HB5919 103RD GENERAL ASSEMBLY

LRB103 42423 HLH 75653 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5919

Introduced , by Rep. Janet Yang Rohr

SYNOPSIS AS INTRODUCED:

35 ILCS 5/502.2 new

Amends the Illinois Income Tax Act. Provides that it is unlawful for an income tax return preparer or a software company to charge a separate fee for the electronic filing of returns under the Act. Provides that it is unlawful for a software company to offer for sale a version of its tax software that charges a separate fee for the electronic filing of returns under the Act and a version of the same tax software that does not. Sets forth penalties for violations of the provisions of the amendatory Act.

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 adding Section 502.2 as follows:

(35 ILCS 5/502.2 new)

Sec. 502.2. Fees for electronic filing prohibited.

(a) It shall be unlawful for an income tax return preparer or a software company to charge a separate fee for the electronic filing of returns under this Act. It shall also be unlawful for a software company to offer for sale a version of its tax software that charges a separate fee for the electronic filing of returns under this Act and a version of the same tax software that does not.

(b) Any income tax return preparer or software company that violates this Section is liable for a civil penalty of $500 for the first violation and $1,000 for each succeeding violation. Each fee that is charged on or after the effective date of this amendatory Act of the 103rd General Assembly in violation of this Section by an income tax return preparer and each fee that is charged in violation of this Section through the use of tax software that is offered for sale on or after the effective date of this amendatory Act of the 103rd General Assembly by a software company shall constitute a separate violation. The civil penalties imposed by this Section shall be paid to the Department upon notice and demand and shall be assessed, collected, and paid in the same manner as taxes under this Act.

(c) All final administrative decisions of the Department under this Section shall be subject to judicial review pursuant to the provisions of the Administrative Review Law. Proceedings for judicial review shall be commenced in the circuit court of the county in which the party applying for review resides, except that, if the party is not a resident of this State, the venue shall be in Sangamon County or Cook County.

(d) As used in this Section:

"Administrative decision" has the meaning given to that term in Section 3-101 of the Code of Civil Procedure.

"Income tax return preparer" has the meaning given to that term in Section 1501.

"Software company" means a developer of tax software.

"Tax software" means any computer software program intended for tax return preparation purposes, including, but not limited to, an off-the-shelf software program loaded onto a tax return preparer's or taxpayer's computer or an online tax preparation application.