§1623. Prescription of refunds or credits

            A. After three years from the 31st day of December of the year in which the tax became due or after one year from the date the tax was paid, whichever is the later, no refund or credit for an overpayment shall be made unless a claim for credit or refund has been filed with the secretary by the taxpayer claiming such credit or refund before the expiration of said three-year or one-year period. The maximum amount which shall be refunded or credited shall be the amount paid within said three-year or one-year period. The secretary shall prescribe the manner of filing claims for refund or credit.

            B. Provided that in any case where a taxpayer and the secretary have consented in writing to an extension of the period during which an assessment of tax may be made, the period of prescription for refunding or crediting overpayments as provided in this Section shall be extended in accordance with the terms of the agreement between the taxpayer and the secretary.

            C. No refund shall be allowed for any claim for this deduction on any return filed on or after July 1, 2015, regardless of the taxable year to which the return relates.

            D. Provided that in any case where a refund of taxes imposed by R.S. 47:295 relates to an overpayment attributable to a net operating loss deduction carry-back election, in lieu of the three-year period of limitation prescribed in Subsection A of this Section, the period shall be the period which ends three years from the thirty-first day of December of the year in which the tax for the loss year would become due, or the period prescribed in Subsection B or E of this Section with respect to such taxable year, whichever expires later. The provisions of this Subsection would be effective for net operating loss deduction carry-back elections made for taxable periods ending on or after December 31, 1987.

            E. Provided that where a refund or credit relates to an overpayment of income tax, the running of prescription shall be suspended by means of:

            (1) A written agreement entered into between a taxpayer and the United States Internal Revenue Service suspending the prescription of federal income tax; or

            (2) For any period from the time of the commencement of an audit of a taxpayer by the United States Internal Revenue Service until one year from the time the secretary of the Department of Revenue is notified by said taxpayer or the federal government of an agreed change to the taxpayer's United States income tax return.

            F.(1) Provided that in any case in which the secretary pursues any remedy for the collection of tax pursuant to R.S. 47:1561, including the issuance of an assessment, the period of prescription for a refund or credit for the same types of tax and tax periods shall be suspended. However, the suspension of prescription authorized in this Subsection applies only in any of the following circumstances:

            (a) When an assessment has been issued and the taxpayer has submitted a refund claim that is received by the collector prior to the assessment becoming final.

            (b) When a summary proceeding has been filed and the taxpayer has timely appealed such claim for refund as an offset or credit in the summary proceeding.

            (c) When an ordinary suit has been filed and the taxpayer has filed a timely reconventional demand for such refund or credit in such suit.

            (2) If the refund claim would have been prescribed, but for this Subsection, the amount of the claim found due shall be credited or offset against the underpaid tax found due.

            (3) Prescription shall not be suspended pursuant to the provisions of Paragraph (1) of this Subsection in any of the following circumstances:

            (a) An assessment has become final and non-appealable.

            (b) A judgment of the Board of Tax Appeals concerning the collection remedy referenced in Paragraph (1) of this Subsection has become final.

            (c) A final judgment has been rendered by a district court in a related summary or ordinary proceeding.

            G. Notwithstanding any provision of law to the contrary, prescription shall not be considered to have accrued until two years from the date of receipt of the Department of Defense notice issued to the taxpayer pursuant to the provisions of the federal law for any period in which the taxpayer received a refund from the Internal Revenue Service concerning an adjustment to income pursuant to the provisions of the Combat-Injured Veterans Tax Fairness Act of 2016. This prescriptive period is limited to the corresponding Louisiana income tax refund. A taxpayer may claim this Louisiana refund by amending the Louisiana individual income tax return for the same period in which a federal income tax refund was granted pursuant to the Combat-Injured Veterans Tax Fairness Act of 2016. Alternatively, a taxpayer may claim a Louisiana standard refund amount proportional to that of the federal standard refund amount in accordance with rules promulgated by the secretary in accordance with the Administrative Procedure Act.

            Acts 1985, No. 505, §1, eff. Aug. 1, 1985; Acts 1989, No. 362, §1; Acts 1991, No. 245, §1, eff. July 2, 1991; Acts 1992, No. 1035, §1, eff. for taxable periods beginning on or after Jan. 1, 1992; Acts 1996, No. 40, §1, eff. for taxable periods beginning on or after Jan. 1, 1997; Acts 1997, No. 658, §2; Acts 2002, No. 51, §1, eff. Jan. 1, 2003; Acts 2015, No. 103, §1, eff. July 1, 2015; Acts 2015, No. 210, §1, eff. June 23, 2015; Acts 2019, No. 367, §1, eff. June 18, 2019.

NOTE: FOR (E) SEE ACTS 1991, NO. 245, §2.

NOTE: See S.C.R. No. 32 of the 1996 1st Ex. Sess. re legislative intent.

            NOTE: See Acts 2015, No. 103, §2, re: applicability.