Overpayments and refunds — Interest on overpayments and refunds

(a)(1) After an examination of a return, if it shall appear that a taxpayer has overpaid the amount of tax required to be paid, then the excess so paid with interest at the rate specified below may be refunded to the taxpayer.

(2) If the amount overpaid was collected by the taxpayer from his or her customers, then the taxpayer must establish that he or she has repaid the tax to persons from whom collected or has obtained the consent of such person to the allowance of the refund or credit.

(3) The rate of interest on overpayments is ten percent (10%) per annum.

(4) If an overpayment of tax is refunded by the Secretary of the Department of Finance and Administration within ninety (90) days after the date provided for filing the return for the tax, no interest shall be allowed on the overpayment.
(b)(1) If a taxpayer believes an overpayment has occurred, an amended return or verified claim for refund may be filed.

(2) The claim shall specify the:

(A) Name of the taxpayer;

(B) Time when and the period for which the tax was paid;

(C) Amount of tax claimed to have been erroneously overpaid; and

(D) Grounds upon which a refund is claimed.

(3) The secretary shall then determine what amount of refund is due as soon as practicable after a claim has been filed, and in any event within six (6) months after the filing of such claim.

(4) The secretary shall then make a written determination and give notice to the taxpayer concerning whether a refund is due.

(5) If a refund is due, the secretary shall certify that the claim is to be paid to the taxpayer as provided by law, and a refund check will be issued.

(c) No claim for refund will be allowed if made after the expiration of the period of limitation for assessment of additional tax.