Case Law Summaries

Godwin Pumps of America v. Director, Division of Taxation

• Opinion Date: January 22, 2001
• Business Law
• E-Mail

TAXATION; REFUNDS—A claim for a corporate tax refund must be made within four years after the tax had been paid, even if the tax was paid before the due date for the related tax return.

A corporation filed its 1993 corporate business tax (CBT) return on June 30, 1994, fifteen days before the extension due date. On July 13, 1998, the corporation filed amended CBT returns which sought refunds for tax years 1993 through 1996. The Division of Taxation approved refunds for the years 1994 through 1996, but denied any refund for the 1993 return because the refund claim was not filed within the four year statute of limitations in N.J.S. 54:49-14a. The issue before the Tax Court was whether the four year statute runs from the date of payment of the tax or from the date on which the tax is due. The tax court recognized that “if filing and payment are made before the due date of a corporate business tax, the four year statute of limitations begins to run on the payment date, N.J.A.C. 18:7-13.8.” It went on, “more specifically, the regulation states that ‘the due date of the return is deemed the payment date if filing and payment are made prior to the due date.’” Here, the corporation filed its amended 1993 CBT return four years and thirteen days after it paid the CBT in question. On this basis, the court concluded that “in light of the plain language of N.J.S. 54:49-14a and N.J.A.C. 18:7-13.8, the taxpayer’s complaint is untimely and dismissed.”

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