State of Illinois
2013 and 2014


Introduced 1/23/2013, by Sen. John J. Cullerton


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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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 Illinois Income Tax Act is amended by
5changing Section 501 as follows:
6    (35 ILCS 5/501)  (from Ch. 120, par. 5-501)
7    Sec. 501. Notice or Regulations Requiring Records,
8Statements and Special Returns.
9    (a) In general. Every person liable for any tax imposed by
10this Act shall keep such records, render such statements, make
11such returns and and notices, and comply with such rules and
12regulations as the Department may from time to time prescribe.
13Whenever in the judgment of the Director it is necessary, he
14may require any person, by notice served upon such person or by
15regulations, to make such returns and notices, render such
16statements, or keep such records, as the Director deems
17sufficient to show whether or not such person is liable for tax
18under this Act.
19    (b) Reportable transactions. For each taxable year in which
20a taxpayer is required to make a disclosure statement under
21Treasury Regulations Section 1.6011-4 (26 CFR 1.6011-4)
22(including any taxpayer that is a member of a consolidated
23group required to make such disclosure) with respect to a



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1reportable transaction (including a listed transaction) in
2which the taxpayer participated in a taxable year for which a
3return is required under Section 502 of this Act, such taxpayer
4shall file a copy of such disclosure with the Department.
5Disclosure under this subsection is required to be made by any
6taxpayer that is a member of a unitary business group that
7includes any person required to make a disclosure statement
8under Treasury Regulations Section 1.6011-4. Disclosure under
9this subsection is required with respect to any transaction
10entered into after February 28, 2000 that becomes a listed
11transaction at any time, and shall be made in the manner
12prescribed by the Department. With respect to transactions in
13which the taxpayer participated for taxable years ending before
14December 31, 2004, disclosure shall be made by the due date
15(including extensions) of the first return required under
16Section 502 of this Act due after the effective date of this
17amendatory Act of the 93rd General Assembly. With respect to
18transactions in which the taxpayer participated for taxable
19years ending on and after December 31, 2004, disclosure shall
20be made in the time and manner prescribed in Treasury
21Regulations Section 1.6011-4(e). Notwithstanding the above, no
22disclosure is required for transactions entered into after
23February 28, 2000 and before January 1, 2005 (i) if the
24taxpayer has filed an amended Illinois income tax return which
25reverses the tax benefits of the potential tax avoidance
26transaction, or (ii) as a result of a federal audit the



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1Internal Revenue Service has determined the tax treatment of
2the transaction and an Illinois amended return has been filed
3to reflect the federal treatment.
4(Source: P.A. 93-840, eff. 7-30-04.)