PURPOSE: This rule interprets the use tax law as it applies to the procedure for recovering an overpayment of tax and interprets and applies section 144.695, RSMo.

1. (1) Where an overpayment occurs by reason of anything other than a clerical error or mistake on the part of the director of revenue, a taxpayer must file a written claim for credit or refund. For any overpayment occurring after December 31, 1979 on account of a sale made after December 31, 1979, the claim may be filed at any time within two (2) years after the date of overpayment to the Department of Revenue. No claim will be considered unless within that time.
2. (2) Every claim for credit or refund must be in writing, under oath, and must state the specific grounds upon which the claim is founded. Amended returns are required to be filed for all periods involved in the overpayment.
3. (3) Before any refund is issued, the seller must show that s/he has returned or made arrangements for the return of any amounts paid by the purchasers of the taxes represented by the refund application.
4. (4) Any refund or credit which is erroneously made by the Department of Revenue or which is erroneously taken by the taxpayer may be recovered by the director of revenue against the person.
5. (5) In cases where a claim for credit is approved, the director of revenue will issue a credit memorandum in the amount of the overpayment. The credit may then be applied by the person in satisfaction of subsequent tax liability. A copy of the approved credit must be attached to the return to which it is being applied. Note: In no case should the taxpayer take credit for any overpayment unless prior approval has been obtained from the director of revenue. 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, that person should so notify the director and return the credit memorandum for refund. 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.* Original rule filed Sept. 7, 1984, effective Jan. 12, 1985. *Original authority: 144.705, RSMo 1959.