HB4647 98TH GENERAL ASSEMBLY

  
  

 


 
98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4647

 

Introduced , by Rep. Marcus C. Evans, Jr.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/911  from Ch. 120, par. 9-911

    Amends the Illinois Income Tax Act. Provides that the limitations period for claims for refunds shall be suspended during any period when the individual seeking the refund is financially disabled. Defines "financial disability". Provides that 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. Effective immediately.


LRB098 15920 HLH 50967 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4647LRB098 15920 HLH 50967 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 911 as follows:
 
6    (35 ILCS 5/911)  (from Ch. 120, par. 9-911)
7    Sec. 911. Limitations on Claims for Refund.
8    (a) In general. Except as otherwise provided in this Act:
9        (1) A claim for refund shall be filed not later than 3
10    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 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
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.
20    (b) Federal changes.
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.
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.
22    (c) Extension by agreement. Where, before the expiration of
23the time prescribed in this section for the filing of a claim
24for refund, both the Department and the claimant shall have
25consented in writing to its filing after such time, such claim
26may be filed at any time prior to the expiration of the period

 

 

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1agreed upon. The period so agreed upon may be extended by
2subsequent agreements in writing made before the expiration of
3the period previously agreed upon. In the case of a taxpayer
4who is a partnership, Subchapter S corporation, or trust and
5who enters into an agreement with the Department pursuant to
6this subsection on or after January 1, 2003, a claim for refund
7may be filed by the partners, shareholders, or beneficiaries of
8the taxpayer at any time prior to the expiration of the period
9agreed upon. Any refund allowed pursuant to the claim, however,
10shall be limited to the amount of any overpayment of tax due
11under this Act that results from recomputation of items of
12income, deduction, credits, or other amounts of the taxpayer
13that are taken into account by the partner, shareholder, or
14beneficiary in computing its liability under this Act.
15    (d) Limit on amount of credit or refund.
16        (1) Limit where claim filed within 3-year period. If
17    the claim was filed by the claimant during the 3-year
18    period prescribed in subsection (a), the amount of the
19    credit or refund shall not exceed the portion of the tax
20    paid within the period, immediately preceding the filing of
21    the claim, equal to 3 years plus the period of any
22    extension of time for filing the return.
23        (2) Limit where claim not filed within 3-year period.
24    If the claim was not filed within such 3-year period, the
25    amount of the credit or refund shall not exceed the portion
26    of the tax paid during the one year immediately preceding

 

 

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1    the filing of the claim.
2    (e) Time return deemed filed. For purposes of this section
3a tax return filed before the last day prescribed by law for
4the filing of such return (including any extensions thereof)
5shall be deemed to have been filed on such last day.
6    (f) No claim for refund or credit based on the taxpayer's
7taking a credit for estimated tax payments as provided by
8Section 601(b)(2) or for any amount paid by a taxpayer pursuant
9to Section 602(a) or for any amount of credit for tax withheld
10pursuant to Article 7 may be filed unless a return was filed
11for the tax year not more than 3 years after the due date, as
12provided by Section 505, of the return which was required to be
13filed relative to the taxable year for which the payments were
14made or for which the tax was withheld. The changes in this
15subsection (f) made by this amendatory Act of 1987 shall apply
16to all taxable years ending on or after December 31, 1969.
17    (g) Special Period of Limitation with Respect to Net Loss
18Carrybacks. If the claim for refund relates to an overpayment
19attributable to a net loss carryback as provided by Section
20207, in lieu of the 3 year period of limitation prescribed in
21subsection (a), the period shall be that period which ends 3
22years after the time prescribed by law for filing the return
23(including extensions thereof) for the taxable year of the net
24loss which results in such carryback (or, on and after August
2513, 1999, with respect to a change in the carryover of an
26Article 2 credit to a taxable year resulting from the carryback

 

 

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1of a Section 207 loss incurred in a taxable year beginning on
2or after January 1, 2000, the period shall be that period that
3ends 3 years after the time prescribed by law for filing the
4return (including extensions of that time) for that subsequent
5taxable year), or the period prescribed in subsection (c) in
6respect of such taxable year, whichever expires later. In the
7case of such a claim, the amount of the refund may exceed the
8portion of the tax paid within the period provided in
9subsection (d) to the extent of the amount of the overpayment
10attributable to such carryback. On and after August 13, 1999,
11if the claim for refund relates to an overpayment attributable
12to the carryover of an Article 2 credit, or of a Section 207
13loss, earned, incurred (in a taxable year beginning on or after
14January 1, 2000), or used in a year for which a notification of
15a change affecting federal taxable income must be filed under
16subsection (b) of Section 506, the claim may be filed within
17the period prescribed in paragraph (1) of subsection (b) in
18respect of the year for which the notification is required. In
19the case of such a claim, the amount of the refund may exceed
20the portion of the tax paid within the period provided in
21subsection (d) to the extent of the amount of the overpayment
22attributable to the recomputation of the taxpayer's Article 2
23credits, or Section 207 loss, earned, incurred, or used in the
24taxable year for which the notification is given.
25    (h) Claim for refund based on net loss. On and after August
2623, 2002, no claim for refund shall be allowed to the extent

 

 

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1the refund is the result of an amount of net loss incurred in
2any taxable year ending prior to December 31, 2002 under
3Section 207 of this Act that was not reported to the Department
4within 3 years of the due date (including extensions) of the
5return for the loss year on either the original return filed by
6the taxpayer or on amended return or to the extent that the
7refund is the result of an amount of net loss incurred in any
8taxable year under Section 207 for which no return was filed
9within 3 years of the due date (including extensions) of the
10return for the loss year.
11    (i) Periods of limitation suspended while taxpayer is
12unable to manage financial affairs due to disability. In the
13case of an individual, the running of the periods specified in
14this Section shall be suspended during any period when that
15individual is financially disabled.
16    For purposes of this subsection (i), an individual is
17financially disabled if that individual is unable to manage his
18or her financial affairs by reason of a medically determinable
19physical or mental impairment of the individual that can be
20expected to result in death, or which has lasted or can be
21expected to last for a continuous period of not less than 12
22months.
23    An individual shall not be treated as financially disabled
24during any period when that individual's spouse or any other
25person is authorized to act on behalf of that individual with
26respect to financial matters.

 

 

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1(Source: P.A. 97-507, eff. 8-23-11.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.