Section 700.320  Penalty for Negligence

a)         If  any return or amended return is  prepared negligently, but without intent to defraud, and filed, in addition to any penalty imposed under Section 3-3 of this Act, a penalty shall be imposed in an amount equal to 20% of any resulting deficiency.

b)         Negligence includes any failure to make a reasonable attempt to comply with the provisions  of any tax Act and includes careless, reckless, or intentional disregard of the law or rules. (Section 3-5 of the Act)

c)         Penalty for negligence shall not apply where an assessment results from a reasonable difference of opinion as to taxability.  (Section 3-5 of the Act) A reasonable difference as to taxability may be established by evidence that shows that the issue in dispute between the taxpayer and the Department is:

1)         not resolved by the plain language of the statute;

2)         an issue about which the Department has not adopted a rule of general applicability;

3)         an issue about which the Illinois Supreme Court has not ruled and there are inconsistent opinions of the Illinois Appellate Courts.