Bill Text: IL HB2557 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides that no refund shall be paid to any corporation, trust, or estate except by direct deposit or electronic funds transfer. Provides that no interest shall be paid on any overpayment for any period during which the Department is not able to refund the overpayment because the taxpayer has not provided the Department with the information necessary to make direct deposit or electronic funds transfer to the taxpayer.

Spectrum: Bipartisan Bill

Status: (Failed) 2014-12-03 - Session Sine Die [HB2557 Detail]

Download: Illinois-2013-HB2557-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB2557 Introduced , by Rep. John E. Bradley SYNOPSIS AS INTRODUCED:
35 ILCS 5/909 from Ch. 120, par. 9-909
Amends the Illinois Income Tax Act. Provides that no refund shall be paid to any corporation, trust, or estate except by direct deposit or electronic funds transfer. Provides that no interest shall be paid on any overpayment for any period during which the Department is not able to refund the overpayment because the taxpayer has not provided the Department with the information necessary to make direct deposit or electronic funds transfer to the taxpayer.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by
changing Section 909 as follows:
(35 ILCS 5/909) (from Ch. 120, par. 9-909)
Sec. 909. Credits and Refunds.
(a) In general. In the case of any overpayment, the
Department, within the applicable period of limitations for a
claim for refund, may credit the amount of such overpayment,
including any interest allowed thereon, against any liability
in respect of the tax imposed by this Act, regardless of
whether other collection remedies are closed to the Department
on the part of the person who made the overpayment and shall
refund any balance to such person.
(b) Credits against estimated tax. The Department may
prescribe regulations providing for the crediting against the
estimated tax for any taxable year of the amount determined by
the taxpayer or the Department to be an overpayment of the tax
imposed by this Act for a preceding taxable year.
(c) Interest on overpayment. Interest shall be allowed and
paid at the rate and in the manner prescribed in Section 3-2 of
the Uniform Penalty and Interest Act upon any overpayment in

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respect of the tax imposed by this Act. For purposes of this
subsection, no amount of tax, for any taxable year, shall be
treated as having been paid before the date on which the tax
return for such year was due under Section 505, without regard
to any extension of the time for filing such return.
(d) Refund claim. Every claim for refund shall be filed
with the Department in writing in such form as the Department
may by regulations prescribe, and shall state the specific
grounds upon which it is founded.
(e) Notice of denial. As soon as practicable after a claim
for refund is filed, the Department shall examine it and either
issue a notice of refund, abatement or credit to the claimant
or issue a notice of denial. If the Department has failed to
approve or deny the claim before the expiration of 6 months
from the date the claim was filed, the claimant may
nevertheless thereafter file with the Department a written
protest in such form as the Department may by regulation
prescribe, provided that, on or after July 1, 2013, protests
concerning matters that are subject to the jurisdiction of the
Illinois Independent Tax Tribunal shall be filed with the
Illinois Independent Tax Tribunal and not with the Department.
If the protest is subject to the jurisdiction of the
Department, the Department shall consider the claim and, if the
taxpayer has so requested, shall grant the taxpayer or the
taxpayer's authorized representative a hearing within 6 months
after the date such request is filed.

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On and after July 1, 2013, if the protest would otherwise
be subject to the jurisdiction of the Illinois Independent Tax
Tribunal, the claimant may elect to treat the Department's
non-action as a denial of the claim by filing a petition to
review the Department's administrative decision with the
Illinois Independent Tax Tribunal, as provided by Section 910.
(f) Effect of denial. A denial of a claim for refund
becomes final 60 days after the date of issuance of the notice
of such denial except for such amounts denied as to which the
claimant has filed a protest with the Department or a petition
with the Illinois Independent Tax Tribunal, as provided by
Section 910.
(g) An overpayment of tax shown on the face of an unsigned
return shall be considered forfeited to the State if after
notice and demand for signature by the Department the taxpayer
fails to provide a signature and 3 years have passed from the
date the return was filed. An overpayment of tax refunded to a
taxpayer whose return was filed electronically shall be
considered an erroneous refund under Section 912 of this Act
if, after proper notice and demand by the Department, the
taxpayer fails to provide a required signature document. A
notice and demand for signature in the case of a return
reflecting an overpayment may be made by first class mail. This
subsection (g) shall apply to all returns filed pursuant to
this Act since 1969.
(h) This amendatory Act of 1983 applies to returns and

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claims for refunds filed with the Department on and after July
1, 1983.
(i) On and after January 1, 2014, no refund shall be paid
to any taxpayer except by direct deposit or electronic funds
transfer. Notwithstanding subsection (c) of this Section or any
other provision of law, no interest shall be paid on any
overpayment for any period during which the Department is not
able to refund the overpayment under this subsection (i)
because the taxpayer has not provided the Department with the
information necessary to make direct deposit or electronic
funds transfer to the taxpayer. This subsection (i) shall not
apply to refunds due to individual taxpayers, and the
Department may waive the requirements of this subsection (i) in
the case of undue hardship to a taxpayer.
(Source: P.A. 97-507, eff. 8-23-11; 97-1129, eff. 8-28-12;
revised 10-10-12.)