Public Act 099-0641
Public Act 0641 99TH GENERAL ASSEMBLY
|Public Act 099-0641|
|HB5527 Enrolled||LRB099 16232 HLH 40562 b|
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
This Act may be cited as the
Tax Preparer Oversight Act.
As used in this Act:
"Department" means the Department of Revenue.
"Income tax return preparer" has the meaning ascribed to
that term in Section
1501 of the Illinois Income Tax Act.
"PTIN" means a Preparer Tax Identification Number, as
defined in Internal Revenue Service Notice 2011-6.
Powers and duties of the Department.
(a) For taxable years beginning on or after January 1,
2017, the Department shall, by rule, require any income tax
return preparer, as defined in Section
1501 of the Illinois
Income Tax Act, to include his or her PTIN on any tax return
prepared by the income tax return preparer and filed under the
Illinois Income Tax Act or any claim for refund of tax imposed
by the Illinois Income Tax Act.
(b) The Department shall develop and by rule implement a
program using the PTIN as an oversight mechanism to assess
returns, to identify high error rates, patterns of suspected
fraud, and unsubstantiated basis for tax positions by income
tax return preparers.
(c) The Department shall, by rule, establish formal and
regular communication protocols with the Commissioner of the
Internal Revenue Service to share and exchange PTIN information
on income tax return preparers who are suspected of fraud,
disciplined, or barred from filing tax returns with the
Department or the Internal Revenue Service. The Department may,
by rule, establish additional communication protocols with
other states to exchange similar enforcement or discipline
(a) The Department may investigate the actions of any
income tax return preparer doing business in the State and may
bar or suspend an income tax return preparer from filing
returns with the Department for good cause.
(b) In addition to any other penalty provided by law, any
individual or person violating this Act by failing to provide
his or her PTIN shall pay a civil penalty to the Department in
the amount of $50 per offense, but not to exceed $25,000 per
calendar year; however, no such penalty shall be imposed if it
is shown that the failure is due to reasonable cause and not
due to willful neglect, as determined by the Department.
(c) The Department shall, before taking any disciplinary
action against an income tax return preparer under this
Section, hold a hearing in accordance with this Act. The
at least 30 days before the date set for the
hearing, (i) notify the accused in writing of the charges made
and the time and place for the hearing on the charges, (ii)
direct him or her to file a written answer to the charges with
the Department under oath within 20 days after the service on
him or her of the notice, and (iii) inform the accused that, if
he or she fails to answer, disciplinary action shall be taken
against him or her, as the Department may consider proper.
(d) At the time and place fixed in the notice, the
Department shall proceed to hear the charges and the parties or
their counsel shall be accorded ample opportunity to present
any pertinent statements, testimony, evidence, and arguments.
The Department may continue the hearing from time to time.
(e) In case the person, after receiving the notice, fails
to file an answer, he or she may be subject to the disciplinary
action set forth in the notice. The written notice may be
served by registered or certified mail to the person's address
(f) All final administrative decisions of the Department
under this Section shall be subject to judicial review pursuant
to the provisions of the Administrative Review Law. The term
"administrative decision" is defined as in Section 3-101 of the
Code of Civil Procedure. Proceedings for judicial review shall
be commenced in the Circuit Court of the county in which the
party applying for review resides; provided, that if such party
is not a resident of this State, the venue shall be in Sangamon
or Cook County.
(g) The Department shall not be required to certify any
record to the court or file any answer in court or otherwise
appear in any court in a judicial review proceeding, unless and
until the Department has received from the plaintiff payment of
the costs of furnishing and certifying the record, which costs
shall be established by the Department. Exhibits shall be
certified without cost. Failure on the part of the plaintiff to
file such receipt in court shall be grounds for dismissal of
The Department shall adopt rules
consistent with the provisions of this Act for the
administration and enforcement of this Act.
The Illinois Income Tax Act is amended by
changing Section 503 as follows:
(35 ILCS 5/503)
(from Ch. 120, par. 5-503)
Signing of Returns and Notices.
(a) Signature presumed authentic. The fact that an
is signed to a return or notice shall be
prima facie evidence for all
purposes that such document was
actually signed by such individual. If a
return is prepared by
an income tax return preparer for a taxpayer, that
shall sign the return as the preparer of that return
include his or her PTIN, as defined in the State Tax Preparer
Oversight Act, on the return
If a return is transmitted to the
Department electronically, the
Department may presume that the
electronic return originator has obtained
and is transmitting a
valid signature document pursuant to the rules
the Department for the electronic filing of tax returns, or
Department may authorize electronic return originators to
signature documents and associated documentation,
subject to the Department's
right of inspection at any time
without notice, rather than transmitting those
documents to the
the Department may process the return.
(b) Corporations. A return or notice required of a
be signed by the president, vice-president,
treasurer or any other officer
duly authorized so to act or, in
the case of a limited liability company, by
a manager or
member. In the case of a return or notice made for a
corporation by a fiduciary pursuant to the provisions of
(4), such fiduciary shall sign such document.
The fact that an
individual's name is signed to a return or
notice shall be prima facie
evidence that such individual is
authorized to sign such document on behalf
of the corporation.
(c) Partnerships. A return or notice of a partnership shall
by any one of the partners or, in the case of a
limited liability company, by
a manager or member. The fact
that a partner's name is signed to a
return or notice shall be
prima facie evidence that such individual is
authorized to sign
such document on behalf of the partnership or limited
(d) Joint fiduciaries. A return or notice signed by one of
more joint fiduciaries will comply with the requirements
of this Act. The
fact that a fiduciary's name is signed to such
document shall be prima
facie evidence that such fiduciary is
authorized to sign such document on
behalf of the person from
whom it is required.
(e) Failure to sign a return. If a taxpayer fails to sign a
within 30 days after proper notice and demand for
Department, the return shall be considered
valid and any amount shown to be
due on the return shall be
deemed assessed. Any overpayment of tax shown
on the face of an
unsigned return shall be considered forfeited if after
and demand for signature by the Department the taxpayer fails
provide a signature and 3 years have passed from the date
the return was
filed. An overpayment of tax refunded to a
taxpayer whose return was
filed electronically shall be
considered an erroneous refund under Section
912 of this Act
if, after proper notice and demand by the
taxpayer fails to provide a required signature document.
notice and demand for signature in the case of a return
reflecting an overpayment may be made by first class mail. This
(e) shall apply to all returns filed pursuant to the
Illinois Income Tax Act
(Source: P.A. 88-480; 88-672, eff. 12-14-94; 89-379, eff.
eff. 8-20-95; 89-626, eff. 8-9-96.)
Effective Date: 1/1/2017