Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.150 - Claims To Recover Erroneously Paid Tax - Limitations - Procedures

Current through Register Vol. 48, No. 28, July 12, 2024
a) Limitations Upon
			 Claims
1) If it shall appear that an amount
			 of tax or penalty or interest has been paid in error under the Service Use Tax
			 Act to the Department by a purchaser, as distinguished from the serviceman,
			 whether the amount be paid through a mistake of fact or an error of law, the
			 purchaser may file a claim for credit with the Department.
2) If it shall appear that an amount of tax
			 or penalty or interest has been paid in error to the Department under the
			 Service Use Tax Act by a serviceman who is required or authorized to collect
			 and remit the Service Use Tax, whether the amount be paid through a mistake of
			 fact or an error of law, the serviceman may file a claim for credit with the
			 Department, provided that no credit shall be allowed for any amount paid by any
			 such serviceman unless it shall appear that he bore the burden of the amount
			 and did not shift the burden to anyone else (as in the case of a duplicated tax
			 payment which the serviceman made to the Department and did not collect from
			 anyone else), or unless it shall appear that he or his legal representative has
			 unconditionally repaid the amount to his vendee:
A) Who bore the burden and has not shifted
			 the burden directly or indirectly in any manner whatsoever;
B) who, if he has shifted the burden, has
			 repaid unconditionally the amount to his own vendee, and
C) who is not entitled to receive any
			 reimbursement therefor from any other source than from his vendor, nor to be
			 relieved of the burden in any other manner whatsoever.
Claimant will be considered to have satisfied the unconditional
				repayment requirement where it provides its purchaser with an instrument upon
				which the customer can make a demand upon claimant for payment of the tax
				recovered if the claim is allowed. The claimant's provision of unconditional
				promissory notes or irrevocable credit memoranda to its purchasers who paid tax
				in error would satisfy this requirement. The purpose of requiring the claimant
				to make an unconditional repayment to its purchasers is to prevent unjust
				enrichment on the part of the claimant. Therefore, in order to establish that
				it was not unjustly enriched, the claimant filing a claim for credit must be
				able to demonstrate that it gave unconditional promissory notes or irrevocable
				credit memoranda to its purchasers who paid tax in error to the
				claimant.
3) If
			 it shall appear that an amount of tax has been paid in error under the Service
			 Use Tax Act by the purchaser to a serviceman, who retained the tax as
			 reimbursement for his tax liability on the same sale under the Service
			 Occupation Tax Act, and who remitted the amount involved to the Department
			 under the Service Occupation Tax Act, whether the amount be paid through a
			 mistake of fact or an error of law, the procedure for recovering the tax shall
			 be that prescribed in Sections 17, 18 and 20 of the Service Occupation Tax
			 Act.
4) As to any claim for credit
			 filed with the Department on and after January 1 but on or before June 30 of
			 any given year, no amount of tax or penalty or interest erroneously paid
			 (either in total or partial liquidation of a tax or penalty or amount of
			 interest under the Service Use Tax Act) more than 3 years prior to such January
			 1 shall be credited, and as to any claim filed on and after July 1 but on or
			 before December 31 of any given year, no amount of tax or penalty or interest
			 erroneously paid (either in total or partial liquidation of a tax or penalty or
			 amount of interest under the Service Use Tax Act) more than 3 years prior to
			 the July 1 shall be credited.
5) No
			 claim shall be allowed for any amount paid to the Department, whether paid
			 voluntarily or involuntarily, if paid in total or partial liquidation of an
			 assessment which had become final before the claim for credit to recover the
			 amount so paid is filed with the Department, or if paid in total or partial
			 liquidation of a judgment, order or decree of court.