Full Text of SB1901 103rd General Assembly
SB1901 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 SB1901 Introduced 2/9/2023, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED: |
| 35 ILCS 5/902 | from Ch. 120, par. 9-902 | 35 ILCS 120/5j | from Ch. 120, par. 444j |
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Amends the Illinois Income Tax Act and the Retailers' Occupation Tax Act. Eliminates the bulk sales notice requirement if the only asset sold or transferred is real estate. Effective immediately.
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| | A BILL FOR |
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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 Illinois Income Tax Act is amended by | 5 | | changing Section 902 as follows:
| 6 | | (35 ILCS 5/902) (from Ch. 120, par. 9-902)
| 7 | | Sec. 902. Notice and demand. | 8 | | (a) In general. Except as provided in subsection (b) the | 9 | | Director shall,
as soon as practicable after an amount payable | 10 | | under this Act is deemed
assessed (as provided in Section | 11 | | 903), give notice to each person liable
for any unpaid portion | 12 | | of such assessment, stating the amount unpaid and
demanding | 13 | | payment thereof. In the case of tax deemed assessed with the
| 14 | | filing of a return, the Director shall give notice no later | 15 | | than 3 years
after the date the return was filed. Upon receipt | 16 | | of any notice and demand
there shall be paid
at the place and | 17 | | time stated in such notice the amount stated in such
notice. | 18 | | Such notice shall be left at the dwelling or usual place of | 19 | | business
of such person or shall be sent by mail to the | 20 | | person's last known address.
| 21 | | (b) Judicial review. In the case of a deficiency deemed | 22 | | assessed under
Section 903(a)(2) after the filing of a | 23 | | protest, notice and demand shall
not be made with respect to |
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| 1 | | such assessment until all proceedings in court
for the review | 2 | | of such assessment have terminated or the time for the
taking | 3 | | thereof has expired without such proceedings being instituted.
| 4 | | (c) Action for recovery of taxes. At any time that the | 5 | | Department might
commence proceedings for a levy under Section | 6 | | 1109, regardless of whether a
notice of lien was filed under | 7 | | the provisions of Section 1103, it may bring an
action in any | 8 | | court of competent jurisdiction within or without this State
| 9 | | in the name of the people of this State to recover the amount | 10 | | of any taxes,
penalties and interest due and unpaid under this | 11 | | Act. In such action, the
certificate of the Department showing | 12 | | the amount of the delinquency shall
be prima facie evidence of | 13 | | the correctness of such amount, its assessment
and of the | 14 | | compliance by the Department with all the provisions of this | 15 | | Act.
| 16 | | (d) Sales or transfers outside the usual course of
| 17 | | business-Report-Payment of Tax - Rights and duties of | 18 | | purchaser or
transferee - penalty. If any taxpayer, outside | 19 | | the usual course of his
business, sells or transfers the major | 20 | | part of any one or more of (A) the
stock of goods which he is | 21 | | engaged in the business of selling, or (B) the
furniture or | 22 | | fixtures, or (C) the machinery and equipment, or (D) the real
| 23 | | property, of any business that is subject to the provisions of | 24 | | this Act,
the purchaser or transferee of such assets shall, no | 25 | | later than 10 business days
before the sale or transfer, file a | 26 | | notice of sale or transfer of business
assets with the
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| 1 | | Department disclosing the name and address of the
seller or | 2 | | transferor, the
name and address of the purchaser or | 3 | | transferee, the date of the sale or
transfer, a copy of the | 4 | | sales contract and financing agreements which shall
include a | 5 | | description of the property sold or transferred, the amount of
| 6 | | the purchase price or a statement of other consideration for | 7 | | the sale or
transfer, and the terms for payment of the purchase | 8 | | price, and such other
information as the Department may | 9 | | reasonably require. The notice described in this subsection | 10 | | (d) is not required if the only asset sold or transferred is | 11 | | real estate. If the purchaser or
transferee fails to file the | 12 | | above described notice of sale with the
Department within the | 13 | | prescribed time, the purchaser or transferee shall be
| 14 | | personally liable to the Department for the amount
owed | 15 | | hereunder by the seller or transferor
but unpaid, up to the
| 16 | | amount of the reasonable value of the property acquired by the | 17 | | purchaser or
transferee. The purchaser or transferee shall pay | 18 | | the Department the
amount of tax, penalties, and interest owed | 19 | | by the seller or transferor
under this Act, to the extent they | 20 | | have
not been paid by the seller or transferor. The seller or | 21 | | transferor, or
the purchaser or transferee, at least 10 | 22 | | business days before the date of the sale
or transfer, may | 23 | | notify the Department of the intended sale or transfer
and | 24 | | request the Department to make a determination as to whether | 25 | | the seller
or transferor owes any
tax, penalty or
interest due | 26 | | under this Act. The Department shall take such steps as may
be |
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| 1 | | appropriate to comply with such request.
| 2 | | Any order issued by the Department pursuant to this | 3 | | Section to withhold
from the purchase price shall be issued | 4 | | within 10 business days after the Department
receives | 5 | | notification of a sale as provided in this Section.
The | 6 | | purchaser or transferee shall withhold such portion of
the | 7 | | purchase price
as may be directed by the Department, but not to | 8 | | exceed a
minimum amount varying by type of business, as | 9 | | determined by the Department
pursuant to regulations, plus | 10 | | twice the outstanding unpaid liabilities and
twice the average | 11 | | liability of preceding filings times the number of
unfiled | 12 | | returns which were not filed when due,
to cover the amount of | 13 | | all tax, penalty, and interest due and
unpaid by the seller or | 14 | | transferor under this Act or, if the payment of
money or | 15 | | property is not involved, shall withhold the performance of | 16 | | the
condition that constitutes the consideration for the sale | 17 | | or transfer.
Within 60 business days after issuance of
the | 18 | | initial order to withhold, the Department shall provide | 19 | | written notice
to the purchaser or transferee of the actual | 20 | | amount of all taxes, penalties
and interest then due and | 21 | | whether or not additional amounts may become due
as a result of | 22 | | unpaid taxes required to be withheld by an employer, returns
| 23 | | which were not filed when due, pending assessments and audits | 24 | | not
completed. The purchaser or transferee shall continue to | 25 | | withhold the
amount directed to be withheld by the initial | 26 | | order or such lesser amount
as is specified by the final |
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| 1 | | withholding order or to withhold the
performance of the | 2 | | condition which constitutes the consideration for the
sale or | 3 | | transfer
until
the purchaser or transferee receives from the | 4 | | Department a certificate showing
that no unpaid tax, penalty | 5 | | or interest is due from the seller
or transferor under this | 6 | | Act.
| 7 | | The purchaser or transferee is relieved of any duty to | 8 | | continue to
withhold from the purchase price and of any | 9 | | liability for tax, penalty,
or interest due hereunder from the | 10 | | seller or transferor if the Department
fails to notify the | 11 | | purchaser or transferee in the manner provided
herein of the | 12 | | amount to be withheld
within 10 business days after the sale or | 13 | | transfer has been reported to the
Department or within 60 | 14 | | business days after issuance of the initial order to
withhold, | 15 | | as the case may be.
The Department shall have the right to | 16 | | determine
amounts claimed on an estimated basis to allow for | 17 | | periods for which
returns were not filed when due, pending | 18 | | assessments and audits not
completed, however the purchaser or | 19 | | transferee shall be personally liable
only for the actual | 20 | | amount due when determined.
| 21 | | If the seller or transferor has failed to pay the tax, | 22 | | penalty, and
interest due from him hereunder and the | 23 | | Department makes timely
claim therefor against the purchaser | 24 | | or transferee as hereinabove provided,
then the purchaser
or | 25 | | transferee shall pay to the Department the amount so withheld | 26 | | from the
purchase price. If the purchaser or transferee fails |
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| 1 | | to comply with the
requirements of this Section, the purchaser | 2 | | or transferee shall be
personally liable to the Department for | 3 | | the amount owed hereunder by
the seller or transferor up to the | 4 | | amount of the reasonable
value of the property acquired by the | 5 | | purchaser or transferee.
| 6 | | Any person who shall acquire any property or rights | 7 | | thereto which, at the
time of such acquisition, is subject to a | 8 | | valid lien in favor of the
Department, shall be personally | 9 | | liable to the Department for a sum equal to
the amount of | 10 | | taxes, penalties and interests, secured by such lien, but not
| 11 | | to exceed the reasonable value of such property acquired by | 12 | | him.
| 13 | | (Source: P.A. 102-40, eff. 6-25-21.)
| 14 | | Section 10. The Retailers' Occupation Tax Act is amended | 15 | | by changing Section 5j as follows:
| 16 | | (35 ILCS 120/5j) (from Ch. 120, par. 444j)
| 17 | | Sec. 5j. If any taxpayer, outside the usual course of his | 18 | | business, sells or
transfers the major part of any one or more | 19 | | of (A) the stock of goods which
he is engaged in the business | 20 | | of selling, or (B) the furniture or fixtures,
(C) the | 21 | | machinery and equipment, or (D) the real property, of
any | 22 | | business that is subject to the
provisions of this Act, the | 23 | | purchaser or transferee of such asset shall,
no later than 10 | 24 | | business days prior to the sale or transfer, file a
notice of |
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| 1 | | sale or transfer of business assets with the Department | 2 | | disclosing the
name and address of the seller
or transferor, | 3 | | the name and address of the purchaser or transferee, the
date | 4 | | of the sale or transfer, a copy of the sales contract and | 5 | | financing
agreements which shall include a description of the | 6 | | property sold, the
amount of the purchase price or a statement | 7 | | of other consideration for
the sale or transfer, the terms for | 8 | | payment of the purchase price, and
such other information as | 9 | | the Department
may reasonably require. The notice described in | 10 | | this paragraph is not required if the only asset sold or | 11 | | transferred is real estate. If the purchaser or transferee | 12 | | fails to file the
above described notice of sale with the | 13 | | Department within the prescribed
time, the purchaser or | 14 | | transferee shall be personally liable for the amount
owed | 15 | | hereunder by the seller or transferor to the Department up to | 16 | | the
amount of the reasonable value of the property acquired by | 17 | | the purchaser or
transferee. The seller or transferor shall | 18 | | pay the Department
the amount of tax, penalty and interest (if | 19 | | any) due from him under this
Act up to the date of the payment | 20 | | of tax. The seller or
transferor, or the purchaser
or | 21 | | transferee, at least 10 business days before the date of the | 22 | | sale or transfer,
may notify the Department of the intended | 23 | | sale or transfer and request the
Department to audit the books | 24 | | and records of the seller or transferor, or
to do whatever else | 25 | | may be necessary to determine how much the seller or
| 26 | | transferor owes to the Department hereunder up to the date of |
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| 1 | | the sale or
transfer. The Department shall take such steps as | 2 | | may be appropriate to
comply with such request.
| 3 | | Any order issued by the Department pursuant to this | 4 | | Section to withhold
from the purchase price shall be issued | 5 | | within 10 business days after the Department
receives | 6 | | notification of a sale as provided in this Section.
The | 7 | | purchaser or transferee shall withhold such portion of
the | 8 | | purchase price
as may be directed by the Department, but not to | 9 | | exceed a
minimum amount varying by type of business, as | 10 | | determined by the Department
pursuant to regulations, plus | 11 | | twice the outstanding unpaid liabilities and
twice the average | 12 | | liability of preceding filings times the number of
unfiled | 13 | | returns,
to cover the amount of all tax, penalty and interest | 14 | | due and unpaid by the
seller or transferor under this Act or, | 15 | | if the payment of money or property
is not involved, shall | 16 | | withhold the performance of the condition that
constitutes the | 17 | | consideration for the sale or transfer. Within 60
business | 18 | | days after issuance of the initial order to
withhold, the | 19 | | Department shall provide written notice to the purchaser or
| 20 | | transferee of the actual amount of all taxes, penalties and | 21 | | interest then
due and whether or not additional amounts may | 22 | | become due as a result of
unfiled returns, pending assessments | 23 | | and audits not completed. The
purchaser or transferee shall | 24 | | continue to withhold the amount directed to
be withheld by the | 25 | | initial order or such lesser amount as is specified by
the | 26 | | final withholding order or to withhold the performance of the |
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| 1 | | condition
which constitutes the consideration for the sale or | 2 | | transfer
until the
purchaser or transferee receives from the | 3 | | Department a certificate showing
that such tax,
penalty and | 4 | | interest have been paid or a certificate from the Department
| 5 | | showing that no tax, penalty or interest is due from the seller | 6 | | or
transferor under this Act.
| 7 | | The purchaser or transferee is relieved of any duty to | 8 | | continue to withhold from the
purchase price and of any | 9 | | liability for tax, penalty or interest due
hereunder from the | 10 | | seller or transferor if the Department fails to notify
the | 11 | | purchaser or transferee in the manner provided herein of the | 12 | | amount
to be withheld within 10 business days after the sale
or | 13 | | transfer has been reported to the Department or within 60 | 14 | | business days after
issuance of the initial order to withhold, | 15 | | as the case may be.
The Department shall have the right to | 16 | | determine amounts claimed on an
estimated basis to allow for | 17 | | non-filed periods, pending assessments and
audits not | 18 | | completed, however the purchaser or transferee shall be
| 19 | | personally liable only for the actual amount due when | 20 | | determined.
| 21 | | If the seller or transferor fails to pay the tax, penalty | 22 | | and interest
(if any) due from him hereunder and the | 23 | | Department makes timely claim
therefor against the purchaser | 24 | | or transferee as hereinabove provided, then
the purchaser or | 25 | | transferee shall pay the amount so withheld from the
purchase | 26 | | price to the Department. If the purchaser or transferee fails |
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| 1 | | to
comply with the requirements of this Section, the purchaser | 2 | | or transferee
shall be personally liable to the Department for | 3 | | the amount owed hereunder
by the seller or transferor to the | 4 | | Department up to the amount of the
reasonable value of the | 5 | | property acquired by the purchaser or transferee.
| 6 | | Any person who shall acquire any property or rights | 7 | | thereto which, at
the time of such acquisition, is subject to a | 8 | | valid lien in favor of the
Department shall be personally | 9 | | liable to the Department for a sum equal to
the amount of taxes | 10 | | secured by such lien but not to exceed the reasonable
value of | 11 | | such property acquired by him.
| 12 | | (Source: P.A. 100-1171, eff. 1-4-19.)
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.
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