Claim for refund

(a) Except as otherwise provided in § 12-732(b)-1 of this Part, if any tax imposed by the Income Tax Act has been overpaid, a taxpayer may file a claim for refund in writing with the Commissioner within three years from the due date for which such overpayment was made (or if an agreement between the Department and the taxpayer is executed in accordance with § 12-733(f)-1, during the time within which a deficiency may be assessed pursuant to the agreement), stating the specific grounds upon which such claim is founded. For purposes of this section, the "due date for which such overpayment was made" means the original due date of the tax, even if a request for extension of time for payment of the tax has been granted pursuant to § 12-723-3 of Part X.

(b) To the amount of any refund, other than (i) any refund of tax paid with a tentative tax return or (ii) any refund credited under Section 12-742 of the general statutes against a debt or obligation for which the Commissioner of Administrative Services sought reimbursement or (iii) any refund contributed in accordance with 1993 Conn. Pub. Acts 233, interest shall be added at the rate of 0.75% per month or fraction thereof elapsing between the ninetieth day following receipt of the claim for refund by the Department and the date of notice by the Department that such refund is due. A claim for refund may be made by filing a properly completed (1) tax return that reports tax overpaid, whether payment was made through withholding or through installments of estimated tax or with a tentative tax return or (2) amended tax return that reports tax overpaid with a tax return.

(c) Because no interest shall be added to any refund of tax paid with a tentative tax return, where a taxpayer has filed a tentative tax return and a refund is claimed on the taxpayer's subsequently filed tax return, interest may be added only to that portion of the refund that exceeds the payment that accompanied the tentative tax return. This limitation shall not apply where a taxpayer subsequently files an amended tax return, and interest may be added to the amount of any refund claimed, even if the payment that accompanied the previously filed tentative tax return exceeds the amount of the refund claimed.

(d) For purposes of this section:

(1) "Tax return" means the Form CT-1040, Form CT-1040NR/PY, Form CT-1041 or any other tax return as may be required under the Income Tax Act.

(2) "Tentative tax return" means the Form CT-1040EXT, Form CT-1041EXT or any other tentative tax return as may be required under the Income Tax Act.

(3) "Amended tax return" means the Form CT-1040X or any other amended tax return as may be required under the Income Tax Act.

(e) Accrual of interest on a refund is illustrated by the following examples:

Example 1: On March 16, 1993, B, a calendar year resident individual, files a 1992 Form CT-1040, reporting a $500 overpayment of Connecticut income tax and claiming a refund thereof. If notice has not been given by the Department by June 14, 1993 that the refund is due, interest shall accrue starting June 15, 1993 to the date of notification by the Department that such refund is due.

Example 2: On April 15, 1993, C, a calendar year nonresident individual, files a 1992 Form CT-1040EXT and pays the $300 balance of the tax tentatively believed to be due. On July 15, 1993, C files a 1992 Form CT-1040NR/PY, reporting a $500 overpayment of Connecticut income tax and claiming a refund thereof. Interest shall accrue on the portion of the refund that exceeds the payment that accompanied the tentative tax return. If notice has not been given by the Department by October 13, 1993 that the refund is due, interest shall accrue on $200 starting October 14, 1993 to the date of notification by the Department that such refund is due.

Example 3: On April 15, 1993, D, a calendar year resident trust, files a 1992 Form CT-1041EXT and pays the $1000 balance of the tax tentatively believed to be due. On July 15, 1993, D files a 1992 Form CT-1041, reporting that the tax due is equal to the tax previously paid. On June 1, 1994, D files an amended 1992 Form CT-1041, reporting a $500 overpayment of Connecticut income tax and claiming a refund thereof. If notice has not been given by the Department by August 30, 1994 that the refund is due, interest shall accrue starting August 31, 1994 to the date of notification by the Department that such refund is due. The limitation under subsection (c) of this section does not apply where, as here, D subsequently filed an amended tax return, even if, as here, the payment that accompanied the previously filed tentative tax return exceeds the amount of the refund.

Example 4: The facts are the same as in Example 3, except that the amended 1992 Form CT-1041 was filed on May 1, 1996. The claim for refund is not a direct result of a change to, correction of or amendment of D's federal tax return. The claim for refund is not timely and cannot be allowed because the claim was not filed within three years from the due date for which such overpayment was made (April 15, 1993).

(f) No claim for refund may be filed by an individual who has commenced a case under chapter 7 or chapter 11 of title 11 of the United States Code for a taxable year or years preceding the commencement of such case. To the extent that the individual, but for the commencement of such case, could have filed such a claim, the trustee may file the claim.

(Effective November 18, 1994; Amended March 8, 2006)

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