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91_SB0338eng
SB338 Engrossed LRB9102972JSpr
1 AN ACT concerning refunds of insurance premium taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Finance Act is amended by adding
5 Section 5.490 as follows:
6 (30 ILCS 105/5.490 new)
7 Sec. 5.490. The Insurance Premium Tax Refund Fund.
8 Section 10. The Illinois Insurance Code is amended by
9 changing Section 412 as follows:
10 (215 ILCS 5/412) (from Ch. 73, par. 1024)
11 Sec. 412. Refunds; penalties; collection.
12 (1) Whenever it appears to the satisfaction of the
13 Director that because of some mistake of fact, error in
14 calculation, or erroneous interpretation of a statute of this
15 or any other state, any authorized company has paid to him,
16 pursuant to any provision of law, taxes, fees, or other
17 charges, including interest, in excess of the amount legally
18 chargeable against it, during the 6 year period immediately
19 preceding the discovery of such overpayment, he shall have
20 power to refund to such company the amount of the excess or
21 excesses by applying the amount or amounts thereof toward the
22 payment of taxes, fees, or other charges already due and
23 shall refund the balance to the company, or which may
24 thereafter become due from that company until such excess or
25 excesses have been fully refunded, or, at his discretion, to
26 make a cash refund.
27 Amounts determined by the taxpayer or the Department to
28 be an overpayment of a tax may, at the taxpayer's election,
29 be credited against the estimated tax for any taxable year.
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1 For overpayments of taxes paid on or after January 1,
2 1999, interest shall be allowed and paid by the Department to
3 taxpayers at the rate prescribed under subsection (4) for
4 deficiencies in tax payments. No interest shall be paid upon
5 an overpayment of tax if the overpayment is refunded or a
6 credit is approved within 90 days after the last date
7 prescribed for filing the original return, within 90 days
8 after the receipt of the return, or within 90 days after the
9 date of overpayment, whichever date is latest. Interest on
10 amounts refunded or credited pursuant to the filing of an
11 amended return or claim for refund shall be determined from
12 the due date of the original return or the date of
13 overpayment, whichever is later, to the date of payment by
14 the Department.
15 A claim for refund shall be filed with the Department in
16 writing and shall state the specific grounds upon which it is
17 founded before the expiration of the applicable limitation
18 period specified in this subsection or before the expiration
19 of 6 months after a jeopardy or deficiency determination
20 becomes final, whichever period expires later. If the tax
21 return reflects an overpayment or credits in excess of the
22 tax, the declaration of that fact on the return constitutes a
23 claim for refund. If the Department agrees the claim is
24 valid, the amount of overpayment, penalties, and interest
25 shall be first applied to any known liability, and the
26 excess, if any, shall be refunded to the taxpayer or, at the
27 taxpayer's request, credited against any current or
28 subsequent tax liability. Refunded amounts shall be paid
29 only if and to the extent that (i) the amounts exceed $100
30 and (ii) the amounts cannot be fully offset against the
31 taxpayer's next prepayment of tax. Refunds shall be paid from
32 the Insurance Premium Tax Refund Fund, a special Fund hereby
33 created in the State treasury.
34 (2) When any insurance company or any surplus line
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1 producer fails to file any tax return required under Sections
2 408.1, 409, 444, 444.1 and 445 of this Code or Section 12 of
3 the Fire Investigation Act on the date prescribed, including
4 any extensions, there shall be added as a penalty $200 or 5%
5 of the amount of such tax, whichever is greater, for each
6 month or part of a month of failure to file, the entire
7 penalty not to exceed $1,000 or 25% of the tax due, whichever
8 is greater.
9 (3) (a) When any insurance company or any surplus line
10 producer fails to pay the full amount due under the
11 provisions of this Section, Sections 408.1, 409, 444, 444.1
12 or 445 of this Code, or Section 12 of the Fire Investigation
13 Act, there shall be added to the amount due as a penalty an
14 amount equal to 5% of the deficiency.
15 (b) If such failure to pay is determined by the Director
16 to be wilful, after a hearing under Sections 402 and 403,
17 there shall be added to the tax as a penalty an amount equal
18 to the greater of 25% of the deficiency or 5% of the amount
19 due and unpaid for each month or part of a month that the
20 deficiency remains unpaid commencing with the date that the
21 amount becomes due. Such amount shall be in lieu of any
22 determined under paragraph (a).
23 (4) Any insurance company or any surplus line producer
24 which fails to pay the full amount due under this Section or
25 Sections 408.1, 409, 444, 444.1 or 445 of this Code, or
26 Section 12 of the Fire Investigation Act is liable, in
27 addition to the tax and any penalties, for interest on such
28 deficiency at the rate of 12% per annum, or at such higher
29 adjusted rates as are or may be established under subsection
30 (b) of Section 6621 of the Internal Revenue Code, from the
31 date that payment of any such tax was due, determined without
32 regard to any extensions, to the date of payment of such
33 amount.
34 (5) The Director, through the Attorney General, may
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1 institute an action in the name of the People of the State of
2 Illinois, in any court of competent jurisdiction, for the
3 recovery of the amount of such taxes, fees, and penalties
4 due, and prosecute the same to final judgment, and take such
5 steps as are necessary to collect the same.
6 (6) In the event that the certificate of authority of a
7 foreign or alien company is revoked for any cause or the
8 company withdraws from this State prior to the renewal date
9 of the certificate of authority as provided in Section 114,
10 the company may recover the amount of any such tax paid in
11 advance. Except as provided in this subsection, no revocation
12 or withdrawal excuses payment of or constitutes grounds for
13 the recovery of any taxes or penalties imposed by this Code.
14 (7) When an insurance company or domestic affiliated
15 group fails to pay the full amount of any fee of $100 or more
16 due under Section 408 of this Code, there shall be added to
17 the amount due as a penalty the greater of $50 or an amount
18 equal to 5% of the deficiency for each month or part of a
19 month that the deficiency remains unpaid.
20 (Source: P.A. 87-108.)
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