Citibank Takes $30 Million Tax Fight To State Supreme Court
Case goes back to a 2012 claim from Citibank
Citibank’s efforts to reclaim $30 million in overpaid taxes to the state have reached the South Dakota Supreme Court.
Justices heard oral arguments in the appeal Wednesday at the Capitol.
The case goes back to a 2012 claim from Citibank for a $30 million refund for state bank franchise taxes paid between 1999 and 2002. The IRS reduced Citibank’s taxable income for that period, which lowered the state tax payment. The state rejected the claim, and it received favorable administrative and circuit court decisions.
The state argues Citibank didn’t request a refund until after the legal window passed. Citibank says it complied with state regulations.
The financial group also argues the state accepted a $4.3 million corrective payment for underpaid taxes from Citibank even though the legal window had closed.