Missouri Code of State Regulations › Title 12 - DEPARTMENT OF REVENUE › Division 10 - Director of Revenue › Chapter 2 - Income Tax › Section 12 CSR 10-2.070 - Interest on Overpayments

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule sets forth the circumstances under
				  which a taxpayer who has paid too much tax will receive interest on the amount
				  of the tax refund.
(1)
				Authority for Rule. This rule is being issued under the general regulatory
				powers granted to the director of revenue and the specific authority set forth
				in section
				143.811,
				RSMo.
(2) Applicability and Scope
				of Rule. This rule shall apply to those instances in which an overpayment of
				the taxes imposed by sections 143.011-143.996, RSMo has occurred and shall
				apply only with respect to taxable periods beginning on or after January 1,
				1973. It is intended to serve as an interpretive guideline in the application
				of section 143.811.1., 2., 4. and 5., RSMo as affected by sections
				143.601
				and
				143.801,
				RSMo.
(3) The term sections
				143.011-143.996, RSMo shall mean the Missouri Income Tax Law, which became
				effective on January 1, 1973.
(4)
				As used in this rule, the term director shall mean the director of revenue or
				his/her duly authorized agent or designee.
(5) Subject to the limitations provided in
				this rule, interest shall be allowed and paid upon any overpayment with respect
				to the taxpayer's liability for taxes, computed on a daily basis at the rate
				provided by statute, from the dates of the overpayment to the date shown on the
				refund check that is issued by the treasurer of Missouri. If the taxpayer
				elects to have all or a part of the overpayment shown on the return applied to
				the taxpayer's estimated tax for a succeeding year, the portion of the
				overpayment that is credited to the estimated tax for the succeeding year or
				any installment shall be considered to be refunded to the taxpayer on the date
				that the original return was filed and no interest shall be allowed on the
				portion of the overpayment so credited or applied.
(6) Time Return Filed. For purposes of this
				rule, a return filed before the last day prescribed for the filing of the
				return shall be considered as filed on the last day (determined without regard
				to any extensions of time for filing the return). For returns filed after the
				fifteenth day of the fourth month following the close of the taxpayer's taxable
				year, the time filed shall be the actual time filed.
(7) Time Tax Paid. For purposes of this rule,
				payment of any portion of the tax made before the fifteenth day of the fourth
				month following the close of the taxpayer's taxable year shall be considered as
				paid on the fifteenth day of the fourth month. For payments made after the
				fifteenth day of the fourth month following the close of the taxpayer's taxable
				year, whether or not a valid extension of time to pay is in effect, the time
				paid shall be the actual time paid.
(8) Limitations. If any overpayment is
				refunded within four (4) months after the last date prescribed (or permitted by
				extension of time) for filing the original return of the tax or within four (4)
				months after the return was filed, whichever is later, no interest shall be
				allowed on the overpayment as provided by section 143.811.4., RSMo. Where the
				taxpayer's return is not complete, delaying the processing by the director and
				requiring the director to request additional information from the taxpayer, the
				four (4)-month period referred to in this rule shall begin at such time as the
				additional requested information is submitted.
(9) Carrybacks of Net Operating Loss and
				Corporate Capital Loss. Any overpayment resulting from a carryback, including a
				net operating loss and a corporate capital loss, shall be deemed not to have
				been made prior to the close of the taxable year in which the loss arises, per
				section 143.811.5., RSMo. The carryback will be deemed to be an amended federal
				income tax return under section
				143.601,
				RSMo which requires that any taxpayer filing an amended federal income tax
				return shall also file, within ninety (90) days after that, an amended return
				under sections 143.011-143.996, RSMo.
(10) Examples: The amounts used in any of the
				following examples for additions to tax and interest are for illustrative
				purposes only and do not necessarily reflect the actual additions to tax and
				interest that might be due in those situations. For purposes of these examples,
				current year returns shall mean returns filed, or required to be filed, for the
				immediately preceding taxable year for taxes imposed by sections
				143.011-143.996, RSMo:
(A) Taxpayer files
				his/her 1974 calendar year return on January 15, 1975 indicating an
				overpayment. If the director makes a refund of the overpayment on or before
				August 15, 1975, no interest shall be allowed on the overpayment. In this
				example, the return is considered filed on the last day prescribed for the
				filing (April 15, 1975) and the director has four (4) months in which to make
				the refund. If the refund is not made by August 15, 1975, interest shall be
				allowed and paid for the period April 15, 1975 (the date the tax is considered
				paid) until the date of the refund;
(B) Taxpayer files his/her 1974 calendar year
				return on June 15, 1975 with a valid sixty (60)-day extension of time to file
				in effect, indicating an overpayment. All tax payments were made on or before
				April 15, 1975. If the director makes a refund of the overpayment on or before
				October 15, 1975, no interest shall be allowed on the overpayment. In this
				example, even though the tax is considered paid on April 15, 1975, the director
				has four (4) months in which to make the refund from the date the return is
				filed. If the refund is not made by October 15, 1975, interest shall be allowed
				and paid for the period April 15, 1975 until the date of the refund. The result
				in this example would be the same whether or not a valid extension of time to
				file or pay the tax had been in effect;
(C) Taxpayer files his/her 1974 calendar year
				return on June 15, 1975 indicating a balance due of one hundred fifty dollars
				($150) which is paid with the return, there being no valid extension of time to
				file the return or pay the tax in effect. Upon subsequent review of the return,
				a mathematical error is discovered overstating the taxpayer's 1974 tax
				liability by two hundred dollars ($200). If the director makes a refund of the
				overpayment on or before October 15, 1975, no interest shall be allowed on the
				overpayment. If the refund is not made on or before October 15, 1975, interest
				shall be allowed and paid on the overpayment in the following manner. On the
				fifty-dollar ($50) overpayment that would have been shown on the original
				return, if correctly filed, from April 15, 1975 to the date of the refund; and
				on the one hundred and fifty dollars ($150) paid with the original return, from
				June 15, 1975 (the date the tax was paid) to the date of the refund. The result
				in this example would be the same whether or not a valid extension of time to
				file or pay the tax had been in effect; and
(D) Taxpayer, a corporation, files its
				estimated tax declaration for calendar year 1975 with the director and pays the
				first two installment payments of five hundred dollars ($500) each on April 15,
				1975 and June 15, 1975, respectively. Taxpayer incurs a net operating loss for
				calendar year 1975 and files his/her Missouri income tax return on April 15,
				1976, requesting a refund of the resulting overpayment. The taxpayer fails to
				attach to its Missouri return a copy of the federal form 1120 as required. Upon
				timely review of the taxpayer's Missouri return, the director requests from the
				taxpayer a copy of the federal return which is not submitted until December 15,
				1976. If the director makes a refund of the overpayment on or before April 15,
				1977, no interest shall be allowed on the overpayment. If the refund is made
				after April 15, 1977, interest shall be allowed and paid from April 15, 1976 to
				the date of the refund. In this example, the four (4)-month noninterest payment
				period does not begin until the required information is submitted.