HB4639ham001 102ND GENERAL ASSEMBLY

Rep. Jay Hoffman

Filed: 2/18/2022

 

 


 

 


 
10200HB4639ham001LRB102 23835 RJT 36347 a

1
AMENDMENT TO HOUSE BILL 4639

2    AMENDMENT NO. ______. Amend House Bill 4639 on page 1,
3immediately below line 3, by inserting the following:
 
4    "Section 5. The Illinois Income Tax Act is amended by
5changing Section 917 as follows:
 
6    (35 ILCS 5/917)  (from Ch. 120, par. 9-917)
7    Sec. 917. Confidentiality and information sharing.
8    (a) Confidentiality. Except as provided in this Section,
9all information received by the Department from returns filed
10under this Act, or from any investigation conducted under the
11provisions of this Act, shall be confidential, except for
12official purposes within the Department or pursuant to
13official procedures for collection of any State tax or
14pursuant to an investigation or audit by the Illinois State
15Scholarship Commission of a delinquent student loan or
16monetary award or enforcement of any civil or criminal penalty

 

 

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1or sanction imposed by this Act or by another statute imposing
2a State tax, and any person who divulges any such information
3in any manner, except for such purposes and pursuant to order
4of the Director or in accordance with a proper judicial order,
5shall be guilty of a Class A misdemeanor. However, the
6provisions of this paragraph are not applicable to information
7furnished to (i) the Department of Healthcare and Family
8Services (formerly Department of Public Aid), State's
9Attorneys, and the Attorney General for child support
10enforcement purposes and (ii) a licensed attorney representing
11the taxpayer where an appeal or a protest has been filed on
12behalf of the taxpayer. If it is necessary to file information
13obtained pursuant to this Act in a child support enforcement
14proceeding, the information shall be filed under seal. The
15furnishing upon request of the Auditor General, or his or her
16authorized agents, for official use of returns filed and
17information related thereto under this Act is deemed to be an
18official purpose within the Department within the meaning of
19this Section.
20    (b) Public information. Nothing contained in this Act
21shall prevent the Director from publishing or making available
22to the public the names and addresses of persons filing
23returns under this Act, or from publishing or making available
24reasonable statistics concerning the operation of the tax
25wherein the contents of returns are grouped into aggregates in
26such a way that the information contained in any individual

 

 

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1return shall not be disclosed.
2    (c) Governmental agencies. The Director may make available
3to the Secretary of the Treasury of the United States or his
4delegate, or the proper officer or his delegate of any other
5state imposing a tax upon or measured by income, for
6exclusively official purposes, information received by the
7Department in the administration of this Act, but such
8permission shall be granted only if the United States or such
9other state, as the case may be, grants the Department
10substantially similar privileges. The Director may exchange
11information with the Department of Healthcare and Family
12Services and the Department of Human Services (acting as
13successor to the Department of Public Aid under the Department
14of Human Services Act) for the purpose of verifying sources
15and amounts of income and for other purposes directly
16connected with the administration of this Act, the Illinois
17Public Aid Code, and any other health benefit program
18administered by the State. The Director may exchange
19information with the Director of the Department of Employment
20Security for the purpose of verifying sources and amounts of
21income and for other purposes directly connected with the
22administration of this Act and Acts administered by the
23Department of Employment Security. The Director may make
24available to the Illinois Workers' Compensation Commission
25information regarding employers for the purpose of verifying
26the insurance coverage required under the Workers'

 

 

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1Compensation Act and Workers' Occupational Diseases Act. The
2Director may exchange information with the Illinois Department
3on Aging for the purpose of verifying sources and amounts of
4income for purposes directly related to confirming eligibility
5for participation in the programs of benefits authorized by
6the Senior Citizens and Persons with Disabilities Property Tax
7Relief and Pharmaceutical Assistance Act. The Director may
8exchange information with the State Treasurer's Office and the
9Department of Employment Security for the purpose of
10implementing, administering, and enforcing the Illinois Secure
11Choice Savings Program Act. The Director may exchange
12information with the State Treasurer's Office for the purpose
13of administering the Revised Uniform Unclaimed Property Act or
14successor Acts. The Director may make information available to
15the Secretary of State for the purpose of administering
16Section 5-901 of the Illinois Vehicle Code. The Director may
17exchange information with the State Treasurer's Office for the
18purpose of administering the Illinois Higher Education Savings
19Program established under Section 16.8 of the State Treasurer
20Act.
21    The Director may make available to any State agency,
22including the Illinois Supreme Court, which licenses persons
23to engage in any occupation, information that a person
24licensed by such agency has failed to file returns under this
25Act or pay the tax, penalty and interest shown therein, or has
26failed to pay any final assessment of tax, penalty or interest

 

 

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1due under this Act. The Director may make available to any
2State agency, including the Illinois Supreme Court,
3information regarding whether a bidder, contractor, or an
4affiliate of a bidder or contractor has failed to file returns
5under this Act or pay the tax, penalty, and interest shown
6therein, or has failed to pay any final assessment of tax,
7penalty, or interest due under this Act, for the limited
8purpose of enforcing bidder and contractor certifications. For
9purposes of this Section, the term "affiliate" means any
10entity that (1) directly, indirectly, or constructively
11controls another entity, (2) is directly, indirectly, or
12constructively controlled by another entity, or (3) is subject
13to the control of a common entity. For purposes of this
14subsection (a), an entity controls another entity if it owns,
15directly or individually, more than 10% of the voting
16securities of that entity. As used in this subsection (a), the
17term "voting security" means a security that (1) confers upon
18the holder the right to vote for the election of members of the
19board of directors or similar governing body of the business
20or (2) is convertible into, or entitles the holder to receive
21upon its exercise, a security that confers such a right to
22vote. A general partnership interest is a voting security.
23    The Director may make available to any State agency,
24including the Illinois Supreme Court, units of local
25government, and school districts, information regarding
26whether a bidder or contractor is an affiliate of a person who

 

 

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1is not collecting and remitting Illinois Use taxes, for the
2limited purpose of enforcing bidder and contractor
3certifications.
4    The Director may also make available to the Secretary of
5State information that a corporation which has been issued a
6certificate of incorporation by the Secretary of State has
7failed to file returns under this Act or pay the tax, penalty
8and interest shown therein, or has failed to pay any final
9assessment of tax, penalty or interest due under this Act. An
10assessment is final when all proceedings in court for review
11of such assessment have terminated or the time for the taking
12thereof has expired without such proceedings being instituted.
13For taxable years ending on or after December 31, 1987, the
14Director may make available to the Director or principal
15officer of any Department of the State of Illinois,
16information that a person employed by such Department has
17failed to file returns under this Act or pay the tax, penalty
18and interest shown therein. For purposes of this paragraph,
19the word "Department" shall have the same meaning as provided
20in Section 3 of the State Employees Group Insurance Act of
211971.
22    (d) The Director shall make available for public
23inspection in the Department's principal office and for
24publication, at cost, administrative decisions issued on or
25after January 1, 1995. These decisions are to be made
26available in a manner so that the following taxpayer

 

 

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1information is not disclosed:
2        (1) The names, addresses, and identification numbers
3    of the taxpayer, related entities, and employees.
4        (2) At the sole discretion of the Director, trade
5    secrets or other confidential information identified as
6    such by the taxpayer, no later than 30 days after receipt
7    of an administrative decision, by such means as the
8    Department shall provide by rule.
9    The Director shall determine the appropriate extent of the
10deletions allowed in paragraph (2). In the event the taxpayer
11does not submit deletions, the Director shall make only the
12deletions specified in paragraph (1).
13    The Director shall make available for public inspection
14and publication an administrative decision within 180 days
15after the issuance of the administrative decision. The term
16"administrative decision" has the same meaning as defined in
17Section 3-101 of Article III of the Code of Civil Procedure.
18Costs collected under this Section shall be paid into the Tax
19Compliance and Administration Fund.
20    (e) Nothing contained in this Act shall prevent the
21Director from divulging information to any person pursuant to
22a request or authorization made by the taxpayer, by an
23authorized representative of the taxpayer, or, in the case of
24information related to a joint return, by the spouse filing
25the joint return with the taxpayer.
26(Source: P.A. 102-61, eff. 7-9-21; 102-129, eff. 7-23-21;

 

 

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1revised 8-10-21.)
 
2    Section 10. The Retailers' Occupation Tax Act is amended
3by changing Section 11 as follows:
 
4    (35 ILCS 120/11)  (from Ch. 120, par. 450)
5    Sec. 11. All information received by the Department from
6returns filed under this Act, or from any investigation
7conducted under this Act, shall be confidential, except for
8official purposes, and any person, including a third party as
9defined in the Local Government Revenue Recapture Act, who
10divulges any such information in any manner, except in
11accordance with a proper judicial order or as otherwise
12provided by law, including the Local Government Revenue
13Recapture Act, shall be guilty of a Class B misdemeanor with a
14fine not to exceed $7,500.
15    Nothing in this Act prevents the Director of Revenue from
16publishing or making available to the public the names and
17addresses of persons filing returns under this Act, or
18reasonable statistics concerning the operation of the tax by
19grouping the contents of returns so the information in any
20individual return is not disclosed.
21    Nothing in this Act prevents the Director of Revenue from
22divulging to the United States Government or the government of
23any other state, or any officer or agency thereof, for
24exclusively official purposes, information received by the

 

 

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1Department in administering this Act, provided that such other
2governmental agency agrees to divulge requested tax
3information to the Department.
4    The Department's furnishing of information derived from a
5taxpayer's return or from an investigation conducted under
6this Act to the surety on a taxpayer's bond that has been
7furnished to the Department under this Act, either to provide
8notice to such surety of its potential liability under the
9bond or, in order to support the Department's demand for
10payment from such surety under the bond, is an official
11purpose within the meaning of this Section.
12    The furnishing upon request of information obtained by the
13Department from returns filed under this Act or investigations
14conducted under this Act to the Illinois Liquor Control
15Commission for official use is deemed to be an official
16purpose within the meaning of this Section.
17    Notice to a surety of potential liability shall not be
18given unless the taxpayer has first been notified, not less
19than 10 days prior thereto, of the Department's intent to so
20notify the surety.
21    The furnishing upon request of the Auditor General, or his
22authorized agents, for official use, of returns filed and
23information related thereto under this Act is deemed to be an
24official purpose within the meaning of this Section.
25    Where an appeal or a protest has been filed on behalf of a
26taxpayer, the furnishing upon request of the attorney for the

 

 

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1taxpayer of returns filed by the taxpayer and information
2related thereto under this Act is deemed to be an official
3purpose within the meaning of this Section.
4    The furnishing of financial information to a municipality
5or county, upon request of the chief executive officer
6thereof, is an official purpose within the meaning of this
7Section, provided the municipality or county agrees in writing
8to the requirements of this Section. Information provided to
9municipalities and counties under this paragraph shall be
10limited to: (1) the business name; (2) the business address;
11(3) the standard classification number assigned to the
12business; (4) net revenue distributed to the requesting
13municipality or county that is directly related to the
14requesting municipality's or county's local share of the
15proceeds under the Use Tax Act, the Service Use Tax Act, the
16Service Occupation Tax Act, and the Retailers' Occupation Tax
17Act distributed from the Local Government Tax Fund, and, if
18applicable, any locally imposed retailers' occupation tax or
19service occupation tax; and (5) a listing of all businesses
20within the requesting municipality or county by account
21identification number and address. On and after July 1, 2015,
22the furnishing of financial information to municipalities and
23counties under this paragraph may be by electronic means. If
24the Department may furnish financial information to a
25municipality or county under this paragraph, then the chief
26executive officer of the municipality or county may, in turn,

 

 

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1provide that financial information to a third party pursuant
2to the Local Government Revenue Recapture Act. However, the
3third party shall agree in writing to the requirements of this
4Section and meet the requirements of the Local Government
5Revenue Recapture Act.
6    Information so provided shall be subject to all
7confidentiality provisions of this Section. The written
8agreement shall provide for reciprocity, limitations on
9access, disclosure, and procedures for requesting information.
10For the purposes of furnishing financial information to a
11municipality or county under this Section, "chief executive
12officer" means the mayor of a city, the village board
13president of a village, the mayor or president of an
14incorporated town, the county executive of a county that has
15adopted the county executive form of government, the president
16of the board of commissioners of Cook County, or the
17chairperson of the county board or board of county
18commissioners of any other county.
19    The Department may make available to the Board of Trustees
20of any Metro East Mass Transit District information contained
21on transaction reporting returns required to be filed under
22Section 3 of this Act that report sales made within the
23boundary of the taxing authority of that Metro East Mass
24Transit District, as provided in Section 5.01 of the Local
25Mass Transit District Act. The disclosure shall be made
26pursuant to a written agreement between the Department and the

 

 

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1Board of Trustees of a Metro East Mass Transit District, which
2is an official purpose within the meaning of this Section. The
3written agreement between the Department and the Board of
4Trustees of a Metro East Mass Transit District shall provide
5for reciprocity, limitations on access, disclosure, and
6procedures for requesting information. Information so provided
7shall be subject to all confidentiality provisions of this
8Section.
9    The Director may make available to any State agency,
10including the Illinois Supreme Court, which licenses persons
11to engage in any occupation, information that a person
12licensed by such agency has failed to file returns under this
13Act or pay the tax, penalty and interest shown therein, or has
14failed to pay any final assessment of tax, penalty or interest
15due under this Act. The Director may make available to any
16State agency, including the Illinois Supreme Court,
17information regarding whether a bidder, contractor, or an
18affiliate of a bidder or contractor has failed to collect and
19remit Illinois Use tax on sales into Illinois, or any tax under
20this Act or pay the tax, penalty, and interest shown therein,
21or has failed to pay any final assessment of tax, penalty, or
22interest due under this Act, for the limited purpose of
23enforcing bidder and contractor certifications. The Director
24may make available to units of local government and school
25districts that require bidder and contractor certifications,
26as set forth in Sections 50-11 and 50-12 of the Illinois

 

 

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1Procurement Code, information regarding whether a bidder,
2contractor, or an affiliate of a bidder or contractor has
3failed to collect and remit Illinois Use tax on sales into
4Illinois, file returns under this Act, or pay the tax,
5penalty, and interest shown therein, or has failed to pay any
6final assessment of tax, penalty, or interest due under this
7Act, for the limited purpose of enforcing bidder and
8contractor certifications. For purposes of this Section, the
9term "affiliate" means any entity that (1) directly,
10indirectly, or constructively controls another entity, (2) is
11directly, indirectly, or constructively controlled by another
12entity, or (3) is subject to the control of a common entity.
13For purposes of this Section, an entity controls another
14entity if it owns, directly or individually, more than 10% of
15the voting securities of that entity. As used in this Section,
16the term "voting security" means a security that (1) confers
17upon the holder the right to vote for the election of members
18of the board of directors or similar governing body of the
19business or (2) is convertible into, or entitles the holder to
20receive upon its exercise, a security that confers such a
21right to vote. A general partnership interest is a voting
22security.
23    The Director may make available to any State agency,
24including the Illinois Supreme Court, units of local
25government, and school districts, information regarding
26whether a bidder or contractor is an affiliate of a person who

 

 

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1is not collecting and remitting Illinois Use taxes for the
2limited purpose of enforcing bidder and contractor
3certifications.
4    The Director may also make available to the Secretary of
5State information that a limited liability company, which has
6filed articles of organization with the Secretary of State, or
7corporation which has been issued a certificate of
8incorporation by the Secretary of State has failed to file
9returns under this Act or pay the tax, penalty and interest
10shown therein, or has failed to pay any final assessment of
11tax, penalty or interest due under this Act. An assessment is
12final when all proceedings in court for review of such
13assessment have terminated or the time for the taking thereof
14has expired without such proceedings being instituted.
15    The Director shall make available for public inspection in
16the Department's principal office and for publication, at
17cost, administrative decisions issued on or after January 1,
181995. These decisions are to be made available in a manner so
19that the following taxpayer information is not disclosed:
20        (1) The names, addresses, and identification numbers
21    of the taxpayer, related entities, and employees.
22        (2) At the sole discretion of the Director, trade
23    secrets or other confidential information identified as
24    such by the taxpayer, no later than 30 days after receipt
25    of an administrative decision, by such means as the
26    Department shall provide by rule.

 

 

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1    The Director shall determine the appropriate extent of the
2deletions allowed in paragraph (2). In the event the taxpayer
3does not submit deletions, the Director shall make only the
4deletions specified in paragraph (1).
5    The Director shall make available for public inspection
6and publication an administrative decision within 180 days
7after the issuance of the administrative decision. The term
8"administrative decision" has the same meaning as defined in
9Section 3-101 of Article III of the Code of Civil Procedure.
10Costs collected under this Section shall be paid into the Tax
11Compliance and Administration Fund.
12    Nothing contained in this Act shall prevent the Director
13from divulging information to any person pursuant to a request
14or authorization made by the taxpayer or by an authorized
15representative of the taxpayer.
16    The furnishing of information obtained by the Department
17from returns filed under Public Act 101-10 to the Department
18of Transportation for purposes of compliance with Public Act
19101-10 regarding aviation fuel is deemed to be an official
20purpose within the meaning of this Section.
21    The Director may make information available to the
22Secretary of State for the purpose of administering Section
235-901 of the Illinois Vehicle Code.
24(Source: P.A. 101-10, eff. 6-5-19; 101-628, eff. 6-1-20;
25102-558, eff. 8-20-21.)"; and
 

 

 

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1on page 1, line 4, by replacing "5" with "10"; and
 
2on page 12, line 10, by replacing "10" with "15".