Bill Text: IL HB3955 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Extends the statute of limitations for claims for refunds from 3 years to 5 years. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3955 Detail]
Download: Illinois-2015-HB3955-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||||||||||||||||||||
5 | changing Section 911 as follows:
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6 | (35 ILCS 5/911) (from Ch. 120, par. 9-911)
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7 | Sec. 911. Limitations on claims for refund.
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8 | (a) In general. Except
as otherwise provided in this Act:
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9 | (1) A claim for refund shall be filed not later than 5 | ||||||||||||||||||||||||
10 | 3 years after
the date the return was filed (in the case of | ||||||||||||||||||||||||
11 | returns required under
Article 7 of this Act respecting any | ||||||||||||||||||||||||
12 | amounts withheld as tax, not later
than 5 3 years after the | ||||||||||||||||||||||||
13 | 15th day of the 4th month following the close of
the | ||||||||||||||||||||||||
14 | calendar year in which such withholding was made), or one | ||||||||||||||||||||||||
15 | year after
the date the tax was paid, whichever is the | ||||||||||||||||||||||||
16 | later; and
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17 | (2) No credit or refund shall be allowed or made with | ||||||||||||||||||||||||
18 | respect to the
year for which the claim was filed unless | ||||||||||||||||||||||||
19 | such claim is filed within
such period.
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20 | (b) Federal changes.
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21 | (1) In general. In any case where
notification of an | ||||||||||||||||||||||||
22 | alteration is required by Section 506(b), a claim
for | ||||||||||||||||||||||||
23 | refund may be filed within 2 years after the date on which |
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1 | such
notification was due (regardless of whether such | ||||||
2 | notice was given), but
the amount recoverable pursuant to a | ||||||
3 | claim filed under this Section
shall be limited to the | ||||||
4 | amount of any overpayment resulting under this
Act from | ||||||
5 | recomputation of the taxpayer's net income, net loss, or | ||||||
6 | Article 2
credits for the taxable
year after giving effect | ||||||
7 | to the item or items reflected in the
alteration required | ||||||
8 | to be reported.
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9 | (2) Tentative carryback adjustments paid before | ||||||
10 | January 1, 1974.
If, as the result of the payment before | ||||||
11 | January 1, 1974 of a federal
tentative carryback | ||||||
12 | adjustment, a notification of an alteration is
required | ||||||
13 | under Section 506(b), a claim for refund may be filed at | ||||||
14 | any
time before January 1, 1976, but the amount recoverable | ||||||
15 | pursuant to a
claim filed under this Section shall be | ||||||
16 | limited to the amount of any
overpayment resulting under | ||||||
17 | this Act from recomputation of the
taxpayer's base income | ||||||
18 | for the taxable year after giving effect to the
federal | ||||||
19 | alteration resulting from the tentative carryback | ||||||
20 | adjustment
irrespective of any limitation imposed in | ||||||
21 | paragraph (l) of this
subsection.
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22 | (c) Extension by agreement. Where, before the expiration of | ||||||
23 | the
time prescribed in this section for the filing of a claim | ||||||
24 | for refund,
both the Department and the claimant shall have | ||||||
25 | consented in writing to
its filing after such time, such claim | ||||||
26 | may be filed at any time prior to
the expiration of the period |
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1 | agreed upon. The period so agreed upon may
be extended by | ||||||
2 | subsequent agreements in writing made before the
expiration of | ||||||
3 | the period previously agreed upon.
In the case of a taxpayer | ||||||
4 | who is a partnership, Subchapter S corporation, or
trust and | ||||||
5 | who enters into an agreement with the Department pursuant to | ||||||
6 | this
subsection on or after January 1, 2003, a claim for refund | ||||||
7 | may be filed by the
partners, shareholders, or beneficiaries of | ||||||
8 | the taxpayer at any time prior to
the expiration of the period | ||||||
9 | agreed upon. Any refund
allowed pursuant to the claim, however, | ||||||
10 | shall be limited to the amount of any
overpayment
of tax due | ||||||
11 | under this Act that results from recomputation of items of | ||||||
12 | income,
deduction, credits, or other amounts of the taxpayer | ||||||
13 | that are taken into
account by the partner, shareholder, or | ||||||
14 | beneficiary in computing its liability
under this Act.
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15 | (d) Limit on amount of credit or refund.
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16 | (1) Limit where claim filed within 5-year 3-year | ||||||
17 | period. If the claim was
filed by the claimant during the | ||||||
18 | 5-year 3-year period prescribed in subsection
(a), the | ||||||
19 | amount of the credit or refund shall not exceed the portion | ||||||
20 | of
the tax paid within the period, immediately preceding | ||||||
21 | the filing of the
claim, equal to 5 3 years plus the period | ||||||
22 | of any extension of time for
filing the return.
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23 | (2) Limit where claim not filed within 5-year 3-year | ||||||
24 | period. If the claim
was not filed within such 5-year | ||||||
25 | 3-year period, the amount of the credit or
refund shall not | ||||||
26 | exceed the portion of the tax paid during the one year
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1 | immediately preceding the filing of the claim.
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2 | (e) Time return deemed filed. For purposes of this section | ||||||
3 | a tax
return filed before the last day prescribed by law for | ||||||
4 | the filing of
such return (including any extensions thereof) | ||||||
5 | shall be deemed to have
been filed on such last day.
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6 | (f) No claim for refund or credit based on the taxpayer's | ||||||
7 | taking a credit for
estimated tax payments as provided by | ||||||
8 | Section 601(b)(2) or for any amount
paid by a taxpayer pursuant | ||||||
9 | to Section 602(a) or for any amount of credit for
tax withheld | ||||||
10 | pursuant to Article 7 may be filed unless a return was filed | ||||||
11 | for the tax year not more than 5 3
years after the due date, as | ||||||
12 | provided by Section 505, of the return which
was required to be | ||||||
13 | filed relative to the taxable year for which the
payments were | ||||||
14 | made or for which the tax was withheld. The changes in
this | ||||||
15 | subsection (f) made by this
amendatory Act of 1987 shall apply | ||||||
16 | to all taxable years ending on or after
December 31, 1969.
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17 | (g) Special Period of Limitation with Respect to Net Loss | ||||||
18 | Carrybacks.
If the claim for refund relates to an overpayment | ||||||
19 | attributable to a net
loss carryback as provided by Section | ||||||
20 | 207, in lieu of the 5-year 3 year period of
limitation | ||||||
21 | prescribed in subsection (a), the period shall be that period
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22 | which ends 5 3 years after the time prescribed by law for | ||||||
23 | filing the return
(including extensions thereof) for the | ||||||
24 | taxable year of the net loss which
results in such carryback | ||||||
25 | (or, on and after August 13, 1999, with respect to a change in | ||||||
26 | the
carryover of
an Article 2 credit to a taxable year |
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1 | resulting from the carryback of a Section
207 loss incurred in | ||||||
2 | a taxable year beginning on or after January 1, 2000, the
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3 | period shall be that period
that ends 5 3 years after the time | ||||||
4 | prescribed by law for filing the return
(including extensions | ||||||
5 | of that time) for that subsequent taxable year),
or the period | ||||||
6 | prescribed in subsection (c) in
respect of such taxable year, | ||||||
7 | whichever expires later. In the case of such
a claim, the | ||||||
8 | amount of the refund may exceed the portion of the tax paid
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9 | within the period provided in subsection (d) to the extent of | ||||||
10 | the amount of
the overpayment attributable to such carryback.
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11 | On and after August 13, 1999, if the claim for refund relates | ||||||
12 | to an overpayment attributable to
the
carryover
of an Article 2 | ||||||
13 | credit, or of a Section 207 loss, earned, incurred (in a
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14 | taxable year beginning on or after January 1, 2000), or used in
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15 | a
year for which a notification of a change affecting federal | ||||||
16 | taxable income must
be filed under subsection (b) of Section | ||||||
17 | 506, the claim may be filed within the
period
prescribed in | ||||||
18 | paragraph (1) of subsection (b) in respect of the year for | ||||||
19 | which
the
notification is required. In the case of such a | ||||||
20 | claim, the amount of the
refund may exceed the portion of the | ||||||
21 | tax paid within the period provided in
subsection (d) to the | ||||||
22 | extent of the amount of the overpayment attributable to
the | ||||||
23 | recomputation of the taxpayer's Article 2 credits, or Section | ||||||
24 | 207 loss,
earned, incurred, or used in the taxable year for | ||||||
25 | which the notification is
given.
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26 | (h) Claim for refund based on net loss. On and after August |
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1 | 23, 2002, no claim for refund shall
be allowed to the extent | ||||||
2 | the refund is the result of an amount of net loss
incurred in | ||||||
3 | any taxable year ending prior to December 31, 2002
under | ||||||
4 | Section 207 of this Act that was not reported to the Department
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5 | within 5 3 years of the due date (including extensions) of the | ||||||
6 | return for the
loss year on either the original return filed by | ||||||
7 | the taxpayer or on amended
return or to the extent that the | ||||||
8 | refund is the result of an amount of net loss incurred in any | ||||||
9 | taxable year under Section 207 for which no return was filed | ||||||
10 | within 5 3 years of the due date (including extensions) of the | ||||||
11 | return for the loss year.
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12 | (i) Periods of limitation suspended while taxpayer is | ||||||
13 | unable to manage financial affairs due to disability. In the | ||||||
14 | case of an individual, the running of the periods specified in | ||||||
15 | this Section shall be suspended during any period when that | ||||||
16 | individual is financially disabled. | ||||||
17 | For purposes of this subsection (i), an individual is | ||||||
18 | financially disabled if that individual is unable to manage his | ||||||
19 | or her financial affairs by reason of a medically determinable | ||||||
20 | physical or mental impairment of the individual that can be | ||||||
21 | expected to result in death, or which has lasted or can be | ||||||
22 | expected to last for a continuous period of not less than 12 | ||||||
23 | months. | ||||||
24 | An individual shall not be treated as financially disabled | ||||||
25 | during any period when that individual's spouse or any other | ||||||
26 | person is authorized to act on behalf of that individual with |
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1 | respect to financial matters. | ||||||
2 | (Source: P.A. 97-507, eff. 8-23-11; 98-970, eff. 8-15-14.)
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3 | Section 99. Effective date. This Act takes effect upon | ||||||
4 | becoming law.
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