Tax Type
Individual Income Tax
Description
Overpayment credit disallowed; Return not timely filed
Topic
Credits
Returns/Payments/Records
Statute of Limitations
Date Issued
11-19-1984
November 19, 1984
Re: §58-1118 Application: Individual
Dear ********
This will reply to your letter of May 9, 1984 in which you seek relief of individual income tax and interest assessed against your clients, ***** ("Taxpayer"), for calendar year 1980 and adjustment of Taxpayer's overpayment credit.
Facts
Taxpayer claims to have filed returns for calendar years 1976 and 1977 resulting in overpayment credits to 1977 and 1978 of $**** and $**** respectively. The Department has no record that 1976 and 1977 returns were filed.
When Taxpayer's 1978 return was filed (on October 8, 1980), the $**** overpayment credit was disallowed and a refund of $**** was issued. The 1978 return had listed $**** to be credited to estimated tax for 1979.
When the 1979 return was filed (claiming the $**** overpayment credit), Taxpayer expected an overpayment credit from 1979 to 1980 of The Department, having no record of estimated payments for 1979, credited $**** to the 1980 estimated account. Accordingly, when Taxpayer's 1980 return was filed, with Taxpayer assuming $**** was in the 1980 estimated account and the Department's records showing to be in the account, a tax deficiency of $**** was found and an assessment was issued.
Determination
The Department maintains a microfilm history of all individual income tax returns, including the dates filed and the dates payments were made, both by name and by social security number. There is no record that 1976 or 1977 returns were filed by ***** under the social security number ***-**-****. No inference is intended that they were not mailed. However, without a record that the returns were filed and without Taxpayer's being able to establish they were filed, there is no record of overpayment credits resulting from 1976 and 1977 and such credits cannot be allowed. When Taxpayer received a refund based on the 1978 return, Taxpayer was on notice at that time to inquire why a refund was being issued instead of an overpayment credit being applied.
Based on the foregoing, the 1980 assessment represented by bill number ***** was proper, and I find no basis to abate the assessment or make any adjustment to Taxpayer's overpayment credit.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner