102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1499

 

Introduced 2/17/2021, by Rep. Emanuel Chris Welch

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/501  from Ch. 120, par. 5-501

    Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning notices or regulations requiring records, statements, and special reports.


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A BILL FOR

 

HB1499LRB102 03515 HLH 13528 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 501 as follows:
 
6    (35 ILCS 5/501)  (from Ch. 120, par. 5-501)
7    Sec. 501. Notice or Regulations Requiring Records,
8Statements and Special Returns.
9    (a) In general. Every person liable for any tax imposed by
10this Act shall keep such records, render such statements, make
11such returns and and notices, and comply with such rules and
12regulations as the Department may from time to time prescribe.
13Whenever in the judgment of the Director it is necessary, he
14may require any person, by notice served upon such person or by
15regulations, to make such returns and notices, render such
16statements, or keep such records, as the Director deems
17sufficient to show whether or not such person is liable for tax
18under this Act.
19    (b) Reportable transactions. For each taxable year in
20which a taxpayer is required to make a disclosure statement
21under Treasury Regulations Section 1.6011-4 (26 CFR 1.6011-4)
22(including any taxpayer that is a member of a consolidated
23group required to make such disclosure) with respect to a

 

 

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1reportable transaction (including a listed transaction) in
2which the taxpayer participated in a taxable year for which a
3return is required under Section 502 of this Act, such
4taxpayer shall file a copy of such disclosure with the
5Department. Disclosure under this subsection is required to be
6made by any taxpayer that is a member of a unitary business
7group that includes any person required to make a disclosure
8statement under Treasury Regulations Section 1.6011-4.
9Disclosure under this subsection is required with respect to
10any transaction entered into after February 28, 2000 that
11becomes a listed transaction at any time, and shall be made in
12the manner prescribed by the Department. With respect to
13transactions in which the taxpayer participated for taxable
14years ending before December 31, 2004, disclosure shall be
15made by the due date (including extensions) of the first
16return required under Section 502 of this Act due after the
17effective date of this amendatory Act of the 93rd General
18Assembly. With respect to transactions in which the taxpayer
19participated for taxable years ending on and after December
2031, 2004, disclosure shall be made in the time and manner
21prescribed in Treasury Regulations Section 1.6011-4(e).
22Notwithstanding the above, no disclosure is required for
23transactions entered into after February 28, 2000 and before
24January 1, 2005 (i) if the taxpayer has filed an amended
25Illinois income tax return which reverses the tax benefits of
26the potential tax avoidance transaction, or (ii) as a result

 

 

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1of a federal audit the Internal Revenue Service has determined
2the tax treatment of the transaction and an Illinois amended
3return has been filed to reflect the federal treatment.
4(Source: P.A. 93-840, eff. 7-30-04.)