What is the Statute of Limitations in Texas for Filing for a Sales Tax Refund?

Full Question:

Can I fight a sales tax lein that was put on me ten years ago. I know that the orginal amount is not correct.Is there any way I could have all the interest dropped if i have proof that it is incorrect.
05/03/2010   |   Category: Taxes   |   State: Texas   |   #21991

Answer:

Please see the following TX statutes to determine applicability:

§ 111.202 TAX. Suit Limitation

At any time within three years after a deficiency or jeopardy
determination has become due and payable or within three years after the
last recording of a lien, the comptroller may bring an action in the
courts of this state, or any other state, or of the United States in the
name of the people of the State of Texas to collect the amount delinquent
together with penalties and interest.

§ 111.2051 TAX. Assessment When Refund Claimed

(a) Notwithstanding the expiration of any period of limitation provided
under this title, the comptroller may assess a tax imposed by this
title if a taxpayer files a timely claim for refund with the comptroller.

(b) An assessment authorized by this section is limited to the
tax payment period and type of tax for which the refund is sought
and must be made before the later of:

(1) four years after the date the refund claim is filed with
the comptroller; or

(2) the expiration of the applicable limitation period for making
assessments as otherwise provided by this title.

(c) This section extends only the time in which the comptroller may
assess the tax and does not extend or toll a period of limitation under
this title for filing a timely claim for refund.

§ 111.2051 TAX. Assessment When Refund Claimed

(a) Notwithstanding the expiration of any period of limitation provided
under this title, the comptroller may assess a tax imposed by this
title if a taxpayer files a timely claim for refund with the comptroller.

(b) An assessment authorized by this section is limited to the
tax payment period and type of tax for which the refund is sought
and must be made before the later of:

(1) four years after the date the refund claim is filed with
the comptroller; or

(2) the expiration of the applicable limitation period for making
assessments as otherwise provided by this title.

(c) This section extends only the time in which the comptroller may
assess the tax and does not extend or toll a period of limitation under
this title for filing a timely claim for refund.

§ 112.051 TAX. Protest Payment Required

(a) If a person who is required to pay a tax or fee imposed by this
title or collected by the comptroller under any law, including a local
tax collected by the comptroller, contends that the tax or fee is
unlawful or that the public official charged with the duty of collecting
the tax or fee may not legally demand or collect the tax or fee, the
person shall pay the amount claimed by the state, and if the person
intends to bring suit under this subchapter, the person must submit with
the payment a protest.

(b) The protest must be in writing and must state fully and in
detail each reason for recovering the payment.

(c) The protest payment must be made within the period of time set out
in Subdivision (3) of Subsection (c) of Section 111.104 of this code for
the filing of refund claims.

§ 111.104 TAX. Refunds

(a) If the comptroller finds that an amount of tax, penalty, or
interest has been unlawfully or erroneously collected, the comptroller
shall credit the amount against any other amount when due and payable by
the taxpayer from whom the amount was collected. The remainder of the
amount, if any, may be refunded to the taxpayer from money appropriated
for tax refund purposes.

(b) A tax refund claim may be filed with the comptroller only by the
person who directly paid the tax to this state or by the person's
attorney, assignee, or other successor.

(c) A claim for a refund must:

(1) be written;

(2) state fully and in detail each reason or ground on which the claim
is founded; and

(3) be filed before the expiration of the applicable limitation period
as provided by this code or before the expiration of six months after a
jeopardy or deficiency determination becomes final, whichever period
expires later.

(d) A refund claim for an amount of tax that has been found due in a
jeopardy or deficiency determination is limited to the amount of tax,
penalty, and interest and to the tax payment period for which the
determination was issued. The failure to file a timely tax refund claim
is a waiver of any demand against the state for an alleged overpayment.

(e) This section applies to all taxes and license fees collected or
administered by the comptroller, except the state property tax.

(f) No taxes, penalties, or interest may be refunded to a person who
has collected the taxes from another person unless the person has
refunded all the taxes and interest to the person from whom the taxes
were collected.

§ 111.105 TAX. Tax Refund: Hearing

(a) A person claiming a refund under Section 111.104 is entitled to a
hearing on the claim if the person requests a hearing on or before the
30th day after the date the comptroller issues a letter denying the claim
for refund. The person is entitled to 20 days' notice of the time and
place of the hearing.

(b) A decision of the comptroller following a hearing on a claim for a
refund becomes final 20 days after service on the claimant of the notice
of the order or decision.

(c) A tax refund claimant who is dissatisfied with the decision on the
claim is entitled to file a motion for rehearing.

(d) A motion for rehearing on a tax refund claim must be written and
assert each specific ground of error. The amount of the refund sought
must be set out in the motion for rehearing.

(e) During the administrative hearing process, a person claiming a
refund under Section 111.104 must submit documentation to enable the
comptroller to verify the claim for refund. The comptroller may issue a
notice of demand that all evidence to support the claim for refund must
be produced before the expiration of a specified date in the notice. The
specified date in the notice may not be earlier than 180 days after the
date the refund is claimed. The comptroller may not consider evidence
produced after the specified date in the notice in an administrative
hearing. The limitation provided by this subsection does not apply to a
judicial proceeding filed in accordance with Chapter 112.

§ 112.151 TAX. Suit for Refund

(a) A person may sue the comptroller to recover an amount of tax,
penalty, or interest that has been the subject of a tax refund claim if
the person has:

(1) filed a tax refund claim under Section 111.104 of this code;

(2) filed, as provided by Section 111.105 of this code, a motion for
rehearing that has been denied by the comptroller; and

(3) paid any additional tax found due in a jeopardy or deficiency
determination that applies to the tax liability period covered in the tax
refund claim.

(b) The suit must be brought against both the comptroller and the
attorney general and must be filed in a district court.

(c) The suit must be filed before the expiration of 30 days after the
issue date of the denial of the motion for rehearing or it is barred.

(d) The amount of the refund sought must be set out in the original
petition. A copy of the motion for rehearing filed under Section 111.105
of this code must be attached to the original petition filed with the
court and to the copies of the original petition served on the
comptroller and the attorney general.

(e) A person may not intervene in the suit.