97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3913

 

Introduced 12/11/2011, by Rep. Fred Crespo

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 2505/2505-430 new
35 ILCS 5/917  from Ch. 120, par. 9-917

    Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that the Department must prepare an annual report disclosing the identity of each taxpayer who (i) received a research and development credit under the Illinois Income Tax Act during any taxable year ending within the previous 10 calendar years or (ii) carried forward unused research and development credit amounts to any of those taxable years. Contains certain restrictions and prohibitions. Provides that the report must be submitted to the Governor and the General Assembly no later than June 1 of each calendar year and must be posted on the Department's website. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3913LRB097 14901 HLH 59932 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by adding Section
62505-430 as follows:
 
7    (20 ILCS 2505/2505-430 new)
8    Sec. 2505-430. Research and development credit; report.
9The Department must prepare an annual report disclosing the
10identity of each taxpayer who received a research and
11development credit under subsection (k) of Section 201 of the
12Illinois Income Tax Act during any taxable year ending within
13the previous 10 calendar years, including taxpayers who carried
14forward unused credit amounts to those taxable years. This
15report must be submitted to the Governor and the General
16Assembly no later than June 1 of each calendar year and must be
17posted on the Department's website. Nothing in this Section
18requires the Department to disclose a taxpayer's social
19security number, tax identification number, address, or any
20other information that may not lawfully be disclosed. The
21Department is not required to disclose the amount of the credit
22and may not disclose any information identified by the taxpayer
23as a trade secret.
 

 

 

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1    Section 10. The Illinois Income Tax Act is amended by
2changing Section 917 as follows:
 
3    (35 ILCS 5/917)  (from Ch. 120, par. 9-917)
4    Sec. 917. Confidentiality and information sharing.
5    (a) Confidentiality. Except as provided in this Section,
6all information received by the Department from returns filed
7under this Act, or from any investigation conducted under the
8provisions of this Act, shall be confidential, except for
9official purposes within the Department or pursuant to official
10procedures for collection of any State tax or pursuant to an
11investigation or audit by the Illinois State Scholarship
12Commission of a delinquent student loan or monetary award or
13enforcement of any civil or criminal penalty or sanction
14imposed by this Act or by another statute imposing a State tax,
15and any person who divulges any such information in any manner,
16except for such purposes and pursuant to order of the Director
17or in accordance with a proper judicial order, shall be guilty
18of a Class A misdemeanor. However, the provisions of this
19paragraph are not applicable to information furnished to (i)
20the Department of Healthcare and Family Services (formerly
21Department of Public Aid), State's Attorneys, and the Attorney
22General for child support enforcement purposes and (ii) a
23licensed attorney representing the taxpayer where an appeal or
24a protest has been filed on behalf of the taxpayer. If it is

 

 

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1necessary to file information obtained pursuant to this Act in
2a child support enforcement proceeding, the information shall
3be filed under seal.
4    (b) Public information. Nothing contained in this Act shall
5prevent the Director from publishing or making available to the
6public the names and addresses of persons filing returns under
7this Act, or from publishing or making available reasonable
8statistics concerning the operation of the tax wherein the
9contents of returns are grouped into aggregates in such a way
10that the information contained in any individual return shall
11not be disclosed.
12    (c) Governmental agencies. The Director may make available
13to the Secretary of the Treasury of the United States or his
14delegate, or the proper officer or his delegate of any other
15state imposing a tax upon or measured by income, for
16exclusively official purposes, information received by the
17Department in the administration of this Act, but such
18permission shall be granted only if the United States or such
19other state, as the case may be, grants the Department
20substantially similar privileges. The Director may exchange
21information with the Department of Healthcare and Family
22Services and the Department of Human Services (acting as
23successor to the Department of Public Aid under the Department
24of Human Services Act) for the purpose of verifying sources and
25amounts of income and for other purposes directly connected
26with the administration of this Act, the Illinois Public Aid

 

 

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1Code, and any other health benefit program administered by the
2State. The Director may exchange information with the Director
3of the Department of Employment Security for the purpose of
4verifying sources and amounts of income and for other purposes
5directly connected with the administration of this Act and Acts
6administered by the Department of Employment Security. The
7Director may make available to the Illinois Workers'
8Compensation Commission information regarding employers for
9the purpose of verifying the insurance coverage required under
10the Workers' Compensation Act and Workers' Occupational
11Diseases Act. The Director may exchange information with the
12Illinois Department on Aging for the purpose of verifying
13sources and amounts of income for purposes directly related to
14confirming eligibility for participation in the programs of
15benefits authorized by the Senior Citizens and Disabled Persons
16Property Tax Relief and Pharmaceutical Assistance Act.
17    The Director may make available to any State agency,
18including the Illinois Supreme Court, which licenses persons to
19engage in any occupation, information that a person licensed by
20such agency has failed to file returns under this Act or pay
21the tax, penalty and interest shown therein, or has failed to
22pay any final assessment of tax, penalty or interest due under
23this Act. The Director may make available to any State agency,
24including the Illinois Supreme Court, information regarding
25whether a bidder, contractor, or an affiliate of a bidder or
26contractor has failed to file returns under this Act or pay the

 

 

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1tax, penalty, and interest shown therein, or has failed to pay
2any final assessment of tax, penalty, or interest due under
3this Act, for the limited purpose of enforcing bidder and
4contractor certifications. For purposes of this Section, the
5term "affiliate" means any entity that (1) directly,
6indirectly, or constructively controls another entity, (2) is
7directly, indirectly, or constructively controlled by another
8entity, or (3) is subject to the control of a common entity.
9For purposes of this subsection (a), an entity controls another
10entity if it owns, directly or individually, more than 10% of
11the voting securities of that entity. As used in this
12subsection (a), the term "voting security" means a security
13that (1) confers upon the holder the right to vote for the
14election of members of the board of directors or similar
15governing body of the business or (2) is convertible into, or
16entitles the holder to receive upon its exercise, a security
17that confers such a right to vote. A general partnership
18interest is a voting security.
19    The Director may make available to any State agency,
20including the Illinois Supreme Court, units of local
21government, and school districts, information regarding
22whether a bidder or contractor is an affiliate of a person who
23is not collecting and remitting Illinois Use taxes, for the
24limited purpose of enforcing bidder and contractor
25certifications.
26    The Director may also make available to the Secretary of

 

 

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1State information that a corporation which has been issued a
2certificate of incorporation by the Secretary of State has
3failed to file returns under this Act or pay the tax, penalty
4and interest shown therein, or has failed to pay any final
5assessment of tax, penalty or interest due under this Act. An
6assessment is final when all proceedings in court for review of
7such assessment have terminated or the time for the taking
8thereof has expired without such proceedings being instituted.
9For taxable years ending on or after December 31, 1987, the
10Director may make available to the Director or principal
11officer of any Department of the State of Illinois, information
12that a person employed by such Department has failed to file
13returns under this Act or pay the tax, penalty and interest
14shown therein. For purposes of this paragraph, the word
15"Department" shall have the same meaning as provided in Section
163 of the State Employees Group Insurance Act of 1971.
17    The Director may make available to the General Assembly and
18the Governor information pertaining to the identity of
19taxpayers who receive a research and development credit, as
20provided in Section 2505-430 of the Department of Revenue Law
21of the Civil Administrative Code of Illinois, and the
22Department may post that information on its website.
23    (d) The Director shall make available for public inspection
24in the Department's principal office and for publication, at
25cost, administrative decisions issued on or after January 1,
261995. These decisions are to be made available in a manner so

 

 

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1that the following taxpayer information is not disclosed:
2        (1) The names, addresses, and identification numbers
3    of the taxpayer, related entities, and employees.
4        (2) At the sole discretion of the Director, trade
5    secrets or other confidential information identified as
6    such by the taxpayer, no later than 30 days after receipt
7    of an administrative decision, by such means as the
8    Department shall provide by rule.
9    The Director shall determine the appropriate extent of the
10deletions allowed in paragraph (2). In the event the taxpayer
11does not submit deletions, the Director shall make only the
12deletions specified in paragraph (1).
13    The Director shall make available for public inspection and
14publication an administrative decision within 180 days after
15the issuance of the administrative decision. The term
16"administrative decision" has the same meaning as defined in
17Section 3-101 of Article III of the Code of Civil Procedure.
18Costs collected under this Section shall be paid into the Tax
19Compliance and Administration Fund.
20    (e) Nothing contained in this Act shall prevent the
21Director from divulging information to any person pursuant to a
22request or authorization made by the taxpayer, by an authorized
23representative of the taxpayer, or, in the case of information
24related to a joint return, by the spouse filing the joint
25return with the taxpayer.
26(Source: P.A. 95-331, eff. 8-21-07; 96-1501, eff. 1-25-11.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.