1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 602 By: Rader
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6 AS INTRODUCED
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7 An Act relating to tax returns; amending 68 O.S.
7 2021, Sections 2373 and 2375, which relate to payment
8 of refunds, extensions, and delinquency and
8 deficiency of payments; requiring certain claims be
9 made in the form prescribed by the Oklahoma Tax
9 Commission; limiting claims made to within a period
10 of certain date; prohibiting refund for claims made
10 after certain period; providing exception; modifying
11 limitation on certain amount of refund to taxes paid
11 in certain preceding period; deleting requirement
12 that certain information filed constitutes a claim;
12 prohibiting application of limitation to certain
13 claims filed; modifying date requiring taxpayer to
13 remit income tax due; excluding extensions from date
14 taxes become delinquent; updating statutory language;
14 and providing an effective date.
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17 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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18 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2373, is
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19 amended to read as follows:
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20 Section 2373. A. Any claim for refund filed pursuant to this
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21 section must be made on a return, in the form prescribed by the
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22 Oklahoma Tax Commission.
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23 B. Any claim for refund of an overpayment of any tax imposed by
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24 Section 2355 of this title must be made within three (3) years from
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 1 the due date of the return, including the period of any extension of
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2 time for filing a return, or two (2) years from the payment of the
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3 tax liability, whichever period expires later, or, if no return was
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4 filed by the taxpayer, within two (2) years from the time the tax
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5 was paid.
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6 C. Except as provided in subsection H of Section 2375 of this
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7 title, no refund shall be allowed or made after the expiration of
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8 the period of limitation prescribed in subsection B of this section
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9 for the filing of a claim for refund. If a claim for refund is
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10 filed during the period prescribed in subsection B of this section,
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11 the amount of the refund, if any, shall not exceed the amount of tax
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12 paid within the period, immediately preceding the filing of the
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13 claim, equal to three (3) years plus the period of any extension of
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14 time for filing a return. If the claim was not filed within the
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15 three-year period prescribed in subsection B of this section, the
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16 refund shall not exceed the portion of the tax paid during the two
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17 (2) years immediately preceding the filing of the claim.
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18 D. If, upon any revision or adjustment, including overpayment
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19 or illegal payment on account of income derived from tax-exempt
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20 Indian land, any refund is found to be due any taxpayer, it shall be
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21 paid out of the “Income Tax Withholding Refund Account”, created by
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22 Section 2385.16 of this title, in the same manner as refunds are
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23 paid pursuant to such section. The information filed, reflecting
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24 the revision or adjustment, shall constitute the claim for refund.
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 1 E. Except as provided in subsection H of Section 2375 of this
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2 title, the amount of the refund shall not exceed the portion of the
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3 tax paid during the three (3) years immediately preceding the filing
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4 of the claim, or, if no claim was filed, then during the three (3)
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5 years immediately preceding the allowance of the refund. However,
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6 this The three-year limitation set forth in subsection C of this
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7 section shall not apply to the amount of refunds payable upon claims
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8 filed by members of federally recognized Indian tribes or the United
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9 States on behalf of its Indian wards or former Indian wards, to
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10 recover taxes illegally collected from tax-exempt lands. In the
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11 case of any refund to a member of a federally recognized Indian
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12 tribe or to the United States on behalf of its Indian wards or
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13 former Indian wards, to recover taxes illegally collected on bonus
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14 payments from oil and gas leases located on tax-exempt Indian lands
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15 pursuant to this section, the Tax Commission shall pay interest on
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16 all refunds issued after January 1, 1996, at the rate of six percent
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17 (6%) per annum from the date of payment by the taxpayer to the date
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18 of the refund.
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19 F. In cases where the Tax Commission and the taxpayer have
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20 signed a consent, as provided by law, extending the period during
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21 which the tax may be assessed, the period during which the taxpayer
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22 may file a claim for refund or during which an allowance for a
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23 refund may be made shall be automatically extended to the final date
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24 fixed by such consent plus thirty (30) days.
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 1 G. The Oklahoma Tax Commission may authorize the use of direct
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2 deposit in lieu of refund checks for electronically filed income tax
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3 returns.
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4 SECTION 2. AMENDATORY 68 O.S. 2021, Section 2375, is
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5 amended to read as follows:
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6 Section 2375. A. At the time of transmitting the return
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7 required hereunder to the Oklahoma Tax Commission On the original
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8 due date of the return, not including any extensions, the taxpayer
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9 shall remit therewith to the Tax Commission the amount of tax due
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10 under the applicable provisions of Section 2351 et seq. of this
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11 title. Failure to pay such tax on or before the date the return is
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12 due, not including any extensions, shall cause the tax to become
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13 delinquent. If the return is filed electronically, the amount of
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14 the tax due pursuant to the provisions of this article shall be due
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15 on or before the twentieth day of April following the close of the
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16 taxable year regardless of when the return is electronically filed.
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17 The tax shall be deemed delinquent if unpaid after the twentieth day
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18 of April if the return is electronically filed. Provided, if the
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19 Internal Revenue Code provides for a later due date for returns of
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20 individuals, the Tax Commission shall accept payments made with
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21 returns filed by individuals by such date and such payments shall be
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22 considered as timely paid.
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23 B. If any tax due under Section 2351 et seq. of this title,
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24 except a deficiency determined under Section 221 of this title, is
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 1 not paid on or before the date such tax becomes delinquent, a
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2 penalty of five percent (5%) of the total amount of the tax due
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3 shall be added thereto, collected, and paid. However, the Tax
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4 Commission shall not collect the penalty assessed if the taxpayer
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5 remits the tax and interest within sixty (60) days of the mailing of
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6 a proposed assessment or voluntarily pays the tax upon the filing of
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7 an amended return.
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8 C. If any part of deficiency, arbitrary, or jeopardy assessment
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9 made by the Tax Commission is based upon or occasioned by the
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10 refusal of any taxpayer to file with the Tax Commission any return
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11 as required by Section 2351 et seq. of this title, within ten (10)
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12 days after a written demand for such report or return has been
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13 served upon any taxpayer by the Tax Commission by registered letter
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14 with a return receipt attached, the Tax Commission may assess and
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15 collect, as a penalty, twenty-five percent (25%) of the amount of
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16 the assessment. In the exercise of the authority granted by
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17 subsection C of Section 223 and Section 224 of this title, the Tax
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18 Commission shall assess the tax as an estimated tax on the basis of
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19 its own determination of the Oklahoma taxable income of the
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20 taxpayer, to be adjusted if and when Oklahoma taxable income is
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21 ascertained under the provisions of Section 2351 et seq. of this
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22 title.
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23 D. If any part of any deficiency was due to negligence or
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24 intentional disregard, without the intent to defraud, then ten
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 1 percent (10%) of the total amount of the deficiency, in addition to
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2 such deficiency, including interest as authorized by law, shall be
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3 added, collected, and paid.
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4 E. If any part of any deficiency was due to fraud with intent
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5 to evade tax, then fifty percent (50%) of the total amount of the
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6 deficiency, in addition to such deficiency, including interest as
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7 herein provided, shall be added, collected, and paid.
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8 F. The provisions in this section for penalties shall supersede
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9 all other provisions for penalties on income taxes. The provisions
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10 in this section for penalties shall supersede the provisions in the
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11 Uniform Tax Procedure Code, Section 201 et seq. of this title, only
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12 to the extent of conflict between such provisions and the penalty
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13 provisions in this section.
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14 G. All taxes, penalties, and interest levied under Section 2351
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15 et seq. of this title must be paid to the Tax Commission at Oklahoma
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16 City, in the form or remittance required by and payable to it.
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17 H. 1. The period of time prescribed in Section 223 of this
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18 title, in which the procedures for the assessment of income tax may
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19 be commenced by the Tax Commission, shall be tolled and extended
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20 until the amount of taxable income for any year of a taxpayer under
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21 the Internal Revenue Code has been finally determined under
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22 applicable federal law and for the additional period of time
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23 hereinafter provided in this subsection.
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 1 2. If, in such final determination, the amount of taxable
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2 income for any year of a taxpayer under the Internal Revenue Code is
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3 changed or corrected from the amounts included in the federal return
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4 of the taxpayer for such year and such change or correction affects
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5 the Oklahoma taxable income of the taxpayer for such year, the
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6 taxpayer, within one (1) year after such final determination of the
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7 corrected taxable income, shall file an amended return under Section
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8 2351 et seq. of this title reporting the corrected Oklahoma taxable
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9 income, and the Tax Commission shall make assessment or refund
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10 within two (2) years from the date the return required by this
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11 paragraph is filed and not thereafter, unless a waiver is agreed to
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12 and signed by the Tax Commission and the taxpayer.
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13 3. In the event of failure by a taxpayer to comply with the
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14 provisions of paragraph 2 of this subsection, the statute of
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15 limitations shall be tolled for a period of time equal to the time
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16 between the date the amended return under this subsection is
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17 required until such return is actually furnished.
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18 4. In administering the provisions of this subsection, the Tax
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19 Commission shall have the authority to audit each and every item of
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20 income, deduction, credit, or any other matter related to the return
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21 where such items or matters relate to allocation or apportionment
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22 between the State of Oklahoma this state and some other state or the
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23 federal government even if such items or matters were not affected
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24 by revisions made in such final determination. Where such items or
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 1 matters do not relate to allocation or apportionment between the
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2 State of Oklahoma this state and some other state or the federal
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3 government, the Tax Commission shall be bound by the revisions made
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4 in such final determination.
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5 5. The provisions of this subsection shall be effective on
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6 September 1, 1993, and except in the case of tax years which are the
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7 subject of closing, settlement, or resolution agreements entered
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8 into by taxpayers and the Tax Commission, keep open all tax years
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9 beginning after June 30, 1988, and all tax years beginning on or
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10 before June 30, 1988, for which extensions of the statute of
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11 limitations have been executed by the taxpayer, but only to the
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12 extent such extensions remain open on the date of enactment hereof.
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13 SECTION 3. This act shall become effective November 1, 2023.
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