Full Text of SB2194 98th General Assembly
SB2194eng 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Department of Revenue Law of the
Civil | 5 | | Administrative Code of Illinois is amended by changing Section | 6 | | 2505-200 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 | 10 | | electronic filing of any return or document required to
be | 11 | | filed under any Act administered by the Department. | 12 | | (b) The Department may adopt rules to require the | 13 | | electronic filing of the income and replacement tax return | 14 | | required to be filed under the Illinois Income Tax Act for a | 15 | | taxable year by any taxpayer (other than an individual) who is | 16 | | required to file its federal income tax return electronically | 17 | | for the taxable year. | 18 | | (c)
In the case of an electronically filed return or other | 19 | | document required to
be filed with the Department or maintained | 20 | | by any taxpayer, these rules may set
forth standards that | 21 | | provide for acceptance of a signature in a form other than
in | 22 | | the proper handwriting of the person.
| 23 | | (d) The Department may adopt rules to require electronic |
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| 1 | | filing of any return or document that is required to be filed | 2 | | on or after January 1, 2014 (without regard to extensions) | 3 | | under any Act administered by the Department, provided that: | 4 | | (1) no individual taxpayer shall be required to file | 5 | | electronically any return or document required to be filed | 6 | | under the Illinois Income Tax Act except as expressly | 7 | | provided in that Act; | 8 | | (2) no individual taxpayer shall be required to file | 9 | | electronically any return or document required to be filed | 10 | | under the Watercraft Use Tax Act, the Aircraft Use Tax Act, | 11 | | Section 3-1002 of the Illinois Vehicle Code, or Section 10 | 12 | | of the Use Tax Act; and | 13 | | (3) those rules shall require the Department to grant a | 14 | | waiver of the electronic filing requirement for any | 15 | | taxpayer who demonstrates lack of access to the Internet; | 16 | | those waivers shall be valid for a period not to exceed 2 | 17 | | years, but may be renewed an unlimited number of times for | 18 | | periods not to exceed 2 years for each renewal. | 19 | | (Source: P.A. 96-520, eff. 8-14-09.)
| 20 | | Section 10. The Uniform Penalty and Interest Act is amended | 21 | | by changing Section 3-8 and by adding Section 3-3.5 as follows: | 22 | | (35 ILCS 735/3-3.5 new) | 23 | | Sec. 3-3.5. Failure to comply with electronic filing and | 24 | | payment requirements. |
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| 1 | | (a) Any person who is required by the Department to file | 2 | | electronically any information return and who fails to file the | 3 | | return electronically shall be subject to a penalty equal to | 4 | | $25 for each such failure. | 5 | | (b) Any person who is required to file electronically any | 6 | | return (other than an information return) that is required to | 7 | | be filed under the Illinois Income Tax Act and who fails to | 8 | | file the return electronically shall be subject to a penalty | 9 | | for each such failure equal to: | 10 | | (1) until January 1, 2017, for each tax return required | 11 | | to be filed under Section 502 of the Illinois Income Tax | 12 | | Act, the greater of $100 or 2% of the amount of tax | 13 | | liability required to be shown on the return, computed | 14 | | without regard to any payments or credits allowable against | 15 | | the liability, and, on and after January 1, 2017, for each | 16 | | tax return required to be filed under Section 502 of the | 17 | | Illinois Income Tax Act, the greater of $200 or 4% of the | 18 | | amount of tax liability required to be shown on the return, | 19 | | computed without regard to any payments or credits | 20 | | allowable against the liability; and | 21 | | (2) until January 1, 2017, for each tax return required | 22 | | to be filed under Section 704A or subsection (a-5) of | 23 | | Section 711 of the Illinois Income Tax Act, the greater of | 24 | | $100 or 2% of the amount of tax required to be withheld for | 25 | | the period for which the return is required, and, on and | 26 | | after January 1, 2017, $200 or 4% of the amount of tax |
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| 1 | | required to be withheld for the period for which the return | 2 | | is required. | 3 | | (c) Any person who is required to file electronically any | 4 | | return (other than an information return) that is required to | 5 | | be filed under any Act administered by the Department (other | 6 | | than the Illinois Income Tax Act) and who fails to file the | 7 | | return electronically shall be subject to a penalty for each | 8 | | such failure equal to: | 9 | | (1) the amount of any discount allowable for keeping | 10 | | records, preparing and filing returns, and remitting tax | 11 | | with regard to the tax reported on the return, provided | 12 | | that this penalty shall not apply to a taxpayer allowed to | 13 | | file the return annually; plus | 14 | | (2) until January 1, 2017, the greater of $100 or 2% of | 15 | | the amount of tax liability required to be shown on the | 16 | | return, computed without regard to any payments or credits | 17 | | allowable against the tax, and on and after January 1, | 18 | | 2017, $200 or 4% of the amount of tax liability required to | 19 | | be shown on the return, computed without regard to any | 20 | | payments or credits allowable against the tax. | 21 | | (d) Any person required to make any payment of tax to the | 22 | | Department electronically under any Act administered by the | 23 | | Department who fails to make the payment electronically shall | 24 | | be subject to a penalty for each such failure equal to the | 25 | | greater of $30 or 3% of the payment required to be made. This | 26 | | subsection (d) applies only if the payment required is greater |
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| 1 | | than $1,000. | 2 | | (e) For purposes of this Section, an information return is | 3 | | any tax return (other than a return under Section 704A of the | 4 | | Illinois Income Tax Act) that is required by any tax Act | 5 | | administered by the Department to be filed with the Department | 6 | | and that does not, by law, require the payment of a tax | 7 | | liability. | 8 | | (f) If, without regard to this subsection (f), a taxpayer | 9 | | would be subject to penalty under both Section 3-4 of this Act | 10 | | and subsection (a) of this Section with respect to the same | 11 | | information return, only the penalty under Section 3-4 of this | 12 | | Act shall apply. | 13 | | If, without regard to this subsection (f), a taxpayer would | 14 | | be subject to both a failure to file penalty in Section 3-3 of | 15 | | this Act and a penalty under either subsection (b) or (c) of | 16 | | this Section, only the failure to file penalty under Section | 17 | | 3-3 of this Act shall apply. | 18 | | If, without regard to this subsection (f), a taxpayer would | 19 | | be subject to both a failure to pay penalty under Section 3-3 | 20 | | of this Act and a penalty under subsection (d) of this Section, | 21 | | only the failure to pay penalty under Section 3-3 of this Act | 22 | | shall apply. | 23 | | (g) Except as provided in subsection (f) of this Section, | 24 | | the penalties imposed under this Section are in addition to all | 25 | | other penalties and shall apply to returns and payments due | 26 | | (without regard to extensions) on or after January 1, 2015.
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| 1 | | (35 ILCS 735/3-8) (from Ch. 120, par. 2603-8)
| 2 | | Sec. 3-8. No penalties if reasonable cause exists. The | 3 | | penalties imposed
under the provisions of Sections 3-3, 3-3.5, | 4 | | 3-4, 3-4.5, 3-5, and 3-7.5
of this Act shall not apply if the | 5 | | taxpayer shows that his failure to file a
return or pay tax at | 6 | | the
required time was due to reasonable cause. Reasonable cause | 7 | | shall be
determined in each situation in accordance with the | 8 | | rules and regulations
promulgated by the Department. A taxpayer | 9 | | may protest the imposition of a
penalty under Section 3-3, | 10 | | 3-3.5, 3-4, 3-4.5, 3-5, or 3-7.5 on the basis
of reasonable | 11 | | cause without
protesting the underlying tax liability.
| 12 | | (Source: P.A. 91-803, eff. 1-1-01.)
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