|
Illinois Banking Act for
the deposit and withdrawal of moneys |
to be used solely for the purchase
of evidence and for the |
employment of persons to obtain evidence. No check
may be |
written on nor any withdrawal made from such an account except |
on
the
written signature of 2 persons designated by the |
Director to write
those checks and make those withdrawals. The |
balance
of moneys on deposit in any
such account shall not |
exceed $25,000 $5,000 at any time, nor shall any one check
|
written on or single withdrawal made from any such account |
exceed $25,000 $5,000.
|
(Source: P.A. 91-239, eff. 1-1-00.)
|
Section 15. The Uniform Penalty and Interest Act is amended |
by changing Sections 3-2 and 3-3 as follows:
|
(35 ILCS 735/3-2) (from Ch. 120, par. 2603-2)
|
Sec. 3-2. Interest.
|
(a) Interest paid by the Department to taxpayers and |
interest
charged to taxpayers by the Department shall be paid |
at the annual
rate determined by the Department. For periods |
prior to January 1, 2004, and after December 31, 2013, that
|
rate shall be the underpayment
rate established under Section |
6621 of the Internal Revenue Code. For periods
after December |
31, 2003, and prior to January 1, 2014, that rate shall be:
|
(1) for the one-year period beginning with the date of |
underpayment or
overpayment, the short-term federal rate |
|
established under Section 6621 of the
Internal Revenue |
Code.
|
(2) for any period beginning the day after the one-year |
period described
in paragraph (1) of this subsection (a), |
the underpayment rate established
under Section 6621 of the |
Internal Revenue Code.
|
(b) The interest rate shall be adjusted on a semiannual |
basis, on
January 1 and July 1, based upon the underpayment |
rate or short-term federal
rate going into
effect on that |
January 1 or July 1 under Section 6621 of the Internal
Revenue |
Code.
|
(c) This subsection (c) is applicable to returns due on and |
before
December 31, 2000.
Interest shall be simple interest |
calculated on a daily basis.
Interest shall accrue upon tax and |
penalty due. If notice and demand
is made for the payment of |
any amount of tax due and if the amount due is
paid within 30 |
days after the date of such notice and demand, interest
under |
this Section on the amount so paid shall not be imposed for the
|
period after the date of the notice and demand.
|
(c-5) This subsection (c-5) is applicable to returns due on |
and after
January 1, 2001.
Interest shall be simple interest |
calculated on a daily basis. Interest shall
accrue upon tax |
due. If notice and demand is made for the payment of any
amount |
of tax due and if the amount due is paid within 30 days after |
the date
of the notice and demand, interest under this Section |
on the amount so paid
shall not be imposed for the period after |
|
the date of the notice and demand.
|
(d) No interest shall be paid upon any overpayment of tax |
if the
overpayment is refunded or a credit approved within 90 |
days after the last
date prescribed for filing the original |
return,
or within 90 days of the receipt of the processable |
return, or within 90
days after the date of overpayment, |
whichever date is latest, as determined
without regard to |
processing time by the Comptroller or without regard to
the |
date on which the credit is applied to the taxpayer's account.
|
In order for an original return to be processable for purposes |
of this
Section, it must be in the form prescribed or approved |
by
the Department, signed by the person authorized by law, and |
contain all
information, schedules, and support documents |
necessary to determine the
tax due and to make allocations of |
tax as prescribed by law.
For the purposes of computing |
interest, a return shall be deemed to be
processable unless the |
Department notifies the taxpayer that the return is
not |
processable within 90 days after the receipt of the return; |
however,
interest shall not accumulate for the period following |
this date of notice.
Interest on amounts refunded or credited |
pursuant to the filing of an
amended return or claim for refund |
shall be determined from the due date of
the original return or |
the date of overpayment, whichever is later, to the
date of |
payment by the Department without regard to processing time by |
the
Comptroller or the date of credit by the Department or |
without regard to
the date on which the credit is applied to |
|
the taxpayer's account. If a
claim for refund relates to an |
overpayment attributable to a net loss
carryback as provided by |
Section 207 of the Illinois Income Tax Act, the
date of |
overpayment shall be the last day of the taxable year in which |
the
loss was incurred.
|
(e) Interest on erroneous refunds. Any portion of the tax |
imposed by an
Act to which this Act is applicable or any |
interest or penalty which has
been erroneously refunded and |
which is recoverable by the Department shall
bear interest from |
the date of payment of the refund. However, no interest
will be |
charged if the erroneous refund is for an amount less than $500 |
and
is due to a mistake of the Department.
|
(f) If a taxpayer has a tax liability for the taxable |
period ending after June 30,
1983 and prior to July 1, 2002 |
that is eligible for amnesty under
the Tax Delinquency Amnesty |
Act and the taxpayer fails to satisfy the tax
liability during |
the amnesty period provided for in that Act for that taxable |
period, then the interest
charged by the Department under this |
Section shall be
imposed at a rate that is 200% of the rate |
that would otherwise be imposed
under this Section.
|
(g) If a taxpayer has a tax liability for the taxable |
period ending after June 30, 2002 and prior to July 1, 2009 |
that is eligible for amnesty under the
Tax Delinquency Amnesty |
Act, except for any tax liability reported pursuant to Section |
506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)) that |
is not final, and the taxpayer fails to satisfy the tax |
|
liability
during the amnesty period provided for in that Act |
for that taxable period, then the interest charged by
the |
Department under this Section shall be imposed in an amount |
that is 200% of
the amount that would otherwise be imposed |
under this Section. |
(h) No interest shall be paid to a taxpayer on any refund |
allowed under the Tax Delinquency Amnesty Act. |
(Source: P.A. 95-331, eff. 8-21-07; 96-1435, eff. 8-16-10.)
|
(35 ILCS 735/3-3) (from Ch. 120, par. 2603-3)
|
Sec. 3-3. Penalty for failure to file or pay.
|
(a) This subsection (a) is applicable before January 1, |
1996. A penalty
of 5% of the tax required to be shown due on a |
return shall be
imposed for failure to file the tax return on |
or before the due date prescribed
for filing determined with |
regard for any extension of time for filing
(penalty
for late |
filing or nonfiling). If any unprocessable return is corrected |
and
filed within 21 days after notice by the Department, the |
late filing or
nonfiling penalty shall not apply. If a penalty |
for late filing or nonfiling
is imposed in addition to a |
penalty for late payment, the total penalty due
shall be the |
sum of the late filing penalty and the applicable late payment
|
penalty.
Beginning on the effective date of this amendatory Act |
of 1995, in the case
of any type of tax return required to be |
filed more frequently
than annually, when the failure to file |
the tax return on or before the
date prescribed for filing |
|
(including any extensions) is shown to be
nonfraudulent and has |
not occurred in the 2 years immediately preceding the
failure |
to file on the prescribed due date, the penalty imposed by |
Section
3-3(a) shall be abated.
|
(a-5) This subsection (a-5) is applicable to returns due on |
and after
January 1, 1996 and on or before December 31, 2000.
A |
penalty equal to 2% of
the tax required to be shown due on a |
return, up to a maximum amount of $250,
determined without |
regard to any part of the tax that is paid on time or by any
|
credit that was properly allowable on the date the return was |
required to be
filed, shall be
imposed for failure to file the |
tax return on or before the due date prescribed
for filing |
determined with regard for any extension of time for filing.
|
However, if any return is not filed within 30 days after notice |
of nonfiling
mailed by the Department to the last known address |
of the taxpayer contained in
Department records, an additional |
penalty amount shall be imposed equal to the
greater of $250 or |
2% of the tax shown on the return. However, the additional
|
penalty amount may not exceed $5,000 and is determined without |
regard to any
part of the tax that is paid on time or by any |
credit that was properly
allowable on the date the return was |
required to be filed (penalty
for late filing or nonfiling). If |
any unprocessable return is corrected and
filed within 30 days |
after notice by the Department, the late filing or
nonfiling |
penalty shall not apply. If a penalty for late filing or |
nonfiling
is imposed in addition to a penalty for late payment, |
|
the total penalty due
shall be the sum of the late filing |
penalty and the applicable late payment
penalty.
In the case of |
any type of tax return required to be filed more frequently
|
than annually, when the failure to file the tax return on or |
before the
date prescribed for filing (including any |
extensions) is shown to be
nonfraudulent and has not occurred |
in the 2 years immediately preceding the
failure to file on the |
prescribed due date, the penalty imposed by Section
3-3(a-5) |
shall be abated.
|
(a-10) This subsection (a-10) is applicable to returns due |
on and after
January 1, 2001.
A penalty equal to 2% of
the tax |
required to be shown due on a return, up to a maximum amount of |
$250,
reduced by any tax that is
paid on time or by any
credit |
that was properly allowable on the date the return was required |
to be
filed, shall be
imposed for failure to file the tax |
return on or before the due date prescribed
for filing |
determined with regard for any extension of time for filing.
|
However, if any return is not filed within 30 days after notice |
of nonfiling
mailed by the Department to the last known address |
of the taxpayer contained in
Department records, an additional |
penalty amount shall be imposed equal to the
greater of $250 or |
2% of the tax shown on the return. However, the additional
|
penalty amount may not exceed $5,000 and is determined without |
regard to any
part of the tax that is paid on time or by any |
credit that was properly
allowable on the date the return was |
required to be filed (penalty
for late filing or nonfiling). If |
|
any unprocessable return is corrected and
filed within 30 days |
after notice by the Department, the late filing or
nonfiling |
penalty shall not apply. If a penalty for late filing or |
nonfiling
is imposed in addition to a penalty for late payment, |
the total penalty due
shall be the sum of the late filing |
penalty and the applicable late payment
penalty.
In the case of |
any type of tax return required to be filed more frequently
|
than annually, when the failure to file the tax return on or |
before the
date prescribed for filing (including any |
extensions) is shown to be
nonfraudulent and has not occurred |
in the 2 years immediately preceding the
failure to file on the |
prescribed due date, the penalty imposed by Section
3-3(a-10) |
shall be abated.
|
(a-15) In addition to any other penalties imposed by law |
for the failure to file a return, a penalty of $100 shall be |
imposed for failure to file a transaction reporting return |
required by Section 3 of the Retailers' Occupation Tax Act and |
Section 9 of the Use Tax Act on or before the date a return is |
required to be filed. This penalty shall be imposed regardless |
of whether the return when properly prepared and filed would |
result in the imposition of a tax. |
(b) This subsection is applicable before January 1, 1998.
A |
penalty of 15% of the tax shown on the return or the tax |
required to
be shown due on the return shall be imposed for |
failure to pay:
|
(1) the tax shown due on the return on or before the |
|
due date prescribed
for payment of that tax, an amount of |
underpayment of estimated tax, or an
amount that is |
reported in an amended return other than an amended return
|
timely filed as required by subsection (b) of Section 506 |
of the Illinois
Income Tax Act (penalty for late payment or |
nonpayment of admitted liability);
or
|
(2) the full amount of any tax required to be shown due |
on a
return and which is not shown (penalty for late |
payment or nonpayment of
additional liability), within 30 |
days after a notice of arithmetic error,
notice and demand, |
or a final assessment is issued by the Department.
In the |
case of a final assessment arising following a protest and |
hearing,
the 30-day period shall not begin until all |
proceedings in court for review of
the final assessment |
have terminated or the period for obtaining a review has
|
expired without proceedings for a review having been |
instituted. In the case
of a notice of tax liability that |
becomes a final assessment without a protest
and hearing, |
the penalty provided in this paragraph (2) shall be imposed |
at the
expiration of the period provided for the filing of |
a protest.
|
(b-5) This subsection is applicable to returns due on and |
after January
1, 1998 and on or before December 31, 2000.
A |
penalty of 20% of the tax shown on the return or the tax |
required to be
shown due on the return shall be imposed for |
failure to
pay:
|
|
(1) the tax shown due on the return on or before the |
due date prescribed
for payment of that tax, an amount of |
underpayment of estimated tax, or an
amount that is |
reported in an amended return other than an amended return
|
timely filed as required by subsection (b) of Section 506 |
of the Illinois
Income Tax Act (penalty for late payment or |
nonpayment of admitted liability);
or
|
(2) the full amount of any tax required to be shown due |
on a
return and which is not shown (penalty for late |
payment or nonpayment of
additional liability), within 30 |
days after a notice of arithmetic error,
notice and demand, |
or a final assessment is issued by the Department.
In the |
case of a final assessment arising following a protest and |
hearing,
the 30-day period shall not begin until all |
proceedings in court for review of
the final assessment |
have terminated or the period for obtaining a review has
|
expired without proceedings for a review having been |
instituted. In the case
of a notice of tax liability that |
becomes a final assessment without a protest
and hearing, |
the penalty provided in this paragraph (2) shall be imposed |
at the
expiration of the period provided for the filing of |
a protest.
|
(b-10) This subsection (b-10) is applicable to returns due |
on and after
January 1, 2001 and on or before December 31, |
2003. A penalty shall be
imposed for failure to pay:
|
(1) the tax shown due on a return on or before the due |
|
date prescribed for
payment of that tax, an amount of |
underpayment of estimated tax, or an amount
that is |
reported in an amended return other than an amended return |
timely filed
as required by subsection (b) of Section 506 |
of the Illinois Income Tax Act
(penalty for late payment or |
nonpayment of admitted liability). The amount of
penalty |
imposed under this subsection (b-10)(1) shall be 2% of any |
amount that
is paid no later than 30 days after the due |
date, 5% of any amount that is
paid later than 30 days |
after the due date and not later than 90 days after
the due |
date, 10% of any amount that is paid later than 90 days |
after the due
date and not later than 180 days after the |
due date, and 15% of any amount that
is paid later than 180 |
days after the
due date.
If notice and demand is made for |
the payment of any amount of tax due and if
the amount due |
is paid within 30 days after the date of the notice and |
demand,
then the penalty for late payment or nonpayment of |
admitted liability under
this subsection (b-10)(1) on the |
amount so paid shall not accrue for the period
after the |
date of the notice and demand.
|
(2) the full amount of any tax required to be shown due |
on a return and
that is not shown (penalty for late payment |
or nonpayment of additional
liability), within 30 days |
after a notice of arithmetic error, notice and
demand, or a |
final assessment is issued by the Department. In the case |
of a
final assessment arising following a protest and |
|
hearing, the 30-day period
shall not begin until all |
proceedings in court for review of the final
assessment |
have terminated or the period for obtaining a review has |
expired
without proceedings for a review having been |
instituted. The amount of penalty
imposed under this |
subsection (b-10)(2) shall be 20% of any amount that is not
|
paid within the 30-day period. In the case of a notice of |
tax liability that
becomes a final assessment without a |
protest and hearing, the penalty provided
in this |
subsection (b-10)(2) shall be imposed at the expiration of |
the period
provided for the filing of a protest.
|
(b-15) This subsection (b-15) is applicable to returns due |
on and after
January 1, 2004 and on or before December 31, |
2004. A penalty shall be imposed for failure to pay the tax |
shown due or
required to be shown due on a return on or before |
the due date prescribed for
payment of that tax, an amount of |
underpayment of estimated tax, or an amount
that is reported in |
an amended return other than an amended return timely filed
as |
required by subsection (b) of Section 506 of the Illinois |
Income Tax Act
(penalty for late payment or nonpayment of |
admitted liability). The amount of
penalty imposed under this |
subsection (b-15)(1) shall be 2% of any amount that
is paid no |
later than 30 days after the due date, 10% of any amount that |
is
paid later than 30 days after the due date and not later |
than 90 days after the
due date, 15% of any amount that is paid |
later than 90 days after the due date
and not later than 180 |
|
days after the due date, and 20% of any amount that is
paid |
later than 180 days after the due date. If notice and demand is |
made for
the payment of any amount of tax due and if the amount |
due is paid within 30
days after the date of this notice and |
demand, then the penalty for late
payment or nonpayment of |
admitted liability under this subsection (b-15)(1) on
the |
amount so paid shall not accrue for the period after the date |
of the notice
and demand.
|
(b-20) This subsection (b-20) is applicable to returns due |
on and after January 1, 2005. |
(1) A penalty shall be imposed for failure to pay, |
prior to the due date for payment, any amount of tax the |
payment of which is required to be made prior to the filing |
of a return or without a return (penalty for late payment |
or nonpayment of estimated or accelerated tax). The amount |
of penalty imposed under this paragraph (1) shall be 2% of |
any amount that is paid no later than 30 days after the due |
date and 10% of any amount that is paid later than 30 days |
after the due date. |
(2) A penalty shall be imposed for failure to pay the |
tax shown due or required to be shown due on a return on or |
before the due date prescribed for payment of that tax or |
an amount that is reported in an amended return other than |
an amended return timely filed as required by subsection |
(b) of Section 506 of the Illinois Income Tax Act (penalty |
for late payment or nonpayment of tax). The amount of |
|
penalty imposed under this paragraph (2) shall be 2% of any |
amount that is paid no later than 30 days after the due |
date, 10% of any amount that is paid later than 30 days |
after the due date and prior to the date the Department has |
initiated an audit or investigation of the taxpayer, and |
20% of any amount that is paid after the date the |
Department has initiated an audit or investigation of the |
taxpayer; provided that the penalty shall be reduced to 15% |
if the entire amount due is paid not later than 30 days |
after the Department has provided the taxpayer with an |
amended return (following completion of an occupation, |
use, or excise tax audit) or a form for waiver of |
restrictions on assessment (following completion of an |
income tax audit); provided further that the reduction to |
15% shall be rescinded if the taxpayer makes any claim for |
refund or credit of the tax, penalties, or interest |
determined to be due upon audit, except in the case of a |
claim filed pursuant to subsection (b) of Section 506 of |
the Illinois Income Tax Act or to claim a carryover of a |
loss or credit, the availability of which was not |
determined in the audit. For purposes of this paragraph |
(2), any overpayment reported on an original return that |
has been allowed as a refund or credit to the taxpayer |
shall be deemed to have not been paid on or before the due |
date for payment and any amount paid under protest pursuant |
to the provisions of the State Officers and Employees Money |
|
Disposition Act shall be deemed to have been paid after the |
Department has initiated an audit and more than 30 days |
after the Department has provided the taxpayer with an |
amended return (following completion of an occupation, |
use, or excise tax audit) or a form for waiver of |
restrictions on assessment (following completion of an |
income tax audit). |
(3) The penalty imposed under this subsection (b-20) |
shall be deemed assessed at the time the tax upon which the |
penalty is computed is assessed, except that, if the |
reduction of the penalty imposed under paragraph (2) of |
this subsection (b-20) to 15% is rescinded because a claim |
for refund or credit has been filed, the increase in |
penalty shall be deemed assessed at the time the claim for |
refund or credit is filed.
|
(c) For purposes of the late payment penalties, the basis |
of the penalty
shall be the tax shown or required to be shown |
on a return, whichever is
applicable, reduced by any part of |
the tax which is paid on time and by any
credit which was |
properly allowable on the date the return was required to
be |
filed.
|
(d) A penalty shall be applied to the tax required to be |
shown even if
that amount is less than the tax shown on the |
return.
|
(e) This subsection (e) is applicable to returns due before |
January 1,
2001.
If both a subsection (b)(1) or (b-5)(1) |
|
penalty and a subsection (b)(2)
or (b-5)(2) penalty are |
assessed against the same return, the subsection
(b)(2) or |
(b-5)(2) penalty shall
be assessed against only the additional |
tax found to be due.
|
(e-5) This subsection (e-5) is applicable to returns due on |
and after
January 1, 2001.
If both a subsection (b-10)(1) |
penalty and a subsection
(b-10)(2) penalty are assessed against |
the same return,
the subsection (b-10)(2) penalty shall be |
assessed against
only the additional tax found to be due.
|
(f) If the taxpayer has failed to file the return, the |
Department shall
determine the correct tax according to its |
best judgment and information,
which amount shall be prima |
facie evidence of the correctness of the tax due.
|
(g) The time within which to file a return or pay an amount |
of tax due
without imposition of a penalty does not extend the |
time within which to
file a protest to a notice of tax |
liability or a notice of deficiency.
|
(h) No return shall be determined to be unprocessable |
because of the
omission of any information requested on the |
return pursuant to Section
2505-575
of the Department of |
Revenue Law (20 ILCS 2505/2505-575).
|
(i) If a taxpayer has a tax liability for the taxable |
period ending after June 30,
1983 and prior to July 1, 2002 |
that is eligible for amnesty under the
Tax Delinquency Amnesty |
Act and the taxpayer fails to satisfy the tax liability
during |
the amnesty period provided for in that Act for that taxable |
|
period, then the penalty imposed by
the Department under this |
Section shall be imposed in an amount that is 200% of
the |
amount that would otherwise be imposed under this Section.
|
(j) If a taxpayer has a tax liability for the taxable |
period ending after June 30, 2002 and prior to July 1, 2009 |
that is eligible for amnesty under the
Tax Delinquency Amnesty |
Act, except for any tax liability reported pursuant to Section |
506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)) that |
is not final, and the taxpayer fails to satisfy the tax |
liability
during the amnesty period provided for in that Act |
for that taxable period, then the penalty imposed by
the |
Department under this Section shall be imposed in an amount |
that is 200% of
the amount that would otherwise be imposed |
under this Section. |
(Source: P.A. 96-1435, eff. 8-16-10.)
|
Section 99. Effective date. This Act takes effect upon |
becoming law.
|
