Full Text of HB2557 098th General Assembly
HB2557 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB2557 Introduced 2/21/2013, by Rep. John E. Bradley SYNOPSIS AS INTRODUCED: |
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35 ILCS 5/909 | from Ch. 120, par. 9-909 |
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Amends the Illinois Income Tax Act. Provides that no refund shall be paid to any corporation, trust, or estate except by direct deposit or electronic funds transfer. Provides that no interest shall be paid on any overpayment for any period during which the Department is not able to refund the overpayment because the taxpayer has not provided the Department with the information necessary to make direct deposit or electronic funds transfer to the taxpayer.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by | 5 | | changing Section 909 as follows:
| 6 | | (35 ILCS 5/909) (from Ch. 120, par. 9-909)
| 7 | | Sec. 909. Credits and Refunds.
| 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
| 15 | | refund any balance to such person.
| 16 | | (b) Credits against estimated tax. The Department may
| 17 | | prescribe regulations providing for the crediting against the | 18 | | estimated tax
for any taxable year of the amount determined by | 19 | | the taxpayer or the
Department to be an overpayment of the tax | 20 | | imposed by this Act for a
preceding taxable year.
| 21 | | (c) Interest on overpayment. Interest shall be allowed and | 22 | | paid at the
rate and in the manner prescribed in Section 3-2 of | 23 | | the Uniform Penalty and
Interest Act upon any overpayment in |
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| 1 | | respect of the tax imposed by this
Act. For purposes of this | 2 | | subsection, no amount of tax, for any taxable
year, shall be | 3 | | treated as having been paid before the date on which the tax
| 4 | | return for such year was due under Section 505, without regard | 5 | | to any
extension of the time for filing such return.
| 6 | | (d) Refund claim. Every claim for refund shall be filed | 7 | | with the
Department in writing in such form as the Department | 8 | | may by regulations
prescribe, and shall state the specific | 9 | | grounds upon which it is founded.
| 10 | | (e) Notice of denial. As soon as practicable after a claim | 11 | | for refund
is filed, the Department shall examine it and either | 12 | | issue a notice of
refund, abatement or credit to the claimant | 13 | | or issue a notice of denial.
If the Department has failed to | 14 | | approve or deny the claim before the
expiration of 6 months | 15 | | from the date the claim was filed, the claimant may
| 16 | | nevertheless thereafter file with the Department a written | 17 | | protest in such
form as the Department may by regulation | 18 | | prescribe, provided that, on or after July 1, 2013, protests | 19 | | concerning matters that are subject to the jurisdiction of the | 20 | | Illinois Independent Tax Tribunal shall be filed with the | 21 | | Illinois Independent Tax Tribunal and not with the Department. | 22 | | If the protest is subject to the jurisdiction of the | 23 | | Department,
the Department shall consider the claim and, if the | 24 | | taxpayer has so
requested, shall grant the taxpayer or the | 25 | | taxpayer's authorized
representative a hearing within 6 months | 26 | | after the date such request is filed.
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| 1 | | On and after July 1, 2013, if the protest would otherwise | 2 | | be subject to the jurisdiction of the Illinois Independent Tax | 3 | | Tribunal, the claimant may elect to treat the Department's | 4 | | non-action as a denial of the claim by filing a petition to | 5 | | review the Department's administrative decision with the | 6 | | Illinois Independent Tax Tribunal, as provided by Section 910. | 7 | | (f) Effect of denial. A denial of a claim for refund | 8 | | becomes final 60
days after the date of issuance of the notice | 9 | | of such denial except for
such amounts denied as to which the | 10 | | claimant has filed a protest with the
Department or a petition | 11 | | with the Illinois Independent Tax Tribunal, as provided by | 12 | | Section 910.
| 13 | | (g) An overpayment of tax shown on the face of an unsigned | 14 | | return
shall be considered forfeited to the State if after | 15 | | notice and demand for
signature by the Department the taxpayer | 16 | | fails to provide a signature and 3
years have passed from the | 17 | | date the return was filed.
An overpayment of tax refunded to a | 18 | | taxpayer whose return was filed
electronically shall be | 19 | | considered an erroneous refund under Section 912 of
this Act | 20 | | if, after proper notice and demand by the
Department, the | 21 | | taxpayer fails to provide a required signature document.
A | 22 | | notice and demand for signature in the case of a return | 23 | | reflecting an
overpayment may be made by first class mail. This | 24 | | subsection (g) shall apply
to all returns filed pursuant to | 25 | | this Act since 1969.
| 26 | | (h) This amendatory Act of 1983 applies to returns and |
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| 1 | | claims for
refunds filed with the Department on and after July | 2 | | 1, 1983.
| 3 | | (i) On and after January 1, 2014, no refund shall be paid | 4 | | to any taxpayer except by direct deposit or electronic funds | 5 | | transfer. Notwithstanding subsection (c) of this Section or any | 6 | | other provision of law, no interest shall be paid on any | 7 | | overpayment for any period during which the Department is not | 8 | | able to refund the overpayment under this subsection (i) | 9 | | because the taxpayer has not provided the Department with the | 10 | | information necessary to make direct deposit or electronic | 11 | | funds transfer to the taxpayer. This subsection (i) shall not | 12 | | apply to refunds due to individual taxpayers, and the | 13 | | Department may waive the requirements of this subsection (i) in | 14 | | the case of undue hardship to a taxpayer. | 15 | | (Source: P.A. 97-507, eff. 8-23-11; 97-1129, eff. 8-28-12; | 16 | | revised 10-10-12.)
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