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90_SB1061
35 ILCS 735/3-4 from Ch. 120, par. 2603-4
Amends the Uniform Penalty and Interest Act. Makes
technical changes in the Section concerning the penalty for
failure to file correct information returns.
LRB9002567KDcc
LRB9002567KDcc
1 AN ACT to amend the Uniform Penalty and Interest Act by
2 changing Section 3-4.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Uniform Penalty and Interest Act is
6 amended by changing Section 3-4 as follows:
7 (35 ILCS 735/3-4) (from Ch. 120, par. 2603-4)
8 Sec. 3-4. Penalty for failure to file correct
9 information returns.
10 (a) Failure to file correct information returns -
11 imposition of penalty.
12 (1) In general. Unless otherwise provided in a tax
13 Act, in the case of a failure described in paragraph (2)
14 of this subsection (a) by any person with respect to an
15 information return, that person shall pay a penalty of $5
16 for each return or statement with respect to which the
17 failure occurs, but the total amount imposed on that
18 person for all such failures during any calendar year
19 shall not exceed $25,000.
20 (2) Failures subject to penalty. The following
21 failures are subject to the penalty imposed in paragraph
22 (1) of this subsection (a):
23 (A) any failure to file an information return
24 with the Department on or before the required filing
25 date, or
26 (B) any failure to include all of the
27 information required to be shown on the return or
28 the inclusion of incorrect information.
29 (b) Reduction where correction in specified period.
30 (1) Correction within 60 days. If any failure
31 described in paragraph (2) of subsection (a) (2) is
-2- LRB9002567KDcc
1 corrected within 60 days after the required filing date:
2 (A) the penalty imposed by subsection (a)
3 shall be reduced by 50%; and
4 (B) the total amount imposed on the person for
5 all such failures during any calendar year which are
6 so corrected shall not exceed 50% of the maximum
7 prescribed in paragraph (1) of subsection (a) (1).
8 (c) Information return defined. An information return is
9 any tax return required by a tax Act to be filed with the
10 Department that does not, by law, require the payment of a
11 tax liability.
12 (Source: P.A. 87-205.)