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1 | | AN ACT concerning revenue.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Uniform Penalty and Interest Act is amended |
5 | | by changing Section 3-3 as follows:
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6 | | (35 ILCS 735/3-3) (from Ch. 120, par. 2603-3)
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7 | | Sec. 3-3. Penalty for failure to file or pay.
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8 | | (a) This subsection (a) is applicable before January 1, |
9 | | 1996. A penalty
of 5% of the tax required to be shown due on a |
10 | | return shall be
imposed for failure to file the tax return on |
11 | | or before the due date prescribed
for filing determined with |
12 | | regard for any extension of time for filing
(penalty
for late |
13 | | filing or nonfiling). If any unprocessable return is corrected |
14 | | and
filed within 21 days after notice by the Department, the |
15 | | late filing or
nonfiling penalty shall not apply. If a penalty |
16 | | for late filing or nonfiling
is imposed in addition to a |
17 | | penalty for late payment, the total penalty due
shall be the |
18 | | sum of the late filing penalty and the applicable late payment
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19 | | penalty.
Beginning on the effective date of this amendatory Act |
20 | | of 1995, in the case
of any type of tax return required to be |
21 | | filed more frequently
than annually, when the failure to file |
22 | | the tax return on or before the
date prescribed for filing |
23 | | (including any extensions) is shown to be
nonfraudulent and has |
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1 | | not occurred in the 2 years immediately preceding the
failure |
2 | | to file on the prescribed due date, the penalty imposed by |
3 | | Section
3-3(a) shall be abated.
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4 | | (a-5) This subsection (a-5) is applicable to returns due on |
5 | | and after
January 1, 1996 and on or before December 31, 2000.
A |
6 | | penalty equal to 2% of
the tax required to be shown due on a |
7 | | return, up to a maximum amount of $250,
determined without |
8 | | regard to any part of the tax that is paid on time or by any
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9 | | credit that was properly allowable on the date the return was |
10 | | required to be
filed, shall be
imposed for failure to file the |
11 | | tax return on or before the due date prescribed
for filing |
12 | | determined with regard for any extension of time for filing.
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13 | | However, if any return is not filed within 30 days after notice |
14 | | of nonfiling
mailed by the Department to the last known address |
15 | | of the taxpayer contained in
Department records, an additional |
16 | | penalty amount shall be imposed equal to the
greater of $250 or |
17 | | 2% of the tax shown on the return. However, the additional
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18 | | penalty amount may not exceed $5,000 and is determined without |
19 | | regard to any
part of the tax that is paid on time or by any |
20 | | credit that was properly
allowable on the date the return was |
21 | | required to be filed (penalty
for late filing or nonfiling). If |
22 | | any unprocessable return is corrected and
filed within 30 days |
23 | | after notice by the Department, the late filing or
nonfiling |
24 | | penalty shall not apply. If a penalty for late filing or |
25 | | nonfiling
is imposed in addition to a penalty for late payment, |
26 | | the total penalty due
shall be the sum of the late filing |
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1 | | penalty and the applicable late payment
penalty.
In the case of |
2 | | any type of tax return required to be filed more frequently
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3 | | than annually, when the failure to file the tax return on or |
4 | | before the
date prescribed for filing (including any |
5 | | extensions) is shown to be
nonfraudulent and has not occurred |
6 | | in the 2 years immediately preceding the
failure to file on the |
7 | | prescribed due date, the penalty imposed by Section
3-3(a-5) |
8 | | shall be abated.
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9 | | (a-10) This subsection (a-10) is applicable to returns due |
10 | | on and after
January 1, 2001.
A penalty equal to 2% of
the tax |
11 | | required to be shown due on a return, up to a maximum amount of |
12 | | $250,
reduced by any tax that is
paid on time or by any
credit |
13 | | that was properly allowable on the date the return was required |
14 | | to be
filed, shall be
imposed for failure to file the tax |
15 | | return on or before the due date prescribed
for filing |
16 | | determined with regard for any extension of time for filing.
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17 | | However, if any return is not filed within 30 days after notice |
18 | | of nonfiling
mailed by the Department to the last known address |
19 | | of the taxpayer contained in
Department records, an additional |
20 | | penalty amount shall be imposed equal to the
greater of $250 or |
21 | | 2% of the tax shown on the return. However, the additional
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22 | | penalty amount may not exceed $5,000 and is determined without |
23 | | regard to any
part of the tax that is paid on time or by any |
24 | | credit that was properly
allowable on the date the return was |
25 | | required to be filed (penalty
for late filing or nonfiling). If |
26 | | any unprocessable return is corrected and
filed within 30 days |
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1 | | after notice by the Department, the late filing or
nonfiling |
2 | | penalty shall not apply. If a penalty for late filing or |
3 | | nonfiling
is imposed in addition to a penalty for late payment, |
4 | | the total penalty due
shall be the sum of the late filing |
5 | | penalty and the applicable late payment
penalty.
In the case of |
6 | | any type of tax return required to be filed more frequently
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7 | | than annually, when the failure to file the tax return on or |
8 | | before the
date prescribed for filing (including any |
9 | | extensions) is shown to be
nonfraudulent and has not occurred |
10 | | in the 2 years immediately preceding the
failure to file on the |
11 | | prescribed due date, the penalty imposed by this subsection |
12 | | (a-10) Section
3-3(a-10) shall be abated. This subsection |
13 | | (a-10) does not apply to transaction reporting returns required |
14 | | by Section 3 of the Retailers' Occupation Tax Act and Section 9 |
15 | | of the Use Tax Act that would not, when properly prepared and |
16 | | filed, result in the imposition of a tax; however, those |
17 | | returns are subject to the penalty set forth in subsection |
18 | | (a-15).
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19 | | (a-15) A In addition to any other penalties imposed by law |
20 | | for the failure to file a return, a penalty of $100 shall be |
21 | | imposed for failure to file a transaction reporting return |
22 | | required by Section 3 of the Retailers' Occupation Tax Act and |
23 | | Section 9 of the Use Tax Act on or before the date a return is |
24 | | required to be filed ; provided, however, that this . This |
25 | | penalty shall be imposed only if regardless of whether the |
26 | | return when properly prepared and filed would not result in the |
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1 | | imposition of a tax. If such a transaction reporting return |
2 | | would result in the imposition of a tax when properly prepared |
3 | | and filed, then that return is subject to the provisions of |
4 | | subsection (a-10). |
5 | | (b) This subsection is applicable before January 1, 1998.
A |
6 | | penalty of 15% of the tax shown on the return or the tax |
7 | | required to
be shown due on the return shall be imposed for |
8 | | failure to pay:
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9 | | (1) the tax shown due on the return on or before the |
10 | | due date prescribed
for payment of that tax, an amount of |
11 | | underpayment of estimated tax, or an
amount that is |
12 | | reported in an amended return other than an amended return
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13 | | timely filed as required by subsection (b) of Section 506 |
14 | | of the Illinois
Income Tax Act (penalty for late payment or |
15 | | nonpayment of admitted liability);
or
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16 | | (2) the full amount of any tax required to be shown due |
17 | | on a
return and which is not shown (penalty for late |
18 | | payment or nonpayment of
additional liability), within 30 |
19 | | days after a notice of arithmetic error,
notice and demand, |
20 | | or a final assessment is issued by the Department.
In the |
21 | | case of a final assessment arising following a protest and |
22 | | hearing,
the 30-day period shall not begin until all |
23 | | proceedings in court for review of
the final assessment |
24 | | have terminated or the period for obtaining a review has
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25 | | expired without proceedings for a review having been |
26 | | instituted. In the case
of a notice of tax liability that |
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1 | | becomes a final assessment without a protest
and hearing, |
2 | | the penalty provided in this paragraph (2) shall be imposed |
3 | | at the
expiration of the period provided for the filing of |
4 | | a protest.
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5 | | (b-5) This subsection is applicable to returns due on and |
6 | | after January
1, 1998 and on or before December 31, 2000.
A |
7 | | penalty of 20% of the tax shown on the return or the tax |
8 | | required to be
shown due on the return shall be imposed for |
9 | | failure to
pay:
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10 | | (1) the tax shown due on the return on or before the |
11 | | due date prescribed
for payment of that tax, an amount of |
12 | | underpayment of estimated tax, or an
amount that is |
13 | | reported in an amended return other than an amended return
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14 | | timely filed as required by subsection (b) of Section 506 |
15 | | of the Illinois
Income Tax Act (penalty for late payment or |
16 | | nonpayment of admitted liability);
or
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17 | | (2) the full amount of any tax required to be shown due |
18 | | on a
return and which is not shown (penalty for late |
19 | | payment or nonpayment of
additional liability), within 30 |
20 | | days after a notice of arithmetic error,
notice and demand, |
21 | | or a final assessment is issued by the Department.
In the |
22 | | case of a final assessment arising following a protest and |
23 | | hearing,
the 30-day period shall not begin until all |
24 | | proceedings in court for review of
the final assessment |
25 | | have terminated or the period for obtaining a review has
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26 | | expired without proceedings for a review having been |
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1 | | instituted. In the case
of a notice of tax liability that |
2 | | becomes a final assessment without a protest
and hearing, |
3 | | the penalty provided in this paragraph (2) shall be imposed |
4 | | at the
expiration of the period provided for the filing of |
5 | | a protest.
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6 | | (b-10) This subsection (b-10) is applicable to returns due |
7 | | on and after
January 1, 2001 and on or before December 31, |
8 | | 2003. A penalty shall be
imposed for failure to pay:
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9 | | (1) the tax shown due on a return on or before the due |
10 | | date prescribed for
payment of that tax, an amount of |
11 | | underpayment of estimated tax, or an amount
that is |
12 | | reported in an amended return other than an amended return |
13 | | timely filed
as required by subsection (b) of Section 506 |
14 | | of the Illinois Income Tax Act
(penalty for late payment or |
15 | | nonpayment of admitted liability). The amount of
penalty |
16 | | imposed under this subsection (b-10)(1) shall be 2% of any |
17 | | amount that
is paid no later than 30 days after the due |
18 | | date, 5% of any amount that is
paid later than 30 days |
19 | | after the due date and not later than 90 days after
the due |
20 | | date, 10% of any amount that is paid later than 90 days |
21 | | after the due
date and not later than 180 days after the |
22 | | due date, and 15% of any amount that
is paid later than 180 |
23 | | days after the
due date.
If notice and demand is made for |
24 | | the payment of any amount of tax due and if
the amount due |
25 | | is paid within 30 days after the date of the notice and |
26 | | demand,
then the penalty for late payment or nonpayment of |
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1 | | admitted liability under
this subsection (b-10)(1) on the |
2 | | amount so paid shall not accrue for the period
after the |
3 | | date of the notice and demand.
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4 | | (2) the full amount of any tax required to be shown due |
5 | | on a return and
that is not shown (penalty for late payment |
6 | | or nonpayment of additional
liability), within 30 days |
7 | | after a notice of arithmetic error, notice and
demand, or a |
8 | | final assessment is issued by the Department. In the case |
9 | | of a
final assessment arising following a protest and |
10 | | hearing, the 30-day period
shall not begin until all |
11 | | proceedings in court for review of the final
assessment |
12 | | have terminated or the period for obtaining a review has |
13 | | expired
without proceedings for a review having been |
14 | | instituted. The amount of penalty
imposed under this |
15 | | subsection (b-10)(2) shall be 20% of any amount that is not
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16 | | paid within the 30-day period. In the case of a notice of |
17 | | tax liability that
becomes a final assessment without a |
18 | | protest and hearing, the penalty provided
in this |
19 | | subsection (b-10)(2) shall be imposed at the expiration of |
20 | | the period
provided for the filing of a protest.
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21 | | (b-15) This subsection (b-15) is applicable to returns due |
22 | | on and after
January 1, 2004 and on or before December 31, |
23 | | 2004. A penalty shall be imposed for failure to pay the tax |
24 | | shown due or
required to be shown due on a return on or before |
25 | | the due date prescribed for
payment of that tax, an amount of |
26 | | underpayment of estimated tax, or an amount
that is reported in |
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1 | | an amended return other than an amended return timely filed
as |
2 | | required by subsection (b) of Section 506 of the Illinois |
3 | | Income Tax Act
(penalty for late payment or nonpayment of |
4 | | admitted liability). The amount of
penalty imposed under this |
5 | | subsection (b-15)(1) shall be 2% of any amount that
is paid no |
6 | | later than 30 days after the due date, 10% of any amount that |
7 | | is
paid later than 30 days after the due date and not later |
8 | | than 90 days after the
due date, 15% of any amount that is paid |
9 | | later than 90 days after the due date
and not later than 180 |
10 | | days after the due date, and 20% of any amount that is
paid |
11 | | later than 180 days after the due date. If notice and demand is |
12 | | made for
the payment of any amount of tax due and if the amount |
13 | | due is paid within 30
days after the date of this notice and |
14 | | demand, then the penalty for late
payment or nonpayment of |
15 | | admitted liability under this subsection (b-15)(1) on
the |
16 | | amount so paid shall not accrue for the period after the date |
17 | | of the notice
and demand.
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18 | | (b-20) This subsection (b-20) is applicable to returns due |
19 | | on and after January 1, 2005. |
20 | | (1) A penalty shall be imposed for failure to pay, |
21 | | prior to the due date for payment, any amount of tax the |
22 | | payment of which is required to be made prior to the filing |
23 | | of a return or without a return (penalty for late payment |
24 | | or nonpayment of estimated or accelerated tax). The amount |
25 | | of penalty imposed under this paragraph (1) shall be 2% of |
26 | | any amount that is paid no later than 30 days after the due |
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1 | | date and 10% of any amount that is paid later than 30 days |
2 | | after the due date. |
3 | | (2) A penalty shall be imposed for failure to pay the |
4 | | tax shown due or required to be shown due on a return on or |
5 | | before the due date prescribed for payment of that tax or |
6 | | an amount that is reported in an amended return other than |
7 | | an amended return timely filed as required by subsection |
8 | | (b) of Section 506 of the Illinois Income Tax Act (penalty |
9 | | for late payment or nonpayment of tax). The amount of |
10 | | penalty imposed under this paragraph (2) shall be 2% of any |
11 | | amount that is paid no later than 30 days after the due |
12 | | date, 10% of any amount that is paid later than 30 days |
13 | | after the due date and prior to the date the Department has |
14 | | initiated an audit or investigation of the taxpayer, and |
15 | | 20% of any amount that is paid after the date the |
16 | | Department has initiated an audit or investigation of the |
17 | | taxpayer; provided that the penalty shall be reduced to 15% |
18 | | if the entire amount due is paid not later than 30 days |
19 | | after the Department has provided the taxpayer with an |
20 | | amended return (following completion of an occupation, |
21 | | use, or excise tax audit) or a form for waiver of |
22 | | restrictions on assessment (following completion of an |
23 | | income tax audit); provided further that the reduction to |
24 | | 15% shall be rescinded if the taxpayer makes any claim for |
25 | | refund or credit of the tax, penalties, or interest |
26 | | determined to be due upon audit, except in the case of a |
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1 | | claim filed pursuant to subsection (b) of Section 506 of |
2 | | the Illinois Income Tax Act or to claim a carryover of a |
3 | | loss or credit, the availability of which was not |
4 | | determined in the audit. For purposes of this paragraph |
5 | | (2), any overpayment reported on an original return that |
6 | | has been allowed as a refund or credit to the taxpayer |
7 | | shall be deemed to have not been paid on or before the due |
8 | | date for payment and any amount paid under protest pursuant |
9 | | to the provisions of the State Officers and Employees Money |
10 | | Disposition Act shall be deemed to have been paid after the |
11 | | Department has initiated an audit and more than 30 days |
12 | | after the Department has provided the taxpayer with an |
13 | | amended return (following completion of an occupation, |
14 | | use, or excise tax audit) or a form for waiver of |
15 | | restrictions on assessment (following completion of an |
16 | | income tax audit). |
17 | | (3) The penalty imposed under this subsection (b-20) |
18 | | shall be deemed assessed at the time the tax upon which the |
19 | | penalty is computed is assessed, except that, if the |
20 | | reduction of the penalty imposed under paragraph (2) of |
21 | | this subsection (b-20) to 15% is rescinded because a claim |
22 | | for refund or credit has been filed, the increase in |
23 | | penalty shall be deemed assessed at the time the claim for |
24 | | refund or credit is filed.
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25 | | (c) For purposes of the late payment penalties, the basis |
26 | | of the penalty
shall be the tax shown or required to be shown |
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1 | | on a return, whichever is
applicable, reduced by any part of |
2 | | the tax which is paid on time and by any
credit which was |
3 | | properly allowable on the date the return was required to
be |
4 | | filed.
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5 | | (d) A penalty shall be applied to the tax required to be |
6 | | shown even if
that amount is less than the tax shown on the |
7 | | return.
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8 | | (e) This subsection (e) is applicable to returns due before |
9 | | January 1,
2001.
If both a subsection (b)(1) or (b-5)(1) |
10 | | penalty and a subsection (b)(2)
or (b-5)(2) penalty are |
11 | | assessed against the same return, the subsection
(b)(2) or |
12 | | (b-5)(2) penalty shall
be assessed against only the additional |
13 | | tax found to be due.
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14 | | (e-5) This subsection (e-5) is applicable to returns due on |
15 | | and after
January 1, 2001.
If both a subsection (b-10)(1) |
16 | | penalty and a subsection
(b-10)(2) penalty are assessed against |
17 | | the same return,
the subsection (b-10)(2) penalty shall be |
18 | | assessed against
only the additional tax found to be due.
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19 | | (f) If the taxpayer has failed to file the return, the |
20 | | Department shall
determine the correct tax according to its |
21 | | best judgment and information,
which amount shall be prima |
22 | | facie evidence of the correctness of the tax due.
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23 | | (g) The time within which to file a return or pay an amount |
24 | | of tax due
without imposition of a penalty does not extend the |
25 | | time within which to
file a protest to a notice of tax |
26 | | liability or a notice of deficiency.
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1 | | (h) No return shall be determined to be unprocessable |
2 | | because of the
omission of any information requested on the |
3 | | return pursuant to Section
2505-575
of the Department of |
4 | | Revenue Law (20 ILCS 2505/2505-575).
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5 | | (i) If a taxpayer has a tax liability for the taxable |
6 | | period ending after June 30,
1983 and prior to July 1, 2002 |
7 | | that is eligible for amnesty under the
Tax Delinquency Amnesty |
8 | | Act and the taxpayer fails to satisfy the tax liability
during |
9 | | the amnesty period provided for in that Act for that taxable |
10 | | period, then the penalty imposed by
the Department under this |
11 | | Section shall be imposed in an amount that is 200% of
the |
12 | | amount that would otherwise be imposed under this Section.
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13 | | (j) If a taxpayer has a tax liability for the taxable |
14 | | period ending after June 30, 2002 and prior to July 1, 2009 |
15 | | that is eligible for amnesty under the
Tax Delinquency Amnesty |
16 | | Act, except for any tax liability reported pursuant to Section |
17 | | 506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)) that |
18 | | is not final, and the taxpayer fails to satisfy the tax |
19 | | liability
during the amnesty period provided for in that Act |
20 | | for that taxable period, then the penalty imposed by
the |
21 | | Department under this Section shall be imposed in an amount |
22 | | that is 200% of
the amount that would otherwise be imposed |
23 | | under this Section. |
24 | | (Source: P.A. 98-425, eff. 8-16-13.)
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25 | | Section 99. Effective date. This Act takes effect upon |
26 | | becoming law.
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