State of Illinois
91st General Assembly
Legislation

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91_HB1275

 
                                               LRB9103318PTpk

 1        AN   ACT   to   amend    the    Illinois    Estate    and
 2    Generation-Skipping Transfer Tax Act by changing Section 8.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 5.  The Illinois Estate  and  Generation-Skipping
 6    Transfer Tax Act is amended by changing Section 8 as follows:

 7        (35 ILCS 405/8) (from Ch. 120, par. 405A-8)
 8        Sec.  8.   Penalties for failure to file tax return or to
 9    pay tax.
10        (a)  Failure to file return.  In the case of  failure  to
11    file  any  return  required  under this Act with the Attorney
12    General by the due date, unless it is shown that the  failure
13    to file is due to a reasonable cause, there shall be added to
14    the  amount  required  to be shown as tax on the return 5% of
15    the amount of that tax (or 5% of the additional  tax  due  in
16    the  case of a supplemental return) if the failure is for not
17    more than one month from the due date, with an additional  5%
18    for  each  additional month or fraction of a month thereafter
19    during which the failure to file continues, not exceeding  in
20    the   aggregate  25%  of  the  tax  or,  in  the  case  of  a
21    supplemental return, 25% of the additional tax.
22        (b)  Failure to pay tax.  In the case of failure  to  pay
23    the amount of tax shown due on any return required under this
24    Act on or before the due date for payment of that tax, unless
25    it  is  shown  that  the  failure to pay is due to reasonable
26    cause, there shall be added to the unpaid amount of  the  tax
27    0.5%  of  that  unpaid  amount if the failure is for not more
28    than one month from the due date, with an additional 0.5% for
29    each additional month  or  fraction  of  a  month  thereafter
30    during  which  the failure to pay continues, not exceeding in
31    the aggregate 25% of the unpaid amount.
 
                            -2-                LRB9103318PTpk
 1        (c)  Extensions of Time.
 2             (1)  Internal Revenue Service  Extensions.   If  the
 3        date  for  filing  the related federal return or the date
 4        for payment  of  the  related  federal  transfer  tax  is
 5        extended  by  the Internal Revenue Service, the filing of
 6        the return and payment of the tax  imposed  by  this  Act
 7        shall  be  due  on  the  respective date specified by the
 8        Internal  Revenue  Service  in  granting  a  request  for
 9        extension.  If the request for extension  is  granted  by
10        the Internal Revenue Service, the person required to file
11        the  Illinois  transfer  tax  return  shall  furnish  the
12        Attorney General with a copy of the request for extension
13        showing approval of the extension by the Internal Revenue
14        Service.   If a request for extension of time to file the
15        federal return is denied by the Internal Revenue Service,
16        no penalty shall be due under  this  Act  if  the  return
17        required  by  this Act is filed within the time specified
18        by the Internal Revenue Service for  filing  the  federal
19        return.   If  a  request for extension of time to pay the
20        federal transfer tax is denied by  the  Internal  Revenue
21        Service,  no  penalty  shall be due under this Act if the
22        tax is paid within the time  specified  by  the  Internal
23        Revenue Service for paying the federal transfer tax.
24             (2)  Attorney  General  Extensions.   The  person or
25        persons required to file the Illinois transfer tax return
26        and to pay the Illinois transfer tax  may  apply  to  the
27        Attorney  General  for  an  extension of time to file the
28        Illinois transfer tax  return  or  to  pay  the  Illinois
29        transfer  tax.  The application must establish reasonable
30        cause why it is  impossible  or  impractical  to  file  a
31        reasonably  complete  return or to pay the full amount of
32        tax due by the due date.  The Attorney  General  may  for
33        reasonable cause extend the time for filing the return or
34        paying  the  tax  for  a  reasonable period from the date
 
                            -3-                LRB9103318PTpk
 1        fixed for filing the return or paying the tax.
 2        (d)  Waiver of Penalties.
 3             (1)  Internal  Revenue  Service  Waiver.    If   the
 4        Internal  Revenue  Service waives the penalty provided in
 5        the Internal Revenue Code for failure to timely file  the
 6        related  federal  return  or  the  penalty for failure to
 7        timely pay the related federal  transfer  tax  liability,
 8        such  waiver  or  waivers  shall  be deemed to constitute
 9        reasonable cause for purposes of this Section.
10             (2)  Attorney General Waiver.  The Attorney  General
11        may waive the penalty or penalties for failure to file or
12        pay  for reasonable cause, notwithstanding the failure of
13        the Internal Revenue Service  to  waive  the  penalty  or
14        penalties for failure to timely file the federal transfer
15        tax return or to pay the federal transfer tax.
16    (Source: P.A. 86-737.)

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