Illinois General Assembly - Illinois Compiled Statutes

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35 ILCS 135/14a

(35 ILCS 135/14a) (from Ch. 120, par. 453.44a)

Sec. 14a.

If it appears, after claim therefor filed with the Department, that an
amount of tax or penalty has been paid which was not due under this Act,
whether as the result of a mistake of fact or an error of law, except as
hereinafter provided, then the Department shall issue a credit memorandum
or refund to the person who made the erroneous payment or, if that person
has died or become a person under legal disability,
to his or her legal representative, as such.

If it is determined that the Department should issue a credit or refund
under this Act, the Department may first apply the amount thereof against
any amount of tax or penalty due under this Act or under the Cigarette Tax
Act from the person entitled to such credit or refund. For this purpose, if
proceedings are pending to determine whether or not any tax or penalty is
due under this Act or under the Cigarette Tax Act from such person, the
Department may withhold issuance of the credit or refund pending the final
disposition of such proceedings and may apply such credit or refund against
any amount found to be due to the Department under this Act or under the
Cigarette Tax Act as a result of such proceedings. The balance, if any, of
the credit or refund shall be issued to the person entitled thereto.

If no tax or penalty is due and no proceeding is pending to determine
whether such taxpayer is indebted to the Department for tax or penalty, the
credit memorandum or refund shall be issued to the claimant; or (in the
case of a credit memorandum) may be assigned and set over by the lawful
holder thereof, subject to reasonable rules of the Department, to any other
person who is subject to this Act or the Cigarette Tax Act, and the amount
thereof shall be applied by the Department against any tax or penalty due
or to become due under this Act or under the Cigarette Tax Act from such
assignee.

As to any claim filed hereunder with the Department on and after each
January 1 and July 1, no amount of tax or penalty erroneously paid (either
in total or partial liquidation of a tax or penalty under this Act) more
than 3 years prior to such January 1 and July 1, respectively, shall be
credited or refunded, except that if both the Department and the taxpayer
have agreed to an
extension of time to issue a notice of tax liability under this Act, the claim
may be filed at any time prior to the expiration of the period agreed upon. Notwithstanding any other provision of this Act to the contrary, for any period included in a claim for credit or refund for which the statute of limitations for issuing a notice of tax liability under this Act will expire less than 6 months after the date a taxpayer files the claim for credit or refund, the statute of limitations is automatically extended for 6 months from the date it would have otherwise expired.

In case the Department determines that the claimant is entitled to a
refund, such refund shall be made only from such appropriation as may be
available for that purpose. If it appears unlikely that the amount
appropriated would permit everyone having a claim allowed during the period
covered by such appropriation to elect to receive a cash refund, the
Department, by rule or regulation, shall provide for the payment of refunds
in hardship cases and shall define what types of cases qualify as hardship
cases.

If the Department approves a claim for the physical replacement of
cigarette tax stamps, the Department (subject to the same limitations as
those provided for hereinbefore in this Section) may issue an assignable
credit memorandum or refund to the claimant or to the claimant's legal
representative.

Any credit or refund that is allowed under this Act shall bear interest at
the rate and in the manner set forth in the Uniform Penalty and Interest Act.

The provisions of Sections 6a, 6b and 6c of the "Retailers' Occupation
Tax Act", approved June 28, 1933, as amended, in effect on the effective
date of this amendatory Act, as subsequently amended, which are not
inconsistent with this Act, shall apply, as far as practicable, to the
subject matter of this Act to the same extent as if such provisions were
included herein.

(Source: P.A. 102-40, eff. 6-25-21.)