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91_SB0338sam001
LRB9102972JSpcam02
1 AMENDMENT TO SENATE BILL 338
2 AMENDMENT NO. . Amend Senate Bill 338 by replacing
3 everything after the enacting clause with the following:
4 "Section 5. The State Finance Act is amended by adding
5 Section 5.490 as follows:
6 (30 ILCS 105/5.490 new)
7 Sec. 5.490. The Insurance Premium Tax Refund Fund.
8 Section 10. The Illinois Insurance Code is amended by
9 changing Section 412 as follows:
10 (215 ILCS 5/412) (from Ch. 73, par. 1024)
11 Sec. 412. Refunds; penalties; collection.
12 (1) Whenever it appears to the satisfaction of the
13 Director that because of some mistake of fact, error in
14 calculation, or erroneous interpretation of a statute of this
15 or any other state, any authorized company has paid to him,
16 pursuant to any provision of law, taxes, fees, or other
17 charges, including interest, in excess of the amount legally
18 chargeable against it, during the 6 year period immediately
19 preceding the discovery of such overpayment, he shall have
20 power to refund to such company the amount of the excess or
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1 excesses by applying the amount or amounts thereof toward the
2 payment of taxes, fees, or other charges already due and
3 shall refund the balance to the company, or which may
4 thereafter become due from that company until such excess or
5 excesses have been fully refunded, or, at his discretion, to
6 make a cash refund.
7 Amounts determined by the taxpayer or the Department to
8 be an overpayment of a tax may, at the taxpayer's election,
9 be credited against the estimated tax for any taxable year.
10 For overpayments of taxes paid on or after January 1,
11 1999, interest shall be allowed and paid by the Department to
12 taxpayers at the rate prescribed under subsection (4) for
13 deficiencies in tax payments. No interest shall be paid upon
14 an overpayment of tax if the overpayment is refunded or a
15 credit is approved within 90 days after the last date
16 prescribed for filing the original return, within 90 days
17 after the receipt of the return, or within 90 days after the
18 date of overpayment, whichever date is latest. Interest on
19 amounts refunded or credited pursuant to the filing of an
20 amended return or claim for refund shall be determined from
21 the due date of the original return or the date of
22 overpayment, whichever is later, to the date of payment by
23 the Department.
24 A claim for refund shall be filed with the Department in
25 writing and shall state the specific grounds upon which it is
26 founded before the expiration of the applicable limitation
27 period specified in this subsection or before the expiration
28 of 6 months after a jeopardy or deficiency determination
29 becomes final, whichever period expires later. If the tax
30 return reflects an overpayment or credits in excess of the
31 tax, the declaration of that fact on the return constitutes a
32 claim for refund. If the Department agrees the claim is
33 valid, the amount of overpayment, penalties, and interest
34 shall be first applied to any known liability, and the
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1 excess, if any, shall be refunded to the taxpayer or, at the
2 taxpayer's request, credited against any current or
3 subsequent tax liability. Refunded amounts shall be paid
4 only if and to the extent that (i) the amounts exceed $100
5 and (ii) the amounts cannot be fully offset against the
6 taxpayer's next prepayment of tax. Refunds shall be paid from
7 the Insurance Premium Tax Refund Fund, a special Fund hereby
8 created in the State treasury.
9 (2) When any insurance company or any surplus line
10 producer fails to file any tax return required under Sections
11 408.1, 409, 444, 444.1 and 445 of this Code or Section 12 of
12 the Fire Investigation Act on the date prescribed, including
13 any extensions, there shall be added as a penalty $200 or 5%
14 of the amount of such tax, whichever is greater, for each
15 month or part of a month of failure to file, the entire
16 penalty not to exceed $1,000 or 25% of the tax due, whichever
17 is greater.
18 (3) (a) When any insurance company or any surplus line
19 producer fails to pay the full amount due under the
20 provisions of this Section, Sections 408.1, 409, 444, 444.1
21 or 445 of this Code, or Section 12 of the Fire Investigation
22 Act, there shall be added to the amount due as a penalty an
23 amount equal to 5% of the deficiency.
24 (b) If such failure to pay is determined by the Director
25 to be wilful, after a hearing under Sections 402 and 403,
26 there shall be added to the tax as a penalty an amount equal
27 to the greater of 25% of the deficiency or 5% of the amount
28 due and unpaid for each month or part of a month that the
29 deficiency remains unpaid commencing with the date that the
30 amount becomes due. Such amount shall be in lieu of any
31 determined under paragraph (a).
32 (4) Any insurance company or any surplus line producer
33 which fails to pay the full amount due under this Section or
34 Sections 408.1, 409, 444, 444.1 or 445 of this Code, or
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1 Section 12 of the Fire Investigation Act is liable, in
2 addition to the tax and any penalties, for interest on such
3 deficiency at the rate of 12% per annum, or at such higher
4 adjusted rates as are or may be established under subsection
5 (b) of Section 6621 of the Internal Revenue Code, from the
6 date that payment of any such tax was due, determined without
7 regard to any extensions, to the date of payment of such
8 amount.
9 (5) The Director, through the Attorney General, may
10 institute an action in the name of the People of the State of
11 Illinois, in any court of competent jurisdiction, for the
12 recovery of the amount of such taxes, fees, and penalties
13 due, and prosecute the same to final judgment, and take such
14 steps as are necessary to collect the same.
15 (6) In the event that the certificate of authority of a
16 foreign or alien company is revoked for any cause or the
17 company withdraws from this State prior to the renewal date
18 of the certificate of authority as provided in Section 114,
19 the company may recover the amount of any such tax paid in
20 advance. Except as provided in this subsection, no revocation
21 or withdrawal excuses payment of or constitutes grounds for
22 the recovery of any taxes or penalties imposed by this Code.
23 (7) When an insurance company or domestic affiliated
24 group fails to pay the full amount of any fee of $100 or more
25 due under Section 408 of this Code, there shall be added to
26 the amount due as a penalty the greater of $50 or an amount
27 equal to 5% of the deficiency for each month or part of a
28 month that the deficiency remains unpaid.
29 (Source: P.A. 87-108.)".