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Public Act 098-0970 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Income Tax Act is amended by | ||||
changing Section 911 as follows:
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(35 ILCS 5/911) (from Ch. 120, par. 9-911)
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Sec. 911. Limitations on Claims for Refund.
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(a) In general. Except
as otherwise provided in this Act:
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(1) A claim for refund shall be filed not later than 3 | ||||
years after
the date the return was filed (in the case of | ||||
returns required under
Article 7 of this Act respecting any | ||||
amounts withheld as tax, not later
than 3 years after the | ||||
15th day of the 4th month following the close of
the | ||||
calendar year in which such withholding was made), or one | ||||
year after
the date the tax was paid, whichever is the | ||||
later; and
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(2) No credit or refund shall be allowed or made with | ||||
respect to the
year for which the claim was filed unless | ||||
such claim is filed within
such period.
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(b) Federal changes.
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(1) In general. In any case where
notification of an | ||||
alteration is required by Section 506(b), a claim
for | ||||
refund may be filed within 2 years after the date on which |
such
notification was due (regardless of whether such | ||
notice was given), but
the amount recoverable pursuant to a | ||
claim filed under this Section
shall be limited to the | ||
amount of any overpayment resulting under this
Act from | ||
recomputation of the taxpayer's net income, net loss, or | ||
Article 2
credits for the taxable
year after giving effect | ||
to the item or items reflected in the
alteration required | ||
to be reported.
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(2) Tentative carryback adjustments paid before | ||
January 1, 1974.
If, as the result of the payment before | ||
January 1, 1974 of a federal
tentative carryback | ||
adjustment, a notification of an alteration is
required | ||
under Section 506(b), a claim for refund may be filed at | ||
any
time before January 1, 1976, but the amount recoverable | ||
pursuant to a
claim filed under this Section shall be | ||
limited to the amount of any
overpayment resulting under | ||
this Act from recomputation of the
taxpayer's base income | ||
for the taxable year after giving effect to the
federal | ||
alteration resulting from the tentative carryback | ||
adjustment
irrespective of any limitation imposed in | ||
paragraph (l) of this
subsection.
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(c) Extension by agreement. Where, before the expiration of | ||
the
time prescribed in this section for the filing of a claim | ||
for refund,
both the Department and the claimant shall have | ||
consented in writing to
its filing after such time, such claim | ||
may be filed at any time prior to
the expiration of the period |
agreed upon. The period so agreed upon may
be extended by | ||
subsequent agreements in writing made before the
expiration of | ||
the period previously agreed upon.
In the case of a taxpayer | ||
who is a partnership, Subchapter S corporation, or
trust and | ||
who enters into an agreement with the Department pursuant to | ||
this
subsection on or after January 1, 2003, a claim for refund | ||
may be filed by the
partners, shareholders, or beneficiaries of | ||
the taxpayer at any time prior to
the expiration of the period | ||
agreed upon. Any refund
allowed pursuant to the claim, however, | ||
shall be limited to the amount of any
overpayment
of tax due | ||
under this Act that results from recomputation of items of | ||
income,
deduction, credits, or other amounts of the taxpayer | ||
that are taken into
account by the partner, shareholder, or | ||
beneficiary in computing its liability
under this Act.
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(d) Limit on amount of credit or refund.
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(1) Limit where claim filed within 3-year period. If | ||
the claim was
filed by the claimant during the 3-year | ||
period prescribed in subsection
(a), the amount of the | ||
credit or refund shall not exceed the portion of
the tax | ||
paid within the period, immediately preceding the filing of | ||
the
claim, equal to 3 years plus the period of any | ||
extension of time for
filing the return.
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(2) Limit where claim not filed within 3-year period. | ||
If the claim
was not filed within such 3-year period, the | ||
amount of the credit or
refund shall not exceed the portion | ||
of the tax paid during the one year
immediately preceding |
the filing of the claim.
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(e) Time return deemed filed. For purposes of this section | ||
a tax
return filed before the last day prescribed by law for | ||
the filing of
such return (including any extensions thereof) | ||
shall be deemed to have
been filed on such last day.
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(f) No claim for refund or credit based on the taxpayer's | ||
taking a credit for
estimated tax payments as provided by | ||
Section 601(b)(2) or for any amount
paid by a taxpayer pursuant | ||
to Section 602(a) or for any amount of credit for
tax withheld | ||
pursuant to Article 7 may be filed unless a return was filed | ||
for the tax year not more than 3
years after the due date, as | ||
provided by Section 505, of the return which
was required to be | ||
filed relative to the taxable year for which the
payments were | ||
made or for which the tax was withheld. The changes in
this | ||
subsection (f) made by this
amendatory Act of 1987 shall apply | ||
to all taxable years ending on or after
December 31, 1969.
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(g) Special Period of Limitation with Respect to Net Loss | ||
Carrybacks.
If the claim for refund relates to an overpayment | ||
attributable to a net
loss carryback as provided by Section | ||
207, in lieu of the 3 year period of
limitation prescribed in | ||
subsection (a), the period shall be that period
which ends 3 | ||
years after the time prescribed by law for filing the return
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(including extensions thereof) for the taxable year of the net | ||
loss which
results in such carryback (or, on and after August | ||
13, 1999, with respect to a change in the
carryover of
an | ||
Article 2 credit to a taxable year resulting from the carryback |
of a Section
207 loss incurred in a taxable year beginning on | ||
or after January 1, 2000, the
period shall be that period
that | ||
ends 3 years after the time prescribed by law for filing the | ||
return
(including extensions of that time) for that subsequent | ||
taxable year),
or the period prescribed in subsection (c) in
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respect of such taxable year, whichever expires later. In the | ||
case of such
a claim, the amount of the refund may exceed the | ||
portion of the tax paid
within the period provided in | ||
subsection (d) to the extent of the amount of
the overpayment | ||
attributable to such carryback.
On and after August 13, 1999, | ||
if the claim for refund relates to an overpayment attributable | ||
to
the
carryover
of an Article 2 credit, or of a Section 207 | ||
loss, earned, incurred (in a
taxable year beginning on or after | ||
January 1, 2000), or used in
a
year for which a notification of | ||
a change affecting federal taxable income must
be filed under | ||
subsection (b) of Section 506, the claim may be filed within | ||
the
period
prescribed in paragraph (1) of subsection (b) in | ||
respect of the year for which
the
notification is required. In | ||
the case of such a claim, the amount of the
refund may exceed | ||
the portion of the tax paid within the period provided in
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subsection (d) to the extent of the amount of the overpayment | ||
attributable to
the recomputation of the taxpayer's Article 2 | ||
credits, or Section 207 loss,
earned, incurred, or used in the | ||
taxable year for which the notification is
given.
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(h) Claim for refund based on net loss. On and after August | ||
23, 2002, no claim for refund shall
be allowed to the extent |
the refund is the result of an amount of net loss
incurred in | ||
any taxable year ending prior to December 31, 2002
under | ||
Section 207 of this Act that was not reported to the Department
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within 3 years of the due date (including extensions) of the | ||
return for the
loss year on either the original return filed by | ||
the taxpayer or on amended
return or to the extent that the | ||
refund is the result of an amount of net loss incurred in any | ||
taxable year under Section 207 for which no return was filed | ||
within 3 years of the due date (including extensions) of the | ||
return for the loss year.
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(i) Periods of limitation suspended while taxpayer is | ||
unable to manage financial affairs due to disability. In the | ||
case of an individual, the running of the periods specified in | ||
this Section shall be suspended during any period when that | ||
individual is financially disabled. | ||
For purposes of this subsection (i), an individual is | ||
financially disabled if that individual is unable to manage his | ||
or her financial affairs by reason of a medically determinable | ||
physical or mental impairment of the individual that can be | ||
expected to result in death, or which has lasted or can be | ||
expected to last for a continuous period of not less than 12 | ||
months. | ||
An individual shall not be treated as financially disabled | ||
during any period when that individual's spouse or any other | ||
person is authorized to act on behalf of that individual with | ||
respect to financial matters. |
(Source: P.A. 97-507, eff. 8-23-11.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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