§ 68-2373. Payment of refunds - Extension of time.

If, upon any revision or adjustment, including overpayment or illegal payment on account of income derived from tax-exempt Indian land, any refund is found to be due any taxpayer, it shall be paid out of the "Income Tax Withholding Refund Account", created by Section 2385.16 of this title, in the same manner as refunds are paid pursuant to such section.  The information filed, reflecting the revision or adjustment, shall constitute the claim for refund.

Except as provided in subsection H of Section 2375 of this title, the amount of the refund shall not exceed the portion of the tax paid during the three (3) years immediately preceding the filing of the claim, or, if no claim was filed, then during the three (3) years immediately preceding the allowance of the refund.  However, this three-year limitation shall not apply to the amount of refunds payable upon claims filed by members of federally recognized Indian tribes or the United States on behalf of its Indian wards or former Indian wards, to recover taxes illegally collected from tax-exempt lands.  In the case of any refund to a member of a federally recognized Indian tribe or to the United States on behalf of its Indian wards or former Indian wards, to recover taxes illegally collected on bonus payments from oil and gas leases located on tax-exempt Indian lands pursuant to this section, the Tax Commission shall pay interest on all refunds issued after January 1, 1996, at the rate of six percent (6%) per annum from the date of payment by the taxpayer to the date of the refund.

In cases where the Tax Commission and the taxpayer have signed a consent, as provided by law, extending the period during which the tax may be assessed, the period during which the taxpayer may file a claim for refund or during which an allowance for a refund may be made shall be automatically extended to the final date fixed by such consent plus thirty (30) days.

The Oklahoma Tax Commission may authorize the use of direct deposit in lieu of refund checks for electronically filed income tax returns.

Added by Laws 1971, c. 137, § 23, emerg. eff. May 11, 1971.  Amended by Laws 1971, p. 1043, H.J.R. No. 1026, § 2A24, emerg. eff. June 22, 1971; Laws 1979, c. 47, § 73, emerg. eff. April 9, 1979; Laws 1979, c. 264, § 10, emerg. eff. June 5, 1979; Laws 1985, c. 15, § 2, emerg. eff. April 11, 1985; Laws 1991, c. 342, § 22, emerg. eff. June 15, 1991; Laws 1993, c. 146, § 25; Laws 1996, c. 289, § 9, eff. July 1, 1996; Laws 1997, c. 294, § 23, eff. July 1, 1997.