Full Text of SB2875 95th General Assembly
SB2875eng 95TH GENERAL ASSEMBLY
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Department of Revenue Law of the
Civil | 5 |
| Administrative Code of Illinois is amended by changing Section | 6 |
| 2505-200 as follows:
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| (20 ILCS 2505/2505-200) (was 20 ILCS 2505/39c-1a)
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| Sec. 2505-200. Electronic filing rules. | 9 |
| (a) The Department may adopt
rules to authorize the | 10 |
| electronic filing of any return or document required to
be | 11 |
| filed under any Act administered by the Department. | 12 |
| (b) The Department may adopt rules to require the | 13 |
| electronic filing of the income and replacement tax return | 14 |
| required to be filed under the Illinois Income Tax Act for a | 15 |
| taxable year by any taxpayer (other than an individual) who is | 16 |
| required to file its federal income tax return electronically | 17 |
| for the taxable year. | 18 |
| (c)
In the case of an electronically filed return or other | 19 |
| document required to
be filed with the Department or maintained | 20 |
| by any taxpayer, these rules may set
forth standards that | 21 |
| provide for acceptance of a signature in a form other than
in | 22 |
| the proper handwriting of the person.
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| (Source: P.A. 91-239, eff. 1-1-00.)
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| Section 10. The Illinois Income Tax Act is amended by | 2 |
| changing Sections 502, 911.1, and 911.2 as follows:
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| (35 ILCS 5/502) (from Ch. 120, par. 5-502)
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| Sec. 502. Returns and notices.
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| (a) In general. A return with respect to the taxes imposed | 6 |
| by this
Act shall be made by every person for any taxable year:
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| (1) for which such person is liable for a tax imposed | 8 |
| by this Act,
or
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| (2) in the case of a resident or in the case of a | 10 |
| corporation which
is qualified to do business in this | 11 |
| State, for which such person is
required to make a federal | 12 |
| income tax return, regardless of whether such
person is | 13 |
| liable for a tax imposed by this Act. However, this | 14 |
| paragraph
shall not require a resident to make a return if | 15 |
| such person has
an
Illinois base income of the basic amount | 16 |
| in Section 204(b) or
less and is either claimed as a | 17 |
| dependent on
another person's tax return under the Internal | 18 |
| Revenue Code of 1986, or is
claimed as a dependent on | 19 |
| another person's tax return under this Act.
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| Notwithstanding the provisions of paragraph (1), a | 21 |
| nonresident whose Illinois income tax liability under | 22 |
| subsections (a), (b), (c), and (d) of Section 201 of this Act | 23 |
| is paid in full after taking into account the credits allowed | 24 |
| under subsection (f) of this Section or allowed under Section |
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| 709.5 of this Act shall not be required to file a return under | 2 |
| this subsection (a).
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| (b) Fiduciaries and receivers.
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| (1) Decedents. If an individual is deceased, any return | 5 |
| or notice
required of such individual under this Act shall | 6 |
| be made by his
executor, administrator, or other person | 7 |
| charged with the property of
such decedent.
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| (2) Individuals under a disability. If an individual is | 9 |
| unable
to make a return or notice required under this Act, | 10 |
| the return or notice
required of such individual shall be | 11 |
| made by his duly authorized agent,
guardian, fiduciary or | 12 |
| other person charged with the care
of the person or | 13 |
| property of such individual.
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| (3) Estates and trusts. Returns or notices required of | 15 |
| an estate
or a trust shall be made by the fiduciary | 16 |
| thereof.
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| (4) Receivers, trustees and assignees for | 18 |
| corporations. In a
case where a receiver, trustee in | 19 |
| bankruptcy, or assignee, by order of a
court of competent | 20 |
| jurisdiction, by operation of law, or otherwise, has
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| possession of or holds title to all or substantially all | 22 |
| the property or
business of a corporation, whether or not | 23 |
| such property or business is
being operated, such receiver, | 24 |
| trustee, or assignee shall make the
returns and notices | 25 |
| required of such corporation in the same manner and
form as | 26 |
| corporations are required to make such returns and notices.
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| (c) Joint returns by husband and wife.
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| (1) Except as provided in paragraph (3) : , | 3 |
| (A) if a husband and wife file a
joint federal | 4 |
| income tax return for a taxable year ending before | 5 |
| December 31, 2008 they shall file a joint
return under | 6 |
| this Act for such taxable year and their liabilities | 7 |
| shall be
joint and several ; , but | 8 |
| (B) if a husband and wife file a joint federal | 9 |
| income tax return for a taxable year ending on or after | 10 |
| December 31, 2008, they may elect to file separate | 11 |
| returns under this Act for such taxable year. The | 12 |
| election under this paragraph must be made on or before | 13 |
| the due date (including extensions) of the return and, | 14 |
| once made, shall be irrevocable. If no election is | 15 |
| timely made under this paragraph for a taxable year: | 16 |
| (i) the couple must file a joint return under | 17 |
| this Act for such taxable year, | 18 |
| (ii) their liabilities shall be joint and | 19 |
| several, and | 20 |
| (iii) any overpayment for that taxable year | 21 |
| may be withheld under Section 909 of this Act or | 22 |
| under Section 2505-275 of the Civil Administrative | 23 |
| Code of Illinois and applied against a debt of | 24 |
| either spouse without regard to the amount of the | 25 |
| overpayment attributable to the other spouse; and | 26 |
| (C) if the federal income tax liability of either |
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| spouse is
determined on a separate federal income tax | 2 |
| return, they shall file separate
returns under this | 3 |
| Act.
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| (2) If neither spouse is required to file a federal | 5 |
| income tax
return and either or both are required to file a | 6 |
| return under this Act,
they may elect to file separate or | 7 |
| joint returns and pursuant to such
election their | 8 |
| liabilities shall be separate or joint and several.
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| (3) If either husband or wife is a resident and the | 10 |
| other is a
nonresident, they shall file separate returns in | 11 |
| this State on such
forms as may be required by the | 12 |
| Department in which event their tax
liabilities shall be | 13 |
| separate; but if they file a joint federal income tax | 14 |
| return for a taxable year, they may elect to determine | 15 |
| their
joint net income and file a joint return for that | 16 |
| taxable year under the provisions of paragraph (i) of this | 17 |
| subsection as if both were residents and
in such case, | 18 |
| their liabilities shall be joint and several.
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| (4) Innocent spouses.
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| (A) However, for tax liabilities arising and paid | 21 |
| prior to August 13,
1999, an innocent spouse shall be | 22 |
| relieved of
liability for tax
(including interest and | 23 |
| penalties) for any taxable year for which a joint
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| return has been made, upon submission of proof that the | 25 |
| Internal Revenue
Service has made a determination | 26 |
| under Section 6013(e) of the Internal
Revenue Code, for |
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| the same taxable year, which determination relieved | 2 |
| the
spouse from liability for federal income taxes.
If | 3 |
| there is no federal income tax liability at issue for | 4 |
| the
same taxable year, the Department shall rely on the | 5 |
| provisions of Section
6013(e) to determine whether the | 6 |
| person requesting innocent spouse abatement of
tax, | 7 |
| penalty, and interest is entitled to that relief.
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| (B) For tax liabilities arising on and after August | 9 |
| 13, 1999 or which arose prior to that date, but remain | 10 |
| unpaid as of that date, if
an individual
who filed a | 11 |
| joint return for any taxable year has made an election | 12 |
| under this
paragraph, the individual's liability for | 13 |
| any tax shown on the joint return
shall not exceed the | 14 |
| individual's separate return amount and the | 15 |
| individual's
liability for any deficiency assessed for | 16 |
| that taxable year shall not exceed
the portion of the | 17 |
| deficiency properly allocable to the individual. For
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| purposes of this paragraph:
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| (i) An election properly made pursuant to | 20 |
| Section 6015 of the Internal
Revenue Code shall | 21 |
| constitute an election under this paragraph, | 22 |
| provided that
the election shall not be effective | 23 |
| until the individual has notified the
Department | 24 |
| of the election in the form and manner prescribed | 25 |
| by the Department.
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| (ii) If no election has been made under Section |
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| 6015, the individual
may make an election under | 2 |
| this paragraph in the form and manner prescribed by
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| the Department, provided that no election may be | 4 |
| made if the Department finds
that assets were | 5 |
| transferred
between individuals filing a joint | 6 |
| return as part of a scheme by such
individuals to | 7 |
| avoid payment of Illinois income tax and the | 8 |
| election shall not
eliminate the individual's | 9 |
| liability for any portion of a deficiency
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| attributable to an error on the return of which the | 11 |
| individual had actual
knowledge as of the date of | 12 |
| filing.
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| (iii) In determining the separate return | 14 |
| amount or portion of any
deficiency attributable | 15 |
| to an individual, the Department shall follow the
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| provisions in subsections (c) and (d) of Section | 17 |
| 6015 of the Internal Revenue Code.
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| (iv) In determining the validity of an | 19 |
| individual's election under
subparagraph (ii) and | 20 |
| in determining an electing individual's separate | 21 |
| return
amount or portion of any deficiency under | 22 |
| subparagraph (iii), any determination
made by the | 23 |
| Secretary of the Treasury, by the United States Tax | 24 |
| Court on
petition for review of a determination by | 25 |
| the Secretary of the Treasury, or on
appeal from | 26 |
| the United States Tax Court under Section 6015 of
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| the Internal
Revenue Code regarding criteria for | 2 |
| eligibility or under subsection (d) of
Section | 3 |
| 6015
of the Internal Revenue Code regarding the | 4 |
| allocation of any item of income,
deduction, | 5 |
| payment, or credit between an individual making | 6 |
| the federal election
and that individual's spouse | 7 |
| shall be conclusively presumed to be correct.
With | 8 |
| respect to any item that is not the subject of a | 9 |
| determination by the
Secretary of the Treasury or | 10 |
| the federal courts, in any proceeding
involving | 11 |
| this subsection, the
individual making the | 12 |
| election shall have the burden of proof with | 13 |
| respect to
any item except that the Department | 14 |
| shall have the burden of proof with respect
to | 15 |
| items in subdivision (ii).
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| (v) Any election made by an individual under | 17 |
| this subsection shall
apply to all years for which | 18 |
| that individual and the spouse named in the
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| election have filed a joint return.
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| (vi) After receiving a notice that the federal | 21 |
| election has been made
or after receiving an | 22 |
| election under subdivision (ii), the Department | 23 |
| shall
take no collection action against the | 24 |
| electing individual for any liability
arising from | 25 |
| a joint return covered by the election until the | 26 |
| Department has
notified the electing individual in |
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| writing that the election is invalid or of
the | 2 |
| portion of the liability the Department has | 3 |
| allocated to the electing
individual. Within 60 | 4 |
| days (150 days if the individual is outside the | 5 |
| United
States) after the issuance of such | 6 |
| notification, the individual may file a
written | 7 |
| protest of the denial of the election or of the | 8 |
| Department's
determination of the liability | 9 |
| allocated to him or her and shall be granted a
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| hearing within the Department under the provisions | 11 |
| of Section 908. If a
protest is filed, the | 12 |
| Department shall take no collection action against | 13 |
| the
electing individual until the decision | 14 |
| regarding the protest has become final
under | 15 |
| subsection (d) of Section 908 or, if | 16 |
| administrative review of the
Department's decision
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| is requested under Section 1201, until the | 18 |
| decision of the court becomes
final.
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| (d) Partnerships. Every partnership having any base income
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| allocable to this State in accordance with section 305(c) shall | 21 |
| retain
information concerning all items of income, gain, loss | 22 |
| and
deduction; the names and addresses of all of the partners, | 23 |
| or names and
addresses of members of a limited liability | 24 |
| company, or other
persons who would be entitled to share in the | 25 |
| base income of the
partnership if distributed; the amount of | 26 |
| the distributive share of
each; and such other pertinent |
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| information as the Department may by
forms or regulations | 2 |
| prescribe. The partnership shall make that information
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| available to the Department when requested by the Department.
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| (e) For taxable years ending on or after December 31, 1985, | 5 |
| and before
December 31, 1993, taxpayers
that are corporations | 6 |
| (other than Subchapter S corporations) having the
same taxable | 7 |
| year and that are members of the same unitary business group
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| may elect to be treated as one taxpayer for purposes of any | 9 |
| original return,
amended return which includes the same | 10 |
| taxpayers of the unitary group which
joined in the election to | 11 |
| file the original return, extension, claim for
refund, | 12 |
| assessment, collection and payment and determination of the
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| group's tax liability under this Act. This subsection (e) does | 14 |
| not permit the
election to be made for some, but not all, of | 15 |
| the purposes enumerated above.
For taxable years ending on or | 16 |
| after December 31, 1987, corporate members
(other than | 17 |
| Subchapter S corporations) of the same unitary business group
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| making this subsection (e) election are not required to have | 19 |
| the same taxable
year.
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| For taxable years ending on or after December 31, 1993, | 21 |
| taxpayers that are
corporations (other than Subchapter S | 22 |
| corporations) and that are members of
the same unitary business | 23 |
| group shall be treated as one taxpayer for purposes
of any | 24 |
| original return, amended return which includes the same | 25 |
| taxpayers of the
unitary group which joined in filing the | 26 |
| original return, extension, claim for
refund, assessment, |
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| collection and payment and determination of the group's tax
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| liability under this Act.
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| (f) The Department may promulgate regulations to permit | 4 |
| nonresident
individual partners of the same partnership, | 5 |
| nonresident Subchapter S
corporation shareholders of the same | 6 |
| Subchapter S corporation, and
nonresident individuals | 7 |
| transacting an insurance business in Illinois under
a Lloyds | 8 |
| plan of operation, and nonresident individual members of the | 9 |
| same
limited liability company that is treated as a partnership | 10 |
| under Section 1501
(a)(16) of this Act, to file composite | 11 |
| individual income tax returns
reflecting the composite income | 12 |
| of such individuals allocable to Illinois
and to make composite | 13 |
| individual income tax payments. The Department may
by | 14 |
| regulation also permit such composite returns to include the | 15 |
| income tax
owed by Illinois residents attributable to their | 16 |
| income from partnerships,
Subchapter S corporations, insurance | 17 |
| businesses organized under a Lloyds
plan of operation, or | 18 |
| limited liability companies that are treated as
partnership | 19 |
| under Section 1501(a)(16) of this Act, in which case such
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| Illinois residents will be permitted to claim credits on their | 21 |
| individual
returns for their shares of the composite tax | 22 |
| payments. This paragraph of
subsection (f) applies to taxable | 23 |
| years ending on or after December 31, 1987.
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| For taxable years ending on or after December 31, 1999, the | 25 |
| Department may,
by regulation, also permit any persons | 26 |
| transacting an insurance business
organized under a Lloyds plan |
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| of operation to file composite returns reflecting
the income of | 2 |
| such persons allocable to Illinois and the tax rates applicable
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| to such persons under Section 201 and to make composite tax | 4 |
| payments and shall,
by regulation, also provide that the income | 5 |
| and apportionment factors
attributable to the transaction of an | 6 |
| insurance business organized under a
Lloyds plan of operation | 7 |
| by any person joining in the filing of a composite
return | 8 |
| shall, for purposes of allocating and apportioning income under | 9 |
| Article
3 of this Act and computing net income under Section | 10 |
| 202 of this Act, be
excluded from any other income and | 11 |
| apportionment factors of that person or of
any unitary business | 12 |
| group, as defined in subdivision (a)(27) of Section 1501,
to | 13 |
| which that person may belong.
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| For taxable years ending on or after December 31, 2008, | 15 |
| every nonresident shall be allowed a credit against his or her | 16 |
| liability under subsections (a) and (b) of Section 201 for any | 17 |
| amount of tax reported on a composite return and paid on his or | 18 |
| her behalf under this subsection (f). Residents (other than | 19 |
| persons transacting an insurance business organized under a | 20 |
| Lloyds plan of operation) may claim a credit for taxes reported | 21 |
| on a composite return and paid on their behalf under this | 22 |
| subsection (f) only as permitted by the Department by rule.
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| (f-5) For taxable years ending on or after December 31, | 24 |
| 2008, the Department may adopt rules to provide that, when a | 25 |
| partnership or Subchapter S corporation has made an error in | 26 |
| determining the amount of any item of income, deduction, |
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| addition, subtraction, or credit required to be reported on its | 2 |
| return that affects the liability imposed under this Act on a | 3 |
| partner or shareholder, the partnership or Subchapter S | 4 |
| corporation may report the changes in liabilities of its | 5 |
| partners or shareholders and claim a refund of the resulting | 6 |
| overpayments, or pay the resulting underpayments, on behalf of | 7 |
| its partners and shareholders.
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| (g) The Department may adopt rules to authorize the | 9 |
| electronic filing of
any return required to be filed under this | 10 |
| Section.
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| (Source: P.A. 94-1074, eff. 12-26-06; 95-233, eff. 8-16-07.)
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| (35 ILCS 5/911.1) (from Ch. 120, par. 9-911.1)
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| Sec. 911.1. If the Department withholds any refund due | 14 |
| under this Act
because of any other liability to the State and | 15 |
| if the return for which
such refund is due is a joint return | 16 |
| for a taxable year ending before December 31, 2008 , the | 17 |
| taxpayer who jointly filed such
return and who is not liable to | 18 |
| the State shall be entitled to that portion
of the refund | 19 |
| attributable to himself or herself.
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| (Source: P.A. 85-473.)
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| (35 ILCS 5/911.2)
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| Sec. 911.2. Refunds withheld; tax claims of other states.
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| (a) Definitions. In this Section the following terms have | 24 |
| the meanings
indicated.
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| "Claimant state" means any state or the District of | 2 |
| Columbia that requests
the withholding of a refund pursuant to | 3 |
| this Section and that extends a like
comity for the collection | 4 |
| of taxes owed to this State.
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| "Income tax" means any amount of income tax imposed on | 6 |
| taxpayers under the
laws of the State of Illinois or the | 7 |
| claimant state, including additions to tax
for penalties and | 8 |
| interest.
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| "Refund" means a refund of overpaid income taxes imposed by | 10 |
| the State of
Illinois or the claimant state.
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| "Tax officer" means a unit or official of the claimant | 12 |
| state, or the duly
authorized agent of that unit or official, | 13 |
| charged with the imposition,
assessment, or collection of state | 14 |
| income taxes.
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| "Taxpayer" means any individual person identified by a | 16 |
| claimant state under
this Section
as owing taxes to that | 17 |
| claimant state, and in the case of a refund arising from
the | 18 |
| filing of a joint return, the taxpayer's spouse.
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| (b) In general. Except as provided in subsection (c) of | 20 |
| this Section, a tax
officer may:
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| (1) certify to the Director the existence of a | 22 |
| taxpayer's delinquent
income tax liability; and
| 23 |
| (2) request the Director to withhold any refund to | 24 |
| which the taxpayer is
entitled.
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| (c) Comity. A tax officer may not certify or request the | 26 |
| Director to
withhold a refund unless the laws of the claimant |
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| state:
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| (1) allow the Director to certify an income tax | 3 |
| liability;
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| (2) allow the Director to request the tax officer to | 5 |
| withhold the
taxpayer's tax refund; and
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| (3) provide for the payment of the refund to the State | 7 |
| of Illinois.
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| (d) Certification. A certification by a tax officer to the | 9 |
| Director shall
include:
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| (1) the full name and address of the taxpayer and any | 11 |
| other names known to
be used by the taxpayer;
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| (2) the social security number or federal tax | 13 |
| identification number of the
taxpayer;
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| (3) the amount of the income tax liability; and
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| (4) a statement that all administrative and judicial | 16 |
| remedies and appeals
have been exhausted or have lapsed and | 17 |
| that the assessment of tax, interest,
and penalty has | 18 |
| become final.
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| (e) Notification. As to any taxpayer due a refund, the | 20 |
| Director shall:
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| (1) notify the taxpayer that a claimant state has | 22 |
| provided certification
of the existence of an income tax | 23 |
| liability;
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| (2) inform the taxpayer of the tax liability certified, | 25 |
| including a
detailed statement for each taxable year | 26 |
| showing tax, interest, and penalty;
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| (3) inform the taxpayer that failure to file a protest | 2 |
| in accordance with
subsection (f) of this Section shall | 3 |
| constitute a waiver of any demand against
this State for | 4 |
| the amount certified;
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| (3.5) inform the taxpayer that the refund has been | 6 |
| withheld and that the
tax liability has been paid to the | 7 |
| claimant state as provided in subsection (i)
of this | 8 |
| Section;
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| (4) provide the taxpayer with notice of an opportunity | 10 |
| to request a
hearing to challenge the certification; and
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| (5) inform the taxpayer that the hearing may be | 12 |
| requested (i) pursuant to
Section 910 of this Act, or (ii) | 13 |
| with the tax officer, in accordance with the
laws of the | 14 |
| claimant state.
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| (f) Protest of withholding. A taxpayer may protest the | 16 |
| withholding of a
refund pursuant to Section 910 of this Act | 17 |
| (except that the protest shall be
filed within 30 days after | 18 |
| the date of the Director's notice of certification
pursuant to | 19 |
| subsection (e) of this Section).
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| (g) Certification as prima facie evidence. If the taxpayer | 21 |
| requests a
hearing pursuant to Section 910 of this Act, the | 22 |
| certification of the tax
officer shall be prima facie evidence | 23 |
| of the correctness of the taxpayer's
delinquent income tax | 24 |
| liability to the certifying state.
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| (h) Rights of spouses to refunds from joint returns. If a | 26 |
| certification is
based upon the tax debt of only one taxpayer |
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| and if the refund is based upon a
joint personal income tax | 2 |
| return for a taxable year ending before December 31, 2008 , the | 3 |
| nondebtor spouse shall have the right to:
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| (1) notification, as provided in subsection (e) of this | 5 |
| Section;
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| (2) protest, as to the withholding of such spouse's | 7 |
| share of the refund,
as provided in subsection (f) of this | 8 |
| Section; and
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| (3) payment of his or her share of the refund, provided | 10 |
| the amount of the
overpayment refunded to the spouse shall | 11 |
| not exceed the amount of the joint
overpayment.
| 12 |
| (i) Withholding and payment of refund. Upon receipt of a | 13 |
| request for withholding in accordance
with subsection (b) of | 14 |
| this Section, the Director shall:
| 15 |
| (1) withhold any refund that is certified by the tax | 16 |
| officer;
| 17 |
| (2) pay to the claimant state the entire refund or the | 18 |
| amount certified,
whichever is less;
| 19 |
| (3) pay any refund in excess of the amount certified to | 20 |
| the taxpayer; and
| 21 |
| (4) if a refund is less than the amount certified, | 22 |
| withhold amounts from
subsequent refunds due the taxpayer, | 23 |
| if the laws of the claimant state provide
that the claimant | 24 |
| state shall withhold subsequent refunds of taxpayers
| 25 |
| certified to that state by the Director.
| 26 |
| (j) Determination that withholding cannot be made. After |
|
|
|
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| 1 |
| receiving a
certification from a tax officer, the Director | 2 |
| shall notify the claimant state
if the Director determines that | 3 |
| a withholding cannot be made.
| 4 |
| (k) Director's authority. The Director shall have the | 5 |
| authority to enter
into agreements with the tax officers of | 6 |
| claimant state relating to:
| 7 |
| (1) procedures and methods to be employed by a claimant | 8 |
| state with
respect to the operation of this Section;
| 9 |
| (2) safeguards against the disclosure or inappropriate | 10 |
| use of any
information obtained or maintained pursuant to | 11 |
| this Section that identifies,
directly or indirectly, a | 12 |
| particular taxpayer;
| 13 |
| (3) a minimum tax debt, amounts below which, in light | 14 |
| of administrative
expenses and efficiency, shall, in the | 15 |
| Director's discretion, not be subject to
the withholding | 16 |
| procedures set forth in this Section.
| 17 |
| (l) Remedy not exclusive. The collection procedures | 18 |
| prescribed by this
Section are in addition to, and not in | 19 |
| substitution for, any other remedy
available by law.
| 20 |
| (Source: P.A. 92-492, eff. 1-1-02; 92-826, eff. 8-21-02.)
| 21 |
| Section 15. The Use Tax Act is amended by changing Section | 22 |
| 10 as follows:
| 23 |
| (35 ILCS 105/10) (from Ch. 120, par. 439.10)
| 24 |
| Sec. 10. Except as to motor vehicles, aircraft, watercraft, |
|
|
|
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| 1 |
| and
trailers, and except as to cigarettes as defined in the | 2 |
| Cigarette Use Tax, when tangible personal
property is
purchased | 3 |
| from a retailer for use in this State by a purchaser
who did | 4 |
| not pay the tax imposed by this Act to the retailer, and who | 5 |
| does not
file returns with the Department as a retailer under | 6 |
| Section 9 of this
Act, such purchaser (by the last day of the | 7 |
| month following the calendar
month in which such purchaser | 8 |
| makes any payment upon the selling price of
such property) | 9 |
| shall, except as provided in this Section, file
a return with | 10 |
| the Department and pay the tax upon that portion of the
selling | 11 |
| price so paid by the purchaser during the preceding calendar | 12 |
| month.
When tangible personal property, including but not | 13 |
| limited to motor vehicles
and aircraft, is purchased by a | 14 |
| lessor, under a lease for
one year or longer, executed or in | 15 |
| effect at the time of purchase to an
interstate carrier for | 16 |
| hire, who did not pay the tax imposed by this Act to the
| 17 |
| retailer, such lessor (by the last day of the month following | 18 |
| the calendar
month in which such property reverts to the use of | 19 |
| such lessor) shall file
a return with the Department and pay | 20 |
| the tax upon the fair market value of
such property on the date | 21 |
| of such reversion.
However, in determining the fair market | 22 |
| value at the time of reversion, the
fair market value of such | 23 |
| property shall not exceed the original purchase price
of the | 24 |
| property that was paid by the lessor at the time of purchase.
| 25 |
| Such return shall be filed on
a form prescribed by the | 26 |
| Department and shall contain such information as
the Department |
|
|
|
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| 1 |
| may reasonably require. Such return and payment from the
| 2 |
| purchaser shall be submitted to the Department sooner than the | 3 |
| last day of
the month after the month in which the purchase is | 4 |
| made to the extent that
that may be necessary in order to | 5 |
| secure the title to a motor vehicle or
the certificate of | 6 |
| registration for an aircraft. However, except as to motor
| 7 |
| vehicles and aircraft, and except as to cigarettes as defined | 8 |
| in the Cigarette Use Tax Act, if the
purchaser's annual use tax | 9 |
| liability does not exceed $600, the purchaser
may file the | 10 |
| return on an annual basis on or before April 15th of the year
| 11 |
| following the year use tax liability was incurred.
| 12 |
| If cigarettes, as defined in the Cigarette Use Tax Act, are | 13 |
| purchased from a retailer for use in this State by a purchaser | 14 |
| who did not pay the tax imposed by this Act to the retailer, | 15 |
| and who does not file returns with the Department as a retailer | 16 |
| under Section 9 of this Act, such purchaser must, within 30 | 17 |
| days after acquiring the cigarettes, file a return with the | 18 |
| Department and pay the tax upon that portion of the selling | 19 |
| price so paid by the purchaser for the cigarettes. | 20 |
| In addition with respect to motor vehicles,
aircraft, | 21 |
| watercraft, and trailers, a purchaser of such tangible personal
| 22 |
| property for use in this
State, who purchases such tangible | 23 |
| personal property from an out-of-state
retailer, shall file | 24 |
| with the Department, upon a form to be prescribed and
supplied | 25 |
| by the Department, a return for each such item of tangible
| 26 |
| personal property purchased, except that if, in the same |
|
|
|
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| 1 |
| transaction, (i) a
purchaser of motor vehicles,
aircraft, | 2 |
| watercraft, or trailers who is a retailer of motor vehicles,
| 3 |
| aircraft, watercraft, or trailers purchases more than one motor | 4 |
| vehicle,
aircraft, watercraft, or trailer for the purpose of | 5 |
| resale or (ii) a purchaser
of motor vehicles, aircraft, | 6 |
| watercraft, or trailers purchases more
than one motor vehicle, | 7 |
| aircraft, watercraft, or trailer for use as qualifying
rolling | 8 |
| stock as provided in Section 3-55 of this Act, then the | 9 |
| purchaser may
report the purchase of all motor vehicles, | 10 |
| aircraft, watercraft, or trailers
involved in that transaction | 11 |
| to the Department on a single return prescribed by
the | 12 |
| Department. Such return in the case of motor vehicles and
| 13 |
| aircraft must show the name and address of the seller, the | 14 |
| name, address of
purchaser, the amount of the selling price | 15 |
| including the amount allowed by
the retailer for traded in | 16 |
| property, if any; the amount allowed by the
retailer for the | 17 |
| traded-in tangible personal property, if any, to the
extent to | 18 |
| which Section 2 of this Act allows an exemption for the value | 19 |
| of
traded-in property; the balance payable after deducting such | 20 |
| trade-in
allowance from the total selling price; the amount of | 21 |
| tax due from the
purchaser with respect to such transaction; | 22 |
| the amount of tax collected
from the purchaser by the retailer | 23 |
| on such transaction (or satisfactory
evidence that such tax is | 24 |
| not due in that particular instance if that is
claimed to be | 25 |
| the fact); the place and date of the sale, a sufficient
| 26 |
| identification of the property sold, and such other information |
|
|
|
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| 1 |
| as the
Department may reasonably require.
| 2 |
| Such return shall be filed not later than 30 days after | 3 |
| such motor
vehicle or aircraft is brought into this State for | 4 |
| use.
| 5 |
| For purposes of this Section, "watercraft" means a Class 2, | 6 |
| Class 3, or
Class 4 watercraft as defined in Section 3-2 of the | 7 |
| Boat Registration and
Safety Act, a personal watercraft, or any | 8 |
| boat equipped with an inboard
motor.
| 9 |
| The return and tax remittance or proof of exemption from | 10 |
| the tax that is
imposed by this Act may be transmitted to the | 11 |
| Department by way of the
State agency with which, or State | 12 |
| officer with whom, the tangible personal
property must be | 13 |
| titled or registered (if titling or registration is
required) | 14 |
| if the Department and such agency or State officer determine | 15 |
| that
this procedure will expedite the processing of | 16 |
| applications for title or
registration.
| 17 |
| With each such return, the purchaser shall remit the proper | 18 |
| amount of tax
due (or shall submit satisfactory evidence that | 19 |
| the sale is not taxable if
that is the case), to the Department | 20 |
| or its agents, whereupon the
Department shall issue, in the | 21 |
| purchaser's name, a tax receipt (or a
certificate of exemption | 22 |
| if the Department is satisfied that the particular
sale is tax | 23 |
| exempt) which such purchaser may submit to the agency with
| 24 |
| which, or State officer with whom, he must title or register | 25 |
| the tangible
personal property that is involved (if titling or | 26 |
| registration is required)
in support of such purchaser's |
|
|
|
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| 1 |
| application for an Illinois certificate or
other evidence of | 2 |
| title or registration to such tangible personal property.
| 3 |
| When a purchaser pays a tax imposed by this Act directly to | 4 |
| the Department,
the Department (upon request therefor from such | 5 |
| purchaser) shall issue an
appropriate receipt to such purchaser | 6 |
| showing that he has paid such tax to
the Department. Such | 7 |
| receipt shall be sufficient to relieve the purchaser
from | 8 |
| further liability for the tax to which such receipt may refer.
| 9 |
| A user who is liable to pay use tax directly to the | 10 |
| Department only
occasionally and not on a frequently recurring | 11 |
| basis, and who is not
required to file returns with the | 12 |
| Department as a retailer under Section 9
of this Act, or under | 13 |
| the "Retailers' Occupation Tax Act", or as a
registrant with | 14 |
| the Department under the "Service Occupation Tax Act" or
the | 15 |
| "Service Use Tax Act", need not register with the Department.
| 16 |
| However, if such a user has a frequently recurring direct use | 17 |
| tax liability
to pay to the Department, such user shall be | 18 |
| required to register with the
Department on forms prescribed by | 19 |
| the Department and to obtain and display
a certificate of | 20 |
| registration from the Department. In that event, all of
the | 21 |
| provisions of Section 9 of this Act concerning the filing of | 22 |
| regular
monthly, quarterly or annual tax returns and all of the | 23 |
| provisions of
Section 2a of the "Retailers' Occupation Tax Act" | 24 |
| concerning the
requirements for registrants to post bond or | 25 |
| other security with the
Department, as the provisions of such | 26 |
| sections now exist or may hereafter
be amended, shall apply to |
|
|
|
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|
| 1 |
| such users to the same extent as if such
provisions were | 2 |
| included herein.
| 3 |
| (Source: P.A. 91-541, eff. 8-13-99; 91-901, eff. 1-1-01.)
| 4 |
| Section 99. Effective date. This Act takes effect upon | 5 |
| becoming law.
|
|