TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 428 CANNABIS AND CONTROLLED SUBSTANCES TAX ACT
SECTION 428.130 FAILURE TO PAY TAX; PENALTIES
Section 428.130 Failure To Pay Tax; Penalties
a) When an Illinois law enforcement agency or prosecuting authority learns that a dealer has transferred, manufactured, produced, shipped, transported, imported, sold or possesses (with intent to deliver to another person) more than 30 grams of cannabis or more then 5 grams of any controlled substance or 5 or more dosage units of a controlled substance not bearing valid tax stamps or other official indicia showing that the tax imposed by the Act has been paid, such law enforcement agency or prosecuting authority, is requested to immediately notify the Department and provide the following information: the dealer's name, current mailing address, social security number and date of birth; the weight, to the nearest tenth of a gram, or number of dosage units (if not measured by weight) of the cannabis or controlled substance; and the name and address of all peace officers who witnessed the dealer's possession, transfer, manufacture, shipment, transportation, importation or sale of such cannabis or controlled substance. This information should be transmitted to the Department's Bureau of Criminal Investigation. The foregoing is not intended to limit in any way the Department's duty and authority to enforce the tax and collection provisions of the Act.
b) Upon obtaining probative information that a dealer has transferred, manufactured, produced, shipped, transported, imported, sold or possesses (with intent to deliver to another person) the minimum jurisdictional quantity of cannabis or controlled substance not bearing valid tax stamps or other official indicia showing payment of the tax, the Department may issue a jeopardy assessment against such dealer for the tax and the penalty, which shall be collected as part of the tax, and applicable interest, as provided in Section 1102 of the Illinois Income Tax Act (Ill. Rev. Stat. 1989, ch. 120, par. 11-1102). The Department shall send a Notice of Jeopardy Assessment to the dealer by certified mail, return receipt requested, at his or her last known address.
c) Upon the issuance of a jeopardy assessment for the tax and penalty to be collected as part of the tax (plus interest provided by law), the Department may immediately file a Notice of Jeopardy Assessment lien in the office of recorder of the county in which any property of the dealer may be located and shall notify said dealer of such filing by certified mail, return receipt requested, sent to such dealer at his or her last known address.
d) Upon the filing of the Notice of Jeopardy Assessment lien, the Department may seize, distrain and levy upon all property and rights to property (whether real, personal, tangible or intangible) of the dealer, without exception, found within the State of Illinois, for the payment of the tax with the added penalty to be collected as part thereof, plus interest and costs. The Department may issue a warrant directed to any sheriff or other person authorized to serve process, commanding the sheriff or other person to levy upon the property and rights to property (whether real or personal, tangible or intangible) of the taxpayer, without exemption, found within his jurisdiction, for the payment of the amount thereof with the added penalties, interest and the cost of executing the warrant. The term "levy" includes the power of distraint and seizure by any means. Subject to the provision of subsection (f) of this section, in any case in which the warrant to levy has been issued, the sheriff or other person to whom the warrant was directed may seize and sell such property or rights to property. Such warrant shall be returned to the Department together with the money collected by virtue therof within the time therein specified, which shall not be less than 20 nor more than 90 days from the date of the warrant. The sheriff or other person to whom such warrant is directed shall proceed in the same manner as prescribed by law in respect to the enforcement against property upon judgments by a court, and shall be entitled to the same fees for his services in executing the warrant, to be collected in the same manner. (Ill. Rev. Stat. 1989, ch. 120, par. 2173). In addition, Revenue Special Agents employed by the Department and so designated in writing by the Director, are authorized to seize tangible personal property of the taxpayer. Any officer or employee of the Department, designated in writing by the Director, may levy upon wages, accounts and other intangible assets of a taxpayer. Subject to the provisions of subsection (f) of this section, in any case where property or rights to property have been seized by an officer or employee of the Department or by an officer of the Illinois Department of State Police, or successor agency thereto, under the Authority of a warrant to levy issued by the Department of Revenue, the Department of Revenue may take possession of and may sell such property or rights to property and the Department of Revenue may contract with third persons to conduct sales of such property or rights to the property. In the conduct of such sales, the Department of Revenue shall proceed in the same manner as is prescribed by law for proceeding against property to enforce judgments which are entered by a circuit court of this State. If, in the Department of Revenue's opinion, no offer to purchase at such sale is acceptable because it is too low compared to value and the State's interest would be better served by retaining the property for sale at a later date, then the Department may decline to accept any bid and may retain the property for sale at a later date. (Section 23 of the Act).
e) If the dealer believes that he does not owe some or all of the amount for which the lien was filed, he may protest and request a hearing to be conducted pursuant to the provisions of the Department's hearing rules (86 Ill. Adm. Code 200). The request shall be in writing, and must be postmarked no more than 20 days after the date the Department mailed the notice of the filing of the lien. The request for a hearing must be mailed to: Illinois Department of Revenue, P.O. Box 19018, Springfield, Illinois 62794-9018.
f) Property or rights to property seized pursuant to the provisions of subsection (d) of this Section shall not be sold until the expiration of the period for requesting a hearing pursuant to subsection (e) of this Section, or if a hearing was requested, prior to a final determination after hearing.
(Source: Amended at 14 Ill. Reg. 16680, effective September 21, 1990)