Illinois General Assembly - Illinois Compiled Statutes

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235 ILCS 5/8-3

(235 ILCS 5/8-3) (from Ch. 43, par. 159a)

Sec. 8-3.

If it appears, after claim therefor filed with the Department,
that an amount of tax or penalty or interest has been paid which was not due
under this Article, 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 died or became 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 Article, the Department may first apply the amount thereof
against any amount of tax or penalty or interest due hereunder 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 or interest is
due under this Article 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 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 or interest is due and no proceeding is pending to
determine whether such taxpayer is indebted to the Department for tax or
penalty or interest the credit memorandum or refund shall be issued to the
claimant; or (in the case of a credit memorandum) the 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 Article, and the amount thereof shall be applied by the Department
against any tax or penalty or interest due or to become due under this
Article 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 or interest, erroneously
paid (either in total or partial liquidation of a tax or penalty or
interest under this Article) more than 3 years prior to such January 1 and
July 1, respectively, shall be credited or refunded. 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.

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

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.

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