Form Mf 05-2 - Motor Fuel Use Tax - Dyed-Undyed Diesel Fuel (Off Road Usage) (Page 5 of 5) in pdf

Form Mf 05-2 - Motor Fuel Use Tax - Dyed-Undyed Diesel Fuel (Off Road Usage) Page 5

The taxpayer’s contention that it should receive a refund of the tax paid on the

fuel that was not reported on the supplier’s tax return is also not a basis for allowing the

claim. Although section 13 provides a longer time period for filing claims of non-

suppliers, the time period is not based on the form on which the fuel is initially reported.

The section distinguishes between claims filed by distributors or suppliers and all other

claims. The taxpayer is a supplier, and therefore the time period for filing its claims is

one year. Whether the fuel is reported on the supplier’s return is not a distinction that is

relevant under section 13. Because the taxpayer is a supplier, its claim for a refund of tax

paid on all of its fuel should have been filed within one year of when the tax was paid.

The purpose of the limitations period is to ensure that parties exercise reasonable

diligence in asserting their claims. Even though a taxpayer might otherwise be entitled to

a refund, the statute of limitations prohibits the Department from issuing a refund that

was not properly requested within the appropriate time period. (See Dow Chemical Co.

v. Department of Revenue, 224 Ill.App.3d 263 (1

Dist. 1991). Although this result may

seem severe, the law does not allow for a different conclusion.

Recommendation:

Because the taxpayer did not file a claim for refund within the limitations period,

the claim must be denied.

Linda Olivero

Administrative Law Judge

Enter: August 12, 2005

Form Mf 05-2 - Motor Fuel Use Tax - Dyed-Undyed Diesel Fuel (Off Road Usage) Page 5