Illinois Administrative Code › Title 86 - REVENUE › Part 660 - TOBACCO PRODUCTS TAX ACT OF 1995 › Section 660.35 - Claims for Credit

Current through Register Vol. 48, No. 28, July 12, 2024
a) If it
			 appears, after a claim is filed with the Department, that an amount of tax or
			 penalty has been paid that 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 incompetent, to his
			 legal representative, as such.
b)
			 If it is determined that the Department should issue a credit or refund under
			 the Act, the Department will first apply the amount thereof against any amount
			 of tax or penalty due under the Act from the person entitled to such credit or
			 refund. For this purpose, if proceedings are pending to determine whether any
			 tax or penalty 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 under the Act as a result of such proceedings. The
			 balance, if any, of the credit or refund shall be issued to the person entitled
			 thereto.
c) If no tax or penalty is
			 due and no proceeding is pending to determine whether such taxpayer is indebted
			 to the Department for tax or penalty, 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 due or to become due under the Act from such assignee.
d) As to any claim filed under this Section
			 with the Department on and after each January 1 and July 1, no amount of tax or
			 penalty erroneously paid (either in total or partial liquidation of a tax or
			 penalty under the Act) more than 3 years prior to that January 1 or July 1,
			 respectively, shall be credited or refunded.
e) In case the Department determines that the
			 claimant is entitled to a refund, the 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 these 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 such a large credit memorandum that it might take the claimant a long
			 time to liquidate the memorandum 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.
f)
All of the
			 provisions of Sections 6, 6a, and 6b of the Retailers' Occupation Tax
			 Act
regarding credit memoranda, claims and refunds that are not
			 inconsistent with the Act
, apply to distributors of tobacco products to
			 the same extent as if those provisions were included in the Act. References in
			 the incorporated Sections of the Retailers' Occupation Tax Act to retailers, to
			 sellers, or to persons engaged in the business of selling tangible personal
			 property mean distributors when used in the Act. References in the incorporated
			 Sections to sales of tangible personal property mean sales of tobacco products
			 when used in the Act.
[35 ILCS
			 143/10-45 ]