Full Text of SB2612 98th General Assembly
SB2612ham001 98TH GENERAL ASSEMBLY | Rep. Barbara Flynn Currie Filed: 5/21/2014
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| 1 | | AMENDMENT TO SENATE BILL 2612
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2612 immediately | 3 | | below the enacting clause, by inserting the following:
| 4 | | "Section 3. The Department of Revenue Law of the
Civil | 5 | | Administrative Code of Illinois is amended by changing Section | 6 | | 2505-190 and by adding Section 2505-180 as follows: | 7 | | (20 ILCS 2505/2505-180 new) | 8 | | Sec. 2505-180. Private letter rulings. | 9 | | (a) The Department shall, subject to the provisions of this | 10 | | Section and rules adopted by the Department, issue private | 11 | | letter rulings in response to written taxpayer inquiries | 12 | | received after December 31, 2014, concerning the application of | 13 | | a tax statute or rule to a specific fact situation. | 14 | | The Department shall respond to a request for a private | 15 | | letter ruling within 120 days of the date of receipt of the | 16 | | request by issuing a private letter ruling, issuing a letter |
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| 1 | | that declines the request for private letter ruling, or issuing | 2 | | a general information letter. If the Department declines a | 3 | | request for a private letter ruling, the Department must | 4 | | provide the person requesting the ruling the specific reason | 5 | | for the denial. If the Department requests additional | 6 | | information and the taxpayer fails to provide the additional | 7 | | information within 30 days, unless extended by agreement, the | 8 | | private letter ruling request shall be deemed to be withdrawn. | 9 | | If the Department requests additional information, the 120-day | 10 | | period shall be tolled until the additional information is | 11 | | provided by the taxpayer. Each 120-day period may be extended | 12 | | by agreement with the person making the request for a private | 13 | | letter ruling. | 14 | | Each request for a private letter ruling shall be verified | 15 | | by a written declaration that it is made under the penalty of | 16 | | perjury. The request must be signed by the taxpayer or a person | 17 | | authorized to sign on behalf of the taxpayer. | 18 | | (b) A private letter ruling request may not be withdrawn by | 19 | | the taxpayer after the Department has completed its review of | 20 | | the request and is prepared to issue a negative ruling, unless | 21 | | agreed to by the Department. | 22 | | (c) A private letter ruling shall be binding on the | 23 | | Department only as to the taxpayer who is the subject of the | 24 | | request for a ruling, and only if the request contained no | 25 | | omission or misstatement of material fact. A private letter | 26 | | ruling shall cease to bind the Department if there is a |
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| 1 | | pertinent change in statutory law, case law, rules, or material | 2 | | facts. Every private letter ruling is revoked on the date that | 3 | | is 10 years after the date of issuance of the ruling, unless | 4 | | the taxpayer is otherwise notified in writing of an earlier | 5 | | date by the Department.
| 6 | | (20 ILCS 2505/2505-190) (was 20 ILCS 2505/39c-4)
| 7 | | Sec. 2505-190. Tax Compliance and Administration Fund. | 8 | | (a) Amounts
deposited into the Tax Compliance and
| 9 | | Administration Fund, a special fund in the State treasury that | 10 | | is hereby
created, must be appropriated to the Department to
| 11 | | reimburse the Department for its costs of collecting, | 12 | | administering, and
enforcing the tax laws that provide for | 13 | | deposits into the Fund.
| 14 | | (b) As soon as possible after July 1, 2015, and as soon as | 15 | | possible after each July 1 thereafter, the Director of the | 16 | | Department of Revenue shall certify the balance in the Tax | 17 | | Compliance and Administration Fund as of July 1, less any | 18 | | amounts obligated, and the State Comptroller shall order | 19 | | transferred and the State Treasurer shall transfer from the Tax | 20 | | Compliance and Administration Fund to the General Revenue Fund | 21 | | the amount certified that exceeds $2,500,000. | 22 | | (Source: P.A. 91-239, eff. 1-1-00.)"; and
| 23 | | on page 3, line 10, by replacing " 5% " with " 6% "; and |
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| 1 | | on page 3, line 21, after " Revenue ", by inserting " , in | 2 | | addition to legal staff to assist with implementation of the | 3 | | Department's responsibilities under Section 2505-180 of the | 4 | | Department of Revenue Law of the
Civil Administrative Code of | 5 | | Illinois "; and | 6 | | on page 15, line 2, after " Department, ", by inserting " in | 7 | | addition to legal staff to assist with implementation of the | 8 | | Department's responsibilities under Section 2505-180 of the | 9 | | Department of Revenue Law of the
Civil Administrative Code of | 10 | | Illinois, "; and | 11 | | on page 15, line 3, by replacing " 5% " with " 6% "; and | 12 | | on page 40, line 7, after " Revenue, ", by inserting " in addition | 13 | | to legal staff to assist with implementation of the | 14 | | Department's responsibilities under Section 2505-180 of the | 15 | | Department of Revenue Law of the
Civil Administrative Code of | 16 | | Illinois, "; and | 17 | | on page 40, line 7, by replacing " 5% " with " 6% "; and | 18 | | on page 55, line 20, after " Revenue, ", by inserting " in | 19 | | addition to legal staff to assist with implementation of the | 20 | | Department's responsibilities under Section 2505-180 of the | 21 | | Department of Revenue Law of the
Civil Administrative Code of |
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| 1 | | Illinois, "; and | 2 | | on page 55, line 20, by replacing " 5% " with " 6% "; and | 3 | | on page 71, line 21, after " Revenue, ", by inserting " in | 4 | | addition to legal staff to assist with implementation of the | 5 | | Department's responsibilities under Section 2505-180 of the | 6 | | Department of Revenue Law of the
Civil Administrative Code of | 7 | | Illinois, "; and | 8 | | on page 71, line 21, by replacing " 5% " with " 6% "; and | 9 | | on page 106, line 2, after " Revenue, ", by inserting " in | 10 | | addition to legal staff to assist with implementation of the | 11 | | Department's responsibilities under Section 2505-180 of the | 12 | | Department of Revenue Law of the
Civil Administrative Code of | 13 | | Illinois, "; and | 14 | | on page 106, line 2, by replacing " 5% " with " 6% "; and | 15 | | on page 114, line 22, by replacing " 5% " with " 6% "; and | 16 | | on page 115, line 3, after " Revenue ", by inserting " , in | 17 | | addition to legal staff to assist with implementation of the | 18 | | Department's responsibilities under Section 2505-180 of the | 19 | | Department of Revenue Law of the
Civil Administrative Code of |
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| 1 | | Illinois "; and | 2 | | on page 116, line 21, by replacing " 5% " with " 6% "; and | 3 | | on page 117, line 2, after " Revenue ", by inserting " , in | 4 | | addition to legal staff to assist with implementation of the | 5 | | Department's responsibilities under Section 2505-180 of the | 6 | | Department of Revenue Law of the
Civil Administrative Code of | 7 | | Illinois "; and | 8 | | on page 117, immediately below line 5, by inserting the | 9 | | following: | 10 | | "Section 45. The Uniform Penalty and Interest Act is | 11 | | amended by changing Sections 3-6 and 3-8 as follows:
| 12 | | (35 ILCS 735/3-6) (from Ch. 120, par. 2603-6)
| 13 | | Sec. 3-6. Penalty for fraud.
| 14 | | (a) If any return or amended return is filed with intent to | 15 | | defraud, in
addition to any penalty imposed under Section 3-3 | 16 | | of this Act, a penalty
shall be imposed in an amount equal to | 17 | | 50% of any resulting deficiency.
| 18 | | (b) If any claim is filed with intent to defraud, a penalty | 19 | | shall be
imposed in an amount equal to 50% of the amount | 20 | | fraudulently claimed for
credit or refund.
| 21 | | (c) If a taxpayer has a tax liability for the taxable |
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| 1 | | period ending after June 30,
1983 and prior to July 1, 2002 | 2 | | that is eligible for amnesty under
the Tax Delinquency Amnesty | 3 | | Act and the taxpayer fails to satisfy the tax
liability during | 4 | | the amnesty period provided for in that Act for that taxable | 5 | | period, then the penalty
imposed by the Department under this | 6 | | Section shall be imposed in an amount that
is 200% of the | 7 | | amount that would otherwise be imposed under this Section.
| 8 | | (d) If a taxpayer has a tax liability for the taxable | 9 | | period ending after June 30, 2002 and prior to July 1, 2009 | 10 | | that is eligible for amnesty under the
Tax Delinquency Amnesty | 11 | | Act, except for any tax liability reported pursuant to Section | 12 | | 506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)) that | 13 | | is not final, and the taxpayer fails to satisfy the tax | 14 | | liability
during the amnesty period provided for in that Act | 15 | | for that taxable period, then the penalty imposed by
the | 16 | | Department under this Section shall be imposed in an amount | 17 | | that is 200% of
the amount that would otherwise be imposed | 18 | | under this Section. | 19 | | (e) Notwithstanding any other provision of this Act, if a | 20 | | taxpayer files a return or an amended return based on a private | 21 | | letter ruling issued by the Department under Section 2505-180 | 22 | | of the Department of Revenue Law of the Civil Administrative | 23 | | Code of Illinois, and it is later determined that the | 24 | | information provided by the taxpayer to the Department related | 25 | | to the issuance of that private letter ruling contained | 26 | | intentional misstatements of fact or omissions of fact capable |
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| 1 | | of influencing the outcome of the Department's private letter | 2 | | ruling, the taxpayer shall be subject to the penalty imposed by | 3 | | subsection (a) of this Section. | 4 | | (Source: P.A. 96-1435, eff. 8-16-10.)
| 5 | | (35 ILCS 735/3-8) (from Ch. 120, par. 2603-8)
| 6 | | Sec. 3-8. No penalties if reasonable cause exists. The | 7 | | penalties imposed
under the provisions of Sections 3-3, 3-4, | 8 | | 3-5, and 3-7.5
of this Act shall not apply if the taxpayer | 9 | | shows that his failure to file a
return or pay tax at the
| 10 | | required time was due to reasonable cause. Reasonable cause | 11 | | shall be
determined in each situation in accordance with the | 12 | | rules and regulations
promulgated by the Department. A taxpayer | 13 | | may protest the imposition of a
penalty under Section 3-3, 3-4, | 14 | | 3-5, or 3-7.5 on the basis
of reasonable cause without
| 15 | | protesting the underlying tax liability. If a taxpayer requests | 16 | | a private letter ruling under Section 2505-180 of the | 17 | | Department of Revenue Law of the Civil Administrative Code of | 18 | | Illinois, and the Department does not issue the private letter | 19 | | ruling, a letter that declines the request for private letter | 20 | | ruling, or a general information letter within 120 days of | 21 | | receipt of the request by the Department, or within an extended | 22 | | time period as provided under subsection (a) of Section | 23 | | 2505-180 of the Department of Revenue Law of the Civil | 24 | | Administrative Code of Illinois, then the taxpayer shall be | 25 | | deemed to have reasonable cause for any delinquency with regard |
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| 1 | | to an issue that was the subject of its ruling request that | 2 | | occurs after the 120th day after the receipt of the request (or | 3 | | after the expiration of the extended time period as provided | 4 | | under subsection (a) of Section 2505-180 of the Department of | 5 | | Revenue Law of the Civil Administrative Code of Illinois, if | 6 | | applicable) and prior to the date the taxpayer receives the | 7 | | private letter ruling, a letter that declines the request for | 8 | | private letter ruling, or a general information letter. The | 9 | | person requesting the private letter ruling shall have no | 10 | | additional remedies against the Department for failing to issue | 11 | | or timely issue a requested private letter ruling.
| 12 | | (Source: P.A. 91-803, eff. 1-1-01.)".
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