Illinois Administrative Code › Title 86 - REVENUE › Part 510 - THE PUBLIC UTILITIES REVENUE ACT › Section 510.140 - Claims to Recover Erroneously Paid Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a)
If it appears, after a claim
			 therefor filed with the Department, that an amount of tax or penalty or
			 interest has been paid which was not due under
the
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.
b)
As to
			 any claim for credit or refund filed with the Department on or after each
			 January 1 and July 1, no amounts erroneously paid 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
the
Act, the
			 claim may be filed at any time prior to the expiration of the period agreed
			 upon.
c) Beginning June
			 25, 2021,
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
the
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.
d)
If it
			 is determined that the Department should issue a credit or refund
			 under
the
Act, the Department may first apply the amount
			 thereof against any amount of tax or penalty or interest due
thereunder
from the person entitled to such credit or refund. Any
			 credit memorandum issued under the Electricity Excise Tax Law may be applied
			 against any liability incurred under the tax previously imposed by Section 2
			 of
the Act
. For this purpose, if proceedings are pending to
			 determine whether or not any tax or penalty or interest is due under
the 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 as a result of such proceedings. The balance, if any, of the credit
			 or refund shall be issued to the person entitled thereto.
e)
If no tax or penalty or interest
			 is due and no proceeding is pending to determine whether such person is
			 indebted to the Department for tax or penalty or interest, 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
the Act
, and the amount thereof
			 shall be applied by the Department against any tax or penalty or interest due
			 or to become due under
the
Act from such
			 assignee.
f)
Claims for credit or refund shall be filed upon forms provided by the
			 Department. As soon as practicable after any claim for credit or refund is
			 filed, the Department shall examine the same and determine the amount of credit
			 or refund to which the claimant is entitled and shall notify the claimant of
			 such determination, which amount shall be prima facie correct.
Except
			 as otherwise provided by Section
			 510.110(b)(3),
any credit or refund that is allowed under
the
Act
			 shall bear interest at the rate and in the manner specified in the Uniform
			 Penalty and Interest Act.
[35 ILCS 620/6
			 ]
g) 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 will make such refunds only in hardship
			 cases (i.e., in cases in which the claimant cannot use a credit memorandum).
			 The two most likely situations where this would be the case are the situation
			 in which the claimant has discontinued business and the situation in which the
			 claimant will have a small volume of liability to the Department in the
			 foreseeable future, but receives a large credit memorandum which it therefore
			 might take the claimant a long time to liquidate by using it to pay current
			 taxes. In these instances, the claimant probably would have to sell the credit
			 memorandum at a loss in order to realize anything from it within any reasonable
			 period of time.