The Fair Tax Act of 2005, Part XIV
Finishing up on credits and refunds here:
`SEC. 207. REFUNDS.
`(a) Registered Sellers- If a registered seller files a monthly tax report with an overpayment, then, upon application by the registered seller in a form prescribed by the sales tax administering authority, the overpayment shown on the report shall be refunded to the registered seller within 60 days of receipt of said application. In the absence of such application, the overpayment may be carried forward, without interest, by the person entitled to the credit.
So if your registered business overpays tax (perhaps by not taking a credit) you can be refunded the money within 60 days or you can simply carry it forward towards a future tax remittance.
`(b) Other Persons- If a person other than a registered seller has an overpayment for any month, then, upon application by the person in a form prescribed by the sales tax administering authority, the credit balance due shall be refunded to the person within 60 days of receipt of said application.
The same principle for registered sellers applies here to other tax remitters, without the option of carrying the payment forward towards a future remittance. Only a refund is provided for for these folks (governments and employers of domestic servants, primarily).
`(c) Interest- No interest shall be paid on any balance due from the sales tax administering authority under this subsection for any month if such balance due is paid within 60 days after the application for refund is received. Balances due not paid within 60 days after the application for refund is received shall bear interest from the date of application. Interest shall be paid at the Federal short-term rate (as defined in section 512).
If you don’t get your refund within 60 days, you get interest on your refund.
`(d) Suspension of Period to Pay Refund Only If Federal or State Court Ruling- The 60-day periods under subsections (a) and (b) shall be suspended with respect to a purported overpayment (or portion thereof) only during any period that there is in effect a preliminary, temporary, or final ruling from a Federal or State court that there is reasonable cause to believe that such overpayment may not actually be due.
If a court has ruled in at least a preliminary fashion that a refund may not be due, the refund period is suspended until the matter is resolved (i.e. no interest accruing).
That’s pretyy much it for chapter 2. The next chapter is about the Family Consumption Allowance or ‘prebate.’ More to follow!
