Illinois Administrative Code › Title 86 - REVENUE › Part 450 - CIGARETTE USE TAX ACT › Section 450.120 - 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 Use Tax 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 the person's 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 Use Tax
			 Act or under the Cigarette Tax Act from the person entitled to the credit or
			 refund. For this purpose, if proceedings are pending to determine whether or
			 not any tax or penalty is due under the Cigarette Use Tax Act or under the
			 Cigarette Tax Act from the 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 Use Tax Act or under the Cigarette 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 the
			 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) 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 Use Tax Act or the Cigarette Tax Act, and the amount thereof
			 shall be applied by the Department against any tax or penalty due or to become
			 due under the Cigarette Use Tax Act or under the Cigarette Tax Act from the
			 assignee.
[35 ILCS 135/14a ]
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 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
			 135/14a ].
f) In case the Department determines that the
			 claimant is entitled to a refund, the refund shall be made only from the
			 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 the 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 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 regulation) 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, that are not
			 inconsistent with the Cigarette Use Tax Act, shall apply, as far as
			 practicable, to the subject matter of this Part to the same extent as if such
			 provisions were included in the Cigarette Use Tax Act.