Ill. Admin. Code tit. 86, § 450.120 - Claims for Credit or Refund
a) If it
appears, after claim is filed with the Department, that an amount of tax or
penalty has been paid that was not due under the Cigarette Use Tax Act, whether
as the result of a mistake of fact or an error of law, except as hereinafter
provided, then the Department shall issue a credit memorandum or refund to the
person who made the erroneous payment or, if that person has died or become
incompetent, to his legal representative.
b) If it is determined that the Department
should issue a credit or refund under the Act, the Department may first apply
the amount against any amount of tax or penalty due under the Cigarette Use Tax
Act or under the Cigarette Tax Act from the person entitled to the credit or
refund. For this purpose, if proceedings are pending to determine whether or
not any tax or penalty is due under the Cigarette Use Tax Act or under the
Cigarette Tax Act from the person, the Department may withhold issuance of the
credit or refund pending the final disposition of the proceedings and may apply
the credit or refund against any amount found to be due to the Department under
the Cigarette Use Tax Act or under the Cigarette Tax Act as a result of the
proceedings. The balance, if any, of the credit or refund shall be issued to
the person entitled.
c) If no tax
or penalty is due and no proceeding is pending to determine whether the
taxpayer is indebted to the Department for tax or penalty, the credit
memorandum or refund shall be issued to the claimant; or (in the case of a
credit memorandum) may be assigned and set over by the lawful holder, subject
to reasonable rules of the Department, to any other person who is subject to
the Cigarette Use Tax Act or the Cigarette Tax Act, and the amount thereof
shall be applied by the Department against any tax or penalty due or to become
due under the Cigarette Use Tax Act or under the Cigarette Tax Act from the
assignee. [35
ILCS 135/14a ]
d) As to any claim filed under this Section
with the Department on and after each January 1 and July 1, no amount of tax or
penalty erroneously paid (either in total or partial liquidation of a tax or
penalty under the Act) more than 3 years prior to January 1 and July 1,
respectively, shall be credited or refunded.
e) In case the Department determines that the
claimant is entitled to a refund, the refund shall be made only from the
appropriation as may be available for that purpose. If it appears unlikely that
the amount appropriated would permit everyone having a claim allowed during the
period covered by the appropriation to elect to receive a cash refund, the
Department will make refunds only in hardship cases (i.e., in cases in which
the claimant cannot use a credit memorandum). The two most likely situations
where this would be the case are the situation in which the claimant has
discontinued business and the situation in which the claimant will have a small
volume of liability to the Department in the foreseeable future, but receives a
large credit memorandum which it might take the claimant a long time to
liquidate by using it to pay current taxes. In these instances, the claimant
probably would have to sell the credit memorandum at a loss in order to realize
anything from it within any reasonable period of time.
f) If the Department approves a claim for
credit for cigarette tax stamps, the Department (subject to the same
limitations as those provided for in this regulation) may issue an assignable
credit memorandum or refund to the claimant or to the claimant's legal
representative.
g) The provisions
of Sections 6a, 6b and 6c of the Retailers' Occupation Tax Act, that are not
inconsistent with the Cigarette Use Tax Act, shall apply, as far as
practicable, to the subject matter of this Part to the same extent as if such
provisions were included in the Cigarette Use Tax Act.
Notes
Amended at 27 Ill. Reg. 1647, effective January 15, 2003
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