Section R15-10-706. Application of Payments and Credits

A.      Payments received pursuant to a tax recovery application shall be applied to the tax periods on the application. Partial pay- ment for a tax period will be applied to the tax liability starting with the oldest tax period and progressing chronologically until all the payments have been applied, but will not entitle the taxpayer to the benefits under the Tax Recovery Program. The taxpayer will remain subject to the full penalty and inter- est.

B.       Tax periods for which the taxpayer is entitled to a refund or credit may be included on a tax recovery application. The credit shall be applied to other tax periods included in the application in the order described in subsection (A).

For purposes of determining the total tax due from a taxpayer applying for tax recovery, credits from overpayment of other tax periods shall be applied as if a payment had been received on the fifteenth day of April of the year following the calendar year of the tax period of the overpayment. For example, a tax- payer has an overpayment of income tax for calendar year 2004 and an under payment of income tax for calendar year 2005. The credit from the overpayment in 2004 will be applied to the 2005 liability as if it were a payment made on April 15, 2005.

D. No refund shall be given to a taxpayer for payments made or credits applied prior to September 1, 2015 for any tax periods included in a tax recovery application. If a credit for overpay- ment in one or more of the tax periods contained in a tax recovery application exceeds the total tax liabilities for all other tax periods contained in the application, the amount due shall be reduced to zero but no refund shall be paid.

Historical Note

New Section made by emergency rulemaking at 17

A.A.R. 1864, effective August 31, 2011 for 180 days (Supp. 11-3). Emergency expired February 27, 2012. New Section made by emergency rulemaking at 21

A.A.R. 1830, effective August 19, 2015 for 180 days (Supp. 15-3).