100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2631

 

Introduced , by Rep. Margo McDermed

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 735/3-5  from Ch. 120, par. 2603-5

    Amends the Uniform Penalty and Interest Act. In a Section concerning penalties for negligence, provides that no penalty shall be imposed if the taxpayer is a business with fewer than 50 employees and the deficit in the audit is not more than 1%. Effective immediately.


LRB100 08286 HLH 18388 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2631LRB100 08286 HLH 18388 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Uniform Penalty and Interest Act is amended
5by changing Section 3-5 as follows:
 
6    (35 ILCS 735/3-5)  (from Ch. 120, par. 2603-5)
7    Sec. 3-5. Penalty for negligence.
8    (a) If any return or amended return is prepared
9negligently, but without intent to defraud, and filed, in
10addition to any penalty imposed under Section 3-3 of this Act,
11a penalty shall be imposed in an amount equal to 20% of any
12resulting deficiency.
13    (b) Negligence includes any failure to make a reasonable
14attempt to comply with the provisions of any tax Act and
15includes careless, reckless, or intentional disregard of the
16law or regulations.
17    (c) No penalty shall be imposed under this Section if it is
18shown that failure to comply with the tax Act is due to
19reasonable cause. A taxpayer is not negligent if the taxpayer
20shows substantial authority to support the return as filed.
21    (c-5) No penalty shall be imposed under this Section if the
22taxpayer is a business with fewer than 50 employees and the
23deficit in the audit is not more than 1%.

 

 

HB2631- 2 -LRB100 08286 HLH 18388 b

1    (d) If a taxpayer has a tax liability for the taxable
2period ending after June 30, 1983 and prior to July 1, 2002
3that is eligible for amnesty under the Tax Delinquency Amnesty
4Act and the taxpayer fails to satisfy the tax liability during
5the amnesty period provided for in that Act for that taxable
6period, then the penalty imposed by the Department shall be
7imposed in an amount that is 200% of the amount that would
8otherwise be imposed in accordance with this Section.
9    (e) If a taxpayer has a tax liability for the taxable
10period ending after June 30, 2002 and prior to July 1, 2009
11that is eligible for amnesty under the Tax Delinquency Amnesty
12Act, except for any tax liability reported pursuant to Section
13506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)) that
14is not final, and the taxpayer fails to satisfy the tax
15liability during the amnesty period provided for in that Act
16for that taxable period, then the penalty imposed by the
17Department under this Section shall be imposed in an amount
18that is 200% of the amount that would otherwise be imposed
19under this Section.
20(Source: P.A. 96-1435, eff. 8-16-10.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.