(1) For tax periods beginning after March 13, 1997, no refund or credit may be allowed or paid with respect to the year for which a return is filed, unless, within three years from the last day prescribed for filing the return or after one year from the date of the overpayment (whichever period expires later), the taxpayer files a claim for refund thereof or the department has determined the existence of the overpayment and has approved refunding or crediting thereof. The three-year period is determined without regard to any extension that may have been granted.

(2) A refund claim made after the expiration of the limitation period set forth in (1) and in 15-31-509, MCA, is limited to payments received after that date.