Public Act 098-0970
 
SB3334 EnrolledLRB098 19711 HLH 54922 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Income Tax Act is amended by
changing Section 911 as follows:
 
    (35 ILCS 5/911)  (from Ch. 120, par. 9-911)
    Sec. 911. Limitations on Claims for Refund.
    (a) In general. Except as otherwise provided in this Act:
        (1) A claim for refund shall be filed not later than 3
    years after the date the return was filed (in the case of
    returns required under Article 7 of this Act respecting any
    amounts withheld as tax, not later than 3 years after the
    15th day of the 4th month following the close of the
    calendar year in which such withholding was made), or one
    year after the date the tax was paid, whichever is the
    later; and
        (2) No credit or refund shall be allowed or made with
    respect to the year for which the claim was filed unless
    such claim is filed within such period.
    (b) Federal changes.
        (1) In general. In any case where notification of an
    alteration is required by Section 506(b), a claim for
    refund may be filed within 2 years after the date on which
    such notification was due (regardless of whether such
    notice was given), but the amount recoverable pursuant to a
    claim filed under this Section shall be limited to the
    amount of any overpayment resulting under this Act from
    recomputation of the taxpayer's net income, net loss, or
    Article 2 credits for the taxable year after giving effect
    to the item or items reflected in the alteration required
    to be reported.
        (2) Tentative carryback adjustments paid before
    January 1, 1974. If, as the result of the payment before
    January 1, 1974 of a federal tentative carryback
    adjustment, a notification of an alteration is required
    under Section 506(b), a claim for refund may be filed at
    any time before January 1, 1976, but the amount recoverable
    pursuant to a claim filed under this Section shall be
    limited to the amount of any overpayment resulting under
    this Act from recomputation of the taxpayer's base income
    for the taxable year after giving effect to the federal
    alteration resulting from the tentative carryback
    adjustment irrespective of any limitation imposed in
    paragraph (l) of this subsection.
    (c) Extension by agreement. Where, before the expiration of
the time prescribed in this section for the filing of a claim
for refund, both the Department and the claimant shall have
consented in writing to its filing after such time, such claim
may be filed at any time prior to the expiration of the period
agreed upon. The period so agreed upon may be extended by
subsequent agreements in writing made before the expiration of
the period previously agreed upon. In the case of a taxpayer
who is a partnership, Subchapter S corporation, or trust and
who enters into an agreement with the Department pursuant to
this subsection on or after January 1, 2003, a claim for refund
may be filed by the partners, shareholders, or beneficiaries of
the taxpayer at any time prior to the expiration of the period
agreed upon. Any refund allowed pursuant to the claim, however,
shall be limited to the amount of any overpayment of tax due
under this Act that results from recomputation of items of
income, deduction, credits, or other amounts of the taxpayer
that are taken into account by the partner, shareholder, or
beneficiary in computing its liability under this Act.
    (d) Limit on amount of credit or refund.
        (1) Limit where claim filed within 3-year period. If
    the claim was filed by the claimant during the 3-year
    period prescribed in subsection (a), the amount of the
    credit or refund shall not exceed the portion of the tax
    paid within the period, immediately preceding the filing of
    the claim, equal to 3 years plus the period of any
    extension of time for filing the return.
        (2) Limit where claim not filed within 3-year period.
    If the claim was not filed within such 3-year period, the
    amount of the credit or refund shall not exceed the portion
    of the tax paid during the one year immediately preceding
    the filing of the claim.
    (e) Time return deemed filed. For purposes of this section
a tax return filed before the last day prescribed by law for
the filing of such return (including any extensions thereof)
shall be deemed to have been filed on such last day.
    (f) No claim for refund or credit based on the taxpayer's
taking a credit for estimated tax payments as provided by
Section 601(b)(2) or for any amount paid by a taxpayer pursuant
to Section 602(a) or for any amount of credit for tax withheld
pursuant to Article 7 may be filed unless a return was filed
for the tax year not more than 3 years after the due date, as
provided by Section 505, of the return which was required to be
filed relative to the taxable year for which the payments were
made or for which the tax was withheld. The changes in this
subsection (f) made by this amendatory Act of 1987 shall apply
to all taxable years ending on or after December 31, 1969.
    (g) Special Period of Limitation with Respect to Net Loss
Carrybacks. If the claim for refund relates to an overpayment
attributable to a net loss carryback as provided by Section
207, in lieu of the 3 year period of limitation prescribed in
subsection (a), the period shall be that period which ends 3
years after the time prescribed by law for filing the return
(including extensions thereof) for the taxable year of the net
loss which results in such carryback (or, on and after August
13, 1999, with respect to a change in the carryover of an
Article 2 credit to a taxable year resulting from the carryback
of a Section 207 loss incurred in a taxable year beginning on
or after January 1, 2000, the period shall be that period that
ends 3 years after the time prescribed by law for filing the
return (including extensions of that time) for that subsequent
taxable year), or the period prescribed in subsection (c) in
respect of such taxable year, whichever expires later. In the
case of such a claim, the amount of the refund may exceed the
portion of the tax paid within the period provided in
subsection (d) to the extent of the amount of the overpayment
attributable to such carryback. On and after August 13, 1999,
if the claim for refund relates to an overpayment attributable
to the carryover of an Article 2 credit, or of a Section 207
loss, earned, incurred (in a taxable year beginning on or after
January 1, 2000), or used in a year for which a notification of
a change affecting federal taxable income must be filed under
subsection (b) of Section 506, the claim may be filed within
the period prescribed in paragraph (1) of subsection (b) in
respect of the year for which the notification is required. In
the case of such a claim, the amount of the refund may exceed
the portion of the tax paid within the period provided in
subsection (d) to the extent of the amount of the overpayment
attributable to the recomputation of the taxpayer's Article 2
credits, or Section 207 loss, earned, incurred, or used in the
taxable year for which the notification is given.
    (h) Claim for refund based on net loss. On and after August
23, 2002, no claim for refund shall be allowed to the extent
the refund is the result of an amount of net loss incurred in
any taxable year ending prior to December 31, 2002 under
Section 207 of this Act that was not reported to the Department
within 3 years of the due date (including extensions) of the
return for the loss year on either the original return filed by
the taxpayer or on amended return or to the extent that the
refund is the result of an amount of net loss incurred in any
taxable year under Section 207 for which no return was filed
within 3 years of the due date (including extensions) of the
return for the loss year.
    (i) Periods of limitation suspended while taxpayer is
unable to manage financial affairs due to disability. In the
case of an individual, the running of the periods specified in
this Section shall be suspended during any period when that
individual is financially disabled.
    For purposes of this subsection (i), an individual is
financially disabled if that individual is unable to manage his
or her financial affairs by reason of a medically determinable
physical or mental impairment of the individual that can be
expected to result in death, or which has lasted or can be
expected to last for a continuous period of not less than 12
months.
    An individual shall not be treated as financially disabled
during any period when that individual's spouse or any other
person is authorized to act on behalf of that individual with
respect to financial matters.
(Source: P.A. 97-507, eff. 8-23-11.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.