Section 495.130  Credits


a)         Retailers who have paid Telecommunications Excise Tax to a local exchange carrier, or other retailers, on basic line charges or other services, and who have resold those services, may take a direct deduction of such taxes without filing a claim with the Department. Consumers who have paid tax to Illinois and another jurisdiction on a particular call may file a direct claim with the Department.


b)         As to any claim for credit or refund filed with the Department on or after each January 1 and July 1, no amounts erroneously paid more than 3 years prior to

such January 1 and July 1, respectively, shall be credited or refunded, except that if both the Department and the taxpayer have agreed to an extension of time to issue a notice of tax liability under this Act, the claim may be filed at any time prior to the expiration of the period agreed upon.


c)         Beginning June 25, 2021, for any period included in a claim for credit or refund for which the statute of limitations for issuing a notice of tax liability under this Act will expire less than 6 months after the date a taxpayer files the claim for credit or refund, the statute of limitations is automatically extended for 6 months from the date it would have otherwise expired.  [35 ILCS 630/10].


d)         The claim must be accompanied by documentation which would include the billing reflecting tax charged to the taxpayer and relating the tax charges to specific calls or transactions.


e)         For example, a corporation might have its service address in Illinois and its billing address in a state which imposes tax based upon its billing address. If the same call is subject to tax in Illinois because it originated in Illinois, and was charged to a service address in Illinois, and is subject to tax in another state because it terminated in the other state, and was billed to a billing address in that other state, a credit is available in Illinois to the extent of the tax imposed by the other state, but not exceeding the tax due on that call in Illinois.


(Source:  Amended at 47 Ill. Reg. 5816, effective April 4, 2023)