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1 | AN ACT concerning taxes.
| ||||||||||||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||||||||||||
4 | Section 5. The Illinois Estate and Generation-Skipping | ||||||||||||||||||||||||||||||||||||
5 | Transfer Tax Act is amended by changing Sections 2, 3, 5, 6, 7, | ||||||||||||||||||||||||||||||||||||
6 | 8, and 10 as follows:
| ||||||||||||||||||||||||||||||||||||
7 | (35 ILCS 405/2) (from Ch. 120, par. 405A-2)
| ||||||||||||||||||||||||||||||||||||
8 | Sec. 2. Definitions.
| ||||||||||||||||||||||||||||||||||||
9 | "Federal estate tax" means the tax due to the United States | ||||||||||||||||||||||||||||||||||||
10 | with respect
to a taxable transfer under Chapter 11 of the | ||||||||||||||||||||||||||||||||||||
11 | Internal Revenue Code.
| ||||||||||||||||||||||||||||||||||||
12 | "Federal generation-skipping transfer tax" means the tax | ||||||||||||||||||||||||||||||||||||
13 | due to the
United States with respect to a taxable transfer | ||||||||||||||||||||||||||||||||||||
14 | under Chapter 13 of the
Internal Revenue Code.
| ||||||||||||||||||||||||||||||||||||
15 | "Federal return" means the federal estate tax return with | ||||||||||||||||||||||||||||||||||||
16 | respect to the
federal estate tax and means the federal | ||||||||||||||||||||||||||||||||||||
17 | generation-skipping transfer tax
return
with respect to the | ||||||||||||||||||||||||||||||||||||
18 | federal generation-skipping transfer tax.
| ||||||||||||||||||||||||||||||||||||
19 | "Federal transfer tax" means the federal estate tax or the | ||||||||||||||||||||||||||||||||||||
20 | federal
generation-skipping transfer tax.
| ||||||||||||||||||||||||||||||||||||
21 | "Illinois estate tax" means the tax due to this State with | ||||||||||||||||||||||||||||||||||||
22 | respect to a
taxable transfer that gives rise to a federal | ||||||||||||||||||||||||||||||||||||
23 | estate tax .
| ||||||||||||||||||||||||||||||||||||
24 | "Illinois generation-skipping transfer tax" means the tax | ||||||||||||||||||||||||||||||||||||
25 | due to this State
with respect to a taxable transfer that gives | ||||||||||||||||||||||||||||||||||||
26 | rise to a federal
generation-skipping transfer tax.
| ||||||||||||||||||||||||||||||||||||
27 | "Illinois transfer tax" means the Illinois estate tax or | ||||||||||||||||||||||||||||||||||||
28 | the Illinois
generation-skipping transfer tax.
| ||||||||||||||||||||||||||||||||||||
29 | "Internal Revenue Code" means, unless otherwise provided, | ||||||||||||||||||||||||||||||||||||
30 | the Internal
Revenue Code of 1986, as
amended from time to | ||||||||||||||||||||||||||||||||||||
31 | time.
| ||||||||||||||||||||||||||||||||||||
32 | "Non-resident trust" means a trust that is not a resident |
| |||||||
| |||||||
1 | of this State
for purposes of the Illinois Income Tax Act, as | ||||||
2 | amended from time to time.
| ||||||
3 | "Person" means and includes any individual, trust, estate, | ||||||
4 | partnership,
association, company or corporation.
| ||||||
5 | "Qualified heir" means a qualified heir as defined in | ||||||
6 | Section 2032A(e)(1)
of the Internal Revenue Code.
| ||||||
7 | "Resident trust" means a trust that is a resident of this | ||||||
8 | State for
purposes of the Illinois Income Tax Act, as amended | ||||||
9 | from time to time.
| ||||||
10 | "State" means any state, territory or possession of the | ||||||
11 | United States and
the District of Columbia.
| ||||||
12 | "State tax credit" means:
| ||||||
13 | (a) For persons dying on or after January 1, 2003 and
| ||||||
14 | through the effective date of this amendatory Act of the 94th | ||||||
15 | General Assembly
December 31, 2005 , an amount
equal
to the full | ||||||
16 | credit calculable under Section 2011 or Section 2604 of the
| ||||||
17 | Internal Revenue
Code as the credit would have been computed | ||||||
18 | and allowed under the Internal
Revenue
Code as in effect on | ||||||
19 | December 31, 2001, without the reduction in the State
Death Tax
| ||||||
20 | Credit as provided in Section 2011(b)(2) or the termination of | ||||||
21 | the State Death
Tax Credit
as provided in Section 2011(f) as | ||||||
22 | enacted by the Economic Growth and Tax Relief
Reconciliation | ||||||
23 | Act of 2001, but recognizing the increased applicable exclusion
| ||||||
24 | amount
through December 31, 2005.
| ||||||
25 | (b) (Blank).
For persons dying after December 31, 2005 and | ||||||
26 | on or before December 31,
2009, an amount equal to the full
| ||||||
27 | credit
calculable under Section 2011 or 2604 of the Internal | ||||||
28 | Revenue Code as the
credit would
have been computed and allowed | ||||||
29 | under the Internal Revenue Code as in effect on
December 31, | ||||||
30 | 2001, without the reduction in the State Death Tax Credit as
| ||||||
31 | provided in
Section 2011(b)(2) or the termination of the State | ||||||
32 | Death Tax Credit as provided
in
Section 2011(f) as enacted by | ||||||
33 | the Economic Growth and Tax Relief Reconciliation
Act of
2001, | ||||||
34 | but recognizing the exclusion amount of only $2,000,000.
| ||||||
35 | (c) For persons dying on or after the effective date of | ||||||
36 | this amendatory Act of the 94th General Assembly
December 31, |
| |||||||
| |||||||
1 | 2009 ,
the credit for state tax allowable under Section
2011 or | ||||||
2 | Section 2604 of the Internal Revenue Code.
| ||||||
3 | "Taxable transfer" means an event that gives rise to a | ||||||
4 | state tax credit,
including any credit allowable as a result of | ||||||
5 | the imposition of an
additional tax under Section 2032A(c) of | ||||||
6 | the Internal Revenue Code.
| ||||||
7 | "Transferee" means a transferee within the meaning of | ||||||
8 | Section 2603(a)(1)
and Section 6901(h) of the Internal Revenue | ||||||
9 | Code.
| ||||||
10 | "Transferred property" means:
| ||||||
11 | (1) With respect to a taxable transfer occurring at the | ||||||
12 | death of an
individual that results in the imposition of | ||||||
13 | federal estate tax , the
deceased individual's gross estate | ||||||
14 | as defined in Section 2031 of the
Internal Revenue Code.
| ||||||
15 | (2) With respect to a taxable transfer occurring as a | ||||||
16 | result of a
taxable termination as defined in Section | ||||||
17 | 2612(a) of the Internal Revenue Code,
the taxable amount | ||||||
18 | determined under Section 2622(a) of the Internal Revenue
| ||||||
19 | Code.
| ||||||
20 | (3) With respect to a taxable transfer occurring as a | ||||||
21 | result of a
taxable distribution as defined in Section | ||||||
22 | 2612(b) of the Internal Revenue Code,
the taxable amount | ||||||
23 | determined under Section 2621(a) of the Internal Revenue
| ||||||
24 | Code.
| ||||||
25 | (4) With respect to an event which causes the | ||||||
26 | imposition of an
additional estate tax under Section | ||||||
27 | 2032A(c) of the Internal Revenue Code,
the
qualified real | ||||||
28 | property that was disposed of or which ceased to be used | ||||||
29 | for
the qualified use, within the meaning of Section | ||||||
30 | 2032A(c)(1) of the Internal
Revenue Code.
| ||||||
31 | "Trust" includes a trust as defined in Section 2652(b)(1) | ||||||
32 | of the Internal
Revenue Code.
| ||||||
33 | (Source: P.A. 93-30, eff. 6-20-03.)
| ||||||
34 | (35 ILCS 405/3) (from Ch. 120, par. 405A-3)
| ||||||
35 | Sec. 3. Illinois estate tax.
|
| |||||||
| |||||||
1 | (a) Imposition of Tax. An Illinois estate tax is imposed on | ||||||
2 | every
taxable transfer
involving transferred
property having a | ||||||
3 | tax situs within the State of Illinois.
| ||||||
4 | (b) Amount of tax. On estates of persons dying before | ||||||
5 | January 1, 2003, the amount of the Illinois estate tax shall be | ||||||
6 | the state
tax credit, as defined in Section 2 of this Act as | ||||||
7 | amended by Public Act 93-30 , with respect to the taxable
| ||||||
8 | transfer
reduced by the lesser of:
| ||||||
9 | (1) the amount of the state tax credit paid to any | ||||||
10 | other state or states;
and
| ||||||
11 | (2) the amount determined by multiplying the maximum | ||||||
12 | state tax
credit allowable with respect to the taxable | ||||||
13 | transfer
by the percentage which the gross
value of the | ||||||
14 | transferred property not having a tax situs in Illinois | ||||||
15 | bears
to the gross value of the total transferred property. | ||||||
16 | (c) On estates of persons dying on or after January 1, | ||||||
17 | 2003 , until the effective date of this amendatory Act of the | ||||||
18 | 94th General Assembly , the amount of the Illinois estate tax | ||||||
19 | shall be the state
tax credit, as defined in Section 2 of this | ||||||
20 | Act as amended by Public Act 93-30 , reduced by the amount | ||||||
21 | determined by multiplying the state tax
credit with respect to | ||||||
22 | the taxable transfer
by the percentage which the gross
value of | ||||||
23 | the transferred property not having a tax situs in Illinois | ||||||
24 | bears
to the gross value of the total transferred property.
| ||||||
25 | Such tax shall be determined and paid under the provisions of | ||||||
26 | this Act prior to its amendment by this amendatory Act of the | ||||||
27 | 94th General Assembly.
| ||||||
28 | (d) On estates of persons dying on or after the effective | ||||||
29 | date of this amendatory Act of the 94th General Assembly, the | ||||||
30 | amount of the Illinois estate tax shall be the maximum state
| ||||||
31 | tax credit allowable with respect to the taxable
transfer
| ||||||
32 | reduced by the lesser of: | ||||||
33 | (1) the amount of the state tax credit paid to any | ||||||
34 | other state or states;
and | ||||||
35 | (2) the amount determined by multiplying the maximum | ||||||
36 | state tax
credit allowable with respect to the taxable |
| |||||||
| |||||||
1 | transfer
by the percentage which the gross
value of the | ||||||
2 | transferred property not having a tax situs in Illinois | ||||||
3 | bears
to the gross value of the total transferred property.
| ||||||
4 | (Source: P.A. 93-30, eff. 6-20-03; 94-419, eff. 8-2-05.)
| ||||||
5 | (35 ILCS 405/5) (from Ch. 120, par. 405A-5)
| ||||||
6 | Sec. 5. Determination of tax situs and valuation.
| ||||||
7 | (a) Illinois estate tax.
| ||||||
8 | (1) For purposes of the Illinois estate tax, in the | ||||||
9 | case of a decedent
who was a resident of this State at the | ||||||
10 | time of death, all of the
transferred property has a tax | ||||||
11 | situs in this State, including any such
property held in | ||||||
12 | trust, except real or tangible personal property
| ||||||
13 | physically situated in another state.
| ||||||
14 | (2) For purposes of the Illinois estate tax, in the | ||||||
15 | case of a decedent
who was not a resident of this State at | ||||||
16 | the time of death, the transferred
property having a tax | ||||||
17 | situs in this State, including any such property held
in | ||||||
18 | trust, is only the real estate and tangible personal | ||||||
19 | property physically
situated in this State.
| ||||||
20 | (b) Illinois generation-skipping transfer tax.
| ||||||
21 | (1) For purposes of the Illinois generation-skipping | ||||||
22 | transfer tax, all
transferred property from or in a | ||||||
23 | resident trust has a tax situs in this
State, including any | ||||||
24 | such property held in trust, except real or tangible
| ||||||
25 | personal property physically situated in another state on | ||||||
26 | the date that the
taxable transfer occurs.
| ||||||
27 | (2) For purposes of the Illinois generation-skipping | ||||||
28 | transfer tax, none
of the transferred property from or in a | ||||||
29 | non-resident trust has a tax situs
in this State, except | ||||||
30 | that portion of the transferred property that is real
or | ||||||
31 | tangible personal property physically situated in this | ||||||
32 | State, including
any such property held in trust, on the | ||||||
33 | date that the taxable transfer occurs.
| ||||||
34 | (c) Valuation. Except as otherwise expressly provided, for | ||||||
35 | purposes of
this Act, the gross value of transferred property |
| |||||||
| |||||||
1 | shall be its value as
finally determined for purposes of the | ||||||
2 | related federal transfer tax,
undiminished
by any mortgages, | ||||||
3 | liens or other encumbrances upon such transferred
property for | ||||||
4 | which the decedent was personally liable.
| ||||||
5 | (Source: P.A. 93-30, eff. 6-20-03.)
| ||||||
6 | (35 ILCS 405/6) (from Ch. 120, par. 405A-6)
| ||||||
7 | Sec. 6. Returns and payments.
| ||||||
8 | (a) Due Dates. The Illinois transfer
tax shall be paid and | ||||||
9 | the Illinois transfer tax return shall be filed on
the due date | ||||||
10 | or dates, respectively, including extensions, for paying the
| ||||||
11 | related federal transfer tax and filing the related federal | ||||||
12 | return.
| ||||||
13 | (b) Installment payments and deferral. In the event that | ||||||
14 | any portion of
the federal transfer tax is deferred or to be | ||||||
15 | paid in installments under
the provisions of the Internal | ||||||
16 | Revenue Code, the portion of the Illinois
transfer tax which is | ||||||
17 | subject to deferral or payable in installments shall
be | ||||||
18 | determined by multiplying the Illinois transfer tax by a | ||||||
19 | fraction, the
numerator of which is the gross value of the | ||||||
20 | assets included in the
transferred property having a tax situs | ||||||
21 | in this State and which give rise
to the deferred or | ||||||
22 | installment payment under
the Internal Revenue Code, and the | ||||||
23 | denominator of which is the gross value
of all assets included | ||||||
24 | in the transferred property having a tax situs in
this State. | ||||||
25 | Deferred payments and installment payments, with interest,
| ||||||
26 | shall be paid at the same time and in the same manner as | ||||||
27 | payments of the
federal transfer tax are required to be made | ||||||
28 | under the applicable Sections
of the Internal Revenue Code, | ||||||
29 | provided that the rate of interest on unpaid
amounts of | ||||||
30 | Illinois transfer tax shall be determined under this Act.
| ||||||
31 | Acceleration of payment under this Section shall occur under | ||||||
32 | the same
circumstances and in the same manner as provided in | ||||||
33 | the Internal Revenue Code.
| ||||||
34 | (c) Who shall file and pay. The Illinois transfer tax | ||||||
35 | return (including
any supplemental or amended return) shall be |
| |||||||
| |||||||
1 | filed, and the Illinois
transfer tax (including any additional | ||||||
2 | tax that may become due) shall be
paid by the same person or | ||||||
3 | persons, respectively, who are required to pay
the related | ||||||
4 | federal transfer tax and file the related federal return ,
or
| ||||||
5 | who would have been required to pay a federal transfer tax and | ||||||
6 | file a
federal return if
a federal transfer tax were due .
| ||||||
7 | (d) Where to file return. The executed Illinois transfer | ||||||
8 | tax return
shall be filed with the Attorney General. In | ||||||
9 | addition, a copy of the
Illinois transfer tax return shall be | ||||||
10 | filed with the county treasurer to
whom the Illinois transfer | ||||||
11 | tax is paid, determined under subsection (e) of this
Section.
| ||||||
12 | (e) Where to pay tax. The Illinois transfer tax shall be | ||||||
13 | paid to the
treasurer of the county determined under the | ||||||
14 | following rules:
| ||||||
15 | (1) Illinois Estate Tax. The Illinois estate tax shall | ||||||
16 | be paid to the
treasurer of the county in which the | ||||||
17 | decedent was a resident on the date of
the decedent's death | ||||||
18 | or, if the decedent was not a resident of this State
on the | ||||||
19 | date of death, the county in which the greater part, by | ||||||
20 | gross value,
of the transferred property with a tax situs | ||||||
21 | in this State is located.
| ||||||
22 | (2) Illinois Generation-Skipping Transfer Tax. The | ||||||
23 | Illinois
generation-skipping transfer tax involving | ||||||
24 | transferred property from or in
a resident trust shall be | ||||||
25 | paid to the county treasurer for the county in
which the | ||||||
26 | grantor resided at the time the trust became irrevocable | ||||||
27 | (in the
case of an inter vivos trust) or the county in | ||||||
28 | which the decedent resided
at death (in the case of a trust | ||||||
29 | created by the will of a decedent).
In the case of an | ||||||
30 | Illinois generation-skipping transfer tax involving
| ||||||
31 | transferred property from or in a non-resident trust, the | ||||||
32 | Illinois
generation-skipping transfer tax
shall
be paid to | ||||||
33 | the county treasurer for the county in which the greater | ||||||
34 | part,
by gross value, of the transferred property with a | ||||||
35 | tax situs in this State is located.
| ||||||
36 | (f) Forms; confidentiality. The Illinois transfer tax |
| |||||||
| |||||||
1 | return shall be
in all respects in the manner and form | ||||||
2 | prescribed by the regulations of the
Attorney General. At the | ||||||
3 | same time the Illinois transfer tax return is
filed, the person | ||||||
4 | required to file shall also file with the Attorney
General a | ||||||
5 | copy of the related federal return.
For individuals dying after | ||||||
6 | December 31, 2005, in cases where no federal
return is
required | ||||||
7 | to be filed, the person required to file an Illinois return | ||||||
8 | shall also
file with the
Attorney General schedules of assets | ||||||
9 | in the manner and form prescribed by the
Attorney
General.
The | ||||||
10 | Illinois transfer tax
return and the copy of the federal return | ||||||
11 | filed with the Attorney General
or any county treasurer shall | ||||||
12 | be confidential, and the Attorney General,
each county | ||||||
13 | treasurer and all of their assistants or employees are
| ||||||
14 | prohibited from divulging in any manner any of the contents of | ||||||
15 | those returns,
except
only in a proceeding instituted under the | ||||||
16 | provisions of this Act.
| ||||||
17 | (g) County Treasurer shall accept payment. No county | ||||||
18 | treasurer shall
refuse to accept payment of any amount due | ||||||
19 | under this Act on the grounds
that the county treasurer has not | ||||||
20 | yet received a copy of the appropriate
Illinois transfer tax | ||||||
21 | return.
| ||||||
22 | (Source: P.A. 93-30, eff. 6-20-03.)
| ||||||
23 | (35 ILCS 405/7) (from Ch. 120, par. 405A-7)
| ||||||
24 | Sec. 7. Supplemental returns; refunds.
| ||||||
25 | (a) Supplemental returns. If
the State tax credit is | ||||||
26 | increased after the filing of the Illinois transfer
tax return, | ||||||
27 | the person or persons required to file the Illinois transfer
| ||||||
28 | tax return and pay the Illinois transfer tax shall file a | ||||||
29 | supplemental
Illinois transfer tax return. The supplemental | ||||||
30 | return shall be filed and
the additional tax shall be paid in | ||||||
31 | the same place and manner as provided
in Section 6 of this Act. | ||||||
32 | The due date for the supplemental return and for
the payment of | ||||||
33 | the additional tax reported in the supplemental return shall
be | ||||||
34 | no later than 3
months after the earliest of:
| ||||||
35 | (1) the date an amended , related federal return is |
| |||||||
| |||||||
1 | filed;
| ||||||
2 | (2) the date an increase in the federal transfer tax is | ||||||
3 | paid or accepted
in writing; or
| ||||||
4 | (3) the date the Internal Revenue Service issues a | ||||||
5 | request for evidence
of payment of the State tax credit; or
| ||||||
6 | (4) the date that any increase to the taxable estate is | ||||||
7 | discovered;
| ||||||
8 | provided that if the related federal transfer tax may be | ||||||
9 | deferred or paid
in installments, then part or all of the | ||||||
10 | additional Illinois transfer tax
may be deferred or paid in | ||||||
11 | installments under rules consistent with
subsection (b) of | ||||||
12 | Section 6 of this Act.
| ||||||
13 | (b) Refunds. If the state tax credit is reduced after the | ||||||
14 | filing of the
Illinois transfer tax return, the person who paid | ||||||
15 | the Illinois transfer tax (or
the person
upon whom the burden | ||||||
16 | of payment fell) shall file an amended Illinois
transfer tax | ||||||
17 | return and shall be entitled to a refund of tax or interest
| ||||||
18 | paid on the Illinois transfer tax. No interest shall be paid on | ||||||
19 | any amount
refunded.
| ||||||
20 | (Source: P.A. 93-30, eff. 6-20-03.)
| ||||||
21 | (35 ILCS 405/8) (from Ch. 120, par. 405A-8)
| ||||||
22 | Sec. 8. Penalties for failure to file tax return or to pay | ||||||
23 | tax.
| ||||||
24 | (a) Failure to file return. In case of failure to file any | ||||||
25 | return
required under this Act with the Attorney General by the | ||||||
26 | due date,
unless it is shown that the failure to file is due to | ||||||
27 | a reasonable cause,
there shall be added to the amount required
| ||||||
28 | to be shown as tax on the return 5% of the amount of that tax | ||||||
29 | (or 5% of
the additional tax due in the case of a supplemental | ||||||
30 | return) if the failure
is for not more than one month from the | ||||||
31 | due date, with an additional 5% for
each additional month or | ||||||
32 | fraction of a month thereafter during
which the failure to file | ||||||
33 | continues, not exceeding in the aggregate 25% of
the tax or, in | ||||||
34 | the
case of a supplemental return, 25% of the additional tax.
| ||||||
35 | (b) Failure to pay tax. In the case of failure to pay the |
| |||||||
| |||||||
1 | amount of tax
shown due on any return required under this Act | ||||||
2 | on or before the due date
for payment of that tax, unless it is | ||||||
3 | shown that the failure to pay is
due to reasonable cause, there | ||||||
4 | shall be
added to the unpaid amount of the tax 0.5% of that | ||||||
5 | unpaid amount if the
failure is for not more than one month | ||||||
6 | from the due date, with an
additional 0.5% for each additional | ||||||
7 | month or fraction of a month thereafter
during which the | ||||||
8 | failure to pay continues, not exceeding in the aggregate 25%
of
| ||||||
9 | the unpaid amount.
| ||||||
10 | (c) Extensions of Time.
| ||||||
11 | (1) Internal Revenue Service Extensions. If the date | ||||||
12 | for filing the related federal return or the date for | ||||||
13 | payment of the related federal
transfer tax is extended by | ||||||
14 | the Internal Revenue Service, the filing of the
return and | ||||||
15 | payment of the tax imposed by this Act shall be due on the
| ||||||
16 | respective date specified by the Internal Revenue Service | ||||||
17 | in granting a
request for extension. If the request for | ||||||
18 | extension is granted by the
Internal Revenue Service, the | ||||||
19 | person required to file the Illinois transfer
tax return | ||||||
20 | shall furnish the Attorney General with a copy of the | ||||||
21 | request
for extension showing approval of the extension by | ||||||
22 | the Internal Revenue Service. If
a request for extension of | ||||||
23 | time to file the federal return is denied by the
Internal | ||||||
24 | Revenue Service, no penalty shall be due under this Act if | ||||||
25 | the
return required by this Act is filed within the time | ||||||
26 | specified by the
Internal Revenue Service for filing the | ||||||
27 | federal return. If a request for
extension of time to pay | ||||||
28 | the federal transfer tax is denied by the Internal
Revenue | ||||||
29 | Service, no penalty shall be due under this Act if the tax | ||||||
30 | is paid
within the time specified by the Internal Revenue | ||||||
31 | Service for paying the
federal transfer tax.
| ||||||
32 | (2) Attorney General Extensions. The person or persons | ||||||
33 | required to file
the Illinois transfer tax return and to | ||||||
34 | pay the Illinois transfer tax may apply to the
Attorney | ||||||
35 | General for an extension of time to file the Illinois | ||||||
36 | transfer tax
return or to pay the Illinois transfer tax. |
| |||||||
| |||||||
1 | The application must establish
reasonable cause why it is | ||||||
2 | impossible or impractical to file a reasonably
complete | ||||||
3 | return or to pay the full amount of tax due by the due | ||||||
4 | date. The
Attorney General may for reasonable cause extend | ||||||
5 | the time for filing the
return or paying the tax for a | ||||||
6 | reasonable period from the date fixed for
filing the return | ||||||
7 | or paying the tax.
| ||||||
8 | (d) Waiver of Penalties.
| ||||||
9 | (1) Internal Revenue Service Waiver. If the Internal | ||||||
10 | Revenue Service
waives the penalty provided in the Internal | ||||||
11 | Revenue Code for failure to
timely file the related federal | ||||||
12 | return or the penalty for failure to timely
pay the related | ||||||
13 | federal transfer tax liability, such waiver or waivers
| ||||||
14 | shall be deemed to constitute reasonable cause for purposes | ||||||
15 | of this Section.
| ||||||
16 | (2) Attorney General Waiver. The Attorney General may | ||||||
17 | waive the penalty
or
penalties for failure to file or pay | ||||||
18 | for reasonable cause, notwithstanding
the failure of the | ||||||
19 | Internal Revenue Service to waive the penalty or penalties
| ||||||
20 | for
failure to timely file the federal transfer tax return | ||||||
21 | or to pay the federal
transfer tax.
| ||||||
22 | (Source: P.A. 93-30, eff. 6-20-03.)
| ||||||
23 | (35 ILCS 405/10) (from Ch. 120, par. 405A-10)
| ||||||
24 | Sec. 10. Liens and Personal Liability.
| ||||||
25 | (a) Lien for Illinois transfer tax. Unless the
Illinois | ||||||
26 | transfer tax is sooner paid in full, the Illinois
transfer tax | ||||||
27 | shall be a lien in favor of this State upon the transferred
| ||||||
28 | property having a tax situs within this State for 10 years from | ||||||
29 | the date of
the taxable transfer, or, in the case of Illinois | ||||||
30 | transfer tax subject to
deferral or payable in installments, | ||||||
31 | the later of 10 years from the date of
the taxable transfer or | ||||||
32 | one year after the last deferred or installment
payment may | ||||||
33 | become due. The lien imposed by this Section on the
transferred | ||||||
34 | property shall not be valid as against any purchaser,
| ||||||
35 | mortgagee, pledgee, or other holder of a security interest for |
| |||||||
| |||||||
1 | a full and
adequate consideration in money or money's worth; | ||||||
2 | provided, however, that
any property, consideration or | ||||||
3 | proceeds received as a result of any sale,
mortgage, pledge or | ||||||
4 | granting of a security interest shall remain subject to
the | ||||||
5 | lien imposed by this Section. In addition, the lien imposed by | ||||||
6 | this
Section on the transferred property shall be subject to | ||||||
7 | the exceptions set
forth in Section 6324(c)(i) of the Internal | ||||||
8 | Revenue Code as if the lien
were a lien imposed by that | ||||||
9 | Section. In no event shall the issuance by the
Attorney General | ||||||
10 | of a release of the lien imposed by this subsection be
required | ||||||
11 | with respect to the sale, mortgage, pledge, granting of a | ||||||
12 | security
interest in, transfer or distribution of transferred | ||||||
13 | property.
| ||||||
14 | (b) Special lien for property valued under Section 2032A of | ||||||
15 | the Internal
Revenue Code. In the event the Illinois estate tax | ||||||
16 | is reduced as a result
of an election under Section 2032A of | ||||||
17 | the Internal Revenue Code, then an amount
equal to the | ||||||
18 | additional Illinois estate tax that would be due in the
absence | ||||||
19 | of such an election shall be a lien in favor of this State on | ||||||
20 | the
transferred property that has a tax situs in this State and | ||||||
21 | is subject to
such election. The lien imposed by this | ||||||
22 | subsection shall arise at the time
an election is filed under | ||||||
23 | Section 2032A of the Internal Revenue Code and
shall continue | ||||||
24 | with respect to such transferred property:
| ||||||
25 | (1) until the liability for the Illinois estate tax | ||||||
26 | with respect to
such transferred property has been | ||||||
27 | satisfied or has become unenforceable by
reason of lapse of | ||||||
28 | time or otherwise; or
| ||||||
29 | (2) until it is established to the satisfaction of the | ||||||
30 | Attorney
General that no further tax liability may arise | ||||||
31 | under this Act with respect
to such transferred property.
| ||||||
32 | The lien imposed by this subsection shall not be valid as | ||||||
33 | against any
purchaser, mortgagee, pledgee, other holder of a | ||||||
34 | security interest,
mechanic's lien, or judgment lien creditor | ||||||
35 | until notice of such lien has
been filed as provided by the | ||||||
36 | laws of this State. In regulations
prescribed in accordance |
| |||||||
| |||||||
1 | with Section 16 of this Act, the Attorney General
may require | ||||||
2 | that the qualified heir file such notice of lien. Even though
| ||||||
3 | notice of said lien has been filed as provided in the preceding | ||||||
4 | sentence,
such lien shall be subject to the rules set forth in | ||||||
5 | paragraph (3) of
Section 6324A(d) of the Internal Revenue Code | ||||||
6 | as if the lien were a lien
imposed by that Section.
| ||||||
7 | (c) Personal liability. If the Illinois transfer tax is not | ||||||
8 | paid when
due, then the person required to file the related | ||||||
9 | federal return and the
transferee of any transferred property | ||||||
10 | having a tax situs within this State
shall be personally liable | ||||||
11 | for the Illinois transfer tax, to the extent of
such | ||||||
12 | transferred property originally received, controlled or | ||||||
13 | transferred to
that person or transferee, less the amount of | ||||||
14 | any expenses or charges
against the transferred property, | ||||||
15 | related to the taxable transfer, which
have a higher priority | ||||||
16 | of payment under applicable law than the Illinois transfer tax.
| ||||||
17 | (d) Collection. The Attorney General shall have the right | ||||||
18 | to sue for
collection of the Illinois transfer tax for 3 years | ||||||
19 | after the date of the
actual filing of the related Illinois | ||||||
20 | transfer tax return with the Attorney
General, or, if later, | ||||||
21 | the last date upon which application for refund of
the Illinois | ||||||
22 | transfer tax could be filed with the State Treasurer.
| ||||||
23 | (e) Waiver of lien and personal liability. If the Attorney | ||||||
24 | General is
satisfied that no liability for Illinois transfer | ||||||
25 | tax exists or that the
Illinois transfer tax has been fully | ||||||
26 | discharged or provided for, the
Attorney General shall issue a | ||||||
27 | certificate releasing all of the transferred
property having a | ||||||
28 | tax situs within the State of Illinois from the lien
imposed by | ||||||
29 | this Section. Issuance of such certificate shall discharge the
| ||||||
30 | person required to file the related federal
Illinois return and | ||||||
31 | any
transferee from
personal liability for the Illinois | ||||||
32 | transfer tax.
| ||||||
33 | (Source: P.A. 93-30, eff. 6-20-03.)
| ||||||
34 | Section 99. Effective date. This Act takes effect upon | ||||||
35 | becoming law.
|