Full Text of SB1249 100th General Assembly
SB1249eng 100TH 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 Uniform Penalty and Interest Act is amended | 5 | | by changing Sections 3-3 and 3-9 as follows:
| 6 | | (35 ILCS 735/3-3) (from Ch. 120, par. 2603-3)
| 7 | | Sec. 3-3. Penalty for failure to file or pay.
| 8 | | (a) This subsection (a) is applicable before January 1, | 9 | | 1996. A penalty
of 5% of the tax required to be shown due on a | 10 | | return shall be
imposed for failure to file the tax return on | 11 | | or before the due date prescribed
for filing determined with | 12 | | regard for any extension of time for filing
(penalty
for late | 13 | | filing or nonfiling). If any unprocessable return is corrected | 14 | | and
filed within 21 days after notice by the Department, the | 15 | | late filing or
nonfiling penalty shall not apply. If a penalty | 16 | | for late filing or nonfiling
is imposed in addition to a | 17 | | penalty for late payment, the total penalty due
shall be the | 18 | | sum of the late filing penalty and the applicable late payment
| 19 | | penalty.
Beginning on the effective date of this amendatory Act | 20 | | of 1995, in the case
of any type of tax return required to be | 21 | | filed more frequently
than annually, when the failure to file | 22 | | the tax return on or before the
date prescribed for filing | 23 | | (including any extensions) is shown to be
nonfraudulent and has |
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| 1 | | not occurred in the 2 years immediately preceding the
failure | 2 | | to file on the prescribed due date, the penalty imposed by | 3 | | Section
3-3(a) shall be abated.
| 4 | | (a-5) This subsection (a-5) is applicable to returns due on | 5 | | and after
January 1, 1996 and on or before December 31, 2000.
A | 6 | | penalty equal to 2% of
the tax required to be shown due on a | 7 | | return, up to a maximum amount of $250,
determined without | 8 | | regard to any part of the tax that is paid on time or by any
| 9 | | credit that was properly allowable on the date the return was | 10 | | required to be
filed, shall be
imposed for failure to file the | 11 | | tax return on or before the due date prescribed
for filing | 12 | | determined with regard for any extension of time for filing.
| 13 | | However, if any return is not filed within 30 days after notice | 14 | | of nonfiling
mailed by the Department to the last known address | 15 | | of the taxpayer contained in
Department records, an additional | 16 | | penalty amount shall be imposed equal to the
greater of $250 or | 17 | | 2% of the tax shown on the return. However, the additional
| 18 | | penalty amount may not exceed $5,000 and is determined without | 19 | | regard to any
part of the tax that is paid on time or by any | 20 | | credit that was properly
allowable on the date the return was | 21 | | required to be filed (penalty
for late filing or nonfiling). If | 22 | | any unprocessable return is corrected and
filed within 30 days | 23 | | after notice by the Department, the late filing or
nonfiling | 24 | | penalty shall not apply. If a penalty for late filing or | 25 | | nonfiling
is imposed in addition to a penalty for late payment, | 26 | | the total penalty due
shall be the sum of the late filing |
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| 1 | | penalty and the applicable late payment
penalty.
In the case of | 2 | | any type of tax return required to be filed more frequently
| 3 | | than annually, when the failure to file the tax return on or | 4 | | before the
date prescribed for filing (including any | 5 | | extensions) is shown to be
nonfraudulent and has not occurred | 6 | | in the 2 years immediately preceding the
failure to file on the | 7 | | prescribed due date, the penalty imposed by Section
3-3(a-5) | 8 | | shall be abated.
| 9 | | (a-10) This subsection (a-10) is applicable to returns due | 10 | | on and after
January 1, 2001.
A penalty equal to 2% of
the tax | 11 | | required to be shown due on a return, up to a maximum amount of | 12 | | $250,
reduced by any tax that is
paid on time or by any
credit | 13 | | that was properly allowable on the date the return was required | 14 | | to be
filed, shall be
imposed for failure to file the tax | 15 | | return on or before the due date prescribed
for filing | 16 | | determined with regard for any extension of time for filing.
| 17 | | However, if any return is not filed within 30 days after notice | 18 | | of nonfiling
mailed by the Department to the last known address | 19 | | of the taxpayer contained in
Department records, an additional | 20 | | penalty amount shall be imposed equal to the
greater of $250 or | 21 | | 2% of the tax shown on the return. However, the additional
| 22 | | penalty amount may not exceed $5,000 and is determined without | 23 | | regard to any
part of the tax that is paid on time or by any | 24 | | credit that was properly
allowable on the date the return was | 25 | | required to be filed (penalty
for late filing or nonfiling). If | 26 | | any unprocessable return is corrected and
filed within 30 days |
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| 1 | | after notice by the Department, the late filing or
nonfiling | 2 | | penalty shall not apply. If a penalty for late filing or | 3 | | nonfiling
is imposed in addition to a penalty for late payment, | 4 | | the total penalty due
shall be the sum of the late filing | 5 | | penalty and the applicable late payment
penalty.
In the case of | 6 | | any type of tax return required to be filed more frequently
| 7 | | than annually, when the failure to file the tax return on or | 8 | | before the
date prescribed for filing (including any | 9 | | extensions) is shown to be
nonfraudulent and has not occurred | 10 | | in the 2 years immediately preceding the
failure to file on the | 11 | | prescribed due date, the penalty imposed by this subsection | 12 | | (a-10) shall be abated. This subsection (a-10) does not apply | 13 | | to transaction reporting returns required by Section 3 of the | 14 | | Retailers' Occupation Tax Act and Section 9 of the Use Tax Act | 15 | | that would not, when properly prepared and filed, result in the | 16 | | imposition of a tax; however, those returns are subject to the | 17 | | penalty set forth in subsection (a-15).
| 18 | | (a-15) A penalty of $100 shall be imposed for failure to | 19 | | file a transaction reporting return required by Section 3 of | 20 | | the Retailers' Occupation Tax Act and Section 9 of the Use Tax | 21 | | Act on or before the date a return is required to be filed; | 22 | | provided, however, that this penalty shall be imposed only if | 23 | | the return when properly prepared and filed would not result in | 24 | | the imposition of a tax. If such a transaction reporting return | 25 | | would result in the imposition of a tax when properly prepared | 26 | | and filed, then that return is subject to the provisions of |
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| 1 | | subsection (a-10). | 2 | | (b) This subsection is applicable before January 1, 1998.
A | 3 | | penalty of 15% of the tax shown on the return or the tax | 4 | | required to
be shown due on the return shall be imposed for | 5 | | failure to pay:
| 6 | | (1) the tax shown due on the return on or before the | 7 | | due date prescribed
for payment of that tax, an amount of | 8 | | underpayment of estimated tax, or an
amount that is | 9 | | reported in an amended return other than an amended return
| 10 | | timely filed as required by subsection (b) of Section 506 | 11 | | of the Illinois
Income Tax Act (penalty for late payment or | 12 | | nonpayment of admitted liability);
or
| 13 | | (2) the full amount of any tax required to be shown due | 14 | | on a
return and which is not shown (penalty for late | 15 | | payment or nonpayment of
additional liability), within 30 | 16 | | days after a notice of arithmetic error,
notice and demand, | 17 | | or a final assessment is issued by the Department.
In the | 18 | | case of a final assessment arising following a protest and | 19 | | hearing,
the 30-day period shall not begin until all | 20 | | proceedings in court for review of
the final assessment | 21 | | have terminated or the period for obtaining a review has
| 22 | | expired without proceedings for a review having been | 23 | | instituted. In the case
of a notice of tax liability that | 24 | | becomes a final assessment without a protest
and hearing, | 25 | | the penalty provided in this paragraph (2) shall be imposed | 26 | | at the
expiration of the period provided for the filing of |
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| 1 | | a protest.
| 2 | | (b-5) This subsection is applicable to returns due on and | 3 | | after January
1, 1998 and on or before December 31, 2000.
A | 4 | | penalty of 20% of the tax shown on the return or the tax | 5 | | required to be
shown due on the return shall be imposed for | 6 | | failure to
pay:
| 7 | | (1) the tax shown due on the return on or before the | 8 | | due date prescribed
for payment of that tax, an amount of | 9 | | underpayment of estimated tax, or an
amount that is | 10 | | reported in an amended return other than an amended return
| 11 | | timely filed as required by subsection (b) of Section 506 | 12 | | of the Illinois
Income Tax Act (penalty for late payment or | 13 | | nonpayment of admitted liability);
or
| 14 | | (2) the full amount of any tax required to be shown due | 15 | | on a
return and which is not shown (penalty for late | 16 | | payment or nonpayment of
additional liability), within 30 | 17 | | days after a notice of arithmetic error,
notice and demand, | 18 | | or a final assessment is issued by the Department.
In the | 19 | | case of a final assessment arising following a protest and | 20 | | hearing,
the 30-day period shall not begin until all | 21 | | proceedings in court for review of
the final assessment | 22 | | have terminated or the period for obtaining a review has
| 23 | | expired without proceedings for a review having been | 24 | | instituted. In the case
of a notice of tax liability that | 25 | | becomes a final assessment without a protest
and hearing, | 26 | | the penalty provided in this paragraph (2) shall be imposed |
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| 1 | | at the
expiration of the period provided for the filing of | 2 | | a protest.
| 3 | | (b-10) This subsection (b-10) is applicable to returns due | 4 | | on and after
January 1, 2001 and on or before December 31, | 5 | | 2003. A penalty shall be
imposed for failure to pay:
| 6 | | (1) the tax shown due on a return on or before the due | 7 | | date prescribed for
payment of that tax, an amount of | 8 | | underpayment of estimated tax, or an amount
that is | 9 | | reported in an amended return other than an amended return | 10 | | timely filed
as required by subsection (b) of Section 506 | 11 | | of the Illinois Income Tax Act
(penalty for late payment or | 12 | | nonpayment of admitted liability). The amount of
penalty | 13 | | imposed under this subsection (b-10)(1) shall be 2% of any | 14 | | amount that
is paid no later than 30 days after the due | 15 | | date, 5% of any amount that is
paid later than 30 days | 16 | | after the due date and not later than 90 days after
the due | 17 | | date, 10% of any amount that is paid later than 90 days | 18 | | after the due
date and not later than 180 days after the | 19 | | due date, and 15% of any amount that
is paid later than 180 | 20 | | days after the
due date.
If notice and demand is made for | 21 | | the payment of any amount of tax due and if
the amount due | 22 | | is paid within 30 days after the date of the notice and | 23 | | demand,
then the penalty for late payment or nonpayment of | 24 | | admitted liability under
this subsection (b-10)(1) on the | 25 | | amount so paid shall not accrue for the period
after the | 26 | | date of the notice and demand.
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| 1 | | (2) the full amount of any tax required to be shown due | 2 | | on a return and
that is not shown (penalty for late payment | 3 | | or nonpayment of additional
liability), within 30 days | 4 | | after a notice of arithmetic error, notice and
demand, or a | 5 | | final assessment is issued by the Department. In the case | 6 | | of a
final assessment arising following a protest and | 7 | | hearing, the 30-day period
shall not begin until all | 8 | | proceedings in court for review of the final
assessment | 9 | | have terminated or the period for obtaining a review has | 10 | | expired
without proceedings for a review having been | 11 | | instituted. The amount of penalty
imposed under this | 12 | | subsection (b-10)(2) shall be 20% of any amount that is not
| 13 | | paid within the 30-day period. In the case of a notice of | 14 | | tax liability that
becomes a final assessment without a | 15 | | protest and hearing, the penalty provided
in this | 16 | | subsection (b-10)(2) shall be imposed at the expiration of | 17 | | the period
provided for the filing of a protest.
| 18 | | (b-15) This subsection (b-15) is applicable to returns due | 19 | | on and after
January 1, 2004 and on or before December 31, | 20 | | 2004. A penalty shall be imposed for failure to pay the tax | 21 | | shown due or
required to be shown due on a return on or before | 22 | | the due date prescribed for
payment of that tax, an amount of | 23 | | underpayment of estimated tax, or an amount
that is reported in | 24 | | an amended return other than an amended return timely filed
as | 25 | | required by subsection (b) of Section 506 of the Illinois | 26 | | Income Tax Act
(penalty for late payment or nonpayment of |
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| 1 | | admitted liability). The amount of
penalty imposed under this | 2 | | subsection (b-15)(1) shall be 2% of any amount that
is paid no | 3 | | later than 30 days after the due date, 10% of any amount that | 4 | | is
paid later than 30 days after the due date and not later | 5 | | than 90 days after the
due date, 15% of any amount that is paid | 6 | | later than 90 days after the due date
and not later than 180 | 7 | | days after the due date, and 20% of any amount that is
paid | 8 | | later than 180 days after the due date. If notice and demand is | 9 | | made for
the payment of any amount of tax due and if the amount | 10 | | due is paid within 30
days after the date of this notice and | 11 | | demand, then the penalty for late
payment or nonpayment of | 12 | | admitted liability under this subsection (b-15)(1) on
the | 13 | | amount so paid shall not accrue for the period after the date | 14 | | of the notice
and demand.
| 15 | | (b-20) This subsection (b-20) is applicable to returns due | 16 | | on and after January 1, 2005. | 17 | | (1) A penalty shall be imposed for failure to pay, | 18 | | prior to the due date for payment, any amount of tax the | 19 | | payment of which is required to be made prior to the filing | 20 | | of a return or without a return (penalty for late payment | 21 | | or nonpayment of estimated or accelerated tax). The amount | 22 | | of penalty imposed under this paragraph (1) shall be 2% of | 23 | | any amount that is paid no later than 30 days after the due | 24 | | date and 10% of any amount that is paid later than 30 days | 25 | | after the due date. | 26 | | (2) A penalty shall be imposed for failure to pay the |
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| 1 | | tax shown due or required to be shown due on a return on or | 2 | | before the due date prescribed for payment of that tax or | 3 | | an amount that is reported in an amended return other than | 4 | | an amended return timely filed as required by subsection | 5 | | (b) of Section 506 of the Illinois Income Tax Act (penalty | 6 | | for late payment or nonpayment of tax). The amount of | 7 | | penalty imposed under this paragraph (2) shall be 2% of any | 8 | | amount that is paid no later than 30 days after the due | 9 | | date, 10% of any amount that is paid later than 30 days | 10 | | after the due date and prior to the date the Department has | 11 | | initiated an audit or investigation of the taxpayer, and | 12 | | 15% 20% of any amount that is paid after the date the | 13 | | Department has initiated an audit or investigation of the | 14 | | taxpayer; provided that the 15% penalty under this | 15 | | paragraph (2) shall be abated reduced to 15% if , prior to | 16 | | the initiation of the audit or investigation, the taxpayer | 17 | | paid to the Department at least 95% of the total tax | 18 | | liability for the filing period, which includes any | 19 | | additional liability resulting from the audit or | 20 | | investigation. The changes made by this amendatory Act of | 21 | | the 100th General Assembly do not apply for the purposes of | 22 | | determining the amount of penalty assessed under this | 23 | | subsection prior to the effective date of this amendatory | 24 | | Act of the 100th General Assembly. the entire amount due is | 25 | | paid not later than 30 days after the Department has | 26 | | provided the taxpayer with an amended return (following |
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| 1 | | completion of an occupation, use, or excise tax audit) or a | 2 | | form for waiver of restrictions on assessment (following | 3 | | completion of an income tax audit); provided further that | 4 | | the reduction to 15% shall be rescinded if the taxpayer | 5 | | makes any claim for refund or credit of the tax, penalties, | 6 | | or interest determined to be due upon audit, except in the | 7 | | case of a claim filed pursuant to subsection (b) of Section | 8 | | 506 of the Illinois Income Tax Act or to claim a carryover | 9 | | of a loss or credit, the availability of which was not | 10 | | determined in the audit. For purposes of this paragraph | 11 | | (2), any overpayment reported on an original return that | 12 | | has been allowed as a refund or credit to the taxpayer | 13 | | shall be deemed to have not been paid on or before the due | 14 | | date for payment and any amount paid under protest pursuant | 15 | | to the provisions of the State Officers and Employees Money | 16 | | Disposition Act shall be deemed to have been paid after the | 17 | | Department has initiated an audit . and more than 30 days | 18 | | after the Department has provided the taxpayer with an | 19 | | amended return (following completion of an occupation, | 20 | | use, or excise tax audit) or a form for waiver of | 21 | | restrictions on assessment (following completion of an | 22 | | income tax audit). | 23 | | (3) The penalty imposed under this subsection (b-20) | 24 | | shall be deemed assessed at the time the tax upon which the | 25 | | penalty is computed is assessed , except that, if the | 26 | | reduction of the penalty imposed under paragraph (2) of |
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| 1 | | this subsection (b-20) to 15% is rescinded because a claim | 2 | | for refund or credit has been filed, the increase in | 3 | | penalty shall be deemed assessed at the time the claim for | 4 | | refund or credit is filed .
| 5 | | (c) For purposes of the late payment penalties, the basis | 6 | | of the penalty
shall be the tax shown or required to be shown | 7 | | on a return, whichever is
applicable, reduced by any part of | 8 | | the tax which is paid on time and by any
credit which was | 9 | | properly allowable on the date the return was required to
be | 10 | | filed.
| 11 | | (d) A penalty shall be applied to the tax required to be | 12 | | shown even if
that amount is less than the tax shown on the | 13 | | return.
| 14 | | (e) This subsection (e) is applicable to returns due before | 15 | | January 1,
2001.
If both a subsection (b)(1) or (b-5)(1) | 16 | | penalty and a subsection (b)(2)
or (b-5)(2) penalty are | 17 | | assessed against the same return, the subsection
(b)(2) or | 18 | | (b-5)(2) penalty shall
be assessed against only the additional | 19 | | tax found to be due.
| 20 | | (e-5) This subsection (e-5) is applicable to returns due on | 21 | | and after
January 1, 2001.
If both a subsection (b-10)(1) | 22 | | penalty and a subsection
(b-10)(2) penalty are assessed against | 23 | | the same return,
the subsection (b-10)(2) penalty shall be | 24 | | assessed against
only the additional tax found to be due.
| 25 | | (f) If the taxpayer has failed to file the return, the | 26 | | Department shall
determine the correct tax according to its |
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| 1 | | best judgment and information,
which amount shall be prima | 2 | | facie evidence of the correctness of the tax due.
| 3 | | (g) The time within which to file a return or pay an amount | 4 | | of tax due
without imposition of a penalty does not extend the | 5 | | time within which to
file a protest to a notice of tax | 6 | | liability or a notice of deficiency.
| 7 | | (h) No return shall be determined to be unprocessable | 8 | | because of the
omission of any information requested on the | 9 | | return pursuant to Section
2505-575
of the Department of | 10 | | Revenue Law (20 ILCS 2505/2505-575).
| 11 | | (i) If a taxpayer has a tax liability for the taxable | 12 | | period ending after June 30,
1983 and prior to July 1, 2002 | 13 | | that is eligible for amnesty under the
Tax Delinquency Amnesty | 14 | | Act and the taxpayer fails to satisfy the tax liability
during | 15 | | the amnesty period provided for in that Act for that taxable | 16 | | period, then the penalty imposed by
the Department under this | 17 | | Section shall be imposed in an amount that is 200% of
the | 18 | | amount that would otherwise be imposed under this Section.
| 19 | | (j) If a taxpayer has a tax liability for the taxable | 20 | | period ending after June 30, 2002 and prior to July 1, 2009 | 21 | | that is eligible for amnesty under the
Tax Delinquency Amnesty | 22 | | Act, except for any tax liability reported pursuant to Section | 23 | | 506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)) that | 24 | | is not final, and the taxpayer fails to satisfy the tax | 25 | | liability
during the amnesty period provided for in that Act | 26 | | for that taxable period, then the penalty imposed by
the |
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| 1 | | Department under this Section shall be imposed in an amount | 2 | | that is 200% of
the amount that would otherwise be imposed | 3 | | under this Section. | 4 | | (Source: P.A. 98-425, eff. 8-16-13; 99-335, eff. 8-10-15.)
| 5 | | (35 ILCS 735/3-9) (from Ch. 120, par. 2603-9)
| 6 | | Sec. 3-9. Application of provisions.
| 7 | | (a) The provisions of this Act shall apply to the rates of | 8 | | interest for
periods on and after the effective date of this | 9 | | Act. Interest for periods
prior to the effective date of this | 10 | | Act shall be computed at the rates in
effect prior to that | 11 | | date.
| 12 | | (b) Except as otherwise provided in subsection (b-20) of | 13 | | Section 3-3, penalties Penalties shall be imposed at the rate | 14 | | and in the manner in effect
at the time the tax liability | 15 | | became due.
| 16 | | (c) Interest shall not be paid on claims filed after the | 17 | | effective date
of this Act except such interest which is paid | 18 | | in accordance with this Act.
| 19 | | (d) Payments received from a taxpayer shall be applied | 20 | | against the
outstanding liability of the taxpayer, or to an | 21 | | agreed portion of the
outstanding liability, in the following | 22 | | order: the principal amount of the
tax, then penalty, and then | 23 | | interest.
| 24 | | (Source: P.A. 87-205 .)
| 25 | | Section 99. Effective date. This Act takes effect January |
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| 1 | | 1, 2018.
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