On March 31, 2022, Idaho House Bill 715 was signed into legislation. This bill extends the statute of limitations to claim a credit for certain taxes paid to 10 years, to allow for an offset of taxes imposed under the longer statute for underpaid taxes.
There is currently a three-year statute of limitations to make a claim for a credit or refund of certain overpaid taxes. This statute differs from the 10-year window that the state is allowed to impose tax, penalties, and interest on taxpayers. This legislation amends Idaho Code Section 63-3072 to extend the statute of limitations relating to claims for credit of overpaid taxes, allowing the overpayments to be offset against taxes due.
A claim for refund of tax, penalty, and interest paid must still be filed within the later of three years of the due date of the return, without regard to extensions, or three years from the date the return was filed. However, a claim for credit of tax, penalty, or interest paid may be allowed within the later of 10 years of the due date of the return, without regard to extensions, or 10 years from the date the return was filed. The terms of this legislation will be applied retroactively to January 1, 2022.
Learn if you qualify for additional refund claims by reaching out to your Ryan contact today.
TECHNICAL INFORMATION CONTACTS:
Mark L. Nachbar
Principal
Ryan
630.515.0477
mark.nachbar@ryan.com
Mary Bernard
Manager
Ryan
401.272.3363
mary.bernard@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.