[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] |
91_HB3467ham001
LRB9110144SMdvam01
1 AMENDMENT TO HOUSE BILL 3467
2 AMENDMENT NO. . Amend House Bill 3467 by replacing
3 the title with the following:
4 "AN ACT to amend the Uniform Penalty and Interest Act by
5 changing Section 3-2."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Uniform Penalty and Interest Act is
9 amended by changing Sections 3-2 as follows:
10 (35 ILCS 735/3-2) (from Ch. 120, par. 2603-2)
11 Sec. 3-2. Interest.
12 (a) Interest paid by the Department of Revenue to
13 taxpayers and interest charged to taxpayers by the Department
14 of Revenue shall be paid at the annual rate determined by the
15 Department of Revenue. That rate shall be the underpayment
16 rate established under Section 6621 of the Internal Revenue
17 Code.
18 (b) The interest rate shall be adjusted on a semiannual
19 basis, on January 1 and July 1, based upon the underpayment
20 rate going into effect on that January 1 or July 1 under
21 Section 6621 of the Internal Revenue Code.
-2- LRB9110144SMdvam01
1 (c) Interest shall be simple interest calculated on a
2 daily basis. Interest shall accrue upon tax and penalty due.
3 If notice and demand is made for the payment of any amount of
4 tax due and if the amount due is paid within 30 days after
5 the date of such notice and demand, interest under this
6 Section on the amount so paid shall not be imposed for the
7 period after the date of the notice and demand.
8 (d) No interest shall be paid upon any overpayment of
9 tax if the overpayment is refunded or a credit approved
10 within 90 days after the last date prescribed for filing the
11 original return, or within 90 days of the receipt of the
12 processable return, or within 90 days after the date of
13 overpayment, whichever date is latest, as determined without
14 regard to processing time by the Comptroller or without
15 regard to the date on which the credit is applied to the
16 taxpayer's account. In order for an original return to be
17 processable for purposes of this Section, it must be in the
18 form prescribed or approved by the Department, signed by the
19 person authorized by law, and contain all information,
20 schedules, and support documents necessary to determine the
21 tax due and to make allocations of tax as prescribed by law.
22 For the purposes of computing interest, a return shall be
23 deemed to be processable unless the Department notifies the
24 taxpayer that the return is not processable within 90 days
25 after the receipt of the return; however, interest shall not
26 accumulate for the period following this date of notice.
27 Interest on amounts refunded or credited pursuant to the
28 filing of an amended return or claim for refund shall be
29 determined from the due date of the original return or the
30 date of overpayment, whichever is later, to the date of
31 payment by the Department without regard to processing time
32 by the Comptroller or the date of credit by the Department or
33 without regard to the date on which the credit is applied to
34 the taxpayer's account. If a claim for refund relates to an
-3- LRB9110144SMdvam01
1 overpayment attributable to a net loss carryback as provided
2 by Section 207 of the Illinois Income Tax Act, the date of
3 overpayment shall be the last day of the taxable year in
4 which the loss was incurred.
5 (e) Interest on erroneous refunds. Any portion of the
6 tax imposed by an Act to which this Act is applicable or any
7 interest or penalty which has been erroneously refunded and
8 which is recoverable by the Department shall bear interest
9 from the date of payment of the refund. However, no interest
10 will be charged if the erroneous refund is for an amount less
11 than $500 and is due to a mistake of the Department.
12 (Source: P.A. 89-379, eff. 1-1-96.)".