.08 Procedures for Requesting Early Refunds.

A. An individual or a corporation that has paid withholding tax in excess of the amount owed may file an Application for Tentative Refund of Withholding on Sales of Real Property by Nonresidents (MW506R) with the Comptroller 60 days after the date the tax was paid to the clerk or the Department, but not later than December 1 of the calendar year in which the tax was paid.

B. When the transferor of real property is a pass-through entity:

(1) A member or a shareholder of a pass-through entity may file an Application for Tentative Refund of Withholding on Sales of Real Property by Nonresidents if the applicant provides sufficient documentation of their status as a member of the pass-through entity and:

(a) The member or shareholder is the sole member or shareholder of the transferor pass-through entity; or

(b) The members or shareholders is one of two members or shareholders and the two members or shareholders are a married couple.

(2) A pass-through entity or partner of a pass-through entity may not file an Application for Tentative Refund of Withholding on Sales of Real Property by Nonresidents.

C. An individual or a corporation shall attach to the Application for Tentative Refund of Withholding on Sales of Real Property by Nonresidents:

(1) Copy C of the Return of Income Tax Withholding for Nonresident Sale of Real Property;

(2) A copy of the HUD 1 Settlement Statement; and

(3) Any other document as required by the Comptroller.

D. The Comptroller may issue a tentative refund of withholding for any of the reasons found in Regulation .04C of this chapter.

E. The Comptroller's decision to deny or grant in part an Application for Tentative Refund of Withholding on Sales of Real Property by Nonresidents is final and not subject to appeal.

F. The filing of the Application for Tentative Refund of Withholding on Sales of Real Property by Nonresidents does not relieve an individual or a corporation of the requirement to file a State income tax return.