News and Insights

Texas House Bill 2425 Limits Refund Claims

Tax Development May 30, 2003

The Texas House of Representatives concurred with Senate changes to HB 2425 yesterday. This means the bill becomes law as soon as the Governor signs it, which could be as early as Tuesday, June 3rd. There are numerous changes to the current Tax Code which will negatively affect taxpayers.

One of the most critical changes is to the statute of limitations for filing refund claims. The amended language provides the period to file a refund claim is only held open for "issues that were contested." This will significantly affect periods where a taxpayer is relying on a pending redetermination or administrative hearing to hold the statute open. It will also affect periods under waiver, where a comprehensive claim is not filed before the waiver expires.

Unless all additional refund grounds are plead and filed before the Governor signs the bill, refund claims filed after that date relying upon a redetermination or hearing to toll statute will likely be limited to the standard 4 year statute of limitations.

If you have any questions regarding this information, please call Mr. G. Brint Ryan, Managing Principal of Ryan & Company at 972.934.0022. You can also reach Mr. Ryan by e-mail.