Refund claim filing time limit modification

A bill for an act

relating to taxation; modifying the time limit to file a claim for refund; amending

Minnesota Statutes 2024, section 289A.40, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 289A.40, subdivision 1, is amended to read:

Subdivision 1.

Time limit; generally.

new text begin
(a)
new text end
Unless otherwise provided in this chapter, a

claim for a refund of an overpayment of state tax must be filed within 3-1/2 years from the

date prescribed for filing the return, plus any extension of time granted for filing the return,

but only if filed within the extended time, or
deleted text begin
one year from the date of an order assessing

tax under section
270C.33
or an order determining an appeal under section
270C.35,

subdivision 8
, or one year from the date of a return made by the commissioner under section

270C.33, subdivision 3
, upon payment in full of the tax, penalties, and interest shown on

the order or return made by the commissioner
deleted text end
new text begin
two years from the date the tax, penalties, or

interest was paid
new text end
, whichever period expires later.
deleted text begin
Claims for refund, except for taxes under

chapter 297A, filed after the 3-1/2 year period but within the one-year period are limited to

the amount of the tax, penalties, and interest on the order or return made by the commissioner

and to issues determined by the order or return made by the commissioner.
deleted text end

deleted text begin

In the case of assessments under section
289A.38, subdivision 5
or 6, claims for refund

under chapter 297A filed after the 3-1/2 year period but within the one-year period are

limited to the amount of the tax, penalties, and interest on the order or return made by the

commissioner that are due for the period before the 3-1/2 year period.

deleted text end

new text begin

(b) For purposes of this subdivision, the amount of a refund is limited as follows:

new text end

new text begin

(1) if the claim was filed by the taxpayer during the 3-1/2 year period prescribed in

paragraph (a), the refund must not exceed the tax, penalties, and interest paid within the

period, immediately preceding the filing of the claim, equal to 3-1/2 years plus any extension

of time granted for filing the return, but only if filed within the extended time;

new text end

new text begin

(2) if the claim was not filed by the taxpayer within the 3-1/2 year period prescribed in

paragraph (a), the refund must not exceed the tax, penalties, and interest paid during the

two years immediately preceding the filing of the claim; and

new text end

new text begin

(3) if no claim was filed by the taxpayer, the refund must not exceed the amount which

would be allowable under clause (1) or (2), if the claim was filed on the date the refund is

allowed.

new text end

new text begin

(c) For purposes of this subdivision, the prepayment of tax made by withholding of tax

at the source or payment of estimated tax before the due date is considered paid on the last

day prescribed by law for the payment of the tax by the taxpayer. A return filed before the

last day prescribed for filing the return is considered to be filed on the last day. Where an

extension for filing a return is granted, a return filed before the extended due date is

considered as filed on the extended due date.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment and

applies to claims for refund filed on or after that date.

new text end