| (7) The informal review of a refund claim by the comptroller
is not a hearing or contested case and does not toll the limitation
period for any subsequent claim for refund on the same period and
type of tax for which the claim was fully or partially denied.
(8) For more information about the statute of limitations,
see §3.339 of this title (relating to Statute of Limitations).
(9) Limitations on refunds and credits claimed by organizations
exempt from sales and use tax under Tax Code, §151.310. Organizations
that are exempt from sales and use tax under Tax Code, §151.310
should see §3.322 of this title (relating to Exempt Organizations)
for information about limitations on refunds and credits that may
be claimed depending on whether the organization qualifies for exemption
either before or on or after September 1, 2009.
(10) Requirements to toll the statute of limitations.
(A) Subject to the other paragraphs of this subsection
regarding the statute of limitations, a refund claim that is filed
with the comptroller will toll the statute of limitations if the following
requirements are met:
(i) the claim states fully and in detail each reason
or ground on which the claim is founded, as required by subsection
(a)(4)(A) of this section;
(ii) the claim identifies the period during which the
claimed overpayment was made, as required by subsection (a)(4)(B)
of this section;
(iii) if the claim is being filed by a non-permitted
person who is an assignee of or successor to a refund that may be
owed, the person submits with the claim for refund the assignment
of right to refund; and
(iv) if a person other than the person to whom the
refund is due is submitting the claim for refund, a power of attorney
is submitted with the claim.
(B) If the refund claim meets the requirements of subparagraph
(A) of this paragraph, but does not meet the other requirements under
subsection (a)(4) of this section, the claim will be denied and the
person may request a hearing as provided by subsection (e) of this
section.
(C) If a person does not meet the requirements of subparagraph
(A) of this paragraph, the statute of limitations will not be tolled.
(c) Interest on Refunds.
(1) Eligibility for Interest. Interest is earned on
refunds except in the following situations:
(A) a refund claim for a period for which a report
is due before January 1, 2000;
(B) credits taken by a taxpayer on a return;
(C) tax paid on an account that is later determined
to be uncollectable and written off as a bad debt for federal tax
purposes. See §3.302 of this title (relating to Accounting Methods,
Credit Sales, Bad Debt Deductions, Repossessions, Interest on Sales
Tax, and Trade-Ins); and
(D) as otherwise determined by the comptroller.
(2) Interest rates.
(A) Refunds claimed before September 1, 2005. The interest
rate for a refund that is claimed before September 1, 2005 and granted
for a period for which a report is due after December 31, 1999 is
the rate set in Tax Code, §111.060, as provided in Tax Code,
§111.064.
(B) Refunds claimed on or after September 1, 2005.
The interest rate for a refund that is claimed on or after September
1, 2005 and granted for a period for which a report is due after December
31, 1999 is the lesser of the annual rate of interest earned on deposits
in the state treasury during December of the previous calendar year
as determined by the comptroller or the rate set in Tax Code, §111.060,
as provided in Tax Code, §111.064.
(3) Calculation of Interest. Interest accrues on refund
claims identified in paragraph (1) of this subsection at a rate determined
by paragraph (2) of this subsection on the net amount that is found
to be erroneously paid:
(A) beginning on the later of 60 days after the date
of payment or the due date of the tax report; and
(B) ending, as determined by the comptroller, on either:
(i) the date of allowance of credit that results from
either a final decision that the comptroller has issued or from an
audit; or
(ii) a date that is not more than 10 days before the
date of the refund warrant.
(d) Determining when a refund is claimed.
(1) The postmark date or its equivalent on a refund
request determines when a refund is claimed.
(2) If refund claims or credits are pending with the
comptroller and a person makes additional claims for refund, the date
of each claim controls whether interest is due and the amount applicable
to each separate claim.
(e) Denial of refund claim.
(1) The comptroller will notify the claimant if the
comptroller determines that a refund claim cannot be granted in part
or in full and will also notify the claimant which requirements of
subsection (a)(4) of this section were not met. The claimant may then
request a refund hearing within 30 days of the denial.
(2) A person may not refile a refund claim for the
same transaction or item, tax type, period, and ground or reason that
was previously denied by the comptroller.
(3) After receiving a timely request for a refund hearing,
the comptroller may issue a written demand notice requesting that
all documentation to enable the comptroller to verify the claim be
produced within 180 days from the date of the demand notice. A person
may not introduce into evidence at the hearing any documents that
were not timely produced as requested by the demand notice. This limitation
does not apply to a judicial proceeding filed in accordance with Tax
Code, Chapter 112. The ability of the comptroller to demand documentation
once a claim for a refund hearing is requested does not eliminate
the requirement that persons provide documentation under subsection
(a)(4)(E) of this section when the refund is first claimed.
(f) Payments under protest. A person who intends to
file suit under Tax Code, Chapter 112, Subchapter B, must submit to
the comptroller a letter of protest with the payment of the tax that
is the subject of the protest. For information about payments under
protest and electronic funds transfer payments, see §3.9(h) of
this title (relating to Electronic Filing of Returns and Reports;
Electronic Transfer of Certain Payments by Certain Taxpayers). The
letter of protest must state fully and in detail every reason that
the taxpayer contends that the assessment is unlawful or unauthorized
and must accompany the payment. If the payment and letter of protest
do not accompany one another, the payment will not be deemed to have
been made under protest. The comptroller will advise the taxpayer
of the amount of payment under protest that the comptroller has received
and the date of the payment.
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