2023 Illinois Compiled Statutes › Chapter 35 - REVENUE › 35 ILCS 5/ - Illinois Income Tax Act. › Article 9 - Procedure And Administration

(35 ILCS 5/Art. 9 heading)
ARTICLE 9.  
		PROCEDURE AND ADMINISTRATION.
(35 ILCS 5/901)
Sec. 901. Collection authority.
(a) In general. The Department shall collect the taxes imposed by this Act.  The Department
shall collect certified past due child support amounts under Section 2505-650
of the Department of Revenue Law of the
Civil Administrative Code of Illinois.  Except as
provided in subsections (b), (c), (e), (f), (g), and (h) of this Section, money collected
pursuant to subsections (a) and (b) of Section 201 of this Act shall be
paid into the General Revenue Fund in the State treasury; money
collected pursuant to subsections (c) and (d) of Section 201 of this Act
shall be paid into the Personal Property Tax Replacement Fund, a special
fund in the State Treasury; and money collected under Section 2505-650 of the
Department of Revenue Law of the
Civil Administrative Code of Illinois shall be paid
into the
Child Support Enforcement Trust Fund, a special fund outside the State
Treasury, or
to the State
Disbursement Unit established under Section 10-26 of the Illinois Public Aid
Code, as directed by the Department of Healthcare and Family Services.
(b) Local Government Distributive Fund. Beginning August 1, 2017 and continuing through July 31, 2022, the Treasurer shall transfer each month from the General Revenue Fund to the Local Government Distributive Fund an amount equal to the sum of: (i) 6.06% (10% of the ratio of the 3% individual income tax rate prior to 2011 to the 4.95% individual income tax rate after July 1, 2017) of the net revenue realized from the tax imposed by subsections (a) and (b) of Section 201 of this Act upon individuals, trusts, and estates during the preceding month; (ii) 6.85% (10% of the ratio of the 4.8% corporate income tax rate prior to 2011 to the 7% corporate income tax rate after July 1, 2017) of the net revenue realized from the tax imposed by subsections (a) and (b) of Section 201 of this Act upon corporations during the preceding month; and (iii) beginning February 1, 2022, 6.06% of the net revenue realized from the tax imposed by subsection (p) of Section 201 of this Act upon electing pass-through entities. Beginning August 1, 2022 and continuing through July 31, 2023, the Treasurer shall transfer each month from the General Revenue Fund to the Local Government Distributive Fund an amount equal to the sum of: (i) 6.16% of the net revenue realized from the tax imposed by subsections (a) and (b) of Section 201 of this Act upon individuals, trusts, and estates during the preceding month; (ii) 6.85% of the net revenue realized from the tax imposed by subsections (a) and (b) of Section 201 of this Act upon corporations during the preceding month; and (iii) 6.16% of the net revenue realized from the tax imposed by subsection (p) of Section 201 of this Act upon electing pass-through entities. Beginning August 1, 2023, the Treasurer shall transfer each month from the General Revenue Fund to the Local Government Distributive Fund an amount equal to the sum of: (i) 6.47% of the net revenue realized from the tax imposed by subsections (a) and (b) of Section 201 of this Act upon individuals, trusts, and estates during the preceding month; (ii) 6.85% of the net revenue realized from the tax imposed by subsections (a) and (b) of Section 201 of this Act upon corporations during the preceding month; and (iii) 6.47% of the net revenue realized from the tax imposed by subsection (p) of Section 201 of this Act upon electing pass-through entities. Net revenue realized for a month shall be defined as the
revenue from the tax imposed by subsections (a) and (b) of Section 201 of this
Act which is deposited into the General Revenue Fund, the Education Assistance
Fund, the Income Tax Surcharge Local Government Distributive Fund, the Fund for the Advancement of Education, and the Commitment to Human Services Fund during the
month minus the amount paid out of the General Revenue Fund in State warrants
during that same month as refunds to taxpayers for overpayment of liability
under the tax imposed by subsections (a) and (b) of Section 201 of this Act.
Notwithstanding any provision of law to the contrary, beginning on July 6, 2017 (the effective date of Public Act 100-23), those amounts required under this subsection (b) to be transferred by the Treasurer into the Local Government Distributive Fund from the General Revenue Fund shall be directly deposited into the Local Government Distributive Fund as the revenue is realized from the tax imposed by subsections (a) and (b) of Section 201 of this Act.
(c) Deposits Into Income Tax Refund Fund.
(1) Beginning on January 1, 1989 and thereafter, the     Department shall deposit a percentage of the amounts collected pursuant to subsections (a) and (b)(1), (2), and (3) of Section 201 of this Act into a fund in the State treasury known as the Income Tax Refund Fund.  Beginning with State fiscal year 1990 and for each fiscal year thereafter, the percentage deposited into the Income Tax Refund Fund during a fiscal year shall be the Annual Percentage. For fiscal year 2011, the Annual Percentage shall be 8.75%. For fiscal year 2012, the Annual Percentage shall be 8.75%. For fiscal year 2013, the Annual Percentage shall be 9.75%. For fiscal year 2014, the Annual Percentage shall be 9.5%. For fiscal year 2015, the Annual Percentage shall be 10%. For fiscal year 2018, the Annual Percentage shall be 9.8%. For fiscal year 2019, the Annual Percentage shall be 9.7%. For fiscal year 2020, the Annual Percentage shall be 9.5%. For fiscal year 2021, the Annual Percentage shall be 9%. For fiscal year 2022, the Annual Percentage shall be 9.25%. For fiscal year 2023, the Annual Percentage shall be 9.25%. For fiscal year 2024, the Annual Percentage shall be 9.15%. For all other fiscal years, the Annual Percentage shall be calculated as a fraction, the numerator of which shall be the amount of refunds approved for payment by the Department during the preceding fiscal year as a result of overpayment of tax liability under subsections (a) and (b)(1), (2), and (3) of Section 201 of this Act plus the amount of such refunds remaining approved but unpaid at the end of the preceding fiscal year, minus the amounts transferred into the Income Tax Refund Fund from the Tobacco Settlement Recovery Fund, and the denominator of which shall be the amounts which will be collected pursuant to subsections (a) and (b)(1), (2), and (3) of Section 201 of this Act during the preceding fiscal year; except that in State fiscal year 2002, the Annual Percentage shall in no event exceed 7.6%.  The Director of Revenue shall certify the Annual Percentage to the Comptroller on the last business day of the fiscal year immediately preceding the fiscal year for which it is to be effective.
(2) Beginning on January 1, 1989 and thereafter, the     Department shall deposit a percentage of the amounts collected pursuant to subsections (a) and (b)(6), (7), and (8), (c) and (d) of Section 201 of this Act into a fund in the State treasury known as the Income Tax Refund Fund.  Beginning with State fiscal year 1990 and for each fiscal year thereafter, the percentage deposited into the Income Tax Refund Fund during a fiscal year shall be the Annual Percentage. For fiscal year 2011, the Annual Percentage shall be 17.5%. For fiscal year 2012, the Annual Percentage shall be 17.5%. For fiscal year 2013, the Annual Percentage shall be 14%. For fiscal year 2014, the Annual Percentage shall be 13.4%. For fiscal year 2015, the Annual Percentage shall be 14%. For fiscal year 2018, the Annual Percentage shall be 17.5%.  For fiscal year 2019, the Annual Percentage shall be 15.5%. For fiscal year 2020, the Annual Percentage shall be 14.25%. For fiscal year 2021, the Annual Percentage shall be 14%. For fiscal year 2022, the Annual Percentage shall be 15%. For fiscal year 2023, the Annual Percentage shall be 14.5%. For fiscal year 2024, the Annual Percentage shall be 14%. For all other fiscal years, the Annual Percentage shall be calculated as a fraction, the numerator of which shall be the amount of refunds approved for payment by the Department during the preceding fiscal year as a result of overpayment of tax liability under subsections (a) and (b)(6), (7), and (8), (c) and (d) of Section 201 of this Act plus the amount of such refunds remaining approved but unpaid at the end of the preceding fiscal year, and the denominator of which shall be the amounts which will be collected pursuant to subsections (a) and (b)(6), (7), and (8), (c) and (d) of Section 201 of this Act during the preceding fiscal year; except that in State fiscal year 2002, the Annual Percentage shall in no event exceed 23%.  The Director of Revenue shall certify the Annual Percentage to the Comptroller on the last business day of the fiscal year immediately preceding the fiscal year for which it is to be effective.
(3) The Comptroller shall order transferred and the     Treasurer shall transfer from the Tobacco Settlement Recovery Fund to the Income Tax Refund Fund (i) $35,000,000 in January, 2001, (ii) $35,000,000 in January, 2002, and (iii) $35,000,000 in January, 2003.
(d) Expenditures from Income Tax Refund Fund.
(1) Beginning January 1, 1989, money in the Income     Tax Refund Fund shall be expended exclusively for the purpose of paying refunds resulting from overpayment of tax liability under Section 201 of this Act and for making transfers pursuant to this subsection (d), except that in State fiscal years 2022 and 2023, moneys in the Income Tax Refund Fund shall also be used to pay one-time rebate payments as provided under Sections 208.5 and 212.1.
(2) The Director shall order payment of refunds     resulting from overpayment of tax liability under Section 201 of this Act from the Income Tax Refund Fund only to the extent that amounts collected pursuant to Section 201 of this Act and transfers pursuant to this subsection (d) and item (3) of subsection (c) have been deposited and retained in the Fund.
(3) As soon as possible after the end of each fiscal     year, the Director shall order transferred and the State Treasurer and State Comptroller shall transfer from the Income Tax Refund Fund to the Personal Property Tax Replacement Fund an amount, certified by the Director to the Comptroller, equal to the excess of the amount collected pursuant to subsections (c) and (d) of Section 201 of this Act deposited into the Income Tax Refund Fund during the fiscal year over the amount of refunds resulting from overpayment of tax liability under subsections (c) and (d) of Section 201 of this Act paid from the Income Tax Refund Fund during the fiscal year.
(4) As soon as possible after the end of each fiscal     year, the Director shall order transferred and the State Treasurer and State Comptroller shall transfer from the Personal Property Tax Replacement Fund to the Income Tax Refund Fund an amount, certified by the Director to the Comptroller, equal to the excess of the amount of refunds resulting from overpayment of tax liability under subsections (c) and (d) of Section 201 of this Act paid from the Income Tax Refund Fund during the fiscal year over the amount collected pursuant to subsections (c) and (d) of Section 201 of this Act deposited into the Income Tax Refund Fund during the fiscal year.
(4.5) As soon as possible after the end of fiscal     year 1999 and of each fiscal year thereafter, the Director shall order transferred and the State Treasurer and State Comptroller shall transfer from the Income Tax Refund Fund to the General Revenue Fund any surplus remaining in the Income Tax Refund Fund as of the end of such fiscal year; excluding for fiscal years 2000, 2001, and 2002 amounts attributable to transfers under item (3) of subsection (c) less refunds resulting from the earned income tax credit, and excluding for fiscal year 2022 amounts attributable to transfers from the General Revenue Fund authorized by Public Act 102-700.
(5) This Act shall constitute an irrevocable and     continuing appropriation from the Income Tax Refund Fund for the purposes of (i) paying refunds upon the order of the Director in accordance with the provisions of this Section and (ii) paying one-time rebate payments under Sections 208.5 and 212.1.
(e) Deposits into the Education Assistance Fund and the Income Tax
Surcharge Local Government Distributive Fund. On July 1, 1991, and thereafter, of the amounts collected pursuant to
subsections (a) and (b) of Section 201 of this Act, minus deposits into the
Income Tax Refund Fund, the Department shall deposit 7.3% into the
Education Assistance Fund in the State Treasury.  Beginning July 1, 1991,
and continuing through January 31, 1993, of the amounts collected pursuant to
subsections (a) and (b) of Section 201 of the Illinois Income Tax Act, minus
deposits into the Income Tax Refund Fund, the Department shall deposit 3.0%
into the Income Tax Surcharge Local Government Distributive Fund in the State
Treasury.  Beginning February 1, 1993 and continuing through June 30, 1993, of
the amounts collected pursuant to subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 4.4% into the Income Tax Surcharge Local Government
Distributive Fund in the State Treasury.  Beginning July 1, 1993, and
continuing through June 30, 1994, of the amounts collected under subsections
(a) and (b) of Section 201 of this Act, minus deposits into the Income Tax
Refund Fund, the Department shall deposit 1.475% into the Income Tax Surcharge
Local Government Distributive Fund in the State Treasury.
(f) Deposits into the Fund for the Advancement of Education. Beginning February 1, 2015, the Department shall deposit the following portions of the revenue realized from the tax imposed upon individuals, trusts, and estates by subsections (a) and (b) of Section 201 of this Act, minus deposits into the Income Tax Refund Fund, into the Fund for the Advancement of Education:
(1) beginning February 1, 2015, and prior to February     1, 2025, 1/30; and
(2) beginning February 1, 2025, 1/26.
If the rate of tax imposed by subsection (a) and (b) of Section 201 is reduced pursuant to Section 201.5 of this Act, the Department shall not make the deposits required by this subsection (f) on or after the effective date of the reduction.
(g) Deposits into the Commitment to Human Services Fund. Beginning February 1, 2015, the Department shall deposit the following portions of the revenue realized from the tax imposed upon individuals, trusts, and estates by subsections (a) and (b) of Section 201 of this Act, minus deposits into the Income Tax Refund Fund, into the Commitment to Human Services Fund:
(1) beginning February 1, 2015, and prior to February     1, 2025, 1/30; and
(2) beginning February 1, 2025, 1/26.
If the rate of tax imposed by subsection (a) and (b) of Section 201 is reduced pursuant to Section 201.5 of this Act, the Department shall not make the deposits required by this subsection (g) on or after the effective date of the reduction.
(h) Deposits into the Tax Compliance and Administration Fund.  Beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department, an amount equal to 1/12 of 5% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department from the tax imposed by subsections (a), (b), (c), and (d) of Section 201 of this Act, net of deposits into the Income Tax Refund Fund made from those cash receipts.
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658, eff. 8-27-21; 102-699, eff. 4-19-22; 102-700, eff. 4-19-22; 102-813, eff. 5-13-22; 103-8, eff. 6-7-23; 103-154, eff. 6-30-23.)
(35 ILCS 5/902) (from Ch. 120, par. 9-902)
Sec. 902. Notice and demand.
(a) In general. Except as provided in subsection (b) the Director shall,
as soon as practicable after an amount payable under this Act is deemed
assessed (as provided in Section 903), give notice to each person liable
for any unpaid portion of such assessment, stating the amount unpaid and
demanding payment thereof. In the case of tax deemed assessed with the
filing of a return, the Director shall give notice no later than 3 years
after the date the return was filed.  Upon receipt of any notice and demand
there shall be paid
at the place and time stated in such notice the amount stated in such
notice. Such notice shall be left at the dwelling or usual place of business
of such person or shall be sent by mail to the person's last known address.
(b) Judicial review. In the case of a deficiency deemed assessed under
Section 903(a)(2) after the filing of a protest, notice and demand shall
not be made with respect to such assessment until all proceedings in court
for the review of such assessment have terminated or the time for the
taking thereof has expired without such proceedings being instituted.
(c) Action for recovery of taxes. At any time that the Department might
commence proceedings for a levy under Section 1109, regardless of whether a
notice of lien was filed under the provisions of Section 1103, it may bring an
action in any court of competent jurisdiction within or without this State
in the name of the people of this State to recover the amount of any taxes,
penalties and interest due and unpaid under this Act. In such action, the
certificate of the Department showing the amount of the delinquency shall
be prima facie evidence of the correctness of such amount, its assessment
and of the compliance by the Department with all the provisions of this Act.
(d) Sales or transfers outside the usual course of
business-Report-Payment of Tax - Rights and duties of purchaser or
transferee - penalty.  If any taxpayer, outside the usual course of his
business, sells or transfers the major part of any one or more of (A) the
stock of goods which he is engaged in the business of selling, or (B) the
furniture or fixtures, or (C) the machinery and equipment, or (D) the real
property, of any business that is subject to the provisions of this Act,
the purchaser or transferee of such assets shall, no later than 10 business days
before the sale or transfer, file a notice of sale or transfer of business
assets with the
 Department disclosing the name and address of the
seller or transferor, the
name and address of the purchaser or transferee, the date of the sale or
transfer, a copy of the sales contract and financing agreements which shall
include a description of the property sold or transferred, the amount of
the purchase price or a statement of other consideration for the sale or
transfer, and the terms for payment of the purchase price, and such other
information as the Department may reasonably require.  If the purchaser or
transferee fails to file the above described notice of sale with the
Department within the prescribed time, the purchaser or transferee shall be
personally liable to the Department for the amount
owed hereunder by the seller or transferor
but unpaid, up to the
amount of the reasonable value of the property acquired by the purchaser or
transferee.  The purchaser or transferee shall pay the Department the
amount of tax, penalties, and interest owed by the seller or transferor
under this Act, to the extent they have
not been paid by the seller or transferor.  The seller or transferor, or
the purchaser or transferee, at least 10 business days before the date of the sale
or transfer, may notify the Department of the intended sale or transfer
and request the Department to make a determination as to whether the seller
or transferor owes any
tax, penalty or
interest due under this Act.  The Department shall take such steps as may
be appropriate to comply with such request.
Any order issued by the Department pursuant to this Section to withhold
from the purchase price shall be issued within 10 business days after the Department
receives notification of a sale as provided in this Section.
The purchaser or transferee shall withhold such portion of
the purchase price
as may be directed by the Department, but not to exceed a
minimum amount varying by type of business, as determined by the Department
pursuant to regulations, plus twice the outstanding unpaid liabilities and
twice the average liability of preceding filings times the number of
unfiled returns which were not filed when due,
to cover the amount of all tax, penalty, and interest due and
unpaid by the seller or transferor under this Act or, if the payment of
money or property is not involved, shall withhold the performance of the
condition that constitutes the consideration for the sale or transfer.
Within 60 business days after issuance of
the initial order to withhold, the Department shall provide written notice
to the purchaser or transferee of the actual amount of all taxes, penalties
and interest then due and whether or not additional amounts may become due
as a result of unpaid taxes required to be withheld by an employer, returns
which were not filed when due, pending assessments and audits not
completed.  The purchaser or transferee shall continue to withhold the
amount directed to be withheld by the initial order or such lesser amount
as is specified by the final withholding order or to withhold the
performance of the condition which constitutes the consideration for the
sale or transfer
until
the purchaser or transferee receives from the Department a certificate showing
that no unpaid tax, penalty or interest is due from the seller
or transferor under this Act.
The purchaser or transferee is relieved of any duty to continue to
withhold from the purchase price and of any liability for tax, penalty,
or interest due hereunder from the seller or transferor if the Department
fails to notify the purchaser or transferee in the manner provided
herein of the amount to be withheld
within 10 business days after the sale or transfer has been reported to the
Department or within 60 business days after issuance of the initial order to
withhold, as the case may be.
The Department shall have the right to determine
amounts claimed on an estimated basis to allow for periods for which
returns were not filed when due, pending assessments and audits not
completed, however the purchaser or transferee shall be personally liable
only for the actual amount due when determined.
If the seller or transferor has failed to pay the tax, penalty, and
interest due from him hereunder and the Department makes timely
claim therefor against the purchaser or transferee as hereinabove provided,
then the purchaser
or transferee shall pay to the Department the amount so withheld from the
purchase price.  If the purchaser or transferee fails to comply with the
requirements of this Section, the purchaser or transferee shall be
personally liable to the Department for the amount owed hereunder by
the seller or transferor up to the amount of the reasonable
value of the property acquired by the purchaser or transferee.
Any person who shall acquire any property or rights thereto which, at the
time of such acquisition, is subject to a valid lien in favor of the
Department, shall be personally liable to the Department for a sum equal to
the amount of taxes, penalties and interests, secured by such lien, but not
to exceed the reasonable value of such property acquired by him.
(Source: P.A. 102-40, eff. 6-25-21.)
(35 ILCS 5/903) (from Ch. 120, par. 9-903)
Sec. 903. 
		Assessment. 
		(a) In general. (1) Returns. The amount of tax which is shown to
be due on the return shall be deemed assessed on the date of filing of
the return (including any amended returns showing an increase of tax).
In the event that the amount of tax is understated on the taxpayer's
return due to a mathematical error, the Department shall notify the
taxpayer that the amount of tax in excess of that shown on the return is
due and has been assessed. Such notice of additional tax due shall be issued no
later than 3 years after the date the return was filed.  Such notice of
additional tax due shall not
be considered a notice of deficiency nor shall the taxpayer have any
right of protest. In the case of a return properly filed without the
computation of the tax, the tax computed by the Department shall be
deemed to be assessed on the date when payment is due.
(2) Notice of deficiency.  If a notice of deficiency has been
issued, the amount of the deficiency shall be deemed assessed on the
date provided in section 904(d) if no protest is filed; or, if a protest
is filed, then upon the date when the decision of the Department becomes
final.
(3) Federal change.  If an amended return or report is filed with
the Department pursuant to section 506(b), any deficiency in tax under this Act
resulting therefrom shall be deemed to be assessed on the date of filing
such report or amended return and such assessment shall be timely
notwithstanding any other provisions of this Act.
(4) Payments.  Any amount paid as tax or in respect of tax paid
under this Act, other than amounts withheld or paid as estimated tax
under Articles 7 or 8, shall be deemed assessed upon the date of receipt
of payment, notwithstanding any other provisions of this Act.
(b) Limitations on assessment.  No deficiency shall be assessed
with respect to a taxable year for which a return was filed unless a
notice of deficiency for such year was issued not later than the date
prescribed in section 905.
(Source: P.A. 84-127.)
(35 ILCS 5/904) (from Ch. 120, par. 9-904)
Sec. 904. 
		Deficiencies and Overpayments.
(a) Examination of return.  As soon as practicable after a return is
filed, the Department shall examine it to determine the correct amount of
tax. If the Department finds that the amount of tax shown on the return is
less than the correct amount, it shall issue a notice of deficiency to the
taxpayer which shall set forth the amount of tax and penalties proposed to
be assessed. If the Department finds that the tax paid is more than the
correct amount, it shall credit or refund the overpayment as provided by
Section 909. The findings of the Department under this subsection shall
be prima facie correct and shall be prima facie evidence of the correctness
of the amount of tax and penalties due.
(b) No return filed.  If the taxpayer fails to file a tax return, the
Department shall determine the amount of tax due according to its best
judgment and information, which amount so fixed by the Department shall be
prima facie correct and shall be prima facie evidence of the correctness of
the amount of tax due. The Department shall issue a notice of deficiency to
the taxpayer which shall set forth the amount of tax and penalties proposed
to be assessed.
(c) Notice of deficiency.  A notice of deficiency issued under this
Act shall set forth the adjustments giving rise to the proposed assessment
and the reasons therefor. In the case of a joint return, the notice of
deficiency may be a single joint notice except that if the Department is
notified by either spouse that separate residences have been established,
it shall issue joint notices to each spouse.
(d) Assessment when no protest.  Upon the expiration of 60 days after
the date on which it was issued (150 days if the taxpayer is outside the
United States), a notice of deficiency shall constitute an assessment of
the amount of tax and penalties specified therein, except only for such
amounts as to which the taxpayer shall have filed a protest with the
Department, as provided in Section 908.
(Source: P.A. 87-192; 87-205.)
(35 ILCS 5/905) (from Ch. 120, par. 9-905)
Sec. 905. Limitations on notices of deficiency.
(a) In general. Except as otherwise provided in this Act:
(1) A notice of deficiency shall be issued not later     than 3 years after the date the return was filed, and
(2) No deficiency shall be assessed or collected with     respect to the year for which the return was filed unless such notice is issued within such period.
(a-5) Notwithstanding any other provision of this Act to the contrary, for any taxable year included in a claim for credit or refund for which the statute of limitations for issuing a notice of deficiency 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.
(b) Substantial omission of items.
(1) Omission of more than 25% of income. If the     taxpayer omits from base income an amount properly includible therein which is in excess of 25% of the amount of base income stated in the return, a notice of deficiency may be issued not later than 6 years after the return was filed. For purposes of this paragraph, there shall not be taken into account any amount which is omitted in the return if such amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the Department of the nature and the amount of such item.
(2) Reportable transactions. If a taxpayer fails to     include on any return or statement for any taxable year any information with respect to a reportable transaction, as required under Section 501(b) of this Act, a notice of deficiency may be issued not later than 6 years after the return is filed with respect to the taxable year in which the taxpayer participated in the reportable transaction and said deficiency is limited to the non-disclosed item.
(3) Withholding.  If an employer omits from a return     required under Section 704A of this Act for any period beginning on or after January 1, 2013, an amount required to be withheld and to be reported on that return which is in excess of 25% of the total amount of withholding required to be reported on that return, a notice of deficiency may be issued not later than 6 years after the return was filed.
(c) No return or fraudulent return. If no return is filed or a
false and fraudulent return is filed with intent to evade the tax
imposed by this Act, a notice of deficiency may be issued at any time. For purposes of this subsection (c), any taxpayer who is required to join in the filing of a return filed under the provisions of subsection (e) of Section 502 of this Act for a taxable year ending on or after December 31, 2013 and who is not included on that return and does not file its own return for that taxable year shall be deemed to have failed to file a return; provided that the amount of any proposed assessment set forth in a notice of deficiency issued under this subsection (c) shall be limited to the amount of any increase in liability under this Act that should have reported on the return required under the provisions of subsection (e) of Section 502 of this Act for that taxable year resulting from proper inclusion of that taxpayer on that return.
(d) Failure to report federal change. If a taxpayer fails to
notify the Department in any case where notification is required by
Section 304(c) or 506(b), or fails to report a change or correction which is
treated in the same manner as if it were a deficiency for federal income
tax purposes, a notice of deficiency may be issued (i) at any time or
(ii) on or after August 13, 1999, at any time for the
taxable year for which the notification is required or for any taxable year to
which the taxpayer may carry an Article 2 credit, or a Section 207 loss,
earned, incurred, or used in the year for which the notification is required;
provided, however, that the amount of any proposed assessment set forth in the
notice shall be limited to the amount of any deficiency resulting under this
Act from the recomputation of the taxpayer's net income, Article 2 credits, or
Section 207 loss earned, incurred, or used in the taxable year for which the
notification is required after giving effect to the item or items required to
be reported.
(e) Report of federal change.
(1) Before August 13, 1999, in any case where     notification of an alteration is given as required by Section 506(b), a notice of deficiency may be issued at any time within 2 years after the date such notification is given, provided, however, that the amount of any proposed assessment set forth in such notice shall be limited to the amount of any deficiency resulting under this Act from recomputation of the taxpayer's net income, net loss, or Article 2 credits for the taxable year after giving effect to the item or items reflected in the reported alteration.
(2) On and after August 13, 1999, in any case where     notification of an alteration is given as required by Section 506(b), a notice of deficiency may be issued at any time within 2 years after the date such notification is given for the taxable year for which the notification is given or for any taxable year to which the taxpayer may carry an Article 2 credit, or a Section 207 loss, earned, incurred, or used in the year for which the notification is given, provided, however, that the amount of any proposed assessment set forth in such notice shall be limited to the amount of any deficiency resulting under this Act from recomputation of the taxpayer's net income, Article 2 credits, or Section 207 loss earned, incurred, or used in the taxable year for which the notification is given after giving effect to the item or items reflected in the reported alteration.
(f) Extension by agreement. Where, before the expiration of the
time prescribed in this Section for the issuance of a notice of
deficiency, both the Department and the taxpayer shall have consented in
writing to its issuance after such time, such notice may be issued at
any time prior to the expiration of the period agreed upon.
In the case of a taxpayer who is a partnership, Subchapter S corporation, or
trust and who enters into an agreement with the Department pursuant to this
subsection on or after January 1, 2003, a notice of deficiency may be issued to
the partners, shareholders, or beneficiaries of the taxpayer at any time prior
to the expiration of the period agreed upon. Any
proposed assessment set forth in the notice, however, shall be limited to the
amount of
any deficiency resulting under this Act from recomputation of items of income,
deduction, credits, or other amounts of the taxpayer that are taken into
account by the partner, shareholder, or beneficiary in computing its liability
under this Act.
The period
so agreed upon may be extended by subsequent agreements in writing made
before the expiration of the period previously agreed upon.
(g) Erroneous refunds. In any case in which there has been an
erroneous refund of tax payable under this Act, a notice of deficiency
may be issued at any time within 2 years from the making of such refund,
or within 5 years from the making of such refund if it appears that any
part of the refund was induced by fraud or the misrepresentation of a
material fact, provided, however, that the amount of any proposed
assessment set forth in such notice shall be limited to the amount of
such erroneous refund.
Beginning July 1, 1993, in any case in which there has been a refund of tax
payable under this Act attributable to a net loss carryback as provided for in
Section 207, and that refund is subsequently determined to be an erroneous
refund due to a reduction in the amount of the net loss which was originally
carried back, a notice of deficiency for the erroneous refund amount may be
issued at any time during the same time period in which a notice of deficiency
can be issued on the loss year creating the carryback amount and subsequent
erroneous refund. The amount of any proposed assessment set forth in the notice
shall be limited to the amount of such erroneous refund.
(h) Time return deemed filed. For purposes of this Section a tax
return filed before the last day prescribed by law (including any
extension thereof) shall be deemed to have been filed on such last day.
(i) Request for prompt determination of liability. For purposes
of subsection (a)(1), in the case of a tax return required under this
Act in respect of a decedent, or by his estate during the period of
administration, or by a corporation, the period referred to in such
Subsection shall be 18 months after a written request for prompt
determination of liability is filed with the Department (at such time
and in such form and manner as the Department shall by regulations
prescribe) by the executor, administrator, or other fiduciary
representing the estate of such decedent, or by such corporation, but
not more than 3 years after the date the return was filed. This
subsection shall not apply in the case of a corporation unless:
(1) (A) such written request notifies the Department     that the corporation contemplates dissolution at or before the expiration of such 18-month period, (B) the dissolution is begun in good faith before the expiration of such 18-month period, and (C) the dissolution is completed;
(2) (A) such written request notifies the Department     that a dissolution has in good faith been begun, and (B) the dissolution is completed; or
(3) a dissolution has been completed at the time such     written request is made.
(j) Withholding tax. In the case of returns required under Article 7
of this Act (with respect to any amounts withheld as tax or any amounts
required to have been withheld as tax) a notice of deficiency shall be
issued not later than 3 years after the 15th day of the 4th month
following the close of the calendar year in which such withholding was
required.
(k) Penalties for failure to make information reports.  A notice of
deficiency for the penalties provided by Subsection 1405.1(c) of this Act may
not be issued more than 3 years after the due date of the reports with respect
to which the penalties are asserted.
(l) Penalty for failure to file withholding returns.  A notice of deficiency
for penalties provided by Section 1004 of this Act for the taxpayer's failure
to file withholding returns may not be issued more than three years after
the 15th day of the 4th month following the close of the calendar year in
which the withholding giving rise to the taxpayer's obligation to file those
returns occurred.
(m) Transferee liability. A notice of deficiency may be issued to a
transferee relative to a liability asserted under Section 1405 during time
periods defined as follows:
(1) Initial Transferee.  In the case of the liability     of an initial transferee, up to 2 years after the expiration of the period of limitation for assessment against the transferor, except that if a court proceeding for review of the assessment against the transferor has begun, then up to 2 years after the return of the certified copy of the judgment in the court proceeding.
(2) Transferee of Transferee.  In the case of the     liability of a transferee, up to 2 years after the expiration of the period of limitation for assessment against the preceding transferee, but not more than 3 years after the expiration of the period of limitation for assessment against the initial transferor; except that if, before the expiration of the period of limitation for the assessment of the liability of the transferee, a court proceeding for the collection of the tax or liability in respect thereof has been begun against the initial transferor or the last preceding transferee, as the case may be, then the period of limitation for assessment of the liability of the transferee shall expire 2 years after the return of the certified copy of the judgment in the court proceeding.
(n) Notice of decrease in net loss.  On and after August 23, 2002, no notice of deficiency shall
be issued as the result of a decrease determined by the Department in the net
loss incurred by a taxpayer in any taxable year ending prior to December 31, 2002 under Section 207 of this Act unless the Department
has notified the taxpayer of the proposed decrease within 3 years after the
return reporting the loss was filed or within one year after an amended return
reporting an increase in the loss was filed, provided that in the case of an
amended return, a decrease proposed by the Department more than 3 years after
the original return was filed may not exceed the increase claimed by the
taxpayer on the original return.
(Source: P.A. 102-40, eff. 6-25-21; 102-687, eff. 12-17-21.)
(35 ILCS 5/906) (from Ch. 120, par. 9-906)
Sec. 906. 
		Further Notices of Deficiency Restricted.
If a protest has been filed with respect to a notice of deficiency
issued by the Department with respect to a taxable year, and the decision
of the Department on such protest has become final, the Department shall be
barred from issuing a further or additional notice of deficiency for such
taxable year, except in the case of fraud, mathematical error, a return that
is not considered processable, as the term is defined in Section 3-2 of the
Uniform Penalty and Interest Act, or as
provided in section 905(d), (e), or (g).
(Source: P.A. 89-399, eff. 8-20-95.)
(35 ILCS 5/907) (from Ch. 120, par. 9-907)
Sec. 907. 
		
		Waiver
of Restrictions on Assessment.
The taxpayer at any time, whether or not a notice of deficiency has been
issued, shall have the right to waive the restrictions on assessment and
collection of the whole or any part of any proposed assessment under this
Act by a signed notice in writing filed with the Department in such form as
the Department may by forms or regulations prescribe.
(Source: P.A. 76-261.)
(35 ILCS 5/908) (from Ch. 120, par. 9-908)
Sec. 908. Procedure on protest.
(a) Time for protest.  Within 60 days (150 days if the taxpayer is
outside the United States) after the issuance of a notice of deficiency,
the taxpayer may file (i)  a protest against the proposed assessment with the Department or (ii) a petition with the Illinois Independent Tax Tribunal, as provided in this subsection (a).  Prior to July 1, 2013, a written protest against the
proposed assessment shall be filed with the Department in such form as the Department may by regulations
prescribe, setting forth the grounds on which such protest is based. If such a
protest is filed, the Department shall reconsider the proposed assessment
and, if the taxpayer has so requested, shall grant the taxpayer or his
authorized representative a hearing.
On and after July 1, 2013, all  protests of a notice of deficiency that are subject to the jurisdiction of the Illinois Independent Tax Tribunal shall be filed by petition pursuant to the Illinois Independent Tax Tribunal Act of 2012.
With respect to protests filed with the Department prior to July 1, 2013 that are otherwise subject to the jurisdiction of the Illinois Independent Tax Tribunal, the taxpayer may elect to be subject to the provisions of the Illinois Independent Tax Tribunal Act of 2012 at any time on or after July 1, 2013, but not later than 30 days after the date on which the protest was filed.  If made, the election shall be irrevocable.
(b) Notice of decision.  With respect to protests filed with the Department that are  not subject to the provisions of the Illinois Independent Tax Tribunal Act of 2012, as soon as practicable after such
reconsideration and hearing, if any, the Department shall issue a notice of
decision by mailing such notice by certified or registered mail. Such
notice shall set forth briefly the Department's findings of fact and the
basis of decision in each case decided in whole or in part adversely to the
taxpayer.
(c) Request for rehearing.  With respect to protests filed with the Department  that are  not subject to the provisions of the Illinois Independent Tax Tribunal Act of 2012, within 30 days after the mailing of a
notice of decision, the taxpayer may file with a Department a written
request for rehearing in such form as the Department may by regulations
prescribe, setting forth the grounds on which rehearing is requested. In
any such case, the Department shall, in its discretion, grant either a
rehearing or Departmental review unless, within 10 days of receipt of such
request, it shall issue a denial of such request by mailing such denial to
the taxpayer by certified or registered mail. If rehearing or Departmental
review is granted, as soon as practicable after such rehearing or
Departmental review, the Department shall issue a notice of final decision
as provided in subsection (b).
(d) Finality of decision.  If the taxpayer fails to file a timely protest or petition under subsection (a) of this Section, then the Department's notice of deficiency shall become a final assessment at the end of the 60th day after the date of issuance of the notice of deficiency (or the 150th day if the taxpayer is outside the United States). If the taxpayer files a protest with the Department, and the taxpayer does not elect to be subject to the provisions of the Illinois Independent Tax Tribunal Act of 2012, then the action of the Department on the
taxpayer's protest shall become final:
(1) 30 Days after issuance of a notice of decision as     provided in subsection (b); or
(2) if a timely request for rehearing was made, upon     the issuance of a denial of such request or the issuance of a notice of final decision as provided in subsection (c).
After the issuance of a final assessment, or a notice of deficiency which becomes final without the necessity of actually issuing a final assessment as provided in this Section, the Department, at any time before such assessment is reduced to judgment, may (subject to rules of the Department) grant a rehearing (or grant departmental review and hold an original hearing if no previous hearing in the matter has been held) upon the application of the person aggrieved.  Pursuant to such hearing or rehearing, the Department shall issue a revised final assessment to such person or his legal representative for the amount found to be due as a result of such hearing or rehearing.
If the taxpayer files a petition with the Illinois Independent Tax Tribunal, or otherwise elects to be subject to the provisions of the Illinois Independent Tax Tribunal Act of 2012, then the Department's decision will become final as provided in that Act.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 5/909) (from Ch. 120, par. 9-909)
Sec. 909. Credits and Refunds.
(a) In general. In the case of any overpayment, the Department, within the applicable period of limitations for a claim for refund, may
credit the amount of such overpayment, including any interest allowed
thereon, against any liability in respect of the tax imposed by this Act,
regardless of whether other collection remedies are closed to the
Department on the part of the person who made the overpayment and shall
refund any balance to such person or credit any balance to that person pursuant to an election under subsection (b) of this Section.
(b) Credits against estimated tax. The Department shall 
prescribe regulations providing for a taxpayer election on an original return, an amended return, or otherwise for the crediting against the estimated tax
for any taxable year of the amount determined by the taxpayer or the
Department to be an overpayment of the tax imposed by this Act for a
preceding taxable year.
(c) Interest on overpayment. Interest shall be allowed and paid at the
rate and in the manner prescribed in Section 3-2 of the Uniform Penalty and
Interest Act upon any overpayment in respect of the tax imposed by this
Act. For purposes of this subsection, no amount of tax, for any taxable
year, shall be treated as having been paid before the date on which the tax
return for such year was due under Section 505, without regard to any
extension of the time for filing such return.
(d) Refund claim. Every claim for refund shall be filed with the
Department in writing in such form as the Department may by regulations
prescribe, and shall state the specific grounds upon which it is founded.
(e) Notice of denial. As soon as practicable after a claim for refund
is filed, the Department shall examine it and either issue a notice of
refund, abatement or credit to the claimant or issue a notice of denial.
If the Department has failed to approve or deny the claim before the
expiration of 6 months from the date the claim was filed, the claimant may
nevertheless thereafter file with the Department a written protest in such
form as the Department may by regulation prescribe, provided that, on or after July 1, 2013, protests concerning matters that are  subject to the jurisdiction of the Illinois Independent Tax Tribunal shall be filed with the Illinois Independent Tax Tribunal and not with the Department.   If the protest is subject to the jurisdiction of the Department,
the Department shall consider the claim and, if the taxpayer has so
requested, shall grant the taxpayer or the taxpayer's authorized
representative a hearing within 6 months after the date such request is filed.
On and after July 1, 2013, if the protest would otherwise be subject to the jurisdiction of the Illinois Independent Tax Tribunal, the claimant may elect to treat the Department's non-action as a denial of the claim by filing a petition to review the Department's administrative decision with the Illinois Independent Tax Tribunal, as provided by Section 910.
(f) Effect of denial. A denial of a claim for refund becomes final 60
days after the date of issuance of the notice of such denial except for
such amounts denied as to which the claimant has filed a protest with the
Department or  a petition with the Illinois Independent Tax Tribunal, as provided by Section 910.
(g) An overpayment of tax shown on the face of an unsigned return
shall be considered forfeited to the State if after notice and demand for
signature by the Department the taxpayer fails to provide a signature and 3
years have passed from the date the return was filed.
An overpayment of tax refunded to a taxpayer whose return was filed
electronically shall be considered an erroneous refund under Section 912 of
this Act if, after proper notice and demand by the
Department, the taxpayer fails to provide a required signature document.
A notice and demand for signature in the case of a return reflecting an
overpayment may be made by first class mail.  This subsection (g) shall apply
to all returns filed pursuant to this Act since 1969.
(h) This amendatory Act of 1983 applies to returns and claims for
refunds filed with the Department on and after July 1, 1983.
(Source: P.A. 97-507, eff. 8-23-11; 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13; 98-925, eff. 1-1-15.)
(35 ILCS 5/910) (from Ch. 120, par. 9-910)
Sec. 910. Procedure on Denial of Claim for Refund.
(a) Time for protest. Within 60 days after the denial of the
claim,
the claimant may file (i) a protest with the Department or (ii) a petition with the Illinois Independent Tax Tribunal, as provided in this subsection (a). A written protest against such
denial shall be filed with the Department in such form as the Department may by regulations prescribe, setting
forth the grounds on which such protest is based. If such a protest is filed,
the Department shall reconsider the denial and, if the taxpayer has so
requested, shall grant the taxpayer or his authorized representative a
hearing. With respect to protests filed with the Department prior to July 1, 2013 that would otherwise be subject to the jurisdiction of the Illinois Independent Tax Tribunal, the taxpayer may elect to be subject to the provisions of the Illinois Independent Tax Tribunal Act of 2012 on or after July 1, 2013, but not later than 30 days after the date on which the protest was filed.  If made, the election shall be irrevocable.
A claimant who, on or after July 1, 2013, wishes to protest a denial that is subject to the jurisdiction of the Illinois Independent Tax Tribunal  shall do so by filing a petition with the Illinois Independent Tax Tribunal pursuant to the Illinois Independent Tax Tribunal Act of 2012.
(b) Notice of decision. With respect to protests that are subject to the jurisdiction of the Department, if the taxpayer has not made an election to be subject to the provisions of the Illinois Independent Tax Tribunal Act of 2012, then as soon as practicable after such
reconsideration and hearing, if any, the Department shall issue a notice of
decision by mailing such notice by certified or registered mail. Such
notice shall set forth briefly the Department's findings of fact and the
basis of decision in each case decided in whole or in part adversely to the
claimant.
(c) Request for rehearing. Within 30 days after the mailing of a
notice of decision as provided in subsection (b), the claimant may file with the Department a written
request for rehearing in such form as the Department may by regulations
prescribe, setting forth the grounds on which rehearing is requested. In
any such case, the Department shall, in its discretion, grant either a
rehearing or Departmental review unless, within 10 days of receipt of such
request, it shall issue a denial of such request by mailing such denial to
the claimant by certified or registered mail. If rehearing or Departmental
review is granted, as soon as practicable after such rehearing or
Departmental review, the Department shall issue a notice of final decision
as provided in subsection (b).
(d) Finality of decision. If the taxpayer fails to file a timely protest or petition under subsection (a) of this Section, then the Department's notice of deficiency shall become a final assessment at the end of the 60th day after the date of issuance of the notice of deficiency. If the protest is subject to the jurisdiction of the Department, and the taxpayer does not elect to be subject to the provisions of the Illinois Independent Tax Tribunal Act of 2012, then the action of the Department on the claimant's
protest shall become final:
(1) 30 days after issuance of a notice of decision as     provided in subsection (b); or
(2) If a timely request for rehearing was made, upon     the issuance of a denial of such request or the issuance of a notice of final decision as provided in subsection (c).
If the taxpayer files a petition with the Illinois Independent Tax Tribunal, or otherwise elects to be subject to the provisions of the Illinois Independent Tax Tribunal Act of 2012, then the Department's decision will become final as provided in that Act.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 5/911) (from Ch. 120, par. 9-911)
Sec. 911. Limitations on claims for refund.
(a) In general. Except
as otherwise provided in this Act:
(1) A claim for refund shall be filed not later than     3 years after the date the return was filed (in the case of returns required under Article 7 of this Act respecting any amounts withheld as tax, not later than 3 years after the 15th day of the 4th month following the close of the calendar year in which such withholding was made), or one year after the date the tax was paid, whichever is the later; and
(2) No credit or refund shall be allowed or made with     respect to the year for which the claim was filed unless such claim is filed within such period.
(b) Federal changes.
(1) In general.  In any case where notification of an     alteration is required by Section 506(b), a claim for refund may be filed within 2 years after the date on which such notification was due (regardless of whether such notice was given), but the amount recoverable pursuant to a claim filed under this Section shall be limited to the amount of any overpayment resulting under this Act from recomputation of the taxpayer's net income, net loss, or Article 2 credits for the taxable year after giving effect to the item or items reflected in the alteration required to be reported.
(2) Tentative carryback adjustments paid before     January 1, 1974. If, as the result of the payment before January 1, 1974 of a federal tentative carryback adjustment, a notification of an alteration is required under Section 506(b), a claim for refund may be filed at any time before January 1, 1976, but the amount recoverable pursuant to a claim filed under this Section shall be limited to the amount of any overpayment resulting under this Act from recomputation of the taxpayer's base income for the taxable year after giving effect to the federal alteration resulting from the tentative carryback adjustment irrespective of any limitation imposed in paragraph (1) of this subsection.
(c) Extension by agreement.  Where, before the expiration of the
time prescribed in this section for the filing of a claim for refund,
both the Department and the claimant shall have consented in writing to
its filing after such time, such claim may be filed at any time prior to
the expiration of the period agreed upon.  The period so agreed upon may
be extended by subsequent agreements in writing made before the
expiration of the period previously agreed upon.
In the case of a taxpayer who is a partnership, Subchapter S corporation, or
trust and who enters into an agreement with the Department pursuant to this
subsection on or after January 1, 2003, a claim for refund may be filed by the
partners, shareholders, or beneficiaries of the taxpayer at any time prior to
the expiration of the period agreed upon. Any refund
allowed pursuant to the claim, however, shall be limited to the amount of any
overpayment
of tax due under this Act that results from recomputation of items of income,
deduction, credits, or other amounts of the taxpayer that are taken into
account by the partner, shareholder, or beneficiary in computing its liability
under this Act.
(d) Limit on amount of credit or refund.
(1) Limit where claim filed within 3-year period.  If     the claim was filed by the claimant during the 3-year period prescribed in subsection (a), the amount of the credit or refund shall not exceed the portion of the tax paid within the period, immediately preceding the filing of the claim, equal to 3 years plus the period of any extension of time for filing the return.
(2) Limit where claim not filed within 3-year period.      If the claim was not filed within such 3-year period, the amount of the credit or refund shall not exceed the portion of the tax paid during the one year immediately preceding the filing of the claim.
(e) Time return deemed filed.  For purposes of this section a tax
return filed before the last day prescribed by law for the filing of
such return (including any extensions thereof) shall be deemed to have
been filed on such last day.
(f) No claim for refund or credit based on the taxpayer's taking a credit for
estimated tax payments as provided by Section 601(b)(2) or for any amount
paid by a taxpayer pursuant to Section 602(a) or for any amount of credit for
tax withheld pursuant to Article 7 may be filed unless a return was filed for the tax year not more than 3
years after the due date, as provided by Section 505, of the return which
was required to be filed relative to the taxable year for which the
payments were made or for which the tax was withheld. The changes in
this subsection (f) made by this
amendatory Act of 1987 shall apply to all taxable years ending on or after
December 31, 1969.
(g) Special Period of Limitation with Respect to Net Loss Carrybacks.
If the claim for refund relates to an overpayment attributable to a net
loss carryback as provided by Section 207, in lieu of the 3 year period of
limitation prescribed in subsection (a), the period shall be that period
which ends 3 years after the time prescribed by law for filing the return
(including extensions thereof) for the taxable year of the net loss which
results in such carryback (or, on and after August 13, 1999, with respect to a change in the
carryover of
an Article 2 credit to a taxable year resulting from the carryback of a Section
207 loss incurred in a taxable year beginning on or after January 1, 2000, the
period shall be that period
that ends 3 years after the time prescribed by law for filing the return
(including extensions of that time) for that subsequent taxable year),
or the period prescribed in subsection (c) in
respect of such taxable year, whichever expires later.  In the case of such
a claim, the amount of the refund may exceed the portion of the tax paid
within the period provided in subsection (d) to the extent of the amount of
the overpayment attributable to such carryback.
On and after August 13, 1999, if the claim for refund relates to an overpayment attributable to
the
carryover
of an Article 2 credit, or of a Section 207 loss, earned, incurred (in a
taxable year beginning on or after January 1, 2000), or used in
a
year for which a notification of a change affecting federal taxable income must
be filed under subsection (b) of Section 506, the claim may be filed within the
period
prescribed in paragraph (1) of subsection (b) in respect of the year for which
the
notification is required.  In the case of such a claim, the amount of the
refund may exceed the portion of the tax paid within the period provided in
subsection (d) to the extent of the amount of the overpayment attributable to
the recomputation of the taxpayer's Article 2 credits, or Section 207 loss,
earned, incurred, or used in the taxable year for which the notification is
given.
(h) Claim for refund based on net loss.  On and after August 23, 2002, no claim for refund shall
be allowed to the extent the refund is the result of an amount of net loss
incurred in any taxable year ending prior to December 31, 2002
under Section 207 of this Act that was not reported to the Department
within 3 years of the due date (including extensions) of the return for the
loss year on either the original return filed by the taxpayer or on amended
return or to the extent that the refund is the result of an amount of net loss incurred in any taxable year under Section 207 for which no return was filed within 3 years of the due date (including extensions) of the return for the loss year.
(i) Periods of limitation suspended while taxpayer is unable to manage financial affairs due to disability.  In the case of an individual, the running of the periods specified in this Section shall be suspended during any period when that individual is financially disabled.
For purposes of this subsection (i), an individual is financially disabled if that individual is unable to manage his or her financial affairs by reason of a medically determinable physical or mental impairment of the individual that can be expected to result in death, or which has lasted or can be expected to last for a continuous period of not less than 12 months.
An individual shall not be treated as financially disabled during any period when that individual's spouse or any other person is authorized to act on behalf of that individual with respect to financial matters.
(Source: P.A. 97-507, eff. 8-23-11; 98-970, eff. 8-15-14.)
(35 ILCS 5/911.1) (from Ch. 120, par. 9-911.1)
Sec. 911.1. If the Department withholds any refund due under this Act
because of any other liability to the State and if the return for which
such refund is due is a joint return for a taxable year ending before December 31, 2009, the taxpayer who jointly filed such
return and who is not liable to the State shall be entitled to that portion
of the refund attributable to himself or herself.
(Source: P.A. 96-520, eff. 8-14-09.)
(35 ILCS 5/911.2)
Sec. 911.2. Refunds withheld; tax claims of other states.
(a) Definitions.  In this Section the following terms have the meanings
indicated.
"Claimant state" means any state or the District of Columbia that requests
the withholding of a refund pursuant to this Section and that extends a like
comity for the collection of taxes owed to this State.
"Income tax" means any amount of income tax imposed on taxpayers under the
laws of the State of Illinois or the claimant state, including additions to tax
for penalties and interest.
"Refund" means a refund of overpaid income taxes imposed by the State of
Illinois or the claimant state.
"Tax officer" means a unit or official of the claimant state, or the duly
authorized agent of that unit or official, charged with the imposition,
assessment, or collection of state income taxes.
"Taxpayer" means any individual person identified by a claimant state under
this Section
as owing taxes to that claimant state, and in the case of a refund arising from
the filing of a joint return, the taxpayer's spouse.
(b) In general.  Except as provided in subsection (c) of this Section, a tax
officer may:
(1) certify to the Director the existence of a     taxpayer's delinquent income tax liability; and
(2) request the Director to withhold any refund to     which the taxpayer is entitled.
(c) Comity.  A tax officer may not certify or request the Director to
withhold a refund unless the laws of the claimant state:
(1) allow the Director to certify an income tax     liability;
(2) allow the Director to request the tax officer to     withhold the taxpayer's tax refund; and
(3) provide for the payment of the refund to the     State of Illinois.
(d) Certification.  A certification by a tax officer to the Director shall
include:
(1) the full name and address of the taxpayer and any     other names known to be used by the taxpayer;
(2) the social security number or federal tax     identification number of the taxpayer;
(3) the amount of the income tax liability; and
(4) a statement that all administrative and judicial     remedies and appeals have been exhausted or have lapsed and that the assessment of tax, interest, and penalty has become final.
(e) Notification.  As to any taxpayer due a refund, the Director shall:
(1) notify the taxpayer that a claimant state has     provided certification of the existence of an income tax liability;
(2) inform the taxpayer of the tax liability     certified, including a detailed statement for each taxable year showing tax, interest, and penalty;
(3) inform the taxpayer that failure to file a     protest in accordance with subsection (f) of this Section shall constitute a waiver of any demand against this State for the amount certified;
(3.5) inform the taxpayer that the refund has been     withheld and that the tax liability has been paid to the claimant state as provided in subsection (i) of this Section;
(4) provide the taxpayer with notice of an     opportunity to request a hearing to challenge the certification; and
(5) inform the taxpayer that the hearing may be     requested (i)  pursuant to Section 910 of this Act, or (ii) with the tax officer, in accordance with the laws of the claimant state.
(f) Protest of withholding.  A taxpayer may protest the withholding of a
refund pursuant to Section 910 of this Act (except that the protest shall be
filed within 30 days after the date of the Director's notice of certification
pursuant to subsection (e) of this Section).
(g) Certification as prima facie evidence.  If the taxpayer requests a
hearing pursuant to Section 910 of this Act, the certification of the tax
officer shall be prima facie evidence of the correctness of the taxpayer's
delinquent income tax liability to the certifying state.
(h) Rights of spouses to refunds from joint returns.  If a certification is
based upon the tax debt of only one taxpayer and if the refund is based upon a
joint personal income tax return for a taxable year ending before December 31, 2009, the nondebtor spouse shall have the right to:
(1) notification, as provided in subsection (e) of     this Section;
(2) protest, as to the withholding of such spouse's     share of the refund, as provided in subsection (f) of this Section; and
(3) payment of his or her share of the refund,     provided the amount of the overpayment refunded to the spouse shall not exceed the amount of the joint overpayment.
(i) Withholding and payment of refund.  Upon receipt of a request for withholding in accordance
with subsection (b) of this Section, the Director shall:
(1) withhold any refund that is certified by the tax     officer;
(2) pay to the claimant state the entire refund or     the amount certified, whichever is less;
(3) pay any refund in excess of the amount certified     to the taxpayer; and
(4) if a refund is less than the amount certified,     withhold amounts from subsequent refunds due the taxpayer, if the laws of the claimant state provide that the claimant state shall withhold subsequent refunds of taxpayers certified to that state by the Director.
(j) Determination that withholding cannot be made.  After receiving a
certification from a tax officer, the Director shall notify the claimant state
if the Director determines that a withholding cannot be made.
(k) Director's authority.  The Director shall have the authority to enter
into agreements with the tax officers of claimant state relating to:
(1) procedures and methods to be employed by a     claimant state with respect to the operation of this Section;
(2) safeguards against the disclosure or     inappropriate use of any information obtained or maintained pursuant to this Section that identifies, directly or indirectly, a particular taxpayer;
(3) a minimum tax debt, amounts below which, in light     of administrative expenses and efficiency, shall, in the Director's discretion, not be subject to the withholding procedures set forth in this Section.
(l) Remedy not exclusive.  The collection procedures prescribed by this
Section are in addition to, and not in substitution for, any other remedy
available by law.
(Source: P.A. 96-520, eff. 8-14-09.)
(35 ILCS 5/911.3)
Sec. 911.3. Refunds withheld; order of honoring requests. The Department shall honor refund withholding requests in the following order:
(1) a refund withholding request to collect an unpaid     State tax;
(2) a refund withholding request to collect certified     past due child support amounts under Section 2505-650 of the Department of Revenue Law of the Civil Administrative Code of Illinois;
(3) a refund withholding request to collect any debt     owed to the State;
(4) a refund withholding request made by the     Secretary of the Treasury of the United States, or his or her delegate, to collect any tax liability arising from Title 26 of the United States Code;
(4.5) a refund withholding request made by the     Secretary of the Treasury of the United States, or his or her delegate, to collect any nontax debt owed to the United States as authorized under subsection (i-1) of Section 10 of the Illinois State Collection Act of 1986;
(4.6) a refund withholding request to collect any     debt owed to a unit of local government, school district, or public institution of higher education collected under an intergovernmental agreement entered into under Sections 10.05 and  10.05d of the State Comptroller Act;
(5) a refund withholding request pursuant to Section     911.2 of this Act; and
(6) a refund withholding request to collect certified     past due fees owed to the Clerk of the Circuit Court as authorized under Section 2505-655 of the Department of Revenue Law of the Civil Administrative Code of Illinois. (Source: P.A. 97-269, eff. 12-16-11 (see Section 15 of P.A. 97-632 for the effective date of changes made by P.A. 97-269); 97-632, eff. 12-16-11.)
(35 ILCS 5/912) (from Ch. 120, par. 9-912)
Sec. 912. 
		Recovery of Erroneous Refund.
An erroneous refund shall be considered a deficiency of tax on the date
made, and shall be deemed assessed and shall be collected as provided in
sections 903 and 904.
(Source: P.A. 76-261.)
(35 ILCS 5/913) (from Ch. 120, par. 9-913)
Sec. 913. 
		
		Access
to Books and Records.
All books and records and other papers and documents which are required
by this Act to be kept shall, at all times during business hours of the
day, be subject to inspection by the Department or its duly authorized
agents and employees.
(Source: P.A. 89-399, eff. 8-20-95; 89-711, eff. 2-14-97.)
(35 ILCS 5/914) (from Ch. 120, par. 9-914)
Sec. 914. Conduct of Investigations and Hearings. For the purpose of administering and enforcing the provisions of this
Act, the Department, or any officer or employee of the Department
designated, in writing, by the Director may hold investigations and
hearings concerning any matters covered by this Act that are not otherwise delegated to the Illinois Independent Tax Tribunal, and may examine any
books, papers, records or memoranda bearing upon such matters, and may
require the attendance of any person, or any officer or employee of such
person, having knowledge of such matters, and may take testimony and
require proof for its information. In the conduct of any investigation or
hearing, neither the Department nor any officer or employee thereof shall
be bound by the technical rules of evidence, and no informality in any
proceeding, or in the manner of taking testimony, shall invalidate any
order, decision, rule or regulation made or approved or confirmed by the
Department. The Director, or any officer or employee of the Department
authorized by the Director shall have power to administer oaths to such
persons. The books, papers, records and memoranda of the Department, or
parts thereof, may be proved in any hearing, investigation, or legal
proceeding by a reproduced copy thereof
or by a computer print-out of Department records,
under the certificate of the Director.
If reproduced copies of the Department's books, papers, records or
memoranda are offered as proof, the Director must certify that those copies
are true and exact copies of such records on file with the Department.  If
computer print-outs of records of the Department are offered as proof, the
Director must certify that those computer print-outs are true and exact
representations of records properly entered into standard electronic
computing equipment, in the regular course of the Department's business, at
or reasonably near the time of the occurrence of the facts recorded, from
trustworthy and reliable information.
Such reproduced copy shall, without further proof, be admitted
into evidence before the Department or in any legal proceeding.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 5/915) (from Ch. 120, par. 9-915)
Sec. 915. 
		Immunity of Witnesses.
No person shall be excused from testifying or from producing any books,
papers, records or memoranda in any investigation or upon any hearing, when
ordered to do so by the Department or any officer or employee thereof, upon
the ground that the testimony or evidence, documentary or otherwise, may
tend to incriminate him or subject him to a criminal penalty, but no person
shall be prosecuted or subjected to any criminal penalty for, or on account
of, any transaction made or thing concerning which he may testify or
produce evidence, documentary or otherwise, before the Department or an
officer or employee thereof; provided, that such immunity shall extend only
to a natural person who, in obedience to a subpoena, gives testimony under
oath or produces evidence, documentary or otherwise, under oath. No person
so testifying shall be exempt from prosecution and punishment for perjury
committed in so testifying.
(Source: P.A. 76-261.)
(35 ILCS 5/916) (from Ch. 120, par. 9-916)
Sec. 916. Production of Witnesses and Records.
(a) Subpoenas. The Department
or any officer or employee of the Department designated in writing by the
Director, shall at its or his or her own instance, or on the written
request of any other party to the proceeding, issue subpoenas requiring
the attendance of and the giving of testimony by witnesses, and subpoenas
duces tecum requiring the production of books, papers, records or memoranda.
All subpoenas and subpoenas duces tecum issued under this Act may be served
by any person of full age.
(b) Fees. The fees of witnesses for attendance and travel shall be
the same as the fees of witnesses before a Circuit Court of this State,
such fees to be paid when the witness is excused from further attendance.
When the witness is subpoenaed at the instance of the Department or any
officer or employee thereof, such fees shall be paid in the same manner as
other expenses of the Department, and when the witness is subpoenaed at the
instance of any other party to any such proceeding the Department may
require that the cost of service of the subpoena or subpoenas duces tecum
and the fee of the witness be borne by the party at whose instance the
witness is summoned. In such case, the Department, in its discretion, may
require a deposit to cover the cost of such service and witness fees. A
subpoena or subpoena duces tecum so issued shall be
served in the same manner as a subpoena issued out of a court.
(c) Judicial enforcement.  Any Circuit Court of this State, upon the application
of the Department or any officer or
employee thereof, or upon the application of any other party to the
proceeding may, in its discretion, compel the attendance of
witnesses, the production of books, papers, records or memoranda and the
giving of testimony before the Department or any officer or employee
thereof conducting an investigation or holding a hearing not otherwise delegated to the Illinois Independent Tax Tribunal, by an attachment for contempt, or otherwise, in the same manner as
production of evidence may be compelled before the Court.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 5/917) (from Ch. 120, par. 9-917)
Sec. 917. Confidentiality and information sharing.
(a) Confidentiality.
Except as provided in this Section, all information received by the Department
from returns filed under this Act, or from any investigation conducted under
the provisions of this Act, shall be confidential, except for official purposes
within the Department or pursuant to official procedures for collection
of any State tax or pursuant to an investigation or audit by the Illinois
State Scholarship Commission of a delinquent student loan or monetary award
or enforcement of any civil or criminal penalty or sanction
imposed by this Act or by another statute imposing a State tax, and any
person who divulges any such information in any manner, except for such
purposes and pursuant to order of the Director or in accordance with a proper
judicial order, shall be guilty of a Class A misdemeanor.   However, the
provisions of this paragraph are not applicable to   information furnished
to (i) the Department of Healthcare and Family Services (formerly
Department of Public Aid), State's Attorneys, and the Attorney General for child support enforcement purposes and (ii) a licensed attorney representing the taxpayer where an appeal or a protest
has been filed on behalf of the taxpayer. If it is necessary to file information obtained pursuant to this Act in a child support enforcement proceeding, the information shall be filed under seal. The furnishing upon request of the Auditor General, or his or her authorized agents, for official use of returns filed and information related thereto under this Act is deemed to be an official purpose within the Department within the meaning of this Section.
(b) Public information. Nothing contained in this Act shall prevent
the Director from publishing or making available to the public the names
and addresses of persons filing returns under this Act, or from publishing
or making available reasonable statistics concerning the operation of the
tax wherein the contents of returns are grouped into aggregates in such a
way that the information contained in any individual return shall not be
disclosed.
(c) Governmental agencies. The Director may make available to the
Secretary of the Treasury of the United States or his delegate, or the
proper officer or his delegate of any other state imposing a tax upon or
measured by income, for exclusively official purposes, information received
by the Department in the administration of this Act, but such permission
shall be granted only if the United States or such other state, as the case
may be, grants the Department substantially similar privileges.  The Director
may exchange information with the Department of Healthcare and Family Services and the
Department of Human Services (acting as successor to the Department of Public
Aid under the Department of Human Services Act) for
the purpose of verifying sources and amounts of income and for other purposes
directly connected with the administration of this Act, the Illinois Public Aid Code, and any other health benefit program administered by the State. The Director may exchange information with the Director of
the Department of Employment Security for the purpose of verifying sources
and amounts of income and for other purposes directly connected with the
administration of this Act and Acts administered by the Department of
Employment
Security.
The Director may make available to the Illinois Workers' Compensation Commission
information regarding employers for the purpose of verifying the insurance
coverage required under the Workers' Compensation Act and Workers'
Occupational Diseases Act. The Director may exchange information with the Illinois Department on Aging for the purpose of verifying sources and amounts of income for purposes directly related to confirming eligibility for participation in the programs of benefits authorized by the Senior Citizens and Persons with Disabilities Property Tax Relief and Pharmaceutical Assistance Act. The Director may exchange information with the State Treasurer's Office and the Department of Employment Security for the purpose of implementing, administering, and enforcing the Illinois Secure Choice Savings Program Act. The Director may exchange information with the State Treasurer's Office for the purpose of administering the Revised Uniform Unclaimed Property Act or successor Acts. The Director may make information available to the Secretary of State for the purpose of administering Section 5-901 of the Illinois Vehicle Code. The Director may exchange information with the State Treasurer's Office for the purpose of administering the Illinois Higher Education Savings Program established under Section 16.8 of the State Treasurer Act. The Director may make individual income tax information available to the State health benefits exchange, as defined in Section 513, if the disclosure is authorized by the taxpayer pursuant to Section 513.
The Director may make available to any State agency, including the
Illinois Supreme Court, which licenses persons to engage in any occupation,
information that a person licensed by such agency has failed to file
returns under this Act or pay the tax, penalty and interest shown therein,
or has failed to pay any final assessment of tax, penalty or interest due
under this Act.
The Director may make available to any State agency, including the Illinois
Supreme
Court, information regarding whether a bidder, contractor, or an affiliate of a
bidder or
contractor has failed to file returns under this Act or pay the tax, penalty,
and interest
shown therein, or has failed to pay any final assessment of tax, penalty, or
interest due
under this Act, for the limited purpose of enforcing bidder and contractor
certifications.
For purposes of this Section, the term "affiliate" means any entity that (1)
directly,
indirectly, or constructively controls another entity, (2) is directly,
indirectly, or
constructively controlled by another entity, or (3) is subject to the control
of
a common
entity. For purposes of this subsection (a), an entity controls another entity
if
it owns,
directly or individually, more than 10% of the voting securities of that
entity.
As used in
this subsection (a), the term "voting security" means a security that (1)
confers upon the
holder the right to vote for the election of members of the board of directors
or similar
governing body of the business or (2) is convertible into, or entitles the
holder to receive
upon its exercise, a security that confers such a right to vote. A general
partnership
interest is a voting security.
The Director may make available to any State agency, including the
Illinois
Supreme Court, units of local government, and school districts, information
regarding
whether a bidder or contractor is an affiliate of a person who is not
collecting
and
remitting Illinois Use taxes, for the limited purpose of enforcing bidder and
contractor
certifications.
The Director may also make available to the Secretary of State
information that a corporation which has been issued a certificate of
incorporation by the Secretary of State has failed to file returns under
this Act or pay the tax, penalty and interest shown therein, or has failed
to pay any final assessment of tax, penalty or interest due under this Act.
An assessment is final when all proceedings in court for
review of such assessment have terminated or the time for the taking
thereof has expired without such proceedings being instituted.  For
taxable years ending on or after December 31, 1987, the Director may make
available to the Director or principal officer of any Department of the
State of Illinois, information that a person employed by such Department
has failed to file returns under this Act or pay the tax, penalty and
interest shown therein.  For purposes of this paragraph, the word
"Department" shall have the same meaning as provided in Section 3 of the
State Employees Group Insurance Act of 1971.
(d) The Director shall make available for public
inspection in the Department's principal office and for publication, at cost,
administrative decisions issued on or after January
1, 1995. These decisions are to be made available in a manner so that the
following
taxpayer information is not disclosed:
(1) The names, addresses, and identification numbers     of the taxpayer, related entities, and employees.
(2) At the sole discretion of the Director, trade     secrets or other confidential information identified as such by the taxpayer, no later than 30 days after receipt of an administrative decision, by such means as the Department shall provide by rule.
The Director shall determine the
appropriate extent of the
deletions allowed in paragraph (2). In the event the taxpayer does not submit
deletions,
the Director shall make only the deletions specified in paragraph (1).
The Director shall make available for public inspection and publication an
administrative decision within 180 days after the issuance of the
administrative
decision. The term "administrative decision" has the same meaning as defined in
Section 3-101 of Article III of the Code of Civil Procedure. Costs collected
under this Section shall be paid into the Tax Compliance and Administration
Fund.
(e) Nothing contained in this Act shall prevent the Director from
divulging
information to any person pursuant to a request or authorization made by the
taxpayer, by an authorized representative of the taxpayer, or, in the case of
information related to a joint return, by the spouse filing the joint return
with the taxpayer.
(Source: P.A. 102-61, eff. 7-9-21; 102-129, eff. 7-23-21; 102-799, eff. 5-13-22; 102-813, eff. 5-13-22; 102-941, eff. 7-1-22; 103-154, eff. 6-30-23.)
(35 ILCS 5/918) (from Ch. 120, par. 9-918)
Sec. 918. Place
of Hearings. 
All hearings provided for in this Act and not otherwise delegated to the Illinois Independent Tax Tribunal with respect to or concerning a
taxpayer having his residence or commercial domicile in this State shall be
held at the Department's office nearest to the location of such residence
or domicile, except that if the taxpayer has his residence or commercial
domicile in Cook County, such hearing shall be held in Cook County. If the
taxpayer does not have his residence or commercial domicile in this State,
such hearing shall be held in Cook County.
(Source: P.A. 97-1129, eff. 8-28-12.)