Bill Text: IL SB1608 | 2015-2016 | 99th General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Uniform Penalty and Interest Act. Provides that provisions imposing a penalty of $100 for failure to file a transaction reporting return under the Retailers' Occupation Tax Act or the Use Tax Act apply only to transaction reporting returns that would not, when properly prepared and filed, result in the imposition of a tax (currently, those provisions apply regardless of whether a tax would be imposed). Provides that transaction reporting returns that would result in the imposition of a tax when properly prepared and filed are subject to the standard penalty for failure to file (2% of the tax required to be shown due on the return, up to a maximum amount of $250). Effective immediately.
Spectrum: Bipartisan Bill
Status: (Passed) 2015-08-10 - Public Act . . . . . . . . . 99-0335 [SB1608 Detail]
Download: Illinois-2015-SB1608-Enrolled.html
Bill Title: Amends the Uniform Penalty and Interest Act. Provides that provisions imposing a penalty of $100 for failure to file a transaction reporting return under the Retailers' Occupation Tax Act or the Use Tax Act apply only to transaction reporting returns that would not, when properly prepared and filed, result in the imposition of a tax (currently, those provisions apply regardless of whether a tax would be imposed). Provides that transaction reporting returns that would result in the imposition of a tax when properly prepared and filed are subject to the standard penalty for failure to file (2% of the tax required to be shown due on the return, up to a maximum amount of $250). Effective immediately.
Spectrum: Bipartisan Bill
Status: (Passed) 2015-08-10 - Public Act . . . . . . . . . 99-0335 [SB1608 Detail]
Download: Illinois-2015-SB1608-Enrolled.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by changing | ||||||
5 | Section 18-155 and by adding Section 18-156 as follows:
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6 | (35 ILCS 200/18-155)
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7 | Sec. 18-155. Apportionment of taxes for district in two or | ||||||
8 | more counties.
The burden of taxation of property in taxing | ||||||
9 | districts that lie in more than
one county shall be fairly | ||||||
10 | apportioned as provided in Article IX, Section 7, of
the | ||||||
11 | Constitution of 1970.
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12 | The Department may, and on written request made before July | ||||||
13 | 1 to the
Department shall, proceed to apportion the tax burden. | ||||||
14 | The request may be made
only by an assessor, chief county | ||||||
15 | assessment officer, Board of Review, Board of
Appeals, | ||||||
16 | overlapping taxing district or 25 or more interested taxpayers. | ||||||
17 | The
request shall specify one or more taxing districts in the | ||||||
18 | county which lie in
one or more other specified counties, and | ||||||
19 | also specify the civil townships, if
any, in which the | ||||||
20 | overlapping taxing districts lie. When the Department has
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21 | received a written request for equalization for overlapping tax | ||||||
22 | districts as
provided in this Section, the Department shall | ||||||
23 | promptly notify the county clerk
and county treasurer of each |
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1 | county affected by that request that tax bills
with respect to | ||||||
2 | property in the parts of the county which are affected by the
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3 | request may not be prepared or mailed until the Department | ||||||
4 | certifies the
apportionment among counties of the taxing | ||||||
5 | districts' levies, except as
provided in subsection (c) of this | ||||||
6 | Section. To apportion, the Department
shall:
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7 | (a) On or before December 31 of that year cause an | ||||||
8 | assessment ratio
study to be made in each township in which | ||||||
9 | each of the named overlapping
taxing districts lies, using | ||||||
10 | equalized assessed values as certified by the
county clerk, and | ||||||
11 | an analysis of property transfers prior to January 1 of
that | ||||||
12 | year. The property transfers shall be in an amount deemed | ||||||
13 | reasonable and
proper by the Department. The Department may | ||||||
14 | conduct hearings, at which the
evidence shall be limited to the | ||||||
15 | written presentation of assessment ratio study
data.
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16 | (b) Request from the County Clerk in each County in which | ||||||
17 | the overlapping
taxing districts lie, certification of the | ||||||
18 | portion of the assessed value of the
prior year for each | ||||||
19 | overlapping taxing
district's portion of each township. | ||||||
20 | Beginning with the 1999 taxable year, for
those counties that | ||||||
21 | classify property by
county ordinance pursuant to subsection | ||||||
22 | (b) of Section 4 of Article IX of the
Illinois Constitution, | ||||||
23 | the certification shall be listed by property class as
provided | ||||||
24 | in the classification ordinance. The clerk
shall return the | ||||||
25 | certification within 30 days of receipt of the request.
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26 | (c) Use the township assessment ratio studies to apportion |
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1 | the amount to be
raised by taxation upon property within the | ||||||
2 | district so that each county in
which the district lies bears | ||||||
3 | that burden of taxation as though all parts of
the overlapping | ||||||
4 | taxing district had been assessed at the same proportion of
| ||||||
5 | actual value. The Department shall certify to each County | ||||||
6 | Clerk, by March 15,
the percent of burden. Except as provided | ||||||
7 | below, the County Clerk shall apply
the percentage to the | ||||||
8 | extension as provided in Section 18-45 to determine the
amount | ||||||
9 | of tax to be raised in the county.
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10 | If the Department does not certify the percent of burden in | ||||||
11 | the time
prescribed, the county clerk shall use the most recent | ||||||
12 | prior certification to
determine the amount of tax to be raised | ||||||
13 | in the county.
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14 | If the use of a prior certified percentage results in over | ||||||
15 | or under extension
for the overlapping taxing district in the | ||||||
16 | county using same, the county clerk
shall make appropriate | ||||||
17 | adjustments in the subsequent year , except as provided by | ||||||
18 | Section 18-156 . Any adjustments
necessitated by the procedure | ||||||
19 | authorized by this Section shall be made by
increasing or | ||||||
20 | decreasing the tax extension by fund for each taxing district
| ||||||
21 | where a prior certified percentage was used. No tax rate limit | ||||||
22 | shall render any
part of a tax levy illegally excessive which | ||||||
23 | has been apportioned as herein
provided. The percentages | ||||||
24 | certified by the Department shall remain until
changed by | ||||||
25 | reason of another assessment ratio study made under this | ||||||
26 | Section.
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1 | To determine whether an overlapping district has met any | ||||||
2 | qualifying rate
prescribed by law for eligibility for State | ||||||
3 | aid, the tax rate of the district
shall be considered to be | ||||||
4 | that rate which would have produced the same amount
of revenue | ||||||
5 | had the taxes of the district been extended at a uniform rate
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6 | throughout the district, even if by application of this Section | ||||||
7 | the actual rate
of extension in a portion of the district is | ||||||
8 | less than the qualifying rate.
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9 | (Source: P.A. 90-594, eff. 6-24-98.)
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10 | (35 ILCS 200/18-156 new) | ||||||
11 | Sec. 18-156. Correction of apportionment of taxes for a | ||||||
12 | district in 2 or more counties. | ||||||
13 | (a) Definitions. For the purposes of this Section, these | ||||||
14 | definitions shall apply: | ||||||
15 | "Apportioned property tax levy" means the total property | ||||||
16 | tax extension of a taxing district in one or more counties that | ||||||
17 | has been apportioned by the Department pursuant to Section | ||||||
18 | 18-155. | ||||||
19 | "Over-apportionment" means that any single county's share | ||||||
20 | of an apportioned property tax levy is subsequently determined | ||||||
21 | to exceed 105% of what that county's share should have been. | ||||||
22 | (b) If, subsequent to the calculation of an apportioned | ||||||
23 | property tax levy, the Department determines that an | ||||||
24 | over-apportionment has taken place, the Department shall | ||||||
25 | notify the county clerk and county treasurer of each county |
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1 | affected by the incorrect apportionment and shall provide those | ||||||
2 | county clerks and county treasurers with correct apportionment | ||||||
3 | data. | ||||||
4 | (c) If the notification under this Section is made prior to | ||||||
5 | the due date of the final installment of property tax payments | ||||||
6 | for that taxable year, the county treasurer of a county where | ||||||
7 | an over-apportionment has taken place may, at the treasurer's | ||||||
8 | sole discretion, issue a refund of the over-apportioned amount | ||||||
9 | by either a reduced final installment, a refund of taxes paid, | ||||||
10 | or both, to each taxpayer who is entitled to a refund because | ||||||
11 | of the over-apportionment. Additionally, if the treasurer of | ||||||
12 | the county where an over-apportionment has taken place issues a | ||||||
13 | refund under this subsection, the county treasurer of each | ||||||
14 | other county affected by the incorrect apportionment shall | ||||||
15 | issue a corrected final installment or an additional bill for | ||||||
16 | the amount owed as a result of the under-apportionment of that | ||||||
17 | county's share of the property tax levy to each taxpayer whose | ||||||
18 | taxes were underpaid as a result of the apportionment error. | ||||||
19 | (d) Any refund issued under subsection (c) due to any | ||||||
20 | over-apportionment may be made from funds held by the county | ||||||
21 | treasurer for the specific taxing district that was the subject | ||||||
22 | of the over-apportionment; once those funds have been disbursed | ||||||
23 | to the taxing districts, the authority of the county treasurer | ||||||
24 | to issue refunds under subsection (c) ends. | ||||||
25 | (e) This Section applies for taxable year 2015 and | ||||||
26 | thereafter.
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1 | Section 10. The Uniform Penalty and Interest Act is amended | ||||||
2 | by changing Section 3-3 as follows:
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3 | (35 ILCS 735/3-3) (from Ch. 120, par. 2603-3)
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4 | Sec. 3-3. Penalty for failure to file or pay.
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5 | (a) This subsection (a) is applicable before January 1, | ||||||
6 | 1996. A penalty
of 5% of the tax required to be shown due on a | ||||||
7 | return shall be
imposed for failure to file the tax return on | ||||||
8 | or before the due date prescribed
for filing determined with | ||||||
9 | regard for any extension of time for filing
(penalty
for late | ||||||
10 | filing or nonfiling). If any unprocessable return is corrected | ||||||
11 | and
filed within 21 days after notice by the Department, the | ||||||
12 | late filing or
nonfiling penalty shall not apply. If a penalty | ||||||
13 | for late filing or nonfiling
is imposed in addition to a | ||||||
14 | penalty for late payment, the total penalty due
shall be the | ||||||
15 | sum of the late filing penalty and the applicable late payment
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16 | penalty.
Beginning on the effective date of this amendatory Act | ||||||
17 | of 1995, in the case
of any type of tax return required to be | ||||||
18 | filed more frequently
than annually, when the failure to file | ||||||
19 | the tax return on or before the
date prescribed for filing | ||||||
20 | (including any extensions) is shown to be
nonfraudulent and has | ||||||
21 | not occurred in the 2 years immediately preceding the
failure | ||||||
22 | to file on the prescribed due date, the penalty imposed by | ||||||
23 | Section
3-3(a) shall be abated.
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24 | (a-5) This subsection (a-5) is applicable to returns due on |
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1 | and after
January 1, 1996 and on or before December 31, 2000.
A | ||||||
2 | penalty equal to 2% of
the tax required to be shown due on a | ||||||
3 | return, up to a maximum amount of $250,
determined without | ||||||
4 | regard to any part of the tax that is paid on time or by any
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5 | credit that was properly allowable on the date the return was | ||||||
6 | required to be
filed, shall be
imposed for failure to file the | ||||||
7 | tax return on or before the due date prescribed
for filing | ||||||
8 | determined with regard for any extension of time for filing.
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9 | However, if any return is not filed within 30 days after notice | ||||||
10 | of nonfiling
mailed by the Department to the last known address | ||||||
11 | of the taxpayer contained in
Department records, an additional | ||||||
12 | penalty amount shall be imposed equal to the
greater of $250 or | ||||||
13 | 2% of the tax shown on the return. However, the additional
| ||||||
14 | penalty amount may not exceed $5,000 and is determined without | ||||||
15 | regard to any
part of the tax that is paid on time or by any | ||||||
16 | credit that was properly
allowable on the date the return was | ||||||
17 | required to be filed (penalty
for late filing or nonfiling). If | ||||||
18 | any unprocessable return is corrected and
filed within 30 days | ||||||
19 | after notice by the Department, the late filing or
nonfiling | ||||||
20 | penalty shall not apply. If a penalty for late filing or | ||||||
21 | nonfiling
is imposed in addition to a penalty for late payment, | ||||||
22 | the total penalty due
shall be the sum of the late filing | ||||||
23 | penalty and the applicable late payment
penalty.
In the case of | ||||||
24 | any type of tax return required to be filed more frequently
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25 | than annually, when the failure to file the tax return on or | ||||||
26 | before the
date prescribed for filing (including any |
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1 | extensions) is shown to be
nonfraudulent and has not occurred | ||||||
2 | in the 2 years immediately preceding the
failure to file on the | ||||||
3 | prescribed due date, the penalty imposed by Section
3-3(a-5) | ||||||
4 | shall be abated.
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5 | (a-10) This subsection (a-10) is applicable to returns due | ||||||
6 | on and after
January 1, 2001.
A penalty equal to 2% of
the tax | ||||||
7 | required to be shown due on a return, up to a maximum amount of | ||||||
8 | $250,
reduced by any tax that is
paid on time or by any
credit | ||||||
9 | that was properly allowable on the date the return was required | ||||||
10 | to be
filed, shall be
imposed for failure to file the tax | ||||||
11 | return on or before the due date prescribed
for filing | ||||||
12 | determined with regard for any extension of time for filing.
| ||||||
13 | However, if any return is not filed within 30 days after notice | ||||||
14 | of nonfiling
mailed by the Department to the last known address | ||||||
15 | of the taxpayer contained in
Department records, an additional | ||||||
16 | penalty amount shall be imposed equal to the
greater of $250 or | ||||||
17 | 2% of the tax shown on the return. However, the additional
| ||||||
18 | penalty amount may not exceed $5,000 and is determined without | ||||||
19 | regard to any
part of the tax that is paid on time or by any | ||||||
20 | credit that was properly
allowable on the date the return was | ||||||
21 | required to be filed (penalty
for late filing or nonfiling). If | ||||||
22 | any unprocessable return is corrected and
filed within 30 days | ||||||
23 | after notice by the Department, the late filing or
nonfiling | ||||||
24 | penalty shall not apply. If a penalty for late filing or | ||||||
25 | nonfiling
is imposed in addition to a penalty for late payment, | ||||||
26 | the total penalty due
shall be the sum of the late filing |
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1 | penalty and the applicable late payment
penalty.
In the case of | ||||||
2 | any type of tax return required to be filed more frequently
| ||||||
3 | than annually, when the failure to file the tax return on or | ||||||
4 | before the
date prescribed for filing (including any | ||||||
5 | extensions) is shown to be
nonfraudulent and has not occurred | ||||||
6 | in the 2 years immediately preceding the
failure to file on the | ||||||
7 | prescribed due date, the penalty imposed by this subsection | ||||||
8 | (a-10) Section
3-3(a-10) shall be abated. This subsection | ||||||
9 | (a-10) does not apply to transaction reporting returns required | ||||||
10 | by Section 3 of the Retailers' Occupation Tax Act and Section 9 | ||||||
11 | of the Use Tax Act that would not, when properly prepared and | ||||||
12 | filed, result in the imposition of a tax; however, those | ||||||
13 | returns are subject to the penalty set forth in subsection | ||||||
14 | (a-15).
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15 | (a-15) A In addition to any other penalties imposed by law | ||||||
16 | for the failure to file a return, a penalty of $100 shall be | ||||||
17 | imposed for failure to file a transaction reporting return | ||||||
18 | required by Section 3 of the Retailers' Occupation Tax Act and | ||||||
19 | Section 9 of the Use Tax Act on or before the date a return is | ||||||
20 | required to be filed ; provided, however, that this . This | ||||||
21 | penalty shall be imposed only if regardless of whether the | ||||||
22 | return when properly prepared and filed would not result in the | ||||||
23 | imposition of a tax. If such a transaction reporting return | ||||||
24 | would result in the imposition of a tax when properly prepared | ||||||
25 | and filed, then that return is subject to the provisions of | ||||||
26 | subsection (a-10). |
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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
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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.
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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 |
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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 |
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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 |
| |||||||
| |||||||
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 |
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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 |
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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. 98-425, eff. 8-16-13.)
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21 | Section 99. Effective date. This Act takes effect upon | ||||||
22 | becoming law.
|