31-15 Municipal Income Tax - Laserfiche WebLink

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legal actions to recover municipal income taxes and penalties and interest there- on shall be brought within three (3) years after the tax was due or the return was filed, whichever is later, except in the case of fraud, of omission of twenty -five percent (25 %) or more of income subject to this tax, or of failure to file a return, an additional assessment shall not be made or legal action initiated after six (6) years from the time the return was due or filed, whichever is later. However, in those cases in which a Commissioner of internal Revenue and the taxpayer have executed a waiver of the federal statute of limitations, the period within which an additional assessment may be made by the Administrator shall be one year from the time of the final determination of the federal tax liability. (Ord. 71 -10. Passed 11- 1 -10.) 128.1702 REFUNDS OF TAXES ERRONEOUSLY PAID. (a) Taxes erroneously paid shall not be refunded unless a claim for refund is made within three years from the date which such payment was made or the re- turn was due, or within three months after the final determination of the federal tax liability, whichever is later. In addition, the following shall apply regarding reftunds of tax withheld from non - qualified deferred compensation plans (NDCP): (1) A taxpayer may be eligible for a refund if the taxpayer has suffered a loss from a NDCP. The loss will be considered sustained only in the taxable year in which the taxpayer receives the final distribution of money and property pursu- ant to the NDCP. Full loss is sustained if no distribution of money and property will be made by the NDCP. (2) A taxpayer who receives income as a result of payments from a NDCP, and that income is less than the amount of income deferred to the NDCP and upon which municipal tax was withheld, then a refund will be issued on the amount representing the difference between the deferred income that was taxed and the income received from the NDCP. If different tax rates applied to the tax years in which deferrals, a weighted average of the different tax rates will be used to compute the refund amount. (3) Refunds shall be allowed only if the loss is attributable to the bankruptcy of the employer who had established the NDCP, or the employee's failure or ina- bility to satisfy all of the employer's terms and conditions necessary to receive the nonqualified compensation. (b) Income tax that has been deposited with the City of Lakewood, but should have been deposited with another municipality, is allowable by the City of Lakewood as a refund but is subject to the three -year limitation on refunds. Hncome tax that should have been deposited with the City of Lakewood, but was deposited with another mu- nicipality, shall be subject to recovery by the City of Lakewood. The City of Lakewood will allow a non - refundable credit for any amount owed the City of Lakewood that is in excess of the amount to be reftunded by the other municipal- ity, as long as the tax rate of the other municipality is the same or higher than the City of Lakewood's tax rate. If the City of Lakewood's tax rate is higher, the tax representing the net difference of the rates is also subject to collection by the City of Lakewood. (c) Overpayments of withheld tax that have resulted due to incorrect withhold- ing of an employee by an employer, and are not due as a result of excess with- holding requested by the employee, shall be refunded to the employer. It shall be the responsibility of the employer, and not the City of Lakewood, to refund such overpayment to the employee. However, nothing in this subparagraph shall affect the right of a non- resident employee to apply directly to the City of Lakewood for refinnd of in- come tax withheld for days worked out of Lakewood. (d) Payments on delinquent amounts shall be applied in the following manner: (1) To unpaid tax, then to penalty and interest assessments, on a year -by -year order beginning with the oldest year for which delinquencies are due. 16