PART V. REFUNDS OF OVERPAYMENTS

§1621. Refunds of overpayments authorized

A. For the purpose of this Chapter, "overpayment" means a payment of tax, penalty, or interest when none was due; the excess of the amount of tax, penalty, or interest paid over the amount due; or the payment of a penalty that is later waived or remitted by the secretary, provided that the power of the secretary to refund overpayments shall be as prescribed and limited in this Section.

B. The secretary shall make a refund of each overpayment where it is determined that:

(1) The tax was overpaid because of an error on the part of the taxpayer in mathematical computation on the face of the return or on any of the supporting documents.

(2) The tax was overpaid because of a construction of the law on the part of the taxpayer contrary to the secretary's construction of the law at the time of payment.

(3) The overpayment was the result of an error, omission, or a mistake of fact of consequence to the determination of the tax liability, whether on the part of the taxpayer or the secretary.

(4) The overpayment resulted from a change made by the secretary in an assessment, notice, or billing issued under the provisions of Chapter 18 of Subtitle II of this Title.

(5) With regard to a Louisiana income tax overpayment, the overpayment resulted from a change in federal income tax data which formed the basis for calculation of the Louisiana income tax.

(6) With regard to any Louisiana tax overpayment, the overpayment resulted from an overpayment of estimated Louisiana tax.

(7) With regard to a Louisiana income tax overpayment, the overpayment resulted from application of a Louisiana net operating loss carryover for all claims for this deduction on any return filed on or after July 1, 2015, regardless of the taxable year to which the return relates.

(8) The overpayment resulted from a subsequent determination that the taxpayer was entitled to pay a tax at a reduced tax rate.

(9) The overpayment was the result of a payment that exceeded either the amount shown on the face of the return or voucher, or which would have been shown on the face of the return or voucher if a return or voucher were required.

C. Notwithstanding the provisions of Subsection B, where it is determined that there is clear and convincing evidence that an overpayment has been made, the secretary shall make a refund, subject to conditions or limitations provided by law.

D.(1) Such refunds shall be made out of any current collections of the particular tax which was overpaid. The secretary may make payment of refunds by means of a debit card at the option of the taxpayer. However, the paper form for an individual income tax return shall include provisions whereby the taxpayer may choose to receive a refund of an overpayment by check, debit card, or direct deposit. A refund for a taxpayer who filed a paper tax return for individual income tax shall be made in accordance with the method chosen by the taxpayer on the tax return. If the tax return does not reflect the selection of a specific method of payment by the taxpayer, any refund due shall be paid by check. If a taxpayer chooses to receive a refund of an overpayment by debit card, the Department of Revenue shall allow the taxpayer no less than twelve months to activate the debit card.

(2) If a taxpayer has overpaid a particular tax for more than one taxable year and seeks a refund of the total amount, the secretary may issue the refund incrementally. The number of increments shall not exceed the total number of years the tax was overpaid.

(3) If a refund is ordered or determined by an administrative decision or by a judgment which has become final and non-appealable, then, notwithstanding the provisions of Subsection G of this Section, the secretary shall make the refund within forty-five days of the date of such administrative decision or the date such judgment has become final and non-appealable.

(4) The first payment owed pursuant to the provisions of Paragraph (2) of this Subsection shall be made within the time specified in Paragraph (3) of this Subsection, and any subsequent payments shall be made no later than the same date of the respective subsequent calendar years.

E. The secretary may recover any refunded or credited amount determined not to be an overpayment through any collection remedy authorized by R.S. 47:1561 within two years from December thirty-first of the year in which the refund was paid or credit was applied. Any refunded or credited amount determined not to be an overpayment shall bear interest at the rate provided in R.S. 47:1601, which shall be computed from the date the refund was issued or credit was given to the date payment is received by the secretary.

F. This Section shall not be construed to authorize any refund of tax overpaid through a mistake of law arising from the misinterpretation by the secretary of the provisions of any law or of the rules and regulations promulgated thereunder. In the event a taxpayer believes that the secretary has misinterpreted the law or promulgated rules and regulations contrary therewith, his remedy is by payment under protest and suit to recover, or by appeal to the Board of Tax Appeals in instances where such appeals lie.

G. Upon application by a corporation, the secretary shall pay interest to the corporation required by R.S. 47:287.445. Such interest shall be paid within ninety days after receipt of application and shall be paid out of any current collections of Louisiana corporate income tax.

H. The secretary shall report monthly to the commissioner of administration the total amount of refunds made each month. The secretary shall also report quarterly to the Joint Legislative Committee on the Budget the total amount of refunds made each quarter and shall specifically note when any refunds were not paid within the time period provided for in Paragraph (D)(3) of this Section and the reason therefor.

I. The secretary is authorized to promulgate regulations pursuant to the Administrative Procedure Act for the purpose of administration and enforcement of this Section. Such regulations will have the full force and effect of law.

J.(1) A refund may be claimed pursuant to the provisions of this Section, subject to the other conditions or limitations of this Chapter, on an amount paid on an otherwise final assessment.

(2) The provisions of this Subsection shall not apply if the assessment became final following an appeal of the assessment to the Board of Tax Appeals, or if an assessment became final pursuant to a judgment in an action brought pursuant to R.S. 47:1576.

(3) The provisions of this Subsection shall apply only if the taxpayer or dealer establishes that it did not receive the assessment prior to the deadline for appealing that assessment, and the secretary did not comply with the provisions of R.S. 47:1565(D).

Amended by Acts 1972, No. 565, §1; Acts 1991, No. 241, §1, eff. July 1, 1991; Acts 1992, No. 588, §1; Acts 2001 1st Ex. Sess., No. 6, §1, eff. Mar. 27, 2001; Acts 2004, No. 900, §1, eff. Jan. 1, 2005; Acts 2008, No. 826, §1, eff. July 1, 2008; Acts 2012, No. 818, §1; Acts 2014, No. 412, §1, eff. June 4, 2014; Acts 2014, No. 560, §1, eff. June 9, 2014; Acts 2015, No. 103, §1, eff. July 1, 2015; Acts 2015, No. 210, §1, eff. June 23, 2015; Acts 2018, No. 143, §1, eff. May 11, 2018.

NOTE: See Acts 2014, No. 412, §2, and Acts 2014, No. 560, §2, regarding applicability.

NOTE: See Acts 2015, No. 103, §2, re: applicability.

NOTE: See Acts 2018, No. 143, §4, re: applicability.