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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 909 as follows:
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| 6 | (35 ILCS 5/909) (from Ch. 120, par. 9-909)
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| 7 | Sec. 909. Credits and Refunds.
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| 8 | (a) In general. In the case of any overpayment, the | ||||||
| 9 | Department, within the applicable period of limitations for a | ||||||
| 10 | claim for refund, may
credit the amount of such overpayment, | ||||||
| 11 | including any interest allowed
thereon, against any liability | ||||||
| 12 | in respect of the tax imposed by this Act,
regardless of | ||||||
| 13 | whether other collection remedies are closed to the
Department | ||||||
| 14 | on the part of the person who made the overpayment and shall
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| 15 | refund any balance to such person or credit any balance to that | ||||||
| 16 | person pursuant to an election under subsection (b) of this | ||||||
| 17 | Section.
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| 18 | (b) Credits against estimated tax. The Department shall may
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| 19 | prescribe regulations providing for a taxpayer election on an | ||||||
| 20 | original return, an amended return, or otherwise for the | ||||||
| 21 | crediting against the estimated tax
for any taxable year of the | ||||||
| 22 | amount determined by the taxpayer or the
Department to be an | ||||||
| 23 | overpayment of the tax imposed by this Act for a
preceding | ||||||
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| 1 | taxable year.
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| 2 | (c) Interest on overpayment. Interest shall be allowed and | ||||||
| 3 | paid at the
rate and in the manner prescribed in Section 3-2 of | ||||||
| 4 | the Uniform Penalty and
Interest Act upon any overpayment in | ||||||
| 5 | respect of the tax imposed by this
Act. For purposes of this | ||||||
| 6 | subsection, no amount of tax, for any taxable
year, shall be | ||||||
| 7 | treated as having been paid before the date on which the tax
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| 8 | return for such year was due under Section 505, without regard | ||||||
| 9 | to any
extension of the time for filing such return.
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| 10 | (d) Refund claim. Every claim for refund shall be filed | ||||||
| 11 | with the
Department in writing in such form as the Department | ||||||
| 12 | may by regulations
prescribe, and shall state the specific | ||||||
| 13 | grounds upon which it is founded.
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| 14 | (e) Notice of denial. As soon as practicable after a claim | ||||||
| 15 | for refund
is filed, the Department shall examine it and either | ||||||
| 16 | issue a notice of
refund, abatement or credit to the claimant | ||||||
| 17 | or issue a notice of denial.
If the Department has failed to | ||||||
| 18 | approve or deny the claim before the
expiration of 6 months | ||||||
| 19 | from the date the claim was filed, the claimant may
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| 20 | nevertheless thereafter file with the Department a written | ||||||
| 21 | protest in such
form as the Department may by regulation | ||||||
| 22 | prescribe, provided that, on or after July 1, 2013, protests | ||||||
| 23 | concerning matters that are subject to the jurisdiction of the | ||||||
| 24 | Illinois Independent Tax Tribunal shall be filed with the | ||||||
| 25 | Illinois Independent Tax Tribunal and not with the Department. | ||||||
| 26 | If the protest is subject to the jurisdiction of the | ||||||
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| 1 | Department,
the Department shall consider the claim and, if the | ||||||
| 2 | taxpayer has so
requested, shall grant the taxpayer or the | ||||||
| 3 | taxpayer's authorized
representative a hearing within 6 months | ||||||
| 4 | after the date such request is filed.
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| 5 | On and after July 1, 2013, if the protest would otherwise | ||||||
| 6 | be subject to the jurisdiction of the Illinois Independent Tax | ||||||
| 7 | Tribunal, the claimant may elect to treat the Department's | ||||||
| 8 | non-action as a denial of the claim by filing a petition to | ||||||
| 9 | review the Department's administrative decision with the | ||||||
| 10 | Illinois Independent Tax Tribunal, as provided by Section 910. | ||||||
| 11 | (f) Effect of denial. A denial of a claim for refund | ||||||
| 12 | becomes final 60
days after the date of issuance of the notice | ||||||
| 13 | of such denial except for
such amounts denied as to which the | ||||||
| 14 | claimant has filed a protest with the
Department or a petition | ||||||
| 15 | with the Illinois Independent Tax Tribunal, as provided by | ||||||
| 16 | Section 910.
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| 17 | (g) An overpayment of tax shown on the face of an unsigned | ||||||
| 18 | return
shall be considered forfeited to the State if after | ||||||
| 19 | notice and demand for
signature by the Department the taxpayer | ||||||
| 20 | fails to provide a signature and 3
years have passed from the | ||||||
| 21 | date the return was filed.
An overpayment of tax refunded to a | ||||||
| 22 | taxpayer whose return was filed
electronically shall be | ||||||
| 23 | considered an erroneous refund under Section 912 of
this Act | ||||||
| 24 | if, after proper notice and demand by the
Department, the | ||||||
| 25 | taxpayer fails to provide a required signature document.
A | ||||||
| 26 | notice and demand for signature in the case of a return | ||||||
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| 1 | reflecting an
overpayment may be made by first class mail. This | ||||||
| 2 | subsection (g) shall apply
to all returns filed pursuant to | ||||||
| 3 | this Act since 1969.
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| 4 | (h) This amendatory Act of 1983 applies to returns and | ||||||
| 5 | claims for
refunds filed with the Department on and after July | ||||||
| 6 | 1, 1983.
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| 7 | (Source: P.A. 97-507, eff. 8-23-11; 97-1129, eff. 8-28-12; | ||||||
| 8 | 98-463, eff. 8-16-13.)
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