Full Text of SB3334 98th General Assembly
SB3334enr 98TH GENERAL ASSEMBLY |
| | SB3334 Enrolled | | LRB098 19711 HLH 54922 b |
|
| 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 911 as follows:
| 6 | | (35 ILCS 5/911) (from Ch. 120, par. 9-911)
| 7 | | Sec. 911. Limitations on Claims for Refund.
| 8 | | (a) In general. Except
as otherwise provided in this Act:
| 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
| 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.
| 20 | | (b) Federal changes.
| 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 |
| | | SB3334 Enrolled | - 2 - | LRB098 19711 HLH 54922 b |
|
| 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.
| 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.
| 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 |
| | | SB3334 Enrolled | - 3 - | LRB098 19711 HLH 54922 b |
|
| 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.
| 15 | | (d) Limit on amount of credit or refund.
| 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.
| 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 |
| | | SB3334 Enrolled | - 4 - | LRB098 19711 HLH 54922 b |
|
| 1 | | the filing of the claim.
| 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.
| 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.
| 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
| 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 |
| | | SB3334 Enrolled | - 5 - | LRB098 19711 HLH 54922 b |
|
| 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
| 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
| 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.
| 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 |
| | | SB3334 Enrolled | - 6 - | LRB098 19711 HLH 54922 b |
|
| 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
| 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.
| 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. |
| | | SB3334 Enrolled | - 7 - | LRB098 19711 HLH 54922 b |
|
| 1 | | (Source: P.A. 97-507, eff. 8-23-11.)
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.
|
|