Missouri Code of State Regulations › Title 12 - DEPARTMENT OF REVENUE › Division 10 - Director of Revenue › Chapter 102 - Sales/Use Tax - Taxpayers Rights › Section 12 CSR 10-102.016 - Refunds and Credits

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This proposed amendment is necessary to
				  conform to changes made to section
				  144.190,
				  RSMo.
PURPOSE: section
				  144.190,
				  RSMo permits a seller to file a claim for refund of an over-payment of sales or
				  use taxes resulting from a mistake of fact or law and it permits a purchaser
				  that is not able to obtain a refund of an over-payment of sales or use tax from
				  the seller to file a claim for refund with the department. Section
				  144.100,
				  RSMo requires a seller to file an amended return to correct an error or
				  omission on a return. Section
				  144.746,
				  RSMo allows the seller and the department to extend by agreement the time to
				  file a claim for refund. Section 144.030.2[(23)](24), RSMo establishes special
				  refund procedures for purchasers of domestic utilities under a non-domestic
				  utility rate classification. This rule explains requirements for obtaining a
				  refund or credit on overpayment of sales and use taxes.
(1) In general, if a seller has overpaid tax,
				the seller may file a claim for a refund with the department. If a purchaser is
				not able to obtain a refund from the seller, the purchaser may qualify to file
				a claim for refund with the department.
(2) Basic Application.
(A) A seller may file a claim for a refund
				within ten (10) years after the date of an overpayment. The date of the
				overpayment is the due date of the original return or the date paid whichever
				is later. The department will not consider a claim unless it is filed within
				the ten- (10-) year period. Every claim must be in writing, signed by the
				applicant, and must state the specific grounds upon which the claim is founded.
				If the overpayment is due to an error or omission in a previously filed return,
				the claim must be accompanied by an amended return for each period in which the
				tax was originally reported. If the error or omission is corrected in the
				return immediately following the filing period in which the error or omission
				occurred, no amended return or claim for refund is required.
(B) The person requesting the refund or
				credit must be the person who is legally obligated to remit the tax to the
				Department of Revenue or the purchaser that originally paid the tax to the
				seller. A purchaser seeking a refund of an erroneously paid tax must first seek
				a refund from the seller. A seller may file a claim on behalf of the purchaser
				by submitting a claim for refund and amended returns for the period(s) in which
				the tax was erroneously remitted or the seller may provide an assignment of
				rights to the purchaser to file the claim for refund. The purchaser may also
				file a claim for refund with the department if-
1. The seller refuses to assign the rights to
				file a claim for refund within sixty (60) days of the date of the purchaser's
				written request to the seller;
2.
				The seller is out of business; or
3. The purchaser cannot locate the seller.
The claim by the purchaser is subject to any offset, defense,
				  or any claim the director has against the purchaser or the seller.
(C) The department will
				notify a registered seller of refund claims filed by a purchaser without the
				seller's assignment of rights. If the seller objects to the refund claim, the
				department will not pay the refund. If the seller agrees that the purchaser may
				pursue a refund claim, or fails to respond to the notification within thirty
				(30) days of the date of notification, the department will process the refund
				and will amend the return of the seller to reflect the refund if granted. A
				refund claim will not be considered filed until the seller agrees the purchaser
				may pursue a refund claim or thirty (30) days after the department has notified
				the seller of the purchaser's claim.
(D) The department will issue a statement
				approving a credit in the amount of the overpayment instead of a refund if the
				seller requests a credit on the claim. A seller cannot take a credit for any
				overpayment of tax unless prior approval has been obtained from the department.
				If it is determined later that the seller will incur no future liability, for
				example if the business is closed, the seller may return the credit
				authorization to the department and request a refund. A purchaser may not
				obtain a credit.
(E) If a sale is
				rescinded, no amended return or claim for refund is required. The seller may
				adjust its gross receipts on its next filed return. The adjustment may not
				exceed the gross receipts for the filing period.
(F) Section
				32.068,
				RSMo, establishes the interest rate paid on refunds. Interest does not apply to
				a credit.
(G) The seller and the
				department may extend, by agreement, the period allowed for filing a claim for
				refund. Such an agreement is allowed only if the time for filing a claim for
				refund has not yet expired.
(H) In
				addition to the refund claim procedure described above, a purchaser of taxable,
				non-domestic utility services using any portion of the services for nontaxable
				domestic use may also claim a refund from the department on the domestic use
				portion of the purchase. A purchaser of utility services for domestic use for
				occupants of residential apartments, condominiums, and nursing homes through a
				single or master meter, may claim a refund on the domestic use portion of the
				purchase, which includes common areas and facilities as well as vacant units.
				The claim for refund must be filed between the first day of the first month and
				the fifteenth day of the fourth month following the year of purchase.