093_HB0243

 
                                     LRB093 02634 SJM 02644 b

 1        AN ACT concerning taxes.

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

 4        Section  5.  The Taxpayers' Bill of Rights Act is amended
 5    by changing Section 5 and adding  Sections  5.5  and  5.6  as
 6    follows:

 7        (20 ILCS 2520/5) (from Ch. 120, par. 2305)
 8        Sec.  5.   Taxpayer's suits.  Taxpayers have the right to
 9    sue  the  Department  of  Revenue  if  the  such   Department
10    negligently  intentionally  or recklessly disregards tax laws
11    or regulations in collecting taxes.  The maximum recovery for
12    damages in such a suit shall be $100,000.   If  a  taxpayer's
13    suit is determined by the court to be frivolous the court may
14    impose  a penalty on the taxpayer not to exceed $10,000 to be
15    collected as a tax.
16    (Source: P.A. 86-176; 86-189.)

17        (20 ILCS 2520/5.5 new)
18        Sec. 5.5.  Burden of proof.
19        (a) Notwithstanding any other law to the contrary, in the
20    case of a taxpayer receiving a protestable notice, a bill,  a
21    claim  denial,  or  a  reduction of refund regarding any tax,
22    until proven otherwise by the Department in  the  appropriate
23    proceeding,  the  taxpayer's position shall be presumed to be
24    the correct one and the burden  of  proof  shall  be  on  the
25    Department to prove otherwise.
26        (b)  The  provisions  of subsection (a) apply only if (i)
27    the taxpayer asserts a reasonable dispute with respect to the
28    issue and (ii) the taxpayer has  fully  cooperated  with  the
29    Department  with  respect  to the issue, including providing,
30    within a reasonable period of time, access to and  inspection
 
                            -2-      LRB093 02634 SJM 02644 b
 1    of  all  witnesses,  information,  and  documents  within the
 2    control of the  taxpayer,  as  reasonably  requested  by  the
 3    Department.
 4        (c)  The  Department  shall  adopt rules to implement the
 5    provisions of this Section.

 6        (20 ILCS 2520/5.6 new)
 7        Sec.  5.6.  Privileged  communications;  accountant   and
 8    client.    In   any   non-criminal   proceeding   before  the
 9    Department, the taxpayer shall be entitled to the same common
10    law protections of confidentiality with respect to tax advice
11    furnished by  a  certified  public  accountant  or  a  public
12    accountant  licensed under the Illinois Public Accounting Act
13    as  the  taxpayer  would  have  if  the  accountant  were  an
14    attorney.

15        Section 10.  The Illinois Income Tax Act  is  amended  by
16    changing Sections 902,  904, and 917 and adding Section 917.5
17    as follows:

18        (35 ILCS 5/902) (from Ch. 120, par. 9-902)
19        Sec.  902.   Notice and Demand. (a) In general. Except as
20    provided in subsection (b) the Director  shall,  as  soon  as
21    practicable  after an amount payable under this Act is deemed
22    assessed (as provided in Section 903), give  notice  to  each
23    person  liable  for  any  unpaid  portion of such assessment,
24    stating the amount unpaid and demanding payment  thereof.  In
25    the  case of tax deemed assessed with the filing of a return,
26    the Director shall give notice no later than  3  years  after
27    the  date  the  return was filed.  Upon receipt of any notice
28    and demand there shall be paid at the place and  time  stated
29    in  such notice the amount stated in such notice. Such notice
30    shall be left at the dwelling or usual place of  business  of
31    such  person  or  shall  be sent by mail to the person's last
 
                            -3-      LRB093 02634 SJM 02644 b
 1    known address.
 2        (b)  Judicial review. In the case of a deficiency  deemed
 3    assessed  under  Section  903  (a)  (2) after the filing of a
 4    protest, notice and demand shall not be made with respect  to
 5    such assessment until all proceedings in court for the review
 6    of such assessment have terminated or the time for the taking
 7    thereof   has   expired   without   such   proceedings  being
 8    instituted.
 9        (c)  Action for recovery of taxes. At any time  that  the
10    Department  might  commence  proceedings  for  a  levy  under
11    Section  1109,  regardless  of  whether  a notice of lien was
12    filed under the provisions of Section 1103, it may  bring  an
13    action  in  any  court  of  competent  jurisdiction within or
14    without this State in the name of the people of this State to
15    recover the amount of any taxes, penalties and  interest  due
16    and unpaid under this Act. In such action, the certificate of
17    the Department showing the amount of the delinquency shall be
18    prima  facie  evidence of the correctness of such amount, its
19    assessment and of the compliance by the Department  with  all
20    the provisions of this Act.
21        (d)  Sales  or  transfers  outside  the  usual  course of
22    business-Report-Payment  of  Tax  -  Rights  and  duties   of
23    purchaser  or transferee - penalty.  If any taxpayer, outside
24    the usual course of his  business,  sells  or  transfers  the
25    major part of any one or more of (A) the stock of goods which
26    he  is  engaged  in  the  business  of  selling,  or  (B) the
27    furniture or fixtures, or (C) the machinery and equipment, or
28    (D) the real property, of any business that is subject to the
29    provisions of this Act, the purchaser or transferee  of  such
30    assets  shall,  no  later  than  10  days  after  the sale or
31    transfer, file a notice  of  sale  or  transfer  of  business
32    assets  with  the Chicago office of the Department disclosing
33    the name and address of the seller or  transferor,  the  name
34    and  address  of the purchaser or transferee, the date of the
 
                            -4-      LRB093 02634 SJM 02644 b
 1    sale or transfer, a copy of the sales contract and  financing
 2    agreements  which shall include a description of the property
 3    sold or transferred, the amount of the purchase  price  or  a
 4    statement  of  other  consideration for the sale or transfer,
 5    and the terms for payment of the  purchase  price,  and  such
 6    other  information  as the Department may reasonably require.
 7    If the purchaser  or  transferee  fails  to  file  the  above
 8    described  notice  of  sale  with  the  Department within the
 9    prescribed  time,  the  purchaser  or  transferee  shall   be
10    personally  liable  to  the  Department  for  the amount owed
11    hereunder by the seller or transferor but unpaid, up  to  the
12    amount  of  the  reasonable value of the property acquired by
13    the purchaser or transferee.   The  purchaser  or  transferee
14    shall  pay  the  Department the amount of tax, penalties, and
15    interest owed by the seller or transferor under this Act,  to
16    the  extent  they  have  not  been  paid  by  the  seller  or
17    transferor.   The  seller  or transferor, or the purchaser or
18    transferee, at least 10 days before the date of the  sale  or
19    transfer,  may  notify the Department of the intended sale or
20    transfer and request the Department to make  a  determination
21    as  to whether the seller or transferor owes any tax, penalty
22    or interest due under this Act.  The  Department  shall  take
23    such steps as may be appropriate to comply with such request.
24        Any  order  issued  by  the  Department  pursuant to this
25    Section to withhold from the purchase price shall  be  issued
26    within  10 days after the Department receives notification of
27    a  sale  as  provided  in  this  Section.  The  purchaser  or
28    transferee shall withhold such portion of the purchase  price
29    as  may  be  directed  by the Department, but not to exceed a
30    minimum amount varying by type of business, as determined  by
31    the  Department  pursuant  to  regulations,  plus  twice  the
32    outstanding   unpaid   liabilities   and  twice  the  average
33    liability of preceding filings times the  number  of  unfiled
34    returns which were not filed when due, to cover the amount of
 
                            -5-      LRB093 02634 SJM 02644 b
 1    all  tax,  penalty, and interest due and unpaid by the seller
 2    or transferor under this Act or, if the payment of  money  or
 3    property  is  not involved, shall withhold the performance of
 4    the condition that constitutes the consideration for the sale
 5    or transfer.  Within 60 days after issuance  of  the  initial
 6    order  to  withhold,  the  Department  shall  provide written
 7    notice to the purchaser or transferee of the actual amount of
 8    all taxes, penalties and interest then due and whether or not
 9    additional amounts may become due as a result of unpaid taxes
10    required to be withheld by an employer,  returns  which  were
11    not  filed  when  due,  pending  assessments  and  audits not
12    completed.  The purchaser or  transferee  shall  continue  to
13    withhold  the  amount  directed to be withheld by the initial
14    order or such lesser amount as  is  specified  by  the  final
15    withholding  order  or  to  withhold  the  performance of the
16    condition which constitutes the consideration for the sale or
17    transfer until the purchaser or transferee receives from  the
18    Department  a certificate showing that no unpaid tax, penalty
19    or interest is due from the seller or transferor  under  this
20    Act.
21        The  purchaser  or  transferee is relieved of any duty to
22    continue to withhold from  the  purchase  price  and  of  any
23    liability  for  tax,  penalty, or interest due hereunder from
24    the seller or transferor if the Department  fails  to  notify
25    the  purchaser or transferee in the manner provided herein of
26    the amount to be withheld within 10 days after  the  sale  or
27    transfer  has  been  reported  to the Department or within 60
28    days after issuance of the initial order to withhold, as  the
29    case may be. The Department shall have the right to determine
30    amounts  claimed  on  an estimated basis to allow for periods
31    for  which  returns  were  not  filed   when   due,   pending
32    assessments  and  audits not completed, however the purchaser
33    or transferee shall be personally liable only for the  actual
34    amount due when determined.
 
                            -6-      LRB093 02634 SJM 02644 b
 1        If  the  seller  or transferor has failed to pay the tax,
 2    penalty,  and  interest  due  from  him  hereunder  and   the
 3    Department  makes timely claim therefor against the purchaser
 4    or transferee as hereinabove provided, then the purchaser  or
 5    transferee shall pay to the Department the amount so withheld
 6    from  the  purchase  price.   If  the purchaser or transferee
 7    fails to comply with the requirements of  this  Section,  the
 8    purchaser  or  transferee  shall  be personally liable to the
 9    Department for the amount owed hereunder  by  the  seller  or
10    transferor  up  to  the amount of the reasonable value of the
11    property acquired by the purchaser or transferee.
12        Any person who  shall  acquire  any  property  or  rights
13    thereto which, at the time of such acquisition, is subject to
14    a  valid lien in favor of the Department, shall be personally
15    liable to the Department for a sum equal  to  the  amount  of
16    taxes, penalties and interests, secured by such lien, but not
17    to  exceed  the reasonable value of such property acquired by
18    him.
19    (Source: P.A. 86-923; 86-953.)

20        (35 ILCS 5/904) (from Ch. 120, par. 9-904)
21        Sec. 904.  Deficiencies and Overpayments.
22        (a)  Examination of return.  As soon as practicable after
23    a return  is  filed,  the  Department  shall  examine  it  to
24    determine  the correct amount of tax. If the Department finds
25    that the amount of tax shown on the return is less  than  the
26    correct  amount, it shall issue a notice of deficiency to the
27    taxpayer  which  shall  set  forth  the  amount  of  tax  and
28    penalties proposed to be assessed. If  the  Department  finds
29    that  the  tax paid is more than the correct amount, it shall
30    credit or refund the overpayment as provided by Section  909.
31    The findings of the Department under this subsection shall be
32    prima  facie correct and shall be prima facie evidence of the
33    correctness of the amount of tax and penalties due.
 
                            -7-      LRB093 02634 SJM 02644 b
 1        (b)  No return filed.  If the taxpayer fails  to  file  a
 2    tax  return, the Department shall determine the amount of tax
 3    due according to its best  judgment  and  information,  which
 4    amount  so  fixed  by  the  Department  shall  be prima facie
 5    correct and shall be prima facie evidence of the  correctness
 6    of the amount of tax due. The Department shall issue a notice
 7    of  deficiency  to  the  taxpayer  which  shall set forth the
 8    amount of tax and penalties proposed to be assessed.
 9        (c)  Notice of deficiency.  A notice of deficiency issued
10    under this Act shall set forth the adjustments giving rise to
11    the proposed assessment and the reasons therefor. In the case
12    of a joint return, the notice of deficiency may be  a  single
13    joint  notice  except  that  if the Department is notified by
14    either spouse that separate residences have been established,
15    it shall issue joint notices to each spouse.
16        (d)  Assessment when no protest.  Upon the expiration  of
17    60  days  after  the date on which it was issued (150 days if
18    the taxpayer is outside  the  United  States),  a  notice  of
19    deficiency  shall  constitute  an assessment of the amount of
20    tax and penalties specified therein,  except  only  for  such
21    amounts  as  to which the taxpayer shall have filed a protest
22    with the Department, as provided in Section 908.
23    (Source: P.A. 87-192; 87-205.)

24        (35 ILCS 5/917) (from Ch. 120, par. 9-917)
25        Sec. 917.  Confidentiality and information sharing.
26        (a)  Confidentiality. Except as provided in this Section,
27    all information received by the Department from returns filed
28    under this Act, or from any investigation conducted under the
29    provisions of this Act, shall  be  confidential,  except  for
30    official  purposes  within  the  Department  or  pursuant  to
31    official  procedures  for  collection  of  any  State  tax or
32    pursuant to an investigation or audit by the  Illinois  State
33    Scholarship  Commission  of  a  delinquent  student  loan  or
 
                            -8-      LRB093 02634 SJM 02644 b
 1    monetary  award  or  enforcement  of  any  civil  or criminal
 2    penalty or sanction imposed by this Act or by another statute
 3    imposing a State tax, and any person who  divulges  any  such
 4    information  in  any  manner,  except  for  such purposes and
 5    pursuant to order of the Director or  in  accordance  with  a
 6    proper   judicial  order,  shall  be  guilty  of  a  Class  A
 7    misdemeanor.  However, the provisions of this  paragraph  are
 8    not   applicable  to  information  furnished  to  a  licensed
 9    attorney representing the  taxpayer  where  an  appeal  or  a
10    protest  has  been  filed  on  behalf  of  the  taxpayer.  In
11    addition, the provisions of this paragraph are not applicable
12    in   a  non-criminal  proceeding  before  the  Department  to
13    information furnished to a certified public accountant  or  a
14    public  accountant  licensed  to practice in this State under
15    the Illinois Public Accounting Act.
16        (b)  Public information. Nothing contained  in  this  Act
17    shall   prevent   the  Director  from  publishing  or  making
18    available to the public the names and  addresses  of  persons
19    filing  returns  under this Act, or from publishing or making
20    available reasonable statistics concerning the  operation  of
21    the  tax  wherein  the  contents  of returns are grouped into
22    aggregates in such a way that the  information  contained  in
23    any individual return shall not be disclosed.
24        (c)  Governmental   agencies.   The   Director  may  make
25    available to the Secretary of  the  Treasury  of  the  United
26    States or his delegate, or the proper officer or his delegate
27    of any other state imposing a tax upon or measured by income,
28    for  exclusively  official  purposes, information received by
29    the Department in the administration of this  Act,  but  such
30    permission shall be granted only if the United States or such
31    other  state,  as  the  case  may  be,  grants the Department
32    substantially similar privileges.  The Director may  exchange
33    information  with  the  Illinois Department of Public Aid and
34    the Department of Human Services (acting as successor to  the
 
                            -9-      LRB093 02634 SJM 02644 b
 1    Department  of  Public  Aid  under  the  Department  of Human
 2    Services Act)  for  the  purpose  of  verifying  sources  and
 3    amounts  of  income and for other purposes directly connected
 4    with the administration of this Act and the  Illinois  Public
 5    Aid  Code.  The  Director  may  exchange information with the
 6    Director of the Department of  Employment  Security  for  the
 7    purpose  of  verifying  sources and amounts of income and for
 8    other purposes directly connected with the administration  of
 9    this   Act   and  Acts  administered  by  the  Department  of
10    Employment Security. The Director may make available  to  the
11    Illinois    Industrial   Commission   information   regarding
12    employers for the purpose of verifying the insurance coverage
13    required under the Workers'  Compensation  Act  and  Workers'
14    Occupational Diseases Act.
15        The  Director  may  make  available  to any State agency,
16    including the Illinois Supreme Court, which licenses  persons
17    to  engage  in  any  occupation,  information  that  a person
18    licensed by such agency has failed to file returns under this
19    Act or pay the tax, penalty and interest  shown  therein,  or
20    has  failed  to  pay  any final assessment of tax, penalty or
21    interest due under this  Act.  The  Director  may  also  make
22    available  to  the  Secretary  of  State  information  that a
23    corporation  which  has  been   issued   a   certificate   of
24    incorporation  by  the  Secretary of State has failed to file
25    returns under this Act or pay the tax, penalty  and  interest
26    shown  therein,  or has failed to pay any final assessment of
27    tax, penalty or interest due under this Act. An assessment is
28    final when all  proceedings  in  court  for  review  of  such
29    assessment have terminated or the time for the taking thereof
30    has  expired  without such proceedings being instituted.  For
31    taxable years ending on  or  after  December  31,  1987,  the
32    Director  may  make  available  to  the Director or principal
33    officer  of  any  Department  of  the  State   of   Illinois,
34    information  that  a  person  employed by such Department has
 
                            -10-     LRB093 02634 SJM 02644 b
 1    failed to file returns under this Act or pay the tax, penalty
 2    and interest shown therein.  For purposes of this  paragraph,
 3    the word "Department" shall have the same meaning as provided
 4    in  Section  3  of the State Employees Group Insurance Act of
 5    1971.
 6        (d)  The  Director  shall  make  available   for   public
 7    inspection  in  the  Department's  principal  office  and for
 8    publication, at cost, administrative decisions issued  on  or
 9    after  January  1,  1995.  These  decisions  are  to  be made
10    available  in  a  manner  so  that  the  following   taxpayer
11    information is not disclosed:
12             (1)  The   names,   addresses,   and  identification
13        numbers of the taxpayer, related entities, and employees.
14             (2)  At the sole discretion of the  Director,  trade
15        secrets  or  other confidential information identified as
16        such by the taxpayer, no later than 30 days after receipt
17        of an administrative  decision,  by  such  means  as  the
18        Department shall provide by rule.
19        The  Director  shall  determine the appropriate extent of
20    the deletions allowed in paragraph  (2).  In  the  event  the
21    taxpayer  does  not submit deletions, the Director shall make
22    only the deletions specified in paragraph (1).
23        The Director shall make available for  public  inspection
24    and  publication  an  administrative decision within 180 days
25    after the issuance of the administrative decision.  The  term
26    "administrative  decision" has the same meaning as defined in
27    Section 3-101 of Article III of the Code of Civil  Procedure.
28    Costs collected under this Section shall be paid into the Tax
29    Compliance and Administration Fund.
30        (e)  Nothing  contained  in  this  Act  shall prevent the
31    Director from divulging information to any person pursuant to
32    a request or  authorization  made  by  the  taxpayer,  by  an
33    authorized representative of the taxpayer, or, in the case of
34    information  related  to a joint return, by the spouse filing
 
                            -11-     LRB093 02634 SJM 02644 b
 1    the joint return with the taxpayer.
 2    (Source: P.A. 89-507, eff. 7-1-97; 90-491, eff. 1-1-98.)

 3        (35 ILCS 5/917.5 new)
 4        Sec. 917.5.  Civil damages; disclosure of information.
 5        (a)  If any officer or employee  of  the  Department,  in
 6    violation  of  Section 917, knowingly or negligently divulges
 7    information received by the Department from returns filed  by
 8    a taxpayer under this Act or from any investigation conducted
 9    with  respect to a taxpayer under the provisions of this Act,
10    the taxpayer may bring a civil action for damages against the
11    Department in the Court of Claims.
12        (b)  If any person who is not an officer or  employee  of
13    the  Department,  in  violation  of Section 917, knowingly or
14    negligently divulges information  from  returns  filed  by  a
15    taxpayer  under  this Act or from any investigation conducted
16    with respect to a taxpayer under the provision of  this  Act,
17    the  taxpayer  may  bring  a civil action for damages against
18    that person in the circuit court  of  the  county  where  the
19    taxpayer  has his or her residence or commercial domicile, or
20    Cook County  if  the  taxpayer  does  not  have  his  or  her
21    residence or commercial domicile in this State.
22        (c)  No  liability  shall arise under this Section if the
23    disclosure of information was a result of a good  faith,  but
24    erroneous, interpretation of Section 917.
25        (d)  In  any  action brought under subsection (a) or (b),
26    upon a finding of liability on the part of the defendant, the
27    defendant shall be liable to the plaintiff (i) in  an  amount
28    equal   to  the  greater  of  (A)  $1,000  for  each  act  of
29    unauthorized disclosure of information or (B) the  amount  of
30    damages, up to $100,000, in the case of willful disclosure or
31    a  disclosure that is the result of gross negligence and (ii)
32    costs and reasonable attorney's fees.
 
                            -12-     LRB093 02634 SJM 02644 b
 1        Section 15.  The Use  Tax  Act  is  amended  by  changing
 2    Sections 19 and 20 as follows:

 3        (35 ILCS 105/19) (from Ch. 120, par. 439.19)
 4        Sec.  19.  If  it  shall  appear that an amount of tax or
 5    penalty or interest has been paid in error hereunder  to  the
 6    Department   by   a  purchaser,  as  distinguished  from  the
 7    retailer, whether such amount be paid through  a  mistake  of
 8    fact  or an error of law, such purchaser may file a claim for
 9    credit or refund  with  the  Department  in  accordance  with
10    Sections  6,  6a, 6b, and 6c of the Retailers' Occupation Tax
11    Act. If it shall appear that an amount of tax or  penalty  or
12    interest  has  been paid in error to the Department hereunder
13    by a retailer who is required or authorized  to  collect  and
14    remit  the  use  tax,  whether  such amount be paid through a
15    mistake of fact or an error of law, such retailer may file  a
16    claim  for credit or refund with the Department in accordance
17    with Sections 6, 6a, 6b, and 6c of the Retailers'  Occupation
18    Tax  Act,  provided that no credit or refund shall be allowed
19    for any amount paid by any  such  retailer  unless  it  shall
20    appear  that  he  bore  the burden of such amount and did not
21    shift the burden thereof to anyone else (as in the case of  a
22    duplicated  tax  payment  which  the  retailer  made  to  the
23    Department  and  did not collect from anyone else), or unless
24    it  shall  appear  that  he  or  she  or  his  or  her  legal
25    representative has unconditionally repaid such amount to  his
26    vendee  (1)  who  bore the burden thereof and has not shifted
27    such burden directly or indirectly in any manner  whatsoever;
28    (2)   who,   if  he  has  shifted  such  burden,  has  repaid
29    unconditionally such amount to his or her own vendee, and (3)
30    who is not entitled to  receive  any  reimbursement  therefor
31    from  any  other  source  than  from  his  vendor,  nor to be
32    relieved of such burden in any other manner whatsoever. If it
33    shall appear that an amount of tax has  been  paid  in  error
 
                            -13-     LRB093 02634 SJM 02644 b
 1    hereunder  by  the purchaser to a retailer, who retained such
 2    tax as reimbursement for his or her tax liability on the same
 3    sale  under  the  Retailers'  Occupation  Tax  Act,  and  who
 4    remitted the amount involved  to  the  Department  under  the
 5    Retailers'  Occupation  Tax  Act, whether such amount be paid
 6    through a mistake of fact or an error of law,  the  procedure
 7    for  recovering such tax shall be that prescribed in Sections
 8    6, 6a, 6b and 6c of the Retailers' Occupation Tax Act.
 9        Any credit or refund that is allowed under  this  Section
10    shall  bear  interest at the rate and in the manner specified
11    in the Uniform Penalty and Interest Act.
12        Any claim filed hereunder shall  be  filed  upon  a  form
13    prescribed  and  furnished by the Department. The claim shall
14    be signed  by  the  claimant  (or  by  the  claimant's  legal
15    representative  if  the  claimant shall have died or become a
16    person under legal disability), or by a duly authorized agent
17    of the claimant or his or her legal representative.
18        A claim for credit or refund shall be considered to  have
19    been  filed  with the Department on the date upon which it is
20    received by the Department. Upon receipt  of  any  claim  for
21    credit  or  refund  filed  under  this  Act,  any  officer or
22    employee of the Department,  authorized  in  writing  by  the
23    Director  of Revenue to acknowledge receipt of such claims on
24    behalf of the Department, shall  execute  on  behalf  of  the
25    Department,  and shall deliver or mail to the claimant or his
26    duly authorized agent, a written receipt, acknowledging  that
27    the  claim has been filed with the Department, describing the
28    claim in sufficient detail to identify  it  and  stating  the
29    date  upon  which  the  claim was received by the Department.
30    Such written receipt shall be prima facie evidence  that  the
31    Department  received  the claim described in such receipt and
32    shall be prima facie evidence of the date when such claim was
33    received by the Department. In the absence of such a  written
34    receipt,  the  records of the Department as to when the claim
 
                            -14-     LRB093 02634 SJM 02644 b
 1    was received by the Department, or as to whether or  not  the
 2    claim  was received at all by the Department, shall be deemed
 3    to be prima facie correct upon these questions in  the  event
 4    of  any  dispute  between  the  claimant (or his or her legal
 5    representative)   and   the   Department   concerning   these
 6    questions.
 7        In case the Department determines that  the  claimant  is
 8    entitled  to  a  refund,  such refund shall be made only from
 9    such appropriation as may be available for that  purpose.  If
10    it appears unlikely that the amount appropriated would permit
11    everyone  having a claim allowed during the period covered by
12    such appropriation to elect to receive  a  cash  refund,  the
13    Department,  by  rule  or  regulation,  shall provide for the
14    payment of refunds in hardship cases and  shall  define  what
15    types of cases qualify as hardship cases.
16        If  a  retailer  who  has  failed to pay use tax on gross
17    receipts from retail sales is required by the  Department  to
18    pay  such tax, such retailer, without filing any formal claim
19    with the Department, shall be allowed to take credit  against
20    such  use  tax liability to the extent, if any, to which such
21    retailer  has  paid  an  amount  equivalent   to   retailers'
22    occupation  tax  or  has  paid use tax in error to his or her
23    vendor or vendors of  the  same  tangible  personal  property
24    which  such  retailer bought for resale and did not first use
25    before selling it,  and  no  penalty  or  interest  shall  be
26    charged  to  such  retailer  on  the  amount  of such credit.
27    However, when such credit is allowed to the retailer  by  the
28    Department,  the  vendor  is  precluded from refunding any of
29    that tax to the retailer and filing a  claim  for  credit  or
30    refund   with   respect  thereto  with  the  Department.  The
31    provisions  of  this  amendatory   Act   shall   be   applied
32    retroactively, regardless of the date of the transaction.
33    (Source: P.A. 90-562, eff. 12-16-97.)
 
                            -15-     LRB093 02634 SJM 02644 b
 1        (35 ILCS 105/20) (from Ch. 120, par. 439.20)
 2        Sec.  20. As soon as practicable after a claim for credit
 3    or refund is filed, the Department shall examine the same and
 4    determine the  amount  of  credit  or  refund  to  which  the
 5    claimant or the claimant's legal representative, in the event
 6    that  the  claimant  shall have died or become a person under
 7    legal disability, is entitled and shall,  by  its  Notice  of
 8    Tentative  Determination of Claim, notify the claimant or his
 9    or her legal  representative  of  such  determination,  which
10    determination  shall  be  prima  facie correct. Proof of such
11    determination by the Department may be made  at  any  hearing
12    before  the  Department  or  in  any  legal  proceeding  by a
13    reproduced copy of the Department's record relating  thereto,
14    in  the  name  of the Department under the certificate of the
15    Director of Revenue.  Such  reproduced  copy  shall,  without
16    further   proof,   be   admitted  into  evidence  before  the
17    Department or in any legal  proceeding  and  shall  be  prima
18    facie   proof   of   the   correctness  of  the  Department's
19    determination, as shown therein. If  such  claimant,  or  the
20    legal representative of a deceased claimant or a claimant who
21    is  a  person  under  legal  disability shall, within 60 days
22    after the Department's Notice of Tentative  Determination  of
23    Claim,  file a protest thereto and request a hearing thereon,
24    the Department shall give notice to  such  claimant,  or  the
25    legal  representative  of  a deceased claimant, or a claimant
26    who is a person under legal disability of the time and  place
27    fixed   for  such  hearing,  and  shall  hold  a  hearing  in
28    conformity with the provisions  of  this  Act,  and  pursuant
29    thereto shall issue its Final Determination of the amount, if
30    any,  found  to  be  due as a result of such hearing, to such
31    claimant, or the legal representative of a deceased  claimant
32    or a claimant who is a person under legal disability.
33        If  a  protest  to  the  Department's Notice of Tentative
34    Determination of Claim is not filed  within  60  days  and  a
 
                            -16-     LRB093 02634 SJM 02644 b
 1    request for a hearing thereon is not made as provided herein,
 2    the said Notice shall thereupon become and operate as a Final
 3    Determination;  and,  if the Department's Notice of Tentative
 4    Determination, upon becoming a Final Determination, indicates
 5    no amount due to the claimant, or, upon issuance of a  credit
 6    or  refund for the amount, if any, found by the Department to
 7    be due, the claim in all its aspects shall be closed  and  no
 8    longer  open  to protest, hearing, judicial review, or by any
 9    other  proceeding  or  action  whatever,  either  before  the
10    Department or in any court of this State. Claims  for  credit
11    or   refund  hereunder  must  be  filed  with  and  initially
12    determined by the  Department,  the  remedy  herein  provided
13    being  exclusive;  and  no  court  shall have jurisdiction to
14    determine the merits of  any  claim  except  upon  review  as
15    provided in this Act.
16    (Source: P.A. 90-491, eff. 1-1-98.)

17        Section  20.  The  Service  Use  Tax  Act  is  amended by
18    changing Sections 17 and 18 as follows:

19        (35 ILCS 110/17) (from Ch. 120, par. 439.47)
20        Sec. 17. If it shall appear that  an  amount  of  tax  or
21    penalty  or  interest has been paid in error hereunder to the
22    Department  by  a  purchaser,  as  distinguished   from   the
23    serviceman,  whether such amount be paid through a mistake of
24    fact or an error of law, such purchaser may file a claim  for
25    credit or refund with the Department. If it shall appear that
26    an  amount  of  tax  or  penalty or interest has been paid in
27    error to the Department hereunder  by  a  serviceman  who  is
28    required  or  authorized to collect and remit the Service Use
29    Tax, whether such amount be paid through a mistake of fact or
30    an error of law, such serviceman may file a claim for  credit
31    or  refund with the Department, provided that no credit shall
32    be allowed or refund made for any amount  paid  by  any  such
 
                            -17-     LRB093 02634 SJM 02644 b
 1    serviceman  unless it shall appear that he bore the burden of
 2    such amount and did not shift the burden  thereof  to  anyone
 3    else  (as  in  the case of a duplicated tax payment which the
 4    serviceman made to the Department and did  not  collect  from
 5    anyone  else), or unless it shall appear that he or his legal
 6    representative has unconditionally repaid such amount to  his
 7    vendee  (1)  who  bore the burden thereof and has not shifted
 8    such burden directly or indirectly in any manner  whatsoever;
 9    (2)   who,   if  he  has  shifted  such  burden,  has  repaid
10    unconditionally such amount to his own vendee, and (3) who is
11    not entitled to receive any reimbursement therefor  from  any
12    other source than from his vendor, nor to be relieved of such
13    burden  in  any  other  manner whatsoever. If it shall appear
14    that an amount of tax has been paid in error hereunder by the
15    purchaser  to  a  serviceman,  who  retained  such   tax   as
16    reimbursement  for  his  tax  liability  on  the same sale of
17    service under the Service Occupation Tax Act,  and  who  paid
18    such  tax  as  required  by  the  Service Occupation Tax Act,
19    whether such amount be paid through a mistake of fact  or  an
20    error  of law, the procedure for recovering such tax shall be
21    that prescribed in Sections 17, 18, 19 and 20 of the  Service
22    Occupation Tax Act.
23        Any  credit  or refund that is allowed under this Section
24    shall bear interest at the rate and in the  manner  specified
25    in the Uniform Penalty and Interest Act.
26        Any  claim  filed  hereunder  shall  be filed upon a form
27    prescribed and furnished by the Department. The  claim  shall
28    be  signed  by  the  claimant  (or  by  the  claimant's legal
29    representative if the claimant shall have died  or  become  a
30    person under legal disability), or by a duly authorized agent
31    of the claimant or his or her legal representative.
32        A  claim for credit or refund shall be considered to have
33    been filed with the Department on the date upon which  it  is
34    received  by  the  Department.  Upon receipt of any claim for
 
                            -18-     LRB093 02634 SJM 02644 b
 1    credit or  refund  filed  under  this  Act,  any  officer  or
 2    employee  of  the  Department,  authorized  in writing by the
 3    Director of Revenue to acknowledge receipt of such claims  on
 4    behalf  of  the  Department,  shall  execute on behalf of the
 5    Department, and shall deliver or mail to the claimant or  his
 6    duly  authorized agent, a written receipt, acknowledging that
 7    the claim has been filed with the Department, describing  the
 8    claim  in  sufficient  detail  to identify it and stating the
 9    date upon which the claim was  received  by  the  Department.
10    Such  written  receipt shall be prima facie evidence that the
11    Department received the claim described in such  receipt  and
12    shall be prima facie evidence of the date when such claim was
13    received  by the Department. In the absence of such a written
14    receipt, the records of the Department as to when  the  claim
15    was  received  by the Department, or as to whether or not the
16    claim was received at all by the Department, shall be  deemed
17    to  be  prima facie correct upon these questions in the event
18    of any dispute between the claimant  (or  his  or  her  legal
19    representative)   and   the   Department   concerning   these
20    questions.
21        In  case  the  Department determines that the claimant is
22    entitled to a refund, such refund shall  be  made  only  from
23    such  appropriation  as may be available for that purpose. If
24    it appears unlikely that the amount appropriated would permit
25    everyone having a claim allowed during the period covered  by
26    such  appropriation  to  elect  to receive a cash refund, the
27    Department, by rule or  regulation,  shall  provide  for  the
28    payment  of  refunds  in hardship cases and shall define what
29    types of cases qualify as hardship cases.
30    (Source: P.A. 87-205.)

31        (35 ILCS 110/18) (from Ch. 120, par. 439.48)
32        Sec. 18. As soon as practicable after a claim for  credit
33    or refund is filed, the Department shall examine the same and
 
                            -19-     LRB093 02634 SJM 02644 b
 1    determine  the  amount  of  credit  or  refund  to  which the
 2    claimant or the claimant's legal representative, in the event
 3    that the claimant shall have died or become  a  person  under
 4    legal  disability,  is  entitled  and shall, by its Notice of
 5    Tentative Determination of Claim, notify the claimant or  his
 6    legal    representative    of   such   determination,   which
 7    determination shall be prima facie  correct.  Proof  of  such
 8    determination  by  the  Department may be made at any hearing
 9    before the  Department  or  in  any  legal  proceeding  by  a
10    reproduced  copy of the Department's record relating thereto,
11    in the name of the Department under the  certificate  of  the
12    Director  of  Revenue.  Such  reproduced  copy shall, without
13    further  proof,  be  admitted  into   evidence   before   the
14    Department  or  in  any  legal  proceeding and shall be prima
15    facie  proof  of  the   correctness   of   the   Department's
16    determination,  as  shown  therein.  If such claimant, or the
17    legal representative of a deceased claimant or a claimant who
18    is a person under legal disability,  shall,  within  60  days
19    after  the  Department's Notice of Tentative Determination of
20    Claim, file a protest thereto and request a hearing  thereon,
21    the  Department  shall  give  notice to such claimant, or the
22    legal representative of a deceased claimant or  claimant  who
23    is  a  person  under  legal disability, of the time and place
24    fixed  for  such  hearing,  and  shall  hold  a  hearing   in
25    conformity  with  the  provisions  of  this Act, and pursuant
26    thereto shall issue its Final Determination of the amount, if
27    any, found to be due as a result of  such  hearing,  to  such
28    claimant,  or  the  legal  representative  of  a  deceased or
29    incompetent claimant.
30        If a protest to  the  Department's  Notice  of  Tentative
31    Determination  of  Claim  is  not  filed within 60 days and a
32    request for a hearing thereon is not made as provided herein,
33    the Notice shall thereupon become  and  operate  as  a  Final
34    Determination;  and,  if the Department's Notice of Tentative
 
                            -20-     LRB093 02634 SJM 02644 b
 1    Determination upon becoming a Final Determination,  indicates
 2    no  amount due to the claimant, or, upon issuance of a credit
 3    or refund for the amount, if any, found by the Department  to
 4    be  due,  the claim in all its aspects shall be closed and no
 5    longer open to protest, hearing, judicial review, or  by  any
 6    other  proceeding  or  action  whatever,  either  before  the
 7    Department  or  in any court of this State. Claims for credit
 8    or  refund  hereunder  must  be  filed  with  and   initially
 9    determined  by  the  Department,  the  remedy herein provided
10    being exclusive; and no  court  shall  have  jurisdiction  to
11    determine  the  merits  of  any  claim  except upon review as
12    provided in this Act.
13    (Source: P.A. 90-491, eff. 1-1-98.)

14        Section 25.  The Service Occupation Tax Act is amended by
15    changing Sections 17 and 18 as follows:

16        (35 ILCS 115/17) (from Ch. 120, par. 439.117)
17        Sec. 17. If it shall appear that  an  amount  of  tax  or
18    penalty or interest has been paid in error hereunder directly
19    to  the  Department  by  a serviceman, whether such amount be
20    paid through a mistake of fact  or  an  error  of  law,  such
21    serviceman  may  file  a  claim for credit or refund with the
22    Department. If it shall appear  that  an  amount  of  tax  or
23    penalty  or interest has been paid in error to the Department
24    hereunder by a supplier who  is  required  or  authorized  to
25    collect  and  remit  the Service Occupation Tax, whether such
26    amount be paid through a mistake of fact or an error of  law,
27    such  supplier may file a claim for credit or refund with the
28    Department, provided that no credit shall be allowed nor  any
29    refund  made  for any amount paid by any such supplier unless
30    it shall appear that he bore the burden of  such  amount  and
31    did  not  shift  the burden thereof to anyone else (as in the
32    case of a duplicated tax payment which the supplier  made  to
 
                            -21-     LRB093 02634 SJM 02644 b
 1    the  Department  and  did  not  collect from anyone else), or
 2    unless it shall appear that he or  his  legal  representative
 3    has  unconditionally repaid such amount to his vendee (1) who
 4    bore the burden thereof  and  has  not  shifted  such  burden
 5    directly  or indirectly in any manner whatsoever; (2) who, if
 6    he has shifted such burden, has repaid  unconditionally  such
 7    amount  to  his  own  vendee,  and (3) who is not entitled to
 8    receive any reimbursement therefor from any other source than
 9    from his supplier, nor to be relieved of such burden  in  any
10    other manner whatsoever.
11        Any  credit  or refund that is allowed under this Section
12    shall bear interest at the rate and in the  manner  specified
13    in the Uniform Penalty and Interest Act.
14        Any  claim  filed  hereunder  shall  be filed upon a form
15    prescribed and furnished by the Department. The  claim  shall
16    be  signed  by  the  claimant  (or  by  the  claimant's legal
17    representative if the claimant shall have died  or  become  a
18    person under legal disability), or by a duly authorized agent
19    of the claimant or his or her legal representative.
20        A  claim for credit or refund shall be considered to have
21    been filed with the Department on the date upon which  it  is
22    received  by  the  Department.  Upon receipt of any claim for
23    credit or  refund  filed  under  this  Act,  any  officer  or
24    employee  of  the  Department,  authorized  in writing by the
25    Director of Revenue to acknowledge receipt of such claims  on
26    behalf  of  the  Department,  shall  execute on behalf of the
27    Department, and shall deliver or mail to the claimant or  his
28    or   her   duly   authorized   agent,   a   written  receipt,
29    acknowledging  that  the  claim  has  been  filed  with   the
30    Department,  describing  the  claim  in  sufficient detail to
31    identify it and stating the date upon  which  the  claim  was
32    received  by  the  Department.  Such written receipt shall be
33    prima facie evidence that the Department received  the  claim
34    described  in  such receipt and shall be prima facie evidence
 
                            -22-     LRB093 02634 SJM 02644 b
 1    of the date when such claim was received by  the  Department.
 2    In  the absence of such a written receipt, the records of the
 3    Department  as  to  when  the  claim  was  received  by   the
 4    Department, or as to whether or not the claim was received at
 5    all  by  the  Department,  shall  be deemed to be prima facie
 6    correct upon these questions in  the  event  of  any  dispute
 7    between  the  claimant  (or his legal representative) and the
 8    Department concerning these questions.
 9        In case the Department determines that  the  claimant  is
10    entitled  to  a  refund,  such refund shall be made only from
11    such appropriation as may be available for that  purpose.  If
12    it appears unlikely that the amount appropriated would permit
13    everyone  having a claim allowed during the period covered by
14    such appropriation to elect to receive  a  cash  refund,  the
15    Department,  by  rule  or  regulation,  shall provide for the
16    payment of refunds in hardship cases and  shall  define  what
17    types of cases qualify as hardship cases.
18    (Source: P.A. 87-205.)

19        (35 ILCS 115/18) (from Ch. 120, par. 439.118)
20        Sec.  18. As soon as practicable after a claim for credit
21    or refund is filed, the Department shall examine the same and
22    determine the  amount  of  credit  or  refund  to  which  the
23    claimant or the claimant's legal representative, in the event
24    that  the  claimant  shall have died or become a person under
25    legal disability, is entitled and shall,  by  its  Notice  of
26    Tentative  Determination of Claim, notify the claimant or his
27    or her legal  representative  of  such  determination,  which
28    determination  shall  be  prima  facie correct. Proof of such
29    determination by the Department may be made  at  any  hearing
30    before  the  Department  or  in  any  legal  proceeding  by a
31    reproduced copy of the Department's record relating  thereto,
32    in  the  name  of the Department under the certificate of the
33    Director of Revenue.  Such  reproduced  copy  shall,  without
 
                            -23-     LRB093 02634 SJM 02644 b
 1    further   proof,   be   admitted  into  evidence  before  the
 2    Department or in any legal  proceeding  and  shall  be  prima
 3    facie   proof   of   the   correctness  of  the  Department's
 4    determination, as shown therein. If  such  claimant,  or  the
 5    legal representative of a deceased claimant or a claimant who
 6    is  under  legal  disability  shall, within 60 days after the
 7    Department's Notice of Tentative Determination of Claim, file
 8    a  protest  thereto  and  request  a  hearing  thereon,   the
 9    Department  shall  give notice to such claimant, or the legal
10    representative of a deceased claimant or a  claimant  who  is
11    under  legal disability, of the time and place fixed for such
12    hearing, and shall hold a  hearing  in  conformity  with  the
13    provisions  of this Act, and pursuant thereto shall issue its
14    Final Determination of the amount, if any, found to be due as
15    a result of such hearing, to  such  claimant,  or  the  legal
16    representative  of  a  deceased claimant or a claimant who is
17    under legal disability.
18        If a protest to  the  Department's  Notice  of  Tentative
19    Determination  of  Claim  is  not  filed within 60 days and a
20    request for a hearing thereon is not made as provided herein,
21    the Notice shall thereupon become  and  operate  as  a  Final
22    Determination;  and,  if the Department's Notice of Tentative
23    Determination, upon becoming a Final Determination, indicates
24    no amount due to the claimant, or, upon issuance of a  credit
25    or  refund for the amount, if any, found by the Department to
26    be due, the claim in all its aspects shall be closed  and  no
27    longer  open  to protest, hearing, judicial review, or by any
28    other  proceeding  or  action  whatever,  either  before  the
29    Department or in any court of this State. Claims  for  credit
30    or   refund  hereunder  must  be  filed  with  and  initially
31    determined by the  Department,  the  remedy  herein  provided
32    being  exclusive;  and  no  court  shall have jurisdiction to
33    determine the merits of  any  claim  except  upon  review  as
34    provided in this Act.
 
                            -24-     LRB093 02634 SJM 02644 b
 1    (Source: P.A. 90-491, eff. 1-1-98.)

 2        Section 30.  The Retailers' Occupation Tax Act is amended
 3    by changing Sections 4, 5, 6a, and 6b as follows:

 4        (35 ILCS 120/4) (from Ch. 120, par. 443)
 5        Sec.  4.  As  soon  as  practicable  after  any return is
 6    filed, the Department shall examine such return and shall, if
 7    necessary, correct such return according to its best judgment
 8    and information.  If the correction of a return results in an
 9    amount of tax that is understated on  the  taxpayer's  return
10    due  to a mathematical error, the Department shall notify the
11    taxpayer that the amount of tax in excess of  that  shown  on
12    the   return   is   due  and  has  been  assessed.  The  term
13    "mathematical error" means  arithmetic  errors  or  incorrect
14    computations  on  the return or supporting schedules. No such
15    notice of additional tax due shall be  issued  on  and  after
16    each  July  1  and January 1 covering gross receipts received
17    during any month or period of time more than 3 years prior to
18    such July 1 and January  1,  respectively.   Such  notice  of
19    additional  tax  due  shall not be considered a notice of tax
20    liability nor shall the taxpayer have any right of protest.
21    In the event that the return  is  corrected  for  any  reason
22    other  than  a mathematical error, any return so corrected by
23    the Department shall be prima  facie  correct  and  shall  be
24    prima  facie evidence of the correctness of the amount of tax
25    due,  as  shown  therein.   In  correcting   transaction   by
26    transaction  reporting  returns  provided for in Section 3 of
27    this Act, it shall be permissible for the Department to  show
28    a  single  corrected  return figure for any given period of a
29    calendar month instead of having to correct each  transaction
30    by  transaction return form individually and having to show a
31    corrected return figure  for  each  of  such  transaction  by
32    transaction   return   forms.   In  making  a  correction  of
 
                            -25-     LRB093 02634 SJM 02644 b
 1    transaction by  transaction,  monthly  or  quarterly  returns
 2    covering   a  period  of  6  months  or  more,  it  shall  be
 3    permissible for the Department to  show  a  single  corrected
 4    return figure for any given 6-month period.
 5        Instead  of  requiring  the  person filing such return to
 6    file an amended return, the Department may simply notify  him
 7    of the correction or corrections it has made.
 8        Proof of such correction by the Department may be made at
 9    any  hearing before the Department or in any legal proceeding
10    by  a  reproduced  copy  or   computer   print-out   of   the
11    Department's  record  relating  thereto  in  the  name of the
12    Department under the certificate of the Director of  Revenue.
13    If  reproduced copies of the Department's records are offered
14    as proof of such correction, the Director must  certify  that
15    those  copies  are  true  and exact copies of records on file
16    with  the  Department.   If  computer   print-outs   of   the
17    Department's records are offered as proof of such correction,
18    the  Director must certify that those computer print-outs are
19    true and exact representations of  records  properly  entered
20    into  standard electronic computing equipment, in the regular
21    course of the Department's business, at  or  reasonably  near
22    the  time  of  the  occurrence  of  the  facts recorded, from
23    trustworthy  and   reliable   information.   Such   certified
24    reproduced copy or certified computer print-out shall without
25    further   proof,   be   admitted  into  evidence  before  the
26    Department or in any legal  proceeding  and  shall  be  prima
27    facie  proof  of the correctness of the amount of tax due, as
28    shown therein.
29        If the tax computed upon the basis of the gross  receipts
30    as  fixed by the Department is greater than the amount of tax
31    due under the return or  returns  as  filed,  the  Department
32    shall  (or if the tax or any part thereof that is admitted to
33    be due by a return or returns, whether filed on time or  not,
34    is  not paid, the Department may) issue the taxpayer a notice
 
                            -26-     LRB093 02634 SJM 02644 b
 1    of tax liability  for  the  amount  of  tax  claimed  by  the
 2    Department  to  be  due, together with a penalty in an amount
 3    determined in accordance with  Section  3-3  of  the  Uniform
 4    Penalty and Interest Act. Provided, that if the incorrectness
 5    of  any  return or returns as determined by the Department is
 6    due to negligence or fraud,  said  penalty  shall  be  in  an
 7    amount  determined  in accordance with Section 3-5 or Section
 8    3-6 of the Uniform Penalty and Interest Act, as the case  may
 9    be.  If  the  notice  of  tax  liability  is  not  based on a
10    correction of the taxpayer's return or returns, but is  based
11    on  the  taxpayer's  failure  to pay all or a part of the tax
12    admitted by his return or returns (whether filed on  time  or
13    not)  to  be due, such notice of tax liability shall be prima
14    facie correct and  shall  be  prima  facie  evidence  of  the
15    correctness of the amount of tax due, as shown therein.
16        Proof  of  such notice of tax liability by the Department
17    may be made at any hearing before the Department  or  in  any
18    legal  proceeding  by  a  reproduced copy of the Department's
19    record relating thereto in the name of the  Department  under
20    the  certificate of the Director of Revenue.  Such reproduced
21    copy shall without further proof, be admitted  into  evidence
22    before the Department or in any legal proceeding and shall be
23    prima  facie  proof  of  the correctness of the amount of tax
24    due, as shown therein.
25        If the person filing any return dies or becomes a  person
26    under  legal  disability  at  any  time before the Department
27    issues its notice of tax  liability,  such  notice  shall  be
28    issued   to   the  administrator,  executor  or  other  legal
29    representative, as such, of such person.
30        Except in case of a fraudulent return, or in the case  of
31    an  amended  return  (where  a notice of tax liability may be
32    issued on or after each January 1 and July 1 for  an  amended
33    return filed not more than 3 years prior to such January 1 or
34    July  1,  respectively),  no notice of tax liability shall be
 
                            -27-     LRB093 02634 SJM 02644 b
 1    issued on and after each January 1 and July 1 covering  gross
 2    receipts  received  during  any  month or period of time more
 3    than  3  years  prior  to  such  January  1   and   July   1,
 4    respectively.    If,   before  the  expiration  of  the  time
 5    prescribed in this Section for the issuance of  a  notice  of
 6    tax  liability,  both  the  Department  and the taxpayer have
 7    consented in writing to its issuance after  such  time,  such
 8    notice  may  be issued at any time prior to the expiration of
 9    the period agreed upon.  The period so  agreed  upon  may  be
10    extended  by subsequent agreements in writing made before the
11    expiration  of  the  period  previously  agreed   upon.   The
12    foregoing  limitations  upon  the issuance of a notice of tax
13    liability shall not apply to the issuance of a notice of  tax
14    liability with respect to any period of time prior thereto in
15    cases   where  the  Department  has,  within  the  period  of
16    limitation then provided,  notified  the  person  making  the
17    return  of a notice of tax liability even though such return,
18    with which the tax that was shown by such return  to  be  due
19    was paid when the return was filed, had not been corrected by
20    the  Department  in  the  manner required herein prior to the
21    issuance of such notice, but in no case shall the  amount  of
22    any  such  notice  of  tax liability for any period otherwise
23    barred by this Act exceed for such period the amount shown in
24    the notice of tax liability theretofore issued.
25        If, when a tax or penalty under this Act becomes due  and
26    payable,  the  person alleged to be liable therefor is out of
27    the State, the notice of tax liability may be  issued  within
28    the  times  herein limited after his coming into or return to
29    the State; and if, after the tax or penalty  under  this  Act
30    becomes  due  and  payable,  the  person alleged to be liable
31    therefor departs from and remains out of the State, the  time
32    of  his or her absence is no part of the time limited for the
33    issuance of the notice of tax liability;  but  the  foregoing
34    provisions  concerning absence from the State shall not apply
 
                            -28-     LRB093 02634 SJM 02644 b
 1    to any case in which, at the  time  when  a  tax  or  penalty
 2    becomes  due  under  this  Act,  the  person allegedly liable
 3    therefor is not a resident of this State.
 4        The time limitation period on the Department's  right  to
 5    issue  a  notice  of  tax  liability shall not run during any
 6    period of time in which the Order of any Court has the effect
 7    of enjoining or restraining the Department from  issuing  the
 8    notice of tax liability.
 9        If  such  person  or legal representative shall within 60
10    days after such notice of tax liability  file  a  protest  to
11    said  notice  of tax liability and request a hearing thereon,
12    the Department shall give notice  to  such  person  or  legal
13    representative  of  the time and place fixed for such hearing
14    and shall hold a hearing in conformity with the provisions of
15    this Act, and pursuant thereto shall issue to such person  or
16    legal  representative a final assessment for the amount found
17    to be due as a result of such hearing.
18        If a protest to the notice of tax liability and a request
19    for a hearing thereon is not filed within 60 days after  such
20    notice,  such  notice  of  tax  liability  shall become final
21    without the necessity of a final assessment being issued  and
22    shall be deemed to be a final assessment.
23        After  the issuance of a final assessment, or a notice of
24    tax liability which becomes final without  the  necessity  of
25    actually issuing a final assessment as hereinbefore provided,
26    the Department, at any time before such assessment is reduced
27    to judgment, may (subject to rules of the Department) grant a
28    rehearing  (or grant departmental review and hold an original
29    hearing if no previous hearing in the matter has  been  held)
30    upon  the  application  of the person aggrieved.  Pursuant to
31    such hearing or  rehearing,  the  Department  shall  issue  a
32    revised   final  assessment  to  such  person  or  his  legal
33    representative for the amount found to be due as a result  of
34    such hearing or rehearing.
 
                            -29-     LRB093 02634 SJM 02644 b
 1    (Source: P.A. 89-379, eff. 1-1-96.)

 2        (35 ILCS 120/5) (from Ch. 120, par. 444)
 3        Sec.  5.  In  case  any person engaged in the business of
 4    selling tangible personal property at retail fails to file  a
 5    return  when and as herein required, but thereafter, prior to
 6    the Department's issuance of a notice of tax liability  under
 7    this  Section, files a return and pays the tax, he shall also
 8    pay a penalty in an  amount  determined  in  accordance  with
 9    Section 3-3 of the Uniform Penalty and Interest Act.
10        In  case  any  person  engaged in the business of selling
11    tangible personal property at retail files the return at  the
12    time  required  by  this Act but fails to pay the tax, or any
13    part thereof, when due, a penalty in an amount determined  in
14    accordance  with  Section  3-3  of  the  Uniform  Penalty and
15    Interest Act shall be added thereto.
16        In case any person engaged in  the  business  of  selling
17    tangible  personal  property at retail fails to file a return
18    when and as herein required, but  thereafter,  prior  to  the
19    Department's issuance of a notice of tax liability under this
20    Section,  files  a  return but fails to pay the entire tax, a
21    penalty in an amount determined in  accordance  with  Section
22    3-3  of  the  Uniform Penalty and Interest Act shall be added
23    thereto.
24        In case any person engaged in  the  business  of  selling
25    tangible  personal property at retail fails to file a return,
26    the Department shall determine the amount of tax due from him
27    according to its best judgment and information, which  amount
28    so  fixed  by the Department shall be prima facie correct and
29    shall be prima facie  evidence  of  the  correctness  of  the
30    amount  of tax due, as shown in such determination. In making
31    any such determination of tax due, it  shall  be  permissible
32    for  the  Department to show a figure that represents the tax
33    due for any given period of 6 months instead of  showing  the
 
                            -30-     LRB093 02634 SJM 02644 b
 1    amount  of  tax  due for each month separately. Proof of such
 2    determination by the Department may be made  at  any  hearing
 3    before  the  Department  or  in  any  legal  proceeding  by a
 4    reproduced copy or computer  print-out  of  the  Department's
 5    record  relating  thereto in the name of the Department under
 6    the certificate of the Director  of  Revenue.  If  reproduced
 7    copies  of  the  Department's records are offered as proof of
 8    such determination, the  Director  must  certify  that  those
 9    copies  are true and exact copies of records on file with the
10    Department.   If  computer  print-outs  of  the  Department's
11    records are offered  as  proof  of  such  determination,  the
12    Director must certify that those computer print-outs are true
13    and  exact  representations  of records properly entered into
14    standard  electronic  computing  equipment,  in  the  regular
15    course of the Department's business, at  or  reasonably  near
16    the  time  of  the  occurrence  of  the  facts recorded, from
17    trustworthy  and   reliable   information.   Such   certified
18    reproduced   copy  or  certified  computer  print-out  shall,
19    without further proof, be admitted into evidence  before  the
20    Department  or  in  any  legal  proceeding and shall be prima
21    facie proof of the correctness of the amount of tax  due,  as
22    shown  therein.  The  Department  shall  issue the taxpayer a
23    notice of tax liability for the amount of tax claimed by  the
24    Department to be due, together with a penalty of 30% thereof.
25        However,  where  the  failure  to  file  any  tax  return
26    required  under  this  Act  on  the  date prescribed therefor
27    (including  any  extensions  thereof),   is   shown   to   be
28    unintentional and nonfraudulent and has not occurred in the 2
29    years  immediately  preceding  the  failure  to  file  on the
30    prescribed date or is  due  to  other  reasonable  cause  the
31    penalties imposed by this Act shall not apply.
32        If such person or the legal representative of such person
33    files,  within  60  days after such notice, a protest to such
34    notice of tax liability and requests a hearing  thereon,  the
 
                            -31-     LRB093 02634 SJM 02644 b
 1    Department  shall  give  notice  to  such person or the legal
 2    representative of such person of the time and place fixed for
 3    such hearing, and shall hold a hearing in conformity with the
 4    provisions of this Act, and pursuant thereto  shall  issue  a
 5    final   assessment   to   such   person   or   to  the  legal
 6    representative of such person for the amount found to be  due
 7    as a result of such hearing.
 8        If a protest to the notice of tax liability and a request
 9    for  a hearing thereon is not filed within 60 days after such
10    notice, such notice  of  tax  liability  shall  become  final
11    without  the necessity of a final assessment being issued and
12    shall be deemed to be a final assessment.
13        After the issuance of a final assessment, or a notice  of
14    tax  liability  which  becomes final without the necessity of
15    actually issuing a final assessment as hereinbefore provided,
16    the Department, at any time before such assessment is reduced
17    to judgment, may (subject to rules of the Department) grant a
18    rehearing (or grant departmental review and hold an  original
19    hearing  if  no previous hearing in the matter has been held)
20    upon the application of the  person  aggrieved.  Pursuant  to
21    such  hearing  or  rehearing,  the  Department  shall issue a
22    revised  final  assessment  to  such  person  or  his   legal
23    representative for the amount found to be due as a result  of
24    such hearing or rehearing.
25        Except  in  case of failure to file a return, or with the
26    consent of the person to whom the notice of tax liability  is
27    to  be  issued, no notice of tax liability shall be issued on
28    and after each July 1 and January 1 covering  gross  receipts
29    received during any month or period of time more than 3 years
30    prior to such July 1 and January 1, respectively, except that
31    if  a  return  is not filed at the required time, a notice of
32    tax liability may be issued not later than 3 years after  the
33    time  the return is filed. The foregoing limitations upon the
34    issuance of a notice of tax liability shall not apply to  the
 
                            -32-     LRB093 02634 SJM 02644 b
 1    issuance  of  any  such  notice with respect to any period of
 2    time prior thereto in cases where the Department has,  within
 3    the  period of limitation then provided, notified a person of
 4    the amount of tax computed even though the Department had not
 5    determined the amount of tax due  from  such  person  in  the
 6    manner  required herein prior to the issuance of such notice,
 7    but in no case shall the amount of any  such  notice  of  tax
 8    liability  for any period otherwise barred by this Act exceed
 9    for such period the amount shown in  the  notice  theretofore
10    issued.
11        If,  when a tax or penalty under this Act becomes due and
12    payable, the person alleged to be liable therefor is  out  of
13    the  State,  the notice of tax liability may be issued within
14    the times herein limited after his  or  her  coming  into  or
15    return  to  the State; and if, after the tax or penalty under
16    this Act becomes due and payable, the person  alleged  to  be
17    liable  therefor  departs  from and remains out of the State,
18    the time of his or her absence is no part of the time limited
19    for the issuance of the notice  of  tax  liability;  but  the
20    foregoing  provisions concerning absence from the State shall
21    not apply to any case in which, at the time  when  a  tax  or
22    penalty  becomes  due  under  this  Act, the person allegedly
23    liable therefor is not a resident of this State.
24        The time limitation period on the Department's  right  to
25    issue  a  notice  of  tax  liability shall not run during any
26    period of time in which the order of any court has the effect
27    of enjoining or restraining the Department from  issuing  the
28    notice of tax liability.
29        In  case  of  failure  to  pay  the  tax,  or any portion
30    thereof,  or  any  penalty  provided  for  in  this  Act,  or
31    interest, when due, the Department may bring suit to  recover
32    the  amount  of  such  tax, or portion thereof, or penalty or
33    interest; or, if the taxpayer has died  or  become  a  person
34    under legal disability, may file a claim therefor against his
 
                            -33-     LRB093 02634 SJM 02644 b
 1    estate;  provided  that no such suit with respect to any tax,
 2    or  portion  thereof,  or  penalty,  or  interest  shall   be
 3    instituted  more  than 2 years after the date any proceedings
 4    in court for review thereof have terminated or the  time  for
 5    the taking thereof has expired without such proceedings being
 6    instituted,  except  with the consent of the person from whom
 7    such tax or penalty or interest is due; nor, except with such
 8    consent, shall such suit be  instituted  more  than  2  years
 9    after  the  date  any  return is filed with the Department in
10    cases where the return constitutes the basis for the suit for
11    unpaid tax, or portion thereof, or penalty  provided  for  in
12    this  Act,  or  interest:  Provided  that the time limitation
13    period on the Department's right to bring any such suit shall
14    not run during any period of time in which the order  of  any
15    court   has  the  effect  of  enjoining  or  restraining  the
16    Department from bringing such suit.
17        After the expiration  of  the  period  within  which  the
18    person  assessed may file an action for judicial review under
19    the Administrative Review Law without such  an  action  being
20    filed,  a  certified  copy of the final assessment or revised
21    final assessment of the Department  may  be  filed  with  the
22    Circuit  Court  of  the  county in which the taxpayer has his
23    principal place of business, or of Sangamon County  in  those
24    cases in which the taxpayer does not have his principal place
25    of  business  in  this State. The certified copy of the final
26    assessment or revised final assessment shall  be  accompanied
27    by a certification which recites facts that are sufficient to
28    show  that  the  Department  complied with the jurisdictional
29    requirements of the Act in arriving at its  final  assessment
30    or its revised final assessment and that the taxpayer had his
31    opportunity  for  an  administrative hearing and for judicial
32    review, whether he availed himself or herself  of  either  or
33    both of these opportunities or not. If the court is satisfied
34    that   the   Department   complied  with  the  jurisdictional
 
                            -34-     LRB093 02634 SJM 02644 b
 1    requirements of the Act in arriving at its  final  assessment
 2    or its revised final assessment and that the taxpayer had his
 3    opportunity  for  an  administrative hearing and for judicial
 4    review, whether he availed himself of either or both of these
 5    opportunities or not, the  court  shall  render  judgment  in
 6    favor  of  the  Department  and  against the taxpayer for the
 7    amount shown to be due by the final assessment or the revised
 8    final assessment, plus any interest which  may  be  due,  and
 9    such  judgment shall be entered in the judgment docket of the
10    court. Such judgment shall bear the rate of interest  as  set
11    by  the Uniform Penalty and Interest Act, but otherwise shall
12    have the same effect as other judgments. The judgment may  be
13    enforced,   and   all   laws  applicable  to  sales  for  the
14    enforcement of a judgment shall be applicable to  sales  made
15    under such judgments. The Department shall file the certified
16    copy  of its assessment, as herein provided, with the Circuit
17    Court within 2 years  after  such  assessment  becomes  final
18    except  when the taxpayer consents in writing to an extension
19    of such filing period, and except that  the  time  limitation
20    period  on  the Department's right to file the certified copy
21    of its assessment with the Circuit Court shall not run during
22    any period of time in which the order of any  court  has  the
23    effect of enjoining or restraining the Department from filing
24    such certified copy of its assessment with the Circuit Court.
25        If,  when  the  cause of action for a proceeding in court
26    accrues against a person, he or she is out of the State,  the
27    action  may  be  commenced  within  the times herein limited,
28    after his or her coming into or return to the State; and  if,
29    after the cause of action accrues, he or she departs from and
30    remains  out  of the State, the time of his or her absence is
31    no part of the time  limited  for  the  commencement  of  the
32    action;  but the foregoing provisions concerning absence from
33    the State shall not apply to any case in which, at  the  time
34    the cause of action accrues, the party against whom the cause
 
                            -35-     LRB093 02634 SJM 02644 b
 1    of  action  accrues is not a resident of this State. The time
 2    within which a  court  action  is  to  be  commenced  by  the
 3    Department hereunder shall not run from the date the taxpayer
 4    files  a  petition in bankruptcy under the Federal Bankruptcy
 5    Act until 30 days after notice of termination  or  expiration
 6    of the automatic stay imposed by the Federal Bankruptcy Act.
 7        No  claim  shall  be  filed  against  the  estate  of any
 8    deceased person or any person under legal disability for  any
 9    tax  or penalty or part of either, or interest, except in the
10    manner prescribed and within the time limited by the  Probate
11    Act of 1975, as amended.
12        The collection of tax or penalty or interest by any means
13    provided  for  herein  shall  not be a bar to any prosecution
14    under this Act.
15        In addition to any penalty provided for in this Act,  any
16    amount  of tax which is not paid when due shall bear interest
17    at the rate and in the manner specified in Sections  3-2  and
18    3-9  of  the  Uniform  Penalty and Interest Act from the date
19    when such tax becomes past due until such tax is  paid  or  a
20    judgment  therefor is obtained by the Department. If the time
21    for making or completing an audit of a taxpayer's  books  and
22    records  is  extended  with  the  taxpayer's  consent, at the
23    request of and for the convenience of the Department,  beyond
24    the  date  on  which  the  statute  of  limitations  upon the
25    issuance of a notice  of  tax  liability  by  the  Department
26    otherwise  would  run,  no  interest  shall accrue during the
27    period of such extension or until a Notice of  Tax  Liability
28    is issued, whichever occurs first.
29        In addition to any other remedy provided by this Act, and
30    regardless  of whether the Department is making or intends to
31    make use of such other remedy, where a corporation or limited
32    liability company registered  under  this  Act  violates  the
33    provisions   of  this  Act  or  of  any  rule  or  regulation
34    promulgated thereunder, the Department may give notice to the
 
                            -36-     LRB093 02634 SJM 02644 b
 1    Attorney General of the identity of  such  a  corporation  or
 2    limited  liability company and of the violations committed by
 3    such a corporation or limited  liability  company,  for  such
 4    action  as is not already provided for by this Act and as the
 5    Attorney General may deem appropriate.
 6        If the Department determines that an  amount  of  tax  or
 7    penalty  or interest was incorrectly assessed, whether as the
 8    result of  a  mistake  of  fact  or  an  error  of  law,  the
 9    Department  shall  waive  the  amount  of  tax  or penalty or
10    interest that accrued due to the incorrect assessment.
11    (Source: P.A. 87-193; 87-205; 87-895; 88-480.)

12        (35 ILCS 120/6a) (from Ch. 120, par. 445a)
13        Sec. 6a. Claims for credit or refund  shall  be  prepared
14    and  filed  upon forms provided by the Department. Each claim
15    shall state: (1) The name and principal business  address  of
16    the  claimant;  (2)  the period covered by the claim; (3) the
17    total amount of credit or refund claimed,  giving  in  detail
18    the  net  amount  of  taxable receipts reported each month or
19    other return period used by the claimant  as  the  basis  for
20    filing  returns  in  the period covered by the claim; (4) the
21    total amount of tax paid for each return period; (5) receipts
22    upon which tax liability is admitted for each return  period;
23    (6)  the  amount  of  receipts  on  which credit or refund is
24    claimed for each return period; (7)  the  tax  due  for  each
25    return  period  as  corrected;  (8)  the  amount of credit or
26    refund claimed for each return period; (9) reason or  reasons
27    why  the  amount, for which the claim is filed, is alleged to
28    have been  paid  in  error;  (10)  a  list  of  the  evidence
29    (documentary  or  otherwise) which the claimant has available
30    to establish his compliance with Section 6 as to bearing  the
31    burden  of  the tax for which he seeks credit or refund; (11)
32    payments or parts thereof (if any) included in the claim  and
33    paid   by   the   claimant  under  protest;  (12)  sufficient
 
                            -37-     LRB093 02634 SJM 02644 b
 1    information to identify any suit which involves this Act, and
 2    to which the  claimant  is  a  party,  and  (13)  such  other
 3    information  as  the Department may reasonably require. Where
 4    the claimant is a corporation or limited  liability  company,
 5    the  claim  filed  on  behalf  of such corporation or limited
 6    liability  company  shall  be  signed   by   the   president,
 7    vice-president,  secretary  or  treasurer,  by  the  properly
 8    accredited  agent  of  such  corporation,  or  by  a manager,
 9    member, or properly accredited agent of the limited liability
10    company.
11        A claim for credit or refund shall be considered to  have
12    been  filed  with the Department on the date upon which it is
13    received by the Department. Upon receipt  of  any  claim  for
14    credit  or  refund  filed  under  this  Act,  any  officer or
15    employee of the Department,  authorized  in  writing  by  the
16    Director  of Revenue to acknowledge receipt of such claims on
17    behalf of the Department, shall  execute  on  behalf  of  the
18    Department,  and shall deliver or mail to the claimant or his
19    duly authorized agent, a written receipt, acknowledging  that
20    the  claim has been filed with the Department, describing the
21    claim in sufficient detail to identify  it  and  stating  the
22    date  upon  which  the  claim was received by the Department.
23    Such written receipt shall be prima facie evidence  that  the
24    Department  received  the claim described in such receipt and
25    shall be prima facie evidence of the date when such claim was
26    received by the Department. In the absence of such a  written
27    receipt,  the  records of the Department as to when the claim
28    was received by the Department, or as to whether or  not  the
29    claim  was received at all by the Department, shall be deemed
30    to be prima facie correct upon these questions in  the  event
31    of   any   dispute   between   the  claimant  (or  his  legal
32    representative)   and   the   Department   concerning   these
33    questions.
34    (Source: P.A. 88-480.)
 
                            -38-     LRB093 02634 SJM 02644 b
 1        (35 ILCS 120/6b) (from Ch. 120, par. 445b)
 2        Sec. 6b. As soon as practicable after a claim for  credit
 3    or refund is filed, the Department shall examine the same and
 4    determine  the  amount  of  credit  or  refund  to  which the
 5    claimant or the taxpayer's legal representative, in the event
 6    that the taxpayer has died or become incompetent, is entitled
 7    and shall, by its Notice of Tentative Determination of Claim,
 8    notify the claimant  or  his  legal  representative  of  such
 9    determination,  which  determination  shall  be  prima  facie
10    correct. Proof of such determination by the Department may be
11    made  at  any  hearing  before the Department or in any legal
12    proceeding by a reproduced copy of  the  Department's  record
13    relating  thereto,  in  the  name of the Department under the
14    certificate of the Director of Revenue. Such reproduced  copy
15    shall,  without  further  proof,  be  admitted  into evidence
16    before the Department or in any legal proceeding and shall be
17    prima facie proof of  the  correctness  of  the  Department's
18    determination,  as  shown  therein.  If such claimant, or the
19    legal representative of a deceased or  incompetent  taxpayer,
20    within  60  days  after  the Department's Notice of Tentative
21    Determination of Claim, files a protest thereto and  requests
22    a  hearing  thereon, the Department shall give notice to such
23    claimant, or the legal representative of a deceased taxpayer,
24    or a taxpayer who is under legal disability of the  time  and
25    place  fixed  for  such  hearing, and shall hold a hearing in
26    conformity with the provisions  of  this  Act,  and  pursuant
27    thereto shall issue its Final Determination of the amount, if
28    any,  found  to  be  due as a result of such hearing, to such
29    claimant, or the legal representative of a deceased taxpayer,
30    or a taxpayer who is under legal disability. The Department's
31    Final Determination may be reviewed  by  the  proper  Circuit
32    Court,  in  the  same  manner, within the same time, upon the
33    same terms and conditions and to the same extent, as provided
34    by Section 12 of this Act.
 
                            -39-     LRB093 02634 SJM 02644 b
 1        In any case in which there has been an  erroneous  refund
 2    of  tax payable under this Act, a notice of tax liability may
 3    be issued at any time within 3 years from the making of  that
 4    refund,  or  within 5 years from the making of that refund if
 5    it appears that any part of the refund was induced  by  fraud
 6    or  the  misrepresentation of a material fact.  The amount of
 7    any proposed assessment set forth  in  the  notice  shall  be
 8    limited to the amount of the erroneous refund.
 9    (Source: P.A. 87-876; 87-879; 88-45.)

10        Section 35.  The Cigarette Tax Act is amended by changing
11    Sections 9a and 9b as follows:

12        (35 ILCS 130/9a) (from Ch. 120, par. 453.9a)
13        Sec. 9a. Examination and correction of returns.
14        (1)  As  soon  as  practicable after any return is filed,
15    the Department shall examine such return  and  shall  correct
16    such  return  according to its best judgment and information,
17    which return so corrected by the Department  shall  be  prima
18    facie  correct  and  shall  be  prima  facie  evidence of the
19    correctness of the amount  of  tax  due,  as  shown  therein.
20    Instead  of  requiring  the  distributor  to  file an amended
21    return, the Department may simply notify the  distributor  of
22    the  correction  or  corrections  it  has made. Proof of such
23    correction by the Department  may  be  made  at  any  hearing
24    before  the  Department  or  in  any  legal  proceeding  by a
25    reproduced copy of the Department's record  relating  thereto
26    in  the  name  of the Department under the certificate of the
27    Director of Revenue.  Such  reproduced  copy  shall,  without
28    further   proof,   be   admitted  into  evidence  before  the
29    Department or in any legal  proceeding  and  shall  be  prima
30    facie  proof  of the correctness of the amount of tax due, as
31    shown therein. If the Department finds that any amount of tax
32    is due from the distributor, the Department shall  issue  the
 
                            -40-     LRB093 02634 SJM 02644 b
 1    distributor  a  notice of tax liability for the amount of tax
 2    claimed by the Department to be due, together with a  penalty
 3    in  an amount determined in accordance with Sections 3-3, 3-5
 4    and 3-6 of the Uniform  Penalty  and  Interest  Act.  If,  in
 5    administering  the  provisions  of  this Act, comparison of a
 6    return or returns of a distributor with  the  books,  records
 7    and  inventories  of  such distributor discloses a deficiency
 8    which cannot be allocated by the Department to  a  particular
 9    month or months, the Department shall issue the distributor a
10    notice  of tax liability for the amount of tax claimed by the
11    Department to be due for a  given  period,  but  without  any
12    obligation upon the Department to allocate such deficiency to
13    any particular month or months, together with a penalty in an
14    amount  determined  in  accordance with Sections 3-3, 3-5 and
15    3-6 of the Uniform Penalty  and  Interest  Act,  under  which
16    circumstances  the aforesaid notice of tax liability shall be
17    prima facie correct and shall be prima facie evidence of  the
18    correctness  of  the amount of tax due, as shown therein; and
19    proof of such correctness may be made in accordance with, and
20    the admissibility of a reproduced copy of such notice of  tax
21    liability  shall  be  governed by, all the provisions of this
22    Act applicable  to  corrected  returns.  If  any  distributor
23    filing  any  return  dies  or  becomes  a  person under legal
24    disability at any  time  before  the  Department  issues  its
25    notice  of  tax liability, such notice shall be issued to the
26    administrator, executor or  other  legal  representative,  as
27    such, of such distributor.
28        (2)  If,   within  60  days  after  such  notice  of  tax
29    liability, the distributor or his or her legal representative
30    files a protest to such notice of tax liability and  requests
31    a  hearing  thereon, the Department shall give notice to such
32    distributor or legal representative of  the  time  and  place
33    fixed   for  such  hearing,  and  shall  hold  a  hearing  in
34    conformity with the provisions  of  this  Act,  and  pursuant
 
                            -41-     LRB093 02634 SJM 02644 b
 1    thereto shall issue a final assessment to such distributor or
 2    legal  representative  for  the  amount  found to be due as a
 3    result of such hearing. If a protest to  the  notice  of  tax
 4    liability  and  a  request for a hearing thereon is not filed
 5    within 60 days after  such  notice  of  tax  liability,  such
 6    notice  of  tax  liability  shall  become  final  without the
 7    necessity of a final assessment being  issued  and  shall  be
 8    deemed to be a final assessment.
 9        (3)  In  case  of  failure to pay the tax, or any portion
10    thereof, or any penalty provided for in this Act,  when  due,
11    the  Department  may bring suit to recover the amount of such
12    tax, or portion thereof, or penalty; or, if the taxpayer dies
13    or becomes incompetent, by filing claim therefor against  his
14    estate; provided that no such action with respect to any tax,
15    or portion thereof, or penalty, shall be instituted more than
16    2  years  after  the cause of action accrues, except with the
17    consent of the person from whom such tax or penalty is due.
18        After the expiration  of  the  period  within  which  the
19    person  assessed may file an action for judicial review under
20    the Administrative Review Law without such  an  action  being
21    filed,  a  certified  copy of the final assessment or revised
22    final assessment of the Department  may  be  filed  with  the
23    Circuit  Court of the county in which the taxpayer has his or
24    her principal place of business, or  of  Sangamon  County  in
25    those cases in which the taxpayer does not have his principal
26    place  of  business  in this State. The certified copy of the
27    final  assessment  or  revised  final  assessment  shall   be
28    accompanied  by  a certification which recites facts that are
29    sufficient to show that  the  Department  complied  with  the
30    jurisdictional  requirements  of  the  Law in arriving at its
31    final assessment or its revised final assessment and that the
32    taxpayer had his or her  opportunity  for  an  administrative
33    hearing  and  for judicial review, whether he availed himself
34    or herself of either or both of these opportunities  or  not.
 
                            -42-     LRB093 02634 SJM 02644 b
 1    If  the  court is satisfied that the Department complied with
 2    the jurisdictional requirements of the Law in arriving at its
 3    final assessment or its revised final assessment and that the
 4    taxpayer had his or her  opportunity  for  an  administrative
 5    hearing  and  for  judicial review, whether he or she availed
 6    himself or herself of either or both of  these  opportunities
 7    or  not,  the  court  shall  enter  judgment  in favor of the
 8    Department and against the taxpayer for the amount  shown  to
 9    be   due  by  the  final  assessment  or  the  revised  final
10    assessment, and such judgment shall be filed of record in the
11    court.  Such judgment shall bear the rate of interest set  in
12    the  Uniform  Penalty  and  Interest Act, but otherwise shall
13    have the same effect as other judgments.  The judgment may be
14    enforced,  and  all  laws  applicable  to   sales   for   the
15    enforcement  of  a judgment shall be applicable to sales made
16    under such judgments. The Department shall file the certified
17    copy of its assessment, as herein provided, with the  Circuit
18    Court  within  2  years  after  such assessment becomes final
19    except when the taxpayer consents in writing to an  extension
20    of such filing period.
21        If,  when  the  cause of action for a proceeding in court
22    accrues against a person, he or she is out of the State,  the
23    action  may  be  commenced  within  the times herein limited,
24    after his or her coming into or return to the State; and  if,
25    after the cause of action accrues, he or she departs from and
26    remains  out  of the State, the time of his or her absence is
27    no part of the time  limited  for  the  commencement  of  the
28    action;  but the foregoing provisions concerning absence from
29    the State shall not apply to any case in which, at  the  time
30    the cause of action accrues, the party against whom the cause
31    of  action  accrues is not a resident of this State. The time
32    within which a  court  action  is  to  be  commenced  by  the
33    Department  hereunder  shall  not run while the taxpayer is a
34    debtor in any proceeding under the Federal Bankruptcy Act nor
 
                            -43-     LRB093 02634 SJM 02644 b
 1    thereafter until 90 days after the Department is notified  by
 2    such debtor of being discharged in bankruptcy.
 3        No  claim  shall  be  filed  against  the  estate  of any
 4    deceased person or a person under legal  disability  for  any
 5    tax  or  penalty  or  part  of  either  except  in the manner
 6    prescribed and within the time limited by the Probate Act  of
 7    1975, as amended.
 8        The  remedies provided for herein shall not be exclusive,
 9    but all remedies available to creditors for the collection of
10    debts shall be available for the collection  of  any  tax  or
11    penalty due hereunder.
12        The  collection  of  tax or penalty by any means provided
13    for herein shall not be a bar to any prosecution  under  this
14    Act.
15        The  certificate of the Director of the Department to the
16    effect that a tax or amount required to be paid by  this  Act
17    has  not been paid, that a return has not been filed, or that
18    information has not been supplied pursuant to the  provisions
19    of this Act, shall be prima facie evidence thereof.
20        All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f,
21    5g, 5i and 5j of the Retailers' Occupation Tax Act, which are
22    not  inconsistent  with  this  Act,  and  Section  3-7 of the
23    Uniform Penalty and Interest  Act  shall  apply,  as  far  as
24    practicable,  to  the  subject matter of this Act to the same
25    extent as if such provisions were included herein. References
26    in such incorporated Sections of the  "Retailers'  Occupation
27    Tax  Act"  to  retailers, to sellers or to persons engaged in
28    the business of selling tangible personal property shall mean
29    distributors when used in this Act.
30    (Source: P.A. 92-322, eff. 1-1-02.)

31        (35 ILCS 130/9b) (from Ch. 120, par. 453.9b)
32        Sec. 9b. Failure to file return;  penalty;  protest.   In
33    case  any  person who is required to file a return under this
 
                            -44-     LRB093 02634 SJM 02644 b
 1    Act fails to file such return, the Department shall determine
 2    the amount of tax due from him according to its best judgment
 3    and information, which amount  so  fixed  by  the  Department
 4    shall  be  prima  facie  correct  and  shall  be  prima facie
 5    evidence of the correctness of the  amount  of  tax  due,  as
 6    shown  in  such determination. Proof of such determination by
 7    the  Department  may  be  made  at  any  hearing  before  the
 8    Department or in any legal proceeding by a reproduced copy of
 9    the Department's record relating thereto in the name  of  the
10    Department  under the certificate of the Director of Revenue.
11    Such  reproduced  copy  shall,  without  further  proof,   be
12    admitted  into evidence before the Department or in any legal
13    proceeding and shall be prima facie proof of the  correctness
14    of  the  amount  of tax due, as shown therein. The Department
15    shall issue such person a notice of  tax  liability  for  the
16    amount  of  tax claimed by the Department to be due, together
17    with a penalty in an amount  determined  in  accordance  with
18    Sections 3-3, 3-5 and 3-6 of the Uniform Penalty and Interest
19    Act.  If  such  person  or  the  legal representative of such
20    person, within 60 days after such notice, files a protest  to
21    such  notice of tax liability and requests a hearing thereon,
22    the Department shall give notice to such person or the  legal
23    representative of such person of the time and place fixed for
24    such  hearing and shall hold a hearing in conformity with the
25    provisions of this Act, and pursuant thereto  shall  issue  a
26    final   assessment   to   such   person   or   to  the  legal
27    representative of such person for the amount found to be  due
28    as  a  result  of such hearing. If a protest to the notice of
29    tax liability and a request for  a  hearing  thereon  is  not
30    filed within 60 days after such notice of tax liability, such
31    notice  of  tax  liability  shall  become  final  without the
32    necessity of a final assessment being  issued  and  shall  be
33    deemed to be a final assessment.
34    (Source: P.A. 92-322, eff. 1-1-02.)
 
                            -45-     LRB093 02634 SJM 02644 b
 1        Section  40.  The  Cigarette  Use  Tax  Act is amended by
 2    changing Sections 13 and 13a as follows:

 3        (35 ILCS 135/13) (from Ch. 120, par. 453.43)
 4        Sec. 13.  Examination and correction of return.  As  soon
 5    as  practicable  after  any  return  is filed, the Department
 6    shall examine such  return  and  shall  correct  such  return
 7    according  to its best judgment and information, which return
 8    so corrected by the Department shall be prima  facie  correct
 9    and  shall  be prima facie evidence of the correctness of the
10    amount of tax due, as shown therein. Proof of such correction
11    by the Department may be  made  at  any  hearing  before  the
12    Department or in any legal proceeding by a reproduced copy of
13    the  Department's  record relating thereto in the name of the
14    Department under the certificate of the Director of  Revenue.
15    Such   reproduced  copy  shall,  without  further  proof,  be
16    admitted into evidence before the Department or in any  legal
17    proceeding  and shall be prima facie proof of the correctness
18    of the amount of tax due, as shown therein.  If  the  tax  as
19    fixed by the Department is greater than the amount of the tax
20    due under the return as filed, the Department shall issue the
21    person  filing  such return a notice of tax liability for the
22    amount of tax claimed by the Department to be  due,  together
23    with  a  penalty  in  an amount determined in accordance with
24    Sections 3-3, 3-5 and 3-6 of the Uniform Penalty and Interest
25    Act.  If,  in  administering  the  provisions  of  this  Act,
26    comparison of a return or returns of a distributor  with  the
27    books,  records and inventories of such distributor discloses
28    a deficiency which cannot be allocated by the Department to a
29    particular month or months, the Department  shall  issue  the
30    distributor  a  notice of tax liability for the amount of tax
31    claimed by the Department to be due for a given  period,  but
32    without  any  obligation upon the Department to allocate such
33    deficiency to any particular month or months, together with a
 
                            -46-     LRB093 02634 SJM 02644 b
 1    penalty in an amount determined in accordance  with  Sections
 2    3-3,  3-5  and  3-6  of the Uniform Penalty and Interest Act,
 3    under  which  circumstances  the  aforesaid  notice  of   tax
 4    liability  shall  be  prima  facie correct and shall be prima
 5    facie evidence of the correctness of the amount of  tax  due,
 6    as  shown  therein; and proof of such correctness may be made
 7    in accordance with, and the  admissibility  of  a  reproduced
 8    copy  of  such  notice of tax liability shall be governed by,
 9    all the  provisions  of  this  Act  applicable  to  corrected
10    returns.
11        If  any person filing any return dies or becomes a person
12    under legal disability at  any  time  before  the  Department
13    issues  its  notice  of  tax  liability, such notice shall be
14    issued  to  the  administrator,  executor  or   other   legal
15    representative, as such, of such person.
16        If within 60 days after such notice of tax liability, the
17    person   to   whom   such  notice  is  issued  or  his  legal
18    representative  files  a  protest  to  such  notice  of   tax
19    liability  and  requests  a  hearing  thereon, the Department
20    shall give notice to such person or legal  representative  of
21    the  time  and place fixed for such hearing, and shall hold a
22    hearing in conformity with the provisions of  this  Act,  and
23    pursuant  thereto  shall  issue  a  final  assessment to such
24    person or legal representative for the amount found to be due
25    as a result of such hearing. If a protest to  the  notice  of
26    tax  liability  and  a  request  for a hearing thereon is not
27    filed within 60 days after such notice of tax liability, such
28    notice of  tax  liability  shall  become  final  without  the
29    necessity  of  a  final  assessment being issued and shall be
30    deemed to be a final assessment.
31    (Source: P.A. 92-322, eff. 1-1-02.)

32        (35 ILCS 135/13a) (from Ch. 120, par. 453.43a)
33        Sec. 13a. Failure to file return. In case any person  who
 
                            -47-     LRB093 02634 SJM 02644 b
 1    is  required  to  file  a return under this Act fails to file
 2    such return, the Department shall determine the amount of tax
 3    due from him according to its best judgment and  information,
 4    which  amount so fixed by the Department shall be prima facie
 5    correct and shall be prima facie evidence of the  correctness
 6    of  the  amount  of  tax due, as shown in such determination.
 7    Proof of such determination by the Department may be made  at
 8    any  hearing before the Department or in any legal proceeding
 9    by a reproduced copy  of  the  Department's  record  relating
10    thereto  in  the name of the Department under the certificate
11    of the Director  of  Revenue.  Such  reproduced  copy  shall,
12    without  further  proof, be admitted into evidence before the
13    Department or in any legal  proceeding  and  shall  be  prima
14    facie  proof  of the correctness of the amount of tax due, as
15    shown therein. The  Department  shall  issue  such  person  a
16    notice  of tax liability for the amount of tax claimed by the
17    Department to be due, together with a penalty  in  an  amount
18    determined  in  accordance  with Sections 3-3, 3-5 and 3-6 of
19    the Uniform Penalty and Interest Act. If such person  or  the
20    legal  representative  of  such  person, within 60 days after
21    such notice, files a protest to such notice of tax  liability
22    and  requests  a  hearing  thereon, the Department shall give
23    notice to such person or the  legal  representative  of  such
24    person  of  the  time  and  place fixed for such hearing, and
25    shall hold a hearing in conformity  with  the  provisions  of
26    this Act, and pursuant thereto shall issue a final assessment
27    to  such person or to the legal representative of such person
28    for the amount found to be due as a result of  such  hearing.
29    If a protest to the notice of tax liability and a request for
30    a  hearing  thereon  is  not  filed within 60 days after such
31    notice of tax liability, such notice of tax  liability  shall
32    become  final  without  the  necessity  of a final assessment
33    being issued and shall be deemed to be a final assessment.
34    (Source: P.A. 92-322, eff. 1-1-02.)
 
                            -48-     LRB093 02634 SJM 02644 b
 1        Section 43.  The Hotel Operators' Occupation Tax  Act  is
 2    amended by changing Section 6 as follows:

 3        (35 ILCS 145/6) (from Ch. 120, par. 481b.36)
 4        Sec.  6.  Except as provided hereinafter in this Section,
 5    on or before the last  day  of  each  calendar  month,  every
 6    person engaged in the business of renting, leasing or letting
 7    rooms  in a hotel in this State during the preceding calendar
 8    month shall file a return with the Department, stating:
 9             1.  The name of the operator;
10             2.  His residence address and  the  address  of  his
11        principal  place  of  business  and  the  address  of the
12        principal place of  business  (if  that  is  a  different
13        address)  from  which  he  engages  in  the  business  of
14        renting,  leasing  or  letting  rooms  in a hotel in this
15        State;
16             3.  Total amount of rental receipts received by  him
17        during the preceding calendar month from renting, leasing
18        or letting rooms during such preceding calendar month;
19             4.  Total  amount of rental receipts received by him
20        during the preceding calendar month from renting, leasing
21        or letting  rooms  to  permanent  residents  during  such
22        preceding calendar month;
23             5.  Total  amount  of  other  exclusions  from gross
24        rental receipts allowed by this Act;
25             6.  Gross rental receipts which were received by him
26        during the preceding calendar month and upon the basis of
27        which the tax is imposed;
28             7.  The amount of tax due;
29             8.  Such  other  reasonable   information   as   the
30        Department may require.
31        If  the  operator's  average monthly tax liability to the
32    Department does not exceed $200, the Department may authorize
33    his returns to be filed on a quarter annual basis,  with  the
 
                            -49-     LRB093 02634 SJM 02644 b
 1    return  for January, February and March of a given year being
 2    due by April 30 of such year; with the return for April,  May
 3    and  June  of a given year being due by July 31 of such year;
 4    with the return for July, August and  September  of  a  given
 5    year  being  due  by  October  31  of such year, and with the
 6    return for October, November and December  of  a  given  year
 7    being due by January 31 of the following year.
 8        If  the  operator's  average monthly tax liability to the
 9    Department does not exceed $50, the Department may  authorize
10    his  returns  to be filed on an annual basis, with the return
11    for a given year being due by January  31  of  the  following
12    year.
13        Such  quarter  annual  and annual returns, as to form and
14    substance, shall be  subject  to  the  same  requirements  as
15    monthly returns.
16        Notwithstanding   any   other   provision   in  this  Act
17    concerning the time within which an  operator  may  file  his
18    return, in the case of any operator who ceases to engage in a
19    kind  of  business  which  makes  him  responsible for filing
20    returns under this Act, such  operator  shall  file  a  final
21    return  under  this  Act  with the Department not more than 1
22    month after discontinuing such business.
23        Where the same person has more than 1 business registered
24    with the Department under separate registrations  under  this
25    Act,  such person shall not file each return that is due as a
26    single return covering all such  registered  businesses,  but
27    shall   file   separate  returns  for  each  such  registered
28    business.
29        In his return, the operator shall determine the value  of
30    any  consideration  other  than  money  received  by  him  in
31    connection  with  the renting, leasing or letting of rooms in
32    the course of his business and he shall include such value in
33    his return.  Such determination shall be  subject  to  review
34    and  revision  by  the  Department  in the manner hereinafter
 
                            -50-     LRB093 02634 SJM 02644 b
 1    provided for the correction of returns.
 2        Where the operator is a corporation, the return filed  on
 3    behalf  of such corporation shall be signed by the president,
 4    vice-president, secretary or treasurer  or  by  the  properly
 5    accredited agent of such corporation.
 6        The  person  filing the return herein provided for shall,
 7    at the time of filing such return, pay to the Department  the
 8    amount  of tax herein imposed. The operator filing the return
 9    under this Section shall, at the time of filing such  return,
10    pay  to  the Department the amount of tax imposed by this Act
11    less a discount of 2.1% or $25 per calendar  year,  whichever
12    is  greater,  which  is allowed to reimburse the operator for
13    the expenses  incurred  in  keeping  records,  preparing  and
14    filing  returns,  remitting the tax and supplying data to the
15    Department on request.
16        There shall be deposited in the Build  Illinois  Fund  in
17    the  State  Treasury  for  each  State fiscal year 40% of the
18    amount  of  total  net  proceeds  from  the  tax  imposed  by
19    subsection (a) of Section 3. Of the remaining 60%, $5,000,000
20    shall be deposited in the Illinois Sports Facilities Fund and
21    credited to the Subsidy Account each fiscal  year  by  making
22    monthly  deposits  in  the  amount  of 1/8 of $5,000,000 plus
23    cumulative deficiencies in such deposits  for  prior  months,
24    and  an  additional  $8,000,000  shall  be  deposited  in the
25    Illinois Sports Facilities Fund and credited to  the  Advance
26    Account  each  fiscal  year by making monthly deposits in the
27    amount of 1/8 of $8,000,000 plus any cumulative  deficiencies
28    in  such deposits for prior months; provided, that for fiscal
29    years ending after  June  30,  2001,  the  amount  to  be  so
30    deposited  into  the  Illinois  Sports  Facilities  Fund  and
31    credited  to  the  Advance  Account each fiscal year shall be
32    increased from $8,000,000  to  the  then  applicable  Advance
33    Amount  and the required monthly deposits beginning with July
34    2001 shall be in the amount of 1/8  of  the  then  applicable
 
                            -51-     LRB093 02634 SJM 02644 b
 1    Advance  Amount  plus  any  cumulative  deficiencies in those
 2    deposits for prior months.  (The deposits of  the  additional
 3    $8,000,000   or   the  then  applicable  Advance  Amount,  as
 4    applicable, during each  fiscal  year  shall  be  treated  as
 5    advances of funds to the Illinois Sports Facilities Authority
 6    for  its  corporate  purposes  to  the  extent  paid  to  the
 7    Authority or its trustee and shall be repaid into the General
 8    Revenue  Fund in the State Treasury by the State Treasurer on
 9    behalf of  the  Authority  pursuant  to  Section  19  of  the
10    Illinois  Sports Facilities Authority Act, as amended.  If in
11    any fiscal year  the  full  amount  of  the  then  applicable
12    Advance  Amount  is not repaid into the General Revenue Fund,
13    then the deficiency shall be paid  from  the  amount  in  the
14    Local  Government  Distributive  Fund that would otherwise be
15    allocated to the City of  Chicago  under  the  State  Revenue
16    Sharing Act.)
17        For   purposes  of  the  foregoing  paragraph,  the  term
18    "Advance Amount" means, for fiscal  year  2002,  $22,179,000,
19    and  for  subsequent  fiscal  years through fiscal year 2032,
20    105.615% of the Advance Amount for the immediately  preceding
21    fiscal year, rounded up to the nearest $1,000.
22        Of  the remaining 60% of the amount of total net proceeds
23    from the tax imposed by subsection (a) of Section 3 after all
24    required deposits in the Illinois Sports Facilities Fund, the
25    amount equal to 8% of the net revenue realized from the Hotel
26    Operators' Occupation Tax Act plus an amount equal to  8%  of
27    the  net  revenue realized from any tax imposed under Section
28    4.05 of the Chicago World's Fair-1992  Authority  Act  during
29    the  preceding  month shall be deposited in the Local Tourism
30    Fund each month for purposes authorized by Section 605-705 of
31    the Department of Commerce and Community Affairs Law (20 ILCS
32    605/605-705) in the Local Tourism Fund, and beginning  August
33    1, 1999, the amount equal to 4.5% of the net revenue realized
34    from  the  Hotel  Operators'  Occupation  Tax  Act during the
 
                            -52-     LRB093 02634 SJM 02644 b
 1    preceding month shall be  deposited  into  the  International
 2    Tourism  Fund  for the purposes authorized in Section 605-707
 3    605-725 of the Department of Commerce and  Community  Affairs
 4    Law.   "Net  revenue  realized for a month" means the revenue
 5    collected by the State under that  Act  during  the  previous
 6    month  less  the  amount  paid  out during that same month as
 7    refunds to taxpayers for overpayment of liability under  that
 8    Act.
 9        After  making  all  these deposits, all other proceeds of
10    the tax imposed under subsection (a) of Section  3  shall  be
11    deposited  in the General Revenue Fund in the State Treasury.
12    All moneys received by the Department from the additional tax
13    imposed under subsection (b) of Section 3 shall be  deposited
14    into the Build Illinois Fund in the State Treasury.
15        The  Department  may,  upon  separate written notice to a
16    taxpayer, require the taxpayer to prepare and file  with  the
17    Department  on a form prescribed by the Department within not
18    less than 60 days after  receipt  of  the  notice  an  annual
19    information  return for the tax year specified in the notice.
20    Such  annual  return  to  the  Department  shall  include   a
21    statement  of  gross receipts as shown by the operator's last
22    State income tax  return.   If  the  total  receipts  of  the
23    business  as  reported  in the State income tax return do not
24    agree with the gross receipts reported to the Department  for
25    the  same  period,  the  operator  shall attach to his annual
26    information return a schedule showing a reconciliation of the
27    2 amounts and the reasons for the difference.  The operator's
28    annual  information  return  to  the  Department  shall  also
29    disclose pay roll  information  of  the  operator's  business
30    during  the  year  covered  by such return and any additional
31    reasonable information which the Department  deems  would  be
32    helpful in determining the accuracy of the monthly, quarterly
33    or  annual  tax  returns  by  such  operator  as hereinbefore
34    provided for in this Section.
 
                            -53-     LRB093 02634 SJM 02644 b
 1        Notwithstanding any provision to  the  contrary,  in  the
 2    case of a dispute between a taxpayer and the Department under
 3    this Act, the taxpayer's position shall be presumed to be the
 4    correct  one  and  the  burden  of  proof  shall  be  on  the
 5    Department to prove otherwise.
 6        If the annual information return required by this Section
 7    is  not  filed  when  and  as  required the taxpayer shall be
 8    liable for a penalty in an amount  determined  in  accordance
 9    with  Section  3-4  of  the  Uniform Penalty and Interest Act
10    until such return is filed as required,  the  penalty  to  be
11    assessed  and  collected  in  the  same  manner  as any other
12    penalty provided for in this Act.
13        The chief executive officer, proprietor, owner or highest
14    ranking manager shall sign the annual return to  certify  the
15    accuracy  of  the  information contained therein.  Any person
16    who willfully signs the annual  return  containing  false  or
17    inaccurate   information  shall  be  guilty  of  perjury  and
18    punished accordingly.  The annual return form  prescribed  by
19    the  Department  shall  include  a  warning  that  the person
20    signing the return may be liable for perjury.
21        The foregoing portion  of  this  Section  concerning  the
22    filing  of an annual information return shall not apply to an
23    operator who is not required to file  an  income  tax  return
24    with the United States Government.
25    (Source:  P.A.  91-239,  eff.  1-1-00;  91-604, eff. 8-16-99;
26    91-935,  eff.  6-1-01;  92-16,  eff.  6-28-01;  92-600,  eff.
27    6-28-02; revised 12-17-02.)

28        Section  45.  The  Motor  Fuel  Tax  Law  is  amended  by
29    changing Sections 5 and 5a as follows:

30        (35 ILCS 505/5) (from Ch. 120, par. 421)
31        Sec. 5.  Except as hereinafter provided, a person holding
32    a valid unrevoked license to act as a  distributor  of  motor
 
                            -54-     LRB093 02634 SJM 02644 b
 1    fuel  shall,  between  the 1st and 20th days of each calendar
 2    month, make return to the  Department,  showing  an  itemized
 3    statement  of the number of invoiced gallons of motor fuel of
 4    the types specified in this  Section  which  were  purchased,
 5    acquired or received during the preceding calendar month; the
 6    amount  of  such  motor  fuel  produced, refined, compounded,
 7    manufactured, blended, sold, distributed,  and  used  by  the
 8    licensed distributor during the preceding calendar month; the
 9    amount  of  such  motor  fuel  lost  or  destroyed during the
10    preceding calendar month; the amount of such  motor  fuel  on
11    hand  at the close of business for such month; and such other
12    reasonable information as the Department may require.   If  a
13    distributor's  only activities with respect to motor fuel are
14    either: (1) production of alcohol in quantities of less  than
15    10,000  proof  gallons  per  year  or (2) blending alcohol in
16    quantities of less than 10,000 proof gallons per  year  which
17    such  distributor  has  produced, he shall file returns on an
18    annual basis with the return for a given year  being  due  by
19    January  20  of the following year.  Distributors whose total
20    production of alcohol (whether blended or not) exceeds 10,000
21    proof gallons  per  year,  based  on  production  during  the
22    preceding  (calendar)  year or as reasonably projected by the
23    Department if one calendar year's record of production cannot
24    be established, shall file returns between the 1st  and  20th
25    days of each calendar month as hereinabove provided.
26        The  types  of  motor  fuel  referred to in the preceding
27    paragraph are: (A)  All  products  commonly  or  commercially
28    known   or   sold  as  gasoline  (including  casing-head  and
29    absorption or natural gasoline),  gasohol,  motor  benzol  or
30    motor benzene regardless of their classification or uses; and
31    (B)  all  combustible gases which exist in a gaseous state at
32    60 degrees Fahrenheit and at  14.7  pounds  per  square  inch
33    absolute  including,  but not limited to, liquefied petroleum
34    gases used for highway purposes; and (C) special  fuel.  Only
 
                            -55-     LRB093 02634 SJM 02644 b
 1    those  quantities  of  combustible  gases (example (B) above)
 2    which are used or sold by  the  distributor  to  be  used  to
 3    propel  motor  vehicles  on the public highways, or which are
 4    delivered into a storage tank that is located at  a  facility
 5    that  has  withdrawal facilities which are readily accessible
 6    to and are capable of dispensing combustible gases  into  the
 7    fuel  supply  tanks  of  motor  vehicles, shall be subject to
 8    return.  For the purposes of this  Act,  liquefied  petroleum
 9    gases  shall  mean  and  include  any material having a vapor
10    pressure not exceeding that allowed  for  commercial  propane
11    composed  predominantly of the following hydrocarbons, either
12    by themselves or as  mixtures:   Propane,  Propylene,  Butane
13    (normal   butane   or  iso-butane)  and  Butylene  (including
14    isomers).
15        In case of a sale of special fuel to someone other than a
16    licensed distributor, or a licensed supplier, for a use other
17    than in motor vehicles, the distributor  shall  show  in  his
18    return  the  amount of invoiced gallons sold and the name and
19    address of the purchaser in addition to any other information
20    the Department may require.
21        All special fuel sold or used  for  non-highway  purposes
22    must  have  a dye added in accordance with Section 4d of this
23    Law.
24        In case of a tax-free sale, as provided in Section 6,  of
25    motor  fuel which the distributor is required by this Section
26    to include in his return to the Department,  the  distributor
27    in  his return shall show: (1) If the sale is made to another
28    licensed distributor the amount sold and  the  name,  address
29    and  license number of the purchasing distributor; (2) if the
30    sale is made to a person where delivery is  made  outside  of
31    this  State  the  name  and address of such purchaser and the
32    point  of  delivery  together  with  the  date   and   amount
33    delivered;  (3) if the sale is made to the Federal Government
34    or its instrumentalities the amount sold; (4) if the sale  is
 
                            -56-     LRB093 02634 SJM 02644 b
 1    made  to a municipal corporation owning and operating a local
 2    transportation system for public service in  this  State  the
 3    name  and  address of such purchaser, and the amount sold, as
 4    evidenced  by  official  forms  of   exemption   certificates
 5    properly executed and furnished by such purchaser; (5) if the
 6    sale  is  made to a privately owned public utility owning and
 7    operating 2-axle vehicles designed and used for  transporting
 8    more  than  7  passengers,  which vehicles are used as common
 9    carriers in general transportation  of  passengers,  are  not
10    devoted  to any specialized purpose and are operated entirely
11    within the territorial limits of a single municipality or  of
12    any  group  of contiguous municipalities or in a close radius
13    thereof, and the operations  of  which  are  subject  to  the
14    regulations  of  the  Illinois  Commerce Commission, then the
15    name and address of such purchaser and  the  amount  sold  as
16    evidenced   by   official  forms  of  exemption  certificates
17    properly executed and furnished by the purchaser; (6) if  the
18    product  sold  is  special  fuel and if the sale is made to a
19    licensed supplier under conditions which qualify the sale for
20    tax exemption under Section 6 of this Act,  the  amount  sold
21    and  the  name,  address and license number of the purchaser;
22    and (7) if a sale of special fuel is made  to  someone  other
23    than  a  licensed  distributor, or a licensed supplier, for a
24    use other than  in  motor  vehicles,  by  making  a  specific
25    notation  thereof  on the invoice or sales slip covering such
26    sales and obtaining such supporting documentation as  may  be
27    required by the Department.
28        All  special  fuel  sold or used for non-highway purposes
29    must have a dye added in accordance with Section 4d  of  this
30    Law.
31        A  person  whose license to act as a distributor of motor
32    fuel has been revoked shall make a return to  the  Department
33    covering  the  period from the date of the last return to the
34    date of the revocation of the license, which return shall  be
 
                            -57-     LRB093 02634 SJM 02644 b
 1    delivered  to  the Department not later than 10 days from the
 2    date of the revocation or termination of the license of  such
 3    distributor;  the  return  shall  in  all  other  respects be
 4    subject to the same provisions and conditions as  returns  by
 5    distributors licensed under the provisions of this Act.
 6        The  records,  waybills  and supporting documents kept by
 7    railroads and other common carriers in the regular course  of
 8    business  shall  be  prima facie evidence of the contents and
 9    receipt of cars or tanks covered by those  records,  waybills
10    or supporting documents.
11        If  the Department has reason to believe and does believe
12    that the amount shown on the return as  purchased,  acquired,
13    received, sold, used, lost or destroyed is incorrect, or that
14    an  amount  of motor fuel of the types required by the second
15    paragraph of this Section to be reported  to  the  Department
16    has  not  been correctly reported the Department shall fix an
17    amount for such receipt,  sales,  use,  loss  or  destruction
18    according  to its best judgment and information, which amount
19    so fixed by the Department shall be prima facie correct.  All
20    returns shall be made on forms prepared and furnished by  the
21    Department,  and  shall contain such other information as the
22    Department  may  reasonably  require.  The  return  must   be
23    accompanied  by appropriate computer-generated magnetic media
24    supporting schedule  data  in  the  format  required  by  the
25    Department,  unless,  as  provided   by  rule, the Department
26    grants an exception upon petition of a taxpayer. All licensed
27    distributors shall report all losses of motor fuel  sustained
28    on  account  of  fire, theft, spillage, spoilage, leakage, or
29    any other provable cause  when  filing  the  return  for  the
30    period during which the loss occurred. The mere making of the
31    report  does  not  assure  the  allowance  of  the  loss as a
32    reduction in tax liability.  Losses  of  motor  fuel  as  the
33    result   of  evaporation  or  shrinkage  due  to  temperature
34    variations may not exceed 1% of the total gallons in  storage
 
                            -58-     LRB093 02634 SJM 02644 b
 1    at the beginning of the month, plus the receipts of gallonage
 2    during the month, minus the gallonage remaining in storage at
 3    the  end of the month. Any loss reported that is in excess of
 4    1% shall be subject to the tax imposed by Section 2  of  this
 5    Law.  On  and  after  July  1,  2001, for each 6-month period
 6    January through June, net losses  of  motor  fuel  (for  each
 7    category  of  motor fuel that is required to be reported on a
 8    return) as the result of  evaporation  or  shrinkage  due  to
 9    temperature variations may not exceed 1% of the total gallons
10    in  storage  at  the  beginning  of  each  January,  plus the
11    receipts of gallonage each January through  June,  minus  the
12    gallonage  remaining  in storage at the end of each June.  On
13    and after July 1, 2001, for each 6-month period July  through
14    December,  net  losses  of  motor  fuel (for each category of
15    motor fuel that is required to be reported on  a  return)  as
16    the  result  of  evaporation  or shrinkage due to temperature
17    variations may not exceed 1% of the total gallons in  storage
18    at the beginning of each July, plus the receipts of gallonage
19    each  July through December, minus the gallonage remaining in
20    storage at the end of each December.  Any net  loss  reported
21    that  is in excess of this amount shall be subject to the tax
22    imposed by Section 2 of  this  Law.   For  purposes  of  this
23    Section,  "net  loss"  means  the  number  of  gallons gained
24    through temperature variations minus the  number  of  gallons
25    lost  through  temperature variations or evaporation for each
26    of the respective 6-month periods.
27    (Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01.)

28        (35 ILCS 505/5a) (from Ch. 120, par. 421a)
29        Sec. 5a.  A person holding a valid unrevoked  license  to
30    act  as a supplier of special fuel shall, between the 1st and
31    20th  days  of  each  calendar  month,  make  return  to  the
32    Department showing an itemized statement  of  the  number  of
33    invoiced   gallons   of   special  fuel  acquired,  received,
 
                            -59-     LRB093 02634 SJM 02644 b
 1    purchased, sold, or used during the preceding calendar month;
 2    the amount of special fuel sold, distributed, and used by the
 3    licensed supplier during the preceding  calendar  month;  the
 4    amount of special fuel lost or destroyed during the preceding
 5    calendar  month;  the  amount  of special fuel on hand at the
 6    close of business for the preceding calendar month; and  such
 7    other reasonable information as the Department may require.
 8        A  person  whose  license to act as a supplier of special
 9    fuel has been revoked shall make a return to  the  Department
10    covering  the  period from the date of the last return to the
11    date of the revocation of the license, which return shall  be
12    delivered  to  the Department not later than 10 days from the
13    date of the revocation or termination of the license of  such
14    supplier.   The return shall in all other respects be subject
15    to the same provisions and conditions as returns by suppliers
16    licensed under this Act.
17        The records, waybills and supporting  documents  kept  by
18    railroads  and other common carriers in the regular course of
19    business shall be prima facie evidence of  the  contents  and
20    receipt  of  cars or tanks covered by those records, waybills
21    or supporting documents.
22        If the Department has reason to believe and does  believe
23    that  the  amount shown on the return as purchased, acquired,
24    received, sold, used, or lost is incorrect, or that an amount
25    of special fuel of the type required by the 1st paragraph  of
26    this  Section  to  be reported to the Department by suppliers
27    has not been correctly reported as a purchase, receipt, sale,
28    use, or loss the Department shall  fix  an  amount  for  such
29    purchase,  receipt,  sale, use, or loss according to its best
30    judgment and  information,  which  amount  so  fixed  by  the
31    Department   shall  be  prima  facie  correct.  All  licensed
32    suppliers shall report all losses of special  fuel  sustained
33    on  account  of  fire, theft, spillage, spoilage, leakage, or
34    any other provable cause  when  filing  the  return  for  the
 
                            -60-     LRB093 02634 SJM 02644 b
 1    period during which the loss occurred. The mere making of the
 2    report  does  not  assure  the  allowance  of  the  loss as a
 3    reduction in tax liability. Losses of  special  fuel  as  the
 4    result   of  evaporation  or  shrinkage  due  to  temperature
 5    variations may not exceed 1% of the total gallons in  storage
 6    at the beginning of the month, plus the receipts of gallonage
 7    during the month, minus the gallonage remaining in storage at
 8    the end of the month.
 9        Any  loss  reported  that  is  in  excess  of 1% shall be
10    subject to the tax imposed by Section 2 of this Law.  On  and
11    after  July  1, 2001, for each 6-month period January through
12    June, net losses  of  special  fuel  (for  each  category  of
13    special  fuel that is required to be reported on a return) as
14    the result of evaporation or  shrinkage  due  to  temperature
15    variations  may not exceed 1% of the total gallons in storage
16    at the beginning  of  each  January,  plus  the  receipts  of
17    gallonage  each  January  through  June,  minus the gallonage
18    remaining in storage at the end of each June.  On  and  after
19    July  1, 2001, for each 6-month period July through December,
20    net losses of special fuel (for each category of special fuel
21    that is required to be reported on a return) as the result of
22    evaporation or shrinkage due to  temperature  variations  may
23    not  exceed  1%  of  the  total  gallons  in  storage  at the
24    beginning of each July, plus the receipts of  gallonage  each
25    July  through  December,  minus  the  gallonage  remaining in
26    storage at the end of each December. Any  net  loss  reported
27    that  is in excess of this amount shall be subject to the tax
28    imposed by Section 2 of  this  Law.   For  purposes  of  this
29    Section,  "net  loss"  means  the  number  of  gallons gained
30    through temperature variations minus the  number  of  gallons
31    lost  through  temperature variations or evaporation for each
32    of the respective 6-month periods.
33        In case of a sale of special fuel to someone other than a
34    licensed distributor or licensed supplier  for  a  use  other
 
                            -61-     LRB093 02634 SJM 02644 b
 1    than in motor vehicles, the supplier shall show in his return
 2    the  amount of invoiced gallons sold and the name and address
 3    of the purchaser in addition to  any  other  information  the
 4    Department may require.
 5        All  special  fuel  sold or used for non-highway purposes
 6    must have a dye added in accordance with Section 4d  of  this
 7    Law.
 8        All returns shall be made on forms prepared and furnished
 9    by the Department and shall contain such other information as
10    the  Department  may  reasonably  require. The return must be
11    accompanied by appropriate computer-generated magnetic  media
12    supporting  schedule  data  in  the  format  required  by the
13    Department, unless,  as  provided  by  rule,  the  Department
14    grants an exception upon petition of a taxpayer.
15        In case of a tax-free sale, as provided in Section 6a, of
16    special  fuel  which the supplier is required by this Section
17    to include in his return to the Department, the  supplier  in
18    his  return  shall  show:  (1) If the sale of special fuel is
19    made to the Federal Government or its instrumentalities;  (2)
20    if   the  sale  of  special  fuel  is  made  to  a  municipal
21    corporation  owning  and  operating  a  local  transportation
22    system for public service in this State, the name and address
23    of such purchaser  and  the  amount  sold,  as  evidenced  by
24    official  forms  of  exemption certificates properly executed
25    and furnished by such purchaser; (3) if the sale  of  special
26    fuel  is  made to a privately owned public utility owning and
27    operating 2-axle vehicles designed and used for  transporting
28    more  than  7  passengers,  which vehicles are used as common
29    carriers in general transportation  of  passengers,  are  not
30    devoted  to any specialized purpose and are operated entirely
31    within the territorial limits of a single municipality or  of
32    any  group  of contiguous municipalities or in a close radius
33    thereof, and the operations  of  which  are  subject  to  the
34    regulations  of  the  Illinois  Commerce Commission, then the
 
                            -62-     LRB093 02634 SJM 02644 b
 1    name and address of such purchaser and the  amount  sold,  as
 2    evidenced   by   official  forms  of  exemption  certificates
 3    properly executed and furnished by such purchaser; (4) if the
 4    product sold is special fuel and if the sale  is  made  to  a
 5    licensed   supplier   or  to  a  licensed  distributor  under
 6    conditions which qualify the sale  for  tax  exemption  under
 7    Section 6a of this Act, the amount sold and the name, address
 8    and  license  number  of  such  purchaser;  (5)  if a sale of
 9    special fuel is made to  a  person  where  delivery  is  made
10    outside of this State, the name and address of such purchaser
11    and  the  point of delivery together with the date and amount
12    of invoiced gallons delivered; and (6) if a sale  of  special
13    fuel  is made to someone other than a licensed distributor or
14    a licensed supplier, for a use other than in motor  vehicles,
15    by making a specific notation thereof on the invoice or sales
16    slip   covering  that  sale  and  obtaining  such  supporting
17    documentation as may be required by the Department.
18        All special fuel sold or used  for  non-highway  purposes
19    must  have  a dye added in accordance with Section 4d of this
20    Law.
21    (Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01.)

22        Section  50.  The  Coin-Operated  Amusement  Device   and
23    Redemption  Machine  Tax Act is amended by changing Section 2
24    as follows:

25        (35 ILCS 510/2) (from Ch. 120, par. 481b.2)
26        Sec. 2. (a) Any person, firm, limited liability  company,
27    or corporation which displays any device described in Section
28    1,  to be played or operated by the public at any place owned
29    or  leased  by  any  such  person,  firm,  limited  liability
30    company,  or  corporation,  shall  before  he  displays  such
31    device, file in the Office of the Department  of  Revenue  an
32    application  for a license for such device properly sworn to,
 
                            -63-     LRB093 02634 SJM 02644 b
 1    setting forth his name and address, with a brief  description
 2    of  the  device  to  be displayed and the premises where such
 3    device will be located, together  with  such  other  relevant
 4    data   as   the  Department  of  Revenue  may  require.  Such
 5    application  for  a  license  shall  be  accompanied  by  the
 6    required license tax. Such license tax shall be paid  to  the
 7    Department of Revenue of the State of Illinois and all monies
 8    received by the Department of Revenue under this Act shall be
 9    paid into the General Revenue Fund in the State Treasury. The
10    Department of Revenue shall supply and deliver to the person,
11    firm,   limited   liability  company,  or  corporation  which
12    displays any device described in Section 1,  charges  prepaid
13    and  without  additional  cost, one license tag for each such
14    device on which an application is made, stating the year  for
15    which  issued.  Such  license tag shall thereupon be securely
16    affixed to such device.
17        (b)  If an amount of tax, penalty, or interest  has  been
18    paid  in  error  to  the  Department, the taxpayer may file a
19    claim for credit or refund with the  Department.   If  it  is
20    determined  that the Department must issue a credit or refund
21    under this Act, the Department may first apply the amount  of
22    the  credit or refund due against any amount of tax, penalty,
23    or interest due under this Act from the taxpayer entitled  to
24    the  credit  or  refund.    If  proceedings  are  pending  to
25    determine  if any tax, penalty, or interest is due under this
26    Act from the taxpayer, the Department may  withhold  issuance
27    of  the  credit  or  refund  pending the final disposition of
28    those proceedings and may apply that credit or refund against
29    any amount determined to be due to the Department as a result
30    of those proceedings.  The balance, if any, of the credit  or
31    refund shall be paid to the taxpayer.
32        If no tax, penalty, or interest is due and no proceedings
33    are  pending to determine whether the taxpayer is indebted to
34    the Department for tax,  penalty,  or  interest,  the  credit
 
                            -64-     LRB093 02634 SJM 02644 b
 1    memorandum or refund shall be issued to the taxpayer; or, the
 2    credit memorandum may be assigned by the taxpayer, subject to
 3    reasonable  rules  of the Department, to any other person who
 4    is subject  to  this  Act,  and  the  amount  of  the  credit
 5    memorandum  by  the  Department  against any tax, penalty, or
 6    interest due or  to  become  due  under  this  Act  from  the
 7    assignee.
 8        For  any  claim  for  credit  or  refund  filed  with the
 9    Department on or after each July  1,  no  amount  erroneously
10    paid  more than 3 years before that July 1, shall be credited
11    or refunded.
12        A claim for credit or refund shall be  filed  on  a  form
13    provided by the Department.  As soon as practicable after any
14    claim  for  credit  or  refund is filed, the Department shall
15    determine the  amount  of  credit  or  refund  to  which  the
16    claimant  is  entitled  and shall notify the claimant of that
17    determination.
18        A claim for credit or refund  shall  be  filed  with  the
19    Department  on  the  date  it  is received by the Department.
20    Upon receipt of any claim for credit or  refund  filed  under
21    this  Section,  an  officer  or  employee  of the Department,
22    authorized by the Director of Revenue to acknowledge  receipt
23    of  such claims on behalf of the Department, shall deliver or
24    mail to the claimant or his duly authorized agent, a  written
25    receipt, acknowledging that the claim has been filed with the
26    Department,  describing  the  claim  in  sufficient detail to
27    identify it, and stating the date  on  which  the  claim  was
28    received  by  the  Department.   The written receipt shall be
29    prima facie evidence that the Department received  the  claim
30    described in the receipt and shall be prima facie evidence of
31    the  date when such claim was received by the Department.  In
32    the  absence  of  a  written  receipt,  the  records  of  the
33    Department as to whether a claim was received,  or  when  the
34    claim  was  received by the Department, shall be deemed to be
 
                            -65-     LRB093 02634 SJM 02644 b
 1    prima facie correct in the event of any dispute  between  the
 2    claimant,  or his legal representative, and the Department on
 3    these issues.
 4        Any credit or refund that is allowed under  this  Article
 5    shall  bear  interest at the rate and in the manner specified
 6    in the Uniform Penalty and Interest Act.
 7        If  the  Department  determines  that  the  claimant   is
 8    entitled  to  a refund, the refund shall be made only from an
 9    appropriation to the Department for  that  purpose.   If  the
10    amount appropriated is insufficient to pay claimants electing
11    to   receive  a  cash  refund,  the  Department  by  rule  or
12    regulation shall first provide for the payment of refunds  in
13    hardship cases as defined by the Department.
14    (Source: P.A. 88-194; 88-480; 88-670, eff. 12-2-94.)

15        Section  55.  The  Cannabis and Controlled Substances Tax
16    Act is amended by changing Section 16 as follows:

17        (35 ILCS 520/16) (from Ch. 120, par. 2166)
18        Sec. 16.  All  assessments  are  Jeopardy  Assessments  -
19    lien.
20        (a)  Assessment.    An   assessment   for  a  dealer  not
21    possessing valid stamps or  other  official  indicia  showing
22    that  the  tax  has  been paid shall be considered a jeopardy
23    assessment or collection, as provided by Section 1102 of  the
24    Illinois  Income Tax Act.  The Department shall determine and
25    assess a tax and applicable penalties and interest  according
26    to  the  best  judgment  and  information  available  to  the
27    Department,  which amount so fixed by the Department shall be
28    prima facie correct and shall be prima facie evidence of  the
29    correctness  of  the  amount  of  tax  due,  as shown in such
30    determination.  When, according  to  the  best  judgment  and
31    information  available  to  the Department with regard to all
32    real and personal property and  rights  to  property  of  the
 
                            -66-     LRB093 02634 SJM 02644 b
 1    dealer,  there  is no reasonable expectation of collection of
 2    the amount of tax and penalty to be assessed, the  Department
 3    may  issue an assessment under this Section for the amount of
 4    tax without penalty.
 5        (b)  Filing  of  Lien.   Upon  issuance  of  a   jeopardy
 6    assessment as provided by subsection (a) of this Section, the
 7    Department  may  file a notice of jeopardy assessment lien in
 8    the office of  the  recorder  of  the  county  in  which  any
 9    property  of the taxpayer may be located and shall notify the
10    taxpayer of such filing.
11        (c)  Protest.  If the taxpayer believes that he does  not
12    owe  some  or  all  of  the  amount  for  which  the jeopardy
13    assessment lien against him has been filed,  he  may  protest
14    within  20 days after being notified by the Department of the
15    filing  of  such  jeopardy  assessment  lien  and  request  a
16    hearing, whereupon the Department shall  hold  a  hearing  in
17    conformity with the provisions of Section 908 of the Illinois
18    Income  Tax  Act  and,  pursuant  thereto,  shall  notify the
19    taxpayer of its decision as to whether or not  such  jeopardy
20    assessment lien will be released.
21        After  the  expiration  of  the  period  within which the
22    person assessed may file an action for judicial review  under
23    the  Administrative  Review  Law  without  such  action being
24    filed, a certified copy of the final  assessment  or  revised
25    final  assessment  of  the  Department  may be filed with the
26    Circuit Court of the county in which the dealer  resides,  or
27    of Cook County in the case of a dealer who does not reside in
28    this  State, or in the county where the violation of this Act
29    took place. The certified copy of  the  final  assessment  or
30    revised   final   assessment   shall   be  accompanied  by  a
31    certification which recites facts that are sufficient to show
32    that  the  Department  complied   with   the   jurisdictional
33    requirements  of  the Act in arriving at its final assessment
34    or its revised final assessment and that the dealer had  this
 
                            -67-     LRB093 02634 SJM 02644 b
 1    opportunity  for  an  administrative hearing and for judicial
 2    review, whether he availed himself or herself  of  either  or
 3    both  of  these  opportunities  or  not.   If  the  court  is
 4    satisfied    that    the   Department   complied   with   the
 5    jurisdictional requirements of the Act  in  arriving  at  its
 6    final assessment or its revised final assessment and that the
 7    taxpayer  had  his  opportunity for an administrative hearing
 8    and for judicial review, whether he availed himself of either
 9    or both of these opportunities or not, the court shall render
10    judgment in favor of the Department and against the  taxpayer
11    for the amount shown to be due by the final assessment or the
12    revised final assessment, plus any interest which may be due,
13    and  such judgment shall be entered in the judgment docket of
14    the court.   Such  judgment  shall  bear  the  same  rate  of
15    interest  and  shall have the same effect as other judgments.
16    The judgment may be enforced,  and  all  laws  applicable  to
17    sales  for  the enforcement of a judgment shall be applicable
18    to sales made under such  judgments.   The  Department  shall
19    file   the  certified  copy  of  its  assessment,  as  herein
20    provided, with the Circuit Court within 2  years  after  such
21    assessment becomes final except when the taxpayer consents in
22    writing  to  an  extension  of such filing period, and except
23    that the time limitation period on the Department's right  to
24    file  the  certified  copy of its assessment with the Circuit
25    Court shall not run during any period of time  in  which  the
26    order of any court has the effect of enjoining or restraining
27    the  Department  from  filing  such  certified  copy  of  its
28    assessment with the Circuit Court.
29        If,  when  the  cause of action for a proceeding in court
30    accrues against a person, he or she is out of the State,  the
31    action  may  be  commenced  within  the times herein limited,
32    after his or her coming into or returning to the  State;  and
33    if, after the cause of action accrues, he or she departs from
34    and  remains out of the State, the time of his or her absence
 
                            -68-     LRB093 02634 SJM 02644 b
 1    from the State, the time of his or her absence is no part  of
 2    the  time limited for the commencement of the action; but the
 3    foregoing provisions concerning absence from the State  shall
 4    not  apply  to  any  case  in which, at the time the cause of
 5    action accrues, the party against whom the  cause  of  action
 6    accrues  is  not  a  resident of this State.  The time within
 7    which a court action is to be  commenced  by  the  Department
 8    hereunder  shall  not  run from the date the taxpayer files a
 9    petition in bankruptcy under the Federal Bankruptcy Act until
10    30 days after notice of  termination  or  expiration  of  the
11    automatic stay imposed by the Federal Bankruptcy Act.
12        No  claim  shall  be  filed  against  the  estate  of any
13    deceased person or any person under legal disability for  any
14    tax  or penalty or part of either, or interest, except in the
15    manner prescribed and within the time limited by the  Probate
16    Act of 1975, as amended.
17        The collection of tax or penalty or interest by any means
18    provided  for  herein  shall  not be a bar to any prosecution
19    under this Act.
20        In addition to any penalty provided for in this Act,  any
21    amount  of tax which is not paid when due shall bear interest
22    at the rate determined in accordance with the Uniform Penalty
23    and Interest Act, per month or fraction thereof from the date
24    when such tax becomes past due until such tax is  paid  or  a
25    judgment therefor is obtained by the Department.  If the time
26    for  making  or completing an audit of a taxpayer's books and
27    records is extended  with  the  taxpayer's  consent,  at  the
28    request  of and for the convenience of the Department, beyond
29    the date  on  which  the  statute  of  limitations  upon  the
30    issuance  of  a  notice  of  tax  liability by the Department
31    otherwise run, no interest shall accrue during the period  of
32    such  extension.   Interest  shall  be  collected in the same
33    manner and as part of the tax.
34        If the Department determines that an  amount  of  tax  or
 
                            -69-     LRB093 02634 SJM 02644 b
 1    penalty  or interest was incorrectly assessed, whether as the
 2    result of  a  mistake  of  fact  or  an  error  of  law,  the
 3    Department  shall  waive  the  amount  of  tax  or penalty or
 4    interest that accrued due to the incorrect assessment.
 5    (Source: P.A. 90-655, eff. 7-30-98.)

 6        Section 60.  The Messages Tax Act is amended by  changing
 7    Section 6 as follows:

 8        (35 ILCS 610/6) (from Ch. 120, par. 467.6)
 9        Sec.  6.  If  it appears, after claim therefor filed with
10    the Department, that an amount of tax or penalty or  interest
11    has  been  paid  which was not due under this Act, whether as
12    the result of a mistake of fact or an error of law, except as
13    hereinafter provided,  then  the  Department  shall  issue  a
14    credit  memorandum  or  refund  to  the  person  who made the
15    erroneous payment or, if that person has  died  or  become  a
16    person   under   legal   disability,  to  his  or  her  legal
17    representative, as such.
18        If it is determined that the Department  should  issue  a
19    credit  or  refund  under  this Act, the Department may first
20    apply the amount thereof against any amount of tax or penalty
21    or interest due hereunder from the person  entitled  to  such
22    credit  or  refund.  For  this  purpose,  if  proceedings are
23    pending to determine whether or not any  tax  or  penalty  or
24    interest  is  due  under  this  Act  from  such  person,  the
25    Department  may  withhold  issuance  of  the credit or refund
26    pending the final disposition of  such  proceedings  and  may
27    apply  such  credit  or refund against any amount found to be
28    due to the Department as a result of  such  proceedings.  The
29    balance,  if  any, of the credit or refund shall be issued to
30    the person entitled thereto.
31        If no tax or penalty or interest is due and no proceeding
32    is pending to determine whether such person  is  indebted  to
 
                            -70-     LRB093 02634 SJM 02644 b
 1    the  Department  for  tax  or penalty or interest, the credit
 2    memorandum or refund shall be issued to the claimant; or  (in
 3    the case of a credit memorandum) the credit memorandum may be
 4    assigned  and  set over by the lawful holder thereof, subject
 5    to reasonable rules of the Department, to  any  other  person
 6    who  is  subject to this Act, and the amount thereof shall be
 7    applied by the Department  against  any  tax  or  penalty  or
 8    interest  due  or  to  become  due  under  this Act from such
 9    assignee.
10        As to any claim for  credit  or  refund  filed  with  the
11    Department  on or after each January 1 and July 1, no amounts
12    erroneously paid more than 3 years prior to  such  January  1
13    and  July  1,  respectively,  shall  be credited or refunded,
14    except that if both the  Department  and  the  taxpayer  have
15    agreed  to  an  extension  of  time  to issue a notice of tax
16    liability under this Act, the claim may be filed at any  time
17    prior to the expiration of the period agreed upon.
18        Claims  for  credit  or  refund shall be filed upon forms
19    provided by the Department. As soon as practicable after  any
20    claim  for  credit  or  refund is filed, the Department shall
21    examine the same and determine the amount of credit or refund
22    to which the  claimant  is  entitled  and  shall  notify  the
23    claimant  of  such determination, which amount shall be prima
24    facie correct.
25        Any credit or refund that is allowed under this Act shall
26    bear interest at the rate and in the manner specified in  the
27    Uniform Penalty and Interest Act.
28        In  case  the  Department determines that the claimant is
29    entitled to a refund, such refund shall  be  made  only  from
30    such  appropriation  as may be available for that purpose. If
31    it appears unlikely that the amount appropriated would permit
32    everyone having a claim allowed during the period covered  by
33    such  appropriation  to  elect  to receive a cash refund, the
34    Department, by rule or  regulation,  shall  provide  for  the
 
                            -71-     LRB093 02634 SJM 02644 b
 1    payment  of  refunds  in hardship cases and shall define what
 2    types of cases qualify as hardship cases.
 3    (Source: P.A. 90-491, eff. 1-1-98.)

 4        Section 65.  The  Gas  Revenue  Tax  Act  is  amended  by
 5    changing Section 6 as follows:

 6        (35 ILCS 615/6) (from Ch. 120, par. 467.21)
 7        Sec.  6.  If  it appears, after claim therefor filed with
 8    the Department, that an amount of tax or penalty or  interest
 9    has  been  paid  which was not due under this Act, whether as
10    the result of a mistake of fact or an error of law, except as
11    hereinafter provided,  then  the  Department  shall  issue  a
12    credit  memorandum  or  refund  to  the  person  who made the
13    erroneous payment or, if that person has  died  or  become  a
14    person   under   legal   disability,  to  his  or  her  legal
15    representative, as such.
16        If it is determined that the Department  should  issue  a
17    credit  or  refund  under  this Act, the Department may first
18    apply the amount thereof against any amount of tax or penalty
19    or interest due hereunder from the person  entitled  to  such
20    credit  or  refund.  For  this  purpose,  if  proceedings are
21    pending to determine whether or not any  tax  or  penalty  or
22    interest  is  due  under  this  Act  from  such  person,  the
23    Department  may  withhold  issuance  of  the credit or refund
24    pending the final disposition of  such  proceedings  and  may
25    apply  such  credit  or refund against any amount found to be
26    due to the Department as a result of  such  proceedings.  The
27    balance,  if  any, of the credit or refund shall be issued to
28    the person entitled thereto.
29        If no tax or penalty or interest is due and no proceeding
30    is pending to determine whether such person  is  indebted  to
31    the  Department  for  tax  or penalty or interest, the credit
32    memorandum or refund shall be issued to the claimant; or  (in
 
                            -72-     LRB093 02634 SJM 02644 b
 1    the case of a credit memorandum) the credit memorandum may be
 2    assigned  and  set over by the lawful holder thereof, subject
 3    to reasonable rules of the Department, to  any  other  person
 4    who  is  subject to this Act, and the amount thereof shall be
 5    applied by the Department  against  any  tax  or  penalty  or
 6    interest  due  or  to  become  due  under  this Act from such
 7    assignee.
 8        As to any claim for  credit  or  refund  filed  with  the
 9    Department  on or after each January 1 and July 1, no amounts
10    erroneously paid more than 3 years prior to  such  January  1
11    and  July  1,  respectively,  shall  be credited or refunded,
12    except that if both the  Department  and  the  taxpayer  have
13    agreed  to  an  extension  of  time  to issue a notice of tax
14    liability under this Act, the claim may be filed at any  time
15    prior to the expiration of the period agreed upon.
16        Claims  for  credit  or  refund shall be filed upon forms
17    provided by the Department. As soon as practicable after  any
18    claim  for  credit  or  refund is filed, the Department shall
19    examine the same and determine the amount of credit or refund
20    to which the  claimant  is  entitled  and  shall  notify  the
21    claimant  of  such determination, which amount shall be prima
22    facie correct.
23        Any credit or refund that is allowed under this Act shall
24    bear interest at the rate and in the manner specified in  the
25    Uniform Penalty and Interest Act.
26        In  case  the  Department determines that the claimant is
27    entitled to a refund, such refund shall  be  made  only  from
28    such  appropriation  as may be available for that purpose. If
29    it appears unlikely that the amount appropriated would permit
30    everyone having a claim allowed during the period covered  by
31    such  appropriation  to  elect  to receive a cash refund, the
32    Department, by rule or  regulation,  shall  provide  for  the
33    payment  of  refunds  in hardship cases and shall define what
34    types of cases qualify as hardship cases.
 
                            -73-     LRB093 02634 SJM 02644 b
 1    (Source: P.A. 90-491, eff. 1-1-98.)

 2        Section 70.  The Public Utilities Revenue Act is  amended
 3    by changing Section 6 as follows:

 4        (35 ILCS 620/6) (from Ch. 120, par. 473)
 5        Sec.  6.  If  it appears, after claim therefor filed with
 6    the Department, that an amount of tax or penalty or  interest
 7    has  been  paid  which was not due under this Act, whether as
 8    the result of a mistake of fact or an error of law, except as
 9    hereinafter provided,  then  the  Department  shall  issue  a
10    credit  memorandum  or  refund  to  the  person  who made the
11    erroneous payment or, if that person has  died  or  become  a
12    person   under   legal   disability,  to  his  or  her  legal
13    representative, as such.
14        If it is determined that the Department  should  issue  a
15    credit  or  refund  under  this Act, the Department may first
16    apply the amount thereof against any amount of tax or penalty
17    or interest due hereunder from the person  entitled  to  such
18    credit  or  refund.  Any  credit  memorandum issued under the
19    Electricity  Excise  Tax  Law  may  be  applied  against  any
20    liability  incurred  under  the  tax  previously  imposed  by
21    Section 2 of this Act.  For this purpose, if proceedings  are
22    pending  to  determine  whether  or not any tax or penalty or
23    interest  is  due  under  this  Act  from  such  person,  the
24    Department may withhold issuance  of  the  credit  or  refund
25    pending  the  final  disposition  of such proceedings and may
26    apply such credit or refund against any amount  found  to  be
27    due  to  the  Department as a result of such proceedings. The
28    balance, if any, of the credit or refund shall be  issued  to
29    the person entitled thereto.
30        If no tax or penalty or interest is due and no proceeding
31    is  pending  to  determine whether such person is indebted to
32    the Department for tax or penalty  or  interest,  the  credit
 
                            -74-     LRB093 02634 SJM 02644 b
 1    memorandum  or refund shall be issued to the claimant; or (in
 2    the case of a credit memorandum) the credit memorandum may be
 3    assigned and set over by the lawful holder  thereof,  subject
 4    to  reasonable  rules  of the Department, to any other person
 5    who is subject to this Act, and the amount thereof  shall  be
 6    applied  by  the  Department  against  any  tax or penalty or
 7    interest due or to  become  due  under  this  Act  from  such
 8    assignee.
 9        As  to  any  claim  for  credit  or refund filed with the
10    Department on or after each January 1 and July 1, no  amounts
11    erroneously  paid  more  than 3 years prior to such January 1
12    and July 1, respectively,  shall  be  credited  or  refunded,
13    except  that  if  both  the  Department and the taxpayer have
14    agreed to an extension of time  to  issue  a  notice  of  tax
15    liability  under this Act, the claim may be filed at any time
16    prior to the expiration of the period agreed upon.
17        Claims for credit or refund shall  be  filed  upon  forms
18    provided  by the Department. As soon as practicable after any
19    claim for credit or refund is  filed,  the  Department  shall
20    examine the same and determine the amount of credit or refund
21    to  which  the  claimant  is  entitled  and  shall notify the
22    claimant of such determination, which amount shall  be  prima
23    facie correct.
24        Any credit or refund that is allowed under this Act shall
25    bear  interest at the rate and in the manner specified in the
26    Uniform Penalty and Interest Act.
27        In case the Department determines that  the  claimant  is
28    entitled  to  a  refund,  such refund shall be made only from
29    such appropriation as may be available for that  purpose.  If
30    it appears unlikely that the amount appropriated would permit
31    everyone  having a claim allowed during the period covered by
32    such appropriation to elect to receive  a  cash  refund,  the
33    Department,  by  rule  or  regulation,  shall provide for the
34    payment of refunds in hardship cases and  shall  define  what
 
                            -75-     LRB093 02634 SJM 02644 b
 1    types of cases qualify as hardship cases.
 2    (Source: P.A. 90-491, eff. 1-1-98; 90-624, eff. 7-10-98.)

 3        Section  75.  The  Water Company Invested Capital Tax Act
 4    is amended by changing Section 6 as follows:

 5        (35 ILCS 625/6) (from Ch. 120, par. 1416)
 6        Sec. 6.  If it appears, after claim therefor  filed  with
 7    the  Department, that an amount of tax or penalty or interest
 8    has been paid which was not due under this  Act,  whether  as
 9    the result of a mistake of fact or an error of law, except as
10    hereinafter  provided,  then  the  Department  shall  issue a
11    credit memorandum or  refund  to  the  person  who  made  the
12    erroneous  payment  or,  if  that  person  has died or become
13    incompetent, to his legal representative, as such.
14        If it is determined that the Department  should  issue  a
15    credit  or  refund  under  this Act, the Department may first
16    apply the amount thereof against any amount of tax or penalty
17    or interest due hereunder from the person  entitled  to  such
18    credit  or  refund.  For  this  purpose,  if  proceedings are
19    pending to determine whether or not any  tax  or  penalty  or
20    interest  is  due  under  this  Act  from  such  person,  the
21    Department  may  withhold  issuance  of  the credit or refund
22    pending the final disposition of  such  proceedings  and  may
23    apply  such  credit  or refund against any amount found to be
24    due to the Department as a result of  such  proceedings.  The
25    balance,  if  any, of the credit or refund shall be issued to
26    the person entitled thereto.
27        If no tax or penalty or interest is due and no proceeding
28    is pending to determine whether such person  is  indebted  to
29    the  Department  for  tax  or penalty or interest, the credit
30    memorandum or refund shall be issued to the claimant; or  (in
31    the case of a credit memorandum) the credit memorandum may be
32    assigned  and  set over by the lawful holder thereof, subject
 
                            -76-     LRB093 02634 SJM 02644 b
 1    to reasonable rules of the Department, to  any  other  person
 2    who  is  subject to this Act, and the amount thereof shall be
 3    applied by the Department  against  any  tax  or  penalty  or
 4    interest  due  or  to  become  due  under  this Act from such
 5    assignee.
 6        As to any claim for  credit  or  refund  filed  with  the
 7    Department  on or after each January 1 and July 1, no amounts
 8    erroneously paid more than 3 years prior to  such  January  1
 9    and  July  1,  respectively,  shall  be credited or refunded,
10    except that if both the  Department  and  the  taxpayer  have
11    agreed  to  an  extension  of  time  to issue a notice of tax
12    liability under this Act, the claim may be filed at any  time
13    prior to the expiration of the period agreed upon.
14        Claims  for  credit  or  refund shall be filed upon forms
15    provided by the Department. As soon as practicable after  any
16    claim  for  credit  or  refund is filed, the Department shall
17    examine the same and determine the amount of credit or refund
18    to which the  claimant  is  entitled  and  shall  notify  the
19    claimant  of  such determination, which amount shall be prima
20    facie correct.
21        Any credit or refund that is allowed under  this  Section
22    shall  bear  interest at the rate and in the manner specified
23    in the Uniform Penalty and Interest Act.
24        In case the Department determines that  the  claimant  is
25    entitled  to  a  refund,  such refund shall be made only from
26    such appropriation as may be available for that  purpose.  If
27    it appears unlikely that the amount appropriated would permit
28    everyone  having a claim allowed during the period covered by
29    such appropriation to elect to receive  a  cash  refund,  the
30    Department,  by  rule  or  regulation,  shall provide for the
31    payment of refunds in hardship cases and  shall  define  what
32    types of cases qualify as hardship cases.
33    (Source: P.A. 90-491, eff. 1-1-98.)
 
                            -77-     LRB093 02634 SJM 02644 b
 1        Section  80.  The  Telecommunications  Excise  Tax Act is
 2    amended by changing Section 10 as follows:

 3        (35 ILCS 630/10) (from Ch. 120, par. 2010)
 4        Sec. 10.  If it shall appear that an  amount  of  tax  or
 5    penalty  or  interest has been paid in error hereunder to the
 6    Department by a taxpayer, as distinguished from the retailer,
 7    whether such amount be paid through a mistake of fact  or  an
 8    error  of  law,  such taxpayer may file a claim for credit or
 9    refund with the Department.   If  it  shall  appear  that  an
10    amount  of  tax or penalty or interest has been paid in error
11    to the Department hereunder by a retailer who is required  or
12    authorized  to  collect  and  remit  the  tax imposed by this
13    Article, whether such amount be paid  through  a  mistake  of
14    fact  or  an error of law, such retailer may file a claim for
15    credit or refund with the Department, provided that no credit
16    or refund shall be allowed for any amount paid  by  any  such
17    retailer  unless  it  shall appear that he bore the burden of
18    such amount and did not shift the burden  thereof  to  anyone
19    else,  or unless it shall appear that he or she or his or her
20    legal representative has unconditionally repaid  such  amount
21    to  his  customer (1) who bore the burden thereof and has not
22    shifted such burden directly  or  indirectly  in  any  manner
23    whatsoever; or (2) who, if he or she shifted such burden, has
24    repaid   unconditionally  such  amount  to  his  or  her  own
25    customer;  and  (3)  who  is  not  entitled  to  receive  any
26    reimbursement therefor from any other source  than  from  his
27    retailer,  nor  to  be  relieved  of such burden in any other
28    manner whatsoever.
29        If it is determined that the Department  should  issue  a
30    credit or refund under this Article, the Department may first
31    apply the amount thereof against any amount of tax or penalty
32    or  interest  due  hereunder from the person entitled to such
33    credit or refund.   For  this  purpose,  if  proceedings  are
 
                            -78-     LRB093 02634 SJM 02644 b
 1    pending  to  determine  whether  or not any tax or penalty or
 2    interest is due under this  Article  from  such  person,  the
 3    Department  may  withhold  issuance  of  the credit or refund
 4    pending the final disposition of  such  proceedings  and  may
 5    apply  such  credit  or refund against any amount found to be
 6    due to the Department as a result of such  proceedings.   The
 7    balance,  if  any, of the credit or refund shall be issued to
 8    the person entitled thereto.
 9        If no tax or penalty or interest is due and no proceeding
10    is pending to determine whether such person  is  indebted  to
11    the  Department  for  tax  or penalty or interest, the credit
12    memorandum or refund shall be issued to the claimant; or  (in
13    the case of a credit memorandum) the credit memorandum may be
14    assigned  and  set over by the lawful holder thereof, subject
15    to reasonable rules of the Department, to  any  other  person
16    who  is subject to this Article, and the amount thereof shall
17    be applied by the Department against any tax  or  penalty  or
18    interest  due  or  to become due under this Article from such
19    assignee.
20        As to any claim for  credit  or  refund  filed  with  the
21    Department  on or after each January 1 and July 1, no amounts
22    erroneously paid more than three years prior to such  January
23    1  and  July  1, respectively, shall be credited or refunded,
24    except that if both the  Department  and  the  taxpayer  have
25    agreed  to  an  extension  of  time  to issue a notice of tax
26    liability under this Act, the claim may be filed at any  time
27    prior to the expiration of the period agreed upon.
28        Claims  for  credit  or  refund shall be filed upon forms
29    provided by the Department.  As soon as practicable after any
30    claim for credit or refund is  filed,  the  Department  shall
31    examine the same and determine the amount of credit or refund
32    to  which  the  claimant  is  entitled  and  shall notify the
33    claimant of such determination, which amount shall  be  prima
34    facie correct.
 
                            -79-     LRB093 02634 SJM 02644 b
 1        A  claim for credit or refund shall be considered to have
 2    been filed with the Department on the date upon which  it  is
 3    received  by  the  Department.  Upon receipt of any claim for
 4    credit or refund filed under this  Article,  any  officer  or
 5    employee  of  the  Department,  authorized  in writing by the
 6    Director of Revenue to acknowledge receipt of such claims  on
 7    behalf  of  the  Department,  shall  execute on behalf of the
 8    Department, and shall deliver or mail to the claimant or  his
 9    duly  authorized agent, a written receipt, acknowledging that
10    the claim has been filed with the Department, describing  the
11    claim  in  sufficient  detail  to identify it and stating the
12    date upon which the claim was  received  by  the  Department.
13    Such  written  receipt shall be prima facie evidence that the
14    Department received the claim described in such  receipt  and
15    shall be prima facie evidence of the date when such claim was
16    received by the Department.  In the absence of such a written
17    receipt,  the  records of the Department as to when the claim
18    was received by the Department, or as to whether or  not  the
19    claim  was received at all by the Department, shall be deemed
20    to be prima facie correct upon these questions in  the  event
21    of  any  dispute  between  the  claimant (or his or her legal
22    representative)   and   the   Department   concerning   these
23    questions.
24        Any credit or refund that is allowed under  this  Article
25    shall  bear  interest at the rate and in the manner specified
26    in the Uniform Penalty and Interest Act.
27        In case the Department determines that  the  claimant  is
28    entitled  to  a  refund,  such refund shall be made only from
29    such appropriation as may be available for that purpose.   If
30    it appears unlikely that the amount appropriated would permit
31    everyone  having a claim allowed during the period covered by
32    such appropriation to elect to receive  a  cash  refund,  the
33    Department  by  rule  or  regulation  shall  provide  for the
34    payment of refunds in hardship cases and  shall  define  what
 
                            -80-     LRB093 02634 SJM 02644 b
 1    types of cases qualify as hardship cases.
 2        If  a retailer who has failed to pay tax on gross charges
 3    for telecommunications is required by the Department  to  pay
 4    such tax, such retailer, without filing any formal claim with
 5    the  Department, shall be allowed to take credit against such
 6    tax liability to the extent, if any, to which  such  retailer
 7    has  paid  the  tax  to  its vendor of the telecommunications
 8    which such retailer purchased and used  for  resale,  and  no
 9    penalty  or interest shall be charged to such retailer on the
10    amount of such credit.  However, when such credit is  allowed
11    to  the  retailer  by the Department, the vendor is precluded
12    from refunding any of the tax to the retailer  and  filing  a
13    claim  for  credit  or  refund  with respect thereto with the
14    Department.  The provisions of this  Section  added  by  this
15    amendatory  Act  of  1988  shall  be  applied  retroactively,
16    regardless of the date of the transaction.
17    (Source: P.A. 90-491, eff. 1-1-98.)

18        Section  85.  The  Uniform  Penalty  and  Interest Act is
19    amended by changing Sections 3-3 and 3-7 as follows:

20        (35 ILCS 735/3-3) (from Ch. 120, par. 2603-3)
21        Sec. 3-3.  Penalty for failure to file or pay.
22        (a)  This subsection (a) is applicable before January  1,
23    1996.  A penalty of 5% of the tax required to be shown due on
24    a  return shall be imposed for failure to file the tax return
25    on or before the due date prescribed  for  filing  determined
26    with regard for any extension of time for filing (penalty for
27    late  filing  or  nonfiling).  If any unprocessable return is
28    corrected and filed  within  21  days  after  notice  by  the
29    Department,  the  late  filing or nonfiling penalty shall not
30    apply.  If a penalty for late filing or nonfiling is  imposed
31    in  addition to a penalty for late payment, the total penalty
32    due shall be the sum of  the  late  filing  penalty  and  the
 
                            -81-     LRB093 02634 SJM 02644 b
 1    applicable  late  payment penalty. Beginning on the effective
 2    date of this amendatory Act of 1995, in the case of any  type
 3    of  tax  return  required  to  be  filed more frequently than
 4    annually, when the failure to  file  the  tax  return  on  or
 5    before   the   date  prescribed  for  filing  (including  any
 6    extensions) is shown to be nonfraudulent and has not occurred
 7    in the 2 years immediately preceding the failure to  file  on
 8    the  prescribed  due  date,  the  penalty  imposed by Section
 9    3-3(a) shall be abated.
10        (a-5)  This subsection (a-5) is applicable to returns due
11    on and after January 1, 1996 and on or  before  December  31,
12    2000.  A  penalty equal to 2% of the tax required to be shown
13    due on a return, up to a maximum amount of  $250,  determined
14    without regard to any part of the tax that is paid on time or
15    by  any  credit  that  was properly allowable on the date the
16    return was required to be filed, shall be imposed for failure
17    to file the tax return on or before the due  date  prescribed
18    for  filing  determined with regard for any extension of time
19    for filing. However, if any return is  not  filed  within  30
20    days  after  notice  of nonfiling mailed by the Department to
21    the  last  known  address  of  the  taxpayer   contained   in
22    Department  records,  an  additional  penalty amount shall be
23    imposed equal to the greater of $250 or 2% of the  tax  shown
24    on  the  return.   However, the additional penalty amount may
25    not exceed $5,000 and is determined  without  regard  to  any
26    part  of  the  tax that is paid on time or by any credit that
27    was properly allowable on the date the return was required to
28    be filed (penalty for late  filing  or  nonfiling).   If  any
29    unprocessable  return  is  corrected and filed within 30 days
30    after notice by the Department, the late filing or  nonfiling
31    penalty  shall  not  apply.   If a penalty for late filing or
32    nonfiling is imposed  in  addition  to  a  penalty  for  late
33    payment,  the  total penalty due shall be the sum of the late
34    filing penalty and the applicable late  payment  penalty.  In
 
                            -82-     LRB093 02634 SJM 02644 b
 1    the  case of any type of tax return required to be filed more
 2    frequently than annually, when the failure to  file  the  tax
 3    return on or before the date prescribed for filing (including
 4    any  extensions)  is  shown  to  be nonfraudulent and has not
 5    occurred in the 2 years immediately preceding the failure  to
 6    file  on  the  prescribed  due  date,  the penalty imposed by
 7    Section 3-3(a-5) shall be abated.
 8        (a-10)  This subsection (a-10) is applicable  to  returns
 9    due  on  and  after January 1, 2001. A penalty equal to 2% of
10    the tax required to be shown due on a return, up to a maximum
11    amount of $250, reduced by any tax that is paid on time or by
12    any credit that was properly allowable on the date the return
13    was required to be filed, shall be  imposed  for  failure  to
14    file  the tax return on or before the due date prescribed for
15    filing determined with regard for any extension of  time  for
16    filing.  However,  if  any return is not filed within 30 days
17    after notice of nonfiling mailed by  the  Department  to  the
18    last  known  address  of the taxpayer contained in Department
19    records, an additional penalty amount shall be imposed  equal
20    to  the greater of $250 or 2% of the tax shown on the return.
21    However, the additional penalty amount may not exceed  $5,000
22    and  is determined without regard to any part of the tax that
23    is paid on time or by any credit that was properly  allowable
24    on  the date the return was required to be filed (penalty for
25    late filing or nonfiling).  If any  unprocessable  return  is
26    corrected  and  filed  within  30  days  after  notice by the
27    Department, the late filing or nonfiling  penalty  shall  not
28    apply.   If a penalty for late filing or nonfiling is imposed
29    in addition to a penalty for late payment, the total  penalty
30    due  shall  be  the  sum  of  the late filing penalty and the
31    applicable late payment penalty. In the case of any  type  of
32    tax   return  required  to  be  filed  more  frequently  than
33    annually, when the failure to  file  the  tax  return  on  or
34    before   the   date  prescribed  for  filing  (including  any
 
                            -83-     LRB093 02634 SJM 02644 b
 1    extensions) is shown to be nonfraudulent and has not occurred
 2    in the 2 years immediately preceding the failure to  file  on
 3    the  prescribed  due  date,  the  penalty  imposed by Section
 4    3-3(a-10) shall be abated.
 5        (b)  This subsection  is  applicable  before  January  1,
 6    1998.  A penalty of 15% of the tax shown on the return or the
 7    tax required to be shown due on the return shall  be  imposed
 8    for failure to pay:
 9             (1)  the  tax  shown  due on the return on or before
10        the due date prescribed  for  payment  of  that  tax,  an
11        amount  of  underpayment  of  estimated tax, or an amount
12        that is reported in  an  amended  return  other  than  an
13        amended return timely filed as required by subsection (b)
14        of  Section  506  of the Illinois Income Tax Act (penalty
15        for late payment or nonpayment of admitted liability); or
16             (2)  the full amount of any tax required to be shown
17        due on a return and which is not shown (penalty for  late
18        payment or nonpayment of additional liability), within 30
19        days  after  a  notice  of  arithmetic  error, notice and
20        demand,  or  a  final  assessment  is   issued   by   the
21        Department.  In  the  case  of a final assessment arising
22        following a protest and hearing, the 30-day period  shall
23        not  begin  until  all proceedings in court for review of
24        the final assessment have terminated or  the  period  for
25        obtaining  a review has expired without proceedings for a
26        review having been instituted.  In the case of  a  notice
27        of  tax liability that becomes a final assessment without
28        a protest and  hearing,  the  penalty  provided  in  this
29        paragraph  (2)  shall be imposed at the expiration of the
30        period provided for the filing of a protest.
31        (b-5)  This subsection is applicable to  returns  due  on
32    and after January 1, 1998 and on or before December 31, 2000.
33    A  penalty  of  20% of the tax shown on the return or the tax
34    required to be shown due on the return shall be  imposed  for
 
                            -84-     LRB093 02634 SJM 02644 b
 1    failure to pay:
 2             (1)  the  tax  shown  due on the return on or before
 3        the due date prescribed  for  payment  of  that  tax,  an
 4        amount  of  underpayment  of  estimated tax, or an amount
 5        that is reported in  an  amended  return  other  than  an
 6        amended return timely filed as required by subsection (b)
 7        of  Section  506  of the Illinois Income Tax Act (penalty
 8        for late payment or nonpayment of admitted liability); or
 9             (2)  the full amount of any tax required to be shown
10        due on a return and which is not shown (penalty for  late
11        payment or nonpayment of additional liability), within 30
12        days  after  a  notice  of  arithmetic  error, notice and
13        demand,  or  a  final  assessment  is   issued   by   the
14        Department.  In  the  case  of a final assessment arising
15        following a protest and hearing, the 30-day period  shall
16        not  begin  until  all proceedings in court for review of
17        the final assessment have terminated or  the  period  for
18        obtaining  a review has expired without proceedings for a
19        review having been instituted.  In the case of  a  notice
20        of  tax liability that becomes a final assessment without
21        a protest and  hearing,  the  penalty  provided  in  this
22        paragraph  (2)  shall be imposed at the expiration of the
23        period provided for the filing of a protest.
24        (b-10)  This subsection (b-10) is applicable  to  returns
25    due on and after January 1, 2001.  A penalty shall be imposed
26    for failure to pay:
27             (1)  the  tax shown due on a return on or before the
28        due date prescribed for payment of that tax, an amount of
29        underpayment of estimated  tax,  or  an  amount  that  is
30        reported  in  an  amended  return  other  than an amended
31        return timely filed as  required  by  subsection  (b)  of
32        Section  506  of the Illinois Income Tax Act (penalty for
33        late payment or nonpayment of admitted  liability).   The
34        amount of penalty imposed under this subsection (b-10)(1)
 
                            -85-     LRB093 02634 SJM 02644 b
 1        shall  be  2% of any amount that is paid no later than 30
 2        days after the due date, 5% of any amount  that  is  paid
 3        later  than 30 days after the due date and not later than
 4        90 days after the due date, 10% of  any  amount  that  is
 5        paid  later than 90 days after the due date and not later
 6        than 180 days after the due date, and 15% of  any  amount
 7        that  is  paid later than 180 days after the due date. If
 8        notice and demand is made for the payment of  any  amount
 9        of  tax  due and if the amount due is paid within 30 days
10        after the date of the notice and demand, then the penalty
11        for late payment  or  nonpayment  of  admitted  liability
12        under  this  subsection  (b-10)(1)  on the amount so paid
13        shall not accrue for the period after  the  date  of  the
14        notice and demand.
15             (2)  the full amount of any tax required to be shown
16        due  on  a return and that is not shown (penalty for late
17        payment or nonpayment of additional liability), within 30
18        days after a  notice  of  arithmetic  error,  notice  and
19        demand,   or   a   final  assessment  is  issued  by  the
20        Department.  In the case of a  final  assessment  arising
21        following  a protest and hearing, the 30-day period shall
22        not begin until all proceedings in court  for  review  of
23        the  final  assessment  have terminated or the period for
24        obtaining a review has expired without proceedings for  a
25        review  having  been  instituted.   The amount of penalty
26        imposed under this subsection (b-10)(2) shall be  20%  of
27        any amount that is not paid within the 30-day period.  In
28        the  case  of  a  notice  of tax liability that becomes a
29        final assessment  without  a  protest  and  hearing,  the
30        penalty  provided  in  this subsection (b-10)(2) shall be
31        imposed at the expiration of the period provided for  the
32        filing of a protest.
33        (c)  For  purposes  of  the  late  payment penalties, the
34    basis of the penalty shall be the tax shown or required to be
 
                            -86-     LRB093 02634 SJM 02644 b
 1    shown on a return, whichever is applicable,  reduced  by  any
 2    part of the tax which is paid on time and by any credit which
 3    was properly allowable on the date the return was required to
 4    be filed.
 5        (d)  A penalty shall be applied to the tax required to be
 6    shown  even  if that amount is less than the tax shown on the
 7    return.
 8        (e)  This subsection (e) is  applicable  to  returns  due
 9    before  January  1,  2001.  If  both  a  subsection (b)(1) or
10    (b-5)(1) penalty and a subsection (b)(2) or (b-5)(2)  penalty
11    are  assessed  against the same return, the subsection (b)(2)
12    or (b-5)(2)  penalty  shall  be  assessed  against  only  the
13    additional tax found to be due.
14        (e-5)  This subsection (e-5) is applicable to returns due
15    on  and after January 1, 2001. If both a subsection (b-10)(1)
16    penalty and  a  subsection  (b-10)(2)  penalty  are  assessed
17    against  the  same  return,  the subsection (b-10)(2) penalty
18    shall be assessed against only the additional tax found to be
19    due.
20        (f)  If the taxpayer has failed to file the  return,  the
21    Department  shall  determine the correct tax according to its
22    best judgment and information, which amount  shall  be  prima
23    facie evidence of the correctness of the tax due.
24        (g)  The  time  within  which  to file a return or pay an
25    amount of tax due without imposition of a  penalty  does  not
26    extend the time within which to file a protest to a notice of
27    tax liability or a notice of deficiency.
28        (h)  No  return  shall  be determined to be unprocessable
29    because of the omission of any information requested  on  the
30    return  pursuant  to  Section  2505-575  of the Department of
31    Revenue Law (20 ILCS 2505/2505-575).
32    (Source: P.A.  91-239,  eff.  1-1-00;  91-803,  eff.  1-1-01;
33    92-742, eff. 7-25-02.)
 
                            -87-     LRB093 02634 SJM 02644 b
 1        (35 ILCS 735/3-7) (from Ch. 120, par. 2603-7)
 2        Sec. 3-7.  Personal Liability Penalty.
 3        (a)  Any officer or employee of any taxpayer  subject  to
 4    the  provisions  of  a tax Act administered by the Department
 5    who has the control, supervision or responsibility of  filing
 6    returns  and  making  payment  of the amount of any trust tax
 7    imposed in accordance with that Act and who wilfully fails to
 8    file the return or make the  payment  to  the  Department  or
 9    wilfully  attempts in any other manner to evade or defeat the
10    tax shall be personally liable for a  penalty  equal  to  the
11    total amount of tax unpaid by the taxpayer including interest
12    and  penalties  thereon.  The  Department  shall  determine a
13    penalty due under this Section according to its best judgment
14    and information, and that determination shall be prima  facie
15    correct  and  shall  be prima facie evidence of a penalty due
16    under this Section.   Proof  of  that  determination  by  the
17    Department  shall  be made at any hearing before it or in any
18    legal proceeding by reproduced copy or computer  printout  of
19    the  Department's  record relating thereto in the name of the
20    Department under the certificate of the Director of  Revenue.
21    If  reproduced copies of the Department's records are offered
22    as proof of that determination,  the  Director  must  certify
23    that  those  copies  are  true and exact copies of records on
24    file with the Department.   If  computer  print-outs  of  the
25    Department's   records   are   offered   as   proof  of  such
26    determination, the Director must certify that those  computer
27    print-outs  are  true  and  exact  representations of records
28    properly   entered   into   standard   electronic   computing
29    equipment,  in  the  regular  course  of   the   Department's
30    business, at or reasonably near the time of the occurrence of
31    the   facts   recorded,   from   trustworthy   and   reliable
32    information.   That  certified  reproduced  copy or certified
33    computer print-out shall without further proof,  be  admitted
34    into   evidence   before  the  Department  or  in  any  legal
 
                            -88-     LRB093 02634 SJM 02644 b
 1    proceeding and shall be prima facie proof of the  correctness
 2    of the amount of tax or penalty due.
 3        (b)  The  Department  shall  issue  a  notice  of penalty
 4    liability for the amount claimed by the  Department  pursuant
 5    to  this  Section.   Procedures  for  protest and review of a
 6    notice of penalty liability issued pursuant to  this  Section
 7    and assessment of the penalty due hereunder shall be the same
 8    as those prescribed for protest and review of a notice of tax
 9    liability  or a notice of deficiency, as the case may be, and
10    the assessment of tax liability under the Act  imposing  that
11    liability.
12        (b-5)  Any    person   filing   an   action   under   the
13    Administrative Review Law to review  a  final  assessment  or
14    revised  final  assessment  (except  a  final  assessment  or
15    revised final assessment relating to any trust tax imposed in
16    accordance  with  the  Illinois Income Tax Act) issued by the
17    Department under this Section shall,  within  20  days  after
18    filing  the  complaint,  file a bond with good and sufficient
19    surety or sureties residing in this State or licensed  to  do
20    business  in  this State, or instead of bond, obtain an order
21    from the court imposing a lien upon the plaintiff's  property
22    as  hereinafter provided.  If the person filing the complaint
23    fails to comply with this bonding requirement within 20  days
24    after  filing  the  complaint,  the  Department  shall file a
25    motion to dismiss and the  court  shall  dismiss  the  action
26    unless the person filing the action complies with the bonding
27    requirements set out with this provision within 30 days after
28    the filing of the Department's motion to dismiss.
29        Upon  dismissal of a complaint for failure to comply with
30    this subsection, the court shall enter judgment  against  the
31    taxpayer  and in favor of the Department in the amount of the
32    final assessment or revised final assessment,  together  with
33    any interest that has accrued since the Department issued the
34    final  assessment or revised final assessment, and for costs.
 
                            -89-     LRB093 02634 SJM 02644 b
 1    The judgment  is  enforceable  as  other  judgments  for  the
 2    payment of money.
 3        The amount of the bond shall be fixed and approved by the
 4    court,  but  shall not be less than the amount of the tax and
 5    penalty claimed to be due by  the  Department  in  its  final
 6    assessment  or  revised final assessment to the person filing
 7    the bond, plus the amount of interest due from that person to
 8    the Department at the time when  the  Department  issued  its
 9    final  assessment or revised final assessment to that person.
10    The bond must be executed in  favor  of  the  Department  and
11    conditioned  on  the  taxpayer's payment within 30 days after
12    termination of the proceedings for  judicial  review  of  the
13    amount of tax, penalty, and interest found by the court to be
14    due in those proceedings.  The bond, when filed and approved,
15    is,  from  that  time  until 2 years after termination of the
16    proceedings for judicial review in which the bond is filed, a
17    lien against the real estate situated in the county in  which
18    the  bond  is  filed of the person filing the bond and of the
19    surety or sureties on the bond, until the  condition  of  the
20    bond  is  complied  with  or  until  the  bond is canceled as
21    provided  in  this  subsection.  The  lien  does  not  apply,
22    however, to the real property  of  a  corporate  surety  duly
23    licensed  to  do business in this State. If the person filing
24    the bond fails to keep its condition, the bond is  forfeited,
25    and  the  Department may institute an action upon the bond in
26    its own name for the entire amount of the bond and costs.  An
27    action upon the bond is  in  addition  to  any  other  remedy
28    provided by law.  If the person filing the bond complies with
29    its  condition  or if, in the proceedings for judicial review
30    in which the bond is filed, the court determines that no tax,
31    penalty, or interest is due, the bond shall  be  canceled  by
32    the issuer of the bond.
33        If  the  court  finds  in  a  particular  case  that  the
34    plaintiff  cannot  furnish  a satisfactory surety or sureties
 
                            -90-     LRB093 02634 SJM 02644 b
 1    for the kind of bond required in this subsection,  the  court
 2    may  relieve the plaintiff of the obligation of filing a bond
 3    if, upon the timely application of the plaintiff for  a  lien
 4    in  place  of  a  bond  and  accompanying proof, the court is
 5    satisfied that a lien would secure the assessment as well  as
 6    would  a  bond.   Upon that finding, the court shall enter an
 7    order subjecting the plaintiff's real and  personal  property
 8    (including  subsequently  acquired  property) situated in the
 9    county in which the order is entered to a lien  in  favor  of
10    the  Department.  The lien shall be for the amount of the tax
11    and penalty claimed to be due by the Department in its  final
12    assessment  or  revised  final assessment, plus the amount of
13    interest due from that person to the Department at  the  time
14    when  the  Department  issued its final assessment or revised
15    final assessment to that person.   The  lien  shall  continue
16    until  the  court  determines in the proceedings for judicial
17    review that no tax, penalty, or interest is due, or until the
18    plaintiff pays  to  the  Department  the  tax,  penalty,  and
19    interest  secured  by the lien.  In its discretion, the court
20    may impose a lien regardless of the ratio of  the  taxpayer's
21    assets  to  the  final assessment or revised final assessment
22    plus the amount of the interest and penalty.  This subsection
23    does not give the Department a preference over the rights  of
24    a bona fide purchaser, mortgagee, judgment creditor, or other
25    lien  holder  arising  before the entry of the order creating
26    the lien in favor of the Department. "Bona fide", as used  in
27    this  subsection,  does  not  include  a  mortgage of real or
28    personal property or other credit transaction that results in
29    the mortgagee or the holder of the security acting as trustee
30    for unsecured creditors of  the  taxpayer  who  executed  the
31    chattel  or real property mortgage or the document evidencing
32    the credit transaction.  The lien is inferior to the lien  of
33    general  taxes, special assessments, and special taxes levied
34    by a political subdivision of this State.  The  lien  is  not
 
                            -91-     LRB093 02634 SJM 02644 b
 1    effective  against  a  purchaser with respect to an item in a
 2    retailer's stock in trade purchased from the retailer in  the
 3    usual course of the retailer's business.  The lien may not be
 4    enforced  against  the  household  effects,  wearing apparel,
 5    books, or tools or implements of a trade or  profession  kept
 6    for use by any person. The lien is not effective against real
 7    property  unless  and until a certified copy or memorandum of
 8    such order is recorded in the Office of the Recorder of Deeds
 9    for the county or counties in which the property is  located.
10    The  lien  is not effective against real property whose title
11    is registered under the provisions of the  Registered  Titles
12    (Torrens)  Act until the provisions of Section 85 of that Act
13    are complied with.
14        Service upon the Director of  Revenue  or  the  Assistant
15    Director  of Revenue of summons issued in an action to review
16    a final administrative decision of the Department is  service
17    upon  the Department. The Department shall certify the record
18    of its proceedings if the taxpayer pays to it 75¢ per page of
19    testimony taken before the Department and 25¢ per page of all
20    other matters contained in  the  record,  except  that  these
21    charges  may  be waived when the Department is satisfied that
22    the aggrieved party is a poor person who cannot afford to pay
23    the charges.  If payment for the record is not  made  by  the
24    taxpayer  within  30 days after notice from the Department or
25    the Attorney General of the cost,  the  court  in  which  the
26    proceeding  is  pending,  on  motion of the Department, shall
27    dismiss the complaint and (when the  administrative  decision
28    as  to  which  the  action for judicial review was filed is a
29    final assessment or revised  final  assessment)  shall  enter
30    judgment  against the taxpayer and in favor of the Department
31    for the amount of tax and penalty shown by  the  Department's
32    final  assessment or revised final assessment to be due, plus
33    interest as provided for in this Act from the date  when  the
34    liability  upon  which the interest accrued became delinquent
 
                            -92-     LRB093 02634 SJM 02644 b
 1    until the entry of the judgment in the  action  for  judicial
 2    review  under  the  Administrative  Review  Law, and also for
 3    costs.
 4        (c)  The personal liability imposed by this Section shall
 5    survive the dissolution of a partnership,  limited  liability
 6    company,  or  corporation.    No  notice of penalty liability
 7    shall be issued after the expiration of  3  years  after  the
 8    date  all proceedings in court for the review of any final or
 9    revised final assessments issued  against  a  taxpayer  which
10    constitute   the   basis   of  such  penalty  liability  have
11    terminated or the time for the  taking  thereof  has  expired
12    without  such  proceedings  being  instituted  or  after  the
13    expiration  of  3 years after the date a return is filed with
14    the Department by  a  taxpayer  in  cases  where  the  return
15    constitutes  the  basis  of  such  liability.  Interest shall
16    continue to accrue on that portion of the penalty imposed  by
17    this  Section which represents the tax unpaid by the taxpayer
18    at the same rate and in the same amount as  interest  accrues
19    on the tax unpaid by the taxpayer.
20        (d)  In  addition to any other remedy provided for by the
21    laws  of  this  State,  and  provided  that  no  hearing   or
22    proceeding  for  review  is pending, any Section of a tax Act
23    which provides a means for collection of taxes shall  in  the
24    same  manner  and  to the same extent provide a means for the
25    collection of the  penalty  imposed  by  this  Section.   The
26    procedures  for the filing of an action for collection of the
27    penalty imposed by this Section shall be the  same  as  those
28    prescribed  by  a  tax  Act  for  the filing of an action for
29    collection of the tax assessed  under  that  Act.   The  time
30    limitation  period on the Department's right to bring suit to
31    recover the amount  of  such  tax,  or  portion  thereof,  or
32    penalty  or  interest  from  such  person,  or if deceased or
33    incompetent to file a claim thereof against his estate, shall
34    not run during:  (1) any period of time in which the order of
 
                            -93-     LRB093 02634 SJM 02644 b
 1    any Court has the effect  of  enjoining  or  restraining  the
 2    Department  from  bringing  such  suit  or claim against such
 3    person, or (2) any period of time in which the order  of  the
 4    Court   has  the  effect  of  enjoining  or  restraining  the
 5    Department from bringing  suit  or  initiating  other  proper
 6    proceedings  for  the  collection  of  such  amounts from the
 7    taxpayer, or (3) any period of time the person  departs  from
 8    and  remains  out  of the State; but the foregoing provisions
 9    concerning absence from the State shall not apply to any case
10    in which, at the time when a tax or penalty becomes due under
11    this Act, the person  allegedly  liable  therefor  is  not  a
12    resident of this State.
13        (e)  For  the  purposes  of  this  Section,  "officer  or
14    employee   of   any   taxpayer"   includes  a  partner  of  a
15    partnership, a manager  or  member  of  a  limited  liability
16    corporation,  and  a member of a registered limited liability
17    partnership.
18        (f)  A trust tax is  any  tax  for  which  an  amount  is
19    collected  or withheld by a taxpayer from another person, and
20    any tax for which an amount is required to  be  collected  or
21    withheld  by  a  taxpayer  from another person, regardless of
22    whether it is in fact collected or withheld.
23        (g)  The personal liability imposed by this Section is in
24    addition to liability incurred by a partner of a  partnership
25    or  limited liability partnership resulting from the issuance
26    of a notice of tax liability issued  to  the  partnership  or
27    limited liability partnership.
28        (h)  In  addition  to  any  other basis for imposition of
29    liability under this Act including under  subsection  (a)  of
30    this Section, any person who collects, withholds, or receives
31    a  tax,  or  any amount represented to be a tax, from another
32    person holds the amount so collected or withheld  in  special
33    trust  for the benefit of the Department and is liable to the
34    Department for the  amount  so  withheld  or  collected  plus
 
                            -94-     LRB093 02634 SJM 02644 b
 1    accrued interest and penalty on that amount.  For purposes of
 2    this  subsection,  "person" shall have the same definition as
 3    provided in Section 1 of the Retailers' Occupation Tax Act.
 4    (Source: P.A. 90-458, eff. 8-17-97; 91-203, eff. 7-20-99.)

 5        Section  90.   The  Illinois  Public  Accounting  Act  is
 6    amended by changing Section 27 as follows:

 7        (225 ILCS 450/27) (from Ch. 111, par. 5533)
 8        (Section scheduled to be repealed on January 1, 2014)
 9        (Text of Section before amendment by P.A. 92-457)
10        Sec. 27. A public accountant shall not be required by any
11    court  or  by  the  Department  of  Revenue in a non-criminal
12    proceeding before it to divulge information or evidence which
13    has been obtained by him in his confidential  capacity  as  a
14    public  accountant.   This  Section  shall  not  apply to any
15    investigation or hearing undertaken pursuant to this Act.
16        Nothing in this Section  shall  be  construed  to  limit,
17    waive,  or  abrogate  the  scope  or nature of any common law
18    privilege concerning the confidential capacity  of  a  public
19    accountant.
20    (Source: P.A. 83-291.)

21        (Text of Section after amendment by P.A. 92-457)
22        Sec. 27. A licensed certified public accountant shall not
23    be required by any court or by the Department of Revenue in a
24    non-criminal  proceeding  before it to divulge information or
25    evidence which has been obtained by him in  his  confidential
26    capacity  as  a  public  accountant.   This Section shall not
27    apply to any investigation or hearing undertaken pursuant  to
28    this Act.
29        Nothing  in  this  Section  shall  be construed to limit,
30    waive, or abrogate the scope or  nature  of  any  common  law
31    privilege  concerning  the  confidential capacity of a public
32    accountant.
 
                            -95-     LRB093 02634 SJM 02644 b
 1    (Source: P.A. 92-457, eff. 7-1-04.)

 2        Section 95.  No acceleration or delay.   Where  this  Act
 3    makes changes in a statute that is represented in this Act by
 4    text  that  is not yet or no longer in effect (for example, a
 5    Section represented by multiple versions), the  use  of  that
 6    text  does  not  accelerate or delay the taking effect of (i)
 7    the changes made by this Act or (ii) provisions derived  from
 8    any other Public Act.

 9        Section  99.  Effective date.  This Act takes effect upon
10    becoming law.
 
                            -96-     LRB093 02634 SJM 02644 b
 1                                INDEX
 2               Statutes amended in order of appearance
 3    20 ILCS 2520/5            from Ch. 120, par. 2305
 4    20 ILCS 2520/5.5 new
 5    20 ILCS 2520/5.6 new
 6    35 ILCS 5/902             from Ch. 120, par. 9-902
 7    35 ILCS 5/904             from Ch. 120, par. 9-904
 8    35 ILCS 5/917             from Ch. 120, par. 9-917
 9    35 ILCS 5/917.5 new
10    35 ILCS 105/19            from Ch. 120, par. 439.19
11    35 ILCS 105/20            from Ch. 120, par. 439.20
12    35 ILCS 110/17            from Ch. 120, par. 439.47
13    35 ILCS 110/18            from Ch. 120, par. 439.48
14    35 ILCS 115/17            from Ch. 120, par. 439.117
15    35 ILCS 115/18            from Ch. 120, par. 439.118
16    35 ILCS 120/4             from Ch. 120, par. 443
17    35 ILCS 120/5             from Ch. 120, par. 444
18    35 ILCS 120/6a            from Ch. 120, par. 445a
19    35 ILCS 120/6b            from Ch. 120, par. 445b
20    35 ILCS 130/9a            from Ch. 120, par. 453.9a
21    35 ILCS 130/9b            from Ch. 120, par. 453.9b
22    35 ILCS 135/13            from Ch. 120, par. 453.43
23    35 ILCS 135/13a           from Ch. 120, par. 453.43a
24    35 ILCS 145/6             from Ch. 120, par. 481b.36
25    35 ILCS 505/5             from Ch. 120, par. 421
26    35 ILCS 505/5a            from Ch. 120, par. 421a
27    35 ILCS 510/2             from Ch. 120, par. 481b.2
28    35 ILCS 520/16            from Ch. 120, par. 2166
29    35 ILCS 610/6             from Ch. 120, par. 467.6
30    35 ILCS 615/6             from Ch. 120, par. 467.21
31    35 ILCS 620/6             from Ch. 120, par. 473
32    35 ILCS 625/6             from Ch. 120, par. 1416
33    35 ILCS 630/10            from Ch. 120, par. 2010
34    35 ILCS 735/3-3           from Ch. 120, par. 2603-3
 
                            -97-     LRB093 02634 SJM 02644 b
 1    35 ILCS 735/3-7           from Ch. 120, par. 2603-7
 2    225 ILCS 450/27           from Ch. 111, par. 5533