Full Text of HB4824 94th General Assembly
HB4824 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB4824
Introduced 01/18/06, by Rep. John D'Amico SYNOPSIS AS INTRODUCED: |
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35 ILCS 5/1109 |
from Ch. 120, par. 11-1109 |
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Amends the Illinois Income Tax Act. In a Section concerning demands and seizures, sets forth procedures for financial institutions to surrender, to the Department of Revenue, funds that are subject to a levy for the nonpayment of taxes.
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A BILL FOR
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HB4824 |
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LRB094 17532 BDD 52828 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Income Tax Act is amended by | 5 |
| changing Section 1109 as follows:
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| (35 ILCS 5/1109) (from Ch. 120, par. 11-1109)
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| Sec. 1109. Demand and Seizure. In addition to any other | 8 |
| remedy
provided for by the laws of this State, if the tax | 9 |
| imposed by this Act
is not paid within the time required by | 10 |
| this Act, the Department, or
some person designated by it, may | 11 |
| cause a demand to be made on the
taxpayer for the payment | 12 |
| thereof. If such tax remains unpaid for 10
days after such | 13 |
| demand has been made and no proceedings have been taken
to | 14 |
| review the same, the Department may issue a warrant directed to | 15 |
| any
sheriff or other person authorized to serve process, | 16 |
| commanding the
sheriff or other person to levy upon the | 17 |
| property and rights to property
(whether real or personal, | 18 |
| tangible or intangible) of the taxpayer, without
exemption, | 19 |
| found within his jurisdiction, for the payment of the amount
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| thereof with the added penalties, interest and the cost of | 21 |
| executing the
warrant. The term "levy" includes the power of | 22 |
| distraint and seizure by any
means. In any case in which the | 23 |
| warrant to levy has been issued, the
sheriff or other person to | 24 |
| whom the warrant was directed may seize and sell
such property | 25 |
| or rights to property. Such warrant
shall be returned to the | 26 |
| Department together with the money collected by
virtue thereof | 27 |
| within the time therein specified, which shall not be
less than | 28 |
| 20 nor more than 90 days from the date of the warrant. The
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| sheriff or other person to whom such warrant is directed shall | 30 |
| proceed in the
same manner as prescribed by law in respect to | 31 |
| the enforcement against
property upon judgments by a court, and | 32 |
| shall be entitled to the same
fees for his services in |
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HB4824 |
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LRB094 17532 BDD 52828 b |
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| executing the warrant, to be collected in the
same manner. The | 2 |
| Department, or some officer, employee or agent
designated by | 3 |
| it, is hereby authorized to bid for and purchase any
property | 4 |
| sold under the provisions hereof. No proceedings for a levy
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| under this Section shall be commenced more than 20 years after | 6 |
| the latest
date for filing
of the notice of lien under the | 7 |
| provisions of Section 1103, without regard
to whether such | 8 |
| notice was actually filed.
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| Any officer or employee of the Department designated in | 10 |
| writing by the
Director is authorized to serve process under | 11 |
| this Section to levy upon
accounts or other intangible assets | 12 |
| of a taxpayer held by a financial
organization, as defined in | 13 |
| Section 1501 of this Act.
A Notice of Levy shall be served on | 14 |
| the financial organization and shall require the financial | 15 |
| organization to place a hold on funds in the taxpayer's | 16 |
| accounts as of the time that the financial organization | 17 |
| receives the Notice of Levy or on the rights to payment on | 18 |
| intangible assets of the taxpayer that are in the possession or | 19 |
| under control of the financial organization as of the time that | 20 |
| the financial organization receives the Notice of Levy, up to | 21 |
| the amount stated in the Notice of Levy. The financial | 22 |
| organization shall surrender to the Department the funds, | 23 |
| including interest earned on the funds, that were in the | 24 |
| accounts or other assets or rights to payment that were subject | 25 |
| to the levy as of the time that the financial organization | 26 |
| received the Notice of Levy. The funds, assets, or rights to | 27 |
| payment are transferable to the Department by the financial | 28 |
| organization on the date or after the time period specified in | 29 |
| the Notice of Levy. In addition to any other provisions of this | 30 |
| Section, any officer or
employee of the Department designated | 31 |
| in writing by the Director may levy
upon the following property | 32 |
| and rights to property belonging to a taxpayer:
contractual | 33 |
| payments, accounts and notes receivable and other evidences of
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| debt, and interest on bonds, by serving a notice of levy on the | 35 |
| person
making such payment. Levy shall not be made until the | 36 |
| Department has
caused a demand to be made on the taxpayer in |
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HB4824 |
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LRB094 17532 BDD 52828 b |
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| the manner provided above.
In addition to any
other provisions
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| of this Section, any officer or employee of the Department | 3 |
| designated in
writing by the Director, may levy upon the | 4 |
| salary, wages, commissions and
bonuses of any employee, | 5 |
| including
officers,
employees, or elected officials of the | 6 |
| United States as authorized by
Section
5520a of the Government | 7 |
| Organization and Employees Act (5 U.S.C. 5520a), but
not upon | 8 |
| the salary or wages of officers, employees, or elected | 9 |
| officials of
any state other than this State, by serving a | 10 |
| notice of levy on the employer, as defined in
Section 701(d). | 11 |
| Levy shall not be made until the Department has caused a
demand | 12 |
| to be made on the employee in the manner provided above. The
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| provisions of Section 12-803 of the Code of Civil Procedure | 14 |
| relating to
maximum compensation subject to collection under | 15 |
| wage deduction orders shall
apply to all levies made upon | 16 |
| compensation
under this Section.
To the extent of the amount | 17 |
| due on the levy, the employer or other person
making payments | 18 |
| to the taxpayer shall hold any non-exempt wages or other
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| payments due or which subsequently come due. The levy or | 20 |
| balance due
thereon is a lien on wages or other payments due at | 21 |
| the time of the service
of the notice of levy, and such lien | 22 |
| shall continue as to subsequent
earnings and other payments | 23 |
| until the total amount due upon the levy is
paid, except that | 24 |
| such lien on subsequent earnings or other payments shall
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| terminate sooner if the employment relationship is terminated | 26 |
| or if the
notice of levy is rescinded or modified. The employer | 27 |
| or other person making
payments to the taxpayer shall file, on | 28 |
| or before the return dates stated
in the notice of levy (which | 29 |
| shall not be more often than bimonthly) a
written answer under | 30 |
| oath to interrogatories, setting forth the amount due
as wages | 31 |
| or other payments to the taxpayer for the payment periods | 32 |
| ending
immediately prior to the appropriate return date. A lien | 33 |
| obtained
hereunder shall have priority over any subsequent lien | 34 |
| obtained pursuant to
Section 12-808 of the Code of Civil | 35 |
| Procedure, except that liens for the
support of a spouse or | 36 |
| dependent children shall have priority over all
liens obtained |
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LRB094 17532 BDD 52828 b |
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| hereunder.
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| In any case where property or rights to property have been | 3 |
| seized by an
officer of the Illinois Department of State | 4 |
| Police, or successor agency
thereto, under the authority of a | 5 |
| warrant to levy issued by the Department
of Revenue, the | 6 |
| Department of Revenue may take possession of and may sell
such | 7 |
| property or rights to property and the Department of Revenue | 8 |
| may
contract with third persons to conduct sales of such | 9 |
| property or rights to
the property. In the conduct of such | 10 |
| sales, the Department of Revenue
shall proceed in the same | 11 |
| manner as is prescribed by law for proceeding
against property | 12 |
| to enforce judgments which are entered by a circuit court
of | 13 |
| this State. If, in the Department of Revenue's opinion, no | 14 |
| offer to
purchase at such sale is acceptable and the State's | 15 |
| interest would be
better served by retaining the property for | 16 |
| sale at a later date, then the
Department may decline to accept | 17 |
| any bid and may retain the property for
sale at a later date.
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| (Source: P.A. 89-399, eff. 8-20-95.)
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