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Public Act 098-0970
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| SB3334 Enrolled | LRB098 19711 HLH 54922 b |
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Income Tax Act is amended by |
changing Section 911 as follows:
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(35 ILCS 5/911) (from Ch. 120, par. 9-911)
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Sec. 911. Limitations on Claims for Refund.
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(a) In general. Except
as otherwise provided in this Act:
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(1) A claim for refund shall be filed not later than 3 |
years after
the date the return was filed (in the case of |
returns required under
Article 7 of this Act respecting any |
amounts withheld as tax, not later
than 3 years after the |
15th day of the 4th month following the close of
the |
calendar year in which such withholding was made), or one |
year after
the date the tax was paid, whichever is the |
later; and
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(2) No credit or refund shall be allowed or made with |
respect to the
year for which the claim was filed unless |
such claim is filed within
such period.
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(b) Federal changes.
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(1) In general. In any case where
notification of an |
alteration is required by Section 506(b), a claim
for |
refund may be filed within 2 years after the date on which |
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such
notification was due (regardless of whether such |
notice was given), but
the amount recoverable pursuant to a |
claim filed under this Section
shall be limited to the |
amount of any overpayment resulting under this
Act from |
recomputation of the taxpayer's net income, net loss, or |
Article 2
credits for the taxable
year after giving effect |
to the item or items reflected in the
alteration required |
to be reported.
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(2) Tentative carryback adjustments paid before |
January 1, 1974.
If, as the result of the payment before |
January 1, 1974 of a federal
tentative carryback |
adjustment, a notification of an alteration is
required |
under Section 506(b), a claim for refund may be filed at |
any
time before January 1, 1976, but the amount recoverable |
pursuant to a
claim filed under this Section shall be |
limited to the amount of any
overpayment resulting under |
this Act from recomputation of the
taxpayer's base income |
for the taxable year after giving effect to the
federal |
alteration resulting from the tentative carryback |
adjustment
irrespective of any limitation imposed in |
paragraph (l) of this
subsection.
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(c) Extension by agreement. Where, before the expiration of |
the
time prescribed in this section for the filing of a claim |
for refund,
both the Department and the claimant shall have |
consented in writing to
its filing after such time, such claim |
may be filed at any time prior to
the expiration of the period |
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agreed upon. The period so agreed upon may
be extended by |
subsequent agreements in writing made before the
expiration of |
the period previously agreed upon.
In the case of a taxpayer |
who is a partnership, Subchapter S corporation, or
trust and |
who enters into an agreement with the Department pursuant to |
this
subsection on or after January 1, 2003, a claim for refund |
may be filed by the
partners, shareholders, or beneficiaries of |
the taxpayer at any time prior to
the expiration of the period |
agreed upon. Any refund
allowed pursuant to the claim, however, |
shall be limited to the amount of any
overpayment
of tax due |
under this Act that results from recomputation of items of |
income,
deduction, credits, or other amounts of the taxpayer |
that are taken into
account by the partner, shareholder, or |
beneficiary in computing its liability
under this Act.
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(d) Limit on amount of credit or refund.
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(1) Limit where claim filed within 3-year period. If |
the claim was
filed by the claimant during the 3-year |
period prescribed in subsection
(a), the amount of the |
credit or refund shall not exceed the portion of
the tax |
paid within the period, immediately preceding the filing of |
the
claim, equal to 3 years plus the period of any |
extension of time for
filing the return.
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(2) Limit where claim not filed within 3-year period. |
If the claim
was not filed within such 3-year period, the |
amount of the credit or
refund shall not exceed the portion |
of the tax paid during the one year
immediately preceding |
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the filing of the claim.
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(e) Time return deemed filed. For purposes of this section |
a tax
return filed before the last day prescribed by law for |
the filing of
such return (including any extensions thereof) |
shall be deemed to have
been filed on such last day.
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(f) No claim for refund or credit based on the taxpayer's |
taking a credit for
estimated tax payments as provided by |
Section 601(b)(2) or for any amount
paid by a taxpayer pursuant |
to Section 602(a) or for any amount of credit for
tax withheld |
pursuant to Article 7 may be filed unless a return was filed |
for the tax year not more than 3
years after the due date, as |
provided by Section 505, of the return which
was required to be |
filed relative to the taxable year for which the
payments were |
made or for which the tax was withheld. The changes in
this |
subsection (f) made by this
amendatory Act of 1987 shall apply |
to all taxable years ending on or after
December 31, 1969.
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(g) Special Period of Limitation with Respect to Net Loss |
Carrybacks.
If the claim for refund relates to an overpayment |
attributable to a net
loss carryback as provided by Section |
207, in lieu of the 3 year period of
limitation prescribed in |
subsection (a), the period shall be that period
which ends 3 |
years after the time prescribed by law for filing the return
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(including extensions thereof) for the taxable year of the net |
loss which
results in such carryback (or, on and after August |
13, 1999, with respect to a change in the
carryover of
an |
Article 2 credit to a taxable year resulting from the carryback |
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of a Section
207 loss incurred in a taxable year beginning on |
or after January 1, 2000, the
period shall be that period
that |
ends 3 years after the time prescribed by law for filing the |
return
(including extensions of that time) for that subsequent |
taxable year),
or the period prescribed in subsection (c) in
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respect of such taxable year, whichever expires later. In the |
case of such
a claim, the amount of the refund may exceed the |
portion of the tax paid
within the period provided in |
subsection (d) to the extent of the amount of
the overpayment |
attributable to such carryback.
On and after August 13, 1999, |
if the claim for refund relates to an overpayment attributable |
to
the
carryover
of an Article 2 credit, or of a Section 207 |
loss, earned, incurred (in a
taxable year beginning on or after |
January 1, 2000), or used in
a
year for which a notification of |
a change affecting federal taxable income must
be filed under |
subsection (b) of Section 506, the claim may be filed within |
the
period
prescribed in paragraph (1) of subsection (b) in |
respect of the year for which
the
notification is required. In |
the case of such a claim, the amount of the
refund may exceed |
the portion of the tax paid within the period provided in
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subsection (d) to the extent of the amount of the overpayment |
attributable to
the recomputation of the taxpayer's Article 2 |
credits, or Section 207 loss,
earned, incurred, or used in the |
taxable year for which the notification is
given.
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(h) Claim for refund based on net loss. On and after August |
23, 2002, no claim for refund shall
be allowed to the extent |
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the refund is the result of an amount of net loss
incurred in |
any taxable year ending prior to December 31, 2002
under |
Section 207 of this Act that was not reported to the Department
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within 3 years of the due date (including extensions) of the |
return for the
loss year on either the original return filed by |
the taxpayer or on amended
return or to the extent that the |
refund is the result of an amount of net loss incurred in any |
taxable year under Section 207 for which no return was filed |
within 3 years of the due date (including extensions) of the |
return for the loss year.
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(i) Periods of limitation suspended while taxpayer is |
unable to manage financial affairs due to disability. In the |
case of an individual, the running of the periods specified in |
this Section shall be suspended during any period when that |
individual is financially disabled. |
For purposes of this subsection (i), an individual is |
financially disabled if that individual is unable to manage his |
or her financial affairs by reason of a medically determinable |
physical or mental impairment of the individual that can be |
expected to result in death, or which has lasted or can be |
expected to last for a continuous period of not less than 12 |
months. |
An individual shall not be treated as financially disabled |
during any period when that individual's spouse or any other |
person is authorized to act on behalf of that individual with |
respect to financial matters. |