Bill Text: IL SB0337 | 2013-2014 | 98th General Assembly | Amended

---

Bill Title: Amends the Motor Fuel Tax Law. Makes a technical change in a Section concerning definitions.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2015-01-13 - Session Sine Die [SB0337 Detail]

Download: Illinois-2013-SB0337-Amended.html

---

Sen. Toi W. Hutchinson

Filed: 4/15/2013

09800SB0337sam001 LRB098 04614 HLH 44409 a
AMENDMENT TO SENATE BILL 337
AMENDMENT NO. ______. Amend Senate Bill 337 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Income Tax Act is amended by
changing Section 502 as follows:
(35 ILCS 5/502) (from Ch. 120, par. 5-502)
Sec. 502. Returns and notices.
(a) In general. A return with respect to the taxes imposed
by this Act shall be made by every person for any taxable year:
(1) for which such person is liable for a tax imposed
by this Act, or
(2) in the case of a resident or in the case of a
corporation which is qualified to do business in this
State, for which such person is required to make a federal
income tax return, regardless of whether such person is
liable for a tax imposed by this Act. However, this

09800SB0337sam001 - 2 - LRB098 04614 HLH 44409 a
paragraph shall not require a resident to make a return if
such person has an Illinois base income of the basic amount
in Section 204(b) or less and is either claimed as a
dependent on another person's tax return under the Internal
Revenue Code, or is claimed as a dependent on another
person's tax return under this Act.
Notwithstanding the provisions of paragraph (1), a
nonresident (other than, for taxable years ending on or after
December 31, 2011, a nonresident required to withhold tax under
Section 709.5) whose Illinois income tax liability under
subsections (a), (b), (c), and (d) of Section 201 of this Act
is paid in full after taking into account the credits allowed
under subsection (f) of this Section or allowed under Section
709.5 of this Act shall not be required to file a return under
this subsection (a).
(b) Fiduciaries and receivers.
(1) Decedents. If an individual is deceased, any return
or notice required of such individual under this Act shall
be made by his executor, administrator, or other person
charged with the property of such decedent.
(2) Individuals under a disability. If an individual is
unable to make a return or notice required under this Act,
the return or notice required of such individual shall be
made by his duly authorized agent, guardian, fiduciary or
other person charged with the care of the person or
property of such individual.

09800SB0337sam001 - 3 - LRB098 04614 HLH 44409 a
(3) Estates and trusts. Returns or notices required of
an estate or a trust shall be made by the fiduciary
thereof.
(4) Receivers, trustees and assignees for
corporations. In a case where a receiver, trustee in
bankruptcy, or assignee, by order of a court of competent
jurisdiction, by operation of law, or otherwise, has
possession of or holds title to all or substantially all
the property or business of a corporation, whether or not
such property or business is being operated, such receiver,
trustee, or assignee shall make the returns and notices
required of such corporation in the same manner and form as
corporations are required to make such returns and notices.
(c) Joint returns by husband and wife.
(1) Except as provided in paragraph (3):
(A) if a husband and wife file a joint federal
income tax return for a taxable year ending before
December 31, 2009, they shall file a joint return under
this Act for such taxable year and their liabilities
shall be joint and several;
(B) if a husband and wife file a joint federal
income tax return for a taxable year ending on or after
December 31, 2009, they may elect to file separate
returns under this Act for such taxable year. The
election under this paragraph must be made on or before
the due date (including extensions) of the return and,

09800SB0337sam001 - 4 - LRB098 04614 HLH 44409 a
once made, shall be irrevocable. If no election is
timely made under this paragraph for a taxable year:
(i) the couple must file a joint return under
this Act for such taxable year,
(ii) their liabilities shall be joint and
several, and
(iii) any overpayment for that taxable year
may be withheld under Section 909 of this Act or
under Section 2505-275 of the Civil Administrative
Code of Illinois and applied against a debt of
either spouse without regard to the amount of the
overpayment attributable to the other spouse; and
(C) if the federal income tax liability of either
spouse is determined on a separate federal income tax
return, they shall file separate returns under this
Act.
(2) If neither spouse is required to file a federal
income tax return and either or both are required to file a
return under this Act, they may elect to file separate or
joint returns and pursuant to such election their
liabilities shall be separate or joint and several.
(3) If either husband or wife is a resident and the
other is a nonresident, they shall file separate returns in
this State on such forms as may be required by the
Department in which event their tax liabilities shall be
separate; but if they file a joint federal income tax

09800SB0337sam001 - 5 - LRB098 04614 HLH 44409 a
return for a taxable year, they may elect to determine
their joint net income and file a joint return for that
taxable year under the provisions of paragraph (1) of this
subsection as if both were residents and in such case,
their liabilities shall be joint and several.
(4) Innocent spouses.
(A) However, for tax liabilities arising and paid
prior to August 13, 1999, an innocent spouse shall be
relieved of liability for tax (including interest and
penalties) for any taxable year for which a joint
return has been made, upon submission of proof that the
Internal Revenue Service has made a determination
under Section 6013(e) of the Internal Revenue Code, for
the same taxable year, which determination relieved
the spouse from liability for federal income taxes. If
there is no federal income tax liability at issue for
the same taxable year, the Department shall rely on the
provisions of Section 6013(e) to determine whether the
person requesting innocent spouse abatement of tax,
penalty, and interest is entitled to that relief.
(B) For tax liabilities arising on and after August
13, 1999 or which arose prior to that date, but remain
unpaid as of that date, if an individual who filed a
joint return for any taxable year has made an election
under this paragraph, the individual's liability for
any tax shown on the joint return shall not exceed the

09800SB0337sam001 - 6 - LRB098 04614 HLH 44409 a
individual's separate return amount and the
individual's liability for any deficiency assessed for
that taxable year shall not exceed the portion of the
deficiency properly allocable to the individual. For
purposes of this paragraph:
(i) An election properly made pursuant to
Section 6015 of the Internal Revenue Code shall
constitute an election under this paragraph,
provided that the election shall not be effective
until the individual has notified the Department
of the election in the form and manner prescribed
by the Department.
(ii) If no election has been made under Section
6015, the individual may make an election under
this paragraph in the form and manner prescribed by
the Department, provided that no election may be
made if the Department finds that assets were
transferred between individuals filing a joint
return as part of a scheme by such individuals to
avoid payment of Illinois income tax and the
election shall not eliminate the individual's
liability for any portion of a deficiency
attributable to an error on the return of which the
individual had actual knowledge as of the date of
filing.
(iii) In determining the separate return

09800SB0337sam001 - 7 - LRB098 04614 HLH 44409 a
amount or portion of any deficiency attributable
to an individual, the Department shall follow the
provisions in subsections (c) and (d) of Section
6015 of the Internal Revenue Code.
(iv) In determining the validity of an
individual's election under subparagraph (ii) and
in determining an electing individual's separate
return amount or portion of any deficiency under
subparagraph (iii), any determination made by the
Secretary of the Treasury, by the United States Tax
Court on petition for review of a determination by
the Secretary of the Treasury, or on appeal from
the United States Tax Court under Section 6015 of
the Internal Revenue Code regarding criteria for
eligibility or under subsection (d) of Section
6015 of the Internal Revenue Code regarding the
allocation of any item of income, deduction,
payment, or credit between an individual making
the federal election and that individual's spouse
shall be conclusively presumed to be correct. With
respect to any item that is not the subject of a
determination by the Secretary of the Treasury or
the federal courts, in any proceeding involving
this subsection, the individual making the
election shall have the burden of proof with
respect to any item except that the Department

09800SB0337sam001 - 8 - LRB098 04614 HLH 44409 a
shall have the burden of proof with respect to
items in subdivision (ii).
(v) Any election made by an individual under
this subsection shall apply to all years for which
that individual and the spouse named in the
election have filed a joint return.
(vi) After receiving a notice that the federal
election has been made or after receiving an
election under subdivision (ii), the Department
shall take no collection action against the
electing individual for any liability arising from
a joint return covered by the election until the
Department has notified the electing individual in
writing that the election is invalid or of the
portion of the liability the Department has
allocated to the electing individual. Within 60
days (150 days if the individual is outside the
United States) after the issuance of such
notification, the individual may file a written
protest of the denial of the election or of the
Department's determination of the liability
allocated to him or her and shall be granted a
hearing within the Department under the provisions
of Section 908. If a protest is filed, the
Department shall take no collection action against
the electing individual until the decision

09800SB0337sam001 - 9 - LRB098 04614 HLH 44409 a
regarding the protest has become final under
subsection (d) of Section 908 or, if
administrative review of the Department's decision
is requested under Section 1201, until the
decision of the court becomes final.
(d) Partnerships. Every partnership having any base income
allocable to this State in accordance with section 305(c) shall
retain information concerning all items of income, gain, loss
and deduction; the names and addresses of all of the partners,
or names and addresses of members of a limited liability
company, or other persons who would be entitled to share in the
base income of the partnership if distributed; the amount of
the distributive share of each; and such other pertinent
information as the Department may by forms or regulations
prescribe. The partnership shall make that information
available to the Department when requested by the Department.
(e) For taxable years ending on or after December 31, 1985,
and before December 31, 1993, taxpayers that are corporations
(other than Subchapter S corporations) having the same taxable
year and that are members of the same unitary business group
may elect to be treated as one taxpayer for purposes of any
original return, amended return which includes the same
taxpayers of the unitary group which joined in the election to
file the original return, extension, claim for refund,
assessment, collection and payment and determination of the
group's tax liability under this Act. This subsection (e) does

09800SB0337sam001 - 10 - LRB098 04614 HLH 44409 a
not permit the election to be made for some, but not all, of
the purposes enumerated above. For taxable years ending on or
after December 31, 1987, corporate members (other than
Subchapter S corporations) of the same unitary business group
making this subsection (e) election are not required to have
the same taxable year.
For taxable years ending on or after December 31, 1993,
taxpayers that are corporations (other than Subchapter S
corporations) and that are members of the same unitary business
group shall be treated as one taxpayer for purposes of any
original return, amended return which includes the same
taxpayers of the unitary group which joined in filing the
original return, extension, claim for refund, assessment,
collection and payment and determination of the group's tax
liability under this Act.
(f) The Department may promulgate regulations to permit
nonresident individual partners of the same partnership,
nonresident Subchapter S corporation shareholders of the same
Subchapter S corporation, and nonresident individuals
transacting an insurance business in Illinois under a Lloyds
plan of operation, and nonresident individual members of the
same limited liability company that is treated as a partnership
under Section 1501 (a)(16) of this Act, to file composite
individual income tax returns reflecting the composite income
of such individuals allocable to Illinois and to make composite
individual income tax payments. The Department may by

09800SB0337sam001 - 11 - LRB098 04614 HLH 44409 a
regulation also permit such composite returns to include the
income tax owed by Illinois residents attributable to their
income from partnerships, Subchapter S corporations, insurance
businesses organized under a Lloyds plan of operation, or
limited liability companies that are treated as partnership
under Section 1501(a)(16) of this Act, in which case such
Illinois residents will be permitted to claim credits on their
individual returns for their shares of the composite tax
payments. This paragraph of subsection (f) applies to taxable
years ending on or after December 31, 1987.
For taxable years ending on or after December 31, 1999, the
Department may, by regulation, also permit any persons
transacting an insurance business organized under a Lloyds plan
of operation to file composite returns reflecting the income of
such persons allocable to Illinois and the tax rates applicable
to such persons under Section 201 and to make composite tax
payments and shall, by regulation, also provide that the income
and apportionment factors attributable to the transaction of an
insurance business organized under a Lloyds plan of operation
by any person joining in the filing of a composite return
shall, for purposes of allocating and apportioning income under
Article 3 of this Act and computing net income under Section
202 of this Act, be excluded from any other income and
apportionment factors of that person or of any unitary business
group, as defined in subdivision (a)(27) of Section 1501, to
which that person may belong.

09800SB0337sam001 - 12 - LRB098 04614 HLH 44409 a
For taxable years ending on or after December 31, 2008,
every nonresident shall be allowed a credit against his or her
liability under subsections (a) and (b) of Section 201 for any
amount of tax reported on a composite return and paid on his or
her behalf under this subsection (f). Residents (other than
persons transacting an insurance business organized under a
Lloyds plan of operation) may claim a credit for taxes reported
on a composite return and paid on their behalf under this
subsection (f) only as permitted by the Department by rule.
(f-5) For taxable years ending on or after December 31,
2008, the Department may adopt rules to provide that, when a
partnership or Subchapter S corporation has made an error in
determining the amount of any item of income, deduction,
addition, subtraction, or credit required to be reported on its
return that affects the liability imposed under this Act on a
partner or shareholder, the partnership or Subchapter S
corporation may report the changes in liabilities of its
partners or shareholders and claim a refund of the resulting
overpayments, or pay the resulting underpayments, on behalf of
its partners and shareholders.
(g) The Department may adopt rules to authorize the
electronic filing of any return required to be filed under this
Section.
(h) The Department shall provide a taxpayer receipt to each
Illinois individual income tax filer who filed an electronic
income tax return for the preceding taxable year directly

09800SB0337sam001 - 13 - LRB098 04614 HLH 44409 a
through the Illinois Department of Revenue's website on or
after the effective date of this amendatory Act of the 98th
General Assembly. For purposes of this subsection, each
taxpayer receipt shall:
(1) confirm that the Department has received the
taxpayer's Illinois individual income tax return for the
prior taxable calendar year;
(2) contain tables or other graphic representations
including, but not limited to, the following information:
(A) categories of prior State fiscal year revenue;
(B) categories of prior State fiscal year
spending; and
(C) with respect to each revenue and spending
category, the ratio (expressed as a percentage) and
proportional amount (expressed in dollars) of State
revenue and spending for the preceding fiscal year.
When a taxpayer files a State income tax return
electronically through the Department's website, the receipt
shall be generated as part of the electronic confirmation of
filing.
The Department shall also make available on its public
website the information described in paragraph (2) of this
subsection (h). In addition, the Department may make available
on its public website an interactive tool that will calculate
the dollars allocated to the spending categories described in
paragraph (2) of this subsection (h) according to input

09800SB0337sam001 - 14 - LRB098 04614 HLH 44409 a
provided by any visitor to the site.
(Source: P.A. 96-520, eff. 8-14-09; 97-507, eff. 8-23-11.)
Section 99. Effective date. This Act takes effect January
1, 2014.".