AGO 85-1.

Case Date:January 22, 1985
Colorado Attorney General Opinions 1985. AGO 85-1. January 22, 1985Department of Law Attorney General Opinion FORMAL OPINION of DUANE WOODARD Attorney General Opinion No. 85-1 AG Alpha No. RV AD AGANV Alan N. Charnes Executive Director Department of Revenue 1375 Sherman Street, Rm. 486 Denver, Colorado 80261 RE: Interest on refunds claimed on an amended tax returnDear Mr. Charnes: This opinion letter is in response to your October 19, 1984 letter, in which you inquired about how the Department of Revenue (department) is to determine the period during which interest is payable on tax refunds. QUESTION PRESENTED AND CONCLUSION Your request for an attorney general's opinion presents the question: If a taxpayer files an amended tax return claiming a refund for overpayment of taxes, is the department required to pay interest on the refund amount even if the refund is paid within 90 days after the due date of the original tax return? My conclusion is yes. Interest must be paid unless the department refunds the tax overpayment within 90 days after the original return was due, without regard to when the amended return was filed. ANALYSIS Two separate statutory provisions direct the department to pay interest on refunds of tax overpayments if the refund is not paid by specified deadlines. Section 39-21-110, C.R.S. (1982) is a general provision pertaining to refunds of any income, gross ton-mile, passenger-mile, gasoline, special fuel, sales, use, or severance tax or any charge on oil and gas production. A more specific provision dealing with refunds of personal income tax is found at section 39-22-622, C.R.S. (1982). The general provision in section 39-21-110 requires the department to pay interest from the date of overpayment of the specified taxes but provides in subsection (3) for an exception if the refund is made: /W/ithin ninety days after the last date prescribed for filing the return of such tax or charge, determined without regard to any extension of time for filing the return.... (Emphasis added.) This statutory language expressly makes the 90 day grace period run from the date the tax return was due, not from the filing date of any later amended return. It is my understanding that for many years the department has had a policy that in the event an original tax return is amended to claim a refund, the department...

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