Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.151 - 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 also, 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 Service Occupation Tax Act, the
			 Retailers' Occupation Tax Act or the 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 made to the Department using forms prescribed
			 by the Department and available at
www.tax.illinois.gov
. See
			 35 ILCS
			 120/6a, for information 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 overpayment, by making a
			 request to the Department using forms prescribed by the Department and
			 available at
www.tax.illinois.gov
,
			 and without regard to the limitations on claims for refund. See also 86 Ill.
			 Adm. Code
			 160.150 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).