Refund Claims for RAR Liabilities Paid Under Amnesty

              The purpose of this bulletin is to clarify
when a taxpayer may file a claim for refund
for liabilities that were paid under the
Illinois Department of Revenue’s Amnesty
program that was held October 1, 2003,
through November 17, 2003.
Many taxpayers filed amended returns and
reported federal changes that had not
become final in order to avoid the doubling
of penalties and interest as a result of not
paying liabilities during the amnesty period,
with the understanding that they would be
able to claim a refund once the federal
audit was completed.
What is the normal statute of
limitations for filing a claim for
refund?
The Illinois Income Tax Act (IITA) specifies
that refund claims must be within the latter
of
three years from the date the
taxpayer’s original return was filed for
the taxable year, or
one year after a payment was made.
Can the statute of limitations
for refunds be extended?
Yes. The department may enter into an
agreement with a taxpayer to extend the
period for filing a refund claim.
However, if a refund claim is not filed within
the statutory or extended time frame, no
refund may be paid.
How are the statute of
limitations and extensions
affected by the amnesty
program?
The rules for the amnesty program do not
make exceptions for the existing rules. Any
taxpayer that paid a liability under the
amnesty program is eligible to file a claim
for refund within the limitations of the IITA.
I am under audit for a year that
I made an amnesty payment.
Can I file a claim for refund?
Yes. If you are currently under audit for the
year you made an amnesty payment, you
should file an extension agreement with your
auditor before the limitations period for filing
a refund claim has expired.
Taxpayers who have already entered into an
extension agreement for a year that an
amnesty payment was made will be able to
file refund claims or further extensions
covering their amnesty payments at any time
before the existing agreement expires.
If I am not under audit, but
believe that I have overpaid my
liability for an amnesty year,
can I file a claim for refund?
Yes. However, taxpayers who are not
currently under Illinois audit must enter into a
written agreement with the department to
extend the statute of limitations, or file a
claim for refund within the statute of limita-tions
period.
You may contact the Illinois Department of
Revenue, Legal Services Office at 217/524-
3951 for more information.
What forms should I file?
There are no special forms to file in order to
enter into a written agreement to extend the
statute of limitations
If you are filing a claim for refund, you must
file the correct amended return. If you are
unsure what amended return to use, you can
contact our 24-hour forms order line listed on
the front of this bulletin.
What if my claim for refund is
denied?
If a refund claim is denied, you must file a
protest within the statutory period in order
maintain your rights to the refund.
Refund Claims for RAR Liabilities Paid Under Amnesty
FY 2005-10
November 2004
Illinois Department of Revenue
Informational Bulletin
For information
or forms...
To:
All tax professionals and taxpayers who paid a tax liability under
amnesty and expect a refund based on anticipated changes to
federal liabilities.
Call us at:
1 800 732-8866 or
217 782-3336
Call our TDD
(telecommunications device
for the deaf) at:
1 800 544-5304
Write us at:
Illinois Department of Revenue
P.O. Box 19044
Springfield, IL 62794-9044
Visit our Web site at:
www.ILtax.com
Call
our 24-hour
Forms Order Line at:
1 800 356-6302
Brian A. Hamer
Director of Revenue
Printed by authority of the State of Illinois
11/04 - P.O. Number 2050578
This bulletin is written to
inform you of recent
changes; it does not replace
statutes, rules and regula-tions,
or court decisions.