18:26-3A.12 Refunds

TRANSFER INHERITANCE AND ESTATE TAX  
SUBCHAPTER 3A. ESTATE TAX--DECEDENTS DYING AFTER DECEMBER 31, 2001
N.J.A.C. 18:26-3A.12 (2014)
§ 18:26-3A.12 Refunds
  (a) All applications for the refund of estate taxes claimed to have been excessively or erroneously paid must be filed with the Director within three years from the date of payment. In the event it is determined that the tax was erroneously or excessively paid, the Director, upon receipt of satisfactory proof of payment, shall certify the same to the Director, Division of Budget and Accounting, who, in turn shall draw his or her warrant on the State Treasurer in favor of the executor, administrator, trustee, person or corporation who has paid said tax, or who may be lawfully entitled to receive the same, for the amount of such tax excessively paid.

(b) Said warrant shall be paid by the State Treasurer out of any appropriation for the refund of transfer inheritance taxes the same as warrants for the refund of such taxes under the transfer inheritance tax statutes of this State are paid.

(c) Interest will be paid on overpayments of tax at a rate determined by the Director to be equal to the prime rate, determined for each month or fraction thereof, compounded annually at the end of each year, from the date that such interest commences to accrue to the date of refund. Interest shall commence to accrue on the later of the date of the filing by the taxpayer of a claim for refund, the date of the payment of the tax, or the due date of the return; but no interest will be paid on an overpayment of less than $ 1.00, nor upon any overpayment refunded within six months after the last date prescribed, or permitted by extension of time, for filing the return or within six months after the return is filed, whichever is later.

(d) The date of payment is defined as the date the payment is actually received by the Division. It is not the date on which the tax return is filed, the date the Notice of Assessment is issued or the date on which the audit is completed and/or the file closed.

(e) Protective refund claims based on reasonably anticipated events may be filed within the time periods set forth in (a) above.

1. The refund claim must be made on the inheritance and estate tax "Protective Claim for Refund" form. The form must be fully completed and set forth the estimated refund amount and the basis for the claim.

2. The Director must be notified of the actual refund claimed within 90 days after occurrence of the anticipated event.

3. For the purpose of determining the interest, if any, payable on a protective refund claim, the refund claim shall be deemed to have been made on the date that the Director is notified of the occurrence of the anticipated event.