PURPOSE: This rule contains information as to how and when to file a claim, approval of a claim and whether a credit or refund is applicable, and interprets and applies section 144.695, RSMo.

1. (1) Where a taxpayer claims an overpayment as a result of a clerical error or mistake, s/he must file a written claim in a manner prescribed by the director of revenue within two
2. (2) years of the overpayment. No claim will be considered unless filed within that time (see 12 CSR 10-4.255).
3. (2) Before any claim for refund is approved, it must be shown, where applicable, that the vendor has returned to the purchaser the amount claimed which was previously paid by the purchaser at the time of purchase and for which the application for refund is being made.
4. (3) In cases where a claim for credit is approved, the director of revenue will issue a credit memorandum in the amount of the overpayment. This credit may then be applied by the person in satisfaction of subsequent tax liability. Note: In no case should the taxpayer take credit for any overpayment unless prior approval has been obtained from the director of revenue.
5. (4) Where there is no subsequent tax liability, as where a person has paid a tax and it is later discovered that there was no liability and the person is no longer in business, this person should make a claim for refund as provided for in this rule. The refund, if allowed, will be paid out of the appropriation made by the general assembly for that purpose.

AUTHORITY: section 144.705, RSMo 1994.* U.T. regulation 695-5 originally filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976. *Original authority: 144.705, RSMo 1959.