HB5554 99TH GENERAL ASSEMBLY

LRB099 18715 HLH 43099 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB5554

Introduced , by Rep. Mark Batinick

SYNOPSIS AS INTRODUCED:

20 ILCS 2510/2510-3
20 ILCS 2510/2510-5
20 ILCS 2510/2510-10
20 ILCS 2510/2510-30

Amends the Certified Audit Program Law of the Civil Administrative Code of Illinois. Extends the certification program to all experienced tax practitioners. Provides that the term "experienced tax practitioner" means an Illinois-licensed certified public accountant, an Illinois-licensed attorney, or an enrolled agent licensed for a minimum of 8 years with substantial knowledge of Illinois tax laws and regulations. Reinstates the certified audit pilot project and extends it until July 1, 2020.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

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

Section 5. The Certified Audit Program Law of the Civil Administrative Code of Illinois is amended by changing Sections 2510-3, 2510-5, 2510-10, and 2510-30 as follows:

(20 ILCS 2510/2510-3)

Sec. 2510-3. Findings. The General Assembly finds that:

(1) Voluntary compliance is the cornerstone of an effective tax system.

(2) Despite attempts by the General Assembly, State taxes are not simple.

(3) Even the most diligent taxpayers through mistake or inadvertence may not pay all taxes due.

(4) The Illinois Department of Revenue lacks the resources to audit the compliance of all taxpayers.

(5) Experienced tax practitioners Illinois certified public accountants provide valuable advice and assistance to Illinois taxpayers on State tax issues.

(6) A pilot program establishing a partnership between taxpayers, experienced tax practitioners Illinois certified public accountants, and the Illinois Department of Revenue will provide guidance to taxpayers and enhance voluntary compliance.

(Source: P.A. 92-456, eff. 8-21-01.)

(20 ILCS 2510/2510-5)

Sec. 2510-5. Definitions. As used in this Article:

"Certification program" means an instructional curriculum, examination, and process for certification, recertification, and revocation of certification of certified public accountants that is administered by the Department, the Illinois CPA Society, the Illinois State Bar Association, or other similar organization, and that is officially approved by the Department to ensure that a certified public accountant, attorney, or other experienced tax practitioner possesses the necessary skills and abilities to successfully perform an attestation engagement for tax compliance review in a certified audit project.

"Department" means the Illinois Department of Revenue.

"Experienced tax practitioner" means an Illinois-licensed certified public accountant, an Illinois-licensed attorney, or an enrolled agent licensed for a minimum of 8 years with substantial knowledge of Illinois tax laws and regulations.

"Participating taxpayer" means any person subject to the revenue laws administered by the Department who enters into an engagement with a qualified practitioner for tax compliance review and who is approved by the Department under the certified audit project.

"Qualified practitioner" means an experienced tax practitioner a certified public accountant who is licensed to practice in Illinois and who has completed the certification program. The phrase "completed the certification program" means the participant has met all requirements for the certified audit training course, achieved the required score on the certification test as approved by the Department, and has been certified by the Department.

(Source: P.A. 92-456, eff. 8-21-01.)

(20 ILCS 2510/2510-10)

Sec. 2510-10. Certified audit project.

(a) Subject to appropriation, the Department shall is authorized to initiate a certified audit pilot project to further enhance tax compliance reviews performed by qualified practitioners and to encourage taxpayers to hire qualified practitioners at their own expense to review and report on their sales tax and use tax compliance. The nature of the certified audit work performed by qualified practitioners shall be agreed-upon procedures in which the Department is the specified user of the resulting report.

(b) As an incentive for taxpayers to incur the costs of a certified audit, the Department shall abate penalties and interest due on any tax liabilities revealed by a certified audit, except that this authority to abate penalties or interest shall not apply to any liability for taxes that were collected by the participating taxpayer but not remitted to the Department nor shall the Department have the authority to abate fraud penalties.

(c) The certified audit pilot project shall apply only to occupation and use taxes administered and collected by the Department.

(d) The certified audit pilot project shall not extend beyond July 1, 2020 July 1, 2004.

(Source: P.A. 92-456, eff. 8-21-01.)

(20 ILCS 2510/2510-30)

Sec. 2510-30. Rules. To implement the certified audit project, the Department shall have authority to adopt rules no later than 180 days after the effective date of this amendatory Act of the 99th General Assembly, including, but not limited to:

(1) The scope and availability of the certification program required for participation in the project;

(2) The requirements and basis for establishing just cause for approval or rejection of participation by taxpayers;

(3) Procedures for assessment, collection, and payment of liabilities or refund of overpayments and provisions for taxpayers to obtain informal and formal review of certified audit results;

(4) The nature, frequency, and basis for the Department's review of certified audits conducted by qualified practitioners, including the requirements for documentation, work-paper retention and access, and reporting; and

(5) Requirements for conducting certified audits and for review of agreed-upon procedures.

(Source: P.A. 92-456, eff. 8-21-01.)