Full Text of SB0377 96th General Assembly
SB0377ham005 96TH GENERAL ASSEMBLY
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Rep. Jack D. Franks
Filed: 5/21/2010
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| AMENDMENT TO SENATE BILL 377
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| AMENDMENT NO. ______. Amend Senate Bill 377, AS AMENDED, by | 3 |
| replacing everything after the enacting clause with the | 4 |
| following:
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| "Article 5. | 6 |
| Franchise Tax and License Fee Amnesty Act of 2010 | 7 |
| Section 5-1. Short title. This Act may be cited as the | 8 |
| Franchise Tax and License Fee Amnesty Act of 2010. | 9 |
| Section 5-5. Definitions. As used in this Act: | 10 |
| "Secretary" means the Illinois Secretary of State.
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| "Rules" means any rules adopted or forms prescribed by the | 12 |
| Secretary.
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| "Taxable period" means any period of time for which any | 14 |
| franchise tax is imposed by and owed to the State of Illinois | 15 |
| by any domestic corporation or any license fee is imposed by |
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| and owed to the State of Illinois by any foreign corporation.
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| "Taxpayer" means any domestic or foreign corporation, | 3 |
| subject to franchise tax or license fee imposed by Article XV | 4 |
| of the Business Corporation Act of 1983.
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| Section 5-10. Amnesty program. The Secretary shall | 6 |
| establish an amnesty program for all taxpayers owing any | 7 |
| franchise tax or license fee imposed by Article XV of the | 8 |
| Business Corporation Act of 1983. The amnesty program shall be | 9 |
| for a period from April 21, 2010 through November 30, 2010. The | 10 |
| amnesty program shall provide that, upon payment by a taxpayer | 11 |
| of all franchise taxes and license fees due from that taxpayer | 12 |
| to the State of Illinois for any taxable period, the Secretary | 13 |
| shall abate and not seek to collect any interest or penalties | 14 |
| that may be applicable, and the Secretary shall not seek civil | 15 |
| or criminal prosecution for any taxpayer for the period of time | 16 |
| for which amnesty has been granted to the taxpayer. Failure to | 17 |
| pay all taxes due to the State for a taxable period shall not | 18 |
| invalidate any amnesty granted under this Act with respect to | 19 |
| the taxes paid pursuant to the amnesty program. | 20 |
| Amnesty shall be granted only if all amnesty conditions are | 21 |
| satisfied by the taxpayer. Amnesty shall not be granted to | 22 |
| taxpayers who are a party to any criminal investigation or to | 23 |
| any civil or criminal litigation initiated by the State of | 24 |
| Illinois against the subject taxpayer independent of the | 25 |
| taxpayer bringing the matter of non-payment of franchise taxes |
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| to the attention of the State of Illinois that is pending in | 2 |
| any circuit court or appellate court or the Supreme Court of | 3 |
| this State for nonpayment, delinquency, or fraud in relation to | 4 |
| any franchise tax or license fee imposed by Article XV of the | 5 |
| Business Corporation Act of 1983. | 6 |
| If a taxpayer pays under this Act all franchise taxes for | 7 |
| the most recent 4-year period due to a previously unreported | 8 |
| increase in paid in capital that occurred prior to that 4-year | 9 |
| period, the taxpayer shall not be obligated to pay any annual | 10 |
| franchise tax, fee, or penalty or interest thereon imposed | 11 |
| under this Act, nor shall any administrative or judicial | 12 |
| sanction (including dissolution) be imposed or enforced nor | 13 |
| access to the courts of this State be denied based upon | 14 |
| nonpayment thereof more than 4 years after the date of filing | 15 |
| the annual report with respect to the period during which the | 16 |
| obligation for the tax, fee, penalty or interest arose. | 17 |
| Voluntary payments made under this Act shall be made by check, | 18 |
| guaranteed remittance, or ACH debit. | 19 |
| If (i) a taxpayer offers to pay a franchise tax to the | 20 |
| Secretary of State pursuant to this Act and is ready and | 21 |
| willing to do so, and (ii) the taxpayer requests confirmation | 22 |
| from the Secretary that such payments will satisfy the | 23 |
| taxpayer's obligations to the Secretary for the applicable | 24 |
| taxable period, but the Secretary does not provide such | 25 |
| confirmation during the amnesty period, and (iii) it is then | 26 |
| determined that, had the taxpayer made such payment during the |
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| amnesty period, the payment would have qualified for the | 2 |
| amnesty, then such payment, if made within 60 days after such | 3 |
| determination, shall qualify for the amnesty. | 4 |
| The Secretary shall adopt rules as necessary to implement | 5 |
| the provisions of this Act. | 6 |
| Except as otherwise provided in this Section, all money | 7 |
| collected under this Act that would otherwise be deposited into | 8 |
| the General Revenue Fund shall be deposited into the General | 9 |
| Revenue Fund. Two percent of all money collected under this Act | 10 |
| shall be deposited by the State Treasurer into the Franchise | 11 |
| Tax and License Fee Amnesty Administration Fund and, subject to | 12 |
| appropriation, shall be used by the Secretary to cover costs | 13 |
| associated with the administration of this Act. | 14 |
| The intent of this Act is to grant amnesty and limited | 15 |
| exposure to all taxpayers other than those who have filed with | 16 |
| fraudulent intent to evade franchise taxes, and this Act shall | 17 |
| be applied by the Secretary accordingly and shall not be | 18 |
| interpreted to deny amnesty based on technicalities to | 19 |
| taxpayers who have acted in good faith. The Secretary shall | 20 |
| have the discretion to settle all disputes with taxpayers | 21 |
| related to franchise taxes whether or not such disputes are | 22 |
| pending in court. | 23 |
| Section 5-90. The Business Corporation Act of 1983 is | 24 |
| amended by changing Sections 15.90 and 16.05 as follows: |
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| (805 ILCS 5/15.90) (from Ch. 32, par. 15.90) | 2 |
| Sec. 15.90. Statute of limitations. | 3 |
| (a) Except as otherwise provided
in this Section and | 4 |
| notwithstanding anything to the contrary contained in
any other | 5 |
| Section of this Act, no domestic corporation or foreign
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| corporation shall be obligated to pay any annual franchise tax, | 7 |
| fee,
or penalty or interest thereon imposed under this Act, nor | 8 |
| shall any
administrative or judicial sanction
(including | 9 |
| dissolution) be imposed or enforced nor access to the courts of
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| this State be denied based upon nonpayment thereof more than 7 | 11 |
| years
after the date of filing the annual report with respect | 12 |
| to the period
during which the obligation for the tax, fee, | 13 |
| penalty or
interest arose, unless (1) within that 7 year period | 14 |
| the Secretary of State
sends a written notice to the | 15 |
| corporation to the effect that (A)
administrative or judicial | 16 |
| action to dissolve the corporation or revoke its
authority for | 17 |
| nonpayment of a tax, fee, penalty or interest
has been | 18 |
| commenced; or (B) the corporation has submitted a report
but | 19 |
| has
failed to pay a tax, fee, penalty or interest required to | 20 |
| be paid
therewith; or (C) a report with respect to an event or | 21 |
| action giving rise
to an obligation to pay a tax, fee, penalty | 22 |
| or interest is required but has
not been filed, or has been | 23 |
| filed and is in error or incomplete; or (2)
the annual report | 24 |
| by the corporation was filed with fraudulent
intent to evade | 25 |
| taxes payable under this Act. A corporation
nonetheless shall | 26 |
| be required to pay all taxes
that would have been payable |
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| during the most recent 7 year period due to a
previously | 2 |
| unreported increase in paid-in capital that occurred prior to
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| that 7 year period and interest and penalties thereon for that | 4 |
| period, except that, from February 1, 2008 through March 15, | 5 |
| 2008, with respect to any corporation that participates in the | 6 |
| Franchise Tax and License Fee Amnesty Act of 2007, and from | 7 |
| April 21, 2010 through November 30, 2010, with respect to any | 8 |
| corporation that participates in the Franchise Tax and License | 9 |
| Fee Amnesty Act of 2010, the corporation shall be only required | 10 |
| to pay all taxes that would have been payable during the most | 11 |
| recent 4 year period due to a previously unreported increase in | 12 |
| paid-in capital that occurred prior to that 7 year period. | 13 |
| (b) If within 2 years following a change in control of a | 14 |
| corporation the
corporation voluntarily pays in good faith all | 15 |
| known obligations of
the corporation imposed by this Article 15 | 16 |
| with respect to reports that
were required to have been filed | 17 |
| since the beginning of the 7 year period
ending on the | 18 |
| effective date of the change in control, no action shall be
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| taken to enforce or collect obligations of that corporation | 20 |
| imposed by this
Article 15 with respect to reports that were | 21 |
| required to have been filed
prior to that 7 year period | 22 |
| regardless of whether the limitation period set
forth in | 23 |
| subsection (a) is otherwise applicable. For purposes of this
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| subsection (b), a change in control means a transaction, or a | 25 |
| series of
transactions consummated within a period of 180 | 26 |
| consecutive days, as a
result of which a person which owned |
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| less than 10% of the shares having the
power to elect directors | 2 |
| of the corporation acquires shares such that the
person becomes | 3 |
| the holder of 80% or more of the shares having such power.
For | 4 |
| purposes of this subsection (b) a person means any natural | 5 |
| person,
corporation, partnership, trust or other entity | 6 |
| together with all other
persons controlled by, controlling or | 7 |
| under common control with such person. | 8 |
| (c) Except as otherwise provided in this Section and | 9 |
| notwithstanding
anything to the contrary contained in any other | 10 |
| Section of this Act, no foreign
corporation that has not | 11 |
| previously obtained authority under
this Act shall, upon | 12 |
| voluntary application for authority filed
with the Secretary of | 13 |
| State prior to January 1, 2001, be obligated to pay any
tax, | 14 |
| fee, penalty, or interest imposed under this Act, nor shall any
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| administrative or judicial sanction be imposed or enforced | 16 |
| based upon
nonpayment thereof with respect to a period during | 17 |
| which the obligation arose
that is prior to January 1, 1993 | 18 |
| unless (1) prior to receipt of the application
for authority | 19 |
| the Secretary of State had sent written notice
to
the | 20 |
| corporation regarding its failure to obtain an application for | 21 |
| authority, (2)
the corporation had submitted an application for | 22 |
| authority
previously but had failed to pay any tax, fee, | 23 |
| penalty or interest to be paid
therewith, or (3) the | 24 |
| application for authority was submitted
by
the corporation with | 25 |
| fraudulent intent to evade taxes payable under this Act.
A
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| corporation nonetheless shall be required to pay all taxes and |
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| fees due under
this Act that would have been payable since | 2 |
| January 1, 1993 as a result of
commencing the transaction of | 3 |
| its business in this State and interest thereon
for that | 4 |
| period. | 5 |
| (Source: P.A. 95-233, eff. 8-16-07; 95-707, eff. 1-11-08; | 6 |
| 96-66, eff. 1-1-10.) | 7 |
| (805 ILCS 5/16.05) (from Ch. 32, par. 16.05) | 8 |
| Sec. 16.05. Penalties and interest imposed upon | 9 |
| corporations. | 10 |
| (a) Each
corporation, domestic or foreign, that fails or | 11 |
| refuses to file any annual
report or report of cumulative | 12 |
| changes in paid-in capital and pay any
franchise tax due | 13 |
| pursuant to the report prior to the first day of its
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| anniversary month
or, in the case of a corporation which has | 15 |
| established an extended filing
month, the extended filing month | 16 |
| of the corporation
shall pay a penalty of 10% of the amount of | 17 |
| any
delinquent franchise tax due for the report. From February | 18 |
| 1, 2008 through March 15, 2008, no penalty shall be imposed | 19 |
| with respect to any amount of delinquent franchise tax paid | 20 |
| pursuant to the Franchise Tax and License Fee Amnesty Act of | 21 |
| 2007. From April 21, 2010 through November 30, 2010, no penalty | 22 |
| shall be imposed with respect to any amount of delinquent | 23 |
| franchise taxes paid pursuant to the Franchise Tax and License | 24 |
| Fee Amnesty Act of 2010.
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| (b) Each corporation, domestic or foreign, that fails or |
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| refuses to file
a report of issuance of shares or increase in | 2 |
| paid-in capital within the
time prescribed by this Act is | 3 |
| subject to a penalty on any obligation
occurring prior to | 4 |
| January 1, 1991, and interest on those obligations on or
after | 5 |
| January 1, 1991, for each calendar month or part of month that | 6 |
| it is
delinquent in the amount of 2% of the amount of license | 7 |
| fees and franchise
taxes provided by this Act to be paid on | 8 |
| account of the issuance of shares
or increase in paid-in | 9 |
| capital. From February 1, 2008 through March 15, 2008, no | 10 |
| penalty shall be imposed, or interest charged, with respect to | 11 |
| any amount of delinquent license fees and franchise taxes paid | 12 |
| pursuant to the Franchise Tax and License Fee Amnesty Act of | 13 |
| 2007. From April 21, 2010 through November 30, 2010, no penalty | 14 |
| shall be imposed, or interest charged, with respect to any | 15 |
| amount of delinquent license fees and franchise taxes paid | 16 |
| pursuant to the Franchise Tax and License Fee Amnesty Act of | 17 |
| 2010.
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| (c) Each corporation, domestic or foreign, that fails or | 19 |
| refuses to file
a
report of cumulative changes in paid-in | 20 |
| capital or report following merger
within the time prescribed | 21 |
| by this Act is subject to interest on or after
January 1, 1992, | 22 |
| for each calendar month or part of month that it is
delinquent, | 23 |
| in the amount of 2% of the amount of franchise taxes provided
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| by this Act to be paid on account of the issuance of shares or | 25 |
| increase in
paid-in capital disclosed on the report of | 26 |
| cumulative changes in paid-in
capital or report following |
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| merger, or $1, whichever is greater. From February 1, 2008 | 2 |
| through March 15, 2008, no interest shall be charged with | 3 |
| respect to any amount of delinquent franchise tax paid pursuant | 4 |
| to the Franchise Tax and License Fee Amnesty Act of 2007. From | 5 |
| April 21, 2010 through November 30, 2010, no interest shall be | 6 |
| charged with respect to any amount of delinquent franchise | 7 |
| taxes paid pursuant to the Franchise Tax and License Fee | 8 |
| Amnesty Act of 2010.
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| (d) If the annual franchise tax, or the supplemental annual | 10 |
| franchise
tax
for any 12-month period commencing July 1, 1968, | 11 |
| or July 1 of any
subsequent year through June 30, 1983, | 12 |
| assessed in accordance with this
Act, is not paid by July 31, | 13 |
| it is delinquent, and there is added a penalty
prior to January | 14 |
| 1, 1991, and interest on and after January 1, 1991, of 2%
for | 15 |
| each month or part of month that it is delinquent commencing | 16 |
| with the
month of August, or $1, whichever is greater. From | 17 |
| February 1, 2008 through March 15, 2008, no penalty shall be | 18 |
| imposed, or interest charged, with respect to any amount of | 19 |
| delinquent franchise taxes paid pursuant to the Franchise Tax | 20 |
| and License Fee Amnesty Act of 2007. From April 21, 2010 | 21 |
| through November 30, 2010, no penalty shall be imposed, or | 22 |
| interest charged, with respect to any amount of delinquent | 23 |
| franchise taxes paid pursuant to the Franchise Tax and License | 24 |
| Fee Amnesty Act of 2010.
| 25 |
| (e) If the supplemental annual franchise tax assessed in | 26 |
| accordance with
the provisions of this Act for the 12-month |
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| period commencing July 1,
1967, is not paid by September 30, | 2 |
| 1967, it is delinquent, and there is
added a penalty prior to | 3 |
| January 1, 1991, and interest on and after
January 1, 1991, of | 4 |
| 2% for each month or part of month that it is
delinquent | 5 |
| commencing with the month of October, 1967. From February 1, | 6 |
| 2008 through March 15, 2008, no penalty shall be imposed, or | 7 |
| interest charged, with respect to any amount of delinquent | 8 |
| franchise taxes paid pursuant to the Franchise Tax and License | 9 |
| Fee Amnesty Act of 2007. From April 21, 2010 through November | 10 |
| 30, 2010, no penalty shall be imposed, or interest charged, | 11 |
| with respect to any amount of delinquent franchise taxes paid | 12 |
| pursuant to the Franchise Tax and License Fee Amnesty Act of | 13 |
| 2010.
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| (f) If any annual franchise tax for any period beginning on | 15 |
| or after
July 1,
1983, is not paid by the time period herein | 16 |
| prescribed, it is delinquent
and there is added a penalty prior | 17 |
| to January 1, 1991, and interest on
and after January 1, 1991, | 18 |
| of 2% for each month or part of a month that
it is delinquent | 19 |
| commencing with the anniversary month or in the case of
a | 20 |
| corporation that has established an extended filing month, the | 21 |
| extended
filing month, or $1, whichever is greater. From | 22 |
| February 1, 2008 through March 15, 2008, no penalty shall be | 23 |
| imposed, or interest charged, with respect to any amount of | 24 |
| delinquent franchise taxes paid pursuant to the Franchise Tax | 25 |
| and License Fee Amnesty Act of 2007. From April 21, 2010 | 26 |
| through November 30, 2010, no penalty shall be imposed, or |
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| interest charged, with respect to any amount of delinquent | 2 |
| franchise taxes paid pursuant to the Franchise Tax and License | 3 |
| Fee Amnesty Act of 2010.
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| (g) Any corporation, domestic or foreign, failing to pay | 5 |
| the prescribed
fee for assumed corporate name renewal when due | 6 |
| and payable shall be given
notice of nonpayment by the | 7 |
| Secretary of State by regular mail; and if
the fee together | 8 |
| with a penalty fee of $5 is not paid within
90 days after the | 9 |
| notice is mailed, the right to use the assumed
name shall | 10 |
| cease. | 11 |
| (h) Any corporation which (i) puts forth any sign or
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| advertisement, assuming
any name other than that by which it is | 13 |
| incorporated or otherwise
authorized by law to act or (ii) | 14 |
| violates Section 3.25, shall be guilty of
a Class C misdemeanor | 15 |
| and
shall be deemed guilty of an additional offense for each | 16 |
| day it shall
continue to so offend. | 17 |
| (i) Each corporation, domestic or foreign, that fails or | 18 |
| refuses (1) to
file in the office of the recorder within the | 19 |
| time prescribed
by this Act any document required by this Act | 20 |
| to be so filed, or (2) to
answer truthfully and fully within | 21 |
| the time prescribed by this Act
interrogatories propounded by | 22 |
| the Secretary of State in accordance with
this Act, or (3) to | 23 |
| perform any other act required by this Act to be
performed by | 24 |
| the corporation, is guilty of a Class C misdemeanor. | 25 |
| (j) Each corporation that fails or refuses to file articles | 26 |
| of
revocation
of dissolution within the time prescribed by this |
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| Act is subject to a
penalty for each calendar month or part of | 2 |
| the month that it is delinquent
in the amount of $50. | 3 |
| (Source: P.A. 95-233, eff. 8-16-07; 95-707, eff. 1-11-08.) | 4 |
| Article 10. | 5 |
| Section 10-5. The Uncollected State Claims Act is amended | 6 |
| by adding Section 2.1 as follows: | 7 |
| (30 ILCS 205/2.1 new) | 8 |
| Sec. 2.1. Sale of debts certified as uncollectible. After | 9 |
| accounts have been certified by the Attorney General as | 10 |
| uncollectible pursuant to this Act, the State Comptroller may | 11 |
| sell the debts to one or more outside private vendors. Sales | 12 |
| shall be conducted under rules adopted by the State Comptroller | 13 |
| using a request for proposals procedure similar to that | 14 |
| procedure under the Illinois Procurement Code. The outside | 15 |
| private vendors shall remit to the State Comptroller the | 16 |
| purchase price for debts sold under this Section. The State | 17 |
| Comptroller shall deposit the money received under this Section | 18 |
| into the General Revenue Fund. This Section does not apply to | 19 |
| any tax debt owing to the Department of Revenue. | 20 |
| Section 10-10. The Illinois State Collection Act of 1986 is | 21 |
| amended by adding Section 9 as follows: |
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| (30 ILCS 210/9 new) | 2 |
| Sec. 9. Deferral and compromise of past due debt. | 3 |
| (a) In this Section, "past due debt" means any debt owed to | 4 |
| the State that has been outstanding for more than 12 months. | 5 |
| "Past due debt" does not include any debt if any of the actions | 6 |
| required under this Section would violate federal law or | 7 |
| regulation. | 8 |
| (b) State agencies may enter into a deferred payment plan | 9 |
| for the purpose of satisfying a past due debt. The deferred | 10 |
| payment plan must meet the following requirements: | 11 |
| (1) The term of the deferred payment plan may not | 12 |
| exceed 2 years. | 13 |
| (2) The first payment of the deferred payment plan must | 14 |
| be at least 10% of the total amount due. | 15 |
| (3) All subsequent monthly payments for the deferred | 16 |
| payment plan must be assessed as equal monthly principal | 17 |
| payments, together with interest. | 18 |
| (4) The deferred payment plan must include interest at | 19 |
| a rate that is the same as the interest required under the | 20 |
| State Prompt Payment Act. | 21 |
| (5) The deferred payment plan must be approved by the | 22 |
| Secretary or Director of the State agency. | 23 |
| (c) State agencies may compromise past due debts. Any | 24 |
| action taken by a State agency to compromise a past due debt | 25 |
| must meet the following requirements: | 26 |
| (1) The amount of the compromised debt shall be no less |
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| than 80% of the total of the past due debt. | 2 |
| (2) Once a past due debt has been compromised, the | 3 |
| debtor must remit to the State agency the total amount of | 4 |
| the compromised debt. However, the State agency may collect | 5 |
| the compromised debt through a payment plan not to exceed 6 | 6 |
| months. If the State agency accepts the compromised debt | 7 |
| through a payment plan, then the compromised debt shall be | 8 |
| subject to the same rate of interest as required under the | 9 |
| State Prompt Payment Act. | 10 |
| (3) Before a State agency accepts a compromised debt, | 11 |
| the amount of the compromised debt must be approved by the | 12 |
| State Comptroller. | 13 |
| (d) State agencies may sell a past due debt to one or more | 14 |
| outside private vendors. Sales shall be conducted under rules | 15 |
| adopted by the State Comptroller using a request for proposals | 16 |
| procedure similar to that procedure under the Illinois | 17 |
| Procurement Code. The outside private vendors shall remit to | 18 |
| the State Agency the purchase price for debts sold under this | 19 |
| subsection. | 20 |
| (e) The State agency shall deposit all amounts received | 21 |
| under this Section into the General Revenue Fund. | 22 |
| (f) This Section does not apply to any tax debt owing to | 23 |
| the Department of Revenue. | 24 |
| Section 10-15. The Tax Delinquency Amnesty Act is amended | 25 |
| by changing Section 10 as follows:
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| (35 ILCS 745/10)
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| Sec. 10. Amnesty program. The Department shall establish an | 3 |
| amnesty
program for all taxpayers owing any tax imposed by | 4 |
| reason of or pursuant to
authorization by any law of the State | 5 |
| of Illinois and collected by the
Department.
| 6 |
| The amnesty program shall be for a period from October 1, | 7 |
| 2003 through
November 15, 2003 and for a period beginning on | 8 |
| October 1, 2010 and ending November 15, 2010 .
| 9 |
| The amnesty program shall provide that, upon payment by a | 10 |
| taxpayer of all
taxes
due from that taxpayer to the State of | 11 |
| Illinois for any taxable period ending
(i) after June 30,
1983 | 12 |
| and prior to July 1, 2002 for the tax amnesty period occurring | 13 |
| from October 1, 2003 through
November 15, 2003, and (ii) after | 14 |
| June 30, 2002 and prior to July 1, 2009 for the tax amnesty | 15 |
| period beginning on October 1, 2010 through November 15, 2010 , | 16 |
| the
Department shall abate and not seek to collect any interest | 17 |
| or penalties that
may be
applicable and the Department shall | 18 |
| not seek civil or criminal prosecution for
any taxpayer for the | 19 |
| period of time for which amnesty has been granted to the
| 20 |
| taxpayer. Failure to pay all taxes due to the State for a | 21 |
| taxable period shall
invalidate any
amnesty granted under this | 22 |
| Act. Amnesty shall be granted only if all amnesty
conditions | 23 |
| are
satisfied by the taxpayer.
| 24 |
| Amnesty shall not be granted to taxpayers who are a party | 25 |
| to any criminal
investigation or to any civil or criminal |
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| litigation that is pending in any
circuit court or appellate | 2 |
| court or the Supreme Court of this State for
nonpayment, | 3 |
| delinquency, or fraud in relation to any State tax imposed by | 4 |
| any
law of the State of Illinois.
| 5 |
| Participation in an amnesty program shall not preclude a | 6 |
| taxpayer from claiming a refund for an overpayment of tax on an | 7 |
| issue unrelated to the issues for which the taxpayer claimed | 8 |
| amnesty or for an overpayment of tax by taxpayers estimating a | 9 |
| non-final liability for the amnesty program pursuant to Section | 10 |
| 506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)). | 11 |
| Voluntary payments made under this Act shall be made by | 12 |
| cash, check,
guaranteed remittance, or ACH debit.
| 13 |
| The Department shall adopt rules as necessary to implement | 14 |
| the provisions of
this Act.
| 15 |
| Except as otherwise provided in this Section, all money | 16 |
| collected under this
Act that would otherwise be deposited into | 17 |
| the General Revenue Fund shall be
deposited as
follows: (i) | 18 |
| one-half into the Common School Fund; (ii) one-half into the
| 19 |
| General
Revenue Fund. Two percent of all money collected under | 20 |
| this Act shall be
deposited by
the State Treasurer into the Tax | 21 |
| Compliance and Administration Fund and,
subject to
| 22 |
| appropriation, shall be used by the Department to cover costs | 23 |
| associated with
the administration of this Act.
| 24 |
| (Source: P.A. 93-26, eff. 6-20-03.)
| 25 |
| Section 10-20. The Uniform Penalty and Interest Act is |
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| amended by changing Sections 3-2, 3-3, 3-4, 3-5, 3-6, and 3-7.5 | 2 |
| as follows:
| 3 |
| (35 ILCS 735/3-2) (from Ch. 120, par. 2603-2)
| 4 |
| Sec. 3-2. Interest.
| 5 |
| (a) Interest paid by the Department to taxpayers and | 6 |
| interest
charged to taxpayers by the Department shall be paid | 7 |
| at the annual
rate determined by the Department. For periods | 8 |
| prior to January 1, 2004, that
rate shall be the underpayment
| 9 |
| rate established under Section 6621 of the Internal Revenue | 10 |
| Code. For periods
after December 31, 2003, that rate shall be:
| 11 |
| (1) for the one-year period beginning with the date of | 12 |
| underpayment or
overpayment, the short-term federal rate | 13 |
| established under Section 6621 of the
Internal Revenue | 14 |
| Code.
| 15 |
| (2) for any period beginning the day after the one-year | 16 |
| period described
in paragraph (1) of this subsection (a), | 17 |
| the underpayment rate established
under Section 6621 of the | 18 |
| Internal Revenue Code.
| 19 |
| (b) The interest rate shall be adjusted on a semiannual | 20 |
| basis, on
January 1 and July 1, based upon the underpayment | 21 |
| rate or short-term federal
rate going into
effect on that | 22 |
| January 1 or July 1 under Section 6621 of the Internal
Revenue | 23 |
| Code.
| 24 |
| (c) This subsection (c) is applicable to returns due on and | 25 |
| before
December 31, 2000.
Interest shall be simple interest |
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| calculated on a daily basis.
Interest shall accrue upon tax and | 2 |
| penalty due. If notice and demand
is made for the payment of | 3 |
| any amount of tax due and if the amount due is
paid within 30 | 4 |
| days after the date of such notice and demand, interest
under | 5 |
| this Section on the amount so paid shall not be imposed for the
| 6 |
| period after the date of the notice and demand.
| 7 |
| (c-5) This subsection (c-5) is applicable to returns due on | 8 |
| and after
January 1, 2001.
Interest shall be simple interest | 9 |
| calculated on a daily basis. Interest shall
accrue upon tax | 10 |
| due. If notice and demand is made for the payment of any
amount | 11 |
| of tax due and if the amount due is paid within 30 days after | 12 |
| the date
of the notice and demand, interest under this Section | 13 |
| on the amount so paid
shall not be imposed for the period after | 14 |
| the date of the notice and demand.
| 15 |
| (d) No interest shall be paid upon any overpayment of tax | 16 |
| if the
overpayment is refunded or a credit approved within 90 | 17 |
| days after the last
date prescribed for filing the original | 18 |
| return,
or within 90 days of the receipt of the processable | 19 |
| return, or within 90
days after the date of overpayment, | 20 |
| whichever date is latest, as determined
without regard to | 21 |
| processing time by the Comptroller or without regard to
the | 22 |
| date on which the credit is applied to the taxpayer's account.
| 23 |
| In order for an original return to be processable for purposes | 24 |
| of this
Section, it must be in the form prescribed or approved | 25 |
| by
the Department, signed by the person authorized by law, and | 26 |
| contain all
information, schedules, and support documents |
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| necessary to determine the
tax due and to make allocations of | 2 |
| tax as prescribed by law.
For the purposes of computing | 3 |
| interest, a return shall be deemed to be
processable unless the | 4 |
| Department notifies the taxpayer that the return is
not | 5 |
| processable within 90 days after the receipt of the return; | 6 |
| however,
interest shall not accumulate for the period following | 7 |
| this date of notice.
Interest on amounts refunded or credited | 8 |
| pursuant to the filing of an
amended return or claim for refund | 9 |
| shall be determined from the due date of
the original return or | 10 |
| the date of overpayment, whichever is later, to the
date of | 11 |
| payment by the Department without regard to processing time by | 12 |
| the
Comptroller or the date of credit by the Department or | 13 |
| without regard to
the date on which the credit is applied to | 14 |
| the taxpayer's account. If a
claim for refund relates to an | 15 |
| overpayment attributable to a net loss
carryback as provided by | 16 |
| Section 207 of the Illinois Income Tax Act, the
date of | 17 |
| overpayment shall be the last day of the taxable year in which | 18 |
| the
loss was incurred.
| 19 |
| (e) Interest on erroneous refunds. Any portion of the tax | 20 |
| imposed by an
Act to which this Act is applicable or any | 21 |
| interest or penalty which has
been erroneously refunded and | 22 |
| which is recoverable by the Department shall
bear interest from | 23 |
| the date of payment of the refund. However, no interest
will be | 24 |
| charged if the erroneous refund is for an amount less than $500 | 25 |
| and
is due to a mistake of the Department.
| 26 |
| (f) If a taxpayer has a tax liability for the taxable |
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| period ending after June 30,
1983 and prior to July 1, 2002 | 2 |
| that is eligible for amnesty under
the Tax Delinquency Amnesty | 3 |
| Act and the taxpayer fails to satisfy the tax
liability during | 4 |
| the amnesty period provided for in that Act for that taxable | 5 |
| period , then the interest
charged by the Department under this | 6 |
| Section shall be
imposed at a rate that is 200% of the rate | 7 |
| that would otherwise be imposed
under this Section.
| 8 |
| (g) If a taxpayer has a tax liability for the taxable | 9 |
| period ending after June 30, 2002 and prior to July 1, 2009 | 10 |
| that is eligible for amnesty under the
Tax Delinquency Amnesty | 11 |
| Act, except for any tax liability reported pursuant to Section | 12 |
| 506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)) that | 13 |
| is not final, and the taxpayer fails to satisfy the tax | 14 |
| liability
during the amnesty period provided for in that Act | 15 |
| for that taxable period, then the interest charged by
the | 16 |
| Department under this Section shall be imposed in an amount | 17 |
| that is 200% of
the amount that would otherwise be imposed | 18 |
| under this Section. | 19 |
| (h) No interest shall be paid to a taxpayer on any refund | 20 |
| allowed under Section 15 of the Tax Delinquency Amnesty Act. | 21 |
| (Source: P.A. 95-331, eff. 8-21-07.)
| 22 |
| (35 ILCS 735/3-3) (from Ch. 120, par. 2603-3)
| 23 |
| Sec. 3-3. Penalty for failure to file or pay.
| 24 |
| (a) This subsection (a) is applicable before January 1, | 25 |
| 1996. A penalty
of 5% of the tax required to be shown due on a |
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| return shall be
imposed for failure to file the tax return on | 2 |
| or before the due date prescribed
for filing determined with | 3 |
| regard for any extension of time for filing
(penalty
for late | 4 |
| filing or nonfiling). If any unprocessable return is corrected | 5 |
| and
filed within 21 days after notice by the Department, the | 6 |
| late filing or
nonfiling penalty shall not apply. If a penalty | 7 |
| for late filing or nonfiling
is imposed in addition to a | 8 |
| penalty for late payment, the total penalty due
shall be the | 9 |
| sum of the late filing penalty and the applicable late payment
| 10 |
| penalty.
Beginning on the effective date of this amendatory Act | 11 |
| of 1995, in the case
of any type of tax return required to be | 12 |
| filed more frequently
than annually, when the failure to file | 13 |
| the tax return on or before the
date prescribed for filing | 14 |
| (including any extensions) is shown to be
nonfraudulent and has | 15 |
| not occurred in the 2 years immediately preceding the
failure | 16 |
| to file on the prescribed due date, the penalty imposed by | 17 |
| Section
3-3(a) shall be abated.
| 18 |
| (a-5) This subsection (a-5) is applicable to returns due on | 19 |
| and after
January 1, 1996 and on or before December 31, 2000.
A | 20 |
| penalty equal to 2% of
the tax required to be shown due on a | 21 |
| return, up to a maximum amount of $250,
determined without | 22 |
| regard to any part of the tax that is paid on time or by any
| 23 |
| credit that was properly allowable on the date the return was | 24 |
| required to be
filed, shall be
imposed for failure to file the | 25 |
| tax return on or before the due date prescribed
for filing | 26 |
| determined with regard for any extension of time for filing.
|
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| However, if any return is not filed within 30 days after notice | 2 |
| of nonfiling
mailed by the Department to the last known address | 3 |
| of the taxpayer contained in
Department records, an additional | 4 |
| penalty amount shall be imposed equal to the
greater of $250 or | 5 |
| 2% of the tax shown on the return. However, the additional
| 6 |
| penalty amount may not exceed $5,000 and is determined without | 7 |
| regard to any
part of the tax that is paid on time or by any | 8 |
| credit that was properly
allowable on the date the return was | 9 |
| required to be filed (penalty
for late filing or nonfiling). If | 10 |
| any unprocessable return is corrected and
filed within 30 days | 11 |
| after notice by the Department, the late filing or
nonfiling | 12 |
| penalty shall not apply. If a penalty for late filing or | 13 |
| nonfiling
is imposed in addition to a penalty for late payment, | 14 |
| the total penalty due
shall be the sum of the late filing | 15 |
| penalty and the applicable late payment
penalty.
In the case of | 16 |
| any type of tax return required to be filed more frequently
| 17 |
| than annually, when the failure to file the tax return on or | 18 |
| before the
date prescribed for filing (including any | 19 |
| extensions) is shown to be
nonfraudulent and has not occurred | 20 |
| in the 2 years immediately preceding the
failure to file on the | 21 |
| prescribed due date, the penalty imposed by Section
3-3(a-5) | 22 |
| shall be abated.
| 23 |
| (a-10) This subsection (a-10) is applicable to returns due | 24 |
| on and after
January 1, 2001.
A penalty equal to 2% of
the tax | 25 |
| required to be shown due on a return, up to a maximum amount of | 26 |
| $250,
reduced by any tax that is
paid on time or by any
credit |
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| that was properly allowable on the date the return was required | 2 |
| to be
filed, shall be
imposed for failure to file the tax | 3 |
| return on or before the due date prescribed
for filing | 4 |
| determined with regard for any extension of time for filing.
| 5 |
| However, if any return is not filed within 30 days after notice | 6 |
| of nonfiling
mailed by the Department to the last known address | 7 |
| of the taxpayer contained in
Department records, an additional | 8 |
| penalty amount shall be imposed equal to the
greater of $250 or | 9 |
| 2% of the tax shown on the return. However, the additional
| 10 |
| penalty amount may not exceed $5,000 and is determined without | 11 |
| regard to any
part of the tax that is paid on time or by any | 12 |
| credit that was properly
allowable on the date the return was | 13 |
| required to be filed (penalty
for late filing or nonfiling). If | 14 |
| any unprocessable return is corrected and
filed within 30 days | 15 |
| after notice by the Department, the late filing or
nonfiling | 16 |
| penalty shall not apply. If a penalty for late filing or | 17 |
| nonfiling
is imposed in addition to a penalty for late payment, | 18 |
| the total penalty due
shall be the sum of the late filing | 19 |
| penalty and the applicable late payment
penalty.
In the case of | 20 |
| any type of tax return required to be filed more frequently
| 21 |
| than annually, when the failure to file the tax return on or | 22 |
| before the
date prescribed for filing (including any | 23 |
| extensions) is shown to be
nonfraudulent and has not occurred | 24 |
| in the 2 years immediately preceding the
failure to file on the | 25 |
| prescribed due date, the penalty imposed by Section
3-3(a-10) | 26 |
| shall be abated.
|
|
|
|
09600SB0377ham005 |
- 25 - |
LRB096 06409 DRJ 41570 a |
|
| 1 |
| (b) This subsection is applicable before January 1, 1998.
A | 2 |
| penalty of 15% of the tax shown on the return or the tax | 3 |
| required to
be shown due on the return shall be imposed for | 4 |
| failure to pay:
| 5 |
| (1) the tax shown due on the return on or before the | 6 |
| due date prescribed
for payment of that tax, an amount of | 7 |
| underpayment of estimated tax, or an
amount that is | 8 |
| reported in an amended return other than an amended return
| 9 |
| timely filed as required by subsection (b) of Section 506 | 10 |
| of the Illinois
Income Tax Act (penalty for late payment or | 11 |
| nonpayment of admitted liability);
or
| 12 |
| (2) the full amount of any tax required to be shown due | 13 |
| on a
return and which is not shown (penalty for late | 14 |
| payment or nonpayment of
additional liability), within 30 | 15 |
| days after a notice of arithmetic error,
notice and demand, | 16 |
| or a final assessment is issued by the Department.
In the | 17 |
| case of a final assessment arising following a protest and | 18 |
| hearing,
the 30-day period shall not begin until all | 19 |
| proceedings in court for review of
the final assessment | 20 |
| have terminated or the period for obtaining a review has
| 21 |
| expired without proceedings for a review having been | 22 |
| instituted. In the case
of a notice of tax liability that | 23 |
| becomes a final assessment without a protest
and hearing, | 24 |
| the penalty provided in this paragraph (2) shall be imposed | 25 |
| at the
expiration of the period provided for the filing of | 26 |
| a protest.
|
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| (b-5) This subsection is applicable to returns due on and | 2 |
| after January
1, 1998 and on or before December 31, 2000.
A | 3 |
| penalty of 20% of the tax shown on the return or the tax | 4 |
| required to be
shown due on the return shall be imposed for | 5 |
| failure to
pay:
| 6 |
| (1) the tax shown due on the return on or before the | 7 |
| due date prescribed
for payment of that tax, an amount of | 8 |
| underpayment of estimated tax, or an
amount that is | 9 |
| reported in an amended return other than an amended return
| 10 |
| timely filed as required by subsection (b) of Section 506 | 11 |
| of the Illinois
Income Tax Act (penalty for late payment or | 12 |
| nonpayment of admitted liability);
or
| 13 |
| (2) the full amount of any tax required to be shown due | 14 |
| on a
return and which is not shown (penalty for late | 15 |
| payment or nonpayment of
additional liability), within 30 | 16 |
| days after a notice of arithmetic error,
notice and demand, | 17 |
| or a final assessment is issued by the Department.
In the | 18 |
| case of a final assessment arising following a protest and | 19 |
| hearing,
the 30-day period shall not begin until all | 20 |
| proceedings in court for review of
the final assessment | 21 |
| have terminated or the period for obtaining a review has
| 22 |
| expired without proceedings for a review having been | 23 |
| instituted. In the case
of a notice of tax liability that | 24 |
| becomes a final assessment without a protest
and hearing, | 25 |
| the penalty provided in this paragraph (2) shall be imposed | 26 |
| at the
expiration of the period provided for the filing of |
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| a protest.
| 2 |
| (b-10) This subsection (b-10) is applicable to returns due | 3 |
| on and after
January 1, 2001 and on or before December 31, | 4 |
| 2003. A penalty shall be
imposed for failure to pay:
| 5 |
| (1) the tax shown due on a return on or before the due | 6 |
| date prescribed for
payment of that tax, an amount of | 7 |
| underpayment of estimated tax, or an amount
that is | 8 |
| reported in an amended return other than an amended return | 9 |
| timely filed
as required by subsection (b) of Section 506 | 10 |
| of the Illinois Income Tax Act
(penalty for late payment or | 11 |
| nonpayment of admitted liability). The amount of
penalty | 12 |
| imposed under this subsection (b-10)(1) shall be 2% of any | 13 |
| amount that
is paid no later than 30 days after the due | 14 |
| date, 5% of any amount that is
paid later than 30 days | 15 |
| after the due date and not later than 90 days after
the due | 16 |
| date, 10% of any amount that is paid later than 90 days | 17 |
| after the due
date and not later than 180 days after the | 18 |
| due date, and 15% of any amount that
is paid later than 180 | 19 |
| days after the
due date.
If notice and demand is made for | 20 |
| the payment of any amount of tax due and if
the amount due | 21 |
| is paid within 30 days after the date of the notice and | 22 |
| demand,
then the penalty for late payment or nonpayment of | 23 |
| admitted liability under
this subsection (b-10)(1) on the | 24 |
| amount so paid shall not accrue for the period
after the | 25 |
| date of the notice and demand.
| 26 |
| (2) the full amount of any tax required to be shown due |
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| on a return and
that is not shown (penalty for late payment | 2 |
| or nonpayment of additional
liability), within 30 days | 3 |
| after a notice of arithmetic error, notice and
demand, or a | 4 |
| final assessment is issued by the Department. In the case | 5 |
| of a
final assessment arising following a protest and | 6 |
| hearing, the 30-day period
shall not begin until all | 7 |
| proceedings in court for review of the final
assessment | 8 |
| have terminated or the period for obtaining a review has | 9 |
| expired
without proceedings for a review having been | 10 |
| instituted. The amount of penalty
imposed under this | 11 |
| subsection (b-10)(2) shall be 20% of any amount that is not
| 12 |
| paid within the 30-day period. In the case of a notice of | 13 |
| tax liability that
becomes a final assessment without a | 14 |
| protest and hearing, the penalty provided
in this | 15 |
| subsection (b-10)(2) shall be imposed at the expiration of | 16 |
| the period
provided for the filing of a protest.
| 17 |
| (b-15) This subsection (b-15) is applicable to returns due | 18 |
| on and after
January 1, 2004 and on or before December 31, | 19 |
| 2004. A penalty shall be imposed for failure to pay the tax | 20 |
| shown due or
required to be shown due on a return on or before | 21 |
| the due date prescribed for
payment of that tax, an amount of | 22 |
| underpayment of estimated tax, or an amount
that is reported in | 23 |
| an amended return other than an amended return timely filed
as | 24 |
| required by subsection (b) of Section 506 of the Illinois | 25 |
| Income Tax Act
(penalty for late payment or nonpayment of | 26 |
| admitted liability). The amount of
penalty imposed under this |
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| subsection (b-15)(1) shall be 2% of any amount that
is paid no | 2 |
| later than 30 days after the due date, 10% of any amount that | 3 |
| is
paid later than 30 days after the due date and not later | 4 |
| than 90 days after the
due date, 15% of any amount that is paid | 5 |
| later than 90 days after the due date
and not later than 180 | 6 |
| days after the due date, and 20% of any amount that is
paid | 7 |
| later than 180 days after the due date. If notice and demand is | 8 |
| made for
the payment of any amount of tax due and if the amount | 9 |
| due is paid within 30
days after the date of this notice and | 10 |
| demand, then the penalty for late
payment or nonpayment of | 11 |
| admitted liability under this subsection (b-15)(1) on
the | 12 |
| amount so paid shall not accrue for the period after the date | 13 |
| of the notice
and demand.
| 14 |
| (b-20) This subsection (b-20) is applicable to returns due | 15 |
| on and after January 1, 2005. | 16 |
| (1) A penalty shall be imposed for failure to pay, | 17 |
| prior to the due date for payment, any amount of tax the | 18 |
| payment of which is required to be made prior to the filing | 19 |
| of a return or without a return (penalty for late payment | 20 |
| or nonpayment of estimated or accelerated tax). The amount | 21 |
| of penalty imposed under this paragraph (1) shall be 2% of | 22 |
| any amount that is paid no later than 30 days after the due | 23 |
| date and 10% of any amount that is paid later than 30 days | 24 |
| after the due date. | 25 |
| (2) A penalty shall be imposed for failure to pay the | 26 |
| tax shown due or required to be shown due on a return on or |
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| before the due date prescribed for payment of that tax or | 2 |
| an amount that is reported in an amended return other than | 3 |
| an amended return timely filed as required by subsection | 4 |
| (b) of Section 506 of the Illinois Income Tax Act (penalty | 5 |
| for late payment or nonpayment of tax). The amount of | 6 |
| penalty imposed under this paragraph (2) shall be 2% of any | 7 |
| amount that is paid no later than 30 days after the due | 8 |
| date, 10% of any amount that is paid later than 30 days | 9 |
| after the due date and prior to the date the Department has | 10 |
| initiated an audit or investigation of the taxpayer, and | 11 |
| 20% of any amount that is paid after the date the | 12 |
| Department has initiated an audit or investigation of the | 13 |
| taxpayer; provided that the penalty shall be reduced to 15% | 14 |
| if the entire amount due is paid not later than 30 days | 15 |
| after the Department has provided the taxpayer with an | 16 |
| amended return (following completion of an occupation, | 17 |
| use, or excise tax audit) or a form for waiver of | 18 |
| restrictions on assessment (following completion of an | 19 |
| income tax audit); provided further that the reduction to | 20 |
| 15% shall be rescinded if the taxpayer makes any claim for | 21 |
| refund or credit of the tax, penalties, or interest | 22 |
| determined to be due upon audit, except in the case of a | 23 |
| claim filed pursuant to subsection (b) of Section 506 of | 24 |
| the Illinois Income Tax Act or to claim a carryover of a | 25 |
| loss or credit, the availability of which was not | 26 |
| determined in the audit. For purposes of this paragraph |
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| (2), any overpayment reported on an original return that | 2 |
| has been allowed as a refund or credit to the taxpayer | 3 |
| shall be deemed to have not been paid on or before the due | 4 |
| date for payment and any amount paid under protest pursuant | 5 |
| to the provisions of the State Officers and Employees Money | 6 |
| Disposition Act shall be deemed to have been paid after the | 7 |
| Department has initiated an audit and more than 30 days | 8 |
| after the Department has provided the taxpayer with an | 9 |
| amended return (following completion of an occupation, | 10 |
| use, or excise tax audit) or a form for waiver of | 11 |
| restrictions on assessment (following completion of an | 12 |
| income tax audit). | 13 |
| (3) The penalty imposed under this subsection (b-20) | 14 |
| shall be deemed assessed at the time the tax upon which the | 15 |
| penalty is computed is assessed, except that, if the | 16 |
| reduction of the penalty imposed under paragraph (2) of | 17 |
| this subsection (b-20) to 15% is rescinded because a claim | 18 |
| for refund or credit has been filed, the increase in | 19 |
| penalty shall be deemed assessed at the time the claim for | 20 |
| refund or credit is filed.
| 21 |
| (c) For purposes of the late payment penalties, the basis | 22 |
| of the penalty
shall be the tax shown or required to be shown | 23 |
| on a return, whichever is
applicable, reduced by any part of | 24 |
| the tax which is paid on time and by any
credit which was | 25 |
| properly allowable on the date the return was required to
be | 26 |
| filed.
|
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| (d) A penalty shall be applied to the tax required to be | 2 |
| shown even if
that amount is less than the tax shown on the | 3 |
| return.
| 4 |
| (e) This subsection (e) is applicable to returns due before | 5 |
| January 1,
2001.
If both a subsection (b)(1) or (b-5)(1) | 6 |
| penalty and a subsection (b)(2)
or (b-5)(2) penalty are | 7 |
| assessed against the same return, the subsection
(b)(2) or | 8 |
| (b-5)(2) penalty shall
be assessed against only the additional | 9 |
| tax found to be due.
| 10 |
| (e-5) This subsection (e-5) is applicable to returns due on | 11 |
| and after
January 1, 2001.
If both a subsection (b-10)(1) | 12 |
| penalty and a subsection
(b-10)(2) penalty are assessed against | 13 |
| the same return,
the subsection (b-10)(2) penalty shall be | 14 |
| assessed against
only the additional tax found to be due.
| 15 |
| (f) If the taxpayer has failed to file the return, the | 16 |
| Department shall
determine the correct tax according to its | 17 |
| best judgment and information,
which amount shall be prima | 18 |
| facie evidence of the correctness of the tax due.
| 19 |
| (g) The time within which to file a return or pay an amount | 20 |
| of tax due
without imposition of a penalty does not extend the | 21 |
| time within which to
file a protest to a notice of tax | 22 |
| liability or a notice of deficiency.
| 23 |
| (h) No return shall be determined to be unprocessable | 24 |
| because of the
omission of any information requested on the | 25 |
| return pursuant to Section
2505-575
of the Department of | 26 |
| Revenue Law (20 ILCS 2505/2505-575).
|
|
|
|
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|
| 1 |
| (i) If a taxpayer has a tax liability for the taxable | 2 |
| period ending after June 30,
1983 and prior to July 1, 2002 | 3 |
| that is eligible for amnesty under the
Tax Delinquency Amnesty | 4 |
| Act and the taxpayer fails to satisfy the tax liability
during | 5 |
| the amnesty period provided for in that Act for that taxable | 6 |
| period , then the penalty imposed by
the Department under this | 7 |
| Section shall be imposed in an amount that is 200% of
the | 8 |
| amount that would otherwise be imposed under this Section.
| 9 |
| (j) If a taxpayer has a tax liability for the taxable | 10 |
| period ending after June 30, 2002 and prior to July 1, 2009 | 11 |
| that is eligible for amnesty under the
Tax Delinquency Amnesty | 12 |
| Act, except for any tax liability reported pursuant to Section | 13 |
| 506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)) that | 14 |
| is not final, and the taxpayer fails to satisfy the tax | 15 |
| liability
during the amnesty period provided for in that Act | 16 |
| for that taxable period, then the penalty imposed by
the | 17 |
| Department under this Section shall be imposed in an amount | 18 |
| that is 200% of
the amount that would otherwise be imposed | 19 |
| under this Section. | 20 |
| (Source: P.A. 92-742, eff. 7-25-02; 93-26, eff. 6-20-03; 93-32, | 21 |
| eff. 6-20-03; 93-1068, eff. 1-15-05.)
| 22 |
| (35 ILCS 735/3-4) (from Ch. 120, par. 2603-4)
| 23 |
| Sec. 3-4. Penalty for failure to file correct information | 24 |
| returns.
| 25 |
| (a) Failure to file correct information returns - |
|
|
|
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|
| 1 |
| imposition of penalty.
| 2 |
| (1) In general. Unless otherwise provided in a tax Act, | 3 |
| in the case of a
failure described in paragraph (2) of this | 4 |
| subsection (a) by any person
with respect to an information | 5 |
| return, that person shall pay a penalty of
$5 for each | 6 |
| return or statement with respect to which the failure | 7 |
| occurs,
but the total amount imposed on that person for all | 8 |
| such failures during
any calendar year shall not exceed | 9 |
| $25,000.
| 10 |
| (2) Failures subject to penalty. The following | 11 |
| failures are subject to
the penalty imposed in paragraph | 12 |
| (1) of this subsection (a):
| 13 |
| (A) any failure to file an information return with | 14 |
| the Department on or
before the required filing date, | 15 |
| or
| 16 |
| (B) any failure to include all of the information | 17 |
| required to be shown
on the return or the inclusion of | 18 |
| incorrect information.
| 19 |
| (b) Reduction where correction in specified period.
| 20 |
| (1) Correction within 60 days. If any failure described | 21 |
| in subsection
(a) (2) is corrected within 60 days after the | 22 |
| required filing date:
| 23 |
| (A) the penalty imposed by subsection (a) shall be | 24 |
| reduced by 50%; and
| 25 |
| (B) the total amount imposed on the person for all | 26 |
| such failures during
any calendar year which are so |
|
|
|
09600SB0377ham005 |
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|
| 1 |
| corrected shall not exceed 50% of the
maximum | 2 |
| prescribed in subsection (a) (1).
| 3 |
| (c) Information return defined. An information return is | 4 |
| any tax return
required by a tax Act to be filed with the | 5 |
| Department that does not, by law,
require the payment of a tax | 6 |
| liability.
| 7 |
| (d) If a taxpayer has a tax liability for the taxable | 8 |
| period ending after June 30,
1983 and prior to July 1, 2002 | 9 |
| that is eligible for amnesty under
the Tax Delinquency Amnesty | 10 |
| Act and the taxpayer fails to satisfy the tax
liability during | 11 |
| the amnesty period provided for in that Act for that taxable | 12 |
| period , then the penalty
imposed by the Department under this | 13 |
| Section shall be
imposed in an amount that is 200% of the | 14 |
| amount that would otherwise be imposed
under this Section.
| 15 |
| (e) If a taxpayer has a tax liability for the taxable | 16 |
| period ending after June 30, 2002 and prior to July 1, 2009 | 17 |
| that is eligible for amnesty under the
Tax Delinquency Amnesty | 18 |
| Act, except for any tax liability reported pursuant to Section | 19 |
| 506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)) that | 20 |
| is not final, and the taxpayer fails to satisfy the tax | 21 |
| liability
during the amnesty period provided for in that Act | 22 |
| for that taxable period, then the penalty imposed by
the | 23 |
| Department under this Section shall be imposed in an amount | 24 |
| that is 200% of
the amount that would otherwise be imposed | 25 |
| under this Section. | 26 |
| (Source: P.A. 93-26, eff. 6-20-03.)
|
|
|
|
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|
| 1 |
| (35 ILCS 735/3-5) (from Ch. 120, par. 2603-5)
| 2 |
| Sec. 3-5. Penalty for negligence.
| 3 |
| (a) If any return or amended return is prepared | 4 |
| negligently, but without
intent to defraud, and filed, in | 5 |
| addition to any penalty imposed under
Section 3-3 of this Act, | 6 |
| a penalty shall be imposed in an amount equal to
20% of any | 7 |
| resulting deficiency.
| 8 |
| (b) Negligence includes any failure to make a reasonable | 9 |
| attempt to
comply with the provisions of any tax Act and | 10 |
| includes careless, reckless,
or intentional disregard of the | 11 |
| law or regulations.
| 12 |
| (c) No penalty shall be imposed under this Section
if it is | 13 |
| shown that failure to comply with the tax Act is due to | 14 |
| reasonable
cause. A taxpayer is not negligent if the taxpayer | 15 |
| shows substantial authority
to support the return as filed.
| 16 |
| (d) If a taxpayer has a tax liability for the taxable | 17 |
| period ending after June 30,
1983 and prior to July 1, 2002 | 18 |
| that is eligible for amnesty under
the Tax Delinquency Amnesty | 19 |
| Act and the taxpayer fails to satisfy the tax
liability during | 20 |
| the amnesty period provided for in that Act for that taxable | 21 |
| period , then the penalty
imposed by the Department shall be | 22 |
| imposed in an amount
that is 200% of the amount that would | 23 |
| otherwise be imposed in accordance with
this Section.
| 24 |
| (e) If a taxpayer has a tax liability for the taxable | 25 |
| period ending after June 30, 2002 and prior to July 1, 2009 |
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| that is eligible for amnesty under the
Tax Delinquency Amnesty | 2 |
| Act, except for any tax liability reported pursuant to Section | 3 |
| 506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)) that | 4 |
| is not final, and the taxpayer fails to satisfy the tax | 5 |
| liability
during the amnesty period provided for in that Act | 6 |
| for that taxable period, then the penalty imposed by
the | 7 |
| Department under this Section shall be imposed in an amount | 8 |
| that is 200% of
the amount that would otherwise be imposed | 9 |
| under this Section. | 10 |
| (Source: P.A. 93-26, eff. 6-20-03.)
| 11 |
| (35 ILCS 735/3-6) (from Ch. 120, par. 2603-6)
| 12 |
| Sec. 3-6. Penalty for fraud.
| 13 |
| (a) If any return or amended return is filed with intent to | 14 |
| defraud, in
addition to any penalty imposed under Section 3-3 | 15 |
| of this Act, a penalty
shall be imposed in an amount equal to | 16 |
| 50% of any resulting deficiency.
| 17 |
| (b) If any claim is filed with intent to defraud, a penalty | 18 |
| shall be
imposed in an amount equal to 50% of the amount | 19 |
| fraudulently claimed for
credit or refund.
| 20 |
| (c) If a taxpayer has a tax liability for the taxable | 21 |
| period ending after June 30,
1983 and prior to July 1, 2002 | 22 |
| that is eligible for amnesty under
the Tax Delinquency Amnesty | 23 |
| Act and the taxpayer fails to satisfy the tax
liability during | 24 |
| the amnesty period provided for in that Act for that taxable | 25 |
| period , then the penalty
imposed by the Department under this |
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| Section shall be imposed in an amount that
is 200% of the | 2 |
| amount that would otherwise be imposed under this Section.
| 3 |
| (d) If a taxpayer has a tax liability for the taxable | 4 |
| period ending after June 30, 2002 and prior to July 1, 2009 | 5 |
| that is eligible for amnesty under the
Tax Delinquency Amnesty | 6 |
| Act, except for any tax liability reported pursuant to Section | 7 |
| 506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)) that | 8 |
| is not final, and the taxpayer fails to satisfy the tax | 9 |
| liability
during the amnesty period provided for in that Act | 10 |
| for that taxable period, then the penalty imposed by
the | 11 |
| Department under this Section shall be imposed in an amount | 12 |
| that is 200% of
the amount that would otherwise be imposed | 13 |
| under this Section. | 14 |
| (Source: P.A. 93-26, eff. 6-20-03.)
| 15 |
| (35 ILCS 735/3-7.5)
| 16 |
| Sec. 3-7.5. Bad check penalty.
| 17 |
| (a) In addition to any other penalty provided
in this Act, | 18 |
| a penalty of $25 shall be imposed on any person who issues a | 19 |
| check
or other draft to the Department that is not honored upon | 20 |
| presentment. The
penalty imposed under this Section shall be | 21 |
| deemed assessed at the time of
presentment of the check or | 22 |
| other draft and shall be treated for all purposes,
including | 23 |
| collection and allocation, as part of the tax or other | 24 |
| liability for
which the check or other draft represented | 25 |
| payment.
|
|
|
|
09600SB0377ham005 |
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LRB096 06409 DRJ 41570 a |
|
| 1 |
| (b) If a taxpayer has a tax liability for the taxable | 2 |
| period ending after June 30,
1983 and prior to July 1, 2002 | 3 |
| that is eligible for amnesty under
the Tax Delinquency Amnesty | 4 |
| Act and the taxpayer fails to satisfy the tax
liability during | 5 |
| the amnesty period provided for in that Act for that taxable | 6 |
| period , then the penalty
imposed by the Department under this | 7 |
| Section shall be imposed in an amount that
is 200% of the | 8 |
| amount that would otherwise be imposed under this Section.
| 9 |
| (c) If a taxpayer has a tax liability for the taxable | 10 |
| period ending after June 30, 2002 and prior to July 1, 2009 | 11 |
| that is eligible for amnesty under the
Tax Delinquency Amnesty | 12 |
| Act, except for any tax liability reported pursuant to Section | 13 |
| 506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)) that | 14 |
| is not final, and the taxpayer fails to satisfy the tax | 15 |
| liability
during the amnesty period provided for in that Act | 16 |
| for that taxable period, then the penalty imposed by
the | 17 |
| Department under this Section shall be imposed in an amount | 18 |
| that is 200% of
the amount that would otherwise be imposed | 19 |
| under this Section. | 20 |
| (Source: P.A. 93-26, eff. 6-20-03.)
| 21 |
| Section 99. Effective date. This Act takes effect upon | 22 |
| becoming law.".
|
|