96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB1870


 
Introduced 2/20/2009, by Sen. Dan Kotowski
 
SYNOPSIS AS INTRODUCED:
 		













35 ILCS 5/501
  from Ch. 120, par. 5-501








    Amends the Illinois Income Tax Act.  Makes a technical change in a Section
concerning notices or regulations requiring records, statements, and special reports.
















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A BILL FOR









 











SB1870

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    AN ACT concerning revenue.

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

 
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    Section 5. The Illinois Income Tax Act is amended by 
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changing Section 501 as follows:
 



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    (35 ILCS 5/501)  (from Ch. 120, par. 5-501)



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    Sec. 501. Notice
or Regulations Requiring Records, 
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Statements and Special Returns.

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    (a) In general. Every person liable for any tax imposed by 
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this Act shall keep such
records, render such statements, make 
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such returns and
and notices, and comply
with such rules and 
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regulations as the Department may from time to time
prescribe. 
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Whenever in the judgment of the Director it is necessary, he 
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may
require any person, by notice served upon such person or by 
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regulations, to
make such returns and notices, render such 
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statements, or keep such
records, as the Director deems 
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sufficient to show whether or not such
person is liable for tax 
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under this Act.
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    (b) Reportable transactions. For each taxable year in which 
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a taxpayer is required to make a disclosure statement under 
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Treasury Regulations Section 1.6011-4 (26 CFR 1.6011-4) 
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(including any taxpayer that is a member of a consolidated 
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group required to make such disclosure) with respect to a 
 


 






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reportable transaction (including a listed transaction) in 
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which the taxpayer participated in a taxable year for which a 
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return is required under Section 502 of this Act, such taxpayer 
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shall file a copy of such disclosure with the Department. 
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Disclosure under this subsection is required to be made by any 
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taxpayer that is a member of a unitary business group that 
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includes any person required to make a disclosure statement 
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under Treasury Regulations Section 1.6011-4. Disclosure under 
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this subsection is required with respect to any transaction 
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entered into after February 28, 2000 that becomes a listed 
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transaction at any time, and shall be made in the manner 
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prescribed by the Department. With respect to transactions in 
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which the taxpayer participated for taxable years ending before 
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December 31, 2004, disclosure shall be made by the due date 
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(including extensions) of the first return required under 
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Section 502 of this Act due after the effective date of this 
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amendatory Act of the 93rd General Assembly. With respect to 
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transactions in which the taxpayer participated for taxable 
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years ending on and after December 31, 2004, disclosure shall 
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be made in the time and manner prescribed in Treasury 
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Regulations Section 1.6011-4(e). Notwithstanding the above, no 
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disclosure is required for transactions entered into after 
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February 28, 2000 and before January 1, 2005 (i) if the 
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taxpayer has filed an amended Illinois income tax return which 
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reverses the tax benefits of the potential tax avoidance 
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transaction, or (ii) as a result of a federal audit the 
 


 






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Internal Revenue Service has determined the tax treatment of 
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the transaction and an Illinois amended return has been filed 
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to reflect the federal treatment.
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(Source: P.A. 93-840, eff. 7-30-04.)