Refund Claims

Sections 63-3612, 63-3613, 63-3619, 63-3626, 63-3629(c), 63-3631, 63-3045, 63-3045B, 63-3049, 63-4408, Idaho Code 01. In General. An application for a refund of sales or use taxes paid in excess of the amount lawfully due will be made in accordance with the provisions of this section. (7-1-26) 02. Payment of Sales Tax by a Buyer to a Vendor. When a buyer paid sales tax to a vendor, and later determines that the sales tax was paid in error, the buyer needs to request the refund from the vendor to whom the excess tax was paid. If the buyer can provide evidence that the vendor refused to refund the tax, they may file a claim for refund directly with the Tax Commission. (7-1-26) 03. Payment of Sales or Use Tax Directly to the State. When a person holding a seller’s permit or use tax account paid tax to the state, and later determines that the sales or use tax was paid in error, they may file a claim for refund directly with the Tax Commission. (7-1-26) 04. Bad Debts. Claims for refunds arising from bad debts are to be filed with the Tax Commission in the manner prescribed by Section 063. (7-1-26) 05. Mathematical Errors. If a filer of sales or use tax returns discovers that a mathematical error was made on a previously filed return resulting in overpayment of taxes, they may submit a claim for a refund directly to the Tax Commission. (7-1-26) 06. Refund Claims. A refund claim is to be in writing and include the following information: (7-1-26) a. Full name, address, and phone number of the claimant; (3-31-22) b. Claimant’s seller’s permit number or use tax account number if claimant has such a number; (3-31-22) c. The amount of the refund claimed; (3-31-22) d. A detailed statement of the reason the claimant believes refund is due; (3-31-22) e. An itemized description of the specific goods or services to which the tax relates; (3-31-22) IDAHO ADMINISTRATIVE CODE IDAPA 35.01.02 State Tax Commission Idaho Sales & Use Tax Administrative Rules Section 118 Page 70 f. The date on which the claimed excess taxes were paid; (3-31-22) g. Documentation showing the amount of Idaho sales tax paid; (7-1-26) h. If the claimant is the seller, documentation showing tax and interest, if applicable, has been refunded to the buyer; (7-1-26) i. If the claim is for bad debt, detailed account payment information for each customer and each item purchased for which a refund is claimed; and (7-1-26) j. If a refund claim doesn’t include the information listed in Subsections 117.06.a. through i., as applicable, then the claim doesn’t satisfy the requirement to file a written claim to stop the period of limitations from running. A refund claim that doesn’t include this information will be denied and processed as set out in Subsection 117.11. (7-1-26) 07. Outstanding Liabilities. No claim for refund will be approved or issued unless the claimant first satisfies outstanding liabilities for taxes administered by the Tax Commission. (7-1-26) 08. Statute of Limitations. A claim for refund won’t be allowed if it is filed more than three (3) years from the time the tax was paid. If the claim is made by a person who doesn’t hold a seller’s permit or use tax account, the time the tax was paid is the date upon which the applicable sales or use tax return relating to the payment was filed with the Tax Commission. (7-1-26) 09. Taxes Paid in Response to a Notice of Deficiency Determination. A claim for refund can’t be filed relating to any sales or use taxes which have been asserted by a notice of deficiency determination. A taxpayer contending that taxes have been erroneously or illegally collected by the Tax Commission in conformance with a notice of deficiency determination can seek a refund by using the appeal procedures outlined in IDAPA 35.02.01.320 through 328. (7-1-26) 10. Denial of a Refund Claim. All claims for refund or credit will be reviewed by the Tax Commission’s staff. If the staff concludes that all or part of the claim shouldn’t be allowed, notice of denial of the claim will be given per the Sales Tax Act. (7-1-26) 11. Interest on Refunds. See Section 122. (7-1-26) 118. RESPONSIBILITY FOR PAYMENT OF SALES TAXES DUE FROM CORPORATIONS, LIMITED LIABILITY COMPANIES, AND PARTNERSHIPS. Sections 63-3045, 63-3049, 63-3065, 63-3074, 63-3634, Idaho Code 01. Corporate Officers Duty to Pay Sales Tax. Individuals including corporate officers and employees with the duty to cause a corporation or a limited liability company to file a sales tax return or to pay sales tax when due, or any partnership member or employee with such duty, will become liable for payment of the tax, penalty and interest due from the corporation or partnership if they fail to carry out their duty. Any such responsible individual has the defenses, remedies, and recourse provided in Idaho Code and will be afforded notice and opportunity to be heard on the question of such liability. (7-1-26) 02. Penalty for Failure to Collect. Any individual mandated to collect, account for, and pay over any tax who willfully fails to carry out or execute their duty will have to pay, in addition to the tax, penalty, and interest, an additional amount equal to the total amount of tax involved. This penalty is in addition to all other penalties provided in Section 63-3634, Idaho Code. (7-1-26)