This bill amends Minnesota Statutes 2024, section 289A.40, subdivision 1, to modify the time limit for filing claims for refunds of overpaid state taxes. The new provision stipulates that claims must be filed within 3-1/2 years from the date prescribed for filing the return, including any granted extensions, or within two years from the date the tax, penalties, or interest was paid. The previous language, which allowed for claims to be filed within one year of an order assessing tax or determining an appeal, has been removed.

Additionally, the bill introduces specific limitations on the amount of refund that can be claimed based on when the claim is filed. If filed within the 3-1/2 year period, the refund is limited to the tax, penalties, and interest paid during that time. If filed after this period but within two years, the refund is limited to the amounts paid during the two years preceding the claim. The bill also clarifies that prepayments made through withholding or estimated tax payments are considered paid on the due date, and it establishes that the new provisions will take effect the day after final enactment, applying to claims filed thereafter.

Statutes affected:
Introduction: 289A.40