Illinois Administrative Code › Title 86 - REVENUE › Part 440 - CIGARETTE TAX ACT › Section 440.230 - Claims for Credit or Refund

Current through Register Vol. 48, No. 28, July 12, 2024
a) If
			 it appears, after claim is filed with the Department, that an amount of tax or
			 penalty has been paid that was not due under the Cigarette Tax Act, whether as
			 the result of a mistake of fact or an error of law, except as 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 its
			 legal representative.
b) If it is
			 determined that the Department should issue a credit or refund under the Act,
			 the Department may first apply the amount against any amount of tax or penalty
			 due under the Cigarette Tax Act or under the Cigarette Use Tax Act from the
			 person entitled to a credit or refund. For this purpose, if proceedings are
			 pending to determine whether or not any tax or penalty is due under the
			 Cigarette Tax Act or under the Cigarette Use Tax Act from a person, the
			 Department may withhold issuance of the credit or refund pending the final
			 disposition of the proceedings and may apply the credit or refund against any
			 amount found to be due to the Department under the Cigarette Tax Act or under
			 the Cigarette Use Tax Act as a result of the proceedings. The balance, if any,
			 of the credit or refund shall be issued to the person entitled.
c)
If no tax or penalty is due and no
			 proceeding is pending to determine whether a 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, subject to reasonable rules
			 of the Department, to any other person who is subject to the Cigarette Tax Act
			 or the Cigarette Use Tax Act, and the amount shall be applied by the Department
			 against any tax or penalty due or to become due under the Cigarette Tax Act or
			 under the Cigarette Use Tax Act from any assignee.
[35 ILCS
			 130/9d ]
d) As to any claim filed 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 January 1 and July 1, respectively, shall be
			 credited or refunded.
e) 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
			 130/9d ].
f) In case the Department determines that the
			 claimant is entitled to a refund, such refund shall be made only from an
			 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 an appropriation to elect to receive a cash refund, the
			 Department will make 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 a
			 large credit memorandum which it therefore might take the claimant a long time
			 to liquidate 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.
g) If the Department approves a claim for
			 credit for cigarette tax stamps, the Department (subject to the same
			 limitations as those provided for in this Section) may issue an assignable
			 credit memorandum or refund to the claimant or to the claimant's legal
			 representative.
h) The provisions
			 of Sections 6a, 6b, and 6c of the Retailers' Occupation Tax Act [35 ILCS
			 120/6a,
			 6 b and 6c] that are not inconsistent
			 with the Cigarette Tax Act shall apply, as far as practicable, to the subject
			 matter of this Section to the same extent as if the provisions were included in
			 the Cigarette Tax Act.