Does Nebraska allow interest on refunds resulting from original individual income tax returns?
For many years, the Department allowed interest on refunds resulting from all original returns when the return was not processed within 90 days after the due date, extended due date, or within 90 days of filing, whichever expires later. However, in 2010 the Nebraska Legislature enacted the following provision: If the Tax Commissioner approves and implements an electronic form or method for filing the return and the return is not filed electronically, no interest shall be allowed under this section on overpayment (Neb. Rev. Stat. ยง 77-2794(3)(b)). The effective date of the above provision is January 1, 2011. The Tax Commissioner has approved and implemented electronic filing methods for original individual income tax returns. Therefore, after December 31, 2010, refunds resulting from paper-filed original returns will not be allowed interest regardless of when the return is processed. Electronically-filed (e-filed) original returns will be allowed interest if the return is not processed
