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The 193rd General Court of the Commonwealth of Massachusetts

Section 40: Refund of overpaid taxes; interest

Section 40. (a) If any refund of any tax, interest or penalties is made pursuant to sections thirty, thirty-one A, thirty-six, thirty-six A, thirty-seven or thirty-nine of this chapter, or sections twenty-seven or twenty-seven A of chapter sixty-five, or section six of chapter sixty-five A, the state treasurer shall repay to the taxpayer the amount of such refund with interest thereon at the rate of the federal short-term rate determined under section 6621(b) of the Internal Revenue Code, as amended and in effect for the taxable year, plus 2 percentage points, computed as simple interest, except as hereinafter provided, from the date of overpayment to a date, to be determined by the commissioner, preceding the date of the refund check by not more than thirty days, whether or not such refund check is accepted by the taxpayer after tender of such to the taxpayer. The acceptance of such check shall be without prejudice to any right of the taxpayer to claim any additional overpayment and interest thereon.

For purposes of this section, the term ''date of overpayment'' shall mean the later of the date when the commissioner shall have received a properly completed return and full payment of the tax due thereon, or the date when the commissioner shall have received a completed and substantiated written application for abatement filed in accordance with this chapter, and any supplemental information requested by the department from the taxpayer in support of such application.

(b) If an overpayment of tax is refunded within 90 days after the last day prescribed for filing the return of such tax, determined without regard to any extension of time for filing the return, or, in case the return is filed after such last date, is refunded within 90 days after the date the return is filed, no interest shall be allowed hereunder on such overpayment. If any overpayment of tax is not refunded within 90 days after a return is filed where such return is filed after the last day prescribed for filing such return, determined without regard to any extension of time for filing such return, interest shall be allowed hereunder on such overpayment only from the date the return is filed. Where 2 or more corporations elect to file returns on a combined net income basis under section 32B of chapter 63, the return of each such corporation filed under section 11 shall not be considered filed for purposes of this section until all members of the combined group have filed their returns.

No interest shall be paid on a refund made pursuant to Article VIII of the Compact on Taxation of Motor Fuels Consumed By Interstate Buses, as appearing in section one of chapter four hundred and sixty-five of the acts of nineteen hundred and sixty-three. No interest shall be paid on a refund of the tax imposed by chapter sixty-four D, or on a refund under sections seven or seven A of chapter sixty-four A, or section five of chapter sixty-four E, or section four of chapter sixty-four F, or section seven A of chapter sixty-four G. For purposes of this section, a return shall not be treated as filed until such return is filed on an approved form and contains: (i) the taxpayers name, address, and identifying number and the required signature, and (ii) sufficient required information to permit the mathematical verification of the tax liability shown on the return as compared with the tax liability shown as a result of any corrections made to the return by the commissioner under subsection (c) of section 26 using any records regarding that liability or the payment thereof which are maintained by the commissioner or which are furnished to the commissioner by any third-party.