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91_SB0337
LRB9103315PTpk
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.
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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
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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.)