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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 Illinois Income Tax Act is amended by | |||||||||||||||||||
5 | changing Section 902 as follows:
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6 | (35 ILCS 5/902) (from Ch. 120, par. 9-902)
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7 | Sec. 902. Notice and Demand. | |||||||||||||||||||
8 | (a) In general. Except as provided in subsection (b) the | |||||||||||||||||||
9 | Director shall,
no earlier than 6 weeks
as soon as practicable | |||||||||||||||||||
10 | after an amount payable under this Act is deemed
assessed (as | |||||||||||||||||||
11 | provided in Section 903), give notice to each person liable
for | |||||||||||||||||||
12 | any unpaid portion of such assessment, stating the amount | |||||||||||||||||||
13 | unpaid and
demanding payment thereof. In the case of tax deemed | |||||||||||||||||||
14 | assessed with the
filing of a return, the Director shall give | |||||||||||||||||||
15 | notice no later than 3 years
after the date the return was | |||||||||||||||||||
16 | filed. Upon receipt of any notice and demand
there shall be | |||||||||||||||||||
17 | paid
at the place and time stated in such notice the amount | |||||||||||||||||||
18 | stated in such
notice. Such notice shall be left at the | |||||||||||||||||||
19 | dwelling or usual place of business
of such person or shall be | |||||||||||||||||||
20 | sent by mail to the person's last known address.
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21 | (b) Judicial review. In the case of a deficiency deemed | |||||||||||||||||||
22 | assessed under
Section 903(a)(2) after the filing of a protest, | |||||||||||||||||||
23 | notice and demand shall
not be made with respect to such |
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1 | assessment until all proceedings in court
for the review of | ||||||
2 | such assessment have terminated or the time for the
taking | ||||||
3 | thereof has expired without such proceedings being instituted.
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4 | (c) Action for recovery of taxes. At any time that the | ||||||
5 | Department might
commence proceedings for a levy under Section | ||||||
6 | 1109, regardless of whether a
notice of lien was filed under | ||||||
7 | the provisions of Section 1103, it may bring an
action in any | ||||||
8 | court of competent jurisdiction within or without this State
in | ||||||
9 | the name of the people of this State to recover the amount of | ||||||
10 | any taxes,
penalties and interest due and unpaid under this | ||||||
11 | Act. In such action, the
certificate of the Department showing | ||||||
12 | the amount of the delinquency shall
be prima facie evidence of | ||||||
13 | the correctness of such amount, its assessment
and of the | ||||||
14 | compliance by the Department with all the provisions of this | ||||||
15 | Act.
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16 | (d) Sales or transfers outside the usual course of
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17 | business-Report-Payment of Tax - Rights and duties of purchaser | ||||||
18 | or
transferee - penalty. If any taxpayer, outside the usual | ||||||
19 | course of his
business, sells or transfers the major part of | ||||||
20 | any one or more of (A) the
stock of goods which he is engaged in | ||||||
21 | the business of selling, or (B) the
furniture or fixtures, or | ||||||
22 | (C) the machinery and equipment, or (D) the real
property, of | ||||||
23 | any business that is subject to the provisions of this Act,
the | ||||||
24 | purchaser or transferee of such assets shall, no later than 10 | ||||||
25 | business days
after the sale or transfer, file a notice of sale | ||||||
26 | or transfer of business
assets with the
Chicago office of the |
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1 | Department disclosing the name and address of the
seller or | ||||||
2 | transferor, the
name and address of the purchaser or | ||||||
3 | transferee, the date of the sale or
transfer, a copy of the | ||||||
4 | sales contract and financing agreements which shall
include a | ||||||
5 | description of the property sold or transferred, the amount of
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6 | the purchase price or a statement of other consideration for | ||||||
7 | the sale or
transfer, and the terms for payment of the purchase | ||||||
8 | price, and such other
information as the Department may | ||||||
9 | reasonably require. If the purchaser or
transferee fails to | ||||||
10 | file the above described notice of sale with the
Department | ||||||
11 | within the prescribed time, the purchaser or transferee shall | ||||||
12 | be
personally liable to the Department for the amount
owed | ||||||
13 | hereunder by the seller or transferor
but unpaid, up to the
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14 | amount of the reasonable value of the property acquired by the | ||||||
15 | purchaser or
transferee. The purchaser or transferee shall pay | ||||||
16 | the Department the
amount of tax, penalties, and interest owed | ||||||
17 | by the seller or transferor
under this Act, to the extent they | ||||||
18 | have
not been paid by the seller or transferor. The seller or | ||||||
19 | transferor, or
the purchaser or transferee, at least 10 | ||||||
20 | business days before the date of the sale
or transfer, may | ||||||
21 | notify the Department of the intended sale or transfer
and | ||||||
22 | request the Department to make a determination as to whether | ||||||
23 | the seller
or transferor owes any
tax, penalty or
interest due | ||||||
24 | under this Act. The Department shall take such steps as may
be | ||||||
25 | appropriate to comply with such request.
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26 | Any order issued by the Department pursuant to this Section |
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1 | to withhold
from the purchase price shall be issued within 10 | ||||||
2 | business days after the Department
receives notification of a | ||||||
3 | sale as provided in this Section.
The purchaser or transferee | ||||||
4 | shall withhold such portion of
the purchase price
as may be | ||||||
5 | directed by the Department, but not to exceed a
minimum amount | ||||||
6 | varying by type of business, as determined by the Department
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7 | pursuant to regulations, plus twice the outstanding unpaid | ||||||
8 | liabilities and
twice the average liability of preceding | ||||||
9 | filings times the number of
unfiled returns which were not | ||||||
10 | filed when due,
to cover the amount of all tax, penalty, and | ||||||
11 | interest due and
unpaid by the seller or transferor under this | ||||||
12 | Act or, if the payment of
money or property is not involved, | ||||||
13 | shall withhold the performance of the
condition that | ||||||
14 | constitutes the consideration for the sale or transfer.
Within | ||||||
15 | 60 business days after issuance of
the initial order to | ||||||
16 | withhold, the Department shall provide written notice
to the | ||||||
17 | purchaser or transferee of the actual amount of all taxes, | ||||||
18 | penalties
and interest then due and whether or not additional | ||||||
19 | amounts may become due
as a result of unpaid taxes required to | ||||||
20 | be withheld by an employer, returns
which were not filed when | ||||||
21 | due, pending assessments and audits not
completed. The | ||||||
22 | purchaser or transferee shall continue to withhold the
amount | ||||||
23 | directed to be withheld by the initial order or such lesser | ||||||
24 | amount
as is specified by the final withholding order or to | ||||||
25 | withhold the
performance of the condition which constitutes the | ||||||
26 | consideration for the
sale or transfer
until
the purchaser or |
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1 | transferee receives from the Department a certificate showing
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2 | that no unpaid tax, penalty or interest is due from the seller
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3 | or transferor under this Act.
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4 | The purchaser or transferee is relieved of any duty to | ||||||
5 | continue to
withhold from the purchase price and of any | ||||||
6 | liability for tax, penalty,
or interest due hereunder from the | ||||||
7 | seller or transferor if the Department
fails to notify the | ||||||
8 | purchaser or transferee in the manner provided
herein of the | ||||||
9 | amount to be withheld
within 10 business days after the sale or | ||||||
10 | transfer has been reported to the
Department or within 60 | ||||||
11 | business days after issuance of the initial order to
withhold, | ||||||
12 | as the case may be.
The Department shall have the right to | ||||||
13 | determine
amounts claimed on an estimated basis to allow for | ||||||
14 | periods for which
returns were not filed when due, pending | ||||||
15 | assessments and audits not
completed, however the purchaser or | ||||||
16 | transferee shall be personally liable
only for the actual | ||||||
17 | amount due when determined.
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18 | If the seller or transferor has failed to pay the tax, | ||||||
19 | penalty, and
interest due from him hereunder and the Department | ||||||
20 | makes timely
claim therefor against the purchaser or transferee | ||||||
21 | as hereinabove provided,
then the purchaser
or transferee shall | ||||||
22 | pay to the Department the amount so withheld from the
purchase | ||||||
23 | price. If the purchaser or transferee fails to comply with the
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24 | requirements of this Section, the purchaser or transferee shall | ||||||
25 | be
personally liable to the Department for the amount owed | ||||||
26 | hereunder by
the seller or transferor up to the amount of the |
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1 | reasonable
value of the property acquired by the purchaser or | ||||||
2 | transferee.
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3 | Any person who shall acquire any property or rights thereto | ||||||
4 | which, at the
time of such acquisition, is subject to a valid | ||||||
5 | lien in favor of the
Department, shall be personally liable to | ||||||
6 | the Department for a sum equal to
the amount of taxes, | ||||||
7 | penalties and interests, secured by such lien, but not
to | ||||||
8 | exceed the reasonable value of such property acquired by him.
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9 | (Source: P.A. 94-776, eff. 5-19-06.)
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