SB 444

Generally under current law, an individual may file a claim for an income tax

refund within four years of the unextended date on which the tax return was due.

Under this bill, the four-year limitation period for claiming a refund does not apply

to a period of financial disability, which is a medically determinable physical or

mental impairment that prevents an individual from managing his or her financial

affairs. Federal law currently contains a similar provision for a period of financial

disability.

Under the bill, if an individual who is affected by a period of financial disability

files with his or her refund claim the required statement from his or her physician,

and a personal statement specifying that no other individual, such as a spouse,

guardian, or agent, was able to act on the individual's behalf in financial matters, the

Department of Revenue must pay the refund to which the individual would

otherwise be entitled. The affected individual must, however, file his or her claim

and statements within four years of the end of the period of financial disability. If

another individual such as a spouse, guardian, or agent is able to act in financial

matters on behalf of the affected individual for a period of less than four years, the

affected individual may still claim a period of financial disability.