Illinois General Assembly - Full Text of Public Act 098-0446
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Public Act 098-0446


 

Public Act 0446 98TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 098-0446
 
HB2752 EnrolledLRB098 10671 HLH 40974 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Income Tax Act is amended by
changing Section 1101 as follows:
 
    (35 ILCS 5/1101)  (from Ch. 120, par. 11-1101)
    Sec. 1101. Lien for Tax.
    (a) If any person liable to pay any tax neglects or refuses
to pay the same after demand, the amount (including any
interest, additional amount, addition to tax, or assessable
penalty, together with any costs that may accrue in addition
thereto) shall be a lien in favor of the State of Illinois upon
all property and rights to property, whether real or personal,
belonging to such person.
    (b) Unless another date is specifically fixed by law, the
lien imposed by subsection (a) of this Section shall arise at
the time the assessment is made and shall continue until the
liability for the amount so assessed (or a judgment against the
taxpayer arising out of such liability) is satisfied or becomes
unenforceable by reason of lapse of time.
    (c) Deficiency procedure. If the lien arises from an
assessment pursuant to a notice of deficiency, such lien shall
not attach and the notice referred to in this section shall not
be filed until all proceedings in court for review of such
assessment have terminated or the time for the taking thereof
has expired without such proceedings being instituted.
    (d) Notice of lien. The lien created by assessment shall
terminate unless a notice of lien is filed, as provided in
section 1103 hereof, within 3 years from the date all
proceedings in court for the review of such assessment have
terminated or the time for the taking thereof has expired
without such proceedings being instituted. Where the lien
results from the filing of a return without payment of the tax
or penalty shown therein to be due, the lien shall terminate
unless a notice of lien is filed within 3 years from the date
such return was filed with the Department. For the purposes of
this subsection (d), a tax return filed before the last day
prescribed by law, including any extension thereof, shall be
deemed to have been filed on such last day. The time limitation
period on the Department's right to file a notice of lien shall
not run (1) during any period of time in which the order of any
court has the effect of enjoining or restraining the Department
from filing such notice of lien, or (2) during the term of a
repayment plan that taxpayer has entered into with the
Department, as long as taxpayer remains in compliance with the
terms of the repayment plan.
(Source: P.A. 97-507, eff. 8-23-11.)
 
    Section 10. The Retailers' Occupation Tax Act is amended by
changing Section 5a as follows:
 
    (35 ILCS 120/5a)  (from Ch. 120, par. 444a)
    Sec. 5a. The Department shall have a lien for the tax
herein imposed or any portion thereof, or for any penalty
provided for in this Act, or for any amount of interest which
may be due as provided for in Section 5 of this Act, upon all
the real and personal property of any person to whom a final
assessment or revised final assessment has been issued as
provided in this Act, or whenever a return is filed without
payment of the tax or penalty shown therein to be due,
including all such property of such persons acquired after
receipt of such assessment or filing of such return. The
taxpayer is liable for the filing fee incurred by the
Department for filing the lien and the filing fee incurred by
the Department to file the release of that lien. The filing
fees shall be paid to the Department in addition to payment of
the tax, penalty, and interest included in the amount of the
lien.
    However, where the lien arises because of the issuance of a
final assessment or revised final assessment by the Department,
such lien shall not attach and the notice hereinafter referred
to in this Section shall not be filed until all proceedings in
court for review of such final assessment or revised final
assessment have terminated or the time for the taking thereof
has expired without such proceedings being instituted.
    Upon the granting of a rehearing or departmental review
pursuant to Section 4 or Section 5 of this Act after a lien has
attached, such lien shall remain in full force except to the
extent to which the final assessment may be reduced by a
revised final assessment following such rehearing or review.
    The lien created by the issuance of a final assessment
shall terminate unless a notice of lien is filed, as provided
in Section 5b hereof, within 3 years from the date all
proceedings in court for the review of such final assessment
have terminated or the time for the taking thereof has expired
without such proceedings being instituted, or (in the case of a
revised final assessment issued pursuant to a rehearing or
departmental review) within 3 years from the date all
proceedings in court for the review of such revised final
assessment have terminated or the time for the taking thereof
has expired without such proceedings being instituted; and
where the lien results from the filing of a return without
payment of the tax or penalty shown therein to be due, the lien
shall terminate unless a notice of lien is filed, as provided
in Section 5b hereof, within 3 years from the date when such
return is filed with the Department: Provided that the time
limitation period on the Department's right to file a notice of
lien shall not run (1) during any period of time in which the
order of any court has the effect of enjoining or restraining
the Department from filing such notice of lien, or (2) during
the term of a repayment plan that taxpayer has entered into
with the Department, as long as taxpayer remains in compliance
with the terms of the repayment plan.
    If the Department finds that a taxpayer is about to depart
from the State, or to conceal himself or his property, or to do
any other act tending to prejudice or to render wholly or
partly ineffectual proceedings to collect such tax unless such
proceedings are brought without delay, or if the Department
finds that the collection of the amount due from any taxpayer
will be jeopardized by delay, the Department shall give the
taxpayer notice of such findings and shall make demand for
immediate return and payment of such tax, whereupon such tax
shall become immediately due and payable. If the taxpayer,
within 5 days after such notice (or within such extension of
time as the Department may grant), does not comply with such
notice or show to the Department that the findings in such
notice are erroneous, the Department may file a notice of
jeopardy assessment lien in the office of the recorder of the
county in which any property of the taxpayer may be located and
shall notify the taxpayer of such filing. Such jeopardy
assessment lien shall have the same scope and effect as the
statutory lien hereinbefore provided for in this Section.
    If the taxpayer believes that he does not owe some or all
of the tax for which the jeopardy assessment lien against him
has been filed, or that no jeopardy to the revenue in fact
exists, he may protest within 20 days after being notified by
the Department of the filing of such jeopardy assessment lien
and request a hearing, whereupon the Department shall hold a
hearing in conformity with the provisions of this Act and,
pursuant thereto, shall notify the taxpayer of its findings as
to whether or not such jeopardy assessment lien will be
released. If not, and if the taxpayer is aggrieved by this
decision, he may file an action for judicial review of such
final determination of the Department in accordance with
Section 12 of this Act and the Administrative Review Law.
    On and after July 1, 2013, protests concerning matters that
are subject to the jurisdiction of the Illinois Independent Tax
Tribunal shall be filed with the Tribunal, and hearings on
those matters shall be held before the Tribunal in accordance
with the Illinois Independent Tax Tribunal Act of 2012. The
Tribunal shall notify the taxpayer of its findings as to
whether or not such jeopardy assessment lien will be released.
If not, and if the taxpayer is aggrieved by this decision, he
may file an action for judicial review of such final
determination of the Department in accordance with Section 12
of this Act and the Illinois Independent Tax Tribunal Act of
2012.
    With respect to protests filed with the Department prior to
July 1, 2013 that would otherwise be subject to the
jurisdiction of the Illinois Independent Tax Tribunal, the
taxpayer may elect to be subject to the provisions of the
Illinois Independent Tax Tribunal Act of 2012 at any time on or
after July 1, 2013, but not later than 30 days after the date
on which the protest was filed. If made, the election shall be
irrevocable.
    If, pursuant to such hearing (or after an independent
determination of the facts by the Department without a
hearing), the Department or the Tribunal determines that some
or all of the tax covered by the jeopardy assessment lien is
not owed by the taxpayer, or that no jeopardy to the revenue
exists, or if on judicial review the final judgment of the
court is that the taxpayer does not owe some or all of the tax
covered by the jeopardy assessment lien against him, or that no
jeopardy to the revenue exists, the Department shall release
its jeopardy assessment lien to the extent of such finding of
nonliability for the tax, or to the extent of such finding of
no jeopardy to the revenue.
    The Department shall also release its jeopardy assessment
lien against the taxpayer whenever the tax and penalty covered
by such lien, plus any interest which may be due, are paid and
the taxpayer has paid the Department in cash or by guaranteed
remittance an amount representing the filing fee for the lien
and the filing fee for the release of that lien. The Department
shall file that release of lien with the recorder of the county
where that lien was filed.
    Nothing in this Section shall be construed to give the
Department a preference over the rights of any bona fide
purchaser, holder of a security interest, mechanics
lienholder, mortgagee, or judgment lien creditor arising prior
to the filing of a regular notice of lien or a notice of
jeopardy assessment lien in the office of the recorder in the
county in which the property subject to the lien is located:
Provided, however, that the word "bona fide", as used in this
Section shall not include any mortgage of real or personal
property or any other credit transaction that results in the
mortgagee or the holder of the security acting as trustee for
unsecured creditors of the taxpayer mentioned in the notice of
lien who executed such chattel or real property mortgage or the
document evidencing such credit transaction. Such lien shall be
inferior to the lien of general taxes, special assessments and
special taxes heretofore or hereafter levied by any political
subdivision of this State.
    In case title to land to be affected by the notice of lien
or notice of jeopardy assessment lien is registered under the
provisions of "An Act concerning land titles", approved May 1,
1897, as amended, such notice shall be filed in the office of
the Registrar of Titles of the county within which the property
subject to the lien is situated and shall be entered upon the
register of titles as a memorial or charge upon each folium of
the register of titles affected by such notice, and the
Department shall not have a preference over the rights of any
bona fide purchaser, mortgagee, judgment creditor or other lien
holder arising prior to the registration of such notice:
Provided, however, that the word "bona fide" shall not include
any mortgage of real or personal property or any other credit
transaction that results in the mortgagee or the holder of the
security acting as trustee for unsecured creditors of the
taxpayer mentioned in the notice of lien who executed such
chattel or real property mortgage or the document evidencing
such credit transaction.
    Such regular lien or jeopardy assessment lien shall not be
effective against any purchaser with respect to any item in a
retailer's stock in trade purchased from the retailer in the
usual course of such retailer's business.
(Source: P.A. 97-1129, eff. 8-28-12.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/16/2013