Illinois Administrative Code
Title 86 - REVENUE
Part 160 - SERVICE USE TAX
Section 160.155 - Disposition Of Credit Memoranda By Holders Thereof
Universal Citation: 86 IL Admin Code ยง 160.155
Current through Register Vol. 48, No. 38, September 20, 2024
a) Assignment Of Credit Memoranda
1) Credit memoranda issued hereunder may be
assigned or transferred only after a request for that purpose is filed with the
Department upon forms prescribed and furnished by it, and subject to the
following conditions:
A) That the assignment
is made to a person who is subject to the Service Use Tax Act, the Service
Occupation Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act, any
local occupation or use tax administered by the Department, Section 4 of the
Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
the Local Mass Transit District Act, or subsections (e), (f) and (g) of Section
4.03 of the Regional Transportation Authority Act;
B) that there is no proceeding pending to
establish an unpaid liability against the assignor pursuant to notice given of
the Department's proposal to assess an amount against him either under the
Service Occupation Tax Act, or under the Service Use Tax Act, the Retailers'
Occupation Tax Act, the Use Tax Act, any local occupation or use tax
administered by the Department, Section 4 of the Water Commission Act of 1985,
subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District
Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional
Transportation Authority Act and
C)
that there is no established assessment or admitted liability or interest or
penalty unpaid by the assignor, either under the Retailers' Occupation Tax Act,
or under the Use Tax Act, the Service Occupation Tax Act, the Service Use Tax
Act, any local occupation or use tax administered by the Department, Section 4
of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section
5.01 of the Local Mass Transit District Act, or subsections (e), (f) and (g) of
Section 4.03 of the Regional Transportation Authority Act: Provided, that if
the amount of the credit memorandum must first be applied, in whole or in part,
against an established unpaid assessment which has been issued to the
claimant-assignor, or in total or partial liquidation of an unpaid admitted tax
liability, or unpaid penalty, or unpaid amount of interest, due from the
claimant-assignor, notice to this effect shall be given the claimant-assignor
by the Department.
2) If
any balance is due such claimant-assignor, after application of the credit
memorandum in the manner and to the purposes aforesaid, such balance may be
assigned upon receipt by the Department of instructions to that effect. If
there are no unpaid established assessments or unpaid admitted tax liabilities,
or unpaid penalties, or unpaid amounts of interest, due from the
claimant-assignor, and if there are no pending proceedings as herein outlined,
pending against the claimant-assignor, and if the contemplated assignee is a
person who is subject to the Service Occupation Tax Act, the Service Use Tax
Act, Retailers' Occupation Tax Act, Use Tax Act, any local occupation or use
tax administered by the Department, Section 4 of the Water Commission Act of
1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit
District Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional
Transportation Authority Act, the request for leave to assign shall be
approved. The original credit memorandum shall be cancelled, and a new credit
memorandum shall be issued to the assignee in the amount shown on the cancelled
memorandum.
3) However, before a
credit is issued to the assignee, the amount of such credit shall be applied,
to the extent that may be necessary, in liquidation of any established unpaid
assessment which has been issued to such assignee, or in liquidation of any
unpaid penalty, or amount of interest due from such assignee, or in liquidation
of any unpaid admitted liability due from the assignee under the Service
Occupation Tax Act, the Service Use Tax Act, the Retailers' Occupation Tax Act,
the Use Tax Act, any local occupation or use tax administered by the
Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c)
and (d) of Section 5.01 of the Local Mass Transit District Act, or subsections
(e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act,
and a credit memorandum for the balance of the credit, if any, shall then be
issued to the assignee: Provided, that there is no proceeding pending against
the assignee to establish an unpaid liability against him.
4) If a proceeding to establish such an
unpaid liability is pending, the credit memorandum shall be held by the
Department until such proceeding is concluded. If such proceeding results in
the issuance of an assessment which becomes final under any of the said Acts,
the credit shall be applied by the Department, to the extent which may be
necessary, in liquidation of such assessment, and any interest that may accrue
thereon, and the balance of the credit, if any (after cancellation of the
credit memorandum applied in liquidation of such liability), shall be issued in
the form of a new credit memorandum and delivered to the person entitled to
receive delivery thereof.
b) Submission of Credit Memoranda With Tax Returns
1) Credit memoranda, in the hands
either of the original claimant or of his assignee, may be submitted to the
Department, along with Service Occupation Tax returns, Service Use Tax returns,
Retailers' Occupation Tax returns or Use Tax returns, in payment of any tax
liability or penalty or interest under the Service Occupation Tax Act, the
Service Use Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act, any
local occupation or use tax administered by the Department, Section 4 of the
Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
the Local Mass Transit District Act, or subsections (e), (f) and (g) of Section
4.03 of the Regional Transportation Authority Act, incurred by the holder of
such credit memoranda.
2) If, after
applying any such credit memorandum against the amount of tax shown to be due
by the tax return with which the credit memorandum is submitted, there is a
balance of the credit memorandum in favor of the taxpayer, the Department will
cancel the credit memorandum which the taxpayer submits with his return and
will issue and deliver to the taxpayer a new credit memorandum for such
balance. This process will be followed until the credit, to which such taxpayer
is entitled, is exhausted.
3)
However, any new credit memorandum, which is issued for a balance of credit due
the taxpayer after applying the amount of a credit memorandum to the payment of
current taxes, is subject to the prior rights of the Department to the same
extent that such prior rights take precedence when a credit memorandum is first
issued (see Section
160.150(d)
of this Part) or when leave to assign a credit memorandum is requested (see
Subsection (a) of this Section).
Disclaimer: These regulations may not be the most recent version. Illinois may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.