The bill amends Minnesota Statutes 2024, section 289A.40, subdivision 1, to modify the time limit for filing claims for refunds of overpaid state taxes. It establishes 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 provision allowing claims to be filed within one year from an order assessing tax or determining an appeal has been deleted.

Additionally, the bill introduces new 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 cannot exceed the tax, penalties, and interest paid during that period. 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 specifies that the new provisions will take effect the day after final enactment, applying to claims filed thereafter.

Statutes affected:
Introduction: 289A.40