Illinois Administrative Code › Title 86 - REVENUE › Part 470 - GAS REVENUE TAX ACT › Section 470.140 - Claims to Recover Erroneously Paid Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) When a taxpayer has paid to the Department
			 any tax or penalty or interest not due under the provisions of the Act, either
			 as a result of a mistake of fact or an error of law, the taxpayer may file a
			 claim for credit on the form provided by the Department for that purpose and
			 available at
www.tax.illinois.gov
.
			 Upon receipt of the claim, the Department will examine the claim. Upon
			 approval, the Department will issue a credit memorandum in the amount of the
			 overpayment. The credit memorandum may be applied by the taxpayer to discharge
			 any liability for tax or penalty or interest due or to become due from the
			 taxpayer under the Act.
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 this 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
			 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.
[35 ILCS
			 615/6 ].
d) In no case may a taxpayer deduct, from the
			 amount of tax to be remitted as shown by a return made to the Department, the
			 amount of any overpayment of tax made during any prior period of time unless
			 that deduction is supported by a duly issued credit memorandum.
e) Credit memoranda issued to any taxpayer on
			 account of any overpayment of taxes or penalties or interest under any other
			 law shall not be used to discharge any liability for tax or penalty or interest
			 under the Act.
f) A credit
			 memorandum issued under the Act may (subject to reasonable rules of the
			 Department) be assigned by the person to whom the credit memorandum is issued
			 to any other taxpayer under the Act.
g) In case the Department determines that the
			 claimant is entitled to a refund, that refund shall be made only from the
			 appropriation available for that purpose. If it appears unlikely that the
			 amount appropriated would permit everyone having a claim allowed during the
			 period covered by that appropriation to elect to receive a cash refund, the
			 Department will make those refunds only in hardship cases (i.e., in cases in
			 which the claimant cannot use a credit memorandum). The two most likely
			 situations in which this would be the case are when the claimant has
			 discontinued business and when the claimant will have a small volume of
			 liability to the Department in the foreseeable future, but receives such a
			 large credit memorandum that it might take the claimant a long time to
			 liquidate it 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.