Full Text of HB5564 98th General Assembly
HB5564 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB5564 Introduced , by Rep. Carol A. Sente SYNOPSIS AS INTRODUCED: |
| 35 ILCS 5/909 | from Ch. 120, par. 9-909 |
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Amends the Illinois Income Tax Act. Provides that the Department of Revenue shall include on each income tax return, including any amended return and any installment of estimated taxes, a provision allowing the taxpayer to elect to apply all or a portion of the refund due to the taxpayer as a result of an overpayment made in that taxable period to the taxpayer's tax liability in any subsequent taxable period. Provides that the election shall be irrevocable.
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by | 5 | | changing Section 909 as follows:
| 6 | | (35 ILCS 5/909) (from Ch. 120, par. 9-909)
| 7 | | Sec. 909. Credits and Refunds.
| 8 | | (a) In general. In the case of any overpayment, the | 9 | | Department, within the applicable period of limitations for a | 10 | | claim for refund, may
credit the amount of such overpayment, | 11 | | including any interest allowed
thereon, against any liability | 12 | | in respect of the tax imposed by this Act,
regardless of | 13 | | whether other collection remedies are closed to the
Department | 14 | | on the part of the person who made the overpayment and shall
| 15 | | refund any balance to such person.
| 16 | | (a-5) Notwithstanding any other provision of law, the | 17 | | Department shall include on each income tax return, including | 18 | | any amended return and any installment of estimated taxes, a | 19 | | provision allowing the taxpayer to elect to apply all or a | 20 | | portion of the refund due to the taxpayer as a result of an | 21 | | overpayment made in that taxable period to the taxpayer's tax | 22 | | liability in any subsequent taxable period. Once made, the | 23 | | election shall be irrevocable. The Department shall apply the |
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| 1 | | amount of the refund to the taxpayer's subsequent tax liability | 2 | | as indicated on the return. A taxpayer that elects to apply his | 3 | | or her refund to a subsequent taxable period shall not be | 4 | | entitled to interest on the amounts so applied. | 5 | | (b) Credits against estimated tax. The Department may
| 6 | | prescribe regulations providing for the crediting against the | 7 | | estimated tax
for any taxable year of the amount determined by | 8 | | the taxpayer or the
Department to be an overpayment of the tax | 9 | | imposed by this Act for a
preceding taxable year.
| 10 | | (c) Interest on overpayment. Interest shall be allowed and | 11 | | paid at the
rate and in the manner prescribed in Section 3-2 of | 12 | | the Uniform Penalty and
Interest Act upon any overpayment in | 13 | | respect of the tax imposed by this
Act. For purposes of this | 14 | | subsection, no amount of tax, for any taxable
year, shall be | 15 | | treated as having been paid before the date on which the tax
| 16 | | return for such year was due under Section 505, without regard | 17 | | to any
extension of the time for filing such return.
| 18 | | (d) Refund claim. Every claim for refund shall be filed | 19 | | with the
Department in writing in such form as the Department | 20 | | may by regulations
prescribe, and shall state the specific | 21 | | grounds upon which it is founded.
| 22 | | (e) Notice of denial. As soon as practicable after a claim | 23 | | for refund
is filed, the Department shall examine it and either | 24 | | issue a notice of
refund, abatement or credit to the claimant | 25 | | or issue a notice of denial.
If the Department has failed to | 26 | | approve or deny the claim before the
expiration of 6 months |
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| 1 | | from the date the claim was filed, the claimant may
| 2 | | nevertheless thereafter file with the Department a written | 3 | | protest in such
form as the Department may by regulation | 4 | | prescribe, provided that, on or after July 1, 2013, protests | 5 | | concerning matters that are subject to the jurisdiction of the | 6 | | Illinois Independent Tax Tribunal shall be filed with the | 7 | | Illinois Independent Tax Tribunal and not with the Department. | 8 | | If the protest is subject to the jurisdiction of the | 9 | | Department,
the Department shall consider the claim and, if the | 10 | | taxpayer has so
requested, shall grant the taxpayer or the | 11 | | taxpayer's authorized
representative a hearing within 6 months | 12 | | after the date such request is filed.
| 13 | | On and after July 1, 2013, if the protest would otherwise | 14 | | be subject to the jurisdiction of the Illinois Independent Tax | 15 | | Tribunal, the claimant may elect to treat the Department's | 16 | | non-action as a denial of the claim by filing a petition to | 17 | | review the Department's administrative decision with the | 18 | | Illinois Independent Tax Tribunal, as provided by Section 910. | 19 | | (f) Effect of denial. A denial of a claim for refund | 20 | | becomes final 60
days after the date of issuance of the notice | 21 | | of such denial except for
such amounts denied as to which the | 22 | | claimant has filed a protest with the
Department or a petition | 23 | | with the Illinois Independent Tax Tribunal, as provided by | 24 | | Section 910.
| 25 | | (g) An overpayment of tax shown on the face of an unsigned | 26 | | return
shall be considered forfeited to the State if after |
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| 1 | | notice and demand for
signature by the Department the taxpayer | 2 | | fails to provide a signature and 3
years have passed from the | 3 | | date the return was filed.
An overpayment of tax refunded to a | 4 | | taxpayer whose return was filed
electronically shall be | 5 | | considered an erroneous refund under Section 912 of
this Act | 6 | | if, after proper notice and demand by the
Department, the | 7 | | taxpayer fails to provide a required signature document.
A | 8 | | notice and demand for signature in the case of a return | 9 | | reflecting an
overpayment may be made by first class mail. This | 10 | | subsection (g) shall apply
to all returns filed pursuant to | 11 | | this Act since 1969.
| 12 | | (h) This amendatory Act of 1983 applies to returns and | 13 | | claims for
refunds filed with the Department on and after July | 14 | | 1, 1983.
| 15 | | (Source: P.A. 97-507, eff. 8-23-11; 97-1129, eff. 8-28-12; | 16 | | 98-463, eff. 8-16-13.)
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