SB 18 — TAX DELINQUENCY AMNESTY ACT

093_SB0018SB18 Engrossed LRB093 02605 SJM 02615 b AN ACT in relation to taxes.

"Taxpayer" means any person, corporation, or other entity subject to any taxtax, except for the motor fuel use tax, imposed by any law of the State of Illinois and payable to the State of Illinois.

AmnestyThe taxamnesty returnprogram forms shall be prepared by the Department and shall provide for specificationa by the taxpayer of the tax and the taxable period forfrom whichSeptember amnesty1, is2003 beingthrough soughtNovember by15, the2003. taxpayer.

The amnesty program shall beprovide forthat, upon payment by a periodtaxpayer of all taxes due from Octoberthat 1,taxpayer 2003to thoughthe NovemberState of Illinois for any taxable period ending after June 30, 2003.1983 and prior to July 1, 2002, the Department shall abate and not seek to collect any interest or penalties that may be applicable and the Department shall not seek civil or criminal prosecution for any taxpayer for the period of time for which amnesty has been granted to the taxpayer.

TheFailure amnestyto programpay shall provide that, upon written application by any taxpayer and payment by that taxpayer of all taxes due from that taxpayer to the State of Illinois for anya taxable period ending prior to July 1, 2002, the Department shall notSB18 seekEngrossed to collect any interest or penalties that may be applicable and the Department shall not -2- LRB093 02605 SJM 02615 b seekinvalidate civil or criminal prosecution for any taxpayer for the period of time for which amnesty has been granted tounder thethis taxpayer.Act.

FailureAmnesty toshall paybe allgranted taxesonly dueif toall theamnesty Stateconditions shallare invalidatesatisfied anyby amnestythe grantedtaxpayer. under this Act.

Amnesty shall be granted for only the taxable periods specified in the application and only if all amnesty conditions are satisfied by the taxpayer.

Voluntary payments made under this Act shall be made by cash, check, guaranteed remittance, or ACH debit.

AllExcept moneyas collectedotherwise underprovided in this ActSection, pursuantall tomoney acollected Stateunder imposedthis tax,Act otherthat thanwould theotherwise taxbe imposeddeposited pursuantinto to subsections (c) and (d) of Section 201 of the IllinoisGeneral IncomeRevenue TaxFund Act, shall be deposited as follows:

Two percent of all money collected under this Act shall be deposited by the State Treasurer into the Tax Compliance and Administration Fund and, subject to appropriation, shall be used by the Department to cover costs associated with the administration of this Act.

(a) Interest paid by the Department to taxpayers and interest charged to taxpayers by the Department shall be paid SB18 Engrossed -3- LRB093 02605 SJM 02615 b at the annual rate determined by the Department.

That rate -3- LRB093 02605 SJM 02615 b shall be the underpayment rate established under Section 6621 of the Internal Revenue Code.

In order for an original return to be processable for purposes of this Section, it must be in the SB18 Engrossed -4- LRB093 02605 SJM 02615 b form prescribed or approved by the Department, signed by the -4- LRB093 02605 SJM 02615 b person authorized by law, and contain all information, schedules, and support documents necessary to determine the tax due and to make allocations of tax as prescribed by law.

_f_____________________a______________________t______________f______________________a______________________i____________ _____m_____________________D______________________A__________________a_____________________T______________________y_____________ _____y_____________________f______________________y__________________y_____________________y________________________d___________ _____t_____________________r______________________t__________________t______________________f______________________t____________ _____e_____________________u______________________l_____________ _______r___________________o_______________________o_________________r_____________________t______________________o_____________ _____e_____________________._SB18 Engrossed -5- LRB093 02605 SJM 02615 b _____e_____________________._ (Source:

A penalty equal to 2% of the tax required to be shown due on a return, up to a maximum amount of $250, determined without regard to any part of the tax that is paid on time or by any credit that was properly allowable on the date the return was required to be filed, shall be imposed for failure to file the tax return on or before the due date prescribed for filing determined with regard for any extension of time SB18 Engrossed -6- LRB093 02605 SJM 02615 b for filing.

However, if any return is not filed within 30 -6- LRB093 02605 SJM 02615 b days after notice of nonfiling mailed by the Department to the last known address of the taxpayer contained in Department records, an additional penalty amount shall be imposed equal to the greater of $250 or 2% of the tax shown on the return.

However, if any return is not filed within 30 days after notice of nonfiling mailed by the Department to the last known address of the taxpayer contained in Department SB18 Engrossed -7- LRB093 02605 SJM 02615 b records, an additional penalty amount shall be imposed equal -7- LRB093 02605 SJM 02615 b to the greater of $250 or 2% of the tax shown on the return.

or (2) the full amount of any tax required to be shown due on a return and which is not shown (penalty for late payment or nonpayment of additional liability), within 30 SB18 Engrossed -8- LRB093 02605 SJM 02615 b days after a notice of arithmetic error, notice and -8- LRB093 02605 SJM 02615 b demand, or a final assessment is issued by the Department.

In the case of a final assessment arising following a protest and hearing, the 30-day period shall not begin until all proceedings in court for review of the final assessment have terminated or the period for obtaining a review has expired without proceedings for a SB18 Engrossed -9- LRB093 02605 SJM 02615 b review having been instituted.

In the case of a notice -9- LRB093 02605 SJM 02615 b of tax liability that becomes a final assessment without a protest and hearing, the penalty provided in this paragraph (2) shall be imposed at the expiration of the period provided for the filing of a protest.

(2) the full amount of any tax required to be shown due on a return and that is not shown (penalty for late payment or nonpayment of additional liability), within 30 days after a notice of arithmetic error, notice and SB18 Engrossed -10- LRB093 02605 SJM 02615 b demand, or a final assessment is issued by the -10- LRB093 02605 SJM 02615 b Department.

If both a subsection (b-10)(1) penalty and a subsection (b-10)(2) penalty are assessed against the same return, the subsection (b-10)(2) penalty shall be assessed against only the additional tax found to be SB18 Engrossed -11- LRB093 02605 SJM 02615 b due.

-11- LRB093 02605 SJM 02615 b (f) If the taxpayer has failed to file the return, the Department shall determine the correct tax according to its best judgment and information, which amount shall be prima facie evidence of the correctness of the tax due.

_i______________________a______________________i_____________i_____________________a______________________t_____________ _____a_____________________T______________________y__________________m_____________________D______________________A_____________ _____y_____________________y________________________d________________y_____________________f______________________y_____________ _____t______________________f_____________________n__________________t_____________________r_______________________t____________ _____e_____________________u______________________l_____________ ______a____________________o______________________l__________________n______________________o_____________________u_____________ _____p_____________________i____ (Source:

Unless otherwise provided in a tax Act, in the case of a failure described in paragraph (2) of this subsection (a) by any person with respect to an information return, that person shall pay a penalty of $5 for each return or statement with respect to which the failure occurs, but the total amount imposed on that SB18 Engrossed -12- LRB093 02605 SJM 02615 b person for all such failures during any calendar year -12- LRB093 02605 SJM 02615 b shall not exceed $25,000.

_d_____________________a______________________t______________d______________________a______________________i____________ _____m_____________________D______________________A__________________a_____________________T______________________y_____________ _____y_____________________f______________________y__________________y_____________________y________________________d___________ _____t_____________________r_______________________t_________________t______________________f_____________________n_____________ _____e_____________________u______________________l_____________ _____n______________________o_____________________u___________________a____________________o______________________l_____________ _____p_____________________i____ (Source:

87-205.) SB18 Engrossed -13- LRB093 02605 SJM 02615 b (35 ILCS 735/3-5) (from Ch.

2603-5) -13- LRB093 02605 SJM 02615 b Sec.

_d_____________________a______________________t______________d______________________a______________________i____________ _____m_____________________D______________________A__________________a_____________________T______________________y_____________ _____y_____________________f______________________y__________________y_____________________y________________________d___________ _____t_____________________r_______________________t_________________t______________________f_____________________n_____________ _____e______________________s_____________________n__________________e_____________________s_______________________a____________ _____0_______________________w______________________i________________0______________________t_____________________b_____________ _____d_____________________o___ (Source:

_c_____________________a______________________t_____________SB18 Engrossed -14- LRB093 02605 SJM 02615 b _____m_____________________D______________________A______________c______________________a______________________i____________ _____y_____________________f______________________y__________________a_____________________T______________________y_____________ _____t_____________________r_______________________t_________________y_____________________y________________________d___________ _____t______________________f_____________________n_____________ _____e_____________________u______________________l_____________ _____n______________________o_____________________u___________________a____________________o______________________l_____________ _____p_____________________i____ (Source:

_b_____________________a______________________t______________b______________________a______________________i____________ _____m_____________________D______________________A__________________a_____________________T______________________y_____________ _____y_____________________f______________________y__________________y_____________________y________________________d___________ _____t_____________________r_______________________t_________________t______________________f_____________________n_____________ _____e_____________________u______________________l_____________ _____n______________________o_____________________u___________________a____________________o______________________l_____________ _____p_____________________i____ (Source: