Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 465.0058


(1) Generally

465.0058 Partial Payment Claims for Refund. The Board of Equalization received a timely refund claim for partial payments that were applied against a final Board-assessed liability. The payments had been applied to interest and penalty because the tax portion of the liability was already paid in full. The grounds presented in the claim for refund were confined to audit issues that resulted from the determination of the tax.

With respect to partial payments that are applied to interest and/or penalty assessments, the grounds for refund claims must pertain to one or more of the following: 1) the propriety of the imposition of interest or the subject penalty; 2) the proper measure on which such interest accrues or on which the penalty is assessed; or 3) some statutory basis for claimed relief from the interest and/or penalty assessments.

Once the tax assessment portion of a final Board-assessed determination has been fully paid, any subsequent partial payments of interest and/or penalty assessments should only be applied to the outstanding interest and/or penalty assessments. The application or reapplication of partial payments in a way that extends or reopens the statute of limitations with respect to claims for refunds pertaining to claimed overpayments of tax assessments is an impermissible violation of the Board's constitutionally mandated duty to enforce the prompt payment of public tax revenues. 5/12/03. (2004–1).