99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB5554

 

Introduced , by Rep. Mark Batinick

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 2510/2510-3
20 ILCS 2510/2510-5
20 ILCS 2510/2510-10
20 ILCS 2510/2510-30

    Amends the Certified Audit Program Law of the Civil Administrative Code of Illinois. Extends the certification program to all experienced tax practitioners. Provides that the term "experienced tax practitioner" means an Illinois-licensed certified public accountant, an Illinois-licensed attorney, or an enrolled agent licensed for a minimum of 8 years with substantial knowledge of Illinois tax laws and regulations. Reinstates the certified audit pilot project and extends it until July 1, 2020.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5554LRB099 18715 HLH 43099 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Certified Audit Program Law of the Civil
5Administrative Code of Illinois is amended by changing Sections
62510-3, 2510-5, 2510-10, and 2510-30 as follows:
 
7    (20 ILCS 2510/2510-3)
8    Sec. 2510-3. Findings. The General Assembly finds that:
9    (1) Voluntary compliance is the cornerstone of an effective
10tax system.
11    (2) Despite attempts by the General Assembly, State taxes
12are not simple.
13    (3) Even the most diligent taxpayers through mistake or
14inadvertence may not pay all taxes due.
15    (4) The Illinois Department of Revenue lacks the resources
16to audit the compliance of all taxpayers.
17    (5) Experienced tax practitioners Illinois certified
18public accountants provide valuable advice and assistance to
19Illinois taxpayers on State tax issues.
20    (6) A pilot program establishing a partnership between
21taxpayers, experienced tax practitioners Illinois certified
22public accountants, and the Illinois Department of Revenue will
23provide guidance to taxpayers and enhance voluntary

 

 

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1compliance.
2(Source: P.A. 92-456, eff. 8-21-01.)
 
3    (20 ILCS 2510/2510-5)
4    Sec. 2510-5. Definitions. As used in this Article:
5    "Certification program" means an instructional curriculum,
6examination, and process for certification, recertification,
7and revocation of certification of certified public
8accountants that is administered by the Department, the
9Illinois CPA Society, the Illinois State Bar Association, or
10other similar organization, and that is officially approved by
11the Department to ensure that a certified public accountant,
12attorney, or other experienced tax practitioner possesses the
13necessary skills and abilities to successfully perform an
14attestation engagement for tax compliance review in a certified
15audit project.
16    "Department" means the Illinois Department of Revenue.
17    "Experienced tax practitioner" means an Illinois-licensed
18certified public accountant, an Illinois-licensed attorney, or
19an enrolled agent licensed for a minimum of 8 years with
20substantial knowledge of Illinois tax laws and regulations.
21    "Participating taxpayer" means any person subject to the
22revenue laws administered by the Department who enters into an
23engagement with a qualified practitioner for tax compliance
24review and who is approved by the Department under the
25certified audit project.

 

 

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1    "Qualified practitioner" means an experienced tax
2practitioner a certified public accountant who is licensed to
3practice in Illinois and who has completed the certification
4program. The phrase "completed the certification program"
5means the participant has met all requirements for the
6certified audit training course, achieved the required score on
7the certification test as approved by the Department, and has
8been certified by the Department.
9(Source: P.A. 92-456, eff. 8-21-01.)
 
10    (20 ILCS 2510/2510-10)
11    Sec. 2510-10. Certified audit project.
12    (a) Subject to appropriation, the Department shall is
13authorized to initiate a certified audit pilot project to
14further enhance tax compliance reviews performed by qualified
15practitioners and to encourage taxpayers to hire qualified
16practitioners at their own expense to review and report on
17their sales tax and use tax compliance. The nature of the
18certified audit work performed by qualified practitioners
19shall be agreed-upon procedures in which the Department is the
20specified user of the resulting report.
21    (b) As an incentive for taxpayers to incur the costs of a
22certified audit, the Department shall abate penalties and
23interest due on any tax liabilities revealed by a certified
24audit, except that this authority to abate penalties or
25interest shall not apply to any liability for taxes that were

 

 

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1collected by the participating taxpayer but not remitted to the
2Department nor shall the Department have the authority to abate
3fraud penalties.
4    (c) The certified audit pilot project shall apply only to
5occupation and use taxes administered and collected by the
6Department.
7    (d) The certified audit pilot project shall not extend
8beyond July 1, 2020 July 1, 2004.
9(Source: P.A. 92-456, eff. 8-21-01.)
 
10    (20 ILCS 2510/2510-30)
11    Sec. 2510-30. Rules. To implement the certified audit
12project, the Department shall have authority to adopt rules no
13later than 180 days after the effective date of this amendatory
14Act of the 99th General Assembly, including, but not limited
15to:
16        (1) The scope and availability of the certification
17    program required for participation in the project;
18        (2) The requirements and basis for establishing just
19    cause for approval or rejection of participation by
20    taxpayers;
21        (3) Procedures for assessment, collection, and payment
22    of liabilities or refund of overpayments and provisions for
23    taxpayers to obtain informal and formal review of certified
24    audit results;
25        (4) The nature, frequency, and basis for the

 

 

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1    Department's review of certified audits conducted by
2    qualified practitioners, including the requirements for
3    documentation, work-paper retention and access, and
4    reporting; and
5        (5) Requirements for conducting certified audits and
6    for review of agreed-upon procedures.
7(Source: P.A. 92-456, eff. 8-21-01.)