There Is a Newer Version of the Illinois Compiled Statutes
2005 Illinois Code - 35 ILCS 5/ Illinois Income Tax Act. Article 9 - Procedure And Administration
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(2) Beginning on January 1, 1989 and thereafter, the | ||
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(3) The Comptroller shall order transferred and the | ||
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(d) Expenditures from Income Tax Refund Fund.
(1) Beginning January 1, 1989, money in the Income | ||
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(2) The Director shall order payment of refunds | ||
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(3) As soon as possible after the end of each fiscal | ||
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(4) As soon as possible after the end of each fiscal | ||
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(4.5) As soon as possible after the end of fiscal | ||
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(5) This Act shall constitute an irrevocable and | ||
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(e) Deposits into the Education Assistance Fund and the Income Tax
Surcharge Local Government Distributive Fund.
On July 1, 1991, and thereafter, of the amounts collected pursuant to
subsections (a) and (b) of Section 201 of this Act, minus deposits into the
Income Tax Refund Fund, the Department shall deposit 7.3% into the
Education Assistance Fund in the State Treasury. Beginning July 1, 1991,
and continuing through January 31, 1993, of the amounts collected pursuant to
subsections (a) and (b) of Section 201 of the Illinois Income Tax Act, minus
deposits into the Income Tax Refund Fund, the Department shall deposit 3.0%
into the Income Tax Surcharge Local Government Distributive Fund in the State
Treasury. Beginning February 1, 1993 and continuing through June 30, 1993, of
the amounts collected pursuant to subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 4.4% into the Income Tax Surcharge Local Government
Distributive Fund in the State Treasury. Beginning July 1, 1993, and
continuing through June 30, 1994, of the amounts collected under subsections
(a) and (b) of Section 201 of this Act, minus deposits into the Income Tax
Refund Fund, the Department shall deposit 1.475% into the Income Tax Surcharge
Local Government Distributive Fund in the State Treasury.
(Source: P.A. 93‑32, eff. 6‑20‑03; 93‑839, eff. 7‑30‑04; 94‑91, eff. 7‑1‑05; 94‑839, eff. 6‑6‑06.)
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(35 ILCS 5/903) (from Ch. 120, par. 9‑903)
Sec. 903.
Assessment.
(a) In general. (1) Returns. The amount of tax which is shown to
be due on the return shall be deemed assessed on the date of filing of
the return (including any amended returns showing an increase of tax).
In the event that the amount of tax is understated on the taxpayer's
return due to a mathematical error, the Department shall notify the
taxpayer that the amount of tax in excess of that shown on the return is
due and has been assessed. Such notice of additional tax due shall be issued no
later than 3 years after the date the return was filed. Such notice of
additional tax due shall not
be considered a notice of deficiency nor shall the taxpayer have any
right of protest. In the case of a return properly filed without the
computation of the tax, the tax computed by the Department shall be
deemed to be assessed on the date when payment is due.
(2) Notice of deficiency. If a notice of deficiency has been
issued, the amount of the deficiency shall be deemed assessed on the
date provided in section 904(d) if no protest is filed; or, if a protest
is filed, then upon the date when the decision of the Department becomes
final.
(3) Federal change. If an amended return or report is filed with
the Department pursuant to section 506(b), any deficiency in tax under this Act
resulting therefrom shall be deemed to be assessed on the date of filing
such report or amended return and such assessment shall be timely
notwithstanding any other provisions of this Act.
(4) Payments. Any amount paid as tax or in respect of tax paid
under this Act, other than amounts withheld or paid as estimated tax
under Articles 7 or 8, shall be deemed assessed upon the date of receipt
of payment, notwithstanding any other provisions of this Act.
(b) Limitations on assessment. No deficiency shall be assessed
with respect to a taxable year for which a return was filed unless a
notice of deficiency for such year was issued not later than the date
prescribed in section 905.
(Source: P.A. 84‑127.)
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(35 ILCS 5/904) (from Ch. 120, par. 9‑904)
Sec. 904.
Deficiencies and Overpayments.
(a) Examination of return. As soon as practicable after a return is
filed, the Department shall examine it to determine the correct amount of
tax. If the Department finds that the amount of tax shown on the return is
less than the correct amount, it shall issue a notice of deficiency to the
taxpayer which shall set forth the amount of tax and penalties proposed to
be assessed. If the Department finds that the tax paid is more than the
correct amount, it shall credit or refund the overpayment as provided by
Section 909. The findings of the Department under this subsection shall
be prima facie correct and shall be prima facie evidence of the correctness
of the amount of tax and penalties due.
(b) No return filed. If the taxpayer fails to file a tax return, the
Department shall determine the amount of tax due according to its best
judgment and information, which amount so fixed by the Department shall be
prima facie correct and shall be prima facie evidence of the correctness of
the amount of tax due. The Department shall issue a notice of deficiency to
the taxpayer which shall set forth the amount of tax and penalties proposed
to be assessed.
(c) Notice of deficiency. A notice of deficiency issued under this
Act shall set forth the adjustments giving rise to the proposed assessment
and the reasons therefor. In the case of a joint return, the notice of
deficiency may be a single joint notice except that if the Department is
notified by either spouse that separate residences have been established,
it shall issue joint notices to each spouse.
(d) Assessment when no protest. Upon the expiration of 60 days after
the date on which it was issued (150 days if the taxpayer is outside the
United States), a notice of deficiency shall constitute an assessment of
the amount of tax and penalties specified therein, except only for such
amounts as to which the taxpayer shall have filed a protest with the
Department, as provided in Section 908.
(Source: P.A. 87‑192; 87‑205.)
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(2) No deficiency shall be assessed or collected | ||
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(b) Substantial omission of items. (1) Omission of more than 25% of income. If the | ||
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(2) Reportable transactions. If a taxpayer fails to | ||
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(c) No return or fraudulent return. If no return is filed or a
false and fraudulent return is filed with intent to evade the tax
imposed by this Act, a notice of deficiency may be issued at any time.
(d) Failure to report federal change. If a taxpayer fails to
notify the Department in any case where notification is required by
Section 304(c) or 506(b), or fails to report a change or correction which is
treated in the same manner as if it were a deficiency for federal income
tax purposes, a notice of deficiency may be issued (i) at any time or
(ii) on or after August 13, 1999, at any time for the
taxable year for which the notification is required or for any taxable year to
which the taxpayer may carry an Article 2 credit, or a Section 207 loss,
earned, incurred, or used in the year for which the notification is required;
provided, however, that the amount of any proposed assessment set forth in the
notice shall be limited to the amount of any deficiency resulting under this
Act from the recomputation of the taxpayer's net income, Article 2 credits, or
Section 207 loss earned, incurred, or used in the taxable year for which the
notification is required after giving effect to the item or items required to
be reported.
(e) Report of federal change.
(1) Before August 13, 1999, in any case where | ||
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(2) On and after August 13, 1999, in any case where | ||
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(f) Extension by agreement. Where, before the expiration of the
time prescribed in this Section for the issuance of a notice of
deficiency, both the Department and the taxpayer shall have consented in
writing to its issuance after such time, such notice may be issued at
any time prior to the expiration of the period agreed upon.
In the case of a taxpayer who is a partnership, Subchapter S corporation, or
trust and who enters into an agreement with the Department pursuant to this
subsection on or after January 1, 2003, a notice of deficiency may be issued to
the partners, shareholders, or beneficiaries of the taxpayer at any time prior
to the expiration of the period agreed upon. Any
proposed assessment set forth in the notice, however, shall be limited to the
amount of
any deficiency resulting under this Act from recomputation of items of income,
deduction, credits, or other amounts of the taxpayer that are taken into
account by the partner, shareholder, or beneficiary in computing its liability
under this Act.
The period
so agreed upon may be extended by subsequent agreements in writing made
before the expiration of the period previously agreed upon.
(g) Erroneous refunds. In any case in which there has been an
erroneous refund of tax payable under this Act, a notice of deficiency
may be issued at any time within 2 years from the making of such refund,
or within 5 years from the making of such refund if it appears that any
part of the refund was induced by fraud or the misrepresentation of a
material fact, provided, however, that the amount of any proposed
assessment set forth in such notice shall be limited to the amount of
such erroneous refund.
Beginning July 1, 1993, in any case in which there has been a refund of tax
payable under this Act attributable to a net loss carryback as provided for in
Section 207, and that refund is subsequently determined to be an erroneous
refund due to a reduction in the amount of the net loss which was originally
carried back, a notice of deficiency for the erroneous refund amount may be
issued at any time during the same time period in which a notice of deficiency
can be issued on the loss year creating the carryback amount and subsequent
erroneous refund. The amount of any proposed assessment set forth in the notice
shall be limited to the amount of such erroneous refund.
(h) Time return deemed filed. For purposes of this Section a tax
return filed before the last day prescribed by law (including any
extension thereof) shall be deemed to have been filed on such last day.
(i) Request for prompt determination of liability. For purposes
of subsection (a)(1), in the case of a tax return required under this
Act in respect of a decedent, or by his estate during the period of
administration, or by a corporation, the period referred to in such
Subsection shall be 18 months after a written request for prompt
determination of liability is filed with the Department (at such time
and in such form and manner as the Department shall by regulations
prescribe) by the executor, administrator, or other fiduciary
representing the estate of such decedent, or by such corporation, but
not more than 3 years after the date the return was filed. This
subsection shall not apply in the case of a corporation unless:
(1) (A) such written request notifies the Department | ||
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(2) (A) such written request notifies the Department | ||
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(3) a dissolution has been completed at the time | ||
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(j) Withholding tax. In the case of returns required under Article 7
of this Act (with respect to any amounts withheld as tax or any amounts
required to have been withheld as tax) a notice of deficiency shall be
issued not later than 3 years after the 15th day of the 4th month
following the close of the calendar year in which such withholding was
required.
(k) Penalties for failure to make information reports. A notice of
deficiency for the penalties provided by Subsection 1405.1(c) of this Act may
not be issued more than 3 years after the due date of the reports with respect
to which the penalties are asserted.
(l) Penalty for failure to file withholding returns. A notice of deficiency
for penalties provided by Section 1004 of this Act for taxpayer's failure
to file withholding returns may not be issued more than three years after
the 15th day of the 4th month following the close of the calendar year in
which the withholding giving rise to taxpayer's obligation to file those
returns occurred.
(m) Transferee liability. A notice of deficiency may be issued to a
transferee relative to a liability asserted under Section 1405 during time
periods defined as follows:
1) Initial Transferee. In the case of the liability | ||
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2) Transferee of Transferee. In the case of the | ||
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(n) Notice of decrease in net loss. On and after August 23, 2002, no notice of deficiency shall
be issued as the result of a decrease determined by the Department in the net
loss incurred by a taxpayer in any taxable year ending prior to December 31, 2002 under Section 207 of this Act unless the Department
has notified the taxpayer of the proposed decrease within 3 years after the
return reporting the loss was filed or within one year after an amended return
reporting an increase in the loss was filed, provided that in the case of an
amended return, a decrease proposed by the Department more than 3 years after
the original return was filed may not exceed the increase claimed by the
taxpayer on the original return.
(Source: P.A. 93‑840, eff. 7‑30‑04; 94‑836, eff. 6‑6‑06.)
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(35 ILCS 5/906) (from Ch. 120, par. 9‑906)
Sec. 906.
Further Notices of Deficiency Restricted.
If a protest has been filed with respect to a notice of deficiency
issued by the Department with respect to a taxable year, and the decision
of the Department on such protest has become final, the Department shall be
barred from issuing a further or additional notice of deficiency for such
taxable year, except in the case of fraud, mathematical error, a return that
is not considered processable, as the term is defined in Section 3‑2 of the
Uniform Penalty and Interest Act, or as
provided in section 905(d), (e), or (g).
(Source: P.A. 89‑399, eff. 8‑20‑95.)
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(35 ILCS 5/907) (from Ch. 120, par. 9‑907)
Sec. 907.
Waiver
of Restrictions on Assessment.
The taxpayer at any time, whether or not a notice of deficiency has been
issued, shall have the right to waive the restrictions on assessment and
collection of the whole or any part of any proposed assessment under this
Act by a signed notice in writing filed with the Department in such form as
the Department may by forms or regulations prescribe.
(Source: P. A. 76‑261.)
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(35 ILCS 5/908) (from Ch. 120, par. 9‑908)
Sec. 908.
Procedure on protest.
(a) Time for protest. Within 60 days (150 days if the taxpayer is
outside the United States) after the issuance of a notice of deficiency,
the taxpayer may file with the Department a written protest against the
proposed assessment in such form as the Department may by regulations
prescribe, setting forth the grounds on which such protest is based. If a
protest is filed, the Department shall reconsider the proposed assessment
and, if the taxpayer has so requested, shall grant the taxpayer or his
authorized representative a hearing.
(b) Notice of decision. As soon as practicable after such
reconsideration and hearing, if any, the Department shall issue a notice of
decision by mailing such notice by certified or registered mail. Such
notice shall set forth briefly the Department's findings of fact and the
basis of decision in each case decided in whole or in part adversely to the
taxpayer.
(c) Request for rehearing. Within 30 days after the mailing of a
notice of decision, the taxpayer may file with a Department a written
request for rehearing in such form as the Department may by regulations
prescribe, setting forth the grounds on which rehearing is requested. In
any such case, the Department shall, in its discretion, grant either a
rehearing or Departmental review unless, within 10 days of receipt of such
request, it shall issue a denial of such request by mailing such denial to
the taxpayer by certified or registered mail. If rehearing or Departmental
review is granted, as soon as practicable after such rehearing or
Departmental review, the Department shall issue a notice of final decision
as provided in subsection (b).
(d) Finality of decision. The action of the Department on the
taxpayer's protest shall become final:
(1) 30 Days after issuance of a notice of decision | ||
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(2) if a timely request for rehearing was made, upon | ||
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(Source: P.A. 87‑192; 87‑205.)
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(35 ILCS 5/909) (from Ch. 120, par. 9‑909)
Sec. 909.
Credits and Refunds.
(a) In general. In the case of any overpayment, the Department may
credit the amount of such overpayment, including any interest allowed
thereon, against any liability in respect of the tax imposed by this Act,
regardless of whether other collection remedies are closed to the
Department on the part of the person who made the overpayment and shall
refund any balance to such person.
(b) Credits against estimated tax. The Department may
prescribe regulations providing for the crediting against the estimated tax
for any taxable year of the amount determined by the taxpayer or the
Department to be an overpayment of the tax imposed by this Act for a
preceding taxable year.
(c) Interest on overpayment. Interest shall be allowed and paid at the
rate and in the manner prescribed in Section 3‑2 of the Uniform Penalty and
Interest Act upon any overpayment in respect of the tax imposed by this
Act. For purposes of this subsection, no amount of tax, for any taxable
year, shall be treated as having been paid before the date on which the tax
return for such year was due under Section 505, without regard to any
extension of the time for filing such return.
(d) Refund claim. Every claim for refund shall be filed with the
Department in writing in such form as the Department may by regulations
prescribe, and shall state the specific grounds upon which it is founded.
(e) Notice of denial. As soon as practicable after a claim for refund
is filed, the Department shall examine it and either issue a notice of
refund, abatement or credit to the claimant or issue a notice of denial.
If the Department has failed to approve or deny the claim before the
expiration of 6 months from the date the claim was filed, the claimant may
nevertheless thereafter file with the Department a written protest in such
form as the Department may by regulation prescribe. If a protest is filed,
the Department shall consider the claim and, if the taxpayer has so
requested, shall grant the taxpayer or the taxpayer's authorized
representative a hearing within 6 months after the date such request is filed.
(f) Effect of denial. A denial of a claim for refund becomes final 60
days after the date of issuance of the notice of such denial except for
such amounts denied as to which the claimant has filed a protest with the
Department, as provided by Section 910.
(g) An overpayment of tax shown on the face of an unsigned return
shall be considered forfeited to the State if after notice and demand for
signature by the Department the taxpayer fails to 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
Department, the taxpayer fails to provide a required signature document.
A notice and demand for signature in the case of a return reflecting an
overpayment may be made by first class mail. This subsection (g) shall apply
to all returns filed pursuant to this Act since 1969.
(h) This amendatory Act of 1983 applies to returns and claims for
refunds filed with the Department on and after July 1, 1983.
(Source: P.A. 89‑399, eff. 8‑20‑95.)
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(35 ILCS 5/910) (from Ch. 120, par. 9‑910)
Sec. 910.
Procedure on Denial of Claim for Refund.
(a) Time for protest. Within 60 days after the denial of the
claim,
the claimant may file with the Department a written protest against such
denial in such form as the Department may by regulations prescribe, setting
forth the grounds on which such protest is based. If a protest is filed,
the Department shall reconsider the denial and, if the taxpayer has so
requested, shall grant the taxpayer or his authorized representative a
hearing.
(b) Notice of decision. As soon as practicable after such
reconsideration and hearing, if any, the Department shall issue a notice of
decision by mailing such notice by certified or registered mail. Such
notice shall set forth briefly the Department's findings of fact and the
basis of decision in each case decided in whole or in part adversely to the
claimant.
(c) Request for rehearing. Within 30 days after the mailing of a
notice of decision, the claimant may file with the Department a written
request for rehearing in such form as the Department may by regulations
prescribe, setting forth the grounds on which rehearing is requested. In
any such case, the Department shall, in its discretion, grant either a
rehearing or Departmental review unless, within 10 days of receipt of such
request, it shall issue a denial of such request by mailing such denial to
the claimant by certified or registered mail. If rehearing or Departmental
review is granted, as soon as practicable after such rehearing or
Departmental review, the Department shall issue a notice of final decision
as provided in subsection (b).
(d) Finality of decision. The action of the Department on the claimant's
protest shall become final:
(1) 30 days after issuance of a notice of decision | ||
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(2) If a timely request for rehearing was made, upon | ||
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(Source: P.A. 89‑399, eff. 8‑20‑95.)
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(2) No credit or refund shall be allowed or made | ||
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(b) Federal changes.
(1) In general. In any case where notification of | ||
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(2) Tentative carryback adjustments paid before | ||
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(c) Extension by agreement. Where, before the expiration of the
time prescribed in this section for the filing of a claim for refund,
both the Department and the claimant shall have consented in writing to
its filing after such time, such claim may be filed at any time prior to
the expiration of the period agreed upon. The period so agreed upon may
be extended by subsequent agreements in writing made before the
expiration of the period previously agreed upon.
In the case of a taxpayer who is a partnership, Subchapter S corporation, or
trust and who enters into an agreement with the Department pursuant to this
subsection on or after January 1, 2003, a claim for refund may be issued to the
partners, shareholders, or beneficiaries of the taxpayer at any time prior to
the expiration of the period agreed upon. Any refund
allowed pursuant to the claim, however, shall be limited to the amount of any
overpayment
of tax due under this Act that results from recomputation of items of income,
deduction, credits, or other amounts of the taxpayer that are taken into
account by the partner, shareholder, or beneficiary in computing its liability
under this Act.
(d) Limit on amount of credit or refund.
(1) Limit where claim filed within 3‑year period. | ||
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(2) Limit where claim not filed within 3‑year | ||
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(e) Time return deemed filed. For purposes of this section a tax
return filed before the last day prescribed by law for the filing of
such return (including any extensions thereof) shall be deemed to have
been filed on such last day.
(f) No claim for refund based on the taxpayer's taking a credit for
estimated tax payments as provided by Section 601(b)(2) or for any amount
paid by a taxpayer pursuant to Section 602(a) or for any amount of credit for
tax withheld pursuant to Section 701 may be filed more than 3
years after the due date, as provided by Section 505, of the return which
was required to be filed relative to the taxable year for which the
payments were made or for which the tax was withheld. The changes in
this subsection (f) made by this
amendatory Act of 1987 shall apply to all taxable years ending on or after
December 31, 1969.
(g) Special Period of Limitation with Respect to Net Loss Carrybacks.
If the claim for refund relates to an overpayment attributable to a net
loss carryback as provided by Section 207, in lieu of the 3 year period of
limitation prescribed in subsection (a), the period shall be that period
which ends 3 years after the time prescribed by law for filing the return
(including extensions thereof) for the taxable year of the net loss which
results in such carryback (or, on and after August 13, 1999, with respect to a change in the
carryover of
an Article 2 credit to a taxable year resulting from the carryback of a Section
207 loss incurred in a taxable year beginning on or after January 1, 2000, the
period shall be that period
that ends 3 years after the time prescribed by law for filing the return
(including extensions of that time) for that subsequent taxable year),
or the period prescribed in subsection (c) in
respect of such taxable year, whichever expires later. In the case of such
a claim, the amount of the refund may exceed the portion of the tax paid
within the period provided in subsection (d) to the extent of the amount of
the overpayment attributable to such carryback.
On and after August 13, 1999, if the claim for refund relates to an overpayment attributable to
the
carryover
of an Article 2 credit, or of a Section 207 loss, earned, incurred (in a
taxable year beginning on or after January 1, 2000), or used in
a
year for which a notification of a change affecting federal taxable income must
be filed under subsection (b) of Section 506, the claim may be filed within the
period
prescribed in paragraph (1) of subsection (b) in respect of the year for which
the
notification is required. In the case of such a claim, the amount of the
refund may exceed the portion of the tax paid within the period provided in
subsection (d) to the extent of the amount of the overpayment attributable to
the recomputation of the taxpayer's Article 2 credits, or Section 207 loss,
earned, incurred, or used in the taxable year for which the notification is
given.
(h) Claim for refund based on net loss. On and after August 23, 2002, no claim for refund shall
be allowed to the extent the refund is the result of an amount of net loss
incurred in any taxable year ending prior to December 31, 2002
under Section 207 of this Act that was not reported to the Department
within 3 years of the due date (including extensions) of the return for the
loss year on either the original return filed by the taxpayer or on amended
return or to the extent that the refund is the result of an amount of net loss incurred in any taxable year under Section 207 for which no return was filed within 3 years of the due date (including extensions) of the return for the loss year.
(Source: P.A. 94‑836, eff. 6‑6‑06.)
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(35 ILCS 5/911.1) (from Ch. 120, par. 9‑911.1)
Sec. 911.1.
If the Department withholds any refund due under this Act
because of any other liability to the State and if the return for which
such refund is due is a joint return, the taxpayer who jointly filed such
return and who is not liable to the State shall be entitled to that portion
of the refund attributable to himself or herself.
(Source: P.A. 85‑473.)
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(35 ILCS 5/911.2)
Sec. 911.2.
Refunds withheld; tax claims of other states.
(a) Definitions. In this Section the following terms have the meanings
indicated.
"Claimant state" means any state or the District of Columbia that requests
the withholding of a refund pursuant to this Section and that extends a like
comity for the collection of taxes owed to this State.
"Income tax" means any amount of income tax imposed on taxpayers under the
laws of the State of Illinois or the claimant state, including additions to tax
for penalties and interest.
"Refund" means a refund of overpaid income taxes imposed by the State of
Illinois or the claimant state.
"Tax officer" means a unit or official of the claimant state, or the duly
authorized agent of that unit or official, charged with the imposition,
assessment, or collection of state income taxes.
"Taxpayer" means any individual person identified by a claimant state under
this Section
as owing taxes to that claimant state, and in the case of a refund arising from
the filing of a joint return, the taxpayer's spouse.
(b) In general. Except as provided in subsection (c) of this Section, a tax
officer may:
(1) certify to the Director the existence of a | ||
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(2) request the Director to withhold any refund to | ||
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(c) Comity. A tax officer may not certify or request the Director to
withhold a refund unless the laws of the claimant state:
(1) allow the Director to certify an income tax | ||
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(2) allow the Director to request the tax officer to | ||
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(3) provide for the payment of the refund to the | ||
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(d) Certification. A certification by a tax officer to the Director shall
include:
(1) the full name and address of the taxpayer and | ||
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(2) the social security number or federal tax | ||
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(3) the amount of the income tax liability; and
(4) a statement that all administrative and judicial | ||
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(e) Notification. As to any taxpayer due a refund, the Director shall:
(1) notify the taxpayer that a claimant state has | ||
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(2) inform the taxpayer of the tax liability | ||
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(3) inform the taxpayer that failure to file a | ||
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(3.5) inform the taxpayer that the refund has been | ||
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(4) provide the taxpayer with notice of an | ||
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(5) inform the taxpayer that the hearing may be | ||
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(f) Protest of withholding. A taxpayer may protest the withholding of a
refund pursuant to Section 910 of this Act (except that the protest shall be
filed within 30 days after the date of the Director's notice of certification
pursuant to subsection (e) of this Section).
(g) Certification as prima facie evidence. If the taxpayer requests a
hearing pursuant to Section 910 of this Act, the certification of the tax
officer shall be prima facie evidence of the correctness of the taxpayer's
delinquent income tax liability to the certifying state.
(h) Rights of spouses to refunds from joint returns. If a certification is
based upon the tax debt of only one taxpayer and if the refund is based upon a
joint personal income tax return, the nondebtor spouse shall have the right to:
(1) notification, as provided in subsection (e) of | ||
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(2) protest, as to the withholding of such spouse's | ||
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(3) payment of his or her share of the refund, | ||
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(i) Withholding and payment of refund. Upon receipt of a request for withholding in accordance
with subsection (b) of this Section, the Director shall:
(1) withhold any refund that is certified by the tax | ||
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(2) pay to the claimant state the entire refund or | ||
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(3) pay any refund in excess of the amount certified | ||
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(4) if a refund is less than the amount certified, | ||
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(j) Determination that withholding cannot be made. After receiving a
certification from a tax officer, the Director shall notify the claimant state
if the Director determines that a withholding cannot be made.
(k) Director's authority. The Director shall have the authority to enter
into agreements with the tax officers of claimant state relating to:
(1) procedures and methods to be employed by a | ||
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(2) safeguards against the disclosure or | ||
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(3) a minimum tax debt, amounts below which, in | ||
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(l) Remedy not exclusive. The collection procedures prescribed by this
Section are in addition to, and not in substitution for, any other remedy
available by law.
(Source: P.A. 92‑492, eff. 1‑1‑02; 92‑826, eff. 8‑21‑02.)
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(35 ILCS 5/911.3)
Sec. 911.3. Refunds withheld; order of honoring requests. The Department shall honor refund withholding requests in the following order:
(1) a refund withholding request to collect an | ||
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(2) a refund withholding request to collect | ||
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(3) a refund withholding request to collect any debt | ||
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(4) a refund withholding request made by the | ||
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(5) a refund withholding request pursuant to Section | ||
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(6) a refund withholding request to collect certified | ||
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(Source: P.A. 92‑826, eff. 8‑21‑02; 93‑836, eff. 1‑1‑05.)
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(35 ILCS 5/912) (from Ch. 120, par. 9‑912)
Sec. 912.
Recovery of Erroneous Refund.
An erroneous refund shall be considered a deficiency of tax on the date
made, and shall be deemed assessed and shall be collected as provided in
sections 903 and 904.
(Source: P. A. 76‑261.)
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(35 ILCS 5/913) (from Ch. 120, par. 9‑913)
Sec. 913.
Access
to Books and Records.
All books and records and other papers and documents which are required
by this Act to be kept shall, at all times during business hours of the
day, be subject to inspection by the Department or its duly authorized
agents and employees.
(Source: P.A. 89‑399, eff. 8‑20‑95; 89‑711, eff. 2‑14‑97.)
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(35 ILCS 5/914) (from Ch. 120, par. 9‑914)
Sec. 914.
Conduct of Investigations and Hearings.
For the purpose of administering and enforcing the provisions of this
Act, the Department, or any officer or employee of the Department
designated, in writing, by the Director may hold investigations and
hearings concerning any matters covered by this Act and may examine any
books, papers, records or memoranda bearing upon such matters, and may
require the attendance of any person, or any officer or employee of such
person, having knowledge of such matters, and may take testimony and
require proof for its information. In the conduct of any investigation or
hearing, neither the Department nor any officer or employee thereof shall
be bound by the technical rules of evidence, and no informality in any
proceeding, or in the manner of taking testimony, shall invalidate any
order, decision, rule or regulation made or approved or confirmed by the
Department. The Director, or any officer or employee of the Department
authorized by the Director shall have power to administer oaths to such
persons. The books, papers, records and memoranda of the Department, or
parts thereof, may be proved in any hearing, investigation, or legal
proceeding by a reproduced copy thereof
or by a computer print‑out of Department records,
under the certificate of the Director.
If reproduced copies of the Department's books, papers, records or
memoranda are offered as proof, the Director must certify that those copies
are true and exact copies of such records on file with the Department. If
computer print‑outs of records of the Department are offered as proof, the
Director must certify that those computer print‑outs are true and exact
representations of records properly entered into standard electronic
computing equipment, in the regular course of the Department's business, at
or reasonably near the time of the occurrence of the facts recorded, from
trustworthy and reliable information.
Such reproduced copy shall, without further proof, be admitted
into evidence before the Department or in any legal proceeding.
(Source: P.A. 85‑299.)
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(35 ILCS 5/915) (from Ch. 120, par. 9‑915)
Sec. 915.
Immunity of Witnesses.
No person shall be excused from testifying or from producing any books,
papers, records or memoranda in any investigation or upon any hearing, when
ordered to do so by the Department or any officer or employee thereof, upon
the ground that the testimony or evidence, documentary or otherwise, may
tend to incriminate him or subject him to a criminal penalty, but no person
shall be prosecuted or subjected to any criminal penalty for, or on account
of, any transaction made or thing concerning which he may testify or
produce evidence, documentary or otherwise, before the Department or an
officer or employee thereof; provided, that such immunity shall extend only
to a natural person who, in obedience to a subpoena, gives testimony under
oath or produces evidence, documentary or otherwise, under oath. No person
so testifying shall be exempt from prosecution and punishment for perjury
committed in so testifying.
(Source: P. A. 76‑261.)
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(35 ILCS 5/916) (from Ch. 120, par. 9‑916)
Sec. 916.
Production of Witnesses and Records.
(a) Subpoenas. The Department
or any officer or employee of the Department designated in writing by the
Director, shall at its or his or her own instance, or on the written
request of any other party to the proceeding, issue subpoenas requiring
the attendance of and the giving of testimony by witnesses, and subpoenas
duces tecum requiring the production of books, papers, records or memoranda.
All subpoenas and subpoenas duces tecum issued under this Act may be served
by any person of full age.
(b) Fees. The fees of witnesses for attendance and travel shall be
the same as the fees of witnesses before a Circuit Court of this State,
such fees to be paid when the witness is excused from further attendance.
When the witness is subpoenaed at the instance of the Department or any
officer or employee thereof, such fees shall be paid in the same manner as
other expenses of the Department, and when the witness is subpoenaed at the
instance of any other party to any such proceeding the Department may
require that the cost of service of the subpoena or subpoenas duces tecum
and the fee of the witness be borne by the party at whose instance the
witness is summoned. In such case, the Department, in its discretion, may
require a deposit to cover the cost of such service and witness fees. A
subpoena or subpoena duces tecum so issued shall be
served in the same manner as a subpoena issued out of a court.
(c) Judicial enforcement. Any Circuit Court of this State, upon the application
of the Department or any officer or
employee thereof, or upon the application of any other party to the
proceeding may, in its discretion, compel the attendance of
witnesses, the production of books, papers, records or memoranda and the
giving of testimony before the Department or any officer or employee
thereof conducting an investigation or holding a hearing authorized by this
Act, by an attachment for contempt, or otherwise, in the same manner as
production of evidence may be compelled before the Court.
(Source: P.A. 83‑334.)
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(2) At the sole discretion of the Director, trade | ||
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The Director shall determine the
appropriate extent of the
deletions allowed in paragraph (2). In the event the taxpayer does not submit
deletions,
the Director shall make only the deletions specified in paragraph (1).
The Director shall make available for public inspection and publication an
administrative decision within 180 days after the issuance of the
administrative
decision. The term "administrative decision" has the same meaning as defined in
Section 3‑101 of Article III of the Code of Civil Procedure. Costs collected
under this Section shall be paid into the Tax Compliance and Administration
Fund.
(e) Nothing contained in this Act shall prevent the Director from
divulging
information to any person pursuant to a request or authorization made by the
taxpayer, by an authorized representative of the taxpayer, or, in the case of
information related to a joint return, by the spouse filing the joint return
with the taxpayer.
(Source: P.A. 93‑25, eff. 6‑20‑03; 93‑721, eff. 1‑1‑05.)
(Text of Section from P.A. 93‑835)
Sec. 917. Confidentiality and information sharing.
(a) Confidentiality.
Except as provided in this Section, all information received by the Department
from returns filed under this Act, or from any investigation conducted under
the provisions of this Act, shall be confidential, except for official purposes
within the Department or pursuant to official procedures for collection
of any State tax or pursuant to an investigation or audit by the Illinois
State Scholarship Commission of a delinquent student loan or monetary award
or enforcement of any civil or criminal penalty or sanction
imposed by this Act or by another statute imposing a State tax, and any
person who divulges any such information in any manner, except for such
purposes and pursuant to order of the Director or in accordance with a proper
judicial order, shall be guilty of a Class A misdemeanor. However, the
provisions of this paragraph are not applicable to information furnished
to (i) the Department of Public Aid, State's Attorneys, and the Attorney General for child support enforcement purposes and (ii) a licensed attorney representing the taxpayer where an appeal or a protest
has been filed on behalf of the taxpayer. If it is necessary to file information obtained pursuant to this Act in a child support enforcement proceeding, the information shall be filed under seal.
(b) Public information. Nothing contained in this Act shall prevent
the Director from publishing or making available to the public the names
and addresses of persons filing returns under this Act, or from publishing
or making available reasonable statistics concerning the operation of the
tax wherein the contents of returns are grouped into aggregates in such a
way that the information contained in any individual return shall not be
disclosed.
(c) Governmental agencies. The Director may make available to the
Secretary of the Treasury of the United States or his delegate, or the
proper officer or his delegate of any other state imposing a tax upon or
measured by income, for exclusively official purposes, information received
by the Department in the administration of this Act, but such permission
shall be granted only if the United States or such other state, as the case
may be, grants the Department substantially similar privileges. The Director
may exchange information with the Illinois Department of Public Aid and the
Department of Human Services (acting as successor to the Department of Public
Aid under the Department of Human Services Act) for
the purpose of verifying sources and amounts of income and for other purposes
directly connected with the administration of this Act and the Illinois
Public Aid Code. The Director may exchange information with the Director of
the Department of Employment Security for the purpose of verifying sources
and amounts of income and for other purposes directly connected with the
administration of this Act and Acts administered by the Department of
Employment
Security.
The Director may make available to the Illinois Industrial Commission
information regarding employers for the purpose of verifying the insurance
coverage required under the Workers' Compensation Act and Workers'
Occupational Diseases Act.
The Director may make available to any State agency, including the
Illinois Supreme Court, which licenses persons to engage in any occupation,
information that a person licensed by such agency has failed to file
returns under this Act or pay the tax, penalty and interest shown therein,
or has failed to pay any final assessment of tax, penalty or interest due
under this Act.
The Director may make available to any State agency, including the Illinois
Supreme
Court, information regarding whether a bidder, contractor, or an affiliate of a
bidder or
contractor has failed to file returns under this Act or pay the tax, penalty,
and interest
shown therein, or has failed to pay any final assessment of tax, penalty, or
interest due
under this Act, for the limited purpose of enforcing bidder and contractor
certifications.
For purposes of this Section, the term "affiliate" means any entity that (1)
directly,
indirectly, or constructively controls another entity, (2) is directly,
indirectly, or
constructively controlled by another entity, or (3) is subject to the control
of
a common
entity. For purposes of this subsection (a), an entity controls another entity
if
it owns,
directly or individually, more than 10% of the voting securities of that
entity.
As used in
this subsection (a), the term "voting security" means a security that (1)
confers upon the
holder the right to vote for the election of members of the board of directors
or similar
governing body of the business or (2) is convertible into, or entitles the
holder to receive
upon its exercise, a security that confers such a right to vote. A general
partnership
interest is a voting security.
The Director may make available to any State agency, including the
Illinois
Supreme Court, units of local government, and school districts, information
regarding
whether a bidder or contractor is an affiliate of a person who is not
collecting
and
remitting Illinois Use taxes, for the limited purpose of enforcing bidder and
contractor
certifications.
The Director may also make available to the Secretary of State
information that a corporation which has been issued a certificate of
incorporation by the Secretary of State has failed to file returns under
this Act or pay the tax, penalty and interest shown therein, or has failed
to pay any final assessment of tax, penalty or interest due under this Act.
An assessment is final when all proceedings in court for
review of such assessment have terminated or the time for the taking
thereof has expired without such proceedings being instituted. For
taxable years ending on or after December 31, 1987, the Director may make
available to the Director or principal officer of any Department of the
State of Illinois, information that a person employed by such Department
has failed to file returns under this Act or pay the tax, penalty and
interest shown therein. For purposes of this paragraph, the word
"Department" shall have the same meaning as provided in Section 3 of the
State Employees Group Insurance Act of 1971.
(d) The Director shall make available for public
inspection in the Department's principal office and for publication, at cost,
administrative decisions issued on or after January
1, 1995. These decisions are to be made available in a manner so that the
following
taxpayer information is not disclosed:
(1) The names, addresses, and identification numbers | ||
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(2) At the sole discretion of the Director, trade | ||
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The Director shall determine the
appropriate extent of the
deletions allowed in paragraph (2). In the event the taxpayer does not submit
deletions,
the Director shall make only the deletions specified in paragraph (1).
The Director shall make available for public inspection and publication an
administrative decision within 180 days after the issuance of the
administrative
decision. The term "administrative decision" has the same meaning as defined in
Section 3‑101 of Article III of the Code of Civil Procedure. Costs collected
under this Section shall be paid into the Tax Compliance and Administration
Fund.
(e) Nothing contained in this Act shall prevent the Director from
divulging
information to any person pursuant to a request or authorization made by the
taxpayer, by an authorized representative of the taxpayer, or, in the case of
information related to a joint return, by the spouse filing the joint return
with the taxpayer.
(Source: P.A. 93‑25, eff. 6‑20‑03; 93‑835, eff. 7‑29‑04.)
(Text of Section from P.A. 93‑841)
Sec. 917. Confidentiality and information sharing.
(a) Confidentiality.
Except as provided in this Section, all information received by the Department
from returns filed under this Act, or from any investigation conducted under
the provisions of this Act, shall be confidential, except for official purposes
within the Department or pursuant to official procedures for collection
of any State tax or pursuant to an investigation or audit by the Illinois
State Scholarship Commission of a delinquent student loan or monetary award
or enforcement of any civil or criminal penalty or sanction
imposed by this Act or by another statute imposing a State tax, and any
person who divulges any such information in any manner, except for such
purposes and pursuant to order of the Director or in accordance with a proper
judicial order, shall be guilty of a Class A misdemeanor. However, the
provisions of this paragraph are not applicable to information furnished
to a licensed attorney representing the taxpayer where an appeal or a protest
has been filed on behalf of the taxpayer.
(b) Public information. Nothing contained in this Act shall prevent
the Director from publishing or making available to the public the names
and addresses of persons filing returns under this Act, or from publishing
or making available reasonable statistics concerning the operation of the
tax wherein the contents of returns are grouped into aggregates in such a
way that the information contained in any individual return shall not be
disclosed.
(c) Governmental agencies. The Director may make available to the
Secretary of the Treasury of the United States or his delegate, or the
proper officer or his delegate of any other state imposing a tax upon or
measured by income, for exclusively official purposes, information received
by the Department in the administration of this Act, but such permission
shall be granted only if the United States or such other state, as the case
may be, grants the Department substantially similar privileges. The Director
may exchange information with the Illinois Department of Public Aid and the
Department of Human Services (acting as successor to the Department of Public
Aid under the Department of Human Services Act) for
the purpose of verifying sources and amounts of income and for other purposes
directly connected with the administration of this Act and the Illinois
Public Aid Code. The Director may exchange information with the Director of
the Department of Employment Security for the purpose of verifying sources
and amounts of income and for other purposes directly connected with the
administration of this Act and Acts administered by the Department of
Employment
Security.
The Director may make available to the Illinois Industrial Commission
information regarding employers for the purpose of verifying the insurance
coverage required under the Workers' Compensation Act and Workers'
Occupational Diseases Act. The Director may exchange information with the Illinois Department on Aging for the purpose of verifying sources and amounts of income for purposes directly related to confirming eligibility for participation in the programs of benefits authorized by the Senior Citizens and Disabled Persons Property Tax Relief and Pharmaceutical Assistance Act.
The Director may make available to any State agency, including the
Illinois Supreme Court, which licenses persons to engage in any occupation,
information that a person licensed by such agency has failed to file
returns under this Act or pay the tax, penalty and interest shown therein,
or has failed to pay any final assessment of tax, penalty or interest due
under this Act.
The Director may make available to any State agency, including the Illinois
Supreme
Court, information regarding whether a bidder, contractor, or an affiliate of a
bidder or
contractor has failed to file returns under this Act or pay the tax, penalty,
and interest
shown therein, or has failed to pay any final assessment of tax, penalty, or
interest due
under this Act, for the limited purpose of enforcing bidder and contractor
certifications.
For purposes of this Section, the term "affiliate" means any entity that (1)
directly,
indirectly, or constructively controls another entity, (2) is directly,
indirectly, or
constructively controlled by another entity, or (3) is subject to the control
of
a common
entity. For purposes of this subsection (a), an entity controls another entity
if
it owns,
directly or individually, more than 10% of the voting securities of that
entity.
As used in
this subsection (a), the term "voting security" means a security that (1)
confers upon the
holder the right to vote for the election of members of the board of directors
or similar
governing body of the business or (2) is convertible into, or entitles the
holder to receive
upon its exercise, a security that confers such a right to vote. A general
partnership
interest is a voting security.
The Director may make available to any State agency, including the
Illinois
Supreme Court, units of local government, and school districts, information
regarding
whether a bidder or contractor is an affiliate of a person who is not
collecting
and
remitting Illinois Use taxes, for the limited purpose of enforcing bidder and
contractor
certifications.
The Director may also make available to the Secretary of State
information that a corporation which has been issued a certificate of
incorporation by the Secretary of State has failed to file returns under
this Act or pay the tax, penalty and interest shown therein, or has failed
to pay any final assessment of tax, penalty or interest due under this Act.
An assessment is final when all proceedings in court for
review of such assessment have terminated or the time for the taking
thereof has expired without such proceedings being instituted. For
taxable years ending on or after December 31, 1987, the Director may make
available to the Director or principal officer of any Department of the
State of Illinois, information that a person employed by such Department
has failed to file returns under this Act or pay the tax, penalty and
interest shown therein. For purposes of this paragraph, the word
"Department" shall have the same meaning as provided in Section 3 of the
State Employees Group Insurance Act of 1971.
(d) The Director shall make available for public
inspection in the Department's principal office and for publication, at cost,
administrative decisions issued on or after January
1, 1995. These decisions are to be made available in a manner so that the
following
taxpayer information is not disclosed:
(1) The names, addresses, and identification numbers | ||
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(2) At the sole discretion of the Director, trade | ||
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The Director shall determine the
appropriate extent of the
deletions allowed in paragraph (2). In the event the taxpayer does not submit
deletions,
the Director shall make only the deletions specified in paragraph (1).
The Director shall make available for public inspection and publication an
administrative decision within 180 days after the issuance of the
administrative
decision. The term "administrative decision" has the same meaning as defined in
Section 3‑101 of Article III of the Code of Civil Procedure. Costs collected
under this Section shall be paid into the Tax Compliance and Administration
Fund.
(e) Nothing contained in this Act shall prevent the Director from
divulging
information to any person pursuant to a request or authorization made by the
taxpayer, by an authorized representative of the taxpayer, or, in the case of
information related to a joint return, by the spouse filing the joint return
with the taxpayer.
(Source: P.A. 93‑25, eff. 6‑20‑03; 93‑841, eff. 7‑30‑04.)
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(35 ILCS 5/918) (from Ch. 120, par. 9‑918)
Sec. 918.
Place
of Hearings.
All hearings provided for in this Act with respect to or concerning a
taxpayer having his residence or commercial domicile in this State shall be
held at the Department's office nearest to the location of such residence
or domicile, except that if the taxpayer has his residence or commercial
domicile in Cook County, such hearing shall be held in Cook County. If the
taxpayer does not have his residence or commercial domicile in this State,
such hearing shall be held in Cook County.
(Source: P. A. 76‑261.)
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