(35 ILCS 130/9d) (from Ch. 120, par. 453.9d)
Sec. 9d.
If it appears, after claim therefor filed with the Department,
that an amount of tax or penalty has been paid which was not due under this
Act, whether as the result of a mistake of fact or an error of law, except as
hereinafter provided, then the Department shall issue a credit memorandum
or refund to the person who made the erroneous payment or, if that person
has died or become a person under legal disability, to his or her legal
representative, as such.
If it is determined that the Department should issue a credit or refund
under this Act, the Department may first apply the amount thereof against
any amount of tax or penalty due under this Act or under the Cigarette Use
Tax Act from the person entitled to such credit or refund. For this
purpose, if proceedings are pending to determine whether or not any tax or
penalty is due under this Act or under the Cigarette Use Tax Act from such
person, the Department may withhold issuance of the credit or refund
pending the final disposition of such proceedings and may apply such credit
or refund against any amount found to be due to the Department under this
Act or under the Cigarette Use Tax Act as a result of such proceedings. The
balance, if any, of the credit or refund shall be issued to the person
entitled thereto.
If no tax or penalty is due and no proceeding is pending to determine
whether such taxpayer is indebted to the Department for tax or penalty, the
credit memorandum or refund shall be issued to the claimant; or (in the
case of a credit memorandum) the credit memorandum may be assigned and set
over by the lawful holder thereof, subject to reasonable rules of the
Department, to any other person who is subject to this Act or the Cigarette
Use Tax Act, and the amount thereof shall be applied by the Department
against any tax or penalty due or to become due under this Act or under the
Cigarette Use Tax Act from such assignee.
As to any claim filed hereunder with the Department on and after each
January 1 and July 1, no amount of tax or penalty erroneously paid (either
in total or partial liquidation of a tax or penalty under this Act) more
than 3 years prior to such January 1 and July 1, respectively, shall be
credited or refunded, except that if both the Department and the taxpayer
have agreed to an extension of time to issue a notice of tax liability under
this Act, the claim may be filed at any time prior to the expiration of the
period agreed upon. Notwithstanding any other provision of this Act to the contrary, for any period included in a claim for credit or refund for which the statute of limitations for issuing a notice of tax liability under this Act will expire less than 6 months after the date a taxpayer files the claim for credit or refund, the statute of limitations is automatically extended for 6 months from the date it would have otherwise expired.
If the Department approves a claim for stamps affixed to a product returned
to a manufacturer or for replacement of stamps, the credit memorandum shall not
exceed the face value of stamps originally affixed, and replacement stamps
shall be issued only in an amount equal to the value of the stamps previously
affixed. Higher denomination stamps shall not be issued as replacements for
lower value stamps. Distributors must prove the face value of the stamps which
have been destroyed or returned to manufacturers when filing claims.
Any credit or refund that is allowed under this Act shall bear interest
at the rate and in the manner set forth in the Uniform Penalty and Interest
Act.
In case the Department determines that the claimant is entitled to a
refund, such refund shall be made only from such appropriation as may be
available for that purpose. If it appears unlikely that the amount
appropriated would permit everyone having a claim allowed during the period
covered by such appropriation to elect to receive a cash refund, the
Department, by rule or regulation, shall provide for the payment of refunds
in hardship cases and shall define what types of cases qualify as hardship
cases.
If the Department approves a claim for the physical replacement of
cigarette tax stamps, the Department (subject to the same limitations as
those provided for hereinbefore in this Section) may issue an assignable
credit memorandum or refund to the claimant or to the claimant's legal
representative.
The provisions of Sections 6a, 6b and 6c of the Retailers' Occupation
Tax Act which are not inconsistent with this Act, shall apply, as far as
practicable, to the subject matter of this Act to the same extent as if
such provisions were included herein.
(Source: P.A. 102-40, eff. 6-25-21.)
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