This section explains how employee and employer tax overpayments, withholding credits, refunds, and underpayments are handled.
§115. Refunds and credits A. Employee refunds and credits. (1) Income on which any tax is required to be withheld by an employer under this Sub-part shall be included in the income tax return of the employee, but the amount of tax deducted or withheld during any calendar year shall be allowed as a credit to such employee against his income tax liability for the taxable year beginning in such calendar year. (2) To the extent that the aforesaid credit, together with other credits allowed by law, is less than the amount of the employee's income tax liability for said taxable year, the amount of such underpayment shall be paid on or before the date prescribed by law for filing individual income tax returns for said taxable year and shall be delinquent and past due after said date. (3) To the extent that the credit provided for in Paragraph (1) of this Subsection, together with other credits allowed by law, is in excess of the employee's income tax liability for the taxable year, as shown on an income tax return filed by such employee for that year, such overpayment shall be considered as taxes erroneously paid to be credited or refunded as herein provided. Such overpayment shall be credited to such person's estimated or income tax liability for the succeeding taxable year unless such person shall claim a refund therefor except that overpayment of one dollar or less shall be refunded or credited only upon the receipt by the secretary of a written demand for such refund from the taxpayer; however, the collector is authorized to consider any final return showing an overpayment as a claim for refund. (4) No refund or credit shall be allowed unless the employee provides with his final income tax return a copy of the employer's receipt for the amount of tax deducted and withheld from his wages for that taxable year as provided for in R.S. 47:112(L), except that if such employee submits satisfactory proof that his employer deducted and withheld taxes from his wages and that his employer failed or refused to furnish him with the prescribed receipt, such proof may be taken to establish a credit or refund under this Section. (5) The income tax liability of an employee shall not be affected by the failure of his employer to withhold the tax required under this Sub-part. B. Employer refunds and credits. (1) If more than the correct amount of tax, penalty or interest is paid to the collector by an employer he may file a claim for refund of such overpayment or the collector may allow him to take credit for the overpayment against the tax reported on any return which he subsequently files. However, refund or credit of the overpayment shall be made only to the extent that the amount of the overpayment exceeds the tax actually withheld and penalty and interest thereon. (2) Claims for refund or credit under this Section shall be governed by the general law relating to the refunding or crediting of overpayments by the collector. C. Other refunds and credits. To the extent a taxpayer's payments, together with other credits allowed by law, is in excess of his income tax liability shown on a return filed for the taxable year, such overpayment shall be considered as taxes erroneously paid to be credited or refunded as herein provided. Such overpayment shall be credited to the taxpayer's estimated or income tax liability for the succeeding taxable year unless a claim for refund is made. Notwithstanding any provision of this Subsection to the contrary, an overpayment of one dollar or less shall be refunded or credited only upon the receipt by the secretary of a written demand for such refund from the taxpayer. The secretary is authorized to consider any final return showing an overpayment as a claim for refund. Added by Acts 1960, No. 342, §1. Amended by Acts 1964, No. 107, §1; Acts 1976, No. 93, §1, eff. Jan. 1, 1977; Acts 1982, No. 853, §1, eff. Oct. 1, 1982; Acts 1988, 1st Ex. Sess., No. 4, §1, eff. Mar. 28, 1988; Acts 2001, No. 1032, §15; Acts 2004, No. 900, §1, eff. Jan. 1, 2005; Acts 2016, 2nd Ex. Sess., No. 10, §1, eff. July 1, 2016. NOTE: See Acts 2016, 2nd Ex.Sess., No. 10, §3, regarding applicability.