Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart M - CLAIMS TO RECOVER ERRONEOUSLY PAID TAX › Section 150.1420 - Verified Credit

Current through Register Vol. 48, No. 28, July 12, 2024
a) Verified
				credit. A verified credit is a specific type of credit arising under Section 3
				of the Retailers' Occupation Tax Act, which states:
If any payment provided for in this Section exceeds
				  the taxpayer's liabilities under this Act, the Use Tax Act, the Service
				  Occupation Tax Act and the Service Use Tax Act, as shown on an original monthly
				  return, the Department shall, if requested by the taxpayer, issue to the
				  taxpayer a credit memorandum no later than 30 days after the date of payment.
				  The credit evidenced by such credit memorandum may be assigned by the taxpayer
				  to a similar taxpayer under this Act, the Use Tax Act, the Service Occupation
				  Tax Act or the Service Use Tax Act, in accordance with reasonable rules and
				  regulations to be prescribed by the Department. If no such request is made, the
				  taxpayer may credit such excess payment against tax liability subsequently to
				  be remitted to the Department under this Act, the Use Tax Act, the Service
				  Occupation Tax Act or the Service Use Tax Act, in accordance with reasonable
				  rules and regulations prescribed by the Department. If the Department
				  subsequently determined that all or any part of the credit taken was not
				  actually due to the taxpayer, the taxpayer's 2.1% and
				  1.75 % vendor's discount shall
				  be reduced by 2.1% or 1.75% of the difference between the credit taken and that
				  actually due, and that taxpayer shall be liable for penalties and interest on
				  such difference.
[35 ILCS 120/3 ]
b) Verified credit - explanation -
				no interest paid. A verified credit is an amount of tax overpaid in a prior
				period that may be rolled over and applied to subsequent tax liabilities
				without the need to comply with the formalities involved in submitting a claim
				for credit. Since the taxpayer has the immediate use of the verified credit to
				apply against its liability without the need to file a claim for credit and
				prove the overpayment, interest is not paid on verified credits. (See 86 Ill.
				Adm. Code 700.230(a)(2)).
				Verified credits appear on a Taxpayer Statement listing a taxpayer's unpaid
				balance, available credits or returns not filed.
c) Verified credit - How used. A verified
				credit may be used by a taxpayer in only 3 ways:
1) It can be used to offset liability of the
				taxpayer that arises under this Act, the Retailers' Occupation Tax Act, the
				Service Occupation Tax Act, or the Service Use Tax Act subsequent to the
				origination of the verified credit;
2) It can be converted to a credit memorandum
				no later than 30 days after the date of overpayment, by making a request to the
				Department using forms prescribed by the Department and available at
https://tax.illinois.gov/
. See
				35 ILCS
				120/6a, for information required to be included.
				Interest is not paid on verified credits that are converted to credit memoranda
				in accordance with this subsection (c)(2); and
3) It can be converted to a credit memorandum
				at any time, starting 30 days after the date of over payment, by making a
				request to the Department using forms prescribed by the Department and
				available at
https://tax.illinois.gov/
, and without
				regard to the limitations on claims for refund. See 86 Ill. Adm. Code
				150.1401, for information on
				limitations and procedures. Interest is not paid on verified credits that are
				converted to credit memoranda in accordance with this subsection
				(c)(3).