WILLIAM DONALD SCHAEFER, Governor Ch. 175

(II) THE AMOUNT OF THE REDUCTION IN TAX

RESULTING FROM:

1. A FEDERAL INCOME TAX ADJUSTMENT; OR

2. A NET OPERATING LOSS ALLOWED TO BE
CARRIED BACK ON THE FEDERAL RETURN, NOT INCLUDING ANY INTEREST OR
PENALTIES PREVIOUSLY ASSESSED OR PAID.

(C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
SUBSECTION, A CLAIM FOR REFUND OR CREDIT OF OVERPAYMENT OF
FINANCIAL INSTITUTION FRANCHISE TAX OR INCOME TAX MAY NOT BE
FILED AFTER THE PERIODS OF LIMITATIONS FOR FILING CLAIMS FOR
REFUND OR CREDIT OF OVERPAYMENT SET FORTH IN § 6511 OF THE
INTERNAL REVENUE CODE.

(2)  A CLAIM FOR REFUND OR CREDIT OF. OVERPAYMENT MAY
NOT BE FILED LATER THAN 1 YEAR FROM THE DATE OF:

(I)  A FINAL ADJUSTMENT REPORT OF THE INTERNAL
REVENUE SERVICE; OR

(II)  A FINAL DECISION OF THE HIGHEST COURT OF
THE UNITED STATES TO WHICH AN APPEAL OF A FINAL DECISION OF THE
INTERNAL REVENUE SERVICE IS TAKEN.

(3)  EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS
SUBSECTION, A REFUND OR CREDIT OF OVERPAYMENT ALLOWED UPON A
CLAIM FILED UNDER THIS SUBSECTION SHALL BE LIMITED TO THE AMOUNTS

MAY EXCEED THE AMOUNT OF THE MARYLAND TAX RESULTING FROM THE

APPLICATION OF THE LIMITS SET FORTH IN § 6511 OF THE INTERNAL
REVENUE CODE.

(4)  A REFUND OR CREDIT OF OVERPAYMENT ALLOWED UPON A
CLAIM FILED UNDER PARAGRAPH (2) OF THIS SUBSECTION SHALL BE
LIMITED TO THE AMOUNT OF THE REDUCTION IN MARYLAND TAX RESULTING
FROM THE FEDERAL INCOME TAX ADJUSTMENT.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989 June 1, 1989 and shall be applicable to
any claim for refund or credit of overpayment filled on or after
June 1, 1989.

Approved May 5, 1989.

- 1989 -