Full Text of HB2507 103rd General Assembly
HB2507eng 103RD GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Retailers' Occupation Tax Act is amended by | 5 | | changing Section 4 as follows:
| 6 | | (35 ILCS 120/4) (from Ch. 120, par. 443)
| 7 | | Sec. 4.
As soon as practicable after any return is filed, | 8 | | the Department
shall examine such return and shall, if | 9 | | necessary, correct such return
according to its best judgment | 10 | | and information. If the correction
of a return results in an | 11 | | amount of tax that is understated on the taxpayer's
return due | 12 | | to a mathematical error, the Department shall notify the | 13 | | taxpayer
that the amount of tax in excess of that shown on the | 14 | | return is due and has
been assessed.
The term "mathematical | 15 | | error" means
arithmetic errors or incorrect computations on | 16 | | the return or supporting
schedules.
No such notice of | 17 | | additional tax due shall be issued on and
after each July 1 and | 18 | | January 1 covering gross receipts received during any
month or | 19 | | period of time more than 3 years prior to such July 1 and | 20 | | January 1,
respectively. Such notice of additional tax due | 21 | | shall not be considered a
notice of tax liability nor shall the | 22 | | taxpayer have any right of protest.
In the event that the | 23 | | return is corrected for any reason other than
a mathematical |
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| 1 | | error, any return so corrected
by the Department shall be | 2 | | prima facie correct and shall be prima facie
evidence of the | 3 | | correctness of the amount of tax due, as shown therein. In
| 4 | | correcting transaction by transaction reporting returns | 5 | | provided for in
Section 3 of this Act, it shall be permissible | 6 | | for the Department to show
a single corrected return figure | 7 | | for any given period of a calendar month
instead of having to | 8 | | correct each transaction by transaction return form
| 9 | | individually and having to show a corrected return figure for | 10 | | each of such
transaction by transaction return forms. In | 11 | | making a correction of
transaction by transaction, monthly or | 12 | | quarterly returns covering a period
of 6 months or more, it | 13 | | shall be permissible for the Department to show a
single | 14 | | corrected return figure for any given 6-month period.
| 15 | | Instead of requiring the person filing such return to file | 16 | | an amended
return, the Department may simply notify him of the | 17 | | correction or
corrections it has made.
| 18 | | Proof of such correction by the Department may be made at | 19 | | any hearing
before the Department or the Illinois Independent | 20 | | Tax Tribunal or in any legal proceeding by a reproduced copy or
| 21 | | computer print-out of the Department's record relating thereto | 22 | | in the name
of the Department under the certificate of the | 23 | | Director of Revenue. If
reproduced copies of the Department's | 24 | | records are offered as proof of such
correction, the Director | 25 | | must certify that those copies are true and exact
copies of | 26 | | records on file with the Department. If computer print-outs of
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| 1 | | the Department's records are offered as proof of such | 2 | | correction, the
Director must certify that those computer | 3 | | print-outs are true and exact
representations of records | 4 | | properly entered into standard electronic
computing equipment, | 5 | | in the regular course of the Department's business, at
or | 6 | | reasonably near the time of the occurrence of the facts | 7 | | recorded, from
trustworthy and reliable information. Such | 8 | | certified reproduced copy or
certified computer print-out | 9 | | shall without further proof, be admitted into
evidence before | 10 | | the Department or in any legal proceeding and shall be
prima | 11 | | facie proof of the correctness of the amount of tax due, as | 12 | | shown therein.
| 13 | | If the tax computed upon the basis of the gross receipts as | 14 | | fixed by the
Department is greater than the amount of tax due | 15 | | under the return or
returns as filed, the Department shall (or | 16 | | if the tax or any part thereof
that is admitted to be due by a | 17 | | return or returns, whether filed on time or
not, is not paid, | 18 | | the Department may) issue the taxpayer a notice of tax
| 19 | | liability for the amount of tax claimed by the Department to be | 20 | | due,
together with a penalty in an amount determined in | 21 | | accordance with
Section 3-3 of the Uniform Penalty and | 22 | | Interest Act. Provided, that if the
incorrectness of any | 23 | | return or returns as determined by the Department is
due to | 24 | | negligence or fraud, said penalty shall be in an amount | 25 | | determined
in accordance with Section 3-5 or Section 3-6 of | 26 | | the Uniform Penalty and
Interest Act, as the case may be. If |
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| 1 | | the notice of tax liability is not
based on a correction of the | 2 | | taxpayer's return or returns, but is based on
the taxpayer's | 3 | | failure to pay all or a part of the tax admitted by his
return | 4 | | or returns (whether filed on time or not) to be due, such | 5 | | notice of
tax liability shall be prima facie correct and shall | 6 | | be prima facie
evidence of the correctness of the amount of tax | 7 | | due, as shown therein.
| 8 | | Proof of such notice of tax liability by the Department | 9 | | may be made at
any hearing before the Department or the | 10 | | Illinois Independent Tax Tribunal or in any legal proceeding | 11 | | by a
reproduced copy of the Department's record relating | 12 | | thereto in the name of
the Department under the certificate of | 13 | | the Director of Revenue. Such
reproduced copy shall without | 14 | | further proof, be admitted into evidence
before the Department | 15 | | or in any legal proceeding and shall be prima facie
proof of | 16 | | the correctness of the amount of tax due, as shown therein.
| 17 | | If the person filing any return dies or becomes a person | 18 | | under legal
disability at any time before the Department | 19 | | issues its notice of tax
liability, such notice shall be | 20 | | issued to the administrator, executor or
other legal | 21 | | representative, as such, of such person.
| 22 | | Except in case of a fraudulent return, or in the case of an | 23 | | amended return
(where a notice of tax liability may be issued | 24 | | on or after each January
1 and July 1 for an amended return | 25 | | filed not more than 3 years prior to
such January 1 or July 1, | 26 | | respectively), no notice of tax
liability shall be issued on |
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| 1 | | and after each January 1 and July 1 covering
gross receipts | 2 | | received during any month or period of time more than 3
years | 3 | | prior to such January 1 and July 1, respectively. If, before | 4 | | the
expiration of the time prescribed in this Section for the | 5 | | issuance of a
notice of tax liability, both the Department and | 6 | | the taxpayer have
consented in writing to its issuance after | 7 | | such time, such notice may be
issued at any time prior to the | 8 | | expiration of the period agreed upon. The
period so agreed | 9 | | upon may be extended by subsequent agreements in writing
made | 10 | | before the expiration of the period previously agreed upon. | 11 | | The foregoing
limitations upon the issuance of a notice of tax | 12 | | liability shall not apply
to the issuance of a notice of tax | 13 | | liability with respect to any period of
time prior thereto in | 14 | | cases where the Department has, within the period of
| 15 | | limitation then provided, notified the person making the | 16 | | return of a notice
of tax liability even though such return, | 17 | | with which the tax that was shown
by such return to be due was | 18 | | paid when the return was filed, had not been
corrected by the | 19 | | Department in the manner required herein prior to the
issuance | 20 | | of such notice, but in no case shall the amount of any such | 21 | | notice
of tax liability for any period otherwise barred by | 22 | | this Act exceed for
such period the amount shown in the notice | 23 | | of tax liability theretofore issued.
| 24 | | If, when a tax or penalty under this Act becomes due and | 25 | | payable, the
person alleged to be liable therefor is out of the | 26 | | State, the notice of tax
liability may be issued within the |
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| 1 | | times herein limited after his coming
into or return to the | 2 | | State; and if, after the tax or penalty under this
Act becomes | 3 | | due and payable, the person alleged to be liable therefor
| 4 | | departs from and remains out of the State, the time of his or | 5 | | her absence is no
part of the time limited for the issuance of | 6 | | the notice of tax liability;
but the foregoing provisions | 7 | | concerning absence from the State shall not
apply to any case | 8 | | in which, at the time when a tax or penalty becomes due
under | 9 | | this Act, the person allegedly liable therefor is not a | 10 | | resident of
this State.
| 11 | | The time limitation period on the Department's right to | 12 | | issue a notice
of tax liability shall not run during any period | 13 | | of time in which the Order
of any Court has the effect of | 14 | | enjoining or restraining the Department from
issuing the | 15 | | notice of tax liability.
| 16 | | If such person or legal representative shall within 60 | 17 | | days after such
notice of tax liability file a protest to said | 18 | | notice of tax liability with the Department and
request a | 19 | | hearing thereon, the Department shall give notice to such | 20 | | person
or legal representative of the time and place fixed for | 21 | | such hearing and
shall hold a hearing in conformity with the | 22 | | provisions of this Act, and
pursuant thereto shall issue to | 23 | | such person or legal representative a final
assessment for the | 24 | | amount found to be due as a result of such hearing. On or after | 25 | | July 1, 2013, protests concerning matters that are subject to | 26 | | the jurisdiction of the Illinois Independent Tax Tribunal |
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| 1 | | shall be filed with the Illinois Independent Tax Tribunal in | 2 | | accordance with the Illinois Independent Tax Tribunal Act of | 3 | | 2012, and hearings concerning those matters shall be held | 4 | | before the Tribunal in accordance with that Act. The Tribunal | 5 | | shall give notice to such
person of the time and place fixed | 6 | | for such hearing and shall hold a
hearing. With respect to | 7 | | protests filed with the Department prior to July 1, 2013 that | 8 | | would otherwise be subject to the jurisdiction of the Illinois | 9 | | Independent Tax Tribunal, the taxpayer may elect to be subject | 10 | | to the provisions of the Illinois Independent Tax Tribunal Act | 11 | | of 2012 at any time on or after July 1, 2013, but not later | 12 | | than 30 days after the date on which the protest was filed. If | 13 | | made, the election shall be irrevocable.
| 14 | | If a protest to the notice of tax liability and a request | 15 | | for a hearing
thereon is not filed within 60 days after such | 16 | | notice, such notice of tax
liability shall become final | 17 | | without the necessity of a final assessment
being issued and | 18 | | shall be deemed to be a final assessment.
| 19 | | Notwithstanding any other provisions of this Act, any | 20 | | amount paid as tax or in respect of tax paid under this Act, | 21 | | other than amounts paid as quarter-monthly payments, shall be | 22 | | deemed assessed upon the date of receipt of payment. | 23 | | After the issuance of a final assessment, or a notice of | 24 | | tax liability
which becomes final without the necessity of | 25 | | actually issuing a final
assessment as hereinbefore provided, | 26 | | the Department, at any time before
such assessment is reduced |
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| 1 | | to judgment, may (subject to rules of the
Department) grant a | 2 | | rehearing (or grant departmental review and hold an
original | 3 | | hearing if no previous hearing in the matter has been held) | 4 | | upon
the application of the person aggrieved. Pursuant to such | 5 | | hearing or
rehearing, the Department shall issue a revised | 6 | | final assessment to such
person or his legal representative | 7 | | for the amount found to be due as a
result of such hearing or | 8 | | rehearing.
| 9 | | (Source: P.A. 97-1129, eff. 8-28-12.)
| 10 | | Section 10. The Cigarette Machine Operators' Occupation | 11 | | Tax Act is amended by changing Section 1-45 as follows: | 12 | | (35 ILCS 128/1-45)
| 13 | | Sec. 1-45. Examination and correction of returns. | 14 | | (a) As soon as practicable after any return is filed, the | 15 | | Department shall examine that return and shall correct the | 16 | | return according to its best judgment and information, which | 17 | | return so corrected by the Department shall be prima facie | 18 | | correct and shall be prima facie evidence of the correctness | 19 | | of the amount of tax due, as shown on the corrected return. | 20 | | Instead of requiring the cigarette machine operator to file an | 21 | | amended return, the Department may simply notify the cigarette | 22 | | machine operator of the correction or corrections it has made. | 23 | | Proof of the correction by the Department may be made at any | 24 | | hearing before the Department or in any legal proceeding by a |
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| 1 | | reproduced copy of the Department's record relating thereto in | 2 | | the name of the Department under the certificate of the | 3 | | Director of Revenue. Such reproduced copy shall, without | 4 | | further proof, be admitted into evidence before the Department | 5 | | or in any legal proceeding and shall be prima facie proof of | 6 | | the correctness of the amount of tax due, as shown on the | 7 | | reproduced copy. If the Department finds that any amount of | 8 | | tax is due from the cigarette machine operator, the Department | 9 | | shall issue the cigarette machine operator a notice of tax | 10 | | liability for the amount of tax claimed by the Department to be | 11 | | due, together with a penalty in an amount determined in | 12 | | accordance with Sections 3-3, 3-5 and 3-6 of the Uniform | 13 | | Penalty and Interest Act. If, in administering the provisions | 14 | | of this Act, comparison of a return or returns of a cigarette | 15 | | machine operator with the books, records, and inventories of | 16 | | such cigarette machine operator discloses a deficiency that | 17 | | cannot be allocated by the Department to a particular month or | 18 | | months, the Department shall issue the cigarette machine | 19 | | operator a notice of tax liability for the amount of tax | 20 | | claimed by the Department to be due for a given period, but | 21 | | without any obligation upon the Department to allocate that | 22 | | deficiency to any particular month or months, together with a | 23 | | penalty in an amount determined in accordance with Sections | 24 | | 3-3, 3-5, and 3-6 of the Uniform Penalty and Interest Act, | 25 | | under which circumstances the aforesaid notice of tax | 26 | | liability shall be prima facie correct and shall be prima |
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| 1 | | facie evidence of the correctness of the amount of tax due, as | 2 | | shown therein; and proof of such correctness may be made in | 3 | | accordance with, and the admissibility of a reproduced copy of | 4 | | such notice of tax liability shall be governed by, all the | 5 | | provisions of this Act applicable to corrected returns. If any | 6 | | cigarette machine operator filing any return dies or becomes a | 7 | | person under legal disability at any time before the | 8 | | Department issues its notice of tax liability, such notice | 9 | | shall be issued to the administrator, executor, or other legal | 10 | | representative of the cigarette machine operator. | 11 | | (b) If, within 60 days after such notice of tax liability, | 12 | | the cigarette machine operator or his or her legal | 13 | | representative files a written protest to such notice of tax | 14 | | liability and requests a hearing thereon, the Department shall | 15 | | give notice to such cigarette machine operator or legal | 16 | | representative of the time and place fixed for such hearing, | 17 | | and shall hold a hearing in conformity with the provisions of | 18 | | this Act, and pursuant thereto shall issue a final assessment | 19 | | to such cigarette machine operator or legal representative for | 20 | | the amount found to be due as a result of such hearing. If a | 21 | | written protest to the notice of tax liability and a request | 22 | | for a hearing thereon is not filed within 60 days after such | 23 | | notice of tax liability, such notice of tax liability shall | 24 | | become final without the necessity of a final assessment being | 25 | | issued and shall be deemed to be a final assessment. | 26 | | (c) In case of failure to pay the tax, or any portion |
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| 1 | | thereof, or any penalty provided for in this Act, when due, the | 2 | | Department may bring suit to recover the amount of such tax, or | 3 | | portion thereof, or penalty; or, if the taxpayer dies or | 4 | | becomes incompetent, by filing claim therefore against his or | 5 | | her estate; provided that no such action with respect to any | 6 | | tax, or portion thereof, or penalty, shall be instituted more | 7 | | than 2 years after the cause of action accrues, except with the | 8 | | consent of the person from whom such tax or penalty is due. | 9 | | After the expiration of the period within which the person | 10 | | assessed may file an action for judicial review under the | 11 | | Administrative Review Law without such an action being filed, | 12 | | a certified copy of the final assessment or revised final | 13 | | assessment of the Department may be filed with the circuit | 14 | | court of the county in which the taxpayer has his or her | 15 | | principal place of business, or of Sangamon County in those | 16 | | cases in which the taxpayer does not have his or her principal | 17 | | place of business in this State. The certified copy of the | 18 | | final assessment or revised final assessment shall be | 19 | | accompanied by a certification which recites facts that are | 20 | | sufficient to show that the Department complied with the | 21 | | jurisdictional requirements of the law in arriving at its | 22 | | final assessment or its revised final assessment and that the | 23 | | taxpayer had his or her opportunity for an administrative | 24 | | hearing and for judicial review, whether he or she availed | 25 | | himself or herself of either or both of these opportunities or | 26 | | not. If the court is satisfied that the Department complied |
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| 1 | | with the jurisdictional requirements of the law in arriving at | 2 | | its final assessment or its revised final assessment and that | 3 | | the taxpayer had his or her opportunity for an administrative | 4 | | hearing and for judicial review, whether he or she availed | 5 | | himself or herself of either or both of these opportunities or | 6 | | not, the court shall enter judgment in favor of the Department | 7 | | and against the taxpayer for the amount shown to be due by the | 8 | | final assessment or the revised final assessment, and such | 9 | | judgment shall be filed of record in the court. Such judgment | 10 | | shall bear the rate of interest set in the Uniform Penalty and | 11 | | Interest Act, but otherwise shall have the same effect as | 12 | | other judgments. The judgment may be enforced, and all laws | 13 | | applicable to sales for the enforcement of a judgment shall be | 14 | | applicable to sales made under such judgments. The Department | 15 | | shall file the certified copy of its assessment, as herein | 16 | | provided, with the circuit court within 2 years after such | 17 | | assessment becomes final except when the taxpayer consents in | 18 | | writing to an extension of such filing period. | 19 | | If, when the cause of action for a proceeding in court | 20 | | accrues against a person, he or she is out of the State, the | 21 | | action may be commenced within the times herein limited, after | 22 | | his or her coming into or returning to the State; and if, after | 23 | | the cause of action accrues, he or she departs from and remains | 24 | | out of the State, the time of his or her absence is no part of | 25 | | the time limited for the commencement of the action; but the | 26 | | foregoing provisions concerning absence from the State shall |
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| 1 | | not apply to any case in which, at the time the cause of action | 2 | | accrues, the party against whom the cause of action accrues is | 3 | | not a resident of this State. The time within which a court | 4 | | action is to be commenced by the Department hereunder shall | 5 | | not run while the taxpayer is a debtor in any proceeding under | 6 | | the federal Bankruptcy Code nor thereafter until 90 days after | 7 | | the Department is notified by such debtor of being discharged | 8 | | in bankruptcy. | 9 | | No claim shall be filed against the estate of any deceased | 10 | | person or a person under legal disability for any tax or | 11 | | penalty or part of either except in the manner prescribed and | 12 | | within the time limited by the Probate Act of 1975. | 13 | | The remedies provided for herein shall not be exclusive, | 14 | | but all remedies available to creditors for the collection of | 15 | | debts shall be available for the collection of any tax or | 16 | | penalty due hereunder. | 17 | | The collection of tax or penalty by any means provided for | 18 | | herein shall not be a bar to any prosecution under this Act. | 19 | | The certificate of the Director of the Department to the | 20 | | effect that a tax or amount required to be paid by this Act has | 21 | | not been paid, that a return has not been filed, or that | 22 | | information has not been supplied pursuant to the provisions | 23 | | of this Act, shall be prima facie evidence thereof. | 24 | | Notwithstanding any other provisions of this Act, any | 25 | | amount paid as tax or in respect of tax paid under this Act | 26 | | shall be deemed assessed upon the date of receipt of payment. |
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| 1 | | All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f, | 2 | | 5g, 5i and 5j of the Retailers' Occupation Tax Act, which are | 3 | | not inconsistent with this Act, shall apply, as far as | 4 | | practicable, to the subject matter of this Act to the same | 5 | | extent as if such provisions were included herein. References | 6 | | in such incorporated Sections of the Retailers' Occupation Tax | 7 | | Act to retailers, to sellers, or to persons engaged in the | 8 | | business of selling tangible personal property shall mean | 9 | | cigarette machine operator when used in this Act.
| 10 | | (Source: P.A. 97-688, eff. 6-14-12.) | 11 | | Section 15. The Cigarette Tax Act is amended by changing | 12 | | Section 9a as follows:
| 13 | | (35 ILCS 130/9a) (from Ch. 120, par. 453.9a)
| 14 | | Sec. 9a. Examination and correction of returns.
| 15 | | (1) As soon as practicable after any return is filed, the
| 16 | | Department shall examine such return and shall correct such | 17 | | return
according to its best judgment and information, which | 18 | | return so corrected
by the Department shall be prima facie | 19 | | correct and shall be prima facie
evidence of the correctness | 20 | | of the amount of tax due, as shown therein.
Instead of | 21 | | requiring the distributor to file an amended return, the
| 22 | | Department may simply notify the distributor of the correction | 23 | | or
corrections it has made. Proof of such correction by the | 24 | | Department may be
made at any hearing before the Department or |
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| 1 | | in any legal proceeding by a
reproduced copy of the | 2 | | Department's record relating thereto in the name of
the | 3 | | Department under the certificate of the Director of Revenue. | 4 | | Such
reproduced copy shall, without further proof, be admitted | 5 | | into evidence
before the Department or in any legal proceeding | 6 | | and shall be prima facie
proof of the correctness of the amount | 7 | | of tax due, as shown therein. If the
Department finds that any | 8 | | amount of tax is due from the distributor, the
Department | 9 | | shall issue the distributor a notice of tax liability for the
| 10 | | amount of tax claimed by the Department to be due, together | 11 | | with a penalty
in an amount determined in accordance with | 12 | | Sections 3-3, 3-5 and 3-6 of the
Uniform Penalty and Interest | 13 | | Act. If, in administering the provisions of
this Act, | 14 | | comparison of a return or returns of a distributor with the
| 15 | | books, records and inventories of such distributor discloses a | 16 | | deficiency
which cannot be allocated by the Department to a | 17 | | particular month or
months, the Department shall issue the | 18 | | distributor a notice of tax
liability for the amount of tax | 19 | | claimed by the Department to be due for a
given period, but | 20 | | without any obligation upon the Department to allocate
such | 21 | | deficiency to any particular month or months, together with a | 22 | | penalty
in an amount determined in accordance with Sections | 23 | | 3-3, 3-5 and 3-6 of the
Uniform Penalty and Interest Act, under | 24 | | which circumstances the aforesaid
notice of tax liability | 25 | | shall be prima facie correct and shall be prima
facie evidence | 26 | | of the correctness of the amount of tax due, as shown
therein; |
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| 1 | | and proof of such correctness may be made in accordance with, | 2 | | and
the admissibility of a reproduced copy of such notice of | 3 | | tax liability
shall be governed by, all the provisions of this | 4 | | Act applicable to
corrected returns. If any distributor filing | 5 | | any return dies or becomes a
person under legal disability at | 6 | | any time before the Department issues its
notice of tax | 7 | | liability, such notice shall be issued to the administrator,
| 8 | | executor or other legal representative, as such, of such | 9 | | distributor.
| 10 | | (2) Except as otherwise provided in this Section, if, | 11 | | within 60 days after such notice of tax liability, the
| 12 | | distributor or his or her legal representative files a protest | 13 | | to such
notice of tax liability and requests a hearing | 14 | | thereon, the Department shall
give notice to such distributor | 15 | | or legal representative of the time and place
fixed for such | 16 | | hearing, and shall hold a hearing in conformity with the
| 17 | | provisions of this Act, and pursuant thereto shall issue a | 18 | | final assessment
to such distributor or legal representative | 19 | | for the amount found to be due
as a result of such hearing. On | 20 | | or after July 1, 2013, protests concerning matters that are | 21 | | subject to the jurisdiction of the Illinois Independent Tax | 22 | | Tribunal shall be filed in accordance with the Illinois | 23 | | Independent Tax Tribunal Act of 2012, and hearings concerning | 24 | | those matters shall be held before the Tribunal in accordance | 25 | | with that Act. With respect to protests filed with the | 26 | | Department prior to July 1, 2013 that would otherwise be |
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| 1 | | subject to the jurisdiction of the Illinois Independent Tax | 2 | | Tribunal, the taxpayer may elect to be subject to the | 3 | | provisions of the Illinois Independent Tax Tribunal Act of | 4 | | 2012 at any time on or after July 1, 2013, but not later than | 5 | | 30 days after the date on which the protest was filed. If made, | 6 | | the election shall be irrevocable. If a protest to the notice | 7 | | of tax liability
and a request for a hearing thereon is not | 8 | | filed within the time allowed by law, such notice of tax | 9 | | liability shall become final
without the necessity of a final | 10 | | assessment being issued and shall be
deemed to be a final | 11 | | assessment.
| 12 | | (3) In case of failure to pay the tax, or any portion | 13 | | thereof, or any
penalty provided for in this Act, when due, the | 14 | | Department may bring suit
to recover the amount of such tax, or | 15 | | portion thereof, or penalty; or, if
the taxpayer dies or | 16 | | becomes incompetent, by filing claim therefor against
his | 17 | | estate; provided that no such action with respect to any tax, | 18 | | or portion
thereof, or penalty, shall be instituted more than | 19 | | 2 years after the cause
of action accrues, except with the | 20 | | consent of the person from whom such tax
or penalty is due.
| 21 | | After the expiration of the period within which the person | 22 | | assessed may
file an action for judicial review under the | 23 | | Administrative Review Law
without such an action being filed, | 24 | | a certified copy of the final assessment
or revised final | 25 | | assessment of the Department may be filed with the Circuit
| 26 | | Court of the county in which the taxpayer has his or her |
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| 1 | | principal place of
business, or of Sangamon County in those | 2 | | cases in which the taxpayer does
not have his principal place | 3 | | of business in this State. The certified copy
of the final | 4 | | assessment or revised final assessment shall be accompanied by
| 5 | | a certification which recites facts that are sufficient to | 6 | | show that the
Department complied with the jurisdictional | 7 | | requirements of the Law in
arriving at its final assessment or | 8 | | its revised final assessment and that
the taxpayer had his or | 9 | | her opportunity for an administrative hearing and for
judicial | 10 | | review, whether he availed himself or herself of either or | 11 | | both of
these opportunities or not. If the court is satisfied | 12 | | that the Department
complied with the jurisdictional | 13 | | requirements of the Law in arriving at its
final assessment or | 14 | | its revised final assessment and that the taxpayer had
his or | 15 | | her opportunity for an administrative hearing and for judicial | 16 | | review,
whether he or she availed himself or herself of either | 17 | | or both of
these opportunities or not, the court shall enter | 18 | | judgment in favor of the
Department and against the taxpayer | 19 | | for the amount shown to be due by the
final assessment or the | 20 | | revised final assessment, and such judgment shall
be filed of | 21 | | record in the court. Such judgment shall bear the rate of
| 22 | | interest set in the Uniform Penalty and Interest Act, but | 23 | | otherwise shall
have the same effect as other judgments. The | 24 | | judgment may be enforced, and
all laws applicable to sales for | 25 | | the enforcement of a judgment shall be
applicable to sales | 26 | | made under such judgments. The Department shall file
the |
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| 1 | | certified copy of its assessment, as herein provided, with the | 2 | | Circuit
Court within 2 years after such assessment becomes | 3 | | final except when the
taxpayer consents in writing to an | 4 | | extension of such filing period.
| 5 | | If, when the cause of action for a proceeding in court | 6 | | accrues against a
person, he or she is out of the State, the | 7 | | action may be commenced within the
times herein limited, after | 8 | | his or her coming into or return to the State;
and if, after | 9 | | the cause of action accrues, he or she departs from and
remains | 10 | | out of the State, the time of his or her absence is no part of | 11 | | the
time limited for the commencement of the action; but the | 12 | | foregoing
provisions concerning absence from the State shall | 13 | | not apply to any case in
which, at the time the cause of action | 14 | | accrues, the party against whom the
cause of action accrues is | 15 | | not a resident of this State. The time within
which a court | 16 | | action is to be commenced by the Department hereunder shall
| 17 | | not run while the taxpayer is a debtor in any proceeding under | 18 | | the Federal
Bankruptcy Act nor thereafter until 90 days after | 19 | | the Department is
notified by such debtor of being discharged | 20 | | in bankruptcy.
| 21 | | No claim shall be filed against the estate of any deceased | 22 | | person or
a person under legal disability for any tax or | 23 | | penalty or part of either
except in the manner prescribed and | 24 | | within the time limited by the Probate
Act of 1975, as amended.
| 25 | | The remedies provided for herein shall not be exclusive, | 26 | | but all
remedies available to creditors for the collection of |
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| 1 | | debts shall be
available for the collection of any tax or | 2 | | penalty due hereunder.
| 3 | | The collection of tax or penalty by any means provided for | 4 | | herein shall
not be a bar to any prosecution under this Act.
| 5 | | The certificate of the Director of the Department to the | 6 | | effect that a
tax or amount required to be paid by this Act has | 7 | | not been paid, that a
return has not been filed, or that | 8 | | information has not been supplied
pursuant to the provisions | 9 | | of this Act, shall be prima facie evidence
thereof.
| 10 | | Notwithstanding any other provisions of this Act, any | 11 | | amount paid as tax or in respect of tax paid under this Act | 12 | | shall be deemed assessed upon the date of receipt of payment. | 13 | | All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f, | 14 | | 5g, 5i and
5j of the Retailers' Occupation Tax Act, which are | 15 | | not inconsistent
with this Act, and Section 3-7 of the Uniform | 16 | | Penalty and Interest Act
shall apply, as far as practicable, | 17 | | to the subject matter of
this Act to the same extent as if such | 18 | | provisions were included herein.
References in such | 19 | | incorporated Sections of the "Retailers' Occupation Tax
Act" | 20 | | to retailers, to sellers or to persons engaged in the business | 21 | | of
selling tangible personal property shall mean distributors | 22 | | when used in
this Act.
| 23 | | (Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
| 24 | | Section 20. The Cigarette Use Tax Act is amended by | 25 | | changing Section 13 as follows:
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| 1 | | (35 ILCS 135/13) (from Ch. 120, par. 453.43)
| 2 | | Sec. 13. Examination and correction of return. As soon as | 3 | | practicable
after any return is filed, the Department
shall | 4 | | examine such return and shall correct such return according to | 5 | | its
best judgment and information, which return so corrected | 6 | | by the Department
shall be prima facie correct and shall be | 7 | | prima facie evidence of the
correctness of the amount of tax | 8 | | due, as shown therein. Proof of such
correction by the | 9 | | Department may be made at any hearing before the
Department or | 10 | | in any legal proceeding by a reproduced copy of the
| 11 | | Department's record relating thereto in the name of the | 12 | | Department under
the certificate of the Director of Revenue. | 13 | | Such reproduced copy shall,
without further proof, be admitted | 14 | | into evidence before the Department or
in any legal proceeding | 15 | | and shall be prima facie proof of the correctness
of the amount | 16 | | of tax due, as shown therein. If the tax as fixed by the
| 17 | | Department is greater than the amount of the tax due under the | 18 | | return as
filed, the Department shall issue the person filing | 19 | | such return a notice of
tax liability for the amount of tax | 20 | | claimed by the Department to be due,
together with a penalty in | 21 | | an amount determined in accordance with
Sections 3-3, 3-5 and | 22 | | 3-6 of the Uniform Penalty and Interest Act. If,
in | 23 | | administering the provisions of this Act,
comparison of a | 24 | | return or returns of a distributor with the books, records
and | 25 | | inventories of such distributor discloses a deficiency which |
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| 1 | | cannot be
allocated by the Department to a particular month or | 2 | | months, the Department
shall issue the distributor a notice of | 3 | | tax liability for the amount of tax
claimed by the Department | 4 | | to be due for a given period, but without any
obligation upon | 5 | | the Department to allocate such deficiency to any
particular | 6 | | month or months, together with a penalty in an amount
| 7 | | determined in accordance with Sections 3-3, 3-5 and 3-6 of the | 8 | | Uniform
Penalty and Interest Act, under which circumstances | 9 | | the aforesaid notice of
tax liability shall be prima facie | 10 | | correct and shall be prima facie
evidence of the correctness | 11 | | of the amount of tax due, as shown therein; and
proof of such | 12 | | correctness may be made in accordance with, and the
| 13 | | admissibility of a reproduced copy of such notice of tax | 14 | | liability shall be
governed by, all the provisions of this Act | 15 | | applicable to corrected returns.
| 16 | | If any person filing any return dies or becomes a person | 17 | | under legal
disability at any time before the Department | 18 | | issues its notice of tax
liability, such notice shall be | 19 | | issued to the administrator, executor or
other legal | 20 | | representative, as such, of such person.
| 21 | | Except as otherwise provided in this Section, if within 60 | 22 | | days after such notice of tax liability, the person
to whom
| 23 | | such notice is issued or his legal representative files a | 24 | | protest to such
notice of tax liability and requests a hearing | 25 | | thereon, the Department
shall give notice to such person or | 26 | | legal representative of the time and
place fixed for such |
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| 1 | | hearing, and shall hold a hearing in conformity with
the | 2 | | provisions of this Act, and pursuant thereto shall issue a | 3 | | final
assessment to such person or legal representative for | 4 | | the amount found to
be due as a result of such hearing. | 5 | | Effective July 1, 2013, protests concerning matters that are | 6 | | subject to the jurisdiction of the Illinois Independent Tax | 7 | | Tribunal shall be filed with the Tribunal in accordance with | 8 | | the Illinois Independent Tax Tribunal Act of 2012, and | 9 | | hearings concerning those matters shall be held before the | 10 | | Tribunal in accordance with that Act. With respect to protests | 11 | | filed with the Department prior to July 1, 2013 that would | 12 | | otherwise be subject to the jurisdiction of the Illinois | 13 | | Independent Tax Tribunal, the person filing the protest may | 14 | | elect to be subject to the provisions of the Illinois | 15 | | Independent Tax Tribunal Act of 2012 at any time on or after | 16 | | July 1, 2013, but not later than 30 days after the date on | 17 | | which the protest was filed. If made, the election shall be | 18 | | irrevocable. If a protest to the notice of tax
liability and a | 19 | | request for a hearing thereon is not filed within the time | 20 | | allowed by law, such notice of tax liability shall
become | 21 | | final without the necessity of a final assessment being issued | 22 | | and
shall be deemed to be a final assessment.
| 23 | | Notwithstanding any other provisions of this Act, any | 24 | | amount paid as tax or in respect of tax paid under this Act | 25 | | shall be deemed assessed upon the date of receipt of payment. | 26 | | (Source: P.A. 97-1129, eff. 8-28-12.)
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| 1 | | Section 25. The Liquor Control Act of 1934 is amended by | 2 | | changing Section 8-5 as follows:
| 3 | | (235 ILCS 5/8-5) (from Ch. 43, par. 163a)
| 4 | | Sec. 8-5.
As soon as practicable after any return is | 5 | | filed, the Department
shall examine such return or amended | 6 | | return and shall correct such return according to its
best | 7 | | judgment and information, which return so corrected by the | 8 | | Department
shall be prima facie correct and shall be prima | 9 | | facie evidence of the
correctness of the amount of tax due, as | 10 | | shown therein. Instead of
requiring the licensee to file an | 11 | | amended return, the Department may simply
notify the licensee | 12 | | of the correction or corrections it has made. Proof of
such | 13 | | correction by the Department, or of the determination of the | 14 | | amount of
tax due as provided in Sections 8-4 and 8-10, may be | 15 | | made at
any hearing before the Department or in any legal | 16 | | proceeding by a
reproduced copy of the Department's record | 17 | | relating thereto in the name of
the Department under the | 18 | | certificate of the Director of Revenue. Such
reproduced copy | 19 | | shall, without further proof, be admitted into evidence
before | 20 | | the Department or in any legal proceeding and shall be prima | 21 | | facie
proof of the correctness of the amount of tax due, as | 22 | | shown therein. If the
return so corrected by the Department | 23 | | discloses the sale or use, by a
licensed manufacturer or | 24 | | importing distributor, of alcoholic liquors as to
which the |
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| 1 | | tax provided for in this Article should have been paid, but has
| 2 | | not been paid, in excess of the alcoholic liquors reported as | 3 | | being taxable
by the licensee, and as to which the proper tax | 4 | | was paid the Department
shall notify the licensee that it | 5 | | shall issue the taxpayer a notice of tax
liability for the | 6 | | amount of tax claimed by the Department to be due,
together | 7 | | with penalties at the rates prescribed by Sections 3-3, 3-5 | 8 | | and
3-6 of the Uniform Penalty and Interest Act, which amount | 9 | | of tax shall be
equivalent to the amount of tax which, at the | 10 | | prescribed rate per gallon,
should have been paid with respect | 11 | | to the alcoholic liquors disposed of in
excess of those | 12 | | reported as being taxable. No earlier than 90 days after the | 13 | | due date of the return, the Department may compare filed | 14 | | returns, or any amendments thereto, against reports of sales | 15 | | of alcoholic liquor submitted to the Department by other | 16 | | manufacturers and distributors. If a return or amended return | 17 | | is corrected by the Department because the return or amended | 18 | | return failed to disclose the purchase of alcoholic liquor | 19 | | from manufacturers or distributors on which the tax provided | 20 | | for in this Article should have been paid, but has not been | 21 | | paid, the Department shall issue the taxpayer a notice of tax | 22 | | liability for the amount of tax claimed by the Department to be | 23 | | due, together with penalties at the rates prescribed by | 24 | | Sections 3-3, 3-5, and 3-6 of the Uniform Penalty and Interest | 25 | | Act. In a case where no return has
been filed, the Department | 26 | | shall determine the amount of tax due according
to its best |
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| 1 | | judgment and information and shall issue the taxpayer a notice
| 2 | | of tax liability for the amount of tax claimed by the | 3 | | Department to be due
as herein provided together with | 4 | | penalties at the rates prescribed by
Sections 3-3, 3-5 and 3-6 | 5 | | of the Uniform Penalty and Interest Act. If, in
administering | 6 | | the provisions of this Act, a comparison of a licensee's
| 7 | | return or returns with the books, records and physical | 8 | | inventories of such
licensee discloses a deficiency which | 9 | | cannot be allocated by the Department
to a particular month or | 10 | | months, the Department shall issue the taxpayer a
notice of | 11 | | tax liability for the amount of tax claimed by the Department | 12 | | to
be due for a given period, but without any obligation upon | 13 | | the Department
to allocate such deficiency to any particular | 14 | | month or months, together
with penalties at the rates | 15 | | prescribed by Sections 3-3, 3-5 and 3-6 of the
Uniform Penalty | 16 | | and Interest Act, which amount of tax shall be equivalent to
| 17 | | the amount of tax which, at the prescribed rate per gallon, | 18 | | should have
been paid with respect to the alcoholic liquors | 19 | | disposed of in excess of
those reported being taxable, with | 20 | | the tax thereon having been paid under
which circumstances the | 21 | | aforesaid notice of tax liability shall be prima
facie correct | 22 | | and shall be prima facie evidence of the correctness of the
| 23 | | amount of tax due as shown therein; and proof of such | 24 | | correctness may be
made in accordance with, and the | 25 | | admissibility of a reproduced copy of such
notice of the | 26 | | Department's notice of tax liability shall be governed by,
all |
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| 1 | | the provisions of this Act applicable to corrected returns.
| 2 | | If the licensee dies or becomes a person under legal | 3 | | disability
at any time before the Department issues its notice | 4 | | of tax liability, such
notice shall be issued to the | 5 | | administrator, executor or other legal
representative, as | 6 | | such, of the deceased or licensee who is under legal
| 7 | | disability.
| 8 | | If such licensee or legal representative, within 60 days | 9 | | after such
notice of tax liability, files a protest to such | 10 | | notice of tax liability
and requests a hearing thereon, the | 11 | | Department shall give at least 7 days'
notice to such licensee | 12 | | or legal representative, as the case may be, of the
time and | 13 | | place fixed for such hearing and shall hold a hearing in
| 14 | | conformity with the provisions of this Act, and pursuant | 15 | | thereto shall
issue a final assessment to such licensee or | 16 | | legal representative for the
amount found to be due as a result | 17 | | of such hearing.
| 18 | | If a protest to the notice of tax liability and a request | 19 | | for a hearing
thereon is not filed within 60 days after such | 20 | | notice of tax liability,
such notice of tax liability shall | 21 | | become final without the necessity of a
final assessment being | 22 | | issued and shall be deemed to be a final assessment.
| 23 | | Notwithstanding any other provisions of this Act, any | 24 | | amount paid as tax or in respect of tax paid under this Act | 25 | | shall be deemed assessed upon the date of receipt of payment. | 26 | | In case of failure to pay the tax, or any portion thereof, |
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| 1 | | or any
penalty provided for herein, when due, the Department | 2 | | may recover the
amount of such tax, or portion thereof, or | 3 | | penalty in a civil action; or if
the licensee dies or becomes a | 4 | | person under legal disability, by filing a
claim therefor | 5 | | against his or her estate; provided that no such claim shall
be | 6 | | filed against the estate of any deceased or of the licensee who | 7 | | is under
legal disability for any tax or penalty or portion | 8 | | thereof except in the
manner prescribed and within the time | 9 | | limited by the Probate Act of 1975,
as amended.
| 10 | | The collection of any such tax and penalty, or either, by | 11 | | any means
provided for herein, shall not be a bar to any | 12 | | prosecution under this Act.
| 13 | | In addition to any other penalty provided for in this | 14 | | Article, all provisions of the Uniform Penalty and Interest | 15 | | Act that are not inconsistent with this Act apply.
| 16 | | (Source: P.A. 100-1050, eff. 7-1-19; 101-16, eff. 6-14-19.)
| 17 | | Section 99. Effective date. This Act takes effect January | 18 | | 1, 2024.
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