HB4511 104TH GENERAL ASSEMBLY

LRB104 16361 HLH 29748 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4511

Introduced 1/26/2026, by Rep. Joe C. Sosnowski

SYNOPSIS AS INTRODUCED:

35 ILCS 5/1101

from Ch. 120, par. 11-1101

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.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by changing Section 1101 as follows:

(35 ILCS 5/1101) (from Ch. 120, par. 11-1101)

Sec. 1101. Lien for Tax.

(a) If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the State of Illinois upon all property and rights to property, whether real or personal, belonging to such person.

(b) Unless another date is specifically fixed by law, the lien imposed by subsection (a) of this Section shall arise at the time the assessment is made and shall continue until the liability for the amount so assessed (or a judgment against the taxpayer arising out of such liability) is satisfied or becomes unenforceable by reason of lapse of time.

(c) Deficiency procedure. If the lien arises from an assessment pursuant to a notice of deficiency, such lien shall not attach and the notice referred to in this Section shall not be filed until all proceedings in court for review of such assessment have terminated or the time for the taking thereof has expired without such proceedings being instituted. If a late discretionary hearing has been granted pursuant to subsection (d) of Section 908 of this Act after a lien has attached, that 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.

(d) Notice of lien. The lien created by assessment shall terminate unless a notice of lien is filed, as provided in Section 1103 hereof, within 3 years from the date all proceedings in court for the review of such assessment have terminated or the time for the taking thereof has expired without such proceedings being instituted. Where the lien results from the filing of a return without payment of the tax or penalty shown therein to be due, the lien shall terminate unless a notice of lien is filed within 3 years from the date such return was filed with the Department. For the purposes of this subsection (d), a tax return filed before the last day prescribed by law, including any extension thereof, shall be deemed to have been filed on such last day. The time limitation period on the Department's right to file a notice of lien shall not run (1) during any period of time in which the order of any court has the effect of enjoining or restraining the Department from filing such notice of lien, or (2) during the term of a repayment plan that taxpayer has entered into with the Department, as long as taxpayer remains in compliance with the terms of the repayment plan.

(Source: P.A. 97-507, eff. 8-23-11; 98-446, eff. 8-16-13.)

Section 99. Effective date. This Act takes effect upon becoming law.