Sen. John M. Sullivan

Filed: 4/23/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2194

2    AMENDMENT NO. ______. Amend Senate Bill 2194, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Department of Revenue Law of the Civil
6Administrative Code of Illinois is amended by changing Section
72505-200 as follows:
 
8    (20 ILCS 2505/2505-200)  (was 20 ILCS 2505/39c-1a)
9    Sec. 2505-200. Electronic filing rules.
10    (a) The Department may adopt rules to authorize the
11electronic filing of any return or document required to be
12filed under any Act administered by the Department.
13    (b) The Department may adopt rules to require the
14electronic filing of the income and replacement tax return
15required to be filed under the Illinois Income Tax Act for a
16taxable year by any taxpayer (other than an individual) who is

 

 

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1required to file its federal income tax return electronically
2for the taxable year.
3    (c) In the case of an electronically filed return or other
4document required to be filed with the Department or maintained
5by any taxpayer, these rules may set forth standards that
6provide for acceptance of a signature in a form other than in
7the proper handwriting of the person.
8    (d) The Department may adopt rules to require electronic
9filing of any return or document that is required to be filed
10on or after January 1, 2014 (without regard to extensions)
11under any Act administered by the Department, provided that:
12        (1) no individual taxpayer shall be required to file
13    electronically any return or document required to be filed
14    under the Illinois Income Tax Act except as expressly
15    provided in that Act;
16        (2) no individual taxpayer shall be required to file
17    electronically any return or document required to be filed
18    under the Watercraft Use Tax Act, the Aircraft Use Tax Act,
19    Section 3-1002 of the Illinois Vehicle Code, or Section 10
20    of the Use Tax Act; and
21        (3) those rules shall require the Department to grant a
22    waiver of the electronic filing requirement for any
23    taxpayer who demonstrates lack of access to the Internet;
24    those waivers shall be valid for a period not to exceed 2
25    years, but may be renewed an unlimited number of times for
26    periods not to exceed 2 years for each renewal.

 

 

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1(Source: P.A. 96-520, eff. 8-14-09.)
 
2    Section 10. The Uniform Penalty and Interest Act is amended
3by changing Section 3-8 and by adding Section 3-3.5 as follows:
 
4    (35 ILCS 735/3-3.5 new)
5    Sec. 3-3.5. Failure to comply with electronic filing and
6payment requirements.
7    (a) Any person who is required by the Department to file
8electronically any information return and who fails to file the
9return electronically, shall be subject to a penalty equal to
10$25 for each such failure.
11    (b) Any person who is required to file electronically any
12return (other than an information return) that is required to
13be filed under the Illinois Income Tax Act, and who fails to
14file the return electronically, shall be subject to a penalty
15for each such failure equal to:
16        (1) until January 1, 2017, for each tax return required
17    to be filed under Section 502 of the Illinois Income Tax
18    Act, the greater of $100 or 2% of the amount of tax
19    liability required to be shown on the return, computed
20    without regard to any payments or credits allowable against
21    the liability, and, on and after January 1, 2017, for each
22    tax return required to be filed under Section 502 of the
23    Illinois Income Tax Act, the greater of $200 or 4% of the
24    amount of tax liability required to be shown on the return,

 

 

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1    computed without regard to any payments or credits
2    allowable against the liability; and
3        (2) until January 1, 2017, for each tax return required
4    to be filed under Section 704A or subsection (a-5) of
5    Section 711 of the Illinois Income Tax Act, the greater of
6    $100 or 2% of the amount of tax required to be withheld for
7    the period for which the return is required, and, on and
8    after January 1, 2017, $200 or 4% of the amount of tax
9    required to be withheld for the period for which the return
10    is required.
11    (c) Any person who is required to file electronically any
12return (other than an information return) that is required to
13be filed under any Act administered by the Department (other
14than the Illinois Income Tax Act), and who fails to file the
15return electronically, shall be subject to a penalty for each
16such failure equal to:
17        (1) the amount of any discount allowable for keeping
18    records, preparing and filing returns, and remitting tax
19    with regard to the tax reported on the return, provided
20    that this penalty shall not apply to a taxpayer allowed to
21    file the return annually; plus
22        (2) until January 1, 2017, the greater of $100 or 2% of
23    the amount of tax liability required to be shown on the
24    return, computed without regard to any payments or credits
25    allowable against the tax, and on and after January 1,
26    2017, $200 or 4% of the amount of tax liability required to

 

 

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1    be shown on the return, computed without regard to any
2    payments or credits allowable against the tax.
3    (d) Any person required to make any payment of tax to the
4Department electronically under any Act administered by the
5Department who fails to make the payment electronically shall
6be subject to a penalty for each such failure equal to the
7greater of $30 or 3% of the payment required to be made. This
8subsection (d) applies only if the amount of tax due is greater
9than $1,000.
10    (e) For purposes of this Section, an information return is
11any tax return (other than a return under Section 704A of the
12Illinois Income Tax Act) that is required by any tax Act
13administered by the Department to be filed with the Department
14and that does not, by law, require the payment of a tax
15liability.
16    (f) If, without regard to this subsection (f), a taxpayer
17would be subject to penalty under both Section 3-4 of this Act
18and subsection (a) of this Section with respect to the same
19information return, only the penalty under Section 3-4 of this
20Act shall apply.
21    If, without regard to this subsection (f), a taxpayer would
22be subject to both a failure to file penalty in Section 3-3 of
23this Act and a penalty under either subsection (b) or (c) of
24this Section, only the failure to file penalty under Section
253-3 of this Act shall apply.
26    If, without regard to this subsection (f), a taxpayer would

 

 

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1be subject to both a failure to pay penalty under Section 3-3
2of his Act and a penalty under subsection (d) of this Section,
3only the failure to pay penalty under Section 3-3 of this Act
4shall apply.
5    (g) Except as provided in subsection (f) of this Section,
6the penalties imposed under this Section are in addition to all
7other penalties, and shall apply to returns and payments due
8(without regard to extensions) on or after January 1, 2015.
 
9    (35 ILCS 735/3-8)  (from Ch. 120, par. 2603-8)
10    Sec. 3-8. No penalties if reasonable cause exists. The
11penalties imposed under the provisions of Sections 3-3, 3-3.5,
123-4, 3-4.5 3-5, and 3-7.5 of this Act shall not apply if the
13taxpayer shows that his failure to file a return or pay tax at
14the required time was due to reasonable cause. Reasonable cause
15shall be determined in each situation in accordance with the
16rules and regulations promulgated by the Department. A taxpayer
17may protest the imposition of a penalty under Section 3-3,
183-3.5, 3-4, 3-4.5, 3-5, or 3-7.5 on the basis of reasonable
19cause without protesting the underlying tax liability.
20(Source: P.A. 91-803, eff. 1-1-01.)".