Ind. Code ch. 6-8.1-9

Ind. Code ch. 6-8.1-9
in effect

Ind. Code § 6-8.1-9-1 Filing of claim; time limitation; considerations and hearing; decision; appeal

Sec. 1. (a) If a person has paid more tax than the person determines is legally due for a particular taxable period, the person may file a claim for a refund with the department. Except as provided in subsections (j), (k), (l), (m), and (n), in order to obtain the refund, the person must file the claim with the department within three (3) years after the later of the following: (1) The due date of the return. (2) The date of payment. For purposes of this section, the due date for a return filed for a periodic tax is thirty-one (31) days after the end of the calendar year which contains the taxable period for which the return is filed. The claim must set forth the amount of the refund to which the person is entitled and the reasons that the person is entitled to the refund. (b) After considering the claim and all evidence relevant to the claim, the department shall issue a decision on the claim, stating the part, if any, of the refund allowed and containing a statement of the reasons for any part of the refund that is denied. The department shall mail a copy of the decision to the person that filed the claim. If the person disagrees with a part of the decision on the claim, the person may file a protest and request a hearing with the department. If the department allows the full amount of the refund claim, a warrant for the payment of the claim is sufficient notice of the decision. (c) The tax court shall hear the appeal de novo and without a jury, and after the hearing may order or deny any part of the appealed refund. The court may assess the court costs in any manner that it feels is equitable. The court may enjoin the collection of any of the listed taxes under IC 33-26-6-2. The court may also allow a refund of taxes, interest, and penalties that have been paid to and collected by the department. (d) The decision on the claim must state that the person has sixty (60) days from the date the decision is mailed to file a written protest. If the person files a protest and requests a hearing on the protest, the department shall: (1) set the hearing at the department's earliest convenient time; and (2) notify the person by United States mail of the time, date, and location of the hearing. (e) The department may hold the hearing at the location of its choice within Indiana if that location complies with IC 6-8.1-3-8.5. (f) After conducting a hearing on a protest, or after making a decision on a protest when no hearing is requested, the department shall issue a memorandum of decision or order denying a refund and shall send a copy of the decision through the United States mail to the person that filed the protest. If the department allows the full amount of the refund claim, a warrant for the payment of the claim is sufficient notice of the decision. The department may continue the hearing until a later date if the taxpayer presents additional information at the hearing or the taxpayer requests an opportunity to present additional information after the hearing. (g) A person that disagrees with any part of the department's determination in a memorandum of decision or order denying a refund may request a rehearing not more than thirty (30) days after the date on which the memorandum of decision or order denying a refund is issued by the department. The department shall consider the request and may grant the rehearing if the department reasonably believes that a rehearing would be in the best interests of the taxpayer and the state. If the department grants the rehearing, the department shall issue a supplemental order denying a refund or a supplemental memorandum of decision based on the rehearing, whichever is applicable. (h) If the person disagrees with any part of the department's determination, the person may appeal the determination, regardless of whether or not the person protested the tax payment or whether or not the person has accepted a refund. The person must file the appeal with the tax court. The tax court does not have jurisdiction to hear a refund appeal if: (1) the appeal is filed more than ninety (90) days after the latest of the dates on which: (A) the memorandum of decision or order denying a refund is issued by the department, if the person does not make a timely request for a rehearing under subsection (g) on the memorandum of decision or order denying a refund; (B) the department issues a denial of the person's timely request for a rehearing under subsection (g) on the memorandum of decision or order denying a refund; or (C) the department issues a supplemental memorandum of decision or supplemental order denying a refund following a rehearing granted under subsection (g); or (2) the appeal is filed both before the decision is issued and before the one hundred eighty-first day after the date the person files the claim for a refund with the department. The ninety (90) day period may be extended according to the terms of a written agreement signed by both the department and the person. The agreement must specify a date upon which the extension will terminate and include a statement that the person agrees to preserve the person's records until that specified termination date. The specified termination date agreed upon under this subsection may not be more than ninety (90) days after the expiration of the period otherwise specified by this subsection. (i) With respect to the vehicle excise tax, this section applies only to penalties and interest paid on assessments of the vehicle excise tax. Any other overpayment of the vehicle excise tax is subject to IC 6-6-5. (j) If a taxpayer's federal taxable income, federal adjusted gross income, or federal income tax liability for a taxable year is modified by the Internal Revenue Service, and the modification would result in a reduction of the tax legally due, the due date by which the taxpayer must file a claim for refund with the department is the latest of: (1) the date determined under subsection (a); (2) the date that is one (1) year after the date of the modification by the Internal Revenue Service as provided under: (A) IC 6-3-4-6(c) and IC 6-3-4-6(d) (for the adjusted gross income tax); or (B) IC 6-5.5-6-6(c) and IC 6-5.5-6-6(d) (for the financial institutions tax); or (3) in the case of a modification described in IC 6-8.1-5-2(k)(1) through IC 6-8.1-5-2(k)(3), the date provided in IC 6-3-4.5 for such refunds or December 31, 2021, whichever is later. (k) Notwithstanding any other provision of this section, if an individual received a severance payment described in Section 3(a)(1)(A) of the Combat-Injured Veterans Tax Fairness Act of 2016 (P.L. 114-292) and upon which the United States Secretary of Defense withheld tax under IC 6-3, IC 6-3.5-1.1 (before its repeal), IC 6-3.5-6 (before its repeal), IC 6-3.5-7 (before its repeal), or IC 6-3.6, the individual must file a claim for refund for taxes that were overpaid and attributable to the severance payment not later than December 31, 2020. Any refund under this subsection shall be computed without regard to subsection (a)(2). The department may establish procedures to provide standard refund amounts if a standard refund amount is requested from the Internal Revenue Service. (l) Notwithstanding any other provision of this section, a taxpayer may file a claim for refund for any taxes under IC 6-3 or IC 6-5.5 that the taxpayer expected to be due as a result of an Internal Revenue Service audit not later than the date otherwise prescribed in this section or one (1) year after the date the taxpayer is notified that the audit resulted in no change or, if the audit resulted in a modification, the date of the modification as provided under: (1) IC 6-3-4-6(c) and IC 6-3-4-6(d) (for adjusted gross income tax); or (2) IC 6-5.5-6-6(c) and IC 6-5.5-6-6(d) (for the financial institutions tax); whichever is later. (m) If a taxpayer has an overpayment for a listed tax as a result of a credit of taxes paid to another state, country, or local jurisdiction in another state or country, and those taxes were assessed by the state, country, or local jurisdiction after the period for which a refund could have been claimed for that listed tax under this section, the period for requesting the refund under this section is extended to one hundred eighty (180) days after payment of the tax to the state, country, or local jurisdiction. (n) If an agreement to extend the assessment time period is entered into under IC 6-8.1-5-2(i), the period during which a person may file a claim for a refund under subsection (a) is extended to the same date to which the assessment time period is extended. As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.291-1985, SEC.12; P.L.335-1989(ss), SEC.22; P.L.71-1993, SEC.25; P.L.119-1998, SEC.19; P.L.98-2004, SEC.74; P.L.2-2005, SEC.22; P.L.211-2007, SEC.42; P.L.131-2008, SEC.30; P.L.182-2009(ss), SEC.256; P.L.172-2011, SEC.89; P.L.137-2012, SEC.109; P.L.242-2015, SEC.39; P.L.256-2017, SEC.88; P.L.86-2018, SEC.81; P.L.146-2020, SEC.44; P.L.159-2021, SEC.35; P.L.118-2024, SEC.23; P.L.128-2026, SEC.78.

Ind. Code § 6-8.1-9-1.2 Filing fee refund

Sec. 1.2. Notwithstanding section 1(d) of this chapter, if a taxpayer prevails in a complaint that is placed on the small claims docket under IC 33-26-5, the tax court shall order the refund of the taxpayer's filing fee under IC 33-26-9-1 from the state general fund. As added by P.L.100-1989, SEC.1. Amended by P.L.98-2004, SEC.75.

Ind. Code § 6-8.1-9-1.3 Tax refunds; allocation among funds

Sec. 1.3. If the department makes a refund of taxes paid under IC 6-2.5, IC 6-7-1, IC 6-7-2, or IC 7.1, the department shall charge each fund or account into which the taxes have been allocated or distributed with that account's or that fund's proportionate share of the amount of taxes refunded. As added by P.L.261-2013, SEC.39.

Ind. Code § 6-8.1-9-1.5 Tax refunds; authority for the department to issue without a taxpayer filing a refund claim in certain circumstances

Sec. 1.5. (a) The department may issue a refund or credit without a taxpayer filing a refund claim in the event of: (1) an error by the department; (2) an error determined by the department; or (3) a taxpayer's overpayment determined by the department under an audit or investigation. (b) The department shall prescribe rules or guidelines to govern the circumstances under which the department may issue a refund or credit under this section. (c) The department may not issue a refund or credit under this section if the period for filing a refund claim under this article has expired before the issuance of the refund or credit. (d) Nothing in this section shall constitute a requirement that the department issue a refund or credit for an overpayment. As added by P.L.212-2018(ss), SEC.28.

Ind. Code § 6-8.1-9-2 Excess tax payments; procedure for credit or refund; pass through entities

Sec. 2. (a) If the department finds that a person has paid more tax for a taxable year than is legally due, the department shall apply the amount of the excess against any amount of that same tax that is assessed and is currently due. The department may then apply any remaining excess against any of the listed taxes that have been assessed against the person and that are currently due. Subject to subsection (c), if any excess remains after the department has applied the overpayment against the person's tax liabilities, the department shall either refund the amount to the person or, at the person's request, credit the amount to the person's future tax liabilities. (b) Subject to subsection (c), if a court determines that a person has paid more tax for a taxable year than is legally due, the department shall refund the excess amount to the person. (c) As used in this subsection, "pass through entity" means a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2), a partnership, a limited liability company, or a limited liability partnership and "pass through income" means a person's distributive share of adjusted gross income for a taxable year attributable to the person's interest in a pass through entity. This subsection applies to a person's overpayment of adjusted gross income tax for a taxable year if: (1) the person has filed a timely claim for refund with respect to the overpayment under section 1 of this chapter; (2) the overpayment: (A) is with respect to a taxable year beginning before January 1, 2009; and (B) is attributable to amounts paid to the department by: (i) a nonresident shareholder, partner, or member of a pass through entity; (ii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13 on behalf of a nonresident shareholder, partner, or member of the pass through entity; or (iii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13 on behalf of a nonresident shareholder, partner, or member of another pass through entity; and (3) the overpayment arises from a determination by the department or a court that the person's pass through income is not includible in the person's adjusted gross income derived from sources within Indiana as a result of the application of IC 6-3-2-2(a)(5) and IC 6-3-2-2.2(g). The department shall apply the overpayment to the person's liability for taxes that have been assessed and are currently due as provided in subsection (a) and apply any remaining overpayment as a credit or credits in satisfaction of the person's liability for listed taxes in taxable years beginning after December 31, 2008. If the person, including any successor to the person's interest in the overpayment, does not have sufficient liability for listed taxes against which to credit all the remaining overpayment in a taxable year beginning after December 31, 2008, and ending before January 1, 2019, the taxpayer is not entitled for any taxable year ending after December 31, 2018, to have any part of the remaining overpayment applied, refunded, or credited to the person's liability for listed taxes. If an overpayment or part of an overpayment is required to be applied as a credit under this subsection to the person's liability for listed taxes for a taxable year beginning after December 31, 2008, and has not been determined by the department or a court to meet the conditions of subdivision (3) by the due date of the person's return for a listed tax for a taxable year beginning after December 31, 2008, the department shall refund to the person that part of the overpayment that should have been applied as a credit for such taxable year within ninety (90) days of the date that the department or a court makes the determination that the overpayment meets the conditions of subdivision (3). However, the department may establish a program to refund small overpayment amounts that do not exceed the threshold dollar value established by the department rather than crediting the amounts against tax liability accruing for a taxable year after December 31, 2008. A person that receives a refund or credit under this subsection shall file a report with the department in the form and in the schedule specified by the department that identifies under penalties of perjury the home state or other jurisdiction where the income subject to the refund or credit was reported as income attributable to that state or jurisdiction. (d) An excess tax payment that is not refunded or credited against a current or future tax liability within ninety (90) days after the date the refund claim is filed, the date the tax payment was due, or the date the tax was paid, whichever is latest, accrues interest from: (1) the date the refund claim is filed, if the refund claim is filed before July 1, 2015; or (2) for a refund claim filed after June 30, 2015, the latest of: (A) the date the tax payment was due; (B) the date the tax was paid; (C) the date the tax return was filed for the period and tax type for which the refund is claimed; (D) in the case of a refund based on payment of a tax by the taxpayer to another state, country, or locality, the date of such payment of tax to the other state, country, or locality; or (E) July 1, 2015; at the rate established under IC 6-8.1-10-1 until a date, determined by the department, that does not precede by more than thirty (30) days, the date on which the refund or credit is made. As used in this subsection, "refund claim" includes a return and an amended return that indicates an overpayment of tax. For purposes of this subsection only, the due date for the payment of a periodic tax is January 31 of the calendar year following the calendar year that contains the taxable period for which the payment is remitted. (e) A person who is liable for the payment of excise taxes under IC 7.1-4-3 or IC 7.1-4-4 is entitled to claim a credit against the person's excise tax liability in the amount of the excise taxes paid in duplicate by the person, or the person's assignors or predecessors, upon both: (1) the receipt of the goods subject to the excise taxes, as reported by the person, or the person's assignors or predecessors, on excise tax returns filed with the department; and (2) the withdrawal of the same goods from a storage facility operated under 19 U.S.C. 1555(a). (f) The amount of the credit under subsection (e) is equal to fifty percent (50%) of the amount of excise taxes: (1) that were paid by the person as described in subsection (e)(2); (2) that are duplicative of excise taxes paid by the person as described in subsection (e)(1); and (3) for which the person has not previously claimed a credit. The credit may be claimed by subtracting the amount of the credit from the amount of the person's excise taxes reported on the person's monthly excise tax returns filed under IC 7.1-4-6 with the department for taxes imposed under IC 7.1-4-3 or IC 7.1-4-4. The amount of the credit that may be taken monthly by the person on each monthly excise tax return may not exceed ten percent (10%) of the excise tax liability reported by the person on the monthly excise tax return. The credit may be claimed on not more than thirty-six (36) consecutive monthly excise tax returns beginning with the month in which credit is first claimed. (g) The amount of the credit calculated under subsection (f) must be used for capital expenditures to: (1) expand employment; or (2) assist in retaining employment within Indiana. The department shall annually verify whether the capital expenditures made by the person comply with this subsection. (h) An excess tax payment under section 1(k) of this chapter that is not refunded or credited against a current or future tax liability within ninety (90) days after the date the refund claim is filed, the date the tax payment was due, or the date the tax was paid, whichever is latest, accrues interest from April 1, 2020. For purposes of this subsection, a refund claim filed prior to April 1, 2020, shall be treated as filed on April 1, 2020. As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.6-1987, SEC.13; P.L.92-1987, SEC.11; P.L.48-1994, SEC.2; P.L.28-1997, SEC.27; P.L.111-2006, SEC.10; P.L.182-2009(ss), SEC.257; P.L.293-2013(ts), SEC.32; P.L.242-2015, SEC.40; P.L.146-2020, SEC.45; P.L.159-2021, SEC.36; P.L.118-2024, SEC.24.

Ind. Code § 6-8.1-9-3 Gasoline, special fuel, and vehicle excise taxes; inapplicability

Sec. 3. This chapter does not apply to refund claims made for gasoline taxes under IC 6-6-1.1, special fuel taxes under IC 6-6-2.5, or the vehicle excise tax (excluding interest and penalties) under IC 6-6-5. As added by Acts 1980, P.L.61, SEC.1. Amended by Acts 1981, P.L.93, SEC.10; Acts 1982, P.L.59, SEC.5; P.L.335-1989(ss), SEC.23; P.L.277-1993(ss), SEC.53; P.L.111-2006, SEC.11; P.L.256-2017, SEC.89.

Ind. Code § 6-8.1-9-4 Taxpayer election to contribute all or part of the taxpayer's refund

Sec. 4. (a) Every individual (other than a nonresident) who files an individual income tax return and who is entitled to a refund from the department of state revenue because of the overpayment of income tax for a taxable year may designate on the individual's annual state income tax return that either a specific amount or all of the refund to which the individual is entitled shall be paid over to one (1) or more of the funds described in subsection (c). If the refund to which the individual is entitled is less than the total amount designated to be paid over to one (1) or more of the funds described in subsection (c), all of the refund to which the individual is entitled shall be paid over to the designated funds, but in an amount or amounts reduced proportionately for each designated fund. If an individual designates all of the refund to which the individual is entitled to be paid over to one (1) or more of the funds described in subsection (c) without designating specific amounts, the refund to which the individual is entitled shall be paid over to each fund described in subsection (c) in an amount equal to the refund divided by the number of funds described in subsection (c), rounded to the lowest cent, with any part of the refund remaining due to the effects of rounding to be deposited in the nongame fund. (b) Every husband and wife (other than nonresidents) who file a joint income tax return and who are entitled to a refund from the department of state revenue because of the overpayment of income tax for a taxable year may designate on their annual state income tax return that either a specific amount or all of the refund to which they are entitled shall be paid over to one (1) or more of the funds described in subsection (c). If the refund to which a husband and wife are entitled is less than the total amount designated to be paid over to one (1) or more of the funds described in subsection (c), all of the refund to which the husband and wife are entitled shall be paid over to the designated funds, but in an amount or amounts reduced proportionately for each designated fund. If a husband and wife designate all of the refund to which the husband and wife are entitled to be paid over to one (1) or more of the funds described in subsection (c) without designating specific amounts, the refund to which the husband and wife are entitled shall be paid over to each fund described in subsection (c) in an amount equal to the refund divided by the number of funds described in subsection (c), rounded to the lowest cent, with any part of the refund remaining due to the effects of rounding to be deposited in the nongame fund. (c) Designations under subsection (a) or (b) may be directed only to the following funds: (1) The nongame fund. (2) The state general fund for exclusive use in funding public education for kindergarten through grade 12. (3) The military family relief fund. (d) The instructions for the preparation of individual income tax returns shall contain a description of the purposes of the following: (1) The nongame and endangered species program. The description of this program shall be written in cooperation with the department of natural resources. (2) The funding of public education for kindergarten through grade 12. The description of this purpose shall be written in cooperation with the secretary of education. (3) The funding for financial assistance to service members described in IC 10-17-12-8.1(1) and IC 10-17-12-8.1(2), who are Indiana residents, and their families. The description of this purpose shall be written in cooperation with the Indiana department of veterans' affairs. (e) The department shall interpret a designation on a return under subsection (a) or (b) that is illegible or otherwise not reasonably discernible to the department as if the designation had not been made. As added by Acts 1982, P.L.66, SEC.1. Amended by P.L.288-2013, SEC.69; P.L.99-2016, SEC.1; P.L.43-2021, SEC.32; P.L.94-2026, SEC.13.

Ind. Code § 6-8.1-9-7 Class actions; requisites; time limits

Sec. 7. (a) A class action for the refund of a tax subject to this chapter may not be maintained in any court, including the Indiana tax court, on behalf of any person who has not complied with the requirements of section 1(a) of this chapter before the certification of the class. A refund of taxes to a member of a class in a class action is subject to the time limits set forth in section 1(a) of this chapter based on the time the class member filed the required claim for refund with the department. (b) A class action may not be brought against a marketplace facilitator on behalf of purchasers arising from or in any way related to an overpayment of gross retail tax or use tax collected by the marketplace facilitator, regardless of whether such action is characterized as a tax refund claim. However, nothing in this subsection affects a purchaser's right to seek a refund under this chapter. As added by P.L.91-1989, SEC.2. Amended by P.L.108-2019, SEC.134.

Ind. Code § 6-8.1-9-14 Repealed

As added by P.L.178-2002, SEC.73. Amended by P.L.28-2004, SEC.67; P.L.103-2007, SEC.3; P.L.239-2017, SEC.23. Repealed by P.L.146-2018, SEC.21.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026