Set off or return the amounts of overpaid taxes, levies...

9.4.2. Set off or return the amounts of overpaid taxes, levies, penalties, fines

The amount of overpaid tax is subject to offset for future taxpayer payments for this or any other tax, repayment of arrears for other taxes, arrears of fines and penalties for tax offenses, or refund to the taxpayer.

Offsetting the amounts of overpaid federal taxes and fees, regional and local taxes is made for the appropriate types of taxes and fees, as well as for penalties accrued on relevant taxes and fees.

The offset or refund of the amount of overpaid tax is made by the tax authority at the taxpayer's place of registration, unless otherwise provided by the US Tax Code, without accrual of interest on this amount, unless otherwise established by the US Tax Code.

The tax authority is obliged to notify the taxpayer of every fact of excessive tax payment that has become known to the tax authority and the amount of overpaid tax within 10 days from the date of discovery of such a fact. In case of revealing of the facts testifying to possible excessive payment of the tax, at the suggestion of the tax authority or the taxpayer, joint reconciliation of calculations of taxes, levies, fines and penalties can be carried out.

The amount of overpaid tax for future payments of the taxpayer for this or any other taxes is made on the basis of a written taxpayer application by the decision of the tax authority. The decision on offsetting the amount of overpaid tax for the taxpayer's upcoming payments is made by the tax authority within 10 days from the date of receipt of the taxpayer's application or from the date of signing by the tax authority and this taxpayer of an act of joint verification of the taxes paid by him, if such a joint verification was conducted.

The amount of excessively paid tax on the payment of arrears for other taxes, arrears of fines and (or) penalties, payable or recoverable in cases provided for by the US Tax Code, is made independently by the tax authorities. In this case, the decision on offsetting the amount of overpaid tax is taken by the tax authority within 10 days from the date of the discovery of the fact of excessive payment of the tax or from the date of signing by the tax body and the taxpayer of the act of joint verification of the taxes paid by him, if such a joint verification was conducted, by virtue of a court decision. This provision does not prevent the taxpayer from submitting to the tax authority a written application for offsetting the amount of the excessively paid tax on the payment of arrears (arrears on penalties, fines). In this case, the decision of the tax authority to offset the amount of overpaid tax on the payment of arrears and arrears of fines and penalties shall be taken within 10 days from the date of receipt of this taxpayer application or from the date of signing by the tax authority and this taxpayer an act of joint reconciliation of taxes paid by him, if such a joint verification was conducted.

The amount of overpaid tax is subject to refund on a written application of the taxpayer within 1 month from the date of receipt by the tax authority of such an application. Refund to the taxpayer of the amount of excessively paid tax in the presence of his arrears for other taxes of the appropriate type or indebtedness for the relevant penalties, as well as fines subject to recovery in cases provided for by the US Tax Code, is made only after offsetting the amount of overpaid tax to pay off arrears (debts) .

The application for the offset or the return of the amount of overpaid tax can be filed within 3 years from the date of payment of this amount, unless otherwise provided by the US Tax Code.

The decision to return the amount of overpaid tax is taken by the tax authority within 10 days from the date of receipt of the taxpayer's application for the return of the amount of the overpaid tax or from the date of signing by the tax authority and this taxpayer of the act of joint verification of the taxes paid by him, if such a joint verification was conducted. Prior to the expiration of the prescribed period, an order for the return of the amount of excessively paid tax, issued on the basis of a decision of the tax authority on the return of this amount of tax, is to be sent by the tax authority to the territorial office of the Federal Treasury to effect a refund to the taxpayer in accordance with US budget law.

The tax authority is obliged to inform the taxpayer in writing about the decision to offset (return) the amounts of overpaid tax or the decision to refuse to carry out an offset (return) within 5 days from the date of the relevant decision. The said message is transmitted to the head of the organization, to an individual, to their representatives personally against receipt or otherwise, confirming the fact and date of receipt.

The amounts of excessively paid corporate income tax on consolidated group taxpayers are subject to offset (return) to the responsible participant of this group. In the event of termination of the agreement on the creation of a consolidated group, the amount of excessively paid corporate profit tax on the consolidated group that are not offset (unaccounted) for the arrears available for this group shall be offset (returned) by the organization that was the responsible participant of the consolidated group, but its application . The amount of excessively paid income tax on the consolidated group is not refunded to the responsible participant of the consolidated group if there is a tax arrear for other taxes of the appropriate type or indebtedness for the corresponding penalties, as well as for penalties subject to recovery in cases provided for by the US Tax Code.

In the event that the refund of the amount of excessively paid tax is carried out in violation of the established period (within 1 month from the date of receipt by the tax authority of the taxpayer's application), the tax authority for the amount of overpaid tax that is not returned within the established time period shall accrue interest payment to the taxpayer, for each calendar day of violation of the repayment period. The interest rate is assumed equal to the refinancing rate of the Central Bank of the United States, which was in force on the days of the violation of the repayment period.

The territorial body of the Federal Treasury, which has refunded the amount of overpaid tax, notifies the tax authority of the date of return and the amount of money returned to the taxpayer.

In the event that the provided interest is not paid in full to the taxpayer, the tax authority takes a decision on the return of the remaining amount of interest calculated on the basis of the date of the actual return to the taxpayer of the amounts of the overpaid tax, within 3 days from the date of receipt of the notification of the territorial body of the Federal Treasury on the date of return and the amount of money returned to the taxpayer. Prior to the expiration of this period, the order for the return of the remaining amount of interest, drawn up on the basis of the decision of the tax authority on the return of this amount, is to be sent by the tax authority to the territorial office of the Federal Treasury for a refund.

The offset or refund of the amount of overpaid tax and the payment of accrued interest are made in US currency.

These rules also apply to the offset or return of amounts of overpaid advance payments, fees, penalties and fines, and are distributed to tax agents, payers of fees and the responsible participant of the consolidated group of taxpayers, and in respect of the return or offset of overpaid state fees taking into account the features established in Ch. 25.3 State Duty NC USA.

The amount of excessively collected tax is subject to refund to the taxpayer in the following order.

Refund to the taxpayer of the amount of excessively collected tax in the presence of his arrears for other taxes of the appropriate kind or debt for the corresponding penalties, as well as fines subject to recovery in cases provided for by the US Tax Code, is made only after offset of this amount to pay off this arrears debt) in accordance with Art. 78 of the US Tax Code.

The decision to return the amount of excessively collected tax is taken by the tax authority within 10 days from the date of receipt of a written application of the taxpayer on the return of the amount of the excessively collected tax. Prior to the expiration of this period, the order for the return of the amount of excessively collected tax, drawn up on the basis of the decision of the tax authority on the return of this amount of tax, is to be sent by the tax authority to the territorial office of the Federal Treasury to effect a refund to the taxpayer in accordance with US budget law.

The application for the return of the amount of excessively collected tax can be submitted by the taxpayer to the tax authority within 1 month from the day when the taxpayer became aware of the fact of excessive collection of the tax from it, or from the date of the entry into force of the court decision. A statement of claim in court can be filed within 3 years from the day the person learned or should have learned about the fact of excessive collection of the tax. If the fact of excessive collection of the tax is established, the tax authority takes a decision on the return of the amount of the excessively collected tax, as well as the interest accrued in the established procedure for this amount.

The tax authority, having established the fact of excessive collection of the tax, is obliged to notify the taxpayer about it within 10 days from the date of establishment of this fact. The said message is transmitted to the head of the organization, to an individual, to their representatives personally against receipt or otherwise, confirming the fact and date of receipt.

The amount of excessively collected tax is subject to return with interest accrued on it within 1 month from the date of receipt of a written application of the taxpayer for the return of the amount of excessively collected tax. Interest on the amount of excessively collected tax is accrued from the day following the day of collection, to the day of actual return. The interest rate is assumed equal to the refinancing rate of the Central Bank of the United States that was in force at these days.

The territorial body of the Federal Treasury that repaid the amount of the excessively collected tax and the interest accrued for this amount notifies the tax authority of the date of return and the amount of money returned to the taxpayer.

In the event that the provided interest is not paid in full to the taxpayer, the tax authority takes a decision to return the remaining amount of interest calculated on the basis of the date that the taxpayer returns the amounts of the excessively collected tax, within 3 days from the date of receipt of the notification from the territorial office of the Federal Treasury on the date of return and the amount of money returned to the taxpayer. Prior to the expiration of this period, the order for the return of the remaining amount of interest, drawn up on the basis of the decision of the tax authority on the return of this amount, is to be sent by the tax authority to the territorial office of the Federal Treasury for a refund.

The refund of the amount of excessively collected tax and the payment of accrued interest are made in US currency.

These rules also apply to the offset or refund of amounts of overpaid advance payments, fees, penalties, fines and apply to tax agents, payers of fees and the responsible participant of the consolidated group of taxpayers, and also apply to the return or offset of excessively collected amounts of state duties subject to the specifics established in Ch. 25.3 State Duty NC USA.

The amount of corporate income tax on the consolidated group of taxpayers, excessively recovered from participants in this group, is subject to offset (return) to the responsible participant of the consolidated group of taxpayers.

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