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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||||||||||||||||||||
5 | changing Section 911 as follows:
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6 | (35 ILCS 5/911) (from Ch. 120, par. 9-911)
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7 | Sec. 911. Limitations on Claims for Refund.
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8 | (a) In general. Except
as otherwise provided in this Act:
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9 | (1) A claim for refund shall be filed not later than 3 | ||||||||||||||||||||||||
10 | years after
the date the return was filed (in the case of | ||||||||||||||||||||||||
11 | returns required under
Article 7 of this Act respecting any | ||||||||||||||||||||||||
12 | amounts withheld as tax, not later
than 3 years after the | ||||||||||||||||||||||||
13 | 15th day of the 4th month following the close of
the | ||||||||||||||||||||||||
14 | calendar year in which such withholding was made), or one | ||||||||||||||||||||||||
15 | year after
the date the tax was paid, whichever is the | ||||||||||||||||||||||||
16 | later; and
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17 | (2) No credit or refund shall be allowed or made with | ||||||||||||||||||||||||
18 | respect to the
year for which the claim was filed unless | ||||||||||||||||||||||||
19 | such claim is filed within
such period.
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20 | (b) Federal changes.
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21 | (1) In general. In any case where
notification of an | ||||||||||||||||||||||||
22 | alteration is required by Section 506(b), a claim
for | ||||||||||||||||||||||||
23 | refund may be filed within 2 years after the date on which |
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1 | such
notification was due (regardless of whether such | ||||||
2 | notice was given), but
the amount recoverable pursuant to a | ||||||
3 | claim filed under this Section
shall be limited to the | ||||||
4 | amount of any overpayment resulting under this
Act from | ||||||
5 | recomputation of the taxpayer's net income, net loss, or | ||||||
6 | Article 2
credits for the taxable
year after giving effect | ||||||
7 | to the item or items reflected in the
alteration required | ||||||
8 | to be reported.
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9 | (2) Tentative carryback adjustments paid before | ||||||
10 | January 1, 1974.
If, as the result of the payment before | ||||||
11 | January 1, 1974 of a federal
tentative carryback | ||||||
12 | adjustment, a notification of an alteration is
required | ||||||
13 | under Section 506(b), a claim for refund may be filed at | ||||||
14 | any
time before January 1, 1976, but the amount recoverable | ||||||
15 | pursuant to a
claim filed under this Section shall be | ||||||
16 | limited to the amount of any
overpayment resulting under | ||||||
17 | this Act from recomputation of the
taxpayer's base income | ||||||
18 | for the taxable year after giving effect to the
federal | ||||||
19 | alteration resulting from the tentative carryback | ||||||
20 | adjustment
irrespective of any limitation imposed in | ||||||
21 | paragraph (l) of this
subsection.
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22 | (c) Extension by agreement. Where, before the expiration of | ||||||
23 | the
time prescribed in this section for the filing of a claim | ||||||
24 | for refund,
both the Department and the claimant shall have | ||||||
25 | consented in writing to
its filing after such time, such claim | ||||||
26 | may be filed at any time prior to
the expiration of the period |
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1 | agreed upon. The period so agreed upon may
be extended by | ||||||
2 | subsequent agreements in writing made before the
expiration of | ||||||
3 | the period previously agreed upon.
In the case of a taxpayer | ||||||
4 | who is a partnership, Subchapter S corporation, or
trust and | ||||||
5 | who enters into an agreement with the Department pursuant to | ||||||
6 | this
subsection on or after January 1, 2003, a claim for refund | ||||||
7 | may be filed by the
partners, shareholders, or beneficiaries of | ||||||
8 | the taxpayer at any time prior to
the expiration of the period | ||||||
9 | agreed upon. Any refund
allowed pursuant to the claim, however, | ||||||
10 | shall be limited to the amount of any
overpayment
of tax due | ||||||
11 | under this Act that results from recomputation of items of | ||||||
12 | income,
deduction, credits, or other amounts of the taxpayer | ||||||
13 | that are taken into
account by the partner, shareholder, or | ||||||
14 | beneficiary in computing its liability
under this Act.
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15 | (d) Limit on amount of credit or refund.
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16 | (1) Limit where claim filed within 3-year period. If | ||||||
17 | the claim was
filed by the claimant during the 3-year | ||||||
18 | period prescribed in subsection
(a), the amount of the | ||||||
19 | credit or refund shall not exceed the portion of
the tax | ||||||
20 | paid within the period, immediately preceding the filing of | ||||||
21 | the
claim, equal to 3 years plus the period of any | ||||||
22 | extension of time for
filing the return.
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23 | (2) Limit where claim not filed within 3-year period. | ||||||
24 | If the claim
was not filed within such 3-year period, the | ||||||
25 | amount of the credit or
refund shall not exceed the portion | ||||||
26 | of the tax paid during the one year
immediately preceding |
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1 | the filing of the claim.
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2 | (e) Time return deemed filed. For purposes of this section | ||||||
3 | a tax
return filed before the last day prescribed by law for | ||||||
4 | the filing of
such return (including any extensions thereof) | ||||||
5 | shall be deemed to have
been filed on such last day.
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6 | (f) No claim for refund or credit based on the taxpayer's | ||||||
7 | taking a credit for
estimated tax payments as provided by | ||||||
8 | Section 601(b)(2) or for any amount
paid by a taxpayer pursuant | ||||||
9 | to Section 602(a) or for any amount of credit for
tax withheld | ||||||
10 | pursuant to Article 7 may be filed unless a return was filed | ||||||
11 | for the tax year not more than 3
years after the due date, as | ||||||
12 | provided by Section 505, of the return which
was required to be | ||||||
13 | filed relative to the taxable year for which the
payments were | ||||||
14 | made or for which the tax was withheld. The changes in
this | ||||||
15 | subsection (f) made by this
amendatory Act of 1987 shall apply | ||||||
16 | to all taxable years ending on or after
December 31, 1969.
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17 | (g) Special Period of Limitation with Respect to Net Loss | ||||||
18 | Carrybacks.
If the claim for refund relates to an overpayment | ||||||
19 | attributable to a net
loss carryback as provided by Section | ||||||
20 | 207, in lieu of the 3 year period of
limitation prescribed in | ||||||
21 | subsection (a), the period shall be that period
which ends 3 | ||||||
22 | years after the time prescribed by law for filing the return
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23 | (including extensions thereof) for the taxable year of the net | ||||||
24 | loss which
results in such carryback (or, on and after August | ||||||
25 | 13, 1999, with respect to a change in the
carryover of
an | ||||||
26 | Article 2 credit to a taxable year resulting from the carryback |
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1 | of a Section
207 loss incurred in a taxable year beginning on | ||||||
2 | or after January 1, 2000, the
period shall be that period
that | ||||||
3 | ends 3 years after the time prescribed by law for filing the | ||||||
4 | return
(including extensions of that time) for that subsequent | ||||||
5 | taxable year),
or the period prescribed in subsection (c) in
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6 | respect of such taxable year, whichever expires later. In the | ||||||
7 | case of such
a claim, the amount of the refund may exceed the | ||||||
8 | portion of the tax paid
within the period provided in | ||||||
9 | subsection (d) to the extent of the amount of
the overpayment | ||||||
10 | attributable to such carryback.
On and after August 13, 1999, | ||||||
11 | if the claim for refund relates to an overpayment attributable | ||||||
12 | to
the
carryover
of an Article 2 credit, or of a Section 207 | ||||||
13 | loss, earned, incurred (in a
taxable year beginning on or after | ||||||
14 | January 1, 2000), or used in
a
year for which a notification of | ||||||
15 | a change affecting federal taxable income must
be filed under | ||||||
16 | subsection (b) of Section 506, the claim may be filed within | ||||||
17 | the
period
prescribed in paragraph (1) of subsection (b) in | ||||||
18 | respect of the year for which
the
notification is required. In | ||||||
19 | the case of such a claim, the amount of the
refund may exceed | ||||||
20 | the portion of the tax paid within the period provided in
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21 | subsection (d) to the extent of the amount of the overpayment | ||||||
22 | attributable to
the recomputation of the taxpayer's Article 2 | ||||||
23 | credits, or Section 207 loss,
earned, incurred, or used in the | ||||||
24 | taxable year for which the notification is
given.
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25 | (h) Claim for refund based on net loss. On and after August | ||||||
26 | 23, 2002, no claim for refund shall
be allowed to the extent |
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1 | the refund is the result of an amount of net loss
incurred in | ||||||
2 | any taxable year ending prior to December 31, 2002
under | ||||||
3 | Section 207 of this Act that was not reported to the Department
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4 | within 3 years of the due date (including extensions) of the | ||||||
5 | return for the
loss year on either the original return filed by | ||||||
6 | the taxpayer or on amended
return or to the extent that the | ||||||
7 | refund is the result of an amount of net loss incurred in any | ||||||
8 | taxable year under Section 207 for which no return was filed | ||||||
9 | within 3 years of the due date (including extensions) of the | ||||||
10 | return for the loss year.
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11 | (i) Periods of limitation suspended while taxpayer is | ||||||
12 | unable to manage financial affairs due to disability. In the | ||||||
13 | case of an individual, the running of the periods specified in | ||||||
14 | this Section shall be suspended during any period when that | ||||||
15 | individual is financially disabled. | ||||||
16 | For purposes of this subsection (i), an individual is | ||||||
17 | financially disabled if that individual is unable to manage his | ||||||
18 | or her financial affairs by reason of a medically determinable | ||||||
19 | physical or mental impairment of the individual that can be | ||||||
20 | expected to result in death, or which has lasted or can be | ||||||
21 | expected to last for a continuous period of not less than 12 | ||||||
22 | months. | ||||||
23 | An individual shall not be treated as financially disabled | ||||||
24 | during any period when that individual's spouse or any other | ||||||
25 | person is authorized to act on behalf of that individual with | ||||||
26 | respect to financial matters. |
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1 | (Source: P.A. 97-507, eff. 8-23-11.)
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2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.
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