001 Legislation
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HOUSE BILL NO. 120 – Income tax, refunds, filing

HOUSE BILL NO. 120

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Daily Data Tracking History



H0120...............................................by REVENUE AND TAXATION
INCOME TAX - Amends existing law to govern the time within which income tax
refund claims must be filed.
                                                                        
01/30    House intro - 1st rdg - to printing
01/31    Rpt prt - to Rev/Tax
02/06    Rpt out - rec d/p - to 2nd rdg
02/07    2nd rdg - to 3rd rdg
02/13    3rd rdg - PASSED - 65-0-5
      AYES -- Barraclough, Barrett, Bell, Bieter, Black, Boe, Bolz,
      Bradford, Bruneel, Campbell, Chase, Clark, Collins, Crow, Deal,
      Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
      Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet,
      Jones, Kellogg, Kendell, Kunz, Lake, Langford, Loertscher, Mader,
      Marley, McKague, Meyer, Montgomery, Mortensen, Moyle, Pearce,
      Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali,
      Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stone, Swan,
      Tilman, Trail, Wheeler, Wood, Young
      NAYS -- None
      Absent and excused -- Bedke, Callister, Cuddy, Moss, Mr. Speaker
    Floor Sponsor - Raybould
    Title apvd - to Senate
02/14    Senate intro - 1st rdg - to Loc Gov
02/19    Rpt out - rec d/p - to 2nd rdg
02/20    2nd rdg - to 3rd rdg
03/08    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Burtenshaw, Cameron, Danielson, Darrington, Davis, Deide, Dunklin,
      Frasure, Geddes, Goedde, Hawkins, Ingram, Ipsen, Keough,
      King-Barrutia, Lee, Lodge, Noh, Richardson, Risch, Sandy, Schroeder,
      Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler, Whitworth,
      Williams,
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor -- Bunderson
    Title apvd - to House
03/09    To enrol
03/12    Rpt enrol - Sp signed
03/13    Pres signed
03/14    To Governor
03/19    Governor signed
         Session Law Chapter 56
         Effective: 07/01/01

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 120
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO REFUNDS OF INCOME TAXES; AMENDING SECTION 63-3035, IDAHO CODE,  TO
  3        STRIKE  PROVISIONS RELATING TO THE TIME WITHIN WHICH TO CLAIM REFUNDS FROM
  4        WITHHOLDING, RELATING TO REFUNDS OF LESS THAN WHOLE DOLLAR AMOUNTS AND  TO
  5        MAKE  TECHNICAL  CORRECTIONS;  AMENDING  SECTION  63-3035A, IDAHO CODE, TO
  6        STRIKE PROVISIONS RELATING TO THE TIME WITHIN WHICH TO CLAIM REFUNDS  FROM
  7        WITHHOLDING  OF LOTTERY WINNINGS AND TO MAKE TECHNICAL CORRECTIONS; AMEND-
  8        ING SECTION 63-3036A, IDAHO CODE, TO CHANGE A CROSS REFERENCE AND TO  MAKE
  9        TECHNICAL  CORRECTIONS;  AND AMENDING SECTION 63-3072, IDAHO CODE, TO PRO-
 10        VIDE THE TIME WITHIN WHICH TO CLAIM REFUNDS FROM WITHHOLDING AND  TO  PRO-
 11        VIDE PROCEDURES.
                                                                        
 12    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 13        SECTION  1.  That  Section 63-3035, Idaho Code, be, and the same is hereby
 14    amended to read as follows:
                                                                        
 15        63-3035.  STATE WITHHOLDING TAX ON PERCENTAGE BASIS --  WITHHOLDING,  COL-
 16    LECTION  AND PAYMENT OF TAX. (a) Every employer who is required under the pro-
 17    visions of the Internal Revenue Code to withhold, collect and pay  income  tax
 18    on wages or salaries paid by such employer to any employee (other than employ-
 19    ees  specified in Internal Revenue Code section 3401(a)(2)) shall, at the time
 20    of such payment of wages, salary, bonus or other emolument to  such  employee,
 21    deduct and retain therefrom an amount substantially equivalent to the tax rea-
 22    sonably  calculated  by  the  state tax commission to be due from the employee
 23    under this chapter. The state tax  commission  shall  prepare  tables  showing
 24    amounts to be withheld, and shall supply same to each employer subject to this
 25    section. In the event that an employer can demonstrate administrative inconve-
 26    nience  in complying with the exact requirements set forth in these tables, he
 27    may, with the consent of the state tax commission and upon application to  it,
 28    use  a  different  method  which will produce substantially the same amount of
 29    taxes withheld. Every employer making payments of wages or salaries earned  in
 30    Idaho, regardless of the place where such payment is made:
 31        (1)  shall  be  liable  to  the  state of Idaho for the payment of the tax
 32        required to be deducted and withheld under this section and shall  not  be
 33        liable  to  any individual for the amount deducted from his wages and paid
 34        over in compliance or intended compliance with this section;
 35        (2)  must pay to the state tax commission monthly on or  before  the  20th
 36        day  of the succeeding month, or at such other times as the state tax com-
 37        mission may allow, an amount of tax which, under the  provisions  of  this
 38        chapter, he is required to deduct and withhold;
 39        (3)  shall  register  with  the  state  tax commission, in the manner pre-
 40        scribed by it, to establish an employer's withholding account number.  The
 41        account number will be used to report all amounts withheld, for the annual
 42        reconciliation  required  in  this  section,  and  for such other purposes
 43        relating to withholding as the state tax commission may require; and
                                                                        
                                           2
                                                                        
  1        (4)  must, notwithstanding the provisions of paragraphs  (1)  and  (2)  of
  2        this  subsection,  if  the  amount of withholding of such employer for the
  3        preceding twelve (12) month period equals or exceeds sixty  thousand  dol-
  4        lars  ($60,000)  per annum or an average of five thousand dollars ($5,000)
  5        per month per annum, pay to the state tax commission on the basis of with-
  6        holding periods which begin on the 16th day of the month and  end  on  the
  7        15th  day of the following month, and payment shall be made not later than
  8        five  (5) days after the end of the withholding period.
  9        (5)  If the payments made pursuant to subsections  (a)(2)  and  (a)(4)  of
 10        this  section  are  equal  to  the withholding under this section shown or
 11        required to be shown on the return required by subsection (b)(1)  of  this
 12        section, no penalty shall apply to the underpayment for the period between
 13        the  due  date of the payment and the due date of the return. Interest, at
 14        the rate provided by section 63-3045, Idaho Code, shall apply to any  such
 15        underpayment.
 16        (6)  Commencing  in 1994, the state tax commission shall determine whether
 17        the threshold amounts established by subsection  (a)(4)  of  this  section
 18        must  be  adjusted to reflect fluctuations in the cost of living. The com-
 19        mission shall base its determination  on  the  cumulative  effect  of  the
 20        annual  cost-of-living  percentage  modifications determined by the United
 21        States secretary of health and human services pursuant to 42  USC  415(i).
 22        When  the  cumulative  percentage  applied to the monthly threshold amount
 23        equals or exceeds one thousand dollars ($1,000), the commission shall pro-
 24        mulgate a rule adjusting the monthly threshold amount by one thousand dol-
 25        lars ($1,000) and making the  necessary  proportional  adjustment  to  the
 26        annual threshold amount. The rule shall be effective for the next succeed-
 27        ing  calendar  year  and  each year thereafter until again adjusted by the
 28        commission. The tax commission shall determine subsequent  adjustments  in
 29        the same manner, in each case using the year of the last adjustment as the
 30        base year.
 31        (b)  (1) Every  employer  shall,  file a return upon such form as shall be
 32        prescribed by the state tax commission, but not more frequently than quar-
 33        terly, or as required pursuant to any agreement between the state tax com-
 34        mission and the department of labor under section  63-3035B,  Idaho  Code.
 35        The  return  shall  show,  for  the  period to which it relates, the total
 36        amount of wages, salary, bonus or other emoluments paid to his  employees,
 37        the  amount  deducted  therefrom  in accordance with the provisions of the
 38        Internal Revenue Code, the amount deducted therefrom  in  accordance  with
 39        the  provisions  of this section, the amount of any previous payments made
 40        pursuant to this section, and such pertinent and necessary information  as
 41        the state tax commission may require.
 42        (2)  Every employer making a declaration of withholding as provided herein
 43        shall  furnish  to  the employees annually, but not later than thirty (30)
 44        days after the end of the calendar year, a record of  the  amount  of  tax
 45        withheld  from  such employee on forms to be prescribed, prepared and fur-
 46        nished by the state tax commission and on or before the last day of Febru-
 47        ary every employer shall file a copy thereof with the  state  tax  commis-
 48        sion.  Every employer who is required, under Internal Revenue Code section
 49        6011, to file returns on magnetic media or in other machine readable  form
 50        may be required by rules of the state tax commission to file corresponding
 51        state returns on similar magnetic media or other machine readable form.
 52        (c)  All  moneys deducted and withheld by every employer shall immediately
 53    upon such deduction be state money and every employer who deducts and  retains
 54    any  amount  of money under the provisions of this chapter shall hold the same
 55    in trust for the state of Idaho and for the payment thereof to the  state  tax
                                                                        
                                           3
                                                                        
  1    commission  in  the  manner  and  at  the  times in this chapter provided. Any
  2    employer who does not possess real  property  situated  within  the  state  of
  3    Idaho,  which,  in  the  opinion of the state tax commission, is of sufficient
  4    value to cover his probable tax liability, may be required to  post  a  surety
  5    bond  in  such  sum as the state tax commission shall deem adequate to protect
  6    the state.
  7        (d)  The provisions of this chapter relating to additions to tax  in  case
  8    of  delinquency, and penalties, shall apply to employers subject to the provi-
  9    sions of this section and for these purposes any amount deducted, or  required
 10    to  be  deducted  and remitted to the state tax commission under this section,
 11    shall be considered to be the tax of the employer and  with  respect  to  such
 12    amount he shall be considered the taxpayer.
 13        (e)  Amounts  deducted  from wages of an employee during any calendar year
 14    in accordance with the provisions of this section shall be considered to be in
 15    part payment of the tax imposed on such employee for his tax year which begins
 16    within such calendar year and the return made by the employer under this  sub-
 17    section (e) shall be accepted by the state tax commission as evidence in favor
 18    of  the  employee  of  the  amount so deducted from his wages. Where the total
 19    amount so deducted exceeds the amount of tax on the  employee,  based  on  his
 20    Idaho  taxable  income, or where his income is not taxable under this chapter,
 21    the state tax commission shall, after examining the annual return filed by the
 22    employee in accordance with this chapter, but not later than sixty  (60)  days
 23    after  the filing of each return, refund the amount of the excess deducted. No
 24    credit or refund shall be made to an employee who fails to file his return, as
 25    required under this chapter, within three (3) years from the due date  of  the
 26    return,  without  regard  to  extensions, in respect of which the tax withheld
 27    might have been credited. In the event that the excess tax  deducted  is  less
 28    than one dollar ($1.00), no refund shall be made unless specifically requested
 29    by the taxpayer at the time such return is filed.
 30        (f)  This section shall in no way relieve any taxpayer from his obligation
 31    of  filing  a  return at the time required under this chapter, and, should the
 32    amount withheld under the provisions of this section be  insufficient  to  pay
 33    the total tax of such taxpayer, such unpaid tax shall be paid at the time pre-
 34    scribed by section 63-3034, Idaho Code.
 35        (g)  An  employee receiving wages shall on any day be entitled to not more
 36    than, but may claim fewer than, the number of withholding exemptions to  which
 37    he  is  entitled  under the Internal Revenue Code for federal income tax with-
 38    holding purposes.
 39        (h)  An employer shall use the exemption certificate filed by the employee
 40    with the employer under the withholding exemption provisions of  the  Internal
 41    Revenue  Code  in  determining  the  amount  of  tax  to  be withheld from the
 42    employee's wages or salary under this chapter. The tax commission may redeter-
 43    mine the number of withholding exemptions to which  an  employee  is  entitled
 44    under subsection (g) of this section, and the state tax commission may require
 45    such  exemption certificate to be filed on a form prescribed by the commission
 46    in any circumstance where the commission finds that the exemption  certificate
 47    filed  for Internal Revenue Code purposes does not properly reflect the number
 48    of withholding exemptions to which the employee is entitled under  this  chap-
 49    ter. In no event shall any employee give an exemption certificate which claims
 50    a  higher  number  of  withholding  exemptions  than  the  number to which the
 51    employee is entitled by subsection (g) of this section.
                                                                        
 52        SECTION 2.  That Section 63-3035A, Idaho Code, be, and the same is  hereby
 53    amended to read as follows:
                                                                        
                                           4
                                                                        
  1        63-3035A.  STATE INCOME TAX WITHHOLDING TAX ON LOTTERY WINNINGS. (1) When-
  2    ever  the  Idaho  state lottery is required by the iInternal rRevenue cCode to
  3    withhold, collect and pay over income tax on any prize, proceeds  or  winnings
  4    it  shall,  at  the time of payment of such prize, proceeds or winnings to the
  5    recipient, withhold from the payment an amount equal to eight  and  two-tenths
  6    percent  (8.2%)  of  the  prize,  proceeds  or winnings to be applied to Idaho
  7    income taxes due from the recipient.
  8        (2)  The state tax commission shall accept amounts withheld  according  to
  9    this  section  as payment by the recipient of the amount so withheld of income
 10    taxes imposed on the recipient for the taxable year in which the  prize,  pro-
 11    ceeds or winnings are includable in the recipient's Idaho taxable income.
 12        (3)  When  the  total amount withheld (along with other credits due, with-
 13    holding or payments attributable to the taxpayer) exceeds the taxes  due  from
 14    the  recipient,  the  state  tax  commission  shall, after examining the state
 15    income tax return filed by the recipient, refund  the  amount  of  the  excess
 16    withheld  in  the  manner  provided  for  refunds of withholding under section
 17    63-3035, Idaho Code. The state tax commission shall make no credit  or  refund
 18    to  a person who fails to file within three (3) years from the due date, with-
 19    out regard to extensions, the return on which the tax withheld could have been
 20    credited.
 21        (4)  The Idaho state lottery shall remit the amounts withheld to the state
 22    tax commission on or before the date similar payments and reports are  due  to
 23    the internal revenue service.
 24        (5)  The  Idaho  state  lottery  shall furnish to the recipient, not later
 25    than thirty (30) days after the end of the calendar year, a record of the  tax
 26    withheld  during  that year and shall, not later than the last day of the fol-
 27    lowing February, file a copy of the record with the state tax commission.
 28        (6)  The Idaho state lottery and the state tax  commission  may  agree  to
 29    different  times and procedures for making the remittances or reports required
 30    in this section.
 31        (7)  Nothing in this section relieves any taxpayer from an  obligation  to
 32    file  a  return  or  pay  taxes at the time and in the manner required by this
 33    chapter.
                                                                        
 34        SECTION 3.  That Section 63-3036A, Idaho Code, be, and the same is  hereby
 35    amended to read as follows:
                                                                        
 36        63-3036A.  PAYMENT  OF  ESTIMATED TAX. (a) Any corporation subject to this
 37    chapter which is required  to  make  a  payment  of  estimated  taxes  to  the
 38    Iinternal  Rrevenue  Sservice  and  will have an Idaho income tax liability of
 39    five hundred dollars ($500) or more shall pay  to  the  state  tax  commission
 40    estimated taxes due under this chapter.
 41        (b)  The provisions of the Internal Revenue Code relating to determination
 42    of  reporting  periods  and  the  due dates of payments of estimated tax shall
 43    apply to the estimated payments due under this section.
 44        (c)  The amount of estimated tax due shall be determined as follows:
 45        (1)  Commencing with the calendar quarter that begins July 1, 1987, in the
 46        case of any corporation which was required to pay tax under  this  chapter
 47        for  its  immediately preceding taxable year, the amount of each quarterly
 48        payment for its current taxable year shall be twenty-five per cent percent
 49        (25%) of the lesser of:
 50             (i)  The tax amount required to be reported on  the  return  for  the
 51             immediately preceding taxable year; or
 52             (ii)  Ninety  per  cent  percent (90%) of the tax required to be paid
 53             with the current year's return.
                                                                        
                                           5
                                                                        
  1        (2)  Any corporation required to make estimated payments under  this  sec-
  2        tion  and who makes annualized estimated payments under the Internal Reve-
  3        nue Code shall be permitted to annualize its estimated payments under this
  4        section in the manner  prescribed by regulation of the state  tax  commis-
  5        sion. Such regulations shall, to the extent practicable, follow the provi-
  6        sions of the Internal Revenue Code and the regulations thereunder relating
  7        to annualization of estimated payments.
  8        (d)  The  amounts  paid  as  estimated taxes pursuant to subsection (c) of
  9    this section shall be considered to be in part payment of the tax  imposed  by
 10    this  chapter  on  the  person  reporting such estimated tax. The part payment
 11    shall apply to such tax for the tax year during which the reporting period for
 12    which the estimate is made occurs. In  the  event  that  such  part  payments,
 13    together  with  all other part payments, estimated payments, withheld taxes or
 14    other credits allowable against the taxes imposed by this chapter shall exceed
 15    the amount of tax due, the state  tax  commission  shall  refund  such  excess
 16    within the time and in the manner prescribed in section 63-3035(e)72(c), Idaho
 17    Code, relating to refund of taxes withheld by employers.
 18        (e)  The  provisions  of  this  section shall in no way relieve any person
 19    from any obligation to file a return under any provision of  this  chapter  at
 20    the  time  such  return  may  be due. In the event that the estimated payments
 21    required under this section, together with any other part payments,  estimated
 22    payments,  withheld taxes or other credits applicable to the same taxable year
 23    are less than the amount of taxes imposed by  this  chapter,  the  unpaid  tax
 24    shall be paid at the time prescribed in section 63-3034, Idaho Code.
 25        (f)  The  payment  due for the first full reporting period occurring after
 26    the effective date of this act, and the payment due for each of the next three
 27    (3) succeeding reporting periods shall be one-half (1/2) of the amount  other-
 28    wise due under this section.
                                                                        
 29        SECTION  4.  That  Section 63-3072, Idaho Code, be, and the same is hereby
 30    amended to read as follows:
                                                                        
 31        63-3072.  CREDITS AND REFUNDS. (a) Subject to the  provisions  of  subsec-
 32    tions (b), (c) and (g) of this section, where there has been an overpayment of
 33    the tax imposed by the provisions of this chapter, the amount of such overpay-
 34    ment  shall  be credited against any tax administered by the state tax commis-
 35    sion which tax is then due from the taxpayer, and any balance of  such  excess
 36    shall be refunded to the taxpayer.
 37        (b)  The  state  tax  commission is authorized, and the state board of tax
 38    appeals is authorized to order the state tax commission in  proper  cases,  to
 39    credit,  remit,  refund, or pay back all tax, penalties, and interest, errone-
 40    ously or illegally assessed or collected, regardless of whether the same  have
 41    been  paid  under  protest,  which  claim for refund shall be certified to the
 42    state board of examiners by the state tax commission.
 43        (c)  Except in regard to amounts withheld as provided in subsection (e) of
 44    section 63-3035, 63-3035A or 63-3036, Idaho Code, or amounts paid as estimated
 45    payments under section 63-3036A, Idaho Code, a claim for credit or  refund  of
 46    tax,  penalties,  or interest paid shall be made within the later of three (3)
 47    years of the due date of the return, without regard to  extensions,  or  three
 48    (3)  years  from the date the return was filed. However, with regard to remit-
 49    tances received with an extension of time to file, or a  tentative  return,  a
 50    claim  for credit or refund of such remittances shall be made within three (3)
 51    years from the due date of the return without regard to extensions.
 52        (c)  With regard to amounts  withheld  as  provided  in  section  63-3035,
 53    63-3035A  or  63-3036, Idaho Code, or amounts paid as estimated payments under
                                                                        
                                           6
                                                                        
  1    section 63-3036A, Idaho Code, a claim for  credit  or  refund  shall  be  made
  2    within  three  (3)  years  from  the due date of the return, without regard to
  3    extensions, for the taxable year in respect to which the tax was withheld.
  4        (d)  Notwithstanding any other provisions of this section, when Idaho tax-
  5    able income and/or tax credits for any taxable year have been  adjusted  as  a
  6    result  of a final federal determination, the period of limitations for claim-
  7    ing a refund or credit of tax, penalties, or interest shall  be  reopened  and
  8    shall  not expire until the later of one (1) year from the date of delivery of
  9    the final federal determination to the taxpayer by the internal  revenue  ser-
 10    vice,  three  (3)  years  from  the  due date of the return, without regard to
 11    extensions, or three (3) years from the date the return was  filed.  For  pur-
 12    poses  of  this  subsection, the term "final federal determination" shall mean
 13    the final resolution of all issues which were adjusted by the internal revenue
 14    service. When the final federal determination is submitted, the taxpayer shall
 15    also submit copies of all schedules and written explanations provided  by  the
 16    internal  revenue service. Upon the expiration of the period of limitations as
 17    provided in subsections (cb) and (g) of  this  section,  only  those  specific
 18    items  of  income, deductions, gains, losses or credits which were adjusted in
 19    the final federal determination shall be subject to adjustment for purposes of
 20    recomputing Idaho income, deductions, gains, losses, credits, and  the  effect
 21    of such adjustments on Idaho allocations and apportionments.
 22        (e)  If  a  claim for credit or refund relates to an overpayment attribut-
 23    able to a net operating loss carryback, in lieu of the period  of  limitations
 24    prescribed in subsection (cb) of this section, the period shall be that period
 25    which ends with the expiration of the fifteenth day of the fortieth month fol-
 26    lowing  the end of the taxable year of the net operating loss which results in
 27    such carryback.
 28        (f)  If an adjustment, which was made within the period of limitations  as
 29    provided  in  this  section,  affects  the amount of tax credit, net operating
 30    loss, or capital loss, claimed in a taxable year other than the  tax  year  in
 31    which  the  adjustment  is made, then adjustments to the credit, net operating
 32    loss, or capital loss, claimed in such other tax year may be made and a  claim
 33    for  credit  or  refund  of tax, penalties or interest may be made even though
 34    such claim would otherwise be barred under the provisions of this section.
 35        (g)  Prior to the expiration of the time prescribed in  this  section  for
 36    credit  or  refund  of any tax imposed by the provisions of this chapter, both
 37    the state tax commission or its delegate or deputy and the taxpayer  may  con-
 38    sent  in  writing to extend such period of time. The period so agreed upon may
 39    be extended by subsequent agreements in writing made before the expiration  of
 40    the  period  previously  agreed  upon.  When a pass-through entity extends the
 41    period of limitations in accordance with the provisions of this subsection the
 42    period of limitations for the other taxpayers is  automatically  extended  for
 43    the  same period for the purpose of claiming a credit or refund of tax, penal-
 44    ties or interest by the other taxpayers  reflecting  the  pass-through  entity
 45    adjustments.
 46        (h)  The  expiration of the period of limitations as provided in this sec-
 47    tion shall be suspended for the time period during which the taxpayer is  pro-
 48    hibited from claiming a credit or refund of tax, penalties or interest imposed
 49    under  the  provisions  of  this  chapter, and for thirty (30) days thereafter
 50    between the issuance by the state tax commission of a notice under either sec-
 51    tion 63-3045 or 63-3065, Idaho Code, and the final resolution of any  proceed-
 52    ing resulting from the notice.
 53        (i)  Appeal of a state tax commission decision denying in whole or in part
 54    a  claim  for credit or refund shall be made in accordance with and within the
 55    time limits prescribed in section 63-3049, Idaho Code.
                                                                        
                                           7
                                                                        
  1        (j)  For purposes of this section, "return" includes  a  notice  of  defi-
  2    ciency  determination  issued  by  the state tax commission when no return was
  3    filed by the taxpayer. Such a return is deemed filed on  the  date  the  taxes
  4    determined by the state tax commission are assessed.

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE
                          R.S. 10475C1

This bill would change the law relating to refunds of income tax
withholding in two particulars.  

It suspends the statute of limitations on refund claims for
         withholding during the pendency of administrative or judicial
         review of income tax cases.  

It strikes language relating to withholding refunds of less than
         a dollar.  This provision was made obsolete by the whole
         dollar rounding statute.   
 
Moves language relating to the time to claim refunds of
         withholding or estimated payments from several different
         sections to one section.  


                           FISCAL NOTE

         Less than $10,000 revenue loss from some additional
withholding refunds.  









CONTACT

Name:  Dan John/Ted Spangler, State Tax Commission
Phone:  334-7530
HOUSE

STATEMENT OF PURPOSE/FISCAL NOTE              H 12