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90_SB0856
SEE INDEX
Amends the Civil Administrative Code to allow the
Department of Revenue, upon certification of past due child
support, to collect the delinquency in any manner authorized
for the collection of any tax administered by the Department
(now only delinquent personal income tax). Amends the State
Finance Act to provide that a retail sale by a producer of
coal or other mineral is a sale at retail where it is
extracted from the earth. Amends the Illinois Income Tax Act.
In the definition of base income, deletes real estate
investment trusts from the language concerning the
modification of taxable income for a corporation. Provides
that in the case of a trust, unspecified items of income or
deductions taken into account in computing base income and
not otherwise allocated shall be allocated to the State if
the taxpayer had commercial domicile in the State when the
item was paid, incurred, or accrued (now shall not be
allocated to State). Amends the Use Tax Act, the Service Use
Tax Act, the Service Occupation Tax Act, and the Retailers'
Occupation Tax Act to require that a protest to the Notice of
Tentative Determination of Claim be filed within 60 days (now
20 days). Amends the Cigarette Tax Act, the Cigarette Use Tax
Act, the Messages Tax Act, the Gas Revenue Tax Act, the
Public Utilities Revenue Act, the Water Company Invested
Capital Tax Act, and the Telecommunications Excise Tax Act to
provide that if both the Department and the taxpayer have
agreed to an extension of time to issue a notice of tax
liability, a claim for credit or refund may be filed at any
time prior to the expiration of the agreed upon period.
Amends the Senior Citizens and Disabled Persons Property Tax
Relief and Pharmaceutical Assistance Act to include in the
list of factors used to determine "income" an amount equal to
any net operating loss carryover deduction or capital loss
carryover deduction taken during the taxable year. Makes
other changes. Effective immediately.
LRB9000732KDcbA
LRB9000732KDcbA
1 AN ACT in relation to taxes, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Civil Administrative Code of Illinois is
5 amended by changing Section 39b52 as follows:
6 (20 ILCS 2505/39b52)
7 Sec. 39b52. Collection of past due support. Upon
8 certification of past due child support amounts from the
9 Department of Public Aid, the Department of Revenue may
10 collect the delinquency in any manner authorized for the
11 collection of any tax administered by the Department of
12 Revenue a delinquent personal income tax liability. The
13 Department of Revenue shall notify the Department of Public
14 Aid when the delinquency or any portion of the delinquency
15 has been collected under this Section. Any child support
16 delinquency collected by the Department of Revenue, including
17 those amounts that result in overpayment of a child support
18 delinquency, shall be deposited in, or transferred to, the
19 Child Support Enforcement Trust Fund. The Department of
20 Revenue may implement this Section through the use of
21 emergency rules in accordance with Section 5-45 of the
22 Illinois Administrative Procedure Act. For purposes of the
23 Illinois Administrative Procedure Act, the adoption of rules
24 to implement this Section shall be considered an emergency
25 and necessary for the public interest, safety, and welfare.
26 (Source: P.A. 89-6, eff. 12-31-95.)
27 Section 10. The State Finance Act is amended by changing
28 Sections 6z-18 and 6z-20 as follows:
29 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
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1 Sec. 6z-18. A portion of the money paid into the Local
2 Government Tax Fund from sales of food for human consumption
3 which is to be consumed off the premises where it is sold
4 (other than alcoholic beverages, soft drinks and food which
5 has been prepared for immediate consumption) and prescription
6 and nonprescription medicines, drugs, medical appliances and
7 insulin, urine testing materials, syringes and needles used
8 by diabetics, which occurred in municipalities, shall be
9 distributed to each municipality based upon the sales which
10 occurred in that municipality. The remainder shall be
11 distributed to each county based upon the sales which
12 occurred in the unincorporated area of that county.
13 A portion of the money paid into the Local Government Tax
14 Fund from the 6.25% general use tax rate on the selling price
15 of tangible personal property which is purchased outside
16 Illinois at retail from a retailer and which is titled or
17 registered by any agency of this State's government shall be
18 distributed to municipalities as provided in this paragraph.
19 Each municipality shall receive the amount attributable to
20 sales for which Illinois addresses for titling or
21 registration purposes are given as being in such
22 municipality. The remainder of the money paid into the Local
23 Government Tax Fund from such sales shall be distributed to
24 counties. Each county shall receive the amount attributable
25 to sales for which Illinois addresses for titling or
26 registration purposes are given as being located in the
27 unincorporated area of such county.
28 A portion of the money paid into the Local Government Tax
29 Fund from the 6.25% general rate on sales subject to taxation
30 under the Retailers' Occupation Tax Act and the Service
31 Occupation Tax Act, which occurred in municipalities, shall
32 be distributed to each municipality, based upon the sales
33 which occurred in that municipality. The remainder shall be
34 distributed to each county, based upon the sales which
-3- LRB9000732KDcbA
1 occurred in the unincorporated area of such county.
2 For the purpose of determining allocation to the local
3 government unit, a retail sale by a producer of coal or other
4 mineral mined in Illinois is a sale at retail at the place
5 where the coal or other mineral mined in Illinois is
6 extracted from the earth. This paragraph does not apply to
7 coal or other mineral when it is delivered or shipped by the
8 seller to the purchaser at a point outside Illinois so that
9 the sale is exempt under the United States Constitution as a
10 sale in interstate or foreign commerce.
11 Whenever the Department determines that a refund of money
12 paid into the Local Government Tax Fund should be made to a
13 claimant instead of issuing a credit memorandum, the
14 Department shall notify the State Comptroller, who shall
15 cause the order to be drawn for the amount specified, and to
16 the person named, in such notification from the Department.
17 Such refund shall be paid by the State Treasurer out of the
18 Local Government Tax Fund.
19 On or before the 25th day of each calendar month, the
20 Department shall prepare and certify to the Comptroller the
21 disbursement of stated sums of money to named municipalities
22 and counties, the municipalities and counties to be those
23 entitled to distribution of taxes or penalties paid to the
24 Department during the second preceding calendar month. The
25 amount to be paid to each municipality or county shall be the
26 amount (not including credit memoranda) collected during the
27 second preceding calendar month by the Department and paid
28 into the Local Government Tax Fund, plus an amount the
29 Department determines is necessary to offset any amounts
30 which were erroneously paid to a different taxing body, and
31 not including an amount equal to the amount of refunds made
32 during the second preceding calendar month by the Department,
33 and not including any amount which the Department determines
34 is necessary to offset any amounts which are payable to a
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1 different taxing body but were erroneously paid to the
2 municipality or county. Within 10 days after receipt, by the
3 Comptroller, of the disbursement certification to the
4 municipalities and counties, provided for in this Section to
5 be given to the Comptroller by the Department, the
6 Comptroller shall cause the orders to be drawn for the
7 respective amounts in accordance with the directions
8 contained in such certification.
9 When certifying the amount of monthly disbursement to a
10 municipality or county under this Section, the Department
11 shall increase or decrease that amount by an amount necessary
12 to offset any misallocation of previous disbursements. The
13 offset amount shall be the amount erroneously disbursed
14 within the 6 months preceding the time a misallocation is
15 discovered.
16 The provisions directing the distributions from the
17 special fund in the State Treasury provided for in this
18 Section shall constitute an irrevocable and continuing
19 appropriation of all amounts as provided herein. The State
20 Treasurer and State Comptroller are hereby authorized to make
21 distributions as provided in this Section.
22 In construing any development, redevelopment, annexation,
23 preannexation or other lawful agreement in effect prior to
24 September 1, 1990, which describes or refers to receipts from
25 a county or municipal retailers' occupation tax, use tax or
26 service occupation tax which now cannot be imposed, such
27 description or reference shall be deemed to include the
28 replacement revenue for such abolished taxes, distributed
29 from the Local Government Tax Fund.
30 (Source: P.A. 86-928; 86-1481.)
31 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
32 Sec. 6z-20. Of the money received from the 6.25% general
33 rate on sales subject to taxation under the Retailers'
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1 Occupation Tax Act and Service Occupation Tax Act and paid
2 into the County and Mass Transit District Fund, distribution
3 to the Regional Transportation Authority tax fund, created
4 pursuant to Section 4.03 of the Regional Transportation
5 Authority Act, for deposit therein shall be made based upon
6 the retail sales occurring in a county having more than
7 3,000,000 inhabitants. The remainder shall be distributed to
8 each county having 3,000,000 or fewer inhabitants based upon
9 the retail sales occurring in each such county.
10 For the purpose of determining allocation to the local
11 government unit, a retail sale by a producer of coal or other
12 mineral mined in Illinois is a sale at retail at the place
13 where the coal or other mineral mined in Illinois is
14 extracted from the earth. This paragraph does not apply to
15 coal or other mineral when it is delivered or shipped by the
16 seller to the purchaser at a point outside Illinois so that
17 the sale is exempt under the United States Constitution as a
18 sale in interstate or foreign commerce.
19 Of the money received from the 6.25% general use tax rate
20 on tangible personal property which is purchased outside
21 Illinois at retail from a retailer and which is titled or
22 registered by any agency of this State's government and paid
23 into the County and Mass Transit District Fund, the amount
24 for which Illinois addresses for titling or registration
25 purposes are given as being in each county having more than
26 3,000,000 inhabitants shall be distributed into the Regional
27 Transportation Authority tax fund, created pursuant to
28 Section 4.03 of the Regional Transportation Authority Act.
29 The remainder of the money paid from such sales shall be
30 distributed to each county based on sales for which Illinois
31 addresses for titling or registration purposes are given as
32 being located in the county. Any money paid into the
33 Regional Transportation Authority Occupation and Use Tax
34 Replacement Fund from the County and Mass Transit District
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1 Fund prior to January 14, 1991, which has not been paid to
2 the Authority prior to that date, shall be transferred to the
3 Regional Transportation Authority tax fund.
4 Whenever the Department determines that a refund of money
5 paid into the County and Mass Transit District Fund should be
6 made to a claimant instead of issuing a credit memorandum,
7 the Department shall notify the State Comptroller, who shall
8 cause the order to be drawn for the amount specified, and to
9 the person named, in such notification from the Department.
10 Such refund shall be paid by the State Treasurer out of the
11 County and Mass Transit District Fund.
12 On or before the 25th day of each calendar month, the
13 Department shall prepare and certify to the Comptroller the
14 disbursement of stated sums of money to the Regional
15 Transportation Authority and to named counties, the counties
16 to be those entitled to distribution, as hereinabove
17 provided, of taxes or penalties paid to the Department during
18 the second preceding calendar month. The amount to be paid
19 to the Regional Transportation Authority and each county
20 having 3,000,000 or fewer inhabitants shall be the amount
21 (not including credit memoranda) collected during the second
22 preceding calendar month by the Department and paid into the
23 County and Mass Transit District Fund, plus an amount the
24 Department determines is necessary to offset any amounts
25 which were erroneously paid to a different taxing body, and
26 not including an amount equal to the amount of refunds made
27 during the second preceding calendar month by the Department,
28 and not including any amount which the Department determines
29 is necessary to offset any amounts which were payable to a
30 different taxing body but were erroneously paid to the
31 Regional Transportation Authority or county. Within 10 days
32 after receipt, by the Comptroller, of the disbursement
33 certification to the Regional Transportation Authority and
34 counties, provided for in this Section to be given to the
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1 Comptroller by the Department, the Comptroller shall cause
2 the orders to be drawn for the respective amounts in
3 accordance with the directions contained in such
4 certification.
5 When certifying the amount of a monthly disbursement to
6 the Regional Transportation Authority or to a county under
7 this Section, the Department shall increase or decrease that
8 amount by an amount necessary to offset any misallocation of
9 previous disbursements. The offset amount shall be the
10 amount erroneously disbursed within the 6 months preceding
11 the time a misallocation is discovered.
12 The provisions directing the distributions from the
13 special fund in the State Treasury provided for in this
14 Section and from the Regional Transportation Authority tax
15 fund created by Section 4.03 of the Regional Transportation
16 Authority Act shall constitute an irrevocable and continuing
17 appropriation of all amounts as provided herein. The State
18 Treasurer and State Comptroller are hereby authorized to make
19 distributions as provided in this Section.
20 In construing any development, redevelopment, annexation,
21 preannexation or other lawful agreement in effect prior to
22 September 1, 1990, which describes or refers to receipts from
23 a county or municipal retailers' occupation tax, use tax or
24 service occupation tax which now cannot be imposed, such
25 description or reference shall be deemed to include the
26 replacement revenue for such abolished taxes, distributed
27 from the County and Mass Transit District Fund or Local
28 Government Distributive Fund, as the case may be.
29 (Source: P.A. 86-928; 86-1481; 87-435.)
30 Section 15. The Illinois Income Tax Act is amended by
31 changing Sections 203, 301, 506, 905, 911, and 1501 as
32 follows:
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1 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
2 Sec. 203. Base income defined.
3 (a) Individuals.
4 (1) In general. In the case of an individual, base
5 income means an amount equal to the taxpayer's adjusted
6 gross income for the taxable year as modified by
7 paragraph (2).
8 (2) Modifications. The adjusted gross income
9 referred to in paragraph (1) shall be modified by adding
10 thereto the sum of the following amounts:
11 (A) An amount equal to all amounts paid or
12 accrued to the taxpayer as interest or dividends
13 during the taxable year to the extent excluded from
14 gross income in the computation of adjusted gross
15 income, except stock dividends of qualified public
16 utilities described in Section 305(e) of the
17 Internal Revenue Code;
18 (B) An amount equal to the amount of tax
19 imposed by this Act to the extent deducted from
20 gross income in the computation of adjusted gross
21 income for the taxable year;
22 (C) An amount equal to the amount received
23 during the taxable year as a recovery or refund of
24 real property taxes paid with respect to the
25 taxpayer's principal residence under the Revenue Act
26 of 1939 and for which a deduction was previously
27 taken under subparagraph (L) of this paragraph (2)
28 prior to July 1, 1991, the retrospective application
29 date of Article 4 of Public Act 87-17. In the case
30 of multi-unit or multi-use structures and farm
31 dwellings, the taxes on the taxpayer's principal
32 residence shall be that portion of the total taxes
33 for the entire property which is attributable to
34 such principal residence;
-9- LRB9000732KDcbA
1 (D) An amount equal to the amount of the
2 capital gain deduction allowable under the Internal
3 Revenue Code, to the extent deducted from gross
4 income in the computation of adjusted gross income;
5 and
6 (D-5) An amount, to the extent not included in
7 adjusted gross income, equal to the amount of money
8 withdrawn by the taxpayer in the taxable year from a
9 medical care savings account and the interest earned
10 on the account in the taxable year of a withdrawal
11 pursuant to subsection (b) of Section 20 of the
12 Medical Care Savings Account Act;
13 and by deducting from the total so obtained the sum of
14 the following amounts:
15 (E) Any amount included in such total in
16 respect of any compensation (including but not
17 limited to any compensation paid or accrued to a
18 serviceman while a prisoner of war or missing in
19 action) paid to a resident by reason of being on
20 active duty in the Armed Forces of the United States
21 and in respect of any compensation paid or accrued
22 to a resident who as a governmental employee was a
23 prisoner of war or missing in action, and in respect
24 of any compensation paid to a resident in 1971 or
25 thereafter for annual training performed pursuant to
26 Sections 502 and 503, Title 32, United States Code
27 as a member of the Illinois National Guard;
28 (F) An amount equal to all amounts included in
29 such total pursuant to the provisions of Sections
30 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
31 408 of the Internal Revenue Code, or included in
32 such total as distributions under the provisions of
33 any retirement or disability plan for employees of
34 any governmental agency or unit, or retirement
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1 payments to retired partners, which payments are
2 excluded in computing net earnings from self
3 employment by Section 1402 of the Internal Revenue
4 Code and regulations adopted pursuant thereto;
5 (G) The valuation limitation amount;
6 (H) An amount equal to the amount of any tax
7 imposed by this Act which was refunded to the
8 taxpayer and included in such total for the taxable
9 year;
10 (I) An amount equal to all amounts included in
11 such total pursuant to the provisions of Section 111
12 of the Internal Revenue Code as a recovery of items
13 previously deducted from adjusted gross income in
14 the computation of taxable income;
15 (J) An amount equal to those dividends
16 included in such total which were paid by a
17 corporation which conducts business operations in an
18 Enterprise Zone or zones created under the Illinois
19 Enterprise Zone Act, and conducts substantially all
20 of its operations in an Enterprise Zone or zones;
21 (K) An amount equal to those dividends
22 included in such total that were paid by a
23 corporation that conducts business operations in a
24 federally designated Foreign Trade Zone or Sub-Zone
25 and that is designated a High Impact Business
26 located in Illinois; provided that dividends
27 eligible for the deduction provided in subparagraph
28 (J) of paragraph (2) of this subsection shall not be
29 eligible for the deduction provided under this
30 subparagraph (K);
31 (L) For taxable years ending after December
32 31, 1983, an amount equal to all social security
33 benefits and railroad retirement benefits included
34 in such total pursuant to Sections 72(r) and 86 of
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1 the Internal Revenue Code;
2 (M) With the exception of any amounts
3 subtracted under subparagraph (N), an amount equal
4 to the sum of all amounts disallowed as deductions
5 by Sections 171(a) (2), and 265(2) of the Internal
6 Revenue Code of 1954, as now or hereafter amended,
7 and all amounts of expenses allocable to interest
8 and disallowed as deductions by Section 265(1) of
9 the Internal Revenue Code of 1954, as now or
10 hereafter amended;
11 (N) An amount equal to all amounts included in
12 such total which are exempt from taxation by this
13 State either by reason of its statutes or
14 Constitution or by reason of the Constitution,
15 treaties or statutes of the United States; provided
16 that, in the case of any statute of this State that
17 exempts income derived from bonds or other
18 obligations from the tax imposed under this Act, the
19 amount exempted shall be the interest net of bond
20 premium amortization;
21 (O) An amount equal to any contribution made
22 to a job training project established pursuant to
23 the Tax Increment Allocation Redevelopment Act;
24 (P) An amount equal to the amount of the
25 deduction used to compute the federal income tax
26 credit for restoration of substantial amounts held
27 under claim of right for the taxable year pursuant
28 to Section 1341 of the Internal Revenue Code of
29 1986;
30 (Q) An amount equal to any amounts included in
31 such total, received by the taxpayer as an
32 acceleration in the payment of life, endowment or
33 annuity benefits in advance of the time they would
34 otherwise be payable as an indemnity for a terminal
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1 illness;
2 (R) An amount equal to the amount of any
3 federal or State bonus paid to veterans of the
4 Persian Gulf War;
5 (S) An amount, to the extent included in
6 adjusted gross income, equal to the amount of a
7 contribution made in the taxable year on behalf of
8 the taxpayer to a medical care savings account
9 established under the Medical Care Savings Account
10 Act to the extent the contribution is accepted by
11 the account administrator as provided in that Act;
12 (T) An amount, to the extent included in
13 adjusted gross income, equal to the amount of
14 interest earned in the taxable year on a medical
15 care savings account established under the Medical
16 Care Savings Account Act on behalf of the taxpayer,
17 other than interest added pursuant to item (D-5) of
18 this paragraph (2);
19 (U) For one taxable year beginning on or after
20 January 1, 1994, an amount equal to the total amount
21 of tax imposed and paid under subsections (a) and
22 (b) of Section 201 of this Act on grant amounts
23 received by the taxpayer under the Nursing Home
24 Grant Assistance Act during the taxpayer's taxable
25 years 1992 and 1993; and
26 (V) Beginning with tax years ending on or
27 after December 31, 1995 and ending with tax years
28 ending on or before December 31, 1999, an amount
29 equal to the amount paid by a taxpayer who is a
30 self-employed taxpayer, a partner of a partnership,
31 or a shareholder in a Subchapter S corporation for
32 health insurance or long-term care insurance for
33 that taxpayer or that taxpayer's spouse or
34 dependents, to the extent that the amount paid for
-13- LRB9000732KDcbA
1 that health insurance or long-term care insurance
2 may be deducted under Section 213 of the Internal
3 Revenue Code of 1986, has not been deducted on the
4 federal income tax return of the taxpayer, and does
5 not exceed the taxable income attributable to that
6 taxpayer's income, self-employment income, or
7 Subchapter S corporation income; except that no
8 deduction shall be allowed under this item (V) if
9 the taxpayer is eligible to participate in any
10 health insurance or long-term care insurance plan of
11 an employer of the taxpayer or the taxpayer's
12 spouse. The amount of the health insurance and
13 long-term care insurance subtracted under this item
14 (V) shall be determined by multiplying total health
15 insurance and long-term care insurance premiums paid
16 by the taxpayer times a number that represents the
17 fractional percentage of eligible medical expenses
18 under Section 213 of the Internal Revenue Code of
19 1986 not actually deducted on the taxpayer's federal
20 income tax return.
21 (b) Corporations.
22 (1) In general. In the case of a corporation, base
23 income means an amount equal to the taxpayer's taxable
24 income for the taxable year as modified by paragraph (2).
25 (2) Modifications. The taxable income referred to
26 in paragraph (1) shall be modified by adding thereto the
27 sum of the following amounts:
28 (A) An amount equal to all amounts paid or
29 accrued to the taxpayer as interest and all
30 distributions received from regulated investment
31 companies during the taxable year to the extent
32 excluded from gross income in the computation of
33 taxable income;
34 (B) An amount equal to the amount of tax
-14- LRB9000732KDcbA
1 imposed by this Act to the extent deducted from
2 gross income in the computation of taxable income
3 for the taxable year;
4 (C) In the case of a regulated investment
5 company or real estate investment trust, an amount
6 equal to the excess of (i) the net long-term capital
7 gain for the taxable year, over (ii) the amount of
8 the capital gain dividends designated as such in
9 accordance with Section 852(b)(3)(C) or Section
10 857(b)(3)(C) of the Internal Revenue Code and any
11 amount designated under Section 852(b)(3)(D) of the
12 Internal Revenue Code, attributable to the taxable
13 year.
14 This amendatory Act of 1995 is declarative of existing
15 law and is not a new enactment.
16 (D) The amount of any net operating loss
17 deduction taken in arriving at taxable income, other
18 than a net operating loss carried forward from a
19 taxable year ending prior to December 31, 1986; and
20 (E) For taxable years in which a net operating
21 loss carryback or carryforward from a taxable year
22 ending prior to December 31, 1986 is an element of
23 taxable income under paragraph (1) of subsection (e)
24 or subparagraph (E) of paragraph (2) of subsection
25 (e), the amount by which addition modifications
26 other than those provided by this subparagraph (E)
27 exceeded subtraction modifications in such earlier
28 taxable year, with the following limitations applied
29 in the order that they are listed:
30 (i) the addition modification relating to
31 the net operating loss carried back or forward
32 to the taxable year from any taxable year
33 ending prior to December 31, 1986 shall be
34 reduced by the amount of addition modification
-15- LRB9000732KDcbA
1 under this subparagraph (E) which related to
2 that net operating loss and which was taken
3 into account in calculating the base income of
4 an earlier taxable year, and
5 (ii) the addition modification relating
6 to the net operating loss carried back or
7 forward to the taxable year from any taxable
8 year ending prior to December 31, 1986 shall
9 not exceed the amount of such carryback or
10 carryforward;
11 For taxable years in which there is a net
12 operating loss carryback or carryforward from more
13 than one other taxable year ending prior to December
14 31, 1986, the addition modification provided in this
15 subparagraph (E) shall be the sum of the amounts
16 computed independently under the preceding
17 provisions of this subparagraph (E) for each such
18 taxable year,
19 and by deducting from the total so obtained the sum of
20 the following amounts:
21 (F) An amount equal to the amount of any tax
22 imposed by this Act which was refunded to the
23 taxpayer and included in such total for the taxable
24 year;
25 (G) An amount equal to any amount included in
26 such total under Section 78 of the Internal Revenue
27 Code;
28 (H) In the case of a regulated investment
29 company, an amount equal to the amount of exempt
30 interest dividends as defined in subsection (b) (5)
31 of Section 852 of the Internal Revenue Code, paid to
32 shareholders for the taxable year;
33 (I) With the exception of any amounts
34 subtracted under subparagraph (J), an amount equal
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1 to the sum of all amounts disallowed as deductions
2 by Sections 171(a) (2), and 265(a)(2) and amounts
3 disallowed as interest expense by Section 291(a)(3)
4 of the Internal Revenue Code, as now or hereafter
5 amended, and all amounts of expenses allocable to
6 interest and disallowed as deductions by Section
7 265(a)(1) of the Internal Revenue Code, as now or
8 hereafter amended;
9 (J) An amount equal to all amounts included in
10 such total which are exempt from taxation by this
11 State either by reason of its statutes or
12 Constitution or by reason of the Constitution,
13 treaties or statutes of the United States; provided
14 that, in the case of any statute of this State that
15 exempts income derived from bonds or other
16 obligations from the tax imposed under this Act, the
17 amount exempted shall be the interest net of bond
18 premium amortization;
19 (K) An amount equal to those dividends
20 included in such total which were paid by a
21 corporation which conducts business operations in an
22 Enterprise Zone or zones created under the Illinois
23 Enterprise Zone Act and conducts substantially all
24 of its operations in an Enterprise Zone or zones;
25 (L) An amount equal to those dividends
26 included in such total that were paid by a
27 corporation that conducts business operations in a
28 federally designated Foreign Trade Zone or Sub-Zone
29 and that is designated a High Impact Business
30 located in Illinois; provided that dividends
31 eligible for the deduction provided in subparagraph
32 (K) of paragraph 2 of this subsection shall not be
33 eligible for the deduction provided under this
34 subparagraph (L);
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1 (M) For any taxpayer that is a financial
2 organization within the meaning of Section 304(c) of
3 this Act, an amount included in such total as
4 interest income from a loan or loans made by such
5 taxpayer to a borrower, to the extent that such a
6 loan is secured by property which is eligible for
7 the Enterprise Zone Investment Credit. To determine
8 the portion of a loan or loans that is secured by
9 property eligible for a Section 201(h) investment
10 credit to the borrower, the entire principal amount
11 of the loan or loans between the taxpayer and the
12 borrower should be divided into the basis of the
13 Section 201(h) investment credit property which
14 secures the loan or loans, using for this purpose
15 the original basis of such property on the date that
16 it was placed in service in the Enterprise Zone.
17 The subtraction modification available to taxpayer
18 in any year under this subsection shall be that
19 portion of the total interest paid by the borrower
20 with respect to such loan attributable to the
21 eligible property as calculated under the previous
22 sentence;
23 (M-1) For any taxpayer that is a financial
24 organization within the meaning of Section 304(c) of
25 this Act, an amount included in such total as
26 interest income from a loan or loans made by such
27 taxpayer to a borrower, to the extent that such a
28 loan is secured by property which is eligible for
29 the High Impact Business Investment Credit. To
30 determine the portion of a loan or loans that is
31 secured by property eligible for a Section 201(i)
32 investment credit to the borrower, the entire
33 principal amount of the loan or loans between the
34 taxpayer and the borrower should be divided into the
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1 basis of the Section 201(i) investment credit
2 property which secures the loan or loans, using for
3 this purpose the original basis of such property on
4 the date that it was placed in service in a
5 federally designated Foreign Trade Zone or Sub-Zone
6 located in Illinois. No taxpayer that is eligible
7 for the deduction provided in subparagraph (M) of
8 paragraph (2) of this subsection shall be eligible
9 for the deduction provided under this subparagraph
10 (M-1). The subtraction modification available to
11 taxpayers in any year under this subsection shall be
12 that portion of the total interest paid by the
13 borrower with respect to such loan attributable to
14 the eligible property as calculated under the
15 previous sentence;
16 (N) Two times any contribution made during the
17 taxable year to a designated zone organization to
18 the extent that the contribution (i) qualifies as a
19 charitable contribution under subsection (c) of
20 Section 170 of the Internal Revenue Code and (ii)
21 must, by its terms, be used for a project approved
22 by the Department of Commerce and Community Affairs
23 under Section 11 of the Illinois Enterprise Zone
24 Act;
25 (O) An amount equal to: (i) 85% for taxable
26 years ending on or before December 31, 1992, or, a
27 percentage equal to the percentage allowable under
28 Section 243(a)(1) of the Internal Revenue Code of
29 1986 for taxable years ending after December 31,
30 1992, of the amount by which dividends included in
31 taxable income and received from a corporation that
32 is not created or organized under the laws of the
33 United States or any state or political subdivision
34 thereof, including, for taxable years ending on or
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1 after December 31, 1988, dividends received or
2 deemed received or paid or deemed paid under
3 Sections 951 through 964 of the Internal Revenue
4 Code, exceed the amount of the modification provided
5 under subparagraph (G) of paragraph (2) of this
6 subsection (b) which is related to such dividends;
7 plus (ii) 100% of the amount by which dividends,
8 included in taxable income and received, including,
9 for taxable years ending on or after December 31,
10 1988, dividends received or deemed received or paid
11 or deemed paid under Sections 951 through 964 of the
12 Internal Revenue Code, from any such corporation
13 specified in clause (i) that would but for the
14 provisions of Section 1504 (b) (3) of the Internal
15 Revenue Code be treated as a member of the
16 affiliated group which includes the dividend
17 recipient, exceed the amount of the modification
18 provided under subparagraph (G) of paragraph (2) of
19 this subsection (b) which is related to such
20 dividends;
21 (P) An amount equal to any contribution made
22 to a job training project established pursuant to
23 the Tax Increment Allocation Redevelopment Act; and
24 (Q) An amount equal to the amount of the
25 deduction used to compute the federal income tax
26 credit for restoration of substantial amounts held
27 under claim of right for the taxable year pursuant
28 to Section 1341 of the Internal Revenue Code of
29 1986.
30 (3) Special rule. For purposes of paragraph (2)
31 (A), "gross income" in the case of a life insurance
32 company, for tax years ending on and after December 31,
33 1994, shall mean the gross investment income for the
34 taxable year.
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1 (c) Trusts and estates.
2 (1) In general. In the case of a trust or estate,
3 base income means an amount equal to the taxpayer's
4 taxable income for the taxable year as modified by
5 paragraph (2).
6 (2) Modifications. Subject to the provisions of
7 paragraph (3), the taxable income referred to in
8 paragraph (1) shall be modified by adding thereto the sum
9 of the following amounts:
10 (A) An amount equal to all amounts paid or
11 accrued to the taxpayer as interest or dividends
12 during the taxable year to the extent excluded from
13 gross income in the computation of taxable income;
14 (B) In the case of (i) an estate, $600; (ii) a
15 trust which, under its governing instrument, is
16 required to distribute all of its income currently,
17 $300; and (iii) any other trust, $100, but in each
18 such case, only to the extent such amount was
19 deducted in the computation of taxable income;
20 (C) An amount equal to the amount of tax
21 imposed by this Act to the extent deducted from
22 gross income in the computation of taxable income
23 for the taxable year;
24 (D) The amount of any net operating loss
25 deduction taken in arriving at taxable income, other
26 than a net operating loss carried forward from a
27 taxable year ending prior to December 31, 1986;
28 (E) For taxable years in which a net operating
29 loss carryback or carryforward from a taxable year
30 ending prior to December 31, 1986 is an element of
31 taxable income under paragraph (1) of subsection (e)
32 or subparagraph (E) of paragraph (2) of subsection
33 (e), the amount by which addition modifications
34 other than those provided by this subparagraph (E)
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1 exceeded subtraction modifications in such taxable
2 year, with the following limitations applied in the
3 order that they are listed:
4 (i) the addition modification relating to
5 the net operating loss carried back or forward
6 to the taxable year from any taxable year
7 ending prior to December 31, 1986 shall be
8 reduced by the amount of addition modification
9 under this subparagraph (E) which related to
10 that net operating loss and which was taken
11 into account in calculating the base income of
12 an earlier taxable year, and
13 (ii) the addition modification relating
14 to the net operating loss carried back or
15 forward to the taxable year from any taxable
16 year ending prior to December 31, 1986 shall
17 not exceed the amount of such carryback or
18 carryforward;
19 For taxable years in which there is a net
20 operating loss carryback or carryforward from more
21 than one other taxable year ending prior to December
22 31, 1986, the addition modification provided in this
23 subparagraph (E) shall be the sum of the amounts
24 computed independently under the preceding
25 provisions of this subparagraph (E) for each such
26 taxable year;
27 (F) For taxable years ending on or after
28 January 1, 1989, an amount equal to the tax deducted
29 pursuant to Section 164 of the Internal Revenue Code
30 if the trust or estate is claiming the same tax for
31 purposes of the Illinois foreign tax credit under
32 Section 601 of this Act; and
33 (G) An amount equal to the amount of the
34 capital gain deduction allowable under the Internal
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1 Revenue Code, to the extent deducted from gross
2 income in the computation of taxable income;
3 and by deducting from the total so obtained the sum of
4 the following amounts:
5 (H) An amount equal to all amounts included in
6 such total pursuant to the provisions of Sections
7 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and
8 408 of the Internal Revenue Code or included in such
9 total as distributions under the provisions of any
10 retirement or disability plan for employees of any
11 governmental agency or unit, or retirement payments
12 to retired partners, which payments are excluded in
13 computing net earnings from self employment by
14 Section 1402 of the Internal Revenue Code and
15 regulations adopted pursuant thereto;
16 (I) The valuation limitation amount;
17 (J) An amount equal to the amount of any tax
18 imposed by this Act which was refunded to the
19 taxpayer and included in such total for the taxable
20 year;
21 (K) An amount equal to all amounts included in
22 taxable income as modified by subparagraphs (A),
23 (B), (C), (D), (E), (F) and (G) which are exempt
24 from taxation by this State either by reason of its
25 statutes or Constitution or by reason of the
26 Constitution, treaties or statutes of the United
27 States; provided that, in the case of any statute of
28 this State that exempts income derived from bonds or
29 other obligations from the tax imposed under this
30 Act, the amount exempted shall be the interest net
31 of bond premium amortization;
32 (L) With the exception of any amounts
33 subtracted under subparagraph (K), an amount equal
34 to the sum of all amounts disallowed as deductions
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1 by Sections 171(a) (2) and 265(a)(2) of the Internal
2 Revenue Code, as now or hereafter amended, and all
3 amounts of expenses allocable to interest and
4 disallowed as deductions by Section 265(1) of the
5 Internal Revenue Code of 1954, as now or hereafter
6 amended;
7 (M) An amount equal to those dividends
8 included in such total which were paid by a
9 corporation which conducts business operations in an
10 Enterprise Zone or zones created under the Illinois
11 Enterprise Zone Act and conducts substantially all
12 of its operations in an Enterprise Zone or Zones;
13 (N) An amount equal to any contribution made
14 to a job training project established pursuant to
15 the Tax Increment Allocation Redevelopment Act;
16 (O) An amount equal to those dividends
17 included in such total that were paid by a
18 corporation that conducts business operations in a
19 federally designated Foreign Trade Zone or Sub-Zone
20 and that is designated a High Impact Business
21 located in Illinois; provided that dividends
22 eligible for the deduction provided in subparagraph
23 (M) of paragraph (2) of this subsection shall not be
24 eligible for the deduction provided under this
25 subparagraph (O); and
26 (P) An amount equal to the amount of the
27 deduction used to compute the federal income tax
28 credit for restoration of substantial amounts held
29 under claim of right for the taxable year pursuant
30 to Section 1341 of the Internal Revenue Code of
31 1986.
32 (3) Limitation. The amount of any modification
33 otherwise required under this subsection shall, under
34 regulations prescribed by the Department, be adjusted by
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1 any amounts included therein which were properly paid,
2 credited, or required to be distributed, or permanently
3 set aside for charitable purposes pursuant to Internal
4 Revenue Code Section 642(c) during the taxable year.
5 (d) Partnerships.
6 (1) In general. In the case of a partnership, base
7 income means an amount equal to the taxpayer's taxable
8 income for the taxable year as modified by paragraph (2).
9 (2) Modifications. The taxable income referred to
10 in paragraph (1) shall be modified by adding thereto the
11 sum of the following amounts:
12 (A) An amount equal to all amounts paid or
13 accrued to the taxpayer as interest or dividends
14 during the taxable year to the extent excluded from
15 gross income in the computation of taxable income;
16 (B) An amount equal to the amount of tax
17 imposed by this Act to the extent deducted from
18 gross income for the taxable year; and
19 (C) The amount of deductions allowed to the
20 partnership pursuant to Section 707 (c) of the
21 Internal Revenue Code in calculating its taxable
22 income;
23 (D) An amount equal to the amount of the
24 capital gain deduction allowable under the Internal
25 Revenue Code, to the extent deducted from gross
26 income in the computation of taxable income;
27 and by deducting from the total so obtained the following
28 amounts:
29 (E) The valuation limitation amount;
30 (F) An amount equal to the amount of any tax
31 imposed by this Act which was refunded to the
32 taxpayer and included in such total for the taxable
33 year;
34 (G) An amount equal to all amounts included in
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1 taxable income as modified by subparagraphs (A),
2 (B), (C) and (D) which are exempt from taxation by
3 this State either by reason of its statutes or
4 Constitution or by reason of the Constitution,
5 treaties or statutes of the United States; provided
6 that, in the case of any statute of this State that
7 exempts income derived from bonds or other
8 obligations from the tax imposed under this Act, the
9 amount exempted shall be the interest net of bond
10 premium amortization;
11 (H) Any income of the partnership which
12 constitutes personal service income as defined in
13 Section 1348 (b) (1) of the Internal Revenue Code
14 (as in effect December 31, 1981) or a reasonable
15 allowance for compensation paid or accrued for
16 services rendered by partners to the partnership,
17 whichever is greater;
18 (I) An amount equal to all amounts of income
19 distributable to an entity subject to the Personal
20 Property Tax Replacement Income Tax imposed by
21 subsections (c) and (d) of Section 201 of this Act
22 including amounts distributable to organizations
23 exempt from federal income tax by reason of Section
24 501(a) of the Internal Revenue Code;
25 (J) With the exception of any amounts
26 subtracted under subparagraph (G), an amount equal
27 to the sum of all amounts disallowed as deductions
28 by Sections 171(a) (2), and 265(2) of the Internal
29 Revenue Code of 1954, as now or hereafter amended,
30 and all amounts of expenses allocable to interest
31 and disallowed as deductions by Section 265(1) of
32 the Internal Revenue Code, as now or hereafter
33 amended;
34 (K) An amount equal to those dividends
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1 included in such total which were paid by a
2 corporation which conducts business operations in an
3 Enterprise Zone or zones created under the Illinois
4 Enterprise Zone Act, enacted by the 82nd General
5 Assembly, and which does not conduct such operations
6 other than in an Enterprise Zone or Zones;
7 (L) An amount equal to any contribution made
8 to a job training project established pursuant to
9 the Real Property Tax Increment Allocation
10 Redevelopment Act;
11 (M) An amount equal to those dividends
12 included in such total that were paid by a
13 corporation that conducts business operations in a
14 federally designated Foreign Trade Zone or Sub-Zone
15 and that is designated a High Impact Business
16 located in Illinois; provided that dividends
17 eligible for the deduction provided in subparagraph
18 (K) of paragraph (2) of this subsection shall not be
19 eligible for the deduction provided under this
20 subparagraph (M); and
21 (N) An amount equal to the amount of the
22 deduction used to compute the federal income tax
23 credit for restoration of substantial amounts held
24 under claim of right for the taxable year pursuant
25 to Section 1341 of the Internal Revenue Code of
26 1986.
27 (e) Gross income; adjusted gross income; taxable income.
28 (1) In general. Subject to the provisions of
29 paragraph (2) and subsection (b) (3), for purposes of
30 this Section and Section 803(e), a taxpayer's gross
31 income, adjusted gross income, or taxable income for the
32 taxable year shall mean the amount of gross income,
33 adjusted gross income or taxable income properly
34 reportable for federal income tax purposes for the
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1 taxable year under the provisions of the Internal Revenue
2 Code. Taxable income may be less than zero. However, for
3 taxable years ending on or after December 31, 1986, net
4 operating loss carryforwards from taxable years ending
5 prior to December 31, 1986, may not exceed the sum of
6 federal taxable income for the taxable year before net
7 operating loss deduction, plus the excess of addition
8 modifications over subtraction modifications for the
9 taxable year. For taxable years ending prior to December
10 31, 1986, taxable income may never be an amount in excess
11 of the net operating loss for the taxable year as defined
12 in subsections (c) and (d) of Section 172 of the Internal
13 Revenue Code, provided that when taxable income of a
14 corporation (other than a Subchapter S corporation),
15 trust, or estate is less than zero and addition
16 modifications, other than those provided by subparagraph
17 (E) of paragraph (2) of subsection (b) for corporations
18 or subparagraph (E) of paragraph (2) of subsection (c)
19 for trusts and estates, exceed subtraction modifications,
20 an addition modification must be made under those
21 subparagraphs for any other taxable year to which the
22 taxable income less than zero (net operating loss) is
23 applied under Section 172 of the Internal Revenue Code or
24 under subparagraph (E) of paragraph (2) of this
25 subsection (e) applied in conjunction with Section 172 of
26 the Internal Revenue Code.
27 (2) Special rule. For purposes of paragraph (1) of
28 this subsection, the taxable income properly reportable
29 for federal income tax purposes shall mean:
30 (A) Certain life insurance companies. In the
31 case of a life insurance company subject to the tax
32 imposed by Section 801 of the Internal Revenue Code,
33 life insurance company taxable income, plus the
34 amount of distribution from pre-1984 policyholder
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1 surplus accounts as calculated under Section 815a of
2 the Internal Revenue Code;
3 (B) Certain other insurance companies. In the
4 case of mutual insurance companies subject to the
5 tax imposed by Section 831 of the Internal Revenue
6 Code, insurance company taxable income;
7 (C) Regulated investment companies. In the
8 case of a regulated investment company subject to
9 the tax imposed by Section 852 of the Internal
10 Revenue Code, investment company taxable income;
11 (D) Real estate investment trusts. In the
12 case of a real estate investment trust subject to
13 the tax imposed by Section 857 of the Internal
14 Revenue Code, real estate investment trust taxable
15 income;
16 (E) Consolidated corporations. In the case of
17 a corporation which is a member of an affiliated
18 group of corporations filing a consolidated income
19 tax return for the taxable year for federal income
20 tax purposes, taxable income determined as if such
21 corporation had filed a separate return for federal
22 income tax purposes for the taxable year and each
23 preceding taxable year for which it was a member of
24 an affiliated group. For purposes of this
25 subparagraph, the taxpayer's separate taxable income
26 shall be determined as if the election provided by
27 Section 243(b) (2) of the Internal Revenue Code had
28 been in effect for all such years;
29 (F) Cooperatives. In the case of a
30 cooperative corporation or association, the taxable
31 income of such organization determined in accordance
32 with the provisions of Section 1381 through 1388 of
33 the Internal Revenue Code;
34 (G) Subchapter S corporations. In the case
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1 of: (i) a Subchapter S corporation for which there
2 is in effect an election for the taxable year under
3 Section 1362 of the Internal Revenue Code, the
4 taxable income of such corporation determined in
5 accordance with Section 1363(b) of the Internal
6 Revenue Code, except that taxable income shall take
7 into account those items which are required by
8 Section 1363(b)(1) of the Internal Revenue Code to
9 be separately stated; and (ii) a Subchapter S
10 corporation for which there is in effect a federal
11 election to opt out of the provisions of the
12 Subchapter S Revision Act of 1982 and have applied
13 instead the prior federal Subchapter S rules as in
14 effect on July 1, 1982, the taxable income of such
15 corporation determined in accordance with the
16 federal Subchapter S rules as in effect on July 1,
17 1982; and
18 (H) Partnerships. In the case of a
19 partnership, taxable income determined in accordance
20 with Section 703 of the Internal Revenue Code,
21 except that taxable income shall take into account
22 those items which are required by Section 703(a)(1)
23 to be separately stated but which would be taken
24 into account by an individual in calculating his
25 taxable income.
26 (f) Valuation limitation amount.
27 (1) In general. The valuation limitation amount
28 referred to in subsections (a) (2) (G), (c) (2) (I) and
29 (d)(2) (E) is an amount equal to:
30 (A) The sum of the pre-August 1, 1969
31 appreciation amounts (to the extent consisting of
32 gain reportable under the provisions of Section 1245
33 or 1250 of the Internal Revenue Code) for all
34 property in respect of which such gain was reported
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1 for the taxable year; plus
2 (B) The lesser of (i) the sum of the
3 pre-August 1, 1969 appreciation amounts (to the
4 extent consisting of capital gain) for all property
5 in respect of which such gain was reported for
6 federal income tax purposes for the taxable year, or
7 (ii) the net capital gain for the taxable year,
8 reduced in either case by any amount of such gain
9 included in the amount determined under subsection
10 (a) (2) (F) or (c) (2) (H).
11 (2) Pre-August 1, 1969 appreciation amount.
12 (A) If the fair market value of property
13 referred to in paragraph (1) was readily
14 ascertainable on August 1, 1969, the pre-August 1,
15 1969 appreciation amount for such property is the
16 lesser of (i) the excess of such fair market value
17 over the taxpayer's basis (for determining gain) for
18 such property on that date (determined under the
19 Internal Revenue Code as in effect on that date), or
20 (ii) the total gain realized and reportable for
21 federal income tax purposes in respect of the sale,
22 exchange or other disposition of such property.
23 (B) If the fair market value of property
24 referred to in paragraph (1) was not readily
25 ascertainable on August 1, 1969, the pre-August 1,
26 1969 appreciation amount for such property is that
27 amount which bears the same ratio to the total gain
28 reported in respect of the property for federal
29 income tax purposes for the taxable year, as the
30 number of full calendar months in that part of the
31 taxpayer's holding period for the property ending
32 July 31, 1969 bears to the number of full calendar
33 months in the taxpayer's entire holding period for
34 the property.
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1 (C) The Department shall prescribe such
2 regulations as may be necessary to carry out the
3 purposes of this paragraph.
4 (g) Double deductions. Unless specifically provided
5 otherwise, nothing in this Section shall permit the same item
6 to be deducted more than once.
7 (h) Legislative intention. Except as expressly provided
8 by this Section there shall be no modifications or
9 limitations on the amounts of income, gain, loss or deduction
10 taken into account in determining gross income, adjusted
11 gross income or taxable income for federal income tax
12 purposes for the taxable year, or in the amount of such items
13 entering into the computation of base income and net income
14 under this Act for such taxable year, whether in respect of
15 property values as of August 1, 1969 or otherwise.
16 (Source: P.A. 88-195; 88-648, eff. 9-16-94; 88-669, eff.
17 11-29-94; 88-670, eff. 12-2-94; 89-89, eff. 6-30-95; 89-235,
18 eff. 8-4-95; 89-418, eff. 11-15-95; 89-460, eff. 5-24-96;
19 89-626, eff. 8-9-96.)
20 (35 ILCS 5/301) (from Ch. 120, par. 3-301)
21 Sec. 301. General Rule.
22 (a) Residents. All items of income or deduction which
23 were taken into account in the computation of base income for
24 the taxable year by a resident shall be allocated to this
25 State.
26 (b) Part-year residents. All items of income or
27 deduction which were taken into account in the computation of
28 base income for the taxable year by a part-year resident
29 shall, for that part of the year the part-year resident was a
30 resident of this State, be allocated to this State and, for
31 the remaining part of the year, be allocated to this State
32 only to the extent provided by Section 302, 303 or 304
33 (relating to compensation, nonbusiness income and business
-32- LRB9000732KDcbA
1 income, respectively).
2 (c) Other persons.
3 (1) In general. Any item of income or deduction
4 which was taken into account in the computation of base
5 income for the taxable year by any person other than a
6 resident and which is referred to in Section 302, 303 or
7 304 (relating to compensation, nonbusiness income and
8 business income, respectively) shall be allocated to this
9 State only to the extent provided by such section.
10 (2) Unspecified items. Any item of income or
11 deduction which was taken into account in the computation
12 of base income for the taxable year by any person other
13 than a resident and which is not otherwise specifically
14 allocated or apportioned pursuant to Section 302, 303 or
15 304 (including, without limitation, interest, dividends,
16 items of income taken into account under the provisions
17 of Sections 401 through 425 of the Internal Revenue Code,
18 and benefit payments received by a beneficiary of a
19 supplemental unemployment benefit trust which is referred
20 to in Section 501(c)(17) of the Internal Revenue Code):
21 (A) in the case of an individual, trust or
22 estate, shall not be allocated to this State; and
23 (B) in the case of a corporation, trust, or a
24 partnership, shall be allocated to this State if the
25 taxpayer had its commercial domicile in this State
26 at the time such item was paid, incurred or accrued.
27 (Source: P.A. 82-609.)
28 (35 ILCS 5/506) (from Ch. 120, par. 5-506)
29 Sec. 506. Federal Returns. (a) In general. Any person
30 required to make a return for a taxable year under this Act
31 may, at any time that a deficiency could be assessed or a
32 refund claimed under this Act in respect of any item reported
33 or properly reportable on such return or any amendment
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1 thereof, be required to furnish to the Department a true and
2 correct copy of any return which may pertain to such item and
3 which was filed by such person under the provisions of the
4 Internal Revenue Code.
5 (b) Changes affecting federal income tax. In the event
6 the taxable income, any item of income or deduction, or the
7 income tax liability, or any tax credit reported in a federal
8 income tax return of any person for any year is altered by
9 amendment of such return or as a result of any other
10 recomputation or redetermination of federal taxable income or
11 loss, and such alteration reflects a change or settlement
12 with respect to any item or items, affecting the computation
13 of such person's net income, net loss, or of any credit
14 provided by Article 2 of this Act base income for any year
15 under this Act, or in the number of personal exemptions
16 allowable to such person under Section 151 of the Internal
17 Revenue Code, such person shall notify the Department of such
18 alteration. Such notification shall be in the form of an
19 amended return or such other form as the Department may by
20 regulations prescribe, shall contain the person's name and
21 address and such other information as the Department may by
22 regulations prescribe, shall be signed by such person or his
23 duly authorized representative, and shall be filed not later
24 than 120 days after such alteration has been agreed to or
25 finally determined for federal income tax purposes or any
26 federal income tax deficiency or refund, tentative carryback
27 adjustment, abatement or credit resulting therefrom has been
28 assessed or paid, whichever shall first occur.
29 (Source: P.A. 86-905.)
30 (35 ILCS 5/905) (from Ch. 120, par. 9-905)
31 Sec. 905. Limitations on Notices of Deficiency.
32 (a) In general. Except as otherwise provided in this
33 Act:
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1 (1) A notice of deficiency shall be issued not
2 later than 3 years after the date the return was filed,
3 and
4 (2) No deficiency shall be assessed or collected
5 with respect to the year for which the return was filed
6 unless such notice is issued within such period.
7 (b) Omission of more than 25% of income. If the taxpayer
8 omits from base income an amount properly includible therein
9 which is in excess of 25% of the amount of base income stated
10 in the return, a notice of deficiency may be issued not later
11 than 6 years after the return was filed. For purposes of this
12 paragraph, there shall not be taken into account any amount
13 which is omitted in the return if such amount is disclosed in
14 the return, or in a statement attached to the return, in a
15 manner adequate to apprise the Department of the nature and
16 the amount of such item.
17 (c) No return or fraudulent return. If no return is
18 filed or a false and fraudulent return is filed with intent
19 to evade the tax imposed by this Act, a notice of deficiency
20 may be issued at any time.
21 (d) Failure to report federal change. If a taxpayer
22 fails to notify the Department in any case where notification
23 is required by Section 304(c) or 506(b), or fails to report a
24 change or correction which is treated in the same manner as
25 if it were a deficiency for federal income tax purposes, a
26 notice of deficiency may be issued at any time.
27 (e) Report of federal change. In any case where
28 notification of an alteration is given as required by Section
29 506(b), a notice of deficiency may be issued at any time
30 within 2 years after the date such notification is given,
31 provided, however, that the amount of any proposed assessment
32 set forth in such notice shall be limited to the amount of
33 any deficiency resulting under this Act from recomputation of
34 the taxpayer's net income, net loss, or Article 2 credits
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1 base income for the taxable year after giving effect to the
2 item or items reflected in the reported alteration.
3 (f) Extension by agreement. Where, before the expiration
4 of the time prescribed in this section for the issuance of a
5 notice of deficiency, both the Department and the taxpayer
6 shall have consented in writing to its issuance after such
7 time, such notice may be issued at any time prior to the
8 expiration of the period agreed upon. The period so agreed
9 upon may be extended by subsequent agreements in writing made
10 before the expiration of the period previously agreed upon.
11 (g) Erroneous refunds. In any case in which there has
12 been an erroneous refund of tax payable under this Act, a
13 notice of deficiency may be issued at any time within 2 years
14 from the making of such refund, or within 5 years from the
15 making of such refund if it appears that any part of the
16 refund was induced by fraud or the misrepresentation of a
17 material fact, provided, however, that the amount of any
18 proposed assessment set forth in such notice shall be limited
19 to the amount of such erroneous refund.
20 Beginning July 1, 1993, in any case in which there has
21 been a refund of tax payable under this Act attributable to a
22 net loss carryback as provided for in Section 207, and that
23 refund is subsequently determined to be an erroneous refund
24 due to a reduction in the amount of the net loss which was
25 originally carried back, a notice of deficiency for the
26 erroneous refund amount may be issued at any time during the
27 same time period in which a notice of deficiency can be
28 issued on the loss year creating the carryback amount and
29 subsequent erroneous refund. The amount of any proposed
30 assessment set forth in the notice shall be limited to the
31 amount of such erroneous refund.
32 (h) Time return deemed filed. For purposes of this
33 Section a tax return filed before the last day prescribed by
34 law (including any extension thereof) shall be deemed to have
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1 been filed on such last day.
2 (i) Request for prompt determination of liability. For
3 purposes of Subsection (a)(1), in the case of a tax return
4 required under this Act in respect of a decedent, or by his
5 estate during the period of administration, or by a
6 corporation, the period referred to in such Subsection shall
7 be 18 months after a written request for prompt determination
8 of liability is filed with the Department (at such time and
9 in such form and manner as the Department shall by
10 regulations prescribe) by the executor, administrator, or
11 other fiduciary representing the estate of such decedent, or
12 by such corporation, but not more than 3 years after the date
13 the return was filed. This Subsection shall not apply in the
14 case of a corporation unless:
15 (1) (A) Such written request notifies the
16 Department that the corporation contemplates dissolution
17 at or before the expiration of such 18-month period, (B)
18 the dissolution is begun in good faith before the
19 expiration of such 18-month period, and (C) the
20 dissolution is completed;
21 (2) (A) Such written request notifies the
22 Department that a dissolution has in good faith been
23 begun, and (B) the dissolution is completed; or
24 (3) A dissolution has been completed at the time
25 such written request is made.
26 (j) Withholding tax. In the case of returns required
27 under Article 7 of this Act (with respect to any amounts
28 withheld as tax or any amounts required to have been withheld
29 as tax) a notice of deficiency shall be issued not later than
30 3 years after the 15th day of the 4th month following the
31 close of the calendar year in which such withholding was
32 required.
33 (k) Penalties for failure to make information reports.
34 A notice of deficiency for the penalties provided by
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1 Subsection 1405.1(c) of this Act may not be issued more than
2 3 years after the due date of the reports with respect to
3 which the penalties are asserted.
4 (l) Penalty for failure to file withholding returns. A
5 notice of deficiency for penalties provided by Section 1004
6 of this Act for taxpayer's failure to file withholding
7 returns may not be issued more than three years after the
8 15th day of the 4th month following the close of the calendar
9 year in which the withholding giving rise to taxpayer's
10 obligation to file those returns occurred.
11 (m) Transferee liability. A notice of deficiency may be
12 issued to a transferee relative to a liability asserted under
13 Section 1405 during time periods defined as follows:
14 1) Initial Transferee. In the case of the
15 liability of an initial transferee, up to 2 years after
16 the expiration of the period of limitation for assessment
17 against the transferor, except that if a court proceeding
18 for review of the assessment against the transferor has
19 begun, then up to 2 years after the return of the
20 certified copy of the judgment in the court proceeding.
21 2) Transferee of Transferee. In the case of the
22 liability of a transferee, up to 2 years after the
23 expiration of the period of limitation for assessment
24 against the preceding transferee, but not more than 3
25 years after the expiration of the period of limitation
26 for assessment against the initial transferor; except
27 that if, before the expiration of the period of
28 limitation for the assessment of the liability of the
29 transferee, a court proceeding for the collection of the
30 tax or liability in respect thereof has been begun
31 against the initial transferor or the last preceding
32 transferee, as the case may be, then the period of
33 limitation for assessment of the liability of the
34 transferee shall expire 2 years after the return of the
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1 certified copy of the judgment in the court proceeding.
2 (Source: P.A. 88-195.)
3 (35 ILCS 5/911) (from Ch. 120, par. 9-911)
4 Sec. 911. Limitations on Claims for Refund. (a) In
5 general. Except as otherwise provided in this Act:
6 (1) A claim for refund shall be filed not later than 3
7 years after the date the return was filed (in the case of
8 returns required under Article 7 of this Act respecting any
9 amounts withheld as tax, not later than 3 years after the
10 15th day of the 4th month following the close of the calendar
11 year in which such withholding was made), or one year after
12 the date the tax was paid, whichever is the later; and
13 (2) No credit or refund shall be allowed or made with
14 respect to the year for which the claim was filed unless such
15 claim is filed within such period.
16 (b) Federal changes. (1) In general. In any case where
17 notification of an alteration is required by Section 506 (b),
18 a claim for refund may be filed within 2 years after the date
19 on which such notification was due (regardless of whether
20 such notice was given), but the amount recoverable pursuant
21 to a claim filed under this Section shall be limited to the
22 amount of any overpayment resulting under this Act from
23 recomputation of the taxpayer's net income, net loss, or
24 Article 2 credits base income for the taxable year after
25 giving effect to the item or items reflected in the
26 alteration required to be reported.
27 (2) Tentative carryback adjustments paid before January
28 1, 1974. If, as the result of the payment before January 1,
29 1974 of a federal tentative carryback adjustment, a
30 notification of an alteration is required under Section 506
31 (b), a claim for refund may be filed at any time before
32 January 1, 1976, but the amount recoverable pursuant to a
33 claim filed under this Section shall be limited to the amount
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1 of any overpayment resulting under this Act from
2 recomputation of the taxpayer's base income for the taxable
3 year after giving effect to the federal alteration resulting
4 from the tentative carryback adjustment irrespective of any
5 limitation imposed in paragraph (l) of this subsection.
6 (c) Extension by agreement. Where, before the
7 expiration of the time prescribed in this section for the
8 filing of a claim for refund, both the Department and the
9 claimant shall have consented in writing to its filing after
10 such time, such claim may be filed at any time prior to the
11 expiration of the period agreed upon. The period so agreed
12 upon may be extended by subsequent agreements in writing made
13 before the expiration of the period previously agreed upon.
14 (d) Limit on amount of credit or refund.
15 (1) Limit where claim filed within 3-year period. If
16 the claim was filed by the claimant during the 3-year period
17 prescribed in subsection (a), the amount of the credit or
18 refund shall not exceed the portion of the tax paid within
19 the period, immediately preceding the filing of the claim,
20 equal to 3 years plus the period of any extension of time for
21 filing the return.
22 (2) Limit where claim not filed within 3-year period.
23 If the claim was not filed within such 3-year period, the
24 amount of the credit or refund shall not exceed the portion
25 of the tax paid during the one year immediately preceding the
26 filing of the claim.
27 (e) Time return deemed filed. For purposes of this
28 section a tax return filed before the last day prescribed by
29 law for the filing of such return (including any extensions
30 thereof) shall be deemed to have been filed on such last day.
31 (f) No claim for refund based on the taxpayer's taking a
32 credit for estimated tax payments as provided by Section 601
33 (b) (2) or for any amount paid by a taxpayer pursuant to
34 Section 602(a) or for any amount of credit for tax withheld
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1 pursuant to Section 701 may be filed more than 3 years after
2 the due date, as provided by Section 505, of the return which
3 was required to be filed relative to the taxable year for
4 which the payments were made or for which the tax was
5 withheld. The changes in this subsection (f) made by this
6 amendatory Act of 1987 shall apply to all taxable years
7 ending on or after December 31, 1969.
8 (g) Special Period of Limitation with Respect to Net
9 Loss Carrybacks. If the claim for refund relates to an
10 overpayment attributable to a net loss carryback as provided
11 by Section 207, in lieu of the 3 year period of limitation
12 prescribed in subsection (a), the period shall be that period
13 which ends 3 years after the time prescribed by law for
14 filing the return (including extensions thereof) for the
15 taxable year of the net loss which results in such carryback,
16 or the period prescribed in subsection (c) in respect of such
17 taxable year, whichever expires later. In the case of such a
18 claim, the amount of the refund may exceed the portion of the
19 tax paid within the period provided in subsection (d) to the
20 extent of the amount of the overpayment attributable to such
21 carryback.
22 (Source: P.A. 86-905.)
23 (35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
24 Sec. 1501. Definitions.
25 (a) In general. When used in this Act, where not
26 otherwise distinctly expressed or manifestly incompatible
27 with the intent thereof:
28 (1) Business income. The term "business income"
29 means income arising from transactions and activity in
30 the regular course of the taxpayer's trade or business,
31 net of the deductions allocable thereto, and includes
32 income from tangible and intangible property if the
33 acquisition, management, and disposition of the property
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1 constitute integral parts of the taxpayer's regular trade
2 or business operations. Such term does not include
3 compensation or the deductions allocable thereto.
4 (2) Commercial domicile. The term "commercial
5 domicile" means the principal place from which the trade
6 or business of the taxpayer is directed or managed.
7 (3) Compensation. The term "compensation" means
8 wages, salaries, commissions and any other form of
9 remuneration paid to employees for personal services.
10 (4) Corporation. The term "corporation" includes
11 associations, joint-stock companies, insurance companies
12 and cooperatives. Any entity, including a limited
13 liability company formed under the Illinois Limited
14 Liability Company Act, shall be treated as a corporation
15 if it is so classified for federal income tax purposes.
16 (5) Department. The term "Department" means the
17 Department of Revenue of this State.
18 (6) Director. The term "Director" means the
19 Director of Revenue of this State.
20 (7) Fiduciary. The term "fiduciary" means a
21 guardian, trustee, executor, administrator, receiver, or
22 any person acting in any fiduciary capacity for any
23 person.
24 (8) Financial organization. The term "financial
25 organization" means any bank, bank holding company, trust
26 company, savings bank, industrial bank, land bank, safe
27 deposit company, private banker, savings and loan
28 association, building and loan association, credit union,
29 currency exchange, cooperative bank, small loan company,
30 sales finance company, investment company, or any person
31 which is owned by a bank or bank holding company. For
32 the purpose of this Section a "person" will include only
33 those persons which a bank holding company may acquire
34 and hold an interest in, directly or indirectly, under
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1 the provisions of the Bank Holding Company Act of 1956
2 (12 U.S.C. 1841, et seq.), except where interests in any
3 person must be disposed of within certain required time
4 limits under the Bank Holding Company Act of 1956.
5 (9) Fiscal year. The term "fiscal year" means an
6 accounting period of 12 months ending on the last day of
7 any month other than December.
8 (10) Includes and including. The terms "includes"
9 and "including" when used in a definition contained in
10 this Act shall not be deemed to exclude other things
11 otherwise within the meaning of the term defined.
12 (11) Internal Revenue Code. The term "Internal
13 Revenue Code" means the United States Internal Revenue
14 Code of 1954 or any successor law or laws relating to
15 federal income taxes in effect for the taxable year.
16 (12) Mathematical error. The term "mathematical
17 error" includes the following types of errors, omissions,
18 or defects in a return filed by a taxpayer which prevents
19 acceptance of the return as filed for processing:
20 (A) arithmetic errors or incorrect
21 computations on the return or supporting schedules;
22 (B) entries on the wrong lines;
23 (C) omission of required supporting forms or
24 schedules or the omission of the information in
25 whole or in part called for thereon; and
26 (D) an attempt to claim, exclude, deduct, or
27 improperly report, in a manner directly contrary to
28 the provisions of the Act and regulations thereunder
29 any item of income, exemption, deduction, or credit.
30 (13) Nonbusiness income. The term "nonbusiness
31 income" means all income other than business income or
32 compensation.
33 (14) Nonresident. The term "nonresident" means a
34 person who is not a resident.
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1 (15) Paid, incurred and accrued. The terms "paid",
2 "incurred" and "accrued" shall be construed according to
3 the method of accounting upon the basis of which the
4 person's base income is computed under this Act.
5 (16) Partnership and partner. The term
6 "partnership" includes a syndicate, group, pool, joint
7 venture or other unincorporated organization, through or
8 by means of which any business, financial operation, or
9 venture is carried on, and which is not, within the
10 meaning of this Act, a trust or estate or a corporation;
11 and the term "partner" includes a member in such
12 syndicate, group, pool, joint venture or organization.
13 Any entity, including a limited liability company
14 formed under the Illinois Limited Liability Company Act,
15 shall be treated as a partnership if it is so classified
16 for federal income tax purposes.
17 For purposes of the tax imposed at subsection (c) of
18 Section 201 of this Act, the term "partnership" does not
19 include a syndicate, group, pool, joint venture or other
20 unincorporated organization established for the sole
21 purpose of playing the Illinois State Lottery.
22 (17) Part-year resident. The term "part-year
23 resident" means an individual who became a resident
24 during the taxable year or ceased to be a resident during
25 the taxable year. Under Section 1501 (a) (20) (A) (i)
26 residence commences with presence in this State for other
27 than a temporary or transitory purpose and ceases with
28 absence from this State for other than a temporary or
29 transitory purpose. Under Section 1501 (a) (20) (A) (ii)
30 residence commences with the establishment of domicile in
31 this State and ceases with the establishment of domicile
32 in another State.
33 (18) Person. The term "person" shall be construed
34 to mean and include an individual, a trust, estate,
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1 partnership, association, firm, company, corporation,
2 limited liability company, or fiduciary. For purposes of
3 Section 1301 and 1302 of this Act, a "person" means (i)
4 an individual, (ii) a corporation, (iii) an officer,
5 agent, or employee of a corporation, (iv) a member, agent
6 or employee of a partnership, or (v) a member, manager,
7 employee, officer, director, or agent of a limited
8 liability company who in such capacity commits an offense
9 specified in Section 1301 and 1302.
10 (18A) Records. The term "records" includes all
11 data maintained by the taxpayer, whether on paper,
12 microfilm, microfiche, or any type of machine-sensible
13 data compilation.
14 (19) Regulations. The term "regulations" includes
15 rules promulgated and forms prescribed by the Department.
16 (20) Resident. The term "resident" means:
17 (A) an individual (i) who is in this State for
18 other than a temporary or transitory purpose during
19 the taxable year; or (ii) who is domiciled in this
20 State but is absent from the State for a temporary
21 or transitory purpose during the taxable year; and
22 (B) The estate of a decedent who at his or her
23 death was domiciled in this State. ;
24 (C) A trust created by a will of a decedent
25 who at his death was domiciled in this State; and
26 (D) An irrevocable trust, the grantor of which
27 was domiciled in this State at the time such trust
28 became irrevocable. For purpose of this
29 subparagraph, a trust shall be considered
30 irrevocable to the extent that the grantor is not
31 treated as the owner thereof under Sections 671
32 through 678 of the Internal Revenue Code.
33 (21) Sales. The term "sales" means all gross
34 receipts of the taxpayer not allocated under Sections
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1 301, 302 and 303.
2 (22) State. The term "state" when applied to a
3 jurisdiction other than this State means any state of the
4 United States, the District of Columbia, the Commonwealth
5 of Puerto Rico, any Territory or Possession of the United
6 States, and any foreign country, or any political
7 subdivision of any of the foregoing. For purposes of the
8 foreign tax credit under Section 601, the term "state"
9 means any state of the United States, the District of
10 Columbia, the Commonwealth of Puerto Rico, and any
11 territory or possession of the United States, or any
12 political subdivision of any of the foregoing, effective
13 for tax years ending on or after December 31, 1989.
14 (23) Taxable year. The term "taxable year" means
15 the calendar year, or the fiscal year ending during such
16 calendar year, upon the basis of which the base income is
17 computed under this Act. "Taxable year" means, in the
18 case of a return made for a fractional part of a year
19 under the provisions of this Act, the period for which
20 such return is made.
21 (24) Taxpayer. The term "taxpayer" means any person
22 subject to the tax imposed by this Act.
23 (25) International banking facility. The term
24 international banking facility shall have the same
25 meaning as is set forth in the Illinois Banking Act or as
26 is set forth in the laws of the United States or
27 regulations of the Board of Governors of the Federal
28 Reserve System.
29 (26) Income Tax Return Preparer.
30 (A) The term "income tax return preparer"
31 means any person who prepares for compensation, or
32 who employs one or more persons to prepare for
33 compensation, any return of tax imposed by this Act
34 or any claim for refund of tax imposed by this Act.
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1 The preparation of a substantial portion of a return
2 or claim for refund shall be treated as the
3 preparation of that return or claim for refund.
4 (B) A person is not an income tax return
5 preparer if all he or she does is
6 (i) furnish typing, reproducing, or other
7 mechanical assistance;
8 (ii) prepare returns or claims for
9 refunds for the employer by whom he or she is
10 regularly and continuously employed;
11 (iii) prepare as a fiduciary returns or
12 claims for refunds for any person; or
13 (iv) prepare claims for refunds for a
14 taxpayer in response to any notice of
15 deficiency issued to that taxpayer or in
16 response to any waiver of restriction after the
17 commencement of an audit of that taxpayer or of
18 another taxpayer if a determination in the
19 audit of the other taxpayer directly or
20 indirectly affects the tax liability of the
21 taxpayer whose claims he or she is preparing.
22 (27) Unitary business group. The term "unitary
23 business group" means a group of persons related through
24 common ownership whose business activities are integrated
25 with, dependent upon and contribute to each other. The
26 group will not include those members whose business
27 activity outside the United States is 80% or more of any
28 such member's total business activity; for purposes of
29 this paragraph and clause (a) (3) (B) (ii) of Section
30 304, business activity within the United States shall be
31 measured by means of the factors ordinarily applicable
32 under subsections (a), (b), (c), and (d) of Section 304
33 except that, in the case of members ordinarily required
34 to apportion business income by means of the 3 factor
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1 formula of property, payroll and sales specified in
2 subsection (a) of Section 304, such members shall not use
3 the sales factor in the computation and the results of
4 the property and payroll factor computations shall be
5 divided by 2 (by one if either the property or payroll
6 factor has a denominator of zero). The computation
7 required by the preceding sentence shall, in each case,
8 involve the division of the member's property, payroll,
9 or revenue miles in the United States, insurance premiums
10 on property or risk in the United States, or financial
11 organization business income from sources within the
12 United States, as the case may be, by the respective
13 worldwide figures for such items. Common ownership in
14 the case of corporations is the direct or indirect
15 control or ownership of more than 50% of the outstanding
16 voting stock of the persons carrying on unitary business
17 activity. Unitary business activity can ordinarily be
18 illustrated where the activities of the members are: (1)
19 in the same general line (such as manufacturing,
20 wholesaling, retailing of tangible personal property,
21 insurance, transportation or finance); or (2) are steps
22 in a vertically structured enterprise or process (such as
23 the steps involved in the production of natural
24 resources, which might include exploration, mining,
25 refining, and marketing); and, in either instance, the
26 members are functionally integrated through the exercise
27 of strong centralized management (where, for example,
28 authority over such matters as purchasing, financing, tax
29 compliance, product line, personnel, marketing and
30 capital investment is not left to each member). In no
31 event, however, will any unitary business group include
32 members which are ordinarily required to apportion
33 business income under different subsections of Section
34 304 except that for tax years ending on or after December
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1 31, 1987 this prohibition shall not apply to a unitary
2 business group composed of one or more taxpayers all of
3 which apportion business income pursuant to subsection
4 (b) of Section 304, or all of which apportion business
5 income pursuant to subsection (d) of Section 304, and a
6 holding company of such single-factor taxpayers (see
7 definition of "financial organization" for rule regarding
8 holding companies of financial organizations). If a
9 unitary business group would, but for the preceding
10 sentence, include members that are ordinarily required to
11 apportion business income under different subsections of
12 Section 304, then for each subsection of Section 304 for
13 which there are two or more members, there shall be a
14 separate unitary business group composed of such members.
15 For purposes of the preceding two sentences, a member is
16 "ordinarily required to apportion business income" under
17 a particular subsection of Section 304 if it would be
18 required to use the apportionment method prescribed by
19 such subsection except for the fact that it derives
20 business income solely from Illinois.
21 (28) Subchapter S corporation. The term
22 "Subchapter S corporation" means a corporation for which
23 there is in effect an election under Section 1362 of the
24 Internal Revenue Code, or for which there is a federal
25 election to opt out of the provisions of the Subchapter S
26 Revision Act of 1982 and have applied instead the prior
27 federal Subchapter S rules as in effect on July 1, 1982.
28 (b) Other definitions.
29 (1) Words denoting number, gender, and so forth,
30 when used in this Act, where not otherwise distinctly
31 expressed or manifestly incompatible with the intent
32 thereof:
33 (A) Words importing the singular include and
34 apply to several persons, parties or things;
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1 (B) Words importing the plural include the
2 singular; and
3 (C) Words importing the masculine gender
4 include the feminine as well.
5 (2) "Company" or "association" as including
6 successors and assigns. The word "company" or
7 "association", when used in reference to a corporation,
8 shall be deemed to embrace the words "successors and
9 assigns of such company or association", and in like
10 manner as if these last-named words, or words of similar
11 import, were expressed.
12 (3) Other terms. Any term used in any Section of
13 this Act with respect to the application of, or in
14 connection with, the provisions of any other Section of
15 this Act shall have the same meaning as in such other
16 Section.
17 (Source: P.A. 88-480; 89-399, eff. 8-20-95.)
18 Section 20. The Use Tax Act is amended by changing
19 Section 20 as follows:
20 (35 ILCS 105/20) (from Ch. 120, par. 439.20)
21 Sec. 20. As soon as practicable after a claim for credit
22 or refund is filed, the Department shall examine the same and
23 determine the amount of credit or refund to which the
24 claimant or the claimant's legal representative, in the event
25 that the claimant shall have died or become a person under
26 legal disability, is entitled and shall, by its Notice of
27 Tentative Determination of Claim, notify the claimant or his
28 or her legal representative of such determination, which
29 determination shall be prima facie correct. Proof of such
30 determination by the Department may be made at any hearing
31 before the Department or in any legal proceeding by a
32 reproduced copy of the Department's record relating thereto,
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1 in the name of the Department under the certificate of the
2 Director of Revenue. Such reproduced copy shall, without
3 further proof, be admitted into evidence before the
4 Department or in any legal proceeding and shall be prima
5 facie proof of the correctness of the Department's
6 determination, as shown therein. If such claimant, or the
7 legal representative of a deceased claimant or a claimant who
8 is a person under legal disability shall, within 60 20 days
9 after the Department's Notice of Tentative Determination of
10 Claim, file a protest thereto and request a hearing thereon,
11 the Department shall give notice to such claimant, or the
12 legal representative of a deceased claimant, or a claimant
13 who is a person under legal disability of the time and place
14 fixed for such hearing, and shall hold a hearing in
15 conformity with the provisions of this Act, and pursuant
16 thereto shall issue its Final Determination of the amount, if
17 any, found to be due as a result of such hearing, to such
18 claimant, or the legal representative of a deceased claimant
19 or a claimant who is a person under legal disability.
20 If a protest to the Department's Notice of Tentative
21 Determination of Claim is not filed within 60 20 days and a
22 request for a hearing thereon is not made as provided herein,
23 the said Notice shall thereupon become and operate as a Final
24 Determination; and, if the Department's Notice of Tentative
25 Determination, upon becoming a Final Determination, indicates
26 no amount due to the claimant, or, upon issuance of a credit
27 or refund for the amount, if any, found by the Department to
28 be due, the claim in all its aspects shall be closed and no
29 longer open to protest, hearing, judicial review, or by any
30 other proceeding or action whatever, either before the
31 Department or in any court of this State. Claims for credit
32 or refund hereunder must be filed with and initially
33 determined by the Department, the remedy herein provided
34 being exclusive; and no court shall have jurisdiction to
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1 determine the merits of any claim except upon review as
2 provided in this Act.
3 (Source: P.A. 83-706.)
4 Section 25. The Service Use Tax Act is amended by
5 changing Section 18 as follows:
6 (35 ILCS 110/18) (from Ch. 120, par. 439.48)
7 Sec. 18. As soon as practicable after a claim for credit
8 or refund is filed, the Department shall examine the same and
9 determine the amount of credit or refund to which the
10 claimant or the claimant's legal representative, in the event
11 that the claimant shall have died or become a person under
12 legal disability, is entitled and shall, by its Notice of
13 Tentative Determination of Claim, notify the claimant or his
14 legal representative of such determination, which
15 determination shall be prima facie correct. Proof of such
16 determination by the Department may be made at any hearing
17 before the Department or in any legal proceeding by a
18 reproduced copy of the Department's record relating thereto,
19 in the name of the Department under the certificate of the
20 Director of Revenue. Such reproduced copy shall, without
21 further proof, be admitted into evidence before the
22 Department or in any legal proceeding and shall be prima
23 facie proof of the correctness of the Department's
24 determination, as shown therein. If such claimant, or the
25 legal representative of a deceased claimant or a claimant who
26 is a person under legal disability, shall, within 60 20 days
27 after the Department's Notice of Tentative Determination of
28 Claim, file a protest thereto and request a hearing thereon,
29 the Department shall give notice to such claimant, or the
30 legal representative of a deceased claimant or claimant who
31 is a person under legal disability, of the time and place
32 fixed for such hearing, and shall hold a hearing in
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1 conformity with the provisions of this Act, and pursuant
2 thereto shall issue its Final Determination of the amount, if
3 any, found to be due as a result of such hearing, to such
4 claimant, or the legal representative of a deceased or
5 incompetent claimant.
6 If a protest to the Department's Notice of Tentative
7 Determination of Claim is not filed within 60 20 days and a
8 request for a hearing thereon is not made as provided herein,
9 the Notice shall thereupon become and operate as a Final
10 Determination; and, if the Department's Notice of Tentative
11 Determination upon becoming a Final Determination, indicates
12 no amount due to the claimant, or, upon issuance of a credit
13 or refund for the amount, if any, found by the Department to
14 be due, the claim in all its aspects shall be closed and no
15 longer open to protest, hearing, judicial review, or by any
16 other proceeding or action whatever, either before the
17 Department or in any court of this State. Claims for credit
18 or refund hereunder must be filed with and initially
19 determined by the Department, the remedy herein provided
20 being exclusive; and no court shall have jurisdiction to
21 determine the merits of any claim except upon review as
22 provided in this Act.
23 (Source: P.A. 83-706.)
24 Section 30. The Service Occupation Tax Act is amended by
25 changing Section 18 as follows:
26 (35 ILCS 115/18) (from Ch. 120, par. 439.118)
27 Sec. 18. As soon as practicable after a claim for credit
28 or refund is filed, the Department shall examine the same and
29 determine the amount of credit or refund to which the
30 claimant or the claimant's legal representative, in the event
31 that the claimant shall have died or become a person under
32 legal disability, is entitled and shall, by its Notice of
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1 Tentative Determination of Claim, notify the claimant or his
2 or her legal representative of such determination, which
3 determination shall be prima facie correct. Proof of such
4 determination by the Department may be made at any hearing
5 before the Department or in any legal proceeding by a
6 reproduced copy of the Department's record relating thereto,
7 in the name of the Department under the certificate of the
8 Director of Revenue. Such reproduced copy shall, without
9 further proof, be admitted into evidence before the
10 Department or in any legal proceeding and shall be prima
11 facie proof of the correctness of the Department's
12 determination, as shown therein. If such claimant, or the
13 legal representative of a deceased claimant or a claimant who
14 is under legal disability shall, within 60 20 days after the
15 Department's Notice of Tentative Determination of Claim, file
16 a protest thereto and request a hearing thereon, the
17 Department shall give notice to such claimant, or the legal
18 representative of a deceased claimant or a claimant who is
19 under legal disability, of the time and place fixed for such
20 hearing, and shall hold a hearing in conformity with the
21 provisions of this Act, and pursuant thereto shall issue its
22 Final Determination of the amount, if any, found to be due as
23 a result of such hearing, to such claimant, or the legal
24 representative of a deceased claimant or a claimant who is
25 under legal disability.
26 If a protest to the Department's Notice of Tentative
27 Determination of Claim is not filed within 60 20 days and a
28 request for a hearing thereon is not made as provided herein,
29 the Notice shall thereupon become and operate as a Final
30 Determination; and, if the Department's Notice of Tentative
31 Determination, upon becoming a Final Determination, indicates
32 no amount due to the claimant, or, upon issuance of a credit
33 or refund for the amount, if any, found by the Department to
34 be due, the claim in all its aspects shall be closed and no
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1 longer open to protest, hearing, judicial review, or by any
2 other proceeding or action whatever, either before the
3 Department or in any court of this State. Claims for credit
4 or refund hereunder must be filed with and initially
5 determined by the Department, the remedy herein provided
6 being exclusive; and no court shall have jurisdiction to
7 determine the merits of any claim except upon review as
8 provided in this Act.
9 (Source: P.A. 83-706.)
10 Section 35. The Retailers' Occupation Tax Act is amended
11 by changing Sections 2a and 6c as follows:
12 (35 ILCS 120/2a) (from Ch. 120, par. 441a)
13 Sec. 2a. It is unlawful for any person to engage in the
14 business of selling tangible personal property at retail in
15 this State without a certificate of registration from the
16 Department. Application for a certificate of registration
17 shall be made to the Department upon forms furnished by it.
18 Each such application shall be signed and verified and shall
19 state: (1) The name and social security number of the
20 applicant; (2) the address of his principal place of
21 business; (3) the address of the principal place of business
22 from which he engages in the business of selling tangible
23 personal property at retail in this State and the addresses
24 of all other places of business, if any (enumerating such
25 addresses, if any, in a separate list attached to and made a
26 part of the application), from which he engages in the
27 business of selling tangible personal property at retail in
28 this State, and (4) the name and address of the person or
29 persons who will be responsible for filing returns and
30 payment of taxes due under this Act, (5) in the case of a
31 corporation, the name, title, and social security number of
32 each corporate officer, (6) in the case of a limited
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1 liability company, the name, social security number, and FEIN
2 number of each manager and member, and (7) such other
3 information as the Department may reasonably require. The
4 application shall contain an acceptance of responsibility
5 signed by the person or persons who will be responsible for
6 filing returns and payment of the taxes due under this Act.
7 If the applicant will sell tangible personal property at
8 retail through vending machines, his application to register
9 shall indicate the number of vending machines to be so
10 operated; and thereafter, he shall notify the Department by
11 January 31 of the number of vending machines which such
12 person was using in his business of selling tangible personal
13 property at retail on the preceding December 31.
14 The Department may deny a certificate of registration to
15 any applicant if the owner, any partner, any manager or
16 member of a limited liability company, or a corporate officer
17 of the applicant, is or has been the owner, a partner, a
18 manager or member of a limited liability company, or a
19 corporate officer, of another retailer that is in default for
20 moneys due under this Act.
21 Every applicant for a certificate of registration
22 hereunder shall, at the time of filing such application,
23 furnish a bond from a surety company authorized to do
24 business in the State of Illinois, or an irrevocable bank
25 letter of credit or a bond signed by 2 personal sureties who
26 have filed, with the Department, sworn statements disclosing
27 net assets equal to at least 3 times the amount of the bond
28 to be required of such applicant, or a bond secured by an
29 assignment of a bank account or certificate of deposit,
30 stocks or bonds, conditioned upon the applicant paying to the
31 State of Illinois all moneys becoming due under this Act and
32 under any other State tax law or municipal or county tax
33 ordinance or resolution under which the certificate of
34 registration that is issued to the applicant under this Act
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1 will permit the applicant to engage in business without
2 registering separately under such other law, ordinance or
3 resolution. The Department shall fix the amount of such
4 security in each case, taking into consideration the amount
5 of money expected to become due from the applicant under this
6 Act and under any other State tax law or municipal or county
7 tax ordinance or resolution under which the certificate of
8 registration that is issued to the applicant under this Act
9 will permit the applicant to engage in business without
10 registering separately under such other law, ordinance or
11 resolution. The amount of security required by the Department
12 shall be such as, in its opinion, will protect the State of
13 Illinois against failure to pay the amount which may become
14 due from the applicant under this Act and under any other
15 State tax law or municipal or county tax ordinance or
16 resolution under which the certificate of registration that
17 is issued to the applicant under this Act will permit the
18 applicant to engage in business without registering
19 separately under such other law, ordinance or resolution, but
20 the amount of the security required by the Department shall
21 not exceed three times the amount of the applicant's average
22 monthly tax liability, or $50,000.00, whichever amount is
23 lower.
24 No certificate of registration under this Act shall be
25 issued by the Department until the applicant provides the
26 Department with satisfactory security as herein provided for.
27 Upon receipt of the application for certificate of
28 registration in proper form, and upon approval by the
29 Department of the security furnished by the applicant, the
30 Department shall issue to such applicant a certificate of
31 registration which shall permit the person to whom it is
32 issued to engage in the business of selling tangible personal
33 property at retail in this State. The certificate of
34 registration shall be conspicuously displayed at the place of
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1 business which the person so registered states in his
2 application to be the principal place of business from which
3 he engages in the business of selling tangible personal
4 property at retail in this State.
5 No certificate of registration issued to a taxpayer who
6 files returns required by this Act on a monthly basis shall
7 be valid after the expiration of 5 years from the date of its
8 issuance or last renewal. The expiration date of a
9 sub-certificate of registration shall be that of the
10 certificate of registration to which the sub-certificate
11 relates. A certificate of registration shall automatically
12 be renewed, subject to revocation as provided by this Act,
13 for an additional 5 years from the date of its expiration
14 unless otherwise notified by the Department as provided by
15 this paragraph. Where a taxpayer to whom a certificate of
16 registration is issued under this Act is in default to the
17 State of Illinois for delinquent returns or for moneys due
18 under this Act or any other State tax law or municipal or
19 county ordinance administered or enforced by the Department,
20 the Department shall, not less than 120 days before the
21 expiration date of such certificate of registration, give
22 notice to the taxpayer to whom the certificate was issued, of
23 the account period of the delinquent returns, the amount of
24 tax, penalty and interest due and owing from the taxpayer,
25 and that the certificate of registration shall not be
26 automatically renewed upon its expiration date unless the
27 taxpayer, on or before the date of expiration, has filed and
28 paid the delinquent returns or paid the defaulted amount in
29 full. A taxpayer to whom such a notice is issued shall be
30 deemed an applicant for renewal. The Department shall
31 promulgate regulations establishing procedures for taxpayers
32 who file returns on a monthly basis but desire and qualify to
33 change to a quarterly or yearly filing basis and will no
34 longer be subject to renewal under this Section, and for
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1 taxpayers who file returns on a yearly or quarterly basis but
2 who desire or are required to change to a monthly filing
3 basis and will be subject to renewal under this Section.
4 The Department may in its discretion approve renewal by
5 an applicant who is in default if, at the time of application
6 for renewal, the applicant files all of the delinquent
7 returns or pays to the Department such percentage of the
8 defaulted amount as may be determined by the Department and
9 agrees in writing to waive all limitations upon the
10 Department for collection of the remaining defaulted amount
11 to the Department over a period not to exceed 5 years from
12 the date of renewal of the certificate; however, no renewal
13 application submitted by an applicant who is in default shall
14 be approved if the immediately preceding renewal by the
15 applicant was conditioned upon the installment payment
16 agreement described in this Section. The payment agreement
17 herein provided for shall be in addition to and not in lieu
18 of the security required by this Section of a taxpayer who is
19 no longer considered a prior continuous compliance taxpayer.
20 The execution of the payment agreement as provided in this
21 Act shall not toll the accrual of interest at the statutory
22 rate.
23 A certificate of registration issued under this Act more
24 than 5 years before the effective date of this amendatory Act
25 of 1989 shall expire and be subject to the renewal provisions
26 of this Section on the next anniversary of the date of
27 issuance of such certificate which occurs more than 6 months
28 after the effective date of this amendatory Act of 1989. A
29 certificate of registration issued less than 5 years before
30 the effective date of this amendatory Act of 1989 shall
31 expire and be subject to the renewal provisions of this
32 Section on the 5th anniversary of the issuance of the
33 certificate.
34 If the person so registered states that he operates other
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1 places of business from which he engages in the business of
2 selling tangible personal property at retail in this State,
3 the Department shall furnish him with a sub-certificate of
4 registration for each such place of business, and the
5 applicant shall display the appropriate sub-certificate of
6 registration at each such place of business. All
7 sub-certificates of registration shall bear the same
8 registration number as that appearing upon the certificate of
9 registration to which such sub-certificates relate.
10 If the applicant will sell tangible personal property at
11 retail through vending machines, the Department shall furnish
12 him with a sub-certificate of registration for each such
13 vending machine, and the applicant shall display the
14 appropriate sub-certificate of registration on each such
15 vending machine by attaching the sub-certificate of
16 registration to a conspicuous part of such vending machine.
17 Where the same person engages in 2 or more businesses of
18 selling tangible personal property at retail in this State,
19 which businesses are substantially different in character or
20 engaged in under different trade names or engaged in under
21 other substantially dissimilar circumstances (so that it is
22 more practicable, from an accounting, auditing or bookkeeping
23 standpoint, for such businesses to be separately registered),
24 the Department may require or permit such person (subject to
25 the same requirements concerning the furnishing of security
26 as those that are provided for hereinbefore in this Section
27 as to each application for a certificate of registration) to
28 apply for and obtain a separate certificate of registration
29 for each such business or for any of such businesses, under a
30 single certificate of registration supplemented by related
31 sub-certificates of registration.
32 Any person who is registered under the "Retailers'
33 Occupation Tax Act" as of March 8, 1963, and who, during the
34 3-year period immediately prior to March 8, 1963, or during a
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1 continuous 3-year period part of which passed immediately
2 before and the remainder of which passes immediately after
3 March 8, 1963, has been so registered continuously and who is
4 determined by the Department not to have been either
5 delinquent or deficient in the payment of tax liability
6 during that period under this Act or under any other State
7 tax law or municipal or county tax ordinance or resolution
8 under which the certificate of registration that is issued to
9 the registrant under this Act will permit the registrant to
10 engage in business without registering separately under such
11 other law, ordinance or resolution, shall be considered to be
12 a Prior Continuous Compliance taxpayer. Also any taxpayer who
13 has, as verified by the Department, faithfully and
14 continuously complied with the condition of his bond or other
15 security under the provisions of this Act for a period of 3
16 consecutive years shall be considered to be a Prior
17 Continuous Compliance taxpayer.
18 Every Prior Continuous Compliance taxpayer shall be
19 exempt from all requirements under this Act concerning the
20 furnishing of security as a condition precedent to his being
21 authorized to engage in the business of selling tangible
22 personal property at retail in this State. This exemption
23 shall continue for each such taxpayer until such time as he
24 may be determined by the Department to be delinquent in the
25 filing of any returns, or is determined by the Department
26 (either through the Department's issuance of a final
27 assessment which has become final under the Act, or by the
28 taxpayer's filing of a return which admits tax that is not
29 paid to be due) to be delinquent or deficient in the paying
30 of any tax under this Act or under any other State tax law or
31 municipal or county tax ordinance or resolution under which
32 the certificate of registration that is issued to the
33 registrant under this Act will permit the registrant to
34 engage in business without registering separately under such
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1 other law, ordinance or resolution, at which time that
2 taxpayer shall become subject to all the financial
3 responsibility requirements of this Act and, as a condition
4 of being allowed to continue to engage in the business of
5 selling tangible personal property at retail, shall be
6 required to post bond or other acceptable security with the
7 Department covering liability which such taxpayer may
8 thereafter incur. Any taxpayer who fails to pay an admitted
9 or established liability under this Act may also be required
10 to post bond or other acceptable security with this
11 Department guaranteeing the payment of such admitted or
12 established liability.
13 No certificate of registration shall be issued to any
14 person who is in default to the State of Illinois for moneys
15 due under this Act or under any other State tax law or
16 municipal or county tax ordinance or resolution under which
17 the certificate of registration that is issued to the
18 applicant under this Act will permit the applicant to engage
19 in business without registering separately under such other
20 law, ordinance or resolution.
21 Any person aggrieved by any decision of the Department
22 under this Section may, within 20 days after notice of such
23 decision, protest and request a hearing, whereupon the
24 Department shall give notice to such person of the time and
25 place fixed for such hearing and shall hold a hearing in
26 conformity with the provisions of this Act and then issue its
27 final administrative decision in the matter to such person.
28 In the absence of such a protest within 20 days, the
29 Department's decision shall become final without any further
30 determination being made or notice given.
31 With respect to security other than bonds (upon which the
32 Department may sue in the event of a forfeiture), if the
33 taxpayer fails to pay, when due, any amount whose payment
34 such security guarantees, the Department shall, after such
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1 liability is admitted by the taxpayer or established by the
2 Department through the issuance of a final assessment that
3 has become final under the law, convert the security which
4 that taxpayer has furnished into money for the State, after
5 first giving the taxpayer at least 10 days' written notice,
6 by registered or certified mail, to pay the liability or
7 forfeit such security to the Department. If the security
8 consists of stocks or bonds or other securities which are
9 listed on a public exchange, the Department shall sell such
10 securities through such public exchange. If the security
11 consists of an irrevocable bank letter of credit, the
12 Department shall convert the security in the manner provided
13 for in the Uniform Commercial Code. If the security consists
14 of a bank certificate of deposit, the Department shall
15 convert the security into money by demanding and collecting
16 the amount of such bank certificate of deposit from the bank
17 which issued such certificate. If the security consists of a
18 type of stocks or other securities which are not listed on a
19 public exchange, the Department shall sell such security to
20 the highest and best bidder after giving at least 10 days'
21 notice of the date, time and place of the intended sale by
22 publication in the "State Official Newspaper". If the
23 Department realizes more than the amount of such liability
24 from the security, plus the expenses incurred by the
25 Department in converting the security into money, the
26 Department shall pay such excess to the taxpayer who
27 furnished such security, and the balance shall be paid into
28 the State Treasury.
29 The Department shall discharge any surety and shall
30 release and return any security deposited, assigned, pledged
31 or otherwise provided to it by a taxpayer under this Section
32 within 30 days after:
33 (1) such taxpayer becomes a Prior Continuous
34 Compliance taxpayer; or
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1 (2) such taxpayer has ceased to collect receipts on
2 which he is required to remit tax to the Department, has
3 filed a final tax return, and has paid to the Department
4 an amount sufficient to discharge his remaining tax
5 liability, as determined by the Department, under this
6 Act and under every other State tax law or municipal or
7 county tax ordinance or resolution under which the
8 certificate of registration issued under this Act permits
9 the registrant to engage in business without registering
10 separately under such other law, ordinance or resolution.
11 The Department shall make a final determination of the
12 taxpayer's outstanding tax liability as expeditiously as
13 possible after his final tax return has been filed; if
14 the Department cannot make such final determination
15 within 45 days after receiving the final tax return,
16 within such period it shall so notify the taxpayer,
17 stating its reasons therefor.
18 (Source: P.A. 88-480; 89-399, eff. 8-20-95.)
19 (35 ILCS 120/6c) (from Ch. 120, par. 445c)
20 Sec. 6c. If a protest to the Department's Notice of
21 Tentative Determination of Claim is not filed within 60 20
22 days and a request for a hearing thereon is not made as
23 provided in Section 6b of this Act, the said Notice shall
24 thereupon become and operate as a Final Determination; and,
25 if the Department's Notice of Tentative Determination, upon
26 becoming a Final Determination, indicates no amount due to
27 the claimant, or, upon issuance of a credit memorandum or
28 refund for the amount, if any, found by the Department to be
29 due, the claim in all its aspects shall be closed and no
30 longer open to protest, hearing, judicial review, or by any
31 other proceeding or action whatever, either before the
32 Department or in any court of this State. Claims for credit
33 or refund hereunder must be filed with and initially
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1 determined by the Department, the remedy herein provided
2 being exclusive; and no court shall have jurisdiction to
3 determine the merits of any claim except upon review as
4 provided herein.
5 (Source: P. A. 77-1032.)
6 Section 40. The Cigarette Tax Act is amended by changing
7 Section 9d as follows:
8 (35 ILCS 130/9d) (from Ch. 120, par. 453.9d)
9 Sec. 9d. If it appears, after claim therefor filed with
10 the Department, that an amount of tax or penalty has been
11 paid which was not due under this Act, whether as the result
12 of a mistake of fact or an error of law, except as
13 hereinafter provided, then the Department shall issue a
14 credit memorandum or refund to the person who made the
15 erroneous payment or, if that person has died or become a
16 person under legal disability, to his or her legal
17 representative, as such.
18 If it is determined that the Department should issue a
19 credit or refund under this Act, the Department may first
20 apply the amount thereof against any amount of tax or penalty
21 due under this Act or under the Cigarette Use Tax Act from
22 the person entitled to such credit or refund. For this
23 purpose, if proceedings are pending to determine whether or
24 not any tax or penalty is due under this Act or under the
25 Cigarette Use Tax Act from such person, the Department may
26 withhold issuance of the credit or refund pending the final
27 disposition of such proceedings and may apply such credit or
28 refund against any amount found to be due to the Department
29 under this Act or under the Cigarette Use Tax Act as a result
30 of such proceedings. The balance, if any, of the credit or
31 refund shall be issued to the person entitled thereto.
32 If no tax or penalty is due and no proceeding is pending
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1 to determine whether such taxpayer is indebted to the
2 Department for tax or penalty, the credit memorandum or
3 refund shall be issued to the claimant; or (in the case of a
4 credit memorandum) the credit memorandum may be assigned and
5 set over by the lawful holder thereof, subject to reasonable
6 rules of the Department, to any other person who is subject
7 to this Act or the Cigarette Use Tax Act, and the amount
8 thereof shall be applied by the Department against any tax or
9 penalty due or to become due under this Act or under the
10 Cigarette Use Tax Act from such assignee.
11 As to any claim filed hereunder with the Department on
12 and after each January 1 and July 1, no amount of tax or
13 penalty erroneously paid (either in total or partial
14 liquidation of a tax or penalty under this Act) more than 3
15 years prior to such January 1 and July 1, respectively, shall
16 be credited or refunded, except that if both the Department
17 and the taxpayer have agreed to an extension of time to issue
18 a notice of tax liability under this Act, the claim may be
19 filed at any time prior to the expiration of the period
20 agreed upon.
21 If the Department approves a claim for stamps affixed to
22 a product returned to a manufacturer or for replacement of
23 stamps, the credit memorandum shall not exceed the face value
24 of stamps originally affixed, and replacement stamps shall be
25 issued only in an amount equal to the value of the stamps
26 previously affixed. Higher denomination stamps shall not be
27 issued as replacements for lower value stamps. Distributors
28 must prove the face value of the stamps which have been
29 destroyed or returned to manufacturers when filing claims.
30 Any credit or refund that is allowed under this Act shall
31 bear interest at the rate and in the manner set forth in the
32 Uniform Penalty and Interest Act.
33 In case the Department determines that the claimant is
34 entitled to a refund, such refund shall be made only from
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1 such appropriation as may be available for that purpose. If
2 it appears unlikely that the amount appropriated would permit
3 everyone having a claim allowed during the period covered by
4 such appropriation to elect to receive a cash refund, the
5 Department, by rule or regulation, shall provide for the
6 payment of refunds in hardship cases and shall define what
7 types of cases qualify as hardship cases.
8 If the Department approves a claim for the physical
9 replacement of cigarette tax stamps, the Department (subject
10 to the same limitations as those provided for hereinbefore in
11 this Section) may issue an assignable credit memorandum or
12 refund to the claimant or to the claimant's legal
13 representative.
14 The provisions of Sections 6a, 6b and 6c of the
15 Retailers' Occupation Tax Act which are not inconsistent with
16 this Act, shall apply, as far as practicable, to the subject
17 matter of this Act to the same extent as if such provisions
18 were included herein.
19 (Source: P.A. 87-205; 88-88.)
20 Section 45. The Cigarette Use Tax Act is amended by
21 changing Section 14a as follows:
22 (35 ILCS 135/14a) (from Ch. 120, par. 453.44a)
23 Sec. 14a. If it appears, after claim therefor filed with
24 the Department, that an amount of tax or penalty has been
25 paid which was not due under this Act, whether as the result
26 of a mistake of fact or an error of law, except as
27 hereinafter provided, then the Department shall issue a
28 credit memorandum or refund to the person who made the
29 erroneous payment or, if that person has died or become a
30 person under legal disability, to his or her legal
31 representative, as such.
32 If it is determined that the Department should issue a
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1 credit or refund under this Act, the Department may first
2 apply the amount thereof against any amount of tax or penalty
3 due under this Act or under the Cigarette Tax Act from the
4 person entitled to such credit or refund. For this purpose,
5 if proceedings are pending to determine whether or not any
6 tax or penalty is due under this Act or under the Cigarette
7 Tax Act from such person, the Department may withhold
8 issuance of the credit or refund pending the final
9 disposition of such proceedings and may apply such credit or
10 refund against any amount found to be due to the Department
11 under this Act or under the Cigarette Tax Act as a result of
12 such proceedings. The balance, if any, of the credit or
13 refund shall be issued to the person entitled thereto.
14 If no tax or penalty is due and no proceeding is pending
15 to determine whether such taxpayer is indebted to the
16 Department for tax or penalty, the credit memorandum or
17 refund shall be issued to the claimant; or (in the case of a
18 credit memorandum) may be assigned and set over by the lawful
19 holder thereof, subject to reasonable rules of the
20 Department, to any other person who is subject to this Act or
21 the Cigarette Tax Act, and the amount thereof shall be
22 applied by the Department against any tax or penalty due or
23 to become due under this Act or under the Cigarette Tax Act
24 from such assignee.
25 As to any claim filed hereunder with the Department on
26 and after each January 1 and July 1, no amount of tax or
27 penalty erroneously paid (either in total or partial
28 liquidation of a tax or penalty under this Act) more than 3
29 years prior to such January 1 and July 1, respectively, shall
30 be credited or refunded, except that if both the Department
31 and the taxpayer have agreed to an extension of time to issue
32 a notice of tax liability under this Act, the claim may be
33 filed at any time prior to the expiration of the period
34 agreed upon.
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1 In case the Department determines that the claimant is
2 entitled to a refund, such refund shall be made only from
3 such appropriation as may be available for that purpose. If
4 it appears unlikely that the amount appropriated would permit
5 everyone having a claim allowed during the period covered by
6 such appropriation to elect to receive a cash refund, the
7 Department, by rule or regulation, shall provide for the
8 payment of refunds in hardship cases and shall define what
9 types of cases qualify as hardship cases.
10 If the Department approves a claim for the physical
11 replacement of cigarette tax stamps, the Department (subject
12 to the same limitations as those provided for hereinbefore in
13 this Section) may issue an assignable credit memorandum or
14 refund to the claimant or to the claimant's legal
15 representative.
16 Any credit or refund that is allowed under this Act shall
17 bear interest at the rate and in the manner set forth in the
18 Uniform Penalty and Interest Act.
19 The provisions of Sections 6a, 6b and 6c of the
20 "Retailers' Occupation Tax Act", approved June 28, 1933, as
21 amended, in effect on the effective date of this amendatory
22 Act, as subsequently amended, which are not inconsistent with
23 this Act, shall apply, as far as practicable, to the subject
24 matter of this Act to the same extent as if such provisions
25 were included herein.
26 (Source: P.A. 83-706.)
27 Section 50. The Messages Tax Act is amended by changing
28 Sections 5 and 6 as follows:
29 (35 ILCS 610/5) (from Ch. 120, par. 467.5)
30 Sec. 5. All of the provisions of Sections 4, 5, 5a, 5b,
31 5c, 5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the Retailers'
32 Occupation Tax Act which are not inconsistent with this Act,
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1 and Section 3-7 of the Uniform Penalty and Interest Act shall
2 apply, as far as practicable, to the subject matter of this
3 Act to the same extent as if such provisions were included
4 herein. References in such incorporated Sections of the
5 Retailers' Occupation Tax Act to retailers, to sellers or to
6 persons engaged in the business of selling tangible personal
7 property mean persons engaged in the business of transmitting
8 messages when used in this Act. References in such
9 incorporated Sections of the Retailers' Occupation Tax Act to
10 purchasers of tangible personal property mean purchasers of
11 the service of transmitting messages when used in this Act.
12 References in such incorporated Sections of the Retailers'
13 Occupation Tax Act to sales of tangible personal property
14 mean the transmitting of messages when used in this Act.
15 (Source: P.A. 87-205.)
16 (35 ILCS 610/6) (from Ch. 120, par. 467.6)
17 Sec. 6. If it appears, after claim therefor filed with
18 the Department, that an amount of tax or penalty or interest
19 has been paid which was not due under this Act, whether as
20 the result of a mistake of fact or an error of law, except as
21 hereinafter provided, then the Department shall issue a
22 credit memorandum or refund to the person who made the
23 erroneous payment or, if that person has died or become a
24 person under legal disability, to his or her legal
25 representative, as such.
26 If it is determined that the Department should issue a
27 credit or refund under this Act, the Department may first
28 apply the amount thereof against any amount of tax or penalty
29 or interest due hereunder from the person entitled to such
30 credit or refund. For this purpose, if proceedings are
31 pending to determine whether or not any tax or penalty or
32 interest is due under this Act from such person, the
33 Department may withhold issuance of the credit or refund
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1 pending the final disposition of such proceedings and may
2 apply such credit or refund against any amount found to be
3 due to the Department as a result of such proceedings. The
4 balance, if any, of the credit or refund shall be issued to
5 the person entitled thereto.
6 If no tax or penalty or interest is due and no proceeding
7 is pending to determine whether such person is indebted to
8 the Department for tax or penalty or interest, the credit
9 memorandum or refund shall be issued to the claimant; or (in
10 the case of a credit memorandum) the credit memorandum may be
11 assigned and set over by the lawful holder thereof, subject
12 to reasonable rules of the Department, to any other person
13 who is subject to this Act, and the amount thereof shall be
14 applied by the Department against any tax or penalty or
15 interest due or to become due under this Act from such
16 assignee.
17 As to any claim for credit or refund filed with the
18 Department on or after each January 1 and July 1, no amounts
19 erroneously paid more than 3 years prior to such January 1
20 and July 1, respectively, shall be credited or refunded,
21 except that if both the Department and the taxpayer have
22 agreed to an extension of time to issue a notice of tax
23 liability under this Act, the claim may be filed at any time
24 prior to the expiration of the period agreed upon.
25 Claims for credit or refund shall be filed upon forms
26 provided by the Department. As soon as practicable after any
27 claim for credit or refund is filed, the Department shall
28 examine the same and determine the amount of credit or refund
29 to which the claimant is entitled and shall notify the
30 claimant of such determination, which amount shall be prima
31 facie correct.
32 Any credit or refund that is allowed under this Act shall
33 bear interest at the rate and in the manner specified in the
34 Uniform Penalty and Interest Act.
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1 In case the Department determines that the claimant is
2 entitled to a refund, such refund shall be made only from
3 such appropriation as may be available for that purpose. If
4 it appears unlikely that the amount appropriated would permit
5 everyone having a claim allowed during the period covered by
6 such appropriation to elect to receive a cash refund, the
7 Department, by rule or regulation, shall provide for the
8 payment of refunds in hardship cases and shall define what
9 types of cases qualify as hardship cases.
10 (Source: P.A. 87-205.)
11 Section 55. The Gas Revenue Tax Act is amended by
12 changing Sections 5 and 6 as follows:
13 (35 ILCS 615/5) (from Ch. 120, par. 467.20)
14 Sec. 5. All of the provisions of Sections 4, 5, 5a, 5b,
15 5c, 5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the Retailers'
16 Occupation Tax Act which are not inconsistent with this Act,
17 and Section 3-7 of the Uniform Penalty and Interest Act shall
18 apply, as far as practicable, to the subject matter of this
19 Act to the same extent as if such provisions were included
20 herein. References in such incorporated Sections of the
21 Retailers' Occupation Tax Act to retailers, to sellers or to
22 persons engaged in the business of selling tangible personal
23 property mean persons engaged in the business of
24 distributing, supplying, furnishing or selling gas when used
25 in this Act. References in such incorporated Sections of the
26 Retailers' Occupation Tax Act to purchasers of tangible
27 personal property mean purchasers of gas when used in this
28 Act. References in such incorporated Sections of the
29 Retailers' Occupation Tax Act to sales of tangible personal
30 property mean the distributing, supplying, furnishing or
31 selling of gas when used in this Act.
32 (Source: P.A. 87-205.)
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1 (35 ILCS 615/6) (from Ch. 120, par. 467.21)
2 Sec. 6. If it appears, after claim therefor filed with
3 the Department, that an amount of tax or penalty or interest
4 has been paid which was not due under this Act, whether as
5 the result of a mistake of fact or an error of law, except as
6 hereinafter provided, then the Department shall issue a
7 credit memorandum or refund to the person who made the
8 erroneous payment or, if that person has died or become a
9 person under legal disability, to his or her legal
10 representative, as such.
11 If it is determined that the Department should issue a
12 credit or refund under this Act, the Department may first
13 apply the amount thereof against any amount of tax or penalty
14 or interest due hereunder from the person entitled to such
15 credit or refund. For this purpose, if proceedings are
16 pending to determine whether or not any tax or penalty or
17 interest is due under this Act from such person, the
18 Department may withhold issuance of the credit or refund
19 pending the final disposition of such proceedings and may
20 apply such credit or refund against any amount found to be
21 due to the Department as a result of such proceedings. The
22 balance, if any, of the credit or refund shall be issued to
23 the person entitled thereto.
24 If no tax or penalty or interest is due and no proceeding
25 is pending to determine whether such person is indebted to
26 the Department for tax or penalty or interest, the credit
27 memorandum or refund shall be issued to the claimant; or (in
28 the case of a credit memorandum) the credit memorandum may be
29 assigned and set over by the lawful holder thereof, subject
30 to reasonable rules of the Department, to any other person
31 who is subject to this Act, and the amount thereof shall be
32 applied by the Department against any tax or penalty or
33 interest due or to become due under this Act from such
34 assignee.
-73- LRB9000732KDcbA
1 As to any claim for credit or refund filed with the
2 Department on or after each January 1 and July 1, no amounts
3 erroneously paid more than 3 years prior to such January 1
4 and July 1, respectively, shall be credited or refunded,
5 except that if both the Department and the taxpayer have
6 agreed to an extension of time to issue a notice of tax
7 liability under this Act, the claim may be filed at any time
8 prior to the expiration of the period agreed upon.
9 Claims for credit or refund shall be filed upon forms
10 provided by the Department. As soon as practicable after any
11 claim for credit or refund is filed, the Department shall
12 examine the same and determine the amount of credit or refund
13 to which the claimant is entitled and shall notify the
14 claimant of such determination, which amount shall be prima
15 facie correct.
16 Any credit or refund that is allowed under this Act shall
17 bear interest at the rate and in the manner specified in the
18 Uniform Penalty and Interest Act.
19 In case the Department determines that the claimant is
20 entitled to a refund, such refund shall be made only from
21 such appropriation as may be available for that purpose. If
22 it appears unlikely that the amount appropriated would permit
23 everyone having a claim allowed during the period covered by
24 such appropriation to elect to receive a cash refund, the
25 Department, by rule or regulation, shall provide for the
26 payment of refunds in hardship cases and shall define what
27 types of cases qualify as hardship cases.
28 (Source: P.A. 87-205.)
29 Section 60. The Public Utilities Revenue Act is amended
30 by changing Sections 5 and 6 as follows:
31 (35 ILCS 620/5) (from Ch. 120, par. 472)
32 Sec. 5. All of the provisions of Sections 4, 5, 5a, 5b,
-74- LRB9000732KDcbA
1 5c, 5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the Retailers'
2 Occupation Tax Act, which are not inconsistent with this Act,
3 and Section 3-7 of the Uniform Penalty and Interest Act shall
4 apply, as far as practicable, to the subject matter of this
5 Act to the same extent as if such provisions were included
6 herein. References in such incorporated Sections of the
7 Retailers' Occupation Tax Act to retailers, to sellers or to
8 persons engaged in the business of selling tangible personal
9 property mean persons engaged in the business of
10 distributing, supplying, furnishing or selling electricity
11 when used in this Act. References in such incorporated
12 Sections of the Retailers' Occupation Tax Act to purchasers
13 of tangible personal property mean purchasers of electricity
14 when used in this Act. References in such incorporated
15 Sections of the Retailers' Occupation Tax Act to sales of
16 tangible personal property mean the distributing, supplying,
17 furnishing or selling of electricity when used in this Act.
18 (Source: P.A. 87-205.)
19 (35 ILCS 620/6) (from Ch. 120, par. 473)
20 Sec. 6. If it appears, after claim therefor filed with
21 the Department, that an amount of tax or penalty or interest
22 has been paid which was not due under this Act, whether as
23 the result of a mistake of fact or an error of law, except as
24 hereinafter provided, then the Department shall issue a
25 credit memorandum or refund to the person who made the
26 erroneous payment or, if that person has died or become a
27 person under legal disability, to his or her legal
28 representative, as such.
29 If it is determined that the Department should issue a
30 credit or refund under this Act, the Department may first
31 apply the amount thereof against any amount of tax or penalty
32 or interest due hereunder from the person entitled to such
33 credit or refund. For this purpose, if proceedings are
-75- LRB9000732KDcbA
1 pending to determine whether or not any tax or penalty or
2 interest is due under this Act from such person, the
3 Department may withhold issuance of the credit or refund
4 pending the final disposition of such proceedings and may
5 apply such credit or refund against any amount found to be
6 due to the Department as a result of such proceedings. The
7 balance, if any, of the credit or refund shall be issued to
8 the person entitled thereto.
9 If no tax or penalty or interest is due and no proceeding
10 is pending to determine whether such person is indebted to
11 the Department for tax or penalty or interest, the credit
12 memorandum or refund shall be issued to the claimant; or (in
13 the case of a credit memorandum) the credit memorandum may be
14 assigned and set over by the lawful holder thereof, subject
15 to reasonable rules of the Department, to any other person
16 who is subject to this Act, and the amount thereof shall be
17 applied by the Department against any tax or penalty or
18 interest due or to become due under this Act from such
19 assignee.
20 As to any claim for credit or refund filed with the
21 Department on or after each January 1 and July 1, no amounts
22 erroneously paid more than 3 years prior to such January 1
23 and July 1, respectively, shall be credited or refunded ,
24 except that if both the Department and the taxpayer have
25 agreed to an extension of time to issue a notice of tax
26 liability under this Act, the claim may be filed at any time
27 prior to the expiration of the period agreed upon.
28 Claims for credit or refund shall be filed upon forms
29 provided by the Department. As soon as practicable after any
30 claim for credit or refund is filed, the Department shall
31 examine the same and determine the amount of credit or refund
32 to which the claimant is entitled and shall notify the
33 claimant of such determination, which amount shall be prima
34 facie correct.
-76- LRB9000732KDcbA
1 Any credit or refund that is allowed under this Act shall
2 bear interest at the rate and in the manner specified in the
3 Uniform Penalty and Interest Act.
4 In case the Department determines that the claimant is
5 entitled to a refund, such refund shall be made only from
6 such appropriation as may be available for that purpose. If
7 it appears unlikely that the amount appropriated would permit
8 everyone having a claim allowed during the period covered by
9 such appropriation to elect to receive a cash refund, the
10 Department, by rule or regulation, shall provide for the
11 payment of refunds in hardship cases and shall define what
12 types of cases qualify as hardship cases.
13 (Source: P.A. 87-205.)
14 Section 65. The Water Company Invested Capital Tax Act
15 is amended by changing Sections 5 and 6 as follows:
16 (35 ILCS 625/5) (from Ch. 120, par. 1415)
17 Sec. 5. All of the provisions of Sections 4, 5, 5a, 5b,
18 5c, 5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the Retailers'
19 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
20 Interest Act, which are not inconsistent with this Act, shall
21 apply, as far as practicable, to the subject matter of this
22 Act to the same extent as if such provisions were included
23 herein. References in such incorporated Sections of the
24 Retailers' Occupation Tax Act to retailers, to sellers or to
25 persons engaged in the business of selling tangible personal
26 property mean water companies when used in this Act.
27 References in such incorporated Sections of the Retailers'
28 Occupation Tax Act to purchasers of tangible personal
29 property mean purchasers of water, or of water and sewage
30 disposal, when used in this Act. References in such
31 incorporated Sections of the Retailers' Occupation Tax Act to
32 sales of tangible personal property mean the distributing,
-77- LRB9000732KDcbA
1 supplying, furnishing or selling of water for use or
2 consumption, or of water and sewage disposal, when used in
3 this Act.
4 (Source: P.A. 87-205.)
5 (35 ILCS 625/6) (from Ch. 120, par. 1416)
6 Sec. 6. If it appears, after claim therefor filed with
7 the Department, that an amount of tax or penalty or interest
8 has been paid which was not due under this Act, whether as
9 the result of a mistake of fact or an error of law, except as
10 hereinafter provided, then the Department shall issue a
11 credit memorandum or refund to the person who made the
12 erroneous payment or, if that person has died or become
13 incompetent, to his legal representative, as such.
14 If it is determined that the Department should issue a
15 credit or refund under this Act, the Department may first
16 apply the amount thereof against any amount of tax or penalty
17 or interest due hereunder from the person entitled to such
18 credit or refund. For this purpose, if proceedings are
19 pending to determine whether or not any tax or penalty or
20 interest is due under this Act from such person, the
21 Department may withhold issuance of the credit or refund
22 pending the final disposition of such proceedings and may
23 apply such credit or refund against any amount found to be
24 due to the Department as a result of such proceedings. The
25 balance, if any, of the credit or refund shall be issued to
26 the person entitled thereto.
27 If no tax or penalty or interest is due and no proceeding
28 is pending to determine whether such person is indebted to
29 the Department for tax or penalty or interest, the credit
30 memorandum or refund shall be issued to the claimant; or (in
31 the case of a credit memorandum) the credit memorandum may be
32 assigned and set over by the lawful holder thereof, subject
33 to reasonable rules of the Department, to any other person
-78- LRB9000732KDcbA
1 who is subject to this Act, and the amount thereof shall be
2 applied by the Department against any tax or penalty or
3 interest due or to become due under this Act from such
4 assignee.
5 As to any claim for credit or refund filed with the
6 Department on or after each January 1 and July 1, no amounts
7 erroneously paid more than 3 years prior to such January 1
8 and July 1, respectively, shall be credited or refunded,
9 except that if both the Department and the taxpayer have
10 agreed to an extension of time to issue a notice of tax
11 liability under this Act, the claim may be filed at any time
12 prior to the expiration of the period agreed upon.
13 Claims for credit or refund shall be filed upon forms
14 provided by the Department. As soon as practicable after any
15 claim for credit or refund is filed, the Department shall
16 examine the same and determine the amount of credit or refund
17 to which the claimant is entitled and shall notify the
18 claimant of such determination, which amount shall be prima
19 facie correct.
20 Any credit or refund that is allowed under this Section
21 shall bear interest at the rate and in the manner specified
22 in the Uniform Penalty and Interest Act.
23 In case the Department determines that the claimant is
24 entitled to a refund, such refund shall be made only from
25 such appropriation as may be available for that purpose. If
26 it appears unlikely that the amount appropriated would permit
27 everyone having a claim allowed during the period covered by
28 such appropriation to elect to receive a cash refund, the
29 Department, by rule or regulation, shall provide for the
30 payment of refunds in hardship cases and shall define what
31 types of cases qualify as hardship cases.
32 (Source: P.A. 87-205.)
33 Section 70. The Telecommunications Excise Tax Act is
-79- LRB9000732KDcbA
1 amended by changing Sections 9 and 10 as follows:
2 (35 ILCS 630/9) (from Ch. 120, par. 2009)
3 Sec. 9. All of the provisions of Sections 4, 5, 5a, 5b,
4 5c, 5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the Retailers'
5 Occupation Tax Act, which are not inconsistent with this Act,
6 and Section 3-7 of the Uniform Penalty and Interest Act,
7 shall apply, as far as practicable, to the subject matter of
8 this Act to the same extent as if such provisions were
9 included herein. References in such incorporated Sections of
10 the Retailers' Occupation Tax Act to retailers, to sellers or
11 to persons engaged in the business of selling tangible
12 personal property mean retailers, as defined in this Article,
13 or persons engaged in the act or privilege of originating or
14 receiving telecommunications. References in such
15 incorporated Sections of the Retailers' Occupation Tax Act to
16 purchasers of tangible personal property mean purchasers of
17 telecommunications as defined in this Article. References in
18 such incorporated Sections of the Retailers' Occupation Tax
19 Act to sales of tangible personal property mean the act or
20 privilege of originating or receiving telecommunications as
21 defined in this Article.
22 (Source: P.A. 87-205.)
23 (35 ILCS 630/10) (from Ch. 120, par. 2010)
24 Sec. 10. If it shall appear that an amount of tax or
25 penalty or interest has been paid in error hereunder to the
26 Department by a taxpayer, as distinguished from the retailer,
27 whether such amount be paid through a mistake of fact or an
28 error of law, such taxpayer may file a claim for credit or
29 refund with the Department. If it shall appear that an
30 amount of tax or penalty or interest has been paid in error
31 to the Department hereunder by a retailer who is required or
32 authorized to collect and remit the tax imposed by this
-80- LRB9000732KDcbA
1 Article, whether such amount be paid through a mistake of
2 fact or an error of law, such retailer may file a claim for
3 credit or refund with the Department, provided that no credit
4 or refund shall be allowed for any amount paid by any such
5 retailer unless it shall appear that he bore the burden of
6 such amount and did not shift the burden thereof to anyone
7 else, or unless it shall appear that he or she or his or her
8 legal representative has unconditionally repaid such amount
9 to his customer (1) who bore the burden thereof and has not
10 shifted such burden directly or indirectly in any manner
11 whatsoever; or (2) who, if he or she shifted such burden, has
12 repaid unconditionally such amount to his or her own
13 customer; and (3) who is not entitled to receive any
14 reimbursement therefor from any other source than from his
15 retailer, nor to be relieved of such burden in any other
16 manner whatsoever.
17 If it is determined that the Department should issue a
18 credit or refund under this Article, the Department may first
19 apply the amount thereof against any amount of tax or penalty
20 or interest due hereunder from the person entitled to such
21 credit or refund. For this purpose, if proceedings are
22 pending to determine whether or not any tax or penalty or
23 interest is due under this Article from such person, the
24 Department may withhold issuance of the credit or refund
25 pending the final disposition of such proceedings and may
26 apply such credit or refund against any amount found to be
27 due to the Department as a result of such proceedings. The
28 balance, if any, of the credit or refund shall be issued to
29 the person entitled thereto.
30 If no tax or penalty or interest is due and no proceeding
31 is pending to determine whether such person is indebted to
32 the Department for tax or penalty or interest, the credit
33 memorandum or refund shall be issued to the claimant; or (in
34 the case of a credit memorandum) the credit memorandum may be
-81- LRB9000732KDcbA
1 assigned and set over by the lawful holder thereof, subject
2 to reasonable rules of the Department, to any other person
3 who is subject to this Article, and the amount thereof shall
4 be applied by the Department against any tax or penalty or
5 interest due or to become due under this Article from such
6 assignee.
7 As to any claim for credit or refund filed with the
8 Department on or after each January 1 and July 1, no amounts
9 erroneously paid more than three years prior to such January
10 1 and July 1, respectively, shall be credited or refunded,
11 except that if both the Department and the taxpayer have
12 agreed to an extension of time to issue a notice of tax
13 liability under this Act, the claim may be filed at any time
14 prior to the expiration of the period agreed upon.
15 Claims for credit or refund shall be filed upon forms
16 provided by the Department. As soon as practicable after any
17 claim for credit or refund is filed, the Department shall
18 examine the same and determine the amount of credit or refund
19 to which the claimant is entitled and shall notify the
20 claimant of such determination, which amount shall be prima
21 facie correct.
22 A claim for credit or refund shall be considered to have
23 been filed with the Department on the date upon which it is
24 received by the Department. Upon receipt of any claim for
25 credit or refund filed under this Article, any officer or
26 employee of the Department, authorized in writing by the
27 Director of Revenue to acknowledge receipt of such claims on
28 behalf of the Department, shall execute on behalf of the
29 Department, and shall deliver or mail to the claimant or his
30 duly authorized agent, a written receipt, acknowledging that
31 the claim has been filed with the Department, describing the
32 claim in sufficient detail to identify it and stating the
33 date upon which the claim was received by the Department.
34 Such written receipt shall be prima facie evidence that the
-82- LRB9000732KDcbA
1 Department received the claim described in such receipt and
2 shall be prima facie evidence of the date when such claim was
3 received by the Department. In the absence of such a written
4 receipt, the records of the Department as to when the claim
5 was received by the Department, or as to whether or not the
6 claim was received at all by the Department, shall be deemed
7 to be prima facie correct upon these questions in the event
8 of any dispute between the claimant (or his or her legal
9 representative) and the Department concerning these
10 questions.
11 Any credit or refund that is allowed under this Article
12 shall bear interest at the rate and in the manner specified
13 in the Uniform Penalty and Interest Act.
14 In case the Department determines that the claimant is
15 entitled to a refund, such refund shall be made only from
16 such appropriation as may be available for that purpose. If
17 it appears unlikely that the amount appropriated would permit
18 everyone having a claim allowed during the period covered by
19 such appropriation to elect to receive a cash refund, the
20 Department by rule or regulation shall provide for the
21 payment of refunds in hardship cases and shall define what
22 types of cases qualify as hardship cases.
23 If a retailer who has failed to pay tax on gross charges
24 for telecommunications is required by the Department to pay
25 such tax, such retailer, without filing any formal claim with
26 the Department, shall be allowed to take credit against such
27 tax liability to the extent, if any, to which such retailer
28 has paid the tax to its vendor of the telecommunications
29 which such retailer purchased and used for resale, and no
30 penalty or interest shall be charged to such retailer on the
31 amount of such credit. However, when such credit is allowed
32 to the retailer by the Department, the vendor is precluded
33 from refunding any of the tax to the retailer and filing a
34 claim for credit or refund with respect thereto with the
-83- LRB9000732KDcbA
1 Department. The provisions of this Section added by this
2 amendatory Act of 1988 shall be applied retroactively,
3 regardless of the date of the transaction.
4 (Source: P.A. 87-205.)
5 Section 75. The Senior Citizens and Disabled Persons
6 Property Tax Relief and Pharmaceutical Assistance Act is
7 amended by changing Section 3.07 as follows:
8 (320 ILCS 25/3.07) (from Ch. 67 1/2, par. 403.07)
9 Sec. 3.07. "Income" means adjusted gross income,
10 properly reportable for federal income tax purposes under the
11 provisions of the Internal Revenue Code, modified by adding
12 thereto the sum of the following amounts to the extent
13 deducted or excluded from gross income in the computation of
14 adjusted gross income:
15 (A) An amount equal to all amounts paid or accrued
16 as interest or dividends during the taxable year;
17 (B) An amount equal to the amount of tax imposed by
18 the Illinois Income Tax Act paid for the taxable year;
19 (C) An amount equal to all amounts received during
20 the taxable year as an annuity under an annuity,
21 endowment or life insurance contract or under any other
22 contract or agreement;
23 (D) An amount equal to the amount of benefits paid
24 under the Federal Social Security Act during the taxable
25 year;
26 (E) An amount equal to the amount of benefits paid
27 under the Railroad Retirement Act during the taxable
28 year;
29 (F) An amount equal to the total amount of cash
30 public assistance payments received from any governmental
31 agency during the taxable year other than benefits
32 received pursuant to this Act; .
-84- LRB9000732KDcbA
1 (G) An amount equal to any net operating loss
2 carryover deduction or capital loss carryover deduction
3 during the taxable year.
4 "Income" does not include any grant assistance received
5 under the Nursing Home Grant Assistance Act.
6 This amendatory Act of 1987 shall be effective for
7 purposes of this Section for tax years ending on or after
8 December 31, 1987.
9 (Source: P.A. 87-863.)
10 Section 99. Effective date. This Act takes effect upon
11 becoming law.
-85- LRB9000732KDcbA
1 INDEX
2 Statutes amended in order of appearance
3 20 ILCS 2505/39b52
4 30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
5 30 ILCS 105/6z-20 from Ch. 127, par. 142z-20
6 35 ILCS 5/203 from Ch. 120, par. 2-203
7 35 ILCS 5/301 from Ch. 120, par. 3-301
8 35 ILCS 5/506 from Ch. 120, par. 5-506
9 35 ILCS 5/905 from Ch. 120, par. 9-905
10 35 ILCS 5/911 from Ch. 120, par. 9-911
11 35 ILCS 5/1501 from Ch. 120, par. 15-1501
12 35 ILCS 105/20 from Ch. 120, par. 439.20
13 35 ILCS 110/18 from Ch. 120, par. 439.48
14 35 ILCS 115/18 from Ch. 120, par. 439.118
15 35 ILCS 120/2a from Ch. 120, par. 441a
16 35 ILCS 120/6c from Ch. 120, par. 445c
17 35 ILCS 130/9d from Ch. 120, par. 453.9d
18 35 ILCS 135/14a from Ch. 120, par. 453.44a
19 35 ILCS 610/5 from Ch. 120, par. 467.5
20 35 ILCS 610/6 from Ch. 120, par. 467.6
21 35 ILCS 615/5 from Ch. 120, par. 467.20
22 35 ILCS 615/6 from Ch. 120, par. 467.21
23 35 ILCS 620/5 from Ch. 120, par. 472
24 35 ILCS 620/6 from Ch. 120, par. 473
25 35 ILCS 625/5 from Ch. 120, par. 1415
26 35 ILCS 625/6 from Ch. 120, par. 1416
27 35 ILCS 630/9 from Ch. 120, par. 2009
28 35 ILCS 630/10 from Ch. 120, par. 2010
29 320 ILCS 25/3.07 from Ch. 67 1/2, par. 403.07