Rep. John E. Bradley

Filed: 3/19/2013

 

 


 

 


 
09800HB0378ham001LRB098 03201 HLH 43310 a

1
AMENDMENT TO HOUSE BILL 378

2    AMENDMENT NO. ______. Amend House Bill 378 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by changing Section
62505-200 as follows:
 
7    (20 ILCS 2505/2505-200)  (was 20 ILCS 2505/39c-1a)
8    Sec. 2505-200. Electronic filing rules.
9    (a) The Department may adopt rules to authorize the
10electronic filing of any return or document required to be
11filed under any Act administered by the Department.
12    (b) The Department may adopt rules to require the
13electronic filing of the income and replacement tax return
14required to be filed under the Illinois Income Tax Act for a
15taxable year by any taxpayer (other than an individual) who is
16required to file its federal income tax return electronically

 

 

09800HB0378ham001- 2 -LRB098 03201 HLH 43310 a

1for the taxable year.
2    (c) In the case of an electronically filed return or other
3document required to be filed with the Department or maintained
4by any taxpayer, these rules may set forth standards that
5provide for acceptance of a signature in a form other than in
6the proper handwriting of the person.
7    (d) The Department may adopt rules to require electronic
8filing of any return or document that is required to be filed
9on or after January 1, 2014 (without regard to extensions)
10under any Act administered by the Department, provided that:
11        (1) no individual taxpayer shall be required to file
12    electronically any return or document required to be filed
13    under the Illinois Income Tax Act except as expressly
14    provided in that Act; and
15        (2) such rules shall require the Department to grant a
16    waiver of the electronic filing requirement for any
17    taxpayer who petitions for a waiver and demonstrates that
18    the taxpayer does not have reasonably convenient ability to
19    comply with the electronic filing requirement. Such
20    waivers shall be for a period not to exceed 2 years, but
21    may be renewed an unlimited number of times for periods not
22    to exceed 2 years each.
23(Source: P.A. 96-520, eff. 8-14-09.)
 
24    Section 10. The Uniform Penalty and Interest Act is amended
25by changing Section 3-8 and by adding Section 3-3.5 as follows:
 

 

 

09800HB0378ham001- 3 -LRB098 03201 HLH 43310 a

1    (35 ILCS 735/3-3.5 new)
2    Sec. 3-3.5. Failure to comply with electronic filing and
3payment requirements.
4    (a) Any person who is required to file electronically any
5information return or any return due under Section 3-1002 of
6the Illinois Vehicle Code, and who fails to file the return
7electronically, shall be subject to a penalty equal to $50 for
8each such failure.
9    (b) Any person who is required to file electronically any
10return (other than an information return) that is required to
11be filed under the Illinois Income Tax Act, and who fails to
12file the return electronically, shall be subject to a penalty
13for each such failure equal to:
14        (1) for each tax return required to be filed under
15    Section 502 of the Illinois Income Tax Act, the greater of
16    $250 or 5% of the amount of tax liability required to be
17    shown on the return, computed without regard to any
18    payments or credits allowable against the liability; and
19        (2) for each tax return required to be filed under
20    Section 704A or Section 711(a-5) of the Illinois Income Tax
21    Act, the greater of $250 or 5% of the amount of tax
22    required to be withheld for the period for which the return
23    is required.
24    (c) Any person who is required to file electronically any
25return (other than information return or return due under

 

 

09800HB0378ham001- 4 -LRB098 03201 HLH 43310 a

1Section 3-1002 of the Illinois Vehicle Code) that is required
2to be filed under any Act administered by the Department (other
3than the Illinois Income Tax Act), and who fails to file the
4return electronically, shall be subject to a penalty for each
5such failure equal to:
6        (1) the amount of any discount allowable under Section
7    9 of the Use Tax Act, Section 9 of the Service Use Tax Act,
8    Section 9 of the Service Occupation Tax Act, or Section 3
9    of the Retailers' Occupation Tax Act with regard to the tax
10    reported on the return, provided that this penalty shall
11    not apply to a taxpayer allowed to file the return
12    annually; plus
13        (2) the greater of $250 or 5% of the amount of tax
14    liability required to be shown on the return, computed
15    without regard to any payments or credits allowable against
16    the tax.
17    (d) Any person required to make any payment of tax to the
18Department electronically who fails to do so shall be subject
19to a penalty for each such failure equal to the lesser of
20$1,000 or 5% of the payment required to be made.
21    (e) For purposes of this Section, an information return is
22any tax return (other than a return under Section 704A of the
23Illinois Income Tax Act) that is required by any tax Act
24administered by the Department to be filed with the Department
25and that does not, by law, require the payment of a tax
26liability.

 

 

09800HB0378ham001- 5 -LRB098 03201 HLH 43310 a

1    (f) If, without regard to this subsection (f), a taxpayer
2would be subject to penalty under both Section 3-4 of this Act
3and subsection (a) of this Section with respect to the same
4information return, only the penalty under Section 3-4 of this
5Act shall apply.
6    If, without regard to this subsection (f), a taxpayer would
7be subject to both a failure to file penalty in Section 3-3 of
8this Act and a penalty under either subsection (b) or (c) of
9this Section, only the failure to file penalty under Section
103-3 of this Act shall apply.
11    If, without regard to this subsection (f), a taxpayer would
12be subject to both a failure to pay penalty under Section 3-3
13of this Act and a penalty under subsection (d) of this Section,
14only the failure to pay penalty under Section 3-3 of this Act
15shall apply.
16    (g) Except as provided in subsection (f) of this Section,
17the penalties imposed under this Section are in addition to all
18other penalties, and shall apply to returns and payments due
19(without regard to extensions) on or after January 1, 2014.
 
20    (35 ILCS 735/3-8)  (from Ch. 120, par. 2603-8)
21    Sec. 3-8. No penalties if reasonable cause exists. The
22penalties imposed under the provisions of Sections 3-3, 3-3.5,
233-4, 3-4.5, 3-5, and 3-7.5 of this Act shall not apply if the
24taxpayer shows that his failure to file a return or pay tax at
25the required time was due to reasonable cause. Reasonable cause

 

 

09800HB0378ham001- 6 -LRB098 03201 HLH 43310 a

1shall be determined in each situation in accordance with the
2rules and regulations promulgated by the Department. A taxpayer
3may protest the imposition of a penalty under Section 3-3,
43-3.5, 3-4, 3-4.5, 3-5, or 3-7.5 on the basis of reasonable
5cause without protesting the underlying tax liability.
6(Source: P.A. 91-803, eff. 1-1-01.)".