Bill Text: IL HB4511 | 2025-2026 | 104th General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Provides that, if a late discretionary hearing for a revised final assessment has been granted after a lien has attached, then the lien shall remain in full force except to the extent to which the final assessment may be reduced by a revised final assessment following the hearing or review. Effective immediately.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced) 2026-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB4511 Detail]
Download: Illinois-2025-HB4511-Introduced.html
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| 1 | AN ACT concerning revenue. | |||||||||||||||||||
| 2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
| 3 | represented in the General Assembly: | |||||||||||||||||||
| 4 | Section 5. The Illinois Income Tax Act is amended by | |||||||||||||||||||
| 5 | changing Section 1101 as follows: | |||||||||||||||||||
| 6 | (35 ILCS 5/1101) (from Ch. 120, par. 11-1101) | |||||||||||||||||||
| 7 | Sec. 1101. Lien for Tax. | |||||||||||||||||||
| 8 | (a) If any person liable to pay any tax neglects or refuses | |||||||||||||||||||
| 9 | to pay the same after demand, the amount (including any | |||||||||||||||||||
| 10 | interest, additional amount, addition to tax, or assessable | |||||||||||||||||||
| 11 | penalty, together with any costs that may accrue in addition | |||||||||||||||||||
| 12 | thereto) shall be a lien in favor of the State of Illinois upon | |||||||||||||||||||
| 13 | all property and rights to property, whether real or personal, | |||||||||||||||||||
| 14 | belonging to such person. | |||||||||||||||||||
| 15 | (b) Unless another date is specifically fixed by law, the | |||||||||||||||||||
| 16 | lien imposed by subsection (a) of this Section shall arise at | |||||||||||||||||||
| 17 | the time the assessment is made and shall continue until the | |||||||||||||||||||
| 18 | liability for the amount so assessed (or a judgment against | |||||||||||||||||||
| 19 | the taxpayer arising out of such liability) is satisfied or | |||||||||||||||||||
| 20 | becomes unenforceable by reason of lapse of time. | |||||||||||||||||||
| 21 | (c) Deficiency procedure. If the lien arises from an | |||||||||||||||||||
| 22 | assessment pursuant to a notice of deficiency, such lien shall | |||||||||||||||||||
| 23 | not attach and the notice referred to in this Section shall not | |||||||||||||||||||
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| 1 | be filed until all proceedings in court for review of such | ||||||
| 2 | assessment have terminated or the time for the taking thereof | ||||||
| 3 | has expired without such proceedings being instituted. If a | ||||||
| 4 | late discretionary hearing has been granted pursuant to | ||||||
| 5 | subsection (d) of Section 908 of this Act after a lien has | ||||||
| 6 | attached, that lien shall remain in full force except to the | ||||||
| 7 | extent to which the final assessment may be reduced by a | ||||||
| 8 | revised final assessment following the hearing or review. | ||||||
| 9 | (d) Notice of lien. The lien created by assessment shall | ||||||
| 10 | terminate unless a notice of lien is filed, as provided in | ||||||
| 11 | Section 1103 hereof, within 3 years from the date all | ||||||
| 12 | proceedings in court for the review of such assessment have | ||||||
| 13 | terminated or the time for the taking thereof has expired | ||||||
| 14 | without such proceedings being instituted. Where the lien | ||||||
| 15 | results from the filing of a return without payment of the tax | ||||||
| 16 | or penalty shown therein to be due, the lien shall terminate | ||||||
| 17 | unless a notice of lien is filed within 3 years from the date | ||||||
| 18 | such return was filed with the Department. For the purposes of | ||||||
| 19 | this subsection (d), a tax return filed before the last day | ||||||
| 20 | prescribed by law, including any extension thereof, shall be | ||||||
| 21 | deemed to have been filed on such last day. The time limitation | ||||||
| 22 | period on the Department's right to file a notice of lien shall | ||||||
| 23 | not run (1) during any period of time in which the order of any | ||||||
| 24 | court has the effect of enjoining or restraining the | ||||||
| 25 | Department from filing such notice of lien, or (2) during the | ||||||
| 26 | term of a repayment plan that taxpayer has entered into with | ||||||
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| 1 | the Department, as long as taxpayer remains in compliance with | ||||||
| 2 | the terms of the repayment plan. | ||||||
| 3 | (Source: P.A. 97-507, eff. 8-23-11; 98-446, eff. 8-16-13.) | ||||||
| 4 | Section 99. Effective date. This Act takes effect upon | ||||||
| 5 | becoming law. | ||||||
