Idaho Admin. Code r. 35.01.02.117

Current through September 2, 2024

Section 35.01.02.117 - REFUND CLAIMS

Sections 63-3612, 63-3613, 63-3619, 63-3626, 63-3629(c), 63-3631, 63-3045, 63-3045B, 63-3049, 63-4408, Idaho Code

01.In General. Application for refund of sales or use taxes paid in excess of those properly imposed by the Sales Tax Act, is to be in accordance with the provisions of this rule.

02.Payment of Sales Tax by a Buyer to a Vendor. When a buyer has paid sales tax to a vendor, and later determines that the sales tax was paid in error, the buyer needs to request the refund from the vendor to whom the excess tax was paid. If the buyer can provide evidence that the vendor has refused to refund the tax, he may then file a claim for refund directly with the Commission.

03.Payment of Sales or Use Tax Directly to the State. When a person holding a seller's permit or use tax account number has paid tax to the state, and later determines that the sales or use tax was paid in error, he may file a claim for refund directly with the Commission.

04.Bad Debts. Claims for refunds arising from bad debts are to be filed with the Tax Commission in the manner prescribed by this Rule 117 and Rule 063 of these rules.

05.Mathematical Errors. When the filer of sales or use tax returns determines that a mathematical error has been made on a previously filed return resulting in overpayment of the proper amount of sales or use taxes, he may file a claim for refund directly with the Tax Commission.

06.Refund Claims. A refund claim, however, is to be in writing and include the following information:

a. Full name, address, and phone number of the claimant;

b. Claimant's seller's permit number or use tax account number if claimant has such a number;

c. The amount of the refund claimed;

d. A detailed statement of the reason the claimant believes refund is due;

e. An itemized description of the specific goods or services to which the tax relates;

f. The date on which the claimed excess taxes were paid;

g. If the claimant is the retailer, a statement under oath that the amount of tax plus interest has been or will be refunded to the buyer; and

h. If the claim is for bad debt, detailed individual account information for each customer and each item purchased for which a refund is claimed.

i. A refund claim must be filed within three (3) years from the time the payment was made to the Commission. If a refund claim does not include the required information listed in Subsections 117.06.a. through h., as applicable, then the claim does not satisfy the requirement to file a written claim to stop the period of limitations provided in Section 63-3626(b)(1), Idaho Code, from running. A refund claim that does not include the required information will be denied and processed as set out in Subsection 117.11 of this rule.

07.Outstanding Liabilities. No claim for refund will be approved or issued unless the claimant first satisfies outstanding liabilities for taxes administered by the Commission.

08.Payment Under Protest. It is not necessary for a taxpayer to pay taxes under protest in order to subsequently be able to claim a refund of such taxes.

09.Statute of Limitations. A claim for refund will not be allowed if it is filed more than three (3) years from the time the payment of the tax was made. The time the payment was made is the date upon which the sales or use tax return relating to the payment was filed with the Commission.

10.Taxes Paid in Response to a Notice of Deficiency Determination. A claim for refund may not be filed relating to any sales or use taxes which have been asserted by a notice of deficiency determination. A taxpayer contending that taxes have been erroneously or illegally collected by the Commission in conformance with a notice of deficiency determination can seek a refund by using the appeal procedures outlined in IDAPA 35.02.01.320 through 328, "Tax Administration and Enforcement Administrative Rules."

11.Denial of a Refund Claim. All claims for refund or credit will be reviewed by the Commission's staff. If the staff concludes that all or part of the claim should not be allowed, notice of denial of the claim will be given to the claimant by first class mail or by other commercial delivery service providing proof of delivery, whichever is the most cost efficient. The notice will include a statement of the reasons for the denial. The notice of denial will be the equivalent of a notice of deficiency determination. If the taxpayer wishes to seek a redetermination of the denial notice, they can file a petition for redetermination in the manner prescribed in IDAPA 35.02.01.320 - 328, "Tax Administration and Enforcement Administrative Rules." A petition for redetermination must be filed no later than sixty-three (63) days from the date upon which the notice of denial is mailed to or served on the claimant.

12.Interest on Refunds. See Rule 122 of these rules.

13.Cross Reference. See Rule 003 of these rules, Administrative Appeals.

Idaho Admin. Code r. 35.01.02.117

Effective March 31, 2022