AI-assisted research summary: Tax overpayments may be credited against unpaid installments or refunded; employers may get a refund or credit only for amounts they did not deduct and withhold.
(a) If the taxpayer has paid as an installment of the tax more than the amount determined to be the correct amount of such installment, the overpayment shall be credited against the unpaid installments, if any. If the amount already paid, whether or not on the basis of installments, exceeds the amount determined to be the correct amount of the tax, the amount of the credit shall be refunded in the manner provided in section 231-23(c). Within the meaning of this subsection, each amount of tax deducted and withheld from a taxpayer's wages is an installment of taxes paid by the taxpayer. A refund or credit shall be made to an employer only to the extent that the amount of overpayment claimed by the employer as a credit or refund was not deducted and withheld by the employer. (b) This section does not apply in the case of a payment made pursuant to an assessment by the department of taxation under section 235-107 or 235-108(b). No refund or overpayment credit may be had under this section in any event unless the original payment of the tax was due to the law having been interpreted or applied in respect of the taxpayer concerned differently than in respect of the taxpayers generally. As to all tax payments for which a refund or credit is not authorized by this section (including without prejudice to the generality of the foregoing cases of unconstitutionality) the remedies provided by appeal or under section 40-35 are exclusive. However, nothing in this subsection shall be deemed applicable to a credit or refund authorized by sections 235-55, 235-66, or 235-71, or resulting from the tax as returned being less than the tax as estimated; in any of these cases a credit or refund is authorized even though the tax for the taxable year remains subject to determination by the department and assessment as provided by law. (c) Any refund earned under this section shall be made in the manner provided in section 231-23(c). [L Sp 1957, c 1, pt of §2; am L 1959, c 277, §13; am L Sp 1959 2d, c 1, §16; am L 1963, c 45, §4(b), (c), (d); Supp, §121-44; HRS ] Revision Note In subsections (a) and (c), "231-23(c)" substituted for "231-23(d)". Attorney General Opinions Levy on unclaimed warrants by Internal Revenue Service for delinquent federal taxes should be honored. Att. Gen. Op. 62-4.