Sente Advances Legislation Forcing State to Improve Their Business Tax Return Policies

SPRINGFIELD, Ill. – State Rep. Carol Sente, D-Vernon Hills, recently passed legislation out of the House Revenue and Finance Committee to help small businesses and individuals that pay a quarterly estimated tax payment with their tax refund process.

"As a former small business owner, I understand the frustrations felt by the business community as they work to navigate some of the state's impractical policies," Sente said. "If we want to spur economic development in Illinois, we need to start by carefully reviewing the laws currently on the books and work towards amending those that are not business-friendly."

House Bill 5564 would allow small businesses and taxpayers to apply their unpaid tax refunds towards a subsequent taxable period on their original or amended return. Currently, Illinois businesses have the ability to choose for an income tax refund to be applied toward a future income tax liability, but the Illinois Department of Revenue has the sole discretion to choose whether they will allow the practice or not in each case. HB 5564 removes the Department's discretion and forces them to honor the taxpayer's request.

“In past years, tax refunds have been held by the state for extended periods of time and used like a bank, which is unacceptable," Sente said. "This measure promotes economic growth and allows Illinois businesses and taxpayers to be fairly reunited with their earnings."