The claim for refund will not prosper as it is barred by the irrevocability rule. Paragraph 2, Section 76 of the NIRC embodies the irrevocability…

The question

The claim for refund will not prosper as it is barred by the irrevocability rule. Paragraph 2, Section 76 of the NIRC embodies the irrevocability rule. This rule provides that a corporation which is entitled to a tax credit or refund of the excess estimated quarterly income taxes paid has two options: (1) to carry-over the excess credit; or (2) to apply for the issuance of a tax credit certificate or to claim a cash refund. If the corporation opts to carry-over its excess credit in the final adjustment return, its choice shall be irrevocable for that taxable period. The purpose of this rule is to prevent a taxpayer from claiming excess tax credits twice. In the given problem, ABC Corp. opted to carry-over its excess tax credits for the 2010 taxable year. Consequently, ABC Corp. can no longer revoke its choice to carry-over the excess tax credits and instead claim for a refund. As a general rule, within what period must a taxpayer elevate to the Court of Tax Appeals a denial of his application for refund of income tax overpayment? (2011 Bar Question)

1. A.Within 30 days from receipt of the Commissioner’s denial of his application for refund.
2. B.Within 30 days from receipt of the denial which must not exceed 2 years from payment of income tax.
3. C.Within 2 years from payment of the income taxes sought to be refunded.
4. D.Within 30 days from receipt of the denial or within two years from payment.

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