State of Illinois
91st General Assembly
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91_HB2694

 
                                               LRB9102214PTpk

 1        AN ACT concerning taxes, amending named Acts.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Taxpayers' Bill of Rights Act is  amended
 5    by  changing  Section  5  and  adding Sections 5.5 and 5.6 as
 6    follows:

 7        (20 ILCS 2520/5) (from Ch. 120, par. 2305)
 8        Sec. 5.  Taxpayer's suits.  Taxpayers have the  right  to
 9    sue   the  Department  of  Revenue  if  the  such  Department
10    negligently intentionally or recklessly disregards  tax  laws
11    or regulations in collecting taxes.  The maximum recovery for
12    damages  in  such  a suit shall be $100,000.  If a taxpayer's
13    suit is determined by the court to be frivolous the court may
14    impose a penalty on the taxpayer not to exceed $10,000 to  be
15    collected as a tax.
16    (Source: P.A. 86-176; 86-189.)

17        (20 ILCS 2520/5.5 new)
18        Sec. 5.5.  Burden of proof.
19        (a) Notwithstanding any other law to the contrary, in the
20    case  of a taxpayer receiving a protestable notice, a bill, a
21    claim denial, or a reduction of  refund  regarding  any  tax,
22    until  proven  otherwise by the Department in the appropriate
23    proceeding, the taxpayer's position shall be presumed  to  be
24    the  correct  one  and  the  burden  of proof shall be on the
25    Department to prove otherwise.
26        (b)  The provisions of subsection (a) apply only  if  (i)
27    the taxpayer asserts a reasonable dispute with respect to the
28    issue  and  (ii)  the  taxpayer has fully cooperated with the
29    Department with respect to the  issue,  including  providing,
30    within  a reasonable period of time, access to and inspection
 
                            -2-                LRB9102214PTpk
 1    of all  witnesses,  information,  and  documents  within  the
 2    control  of  the  taxpayer,  as  reasonably  requested by the
 3    Department.
 4        (c)  The Department shall adopt rules  to  implement  the
 5    provisions of this Section.

 6        (20 ILCS 2520/5.6 new)
 7        Sec.   5.6.  Privileged  communications;  accountant  and
 8    client.   In   any   non-criminal   proceeding   before   the
 9    Department, the taxpayer shall be entitled to the same common
10    law protections of confidentiality with respect to tax advice
11    furnished  by  a  certified  public  accountant  or  a public
12    accountant licensed under the Illinois Public Accounting  Act
13    as  the  taxpayer  would  have  if  the  accountant  were  an
14    attorney.

15        Section  10.  The  Illinois  Income Tax Act is amended by
16    changing Sections 902,  904, and 917 and adding Section 917.5
17    as follows:

18        (35 ILCS 5/902) (from Ch. 120, par. 9-902)
19        Sec. 902.  Notice and Demand. (a) In general.  Except  as
20    provided  in  subsection  (b)  the Director shall, as soon as
21    practicable after an amount payable under this Act is  deemed
22    assessed  (as  provided  in Section 903), give notice to each
23    person liable for any  unpaid  portion  of  such  assessment,
24    stating  the  amount unpaid and demanding payment thereof. In
25    the case of tax deemed assessed with the filing of a  return,
26    the  Director  shall  give notice no later than 3 years after
27    the date the return was filed.  Upon receipt  of  any  notice
28    and  demand  there shall be paid at the place and time stated
29    in such notice the amount stated in such notice. Such  notice
30    shall  be  left at the dwelling or usual place of business of
31    such person or shall be sent by mail  to  the  person's  last
 
                            -3-                LRB9102214PTpk
 1    known address.
 2        (b)  Judicial  review. In the case of a deficiency deemed
 3    assessed under Section 903 (a) (2)  after  the  filing  of  a
 4    protest,  notice and demand shall not be made with respect to
 5    such assessment until all proceedings in court for the review
 6    of such assessment have terminated or the time for the taking
 7    thereof  has   expired   without   such   proceedings   being
 8    instituted.
 9        (c)  Action  for  recovery of taxes. At any time that the
10    Department  might  commence  proceedings  for  a  levy  under
11    Section 1109, regardless of whether  a  notice  of  lien  was
12    filed  under  the provisions of Section 1103, it may bring an
13    action in any  court  of  competent  jurisdiction  within  or
14    without this State in the name of the people of this State to
15    recover  the  amount of any taxes, penalties and interest due
16    and unpaid under this Act. In such action, the certificate of
17    the Department showing the amount of the delinquency shall be
18    prima facie evidence of the correctness of such  amount,  its
19    assessment  and  of the compliance by the Department with all
20    the provisions of this Act.
21        (d)  Sales or  transfers  outside  the  usual  course  of
22    business-Report-Payment   of  Tax  -  Rights  and  duties  of
23    purchaser or transferee - penalty.  If any taxpayer,  outside
24    the  usual  course  of  his  business, sells or transfers the
25    major part of any one or more of (A) the stock of goods which
26    he is  engaged  in  the  business  of  selling,  or  (B)  the
27    furniture or fixtures, or (C) the machinery and equipment, or
28    (D) the real property, of any business that is subject to the
29    provisions  of  this Act, the purchaser or transferee of such
30    assets shall, no  later  than  10  days  after  the  sale  or
31    transfer,  file  a  notice  of  sale  or transfer of business
32    assets with the Chicago office of the  Department  disclosing
33    the  name  and  address of the seller or transferor, the name
34    and address of the purchaser or transferee, the date  of  the
 
                            -4-                LRB9102214PTpk
 1    sale  or transfer, a copy of the sales contract and financing
 2    agreements which shall include a description of the  property
 3    sold  or  transferred,  the amount of the purchase price or a
 4    statement of other consideration for the  sale  or  transfer,
 5    and  the  terms  for  payment of the purchase price, and such
 6    other information as the Department may  reasonably  require.
 7    If  the  purchaser  or  transferee  fails  to  file the above
 8    described notice of  sale  with  the  Department  within  the
 9    prescribed   time,  the  purchaser  or  transferee  shall  be
10    personally liable to  the  Department  for  the  amount  owed
11    hereunder  by  the seller or transferor but unpaid, up to the
12    amount of the reasonable value of the  property  acquired  by
13    the  purchaser  or  transferee.   The purchaser or transferee
14    shall pay the Department the amount of  tax,  penalties,  and
15    interest  owed by the seller or transferor under this Act, to
16    the  extent  they  have  not  been  paid  by  the  seller  or
17    transferor.  The seller or transferor, or  the  purchaser  or
18    transferee,  at  least 10 days before the date of the sale or
19    transfer, may notify the Department of the intended  sale  or
20    transfer  and  request the Department to make a determination
21    as to whether the seller or transferor owes any tax,  penalty
22    or  interest  due  under this Act.  The Department shall take
23    such steps as may be appropriate to comply with such request.
24        Any order issued  by  the  Department  pursuant  to  this
25    Section  to  withhold from the purchase price shall be issued
26    within 10 days after the Department receives notification  of
27    a  sale  as  provided  in  this  Section.  The  purchaser  or
28    transferee  shall withhold such portion of the purchase price
29    as may be directed by the Department, but  not  to  exceed  a
30    minimum  amount varying by type of business, as determined by
31    the  Department  pursuant  to  regulations,  plus  twice  the
32    outstanding  unpaid  liabilities  and   twice   the   average
33    liability  of  preceding  filings times the number of unfiled
34    returns which were not filed when due, to cover the amount of
 
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 1    all tax, penalty, and interest due and unpaid by  the  seller
 2    or  transferor  under this Act or, if the payment of money or
 3    property is not involved, shall withhold the  performance  of
 4    the condition that constitutes the consideration for the sale
 5    or  transfer.    Within 60 days after issuance of the initial
 6    order to  withhold,  the  Department  shall  provide  written
 7    notice to the purchaser or transferee of the actual amount of
 8    all taxes, penalties and interest then due and whether or not
 9    additional amounts may become due as a result of unpaid taxes
10    required  to  be  withheld by an employer, returns which were
11    not filed  when  due,  pending  assessments  and  audits  not
12    completed.   The  purchaser  or  transferee shall continue to
13    withhold the amount directed to be withheld  by  the  initial
14    order  or  such  lesser  amount  as is specified by the final
15    withholding order or  to  withhold  the  performance  of  the
16    condition which constitutes the consideration for the sale or
17    transfer  until the purchaser or transferee receives from the
18    Department a certificate showing that no unpaid tax,  penalty
19    or  interest  is due from the seller or transferor under this
20    Act.
21        The purchaser or transferee is relieved of  any  duty  to
22    continue  to  withhold  from  the  purchase  price and of any
23    liability for tax, penalty, or interest  due  hereunder  from
24    the  seller  or  transferor if the Department fails to notify
25    the purchaser or transferee in the manner provided herein  of
26    the  amount  to  be withheld within 10 days after the sale or
27    transfer has been reported to the  Department  or  within  60
28    days  after issuance of the initial order to withhold, as the
29    case may be. The Department shall have the right to determine
30    amounts claimed on an estimated basis to  allow  for  periods
31    for   which   returns   were  not  filed  when  due,  pending
32    assessments and audits not completed, however  the  purchaser
33    or  transferee shall be personally liable only for the actual
34    amount due when determined.
 
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 1        If the seller or transferor has failed to  pay  the  tax,
 2    penalty,   and  interest  due  from  him  hereunder  and  the
 3    Department makes timely claim therefor against the  purchaser
 4    or  transferee as hereinabove provided, then the purchaser or
 5    transferee shall pay to the Department the amount so withheld
 6    from the purchase price.   If  the  purchaser  or  transferee
 7    fails  to  comply  with the requirements of this Section, the
 8    purchaser or transferee shall be  personally  liable  to  the
 9    Department  for  the  amount  owed hereunder by the seller or
10    transferor up to the amount of the reasonable  value  of  the
11    property acquired by the purchaser or transferee.
12        Any  person  who  shall  acquire  any  property or rights
13    thereto which, at the time of such acquisition, is subject to
14    a valid lien in favor of the Department, shall be  personally
15    liable  to  the  Department  for a sum equal to the amount of
16    taxes, penalties and interests, secured by such lien, but not
17    to exceed the reasonable value of such property  acquired  by
18    him.
19    (Source: P.A. 86-923; 86-953.)

20        (35 ILCS 5/904) (from Ch. 120, par. 9-904)
21        Sec. 904.  Deficiencies and Overpayments.
22        (a)  Examination of return.  As soon as practicable after
23    a  return  is  filed,  the  Department  shall  examine  it to
24    determine the correct amount of tax. If the Department  finds
25    that  the  amount of tax shown on the return is less than the
26    correct amount, it shall issue a notice of deficiency to  the
27    taxpayer  which  shall  set  forth  the  amount  of  tax  and
28    penalties  proposed  to  be assessed. If the Department finds
29    that the tax paid is more than the correct amount,  it  shall
30    credit or refund the overpayment as provided by Section 909.
31    The findings of the Department under this subsection shall be
32    prima  facie correct and shall be prima facie evidence of the
33    correctness of the amount of tax and penalties due.
 
                            -7-                LRB9102214PTpk
 1        (b)  No return filed.  If the taxpayer fails  to  file  a
 2    tax  return, the Department shall determine the amount of tax
 3    due according to its best  judgment  and  information,  which
 4    amount  so  fixed  by  the  Department  shall  be prima facie
 5    correct and shall be prima facie evidence of the  correctness
 6    of the amount of tax due. The Department shall issue a notice
 7    of  deficiency  to  the  taxpayer  which  shall set forth the
 8    amount of tax and penalties proposed to be assessed.
 9        (c)  Notice of deficiency.  A notice of deficiency issued
10    under this Act shall set forth the adjustments giving rise to
11    the proposed assessment and the reasons therefor. In the case
12    of a joint return, the notice of deficiency may be  a  single
13    joint  notice  except  that  if the Department is notified by
14    either spouse that separate residences have been established,
15    it shall issue joint notices to each spouse.
16        (d)  Assessment when no protest.  Upon the expiration  of
17    60  days  after  the date on which it was issued (150 days if
18    the taxpayer is outside  the  United  States),  a  notice  of
19    deficiency  shall  constitute  an assessment of the amount of
20    tax and penalties specified therein,  except  only  for  such
21    amounts  as  to which the taxpayer shall have filed a protest
22    with the Department, as provided in Section 908.
23    (Source: P.A. 87-192; 87-205.)

24        (35 ILCS 5/917) (from Ch. 120, par. 9-917)
25        Sec. 917.  Confidentiality and information sharing.
26        (a)  Confidentiality. Except as provided in this Section,
27    all information received by the Department from returns filed
28    under this Act, or from any investigation conducted under the
29    provisions of this Act, shall  be  confidential,  except  for
30    official  purposes  within  the  Department  or  pursuant  to
31    official  procedures  for  collection  of  any  State  tax or
32    pursuant to an investigation or audit by the  Illinois  State
33    Scholarship  Commission  of  a  delinquent  student  loan  or
 
                            -8-                LRB9102214PTpk
 1    monetary  award  or  enforcement  of  any  civil  or criminal
 2    penalty or sanction imposed by this Act or by another statute
 3    imposing a State tax, and any person who  divulges  any  such
 4    information  in  any  manner,  except  for  such purposes and
 5    pursuant to order of the Director or  in  accordance  with  a
 6    proper   judicial  order,  shall  be  guilty  of  a  Class  A
 7    misdemeanor.  However, the provisions of this  paragraph  are
 8    not   applicable  to  information  furnished  to  a  licensed
 9    attorney representing the  taxpayer  where  an  appeal  or  a
10    protest  has  been  filed  on  behalf  of  the  taxpayer.  In
11    addition, the provisions of this paragraph are not applicable
12    in   a  non-criminal  proceeding  before  the  Department  to
13    information furnished to a certified public accountant  or  a
14    public  accountant  licensed  to practice in this State under
15    the Illinois Public Accounting Act.
16        (b)  Public information. Nothing contained  in  this  Act
17    shall   prevent   the  Director  from  publishing  or  making
18    available to the public the names and  addresses  of  persons
19    filing  returns  under this Act, or from publishing or making
20    available reasonable statistics concerning the  operation  of
21    the  tax  wherein  the  contents  of returns are grouped into
22    aggregates in such a way that the  information  contained  in
23    any individual return shall not be disclosed.
24        (c)  Governmental   agencies.   The   Director  may  make
25    available to the Secretary of  the  Treasury  of  the  United
26    States or his delegate, or the proper officer or his delegate
27    of any other state imposing a tax upon or measured by income,
28    for  exclusively  official  purposes, information received by
29    the Department in the administration of this  Act,  but  such
30    permission shall be granted only if the United States or such
31    other  state,  as  the  case  may  be,  grants the Department
32    substantially similar privileges.  The Director may  exchange
33    information  with  the  Illinois Department of Public Aid and
34    the Department of Human Services (acting as successor to  the
 
                            -9-                LRB9102214PTpk
 1    Department  of  Public  Aid  under  the  Department  of Human
 2    Services Act)  for  the  purpose  of  verifying  sources  and
 3    amounts  of  income and for other purposes directly connected
 4    with the administration of this Act and the  Illinois  Public
 5    Aid  Code.  The  Director  may  exchange information with the
 6    Director of the Department of  Employment  Security  for  the
 7    purpose  of  verifying  sources and amounts of income and for
 8    other purposes directly connected with the administration  of
 9    this   Act   and  Acts  administered  by  the  Department  of
10    Employment Security. The Director may make available  to  the
11    Illinois    Industrial   Commission   information   regarding
12    employers for the purpose of verifying the insurance coverage
13    required under the Workers'  Compensation  Act  and  Workers'
14    Occupational Diseases Act.
15        The  Director  may  make  available  to any State agency,
16    including the Illinois Supreme Court, which licenses  persons
17    to  engage  in  any  occupation,  information  that  a person
18    licensed by such agency has failed to file returns under this
19    Act or pay the tax, penalty and interest  shown  therein,  or
20    has  failed  to  pay  any final assessment of tax, penalty or
21    interest due under this  Act.  The  Director  may  also  make
22    available  to  the  Secretary  of  State  information  that a
23    corporation  which  has  been   issued   a   certificate   of
24    incorporation  by  the  Secretary of State has failed to file
25    returns under this Act or pay the tax, penalty  and  interest
26    shown  therein,  or has failed to pay any final assessment of
27    tax, penalty or interest due under this Act. An assessment is
28    final when all  proceedings  in  court  for  review  of  such
29    assessment have terminated or the time for the taking thereof
30    has  expired  without such proceedings being instituted.  For
31    taxable years ending on  or  after  December  31,  1987,  the
32    Director  may  make  available  to  the Director or principal
33    officer  of  any  Department  of  the  State   of   Illinois,
34    information  that  a  person  employed by such Department has
 
                            -10-               LRB9102214PTpk
 1    failed to file returns under this Act or pay the tax, penalty
 2    and interest shown therein.  For purposes of this  paragraph,
 3    the word "Department" shall have the same meaning as provided
 4    in  Section  3  of the State Employees Group Insurance Act of
 5    1971.
 6        (d)  The  Director  shall  make  available   for   public
 7    inspection  in  the  Department's  principal  office  and for
 8    publication, at cost, administrative decisions issued  on  or
 9    after  January  1,  1995.  These  decisions  are  to  be made
10    available  in  a  manner  so  that  the  following   taxpayer
11    information is not disclosed:
12             (1)  The   names,   addresses,   and  identification
13        numbers of the taxpayer, related entities, and employees.
14             (2)  At the sole discretion of the  Director,  trade
15        secrets  or  other confidential information identified as
16        such by the taxpayer, no later than 30 days after receipt
17        of an administrative  decision,  by  such  means  as  the
18        Department shall provide by rule.
19        The  Director  shall  determine the appropriate extent of
20    the deletions allowed in paragraph  (2).  In  the  event  the
21    taxpayer  does  not submit deletions, the Director shall make
22    only the deletions specified in paragraph (1).
23        The Director shall make available for  public  inspection
24    and  publication  an  administrative decision within 180 days
25    after the issuance of the administrative decision.  The  term
26    "administrative  decision" has the same meaning as defined in
27    Section 3-101 of Article III of the Code of Civil  Procedure.
28    Costs collected under this Section shall be paid into the Tax
29    Compliance and Administration Fund.
30        (e)  Nothing  contained  in  this  Act  shall prevent the
31    Director from divulging information to any person pursuant to
32    a request or  authorization  made  by  the  taxpayer,  by  an
33    authorized representative of the taxpayer, or, in the case of
34    information  related  to a joint return, by the spouse filing
 
                            -11-               LRB9102214PTpk
 1    the joint return with the taxpayer.
 2    (Source: P.A. 89-507, eff. 7-1-97; 90-491, eff. 1-1-98.)

 3        (35 ILCS 5/917.5 new)
 4        Sec. 917.5.  Civil damages; disclosure of information.
 5        (a)  If any officer or employee  of  the  Department,  in
 6    violation  of  Section 917, knowingly or negligently divulges
 7    information received by the Department from returns filed  by
 8    a taxpayer under this Act or from any investigation conducted
 9    with  respect to a taxpayer under the provisions of this Act,
10    the taxpayer may bring a civil action for damages against the
11    Department in the Court of Claims.
12        (b)  If any person who is not an officer or  employee  of
13    the  Department,  in  violation  of Section 917, knowingly or
14    negligently divulges information  from  returns  filed  by  a
15    taxpayer  under  this Act or from any investigation conducted
16    with respect to a taxpayer under the provision of  this  Act,
17    the  taxpayer  may  bring  a civil action for damages against
18    that person in the circuit court  of  the  county  where  the
19    taxpayer  has his or her residence or commercial domicile, or
20    Cook County  if  the  taxpayer  does  not  have  his  or  her
21    residence or commercial domicile in this State.
22        (c)  No  liability  shall arise under this Section if the
23    disclosure of information was a result of a good  faith,  but
24    erroneous, interpretation of Section 917.
25        (d)  In  any  action brought under subsection (a) or (b),
26    upon a finding of liability on the part of the defendant, the
27    defendant shall be liable to the plaintiff (i) in  an  amount
28    equal   to  the  greater  of  (A)  $1,000  for  each  act  of
29    unauthorized disclosure of information or (B) the  amount  of
30    damages, up to $100,000, in the case of willful disclosure or
31    a  disclosure that is the result of gross negligence and (ii)
32    costs and reasonable attorney's fees.
 
                            -12-               LRB9102214PTpk
 1        Section 15.  The Use  Tax  Act  is  amended  by  changing
 2    Sections 19 and 20 as follows:

 3        (35 ILCS 105/19) (from Ch. 120, par. 439.19)
 4        Sec.  19.  If  it  shall  appear that an amount of tax or
 5    penalty or interest has been paid in error hereunder  to  the
 6    Department   by   a  purchaser,  as  distinguished  from  the
 7    retailer, whether such amount be paid through  a  mistake  of
 8    fact  or an error of law, such purchaser may file a claim for
 9    credit or refund  with  the  Department  in  accordance  with
10    Sections  6,  6a, 6b, and 6c of the Retailers' Occupation Tax
11    Act. If it shall appear that an amount of tax or  penalty  or
12    interest  has  been paid in error to the Department hereunder
13    by a retailer who is required or authorized  to  collect  and
14    remit  the  use  tax,  whether  such amount be paid through a
15    mistake of fact or an error of law, such retailer may file  a
16    claim  for credit or refund with the Department in accordance
17    with Sections 6, 6a, 6b, and 6c of the Retailers'  Occupation
18    Tax  Act,  provided that no credit or refund shall be allowed
19    for any amount paid by any  such  retailer  unless  it  shall
20    appear  that  he  bore  the burden of such amount and did not
21    shift the burden thereof to anyone else (as in the case of  a
22    duplicated  tax  payment  which  the  retailer  made  to  the
23    Department  and  did not collect from anyone else), or unless
24    it  shall  appear  that  he  or  she  or  his  or  her  legal
25    representative has unconditionally repaid such amount to  his
26    vendee  (1)  who  bore the burden thereof and has not shifted
27    such burden directly or indirectly in any manner  whatsoever;
28    (2)   who,   if  he  has  shifted  such  burden,  has  repaid
29    unconditionally such amount to his or her own vendee, and (3)
30    who is not entitled to  receive  any  reimbursement  therefor
31    from  any  other  source  than  from  his  vendor,  nor to be
32    relieved of such burden in any other manner whatsoever. If it
33    shall appear that an amount of tax has  been  paid  in  error
 
                            -13-               LRB9102214PTpk
 1    hereunder  by  the purchaser to a retailer, who retained such
 2    tax as reimbursement for his or her tax liability on the same
 3    sale  under  the  Retailers'  Occupation  Tax  Act,  and  who
 4    remitted the amount involved  to  the  Department  under  the
 5    Retailers'  Occupation  Tax  Act, whether such amount be paid
 6    through a mistake of fact or an error of law,  the  procedure
 7    for  recovering such tax shall be that prescribed in Sections
 8    6, 6a, 6b and 6c of the Retailers' Occupation Tax Act.
 9        Any credit or refund that is allowed under  this  Section
10    shall  bear  interest at the rate and in the manner specified
11    in the Uniform Penalty and Interest Act.
12        Any claim filed hereunder shall  be  filed  upon  a  form
13    prescribed  and  furnished by the Department. The claim shall
14    be signed  by  the  claimant  (or  by  the  claimant's  legal
15    representative  if  the  claimant shall have died or become a
16    person under legal disability), or by a duly authorized agent
17    of the claimant or his or her legal representative.
18        A claim for credit or refund shall be considered to  have
19    been  filed  with the Department on the date upon which it is
20    received by the Department. Upon receipt  of  any  claim  for
21    credit  or  refund  filed  under  this  Act,  any  officer or
22    employee of the Department,  authorized  in  writing  by  the
23    Director  of Revenue to acknowledge receipt of such claims on
24    behalf of the Department, shall  execute  on  behalf  of  the
25    Department,  and shall deliver or mail to the claimant or his
26    duly authorized agent, a written receipt, acknowledging  that
27    the  claim has been filed with the Department, describing the
28    claim in sufficient detail to identify  it  and  stating  the
29    date  upon  which  the  claim was received by the Department.
30    Such written receipt shall be prima facie evidence  that  the
31    Department  received  the claim described in such receipt and
32    shall be prima facie evidence of the date when such claim was
33    received by the Department. In the absence of such a  written
34    receipt,  the  records of the Department as to when the claim
 
                            -14-               LRB9102214PTpk
 1    was received by the Department, or as to whether or  not  the
 2    claim  was received at all by the Department, shall be deemed
 3    to be prima facie correct upon these questions in  the  event
 4    of  any  dispute  between  the  claimant (or his or her legal
 5    representative)   and   the   Department   concerning   these
 6    questions.
 7        In case the Department determines that  the  claimant  is
 8    entitled  to  a  refund,  such refund shall be made only from
 9    such appropriation as may be available for that  purpose.  If
10    it appears unlikely that the amount appropriated would permit
11    everyone  having a claim allowed during the period covered by
12    such appropriation to elect to receive  a  cash  refund,  the
13    Department,  by  rule  or  regulation,  shall provide for the
14    payment of refunds in hardship cases and  shall  define  what
15    types of cases qualify as hardship cases.
16        If  a  retailer  who  has  failed to pay use tax on gross
17    receipts from retail sales is required by the  Department  to
18    pay  such tax, such retailer, without filing any formal claim
19    with the Department, shall be allowed to take credit  against
20    such  use  tax liability to the extent, if any, to which such
21    retailer  has  paid  an  amount  equivalent   to   retailers'
22    occupation  tax  or  has  paid use tax in error to his or her
23    vendor or vendors of  the  same  tangible  personal  property
24    which  such  retailer bought for resale and did not first use
25    before selling it,  and  no  penalty  or  interest  shall  be
26    charged  to  such  retailer  on  the  amount  of such credit.
27    However, when such credit is allowed to the retailer  by  the
28    Department,  the  vendor  is  precluded from refunding any of
29    that tax to the retailer and filing a  claim  for  credit  or
30    refund   with   respect  thereto  with  the  Department.  The
31    provisions  of  this  amendatory   Act   shall   be   applied
32    retroactively, regardless of the date of the transaction.
33    (Source: P.A. 90-562, eff. 12-16-97.)
 
                            -15-               LRB9102214PTpk
 1        (35 ILCS 105/20) (from Ch. 120, par. 439.20)
 2        Sec.  20. As soon as practicable after a claim for credit
 3    or refund is filed, the Department shall examine the same and
 4    determine the  amount  of  credit  or  refund  to  which  the
 5    claimant or the claimant's legal representative, in the event
 6    that  the  claimant  shall have died or become a person under
 7    legal disability, is entitled and shall,  by  its  Notice  of
 8    Tentative  Determination of Claim, notify the claimant or his
 9    or her legal  representative  of  such  determination,  which
10    determination  shall  be  prima  facie correct. Proof of such
11    determination by the Department may be made  at  any  hearing
12    before  the  Department  or  in  any  legal  proceeding  by a
13    reproduced copy of the Department's record relating  thereto,
14    in  the  name  of the Department under the certificate of the
15    Director of Revenue.  Such  reproduced  copy  shall,  without
16    further   proof,   be   admitted  into  evidence  before  the
17    Department or in any legal  proceeding  and  shall  be  prima
18    facie   proof   of   the   correctness  of  the  Department's
19    determination, as shown therein. If  such  claimant,  or  the
20    legal representative of a deceased claimant or a claimant who
21    is  a  person  under  legal  disability shall, within 60 days
22    after the Department's Notice of Tentative  Determination  of
23    Claim,  file a protest thereto and request a hearing thereon,
24    the Department shall give notice to  such  claimant,  or  the
25    legal  representative  of  a deceased claimant, or a claimant
26    who is a person under legal disability of the time and  place
27    fixed   for  such  hearing,  and  shall  hold  a  hearing  in
28    conformity with the provisions  of  this  Act,  and  pursuant
29    thereto shall issue its Final Determination of the amount, if
30    any,  found  to  be  due as a result of such hearing, to such
31    claimant, or the legal representative of a deceased  claimant
32    or a claimant who is a person under legal disability.
33        If  a  protest  to  the  Department's Notice of Tentative
34    Determination of Claim is not filed  within  60  days  and  a
 
                            -16-               LRB9102214PTpk
 1    request for a hearing thereon is not made as provided herein,
 2    the said Notice shall thereupon become and operate as a Final
 3    Determination;  and,  if the Department's Notice of Tentative
 4    Determination, upon becoming a Final Determination, indicates
 5    no amount due to the claimant, or, upon issuance of a  credit
 6    or  refund for the amount, if any, found by the Department to
 7    be due, the claim in all its aspects shall be closed  and  no
 8    longer  open  to protest, hearing, judicial review, or by any
 9    other  proceeding  or  action  whatever,  either  before  the
10    Department or in any court of this State. Claims  for  credit
11    or   refund  hereunder  must  be  filed  with  and  initially
12    determined by the  Department,  the  remedy  herein  provided
13    being  exclusive;  and  no  court  shall have jurisdiction to
14    determine the merits of  any  claim  except  upon  review  as
15    provided in this Act.
16    (Source: P.A. 90-491, eff. 1-1-98.)

17        Section  20.  The  Service  Use  Tax  Act  is  amended by
18    changing Sections 17 and 18 as follows:

19        (35 ILCS 110/17) (from Ch. 120, par. 439.47)
20        Sec. 17. If it shall appear that  an  amount  of  tax  or
21    penalty  or  interest has been paid in error hereunder to the
22    Department  by  a  purchaser,  as  distinguished   from   the
23    serviceman,  whether such amount be paid through a mistake of
24    fact or an error of law, such purchaser may file a claim  for
25    credit or refund with the Department. If it shall appear that
26    an  amount  of  tax  or  penalty or interest has been paid in
27    error to the Department hereunder  by  a  serviceman  who  is
28    required  or  authorized to collect and remit the Service Use
29    Tax, whether such amount be paid through a mistake of fact or
30    an error of law, such serviceman may file a claim for  credit
31    or  refund with the Department, provided that no credit shall
32    be allowed or refund made for any amount  paid  by  any  such
 
                            -17-               LRB9102214PTpk
 1    serviceman  unless it shall appear that he bore the burden of
 2    such amount and did not shift the burden  thereof  to  anyone
 3    else  (as  in  the case of a duplicated tax payment which the
 4    serviceman made to the Department and did  not  collect  from
 5    anyone  else), or unless it shall appear that he or his legal
 6    representative has unconditionally repaid such amount to  his
 7    vendee  (1)  who  bore the burden thereof and has not shifted
 8    such burden directly or indirectly in any manner  whatsoever;
 9    (2)   who,   if  he  has  shifted  such  burden,  has  repaid
10    unconditionally such amount to his own vendee, and (3) who is
11    not entitled to receive any reimbursement therefor  from  any
12    other source than from his vendor, nor to be relieved of such
13    burden  in  any  other  manner whatsoever. If it shall appear
14    that an amount of tax has been paid in error hereunder by the
15    purchaser  to  a  serviceman,  who  retained  such   tax   as
16    reimbursement  for  his  tax  liability  on  the same sale of
17    service under the Service Occupation Tax Act,  and  who  paid
18    such  tax  as  required  by  the  Service Occupation Tax Act,
19    whether such amount be paid through a mistake of fact  or  an
20    error  of law, the procedure for recovering such tax shall be
21    that prescribed in Sections 17, 18, 19 and 20 of the  Service
22    Occupation Tax Act.
23        Any  credit  or refund that is allowed under this Section
24    shall bear interest at the rate and in the  manner  specified
25    in the Uniform Penalty and Interest Act.
26        Any  claim  filed  hereunder  shall  be filed upon a form
27    prescribed and furnished by the Department. The  claim  shall
28    be  signed  by  the  claimant  (or  by  the  claimant's legal
29    representative if the claimant shall have died  or  become  a
30    person under legal disability), or by a duly authorized agent
31    of the claimant or his or her legal representative.
32        A  claim for credit or refund shall be considered to have
33    been filed with the Department on the date upon which  it  is
34    received  by  the  Department.  Upon receipt of any claim for
 
                            -18-               LRB9102214PTpk
 1    credit or  refund  filed  under  this  Act,  any  officer  or
 2    employee  of  the  Department,  authorized  in writing by the
 3    Director of Revenue to acknowledge receipt of such claims  on
 4    behalf  of  the  Department,  shall  execute on behalf of the
 5    Department, and shall deliver or mail to the claimant or  his
 6    duly  authorized agent, a written receipt, acknowledging that
 7    the claim has been filed with the Department, describing  the
 8    claim  in  sufficient  detail  to identify it and stating the
 9    date upon which the claim was  received  by  the  Department.
10    Such  written  receipt shall be prima facie evidence that the
11    Department received the claim described in such  receipt  and
12    shall be prima facie evidence of the date when such claim was
13    received  by the Department. In the absence of such a written
14    receipt, the records of the Department as to when  the  claim
15    was  received  by the Department, or as to whether or not the
16    claim was received at all by the Department, shall be  deemed
17    to  be  prima facie correct upon these questions in the event
18    of any dispute between the claimant  (or  his  or  her  legal
19    representative)   and   the   Department   concerning   these
20    questions.
21        In  case  the  Department determines that the claimant is
22    entitled to a refund, such refund shall  be  made  only  from
23    such  appropriation  as may be available for that purpose. If
24    it appears unlikely that the amount appropriated would permit
25    everyone having a claim allowed during the period covered  by
26    such  appropriation  to  elect  to receive a cash refund, the
27    Department, by rule or  regulation,  shall  provide  for  the
28    payment  of  refunds  in hardship cases and shall define what
29    types of cases qualify as hardship cases.
30    (Source: P.A. 87-205.)

31        (35 ILCS 110/18) (from Ch. 120, par. 439.48)
32        Sec. 18. As soon as practicable after a claim for  credit
33    or refund is filed, the Department shall examine the same and
 
                            -19-               LRB9102214PTpk
 1    determine  the  amount  of  credit  or  refund  to  which the
 2    claimant or the claimant's legal representative, in the event
 3    that the claimant shall have died or become  a  person  under
 4    legal  disability,  is  entitled  and shall, by its Notice of
 5    Tentative Determination of Claim, notify the claimant or  his
 6    legal    representative    of   such   determination,   which
 7    determination shall be prima facie  correct.  Proof  of  such
 8    determination  by  the  Department may be made at any hearing
 9    before the  Department  or  in  any  legal  proceeding  by  a
10    reproduced  copy of the Department's record relating thereto,
11    in the name of the Department under the  certificate  of  the
12    Director  of  Revenue.  Such  reproduced  copy shall, without
13    further  proof,  be  admitted  into   evidence   before   the
14    Department  or  in  any  legal  proceeding and shall be prima
15    facie  proof  of  the   correctness   of   the   Department's
16    determination,  as  shown  therein.  If such claimant, or the
17    legal representative of a deceased claimant or a claimant who
18    is a person under legal disability,  shall,  within  60  days
19    after  the  Department's Notice of Tentative Determination of
20    Claim, file a protest thereto and request a hearing  thereon,
21    the  Department  shall  give  notice to such claimant, or the
22    legal representative of a deceased claimant or  claimant  who
23    is  a  person  under  legal disability, of the time and place
24    fixed  for  such  hearing,  and  shall  hold  a  hearing   in
25    conformity  with  the  provisions  of  this Act, and pursuant
26    thereto shall issue its Final Determination of the amount, if
27    any, found to be due as a result of  such  hearing,  to  such
28    claimant,  or  the  legal  representative  of  a  deceased or
29    incompetent claimant.
30        If a protest to  the  Department's  Notice  of  Tentative
31    Determination  of  Claim  is  not  filed within 60 days and a
32    request for a hearing thereon is not made as provided herein,
33    the Notice shall thereupon become  and  operate  as  a  Final
34    Determination;  and,  if the Department's Notice of Tentative
 
                            -20-               LRB9102214PTpk
 1    Determination upon becoming a Final Determination,  indicates
 2    no  amount due to the claimant, or, upon issuance of a credit
 3    or refund for the amount, if any, found by the Department  to
 4    be  due,  the claim in all its aspects shall be closed and no
 5    longer open to protest, hearing, judicial review, or  by  any
 6    other  proceeding  or  action  whatever,  either  before  the
 7    Department  or  in any court of this State. Claims for credit
 8    or  refund  hereunder  must  be  filed  with  and   initially
 9    determined  by  the  Department,  the  remedy herein provided
10    being exclusive; and no  court  shall  have  jurisdiction  to
11    determine  the  merits  of  any  claim  except upon review as
12    provided in this Act.
13    (Source: P.A. 90-491, eff. 1-1-98.)

14        Section 25.  The Service Occupation Tax Act is amended by
15    changing Sections 17 and 18 as follows:

16        (35 ILCS 115/17) (from Ch. 120, par. 439.117)
17        Sec. 17. If it shall appear that  an  amount  of  tax  or
18    penalty or interest has been paid in error hereunder directly
19    to  the  Department  by  a serviceman, whether such amount be
20    paid through a mistake of fact  or  an  error  of  law,  such
21    serviceman  may  file  a  claim for credit or refund with the
22    Department. If it shall appear  that  an  amount  of  tax  or
23    penalty  or interest has been paid in error to the Department
24    hereunder by a supplier who  is  required  or  authorized  to
25    collect  and  remit  the Service Occupation Tax, whether such
26    amount be paid through a mistake of fact or an error of  law,
27    such  supplier may file a claim for credit or refund with the
28    Department, provided that no credit shall be allowed nor  any
29    refund  made  for any amount paid by any such supplier unless
30    it shall appear that he bore the burden of  such  amount  and
31    did  not  shift  the burden thereof to anyone else (as in the
32    case of a duplicated tax payment which the supplier  made  to
 
                            -21-               LRB9102214PTpk
 1    the  Department  and  did  not  collect from anyone else), or
 2    unless it shall appear that he or  his  legal  representative
 3    has  unconditionally repaid such amount to his vendee (1) who
 4    bore the burden thereof  and  has  not  shifted  such  burden
 5    directly  or indirectly in any manner whatsoever; (2) who, if
 6    he has shifted such burden, has repaid  unconditionally  such
 7    amount  to  his  own  vendee,  and (3) who is not entitled to
 8    receive any reimbursement therefor from any other source than
 9    from his supplier, nor to be relieved of such burden  in  any
10    other manner whatsoever.
11        Any  credit  or refund that is allowed under this Section
12    shall bear interest at the rate and in the  manner  specified
13    in the Uniform Penalty and Interest Act.
14        Any  claim  filed  hereunder  shall  be filed upon a form
15    prescribed and furnished by the Department. The  claim  shall
16    be  signed  by  the  claimant  (or  by  the  claimant's legal
17    representative if the claimant shall have died  or  become  a
18    person under legal disability), or by a duly authorized agent
19    of the claimant or his or her legal representative.
20        A  claim for credit or refund shall be considered to have
21    been filed with the Department on the date upon which  it  is
22    received  by  the  Department.  Upon receipt of any claim for
23    credit or  refund  filed  under  this  Act,  any  officer  or
24    employee  of  the  Department,  authorized  in writing by the
25    Director of Revenue to acknowledge receipt of such claims  on
26    behalf  of  the  Department,  shall  execute on behalf of the
27    Department, and shall deliver or mail to the claimant or  his
28    or   her   duly   authorized   agent,   a   written  receipt,
29    acknowledging  that  the  claim  has  been  filed  with   the
30    Department,  describing  the  claim  in  sufficient detail to
31    identify it and stating the date upon  which  the  claim  was
32    received  by  the  Department.  Such written receipt shall be
33    prima facie evidence that the Department received  the  claim
34    described  in  such receipt and shall be prima facie evidence
 
                            -22-               LRB9102214PTpk
 1    of the date when such claim was received by  the  Department.
 2    In  the absence of such a written receipt, the records of the
 3    Department  as  to  when  the  claim  was  received  by   the
 4    Department, or as to whether or not the claim was received at
 5    all  by  the  Department,  shall  be deemed to be prima facie
 6    correct upon these questions in  the  event  of  any  dispute
 7    between  the  claimant  (or his legal representative) and the
 8    Department concerning these questions.
 9        In case the Department determines that  the  claimant  is
10    entitled  to  a  refund,  such refund shall be made only from
11    such appropriation as may be available for that  purpose.  If
12    it appears unlikely that the amount appropriated would permit
13    everyone  having a claim allowed during the period covered by
14    such appropriation to elect to receive  a  cash  refund,  the
15    Department,  by  rule  or  regulation,  shall provide for the
16    payment of refunds in hardship cases and  shall  define  what
17    types of cases qualify as hardship cases.
18    (Source: P.A. 87-205.)

19        (35 ILCS 115/18) (from Ch. 120, par. 439.118)
20        Sec.  18. As soon as practicable after a claim for credit
21    or refund is filed, the Department shall examine the same and
22    determine the  amount  of  credit  or  refund  to  which  the
23    claimant or the claimant's legal representative, in the event
24    that  the  claimant  shall have died or become a person under
25    legal disability, is entitled and shall,  by  its  Notice  of
26    Tentative  Determination of Claim, notify the claimant or his
27    or her legal  representative  of  such  determination,  which
28    determination  shall  be  prima  facie correct. Proof of such
29    determination by the Department may be made  at  any  hearing
30    before  the  Department  or  in  any  legal  proceeding  by a
31    reproduced copy of the Department's record relating  thereto,
32    in  the  name  of the Department under the certificate of the
33    Director of Revenue.  Such  reproduced  copy  shall,  without
 
                            -23-               LRB9102214PTpk
 1    further   proof,   be   admitted  into  evidence  before  the
 2    Department or in any legal  proceeding  and  shall  be  prima
 3    facie   proof   of   the   correctness  of  the  Department's
 4    determination, as shown therein. If  such  claimant,  or  the
 5    legal representative of a deceased claimant or a claimant who
 6    is  under  legal  disability  shall, within 60 days after the
 7    Department's Notice of Tentative Determination of Claim, file
 8    a  protest  thereto  and  request  a  hearing  thereon,   the
 9    Department  shall  give notice to such claimant, or the legal
10    representative of a deceased claimant or a  claimant  who  is
11    under  legal disability, of the time and place fixed for such
12    hearing, and shall hold a  hearing  in  conformity  with  the
13    provisions  of this Act, and pursuant thereto shall issue its
14    Final Determination of the amount, if any, found to be due as
15    a result of such hearing, to  such  claimant,  or  the  legal
16    representative  of  a  deceased claimant or a claimant who is
17    under legal disability.
18        If a protest to  the  Department's  Notice  of  Tentative
19    Determination  of  Claim  is  not  filed within 60 days and a
20    request for a hearing thereon is not made as provided herein,
21    the Notice shall thereupon become  and  operate  as  a  Final
22    Determination;  and,  if the Department's Notice of Tentative
23    Determination, upon becoming a Final Determination, indicates
24    no amount due to the claimant, or, upon issuance of a  credit
25    or  refund for the amount, if any, found by the Department to
26    be due, the claim in all its aspects shall be closed  and  no
27    longer  open  to protest, hearing, judicial review, or by any
28    other  proceeding  or  action  whatever,  either  before  the
29    Department or in any court of this State. Claims  for  credit
30    or   refund  hereunder  must  be  filed  with  and  initially
31    determined by the  Department,  the  remedy  herein  provided
32    being  exclusive;  and  no  court  shall have jurisdiction to
33    determine the merits of  any  claim  except  upon  review  as
34    provided in this Act.
 
                            -24-               LRB9102214PTpk
 1    (Source: P.A. 90-491, eff. 1-1-98.)

 2        Section 30.  The Retailer's Occupation Tax Act is amended
 3    by changing Sections 4, 5, 6a, and 6b as follows:

 4        (35 ILCS 120/4) (from Ch. 120, par. 443)
 5        Sec.  4.  As  soon  as  practicable  after  any return is
 6    filed, the Department shall examine such return and shall, if
 7    necessary, correct such return according to its best judgment
 8    and information.  If the correction of a return results in an
 9    amount of tax that is understated on  the  taxpayer's  return
10    due  to a mathematical error, the Department shall notify the
11    taxpayer that the amount of tax in excess of  that  shown  on
12    the   return   is   due  and  has  been  assessed.  The  term
13    "mathematical error" means  arithmetic  errors  or  incorrect
14    computations  on  the return or supporting schedules. No such
15    notice of additional tax due shall be  issued  on  and  after
16    each  July  1  and January 1 covering gross receipts received
17    during any month or period of time more than 3 years prior to
18    such July 1 and January  1,  respectively.   Such  notice  of
19    additional  tax  due  shall not be considered a notice of tax
20    liability nor shall the taxpayer have any right of protest.
21    In the event that the return  is  corrected  for  any  reason
22    other  than  a mathematical error, any return so corrected by
23    the Department shall be prima  facie  correct  and  shall  be
24    prima  facie evidence of the correctness of the amount of tax
25    due,  as  shown  therein.   In  correcting   transaction   by
26    transaction  reporting  returns  provided for in Section 3 of
27    this Act, it shall be permissible for the Department to  show
28    a  single  corrected  return figure for any given period of a
29    calendar month instead of having to correct each  transaction
30    by  transaction return form individually and having to show a
31    corrected return figure  for  each  of  such  transaction  by
32    transaction   return   forms.   In  making  a  correction  of
 
                            -25-               LRB9102214PTpk
 1    transaction by  transaction,  monthly  or  quarterly  returns
 2    covering   a  period  of  6  months  or  more,  it  shall  be
 3    permissible for the Department to  show  a  single  corrected
 4    return figure for any given 6-month period.
 5        Instead  of  requiring  the  person filing such return to
 6    file an amended return, the Department may simply notify  him
 7    of the correction or corrections it has made.
 8        Proof of such correction by the Department may be made at
 9    any  hearing before the Department or in any legal proceeding
10    by  a  reproduced  copy  or   computer   print-out   of   the
11    Department's  record  relating  thereto  in  the  name of the
12    Department under the certificate of the Director of  Revenue.
13    If  reproduced copies of the Department's records are offered
14    as proof of such correction, the Director must  certify  that
15    those  copies  are  true  and exact copies of records on file
16    with  the  Department.   If  computer   print-outs   of   the
17    Department's records are offered as proof of such correction,
18    the  Director must certify that those computer print-outs are
19    true and exact representations of  records  properly  entered
20    into  standard electronic computing equipment, in the regular
21    course of the Department's business, at  or  reasonably  near
22    the  time  of  the  occurrence  of  the  facts recorded, from
23    trustworthy  and   reliable   information.   Such   certified
24    reproduced copy or certified computer print-out shall without
25    further   proof,   be   admitted  into  evidence  before  the
26    Department or in any legal  proceeding  and  shall  be  prima
27    facie  proof  of the correctness of the amount of tax due, as
28    shown therein.
29        If the tax computed upon the basis of the gross  receipts
30    as  fixed by the Department is greater than the amount of tax
31    due under the return or  returns  as  filed,  the  Department
32    shall  (or if the tax or any part thereof that is admitted to
33    be due by a return or returns, whether filed on time or  not,
34    is  not paid, the Department may) issue the taxpayer a notice
 
                            -26-               LRB9102214PTpk
 1    of tax liability  for  the  amount  of  tax  claimed  by  the
 2    Department  to  be  due, together with a penalty in an amount
 3    determined in accordance with  Section  3-3  of  the  Uniform
 4    Penalty and Interest Act. Provided, that if the incorrectness
 5    of  any  return or returns as determined by the Department is
 6    due to negligence or fraud,  said  penalty  shall  be  in  an
 7    amount  determined  in accordance with Section 3-5 or Section
 8    3-6 of the Uniform Penalty and Interest Act, as the case  may
 9    be.  If  the  notice  of  tax  liability  is  not  based on a
10    correction of the taxpayer's return or returns, but is  based
11    on  the  taxpayer's  failure  to pay all or a part of the tax
12    admitted by his return or returns (whether filed on  time  or
13    not)  to  be due, such notice of tax liability shall be prima
14    facie correct and  shall  be  prima  facie  evidence  of  the
15    correctness of the amount of tax due, as shown therein.
16        Proof  of  such notice of tax liability by the Department
17    may be made at any hearing before the Department  or  in  any
18    legal  proceeding  by  a  reproduced copy of the Department's
19    record relating thereto in the name of the  Department  under
20    the  certificate of the Director of Revenue.  Such reproduced
21    copy shall without further proof, be admitted  into  evidence
22    before the Department or in any legal proceeding and shall be
23    prima  facie  proof  of  the correctness of the amount of tax
24    due, as shown therein.
25        If the person filing any return dies or becomes a  person
26    under  legal  disability  at  any  time before the Department
27    issues its notice of tax  liability,  such  notice  shall  be
28    issued   to   the  administrator,  executor  or  other  legal
29    representative, as such, of such person.
30        Except in case of a fraudulent return, or in the case  of
31    an  amended  return  (where  a notice of tax liability may be
32    issued on or after each January 1 and July 1 for  an  amended
33    return filed not more than 3 years prior to such January 1 or
34    July  1,  respectively),  no notice of tax liability shall be
 
                            -27-               LRB9102214PTpk
 1    issued on and after each January 1 and July 1 covering  gross
 2    receipts  received  during  any  month or period of time more
 3    than  3  years  prior  to  such  January  1   and   July   1,
 4    respectively.    If,   before  the  expiration  of  the  time
 5    prescribed in this Section for the issuance of  a  notice  of
 6    tax  liability,  both  the  Department  and the taxpayer have
 7    consented in writing to its issuance after  such  time,  such
 8    notice  may  be issued at any time prior to the expiration of
 9    the period agreed upon.  The period so  agreed  upon  may  be
10    extended  by subsequent agreements in writing made before the
11    expiration  of  the  period  previously  agreed   upon.   The
12    foregoing  limitations  upon  the issuance of a notice of tax
13    liability shall not apply to the issuance of a notice of  tax
14    liability with respect to any period of time prior thereto in
15    cases   where  the  Department  has,  within  the  period  of
16    limitation then provided,  notified  the  person  making  the
17    return  of a notice of tax liability even though such return,
18    with which the tax that was shown by such return  to  be  due
19    was paid when the return was filed, had not been corrected by
20    the  Department  in  the  manner required herein prior to the
21    issuance of such notice, but in no case shall the  amount  of
22    any  such  notice  of  tax liability for any period otherwise
23    barred by this Act exceed for such period the amount shown in
24    the notice of tax liability theretofore issued.
25        If, when a tax or penalty under this Act becomes due  and
26    payable,  the  person alleged to be liable therefor is out of
27    the State, the notice of tax liability may be  issued  within
28    the  times  herein limited after his coming into or return to
29    the State; and if, after the tax or penalty  under  this  Act
30    becomes  due  and  payable,  the  person alleged to be liable
31    therefor departs from and remains out of the State, the  time
32    of  his or her absence is no part of the time limited for the
33    issuance of the notice of tax liability;  but  the  foregoing
34    provisions  concerning absence from the State shall not apply
 
                            -28-               LRB9102214PTpk
 1    to any case in which, at the  time  when  a  tax  or  penalty
 2    becomes  due  under  this  Act,  the  person allegedly liable
 3    therefor is not a resident of this State.
 4        The time limitation period on the Department's  right  to
 5    issue  a  notice  of  tax  liability shall not run during any
 6    period of time in which the Order of any Court has the effect
 7    of enjoining or restraining the Department from  issuing  the
 8    notice of tax liability.
 9        If  such  person  or legal representative shall within 60
10    days after such notice of tax liability  file  a  protest  to
11    said  notice  of tax liability and request a hearing thereon,
12    the Department shall give notice  to  such  person  or  legal
13    representative  of  the time and place fixed for such hearing
14    and shall hold a hearing in conformity with the provisions of
15    this Act, and pursuant thereto shall issue to such person  or
16    legal  representative a final assessment for the amount found
17    to be due as a result of such hearing.
18        If a protest to the notice of tax liability and a request
19    for a hearing thereon is not filed within 60 days after  such
20    notice,  such  notice  of  tax  liability  shall become final
21    without the necessity of a final assessment being issued  and
22    shall be deemed to be a final assessment.
23        After  the issuance of a final assessment, or a notice of
24    tax liability which becomes final without  the  necessity  of
25    actually issuing a final assessment as hereinbefore provided,
26    the Department, at any time before such assessment is reduced
27    to judgment, may (subject to rules of the Department) grant a
28    rehearing  (or grant departmental review and hold an original
29    hearing if no previous hearing in the matter has  been  held)
30    upon  the  application  of the person aggrieved.  Pursuant to
31    such hearing or  rehearing,  the  Department  shall  issue  a
32    revised   final  assessment  to  such  person  or  his  legal
33    representative for the amount found to be due as a result  of
34    such hearing or rehearing.
 
                            -29-               LRB9102214PTpk
 1    (Source: P.A. 89-379, eff. 1-1-96.)

 2        (35 ILCS 120/5) (from Ch. 120, par. 444)
 3        Sec.  5.  In  case  any person engaged in the business of
 4    selling tangible personal property at retail fails to file  a
 5    return  when and as herein required, but thereafter, prior to
 6    the Department's issuance of a notice of tax liability  under
 7    this  Section, files a return and pays the tax, he shall also
 8    pay a penalty in an  amount  determined  in  accordance  with
 9    Section 3-3 of the Uniform Penalty and Interest Act.
10        In  case  any  person  engaged in the business of selling
11    tangible personal property at retail files the return at  the
12    time  required  by  this Act but fails to pay the tax, or any
13    part thereof, when due, a penalty in an amount determined  in
14    accordance  with  Section  3-3  of  the  Uniform  Penalty and
15    Interest Act shall be added thereto.
16        In case any person engaged in  the  business  of  selling
17    tangible  personal  property at retail fails to file a return
18    when and as herein required, but  thereafter,  prior  to  the
19    Department's issuance of a notice of tax liability under this
20    Section,  files  a  return but fails to pay the entire tax, a
21    penalty in an amount determined in  accordance  with  Section
22    3-3  of  the  Uniform Penalty and Interest Act shall be added
23    thereto.
24        In case any person engaged in  the  business  of  selling
25    tangible  personal property at retail fails to file a return,
26    the Department shall determine the amount of tax due from him
27    according to its best judgment and information, which  amount
28    so  fixed  by the Department shall be prima facie correct and
29    shall be prima facie  evidence  of  the  correctness  of  the
30    amount  of tax due, as shown in such determination. In making
31    any such determination of tax due, it  shall  be  permissible
32    for  the  Department to show a figure that represents the tax
33    due for any given period of 6 months instead of  showing  the
 
                            -30-               LRB9102214PTpk
 1    amount  of  tax  due for each month separately. Proof of such
 2    determination by the Department may be made  at  any  hearing
 3    before  the  Department  or  in  any  legal  proceeding  by a
 4    reproduced copy or computer  print-out  of  the  Department's
 5    record  relating  thereto in the name of the Department under
 6    the certificate of the Director  of  Revenue.  If  reproduced
 7    copies  of  the  Department's records are offered as proof of
 8    such determination, the  Director  must  certify  that  those
 9    copies  are true and exact copies of records on file with the
10    Department.   If  computer  print-outs  of  the  Department's
11    records are offered  as  proof  of  such  determination,  the
12    Director must certify that those computer print-outs are true
13    and  exact  representations  of records properly entered into
14    standard  electronic  computing  equipment,  in  the  regular
15    course of the Department's business, at  or  reasonably  near
16    the  time  of  the  occurrence  of  the  facts recorded, from
17    trustworthy  and   reliable   information.   Such   certified
18    reproduced   copy  or  certified  computer  print-out  shall,
19    without further proof, be admitted into evidence  before  the
20    Department  or  in  any  legal  proceeding and shall be prima
21    facie proof of the correctness of the amount of tax  due,  as
22    shown  therein.  The  Department  shall  issue the taxpayer a
23    notice of tax liability for the amount of tax claimed by  the
24    Department to be due, together with a penalty of 30% thereof.
25        However,  where  the  failure  to  file  any  tax  return
26    required  under  this  Act  on  the  date prescribed therefor
27    (including  any  extensions  thereof),   is   shown   to   be
28    unintentional and nonfraudulent and has not occurred in the 2
29    years  immediately  preceding  the  failure  to  file  on the
30    prescribed date or is  due  to  other  reasonable  cause  the
31    penalties imposed by this Act shall not apply.
32        If such person or the legal representative of such person
33    files,  within  60  days after such notice, a protest to such
34    notice of tax liability and requests a hearing  thereon,  the
 
                            -31-               LRB9102214PTpk
 1    Department  shall  give  notice  to  such person or the legal
 2    representative of such person of the time and place fixed for
 3    such hearing, and shall hold a hearing in conformity with the
 4    provisions of this Act, and pursuant thereto  shall  issue  a
 5    final   assessment   to   such   person   or   to  the  legal
 6    representative of such person for the amount found to be  due
 7    as a result of such hearing.
 8        If a protest to the notice of tax liability and a request
 9    for  a hearing thereon is not filed within 60 days after such
10    notice, such notice  of  tax  liability  shall  become  final
11    without  the necessity of a final assessment being issued and
12    shall be deemed to be a final assessment.
13        After the issuance of a final assessment, or a notice  of
14    tax  liability  which  becomes final without the necessity of
15    actually issuing a final assessment as hereinbefore provided,
16    the Department, at any time before such assessment is reduced
17    to judgment, may (subject to rules of the Department) grant a
18    rehearing (or grant departmental review and hold an  original
19    hearing  if  no previous hearing in the matter has been held)
20    upon the application of the  person  aggrieved.  Pursuant  to
21    such  hearing  or  rehearing,  the  Department  shall issue a
22    revised  final  assessment  to  such  person  or  his   legal
23    representative for the amount found to be due as a result  of
24    such hearing or rehearing.
25        Except  in  case of failure to file a return, or with the
26    consent of the person to whom the notice of tax liability  is
27    to  be  issued, no notice of tax liability shall be issued on
28    and after each July 1 and January 1 covering  gross  receipts
29    received during any month or period of time more than 3 years
30    prior to such July 1 and January 1, respectively, except that
31    if  a  return  is not filed at the required time, a notice of
32    tax liability may be issued not later than 3 years after  the
33    time  the return is filed. The foregoing limitations upon the
34    issuance of a notice of tax liability shall not apply to  the
 
                            -32-               LRB9102214PTpk
 1    issuance  of  any  such  notice with respect to any period of
 2    time prior thereto in cases where the Department has,  within
 3    the  period of limitation then provided, notified a person of
 4    the amount of tax computed even though the Department had not
 5    determined the amount of tax due  from  such  person  in  the
 6    manner  required herein prior to the issuance of such notice,
 7    but in no case shall the amount of any  such  notice  of  tax
 8    liability  for any period otherwise barred by this Act exceed
 9    for such period the amount shown in  the  notice  theretofore
10    issued.
11        If,  when a tax or penalty under this Act becomes due and
12    payable, the person alleged to be liable therefor is  out  of
13    the  State,  the notice of tax liability may be issued within
14    the times herein limited after his  or  her  coming  into  or
15    return  to  the State; and if, after the tax or penalty under
16    this Act becomes due and payable, the person  alleged  to  be
17    liable  therefor  departs  from and remains out of the State,
18    the time of his or her absence is no part of the time limited
19    for the issuance of the notice  of  tax  liability;  but  the
20    foregoing  provisions concerning absence from the State shall
21    not apply to any case in which, at the time  when  a  tax  or
22    penalty  becomes  due  under  this  Act, the person allegedly
23    liable therefor is not a resident of this State.
24        The time limitation period on the Department's  right  to
25    issue  a  notice  of  tax  liability shall not run during any
26    period of time in which the order of any court has the effect
27    of enjoining or restraining the Department from  issuing  the
28    notice of tax liability.
29        In  case  of  failure  to  pay  the  tax,  or any portion
30    thereof,  or  any  penalty  provided  for  in  this  Act,  or
31    interest, when due, the Department may bring suit to  recover
32    the  amount  of  such  tax, or portion thereof, or penalty or
33    interest; or, if the taxpayer has died  or  become  a  person
34    under legal disability, may file a claim therefor against his
 
                            -33-               LRB9102214PTpk
 1    estate;  provided  that no such suit with respect to any tax,
 2    or  portion  thereof,  or  penalty,  or  interest  shall   be
 3    instituted  more  than 2 years after the date any proceedings
 4    in court for review thereof have terminated or the  time  for
 5    the taking thereof has expired without such proceedings being
 6    instituted,  except  with the consent of the person from whom
 7    such tax or penalty or interest is due; nor, except with such
 8    consent, shall such suit be  instituted  more  than  2  years
 9    after  the  date  any  return is filed with the Department in
10    cases where the return constitutes the basis for the suit for
11    unpaid tax, or portion thereof, or penalty  provided  for  in
12    this  Act,  or  interest:  Provided  that the time limitation
13    period on the Department's right to bring any such suit shall
14    not run during any period of time in which the order  of  any
15    court   has  the  effect  of  enjoining  or  restraining  the
16    Department from bringing such suit.
17        After the expiration  of  the  period  within  which  the
18    person  assessed may file an action for judicial review under
19    the Administrative Review Law without such  an  action  being
20    filed,  a  certified  copy of the final assessment or revised
21    final assessment of the Department  may  be  filed  with  the
22    Circuit  Court  of  the  county in which the taxpayer has his
23    principal place of business, or of Sangamon County  in  those
24    cases in which the taxpayer does not have his principal place
25    of  business  in  this State. The certified copy of the final
26    assessment or revised final assessment shall  be  accompanied
27    by a certification which recites facts that are sufficient to
28    show  that  the  Department  complied with the jurisdictional
29    requirements of the Act in arriving at its  final  assessment
30    or its revised final assessment and that the taxpayer had his
31    opportunity  for  an  administrative hearing and for judicial
32    review, whether he availed himself or herself  of  either  or
33    both of these opportunities or not. If the court is satisfied
34    that   the   Department   complied  with  the  jurisdictional
 
                            -34-               LRB9102214PTpk
 1    requirements of the Act in arriving at its  final  assessment
 2    or its revised final assessment and that the taxpayer had his
 3    opportunity  for  an  administrative hearing and for judicial
 4    review, whether he availed himself of either or both of these
 5    opportunities or not, the  court  shall  render  judgment  in
 6    favor  of  the  Department  and  against the taxpayer for the
 7    amount shown to be due by the final assessment or the revised
 8    final assessment, plus any interest which  may  be  due,  and
 9    such  judgment shall be entered in the judgment docket of the
10    court. Such judgment shall bear the rate of interest  as  set
11    by  the Uniform Penalty and Interest Act, but otherwise shall
12    have the same effect as other judgments. The judgment may  be
13    enforced,   and   all   laws  applicable  to  sales  for  the
14    enforcement of a judgment shall be applicable to  sales  made
15    under such judgments. The Department shall file the certified
16    copy  of its assessment, as herein provided, with the Circuit
17    Court within 2 years  after  such  assessment  becomes  final
18    except  when the taxpayer consents in writing to an extension
19    of such filing period, and except that  the  time  limitation
20    period  on  the Department's right to file the certified copy
21    of its assessment with the Circuit Court shall not run during
22    any period of time in which the order of any  court  has  the
23    effect of enjoining or restraining the Department from filing
24    such certified copy of its assessment with the Circuit Court.
25        If,  when  the  cause of action for a proceeding in court
26    accrues against a person, he or she is out of the State,  the
27    action  may  be  commenced  within  the times herein limited,
28    after his or her coming into or return to the State; and  if,
29    after the cause of action accrues, he or she departs from and
30    remains  out  of the State, the time of his or her absence is
31    no part of the time  limited  for  the  commencement  of  the
32    action;  but the foregoing provisions concerning absence from
33    the State shall not apply to any case in which, at  the  time
34    the cause of action accrues, the party against whom the cause
 
                            -35-               LRB9102214PTpk
 1    of  action  accrues is not a resident of this State. The time
 2    within which a  court  action  is  to  be  commenced  by  the
 3    Department hereunder shall not run from the date the taxpayer
 4    files  a  petition in bankruptcy under the Federal Bankruptcy
 5    Act until 30 days after notice of termination  or  expiration
 6    of the automatic stay imposed by the Federal Bankruptcy Act.
 7        No  claim  shall  be  filed  against  the  estate  of any
 8    deceased person or any person under legal disability for  any
 9    tax  or penalty or part of either, or interest, except in the
10    manner prescribed and within the time limited by the  Probate
11    Act of 1975, as amended.
12        The collection of tax or penalty or interest by any means
13    provided  for  herein  shall  not be a bar to any prosecution
14    under this Act.
15        In addition to any penalty provided for in this Act,  any
16    amount  of tax which is not paid when due shall bear interest
17    at the rate and in the manner specified in Sections  3-2  and
18    3-9  of  the  Uniform  Penalty and Interest Act from the date
19    when such tax becomes past due until such tax is  paid  or  a
20    judgment  therefor is obtained by the Department. If the time
21    for making or completing an audit of a taxpayer's  books  and
22    records  is  extended  with  the  taxpayer's  consent, at the
23    request of and for the convenience of the Department,  beyond
24    the  date  on  which  the  statute  of  limitations  upon the
25    issuance of a notice  of  tax  liability  by  the  Department
26    otherwise  would  run,  no  interest  shall accrue during the
27    period of such extension or until a Notice of  Tax  Liability
28    is issued, whichever occurs first.
29        In addition to any other remedy provided by this Act, and
30    regardless  of whether the Department is making or intends to
31    make use of such other remedy, where a corporation or limited
32    liability company registered  under  this  Act  violates  the
33    provisions   of  this  Act  or  of  any  rule  or  regulation
34    promulgated thereunder, the Department may give notice to the
 
                            -36-               LRB9102214PTpk
 1    Attorney General of the identity of  such  a  corporation  or
 2    limited  liability company and of the violations committed by
 3    such a corporation or limited  liability  company,  for  such
 4    action  as is not already provided for by this Act and as the
 5    Attorney General may deem appropriate.
 6        If the Department determines that an  amount  of  tax  or
 7    penalty  or interest was incorrectly assessed, whether as the
 8    result of  a  mistake  of  fact  or  an  error  of  law,  the
 9    Department  shall  waive  the  amount  of  tax  or penalty or
10    interest that accrued due to the incorrect assessment.
11    (Source: P.A. 87-193; 87-205; 87-895; 88-480.)

12        (35 ILCS 120/6a) (from Ch. 120, par. 445a)
13        Sec. 6a. Claims for credit or refund  shall  be  prepared
14    and  filed  upon forms provided by the Department. Each claim
15    shall state: (1) The name and principal business  address  of
16    the  claimant;  (2)  the period covered by the claim; (3) the
17    total amount of credit or refund claimed,  giving  in  detail
18    the  net  amount  of  taxable receipts reported each month or
19    other return period used by the claimant  as  the  basis  for
20    filing  returns  in  the period covered by the claim; (4) the
21    total amount of tax paid for each return period; (5) receipts
22    upon which tax liability is admitted for each return  period;
23    (6)  the  amount  of  receipts  on  which credit or refund is
24    claimed for each return period; (7)  the  tax  due  for  each
25    return  period  as  corrected;  (8)  the  amount of credit or
26    refund claimed for each return period; (9) reason or  reasons
27    why  the  amount, for which the claim is filed, is alleged to
28    have been  paid  in  error;  (10)  a  list  of  the  evidence
29    (documentary  or  otherwise) which the claimant has available
30    to establish his compliance with Section 6 as to bearing  the
31    burden  of  the tax for which he seeks credit or refund; (11)
32    payments or parts thereof (if any) included in the claim  and
33    paid   by   the   claimant  under  protest;  (12)  sufficient
 
                            -37-               LRB9102214PTpk
 1    information to identify any suit which involves this Act, and
 2    to which the  claimant  is  a  party,  and  (13)  such  other
 3    information  as  the Department may reasonably require. Where
 4    the claimant is a corporation or limited  liability  company,
 5    the  claim  filed  on  behalf  of such corporation or limited
 6    liability  company  shall  be  signed   by   the   president,
 7    vice-president,  secretary  or  treasurer,  by  the  properly
 8    accredited  agent  of  such  corporation,  or  by  a manager,
 9    member, or properly accredited agent of the limited liability
10    company.
11        A claim for credit or refund shall be considered to  have
12    been  filed  with the Department on the date upon which it is
13    received by the Department. Upon receipt  of  any  claim  for
14    credit  or  refund  filed  under  this  Act,  any  officer or
15    employee of the Department,  authorized  in  writing  by  the
16    Director  of Revenue to acknowledge receipt of such claims on
17    behalf of the Department, shall  execute  on  behalf  of  the
18    Department,  and shall deliver or mail to the claimant or his
19    duly authorized agent, a written receipt, acknowledging  that
20    the  claim has been filed with the Department, describing the
21    claim in sufficient detail to identify  it  and  stating  the
22    date  upon  which  the  claim was received by the Department.
23    Such written receipt shall be prima facie evidence  that  the
24    Department  received  the claim described in such receipt and
25    shall be prima facie evidence of the date when such claim was
26    received by the Department. In the absence of such a  written
27    receipt,  the  records of the Department as to when the claim
28    was received by the Department, or as to whether or  not  the
29    claim  was received at all by the Department, shall be deemed
30    to be prima facie correct upon these questions in  the  event
31    of   any   dispute   between   the  claimant  (or  his  legal
32    representative)   and   the   Department   concerning   these
33    questions.
34    (Source: P.A. 88-480.)
 
                            -38-               LRB9102214PTpk
 1        (35 ILCS 120/6b) (from Ch. 120, par. 445b)
 2        Sec. 6b. As soon as practicable after a claim for  credit
 3    or refund is filed, the Department shall examine the same and
 4    determine  the  amount  of  credit  or  refund  to  which the
 5    claimant or the taxpayer's legal representative, in the event
 6    that the taxpayer has died or become incompetent, is entitled
 7    and shall, by its Notice of Tentative Determination of Claim,
 8    notify the claimant  or  his  legal  representative  of  such
 9    determination,  which  determination  shall  be  prima  facie
10    correct. Proof of such determination by the Department may be
11    made  at  any  hearing  before the Department or in any legal
12    proceeding by a reproduced copy of  the  Department's  record
13    relating  thereto,  in  the  name of the Department under the
14    certificate of the Director of Revenue. Such reproduced  copy
15    shall,  without  further  proof,  be  admitted  into evidence
16    before the Department or in any legal proceeding and shall be
17    prima facie proof of  the  correctness  of  the  Department's
18    determination,  as  shown  therein.  If such claimant, or the
19    legal representative of a deceased or  incompetent  taxpayer,
20    within  60  days  after  the Department's Notice of Tentative
21    Determination of Claim, files a protest thereto and  requests
22    a  hearing  thereon, the Department shall give notice to such
23    claimant, or the legal representative of a deceased taxpayer,
24    or a taxpayer who is under legal disability of the  time  and
25    place  fixed  for  such  hearing, and shall hold a hearing in
26    conformity with the provisions  of  this  Act,  and  pursuant
27    thereto shall issue its Final Determination of the amount, if
28    any,  found  to  be  due as a result of such hearing, to such
29    claimant, or the legal representative of a deceased taxpayer,
30    or a taxpayer who is under legal disability. The Department's
31    Final Determination may be reviewed  by  the  proper  Circuit
32    Court,  in  the  same  manner, within the same time, upon the
33    same terms and conditions and to the same extent, as provided
34    by Section 12 of this Act.
 
                            -39-               LRB9102214PTpk
 1        In any case in which there has been an  erroneous  refund
 2    of  tax payable under this Act, a notice of tax liability may
 3    be issued at any time within 3 years from the making of  that
 4    refund,  or  within 5 years from the making of that refund if
 5    it appears that any part of the refund was induced  by  fraud
 6    or  the  misrepresentation of a material fact.  The amount of
 7    any proposed assessment set forth  in  the  notice  shall  be
 8    limited to the amount of the erroneous refund.
 9    (Source: P.A. 87-876; 87-879; 88-45.)

10        Section 35.  The Cigarette Tax Act is amended by changing
11    Sections 9a and 9b as follows:

12        (35 ILCS 130/9a) (from Ch. 120, par. 453.9a)
13        Sec.  9a.  (1) As soon as practicable after any return is
14    filed, the Department shall examine  such  return  and  shall
15    correct  such  return  according  to  its  best  judgment and
16    information, which return  so  corrected  by  the  Department
17    shall  be  prima  facie  correct  and  shall  be  prima facie
18    evidence of the correctness of the  amount  of  tax  due,  as
19    shown  therein.  Instead of requiring the distributor to file
20    an amended return,  the  Department  may  simply  notify  the
21    distributor  of  the  correction  or corrections it has made.
22    Proof of such correction by the Department may be made at any
23    hearing before the Department or in any legal proceeding by a
24    reproduced copy of the Department's record  relating  thereto
25    in  the  name  of the Department under the certificate of the
26    Director of Revenue.  Such  reproduced  copy  shall,  without
27    further   proof,   be   admitted  into  evidence  before  the
28    Department or in any legal  proceeding  and  shall  be  prima
29    facie  proof  of the correctness of the amount of tax due, as
30    shown therein. If the Department finds that any amount of tax
31    is due from the distributor, the Department shall  issue  the
32    distributor  a  notice of tax liability for the amount of tax
 
                            -40-               LRB9102214PTpk
 1    claimed by the Department to be due, together with a  penalty
 2    in  an amount determined in accordance with Sections 3-3, 3-5
 3    and 3-6 of the Uniform  Penalty  and  Interest  Act.  If,  in
 4    administering  the  provisions  of  this Act, comparison of a
 5    return or returns of a distributor with  the  books,  records
 6    and  inventories  of  such distributor discloses a deficiency
 7    which cannot be allocated by the Department to  a  particular
 8    month or months, the Department shall issue the distributor a
 9    notice  of tax liability for the amount of tax claimed by the
10    Department to be due for a  given  period,  but  without  any
11    obligation upon the Department to allocate such deficiency to
12    any particular month or months, together with a penalty in an
13    amount  determined  in  accordance with Sections 3-3, 3-5 and
14    3-6 of the Uniform Penalty  and  Interest  Act,  under  which
15    circumstances  the aforesaid notice of tax liability shall be
16    prima facie correct and shall be prima facie evidence of  the
17    correctness  of  the amount of tax due, as shown therein; and
18    proof of such correctness may be made in accordance with, and
19    the admissibility of a reproduced copy of such notice of  tax
20    liability  shall  be  governed by, all the provisions of this
21    Act applicable  to  corrected  returns.  If  any  distributor
22    filing  any  return  dies  or  becomes  a  person under legal
23    disability at any  time  before  the  Department  issues  its
24    notice  of  tax liability, such notice shall be issued to the
25    administrator, executor or  other  legal  representative,  as
26    such, of such distributor.
27        (2)  If,   within  20  days  after  such  notice  of  tax
28    liability, the distributor or his or her legal representative
29    files a protest to such notice of tax liability and  requests
30    a  hearing  thereon, the Department shall give notice to such
31    distributor or legal representative of  the  time  and  place
32    fixed   for  such  hearing,  and  shall  hold  a  hearing  in
33    conformity with the provisions  of  this  Act,  and  pursuant
34    thereto shall issue a final assessment to such distributor or
 
                            -41-               LRB9102214PTpk
 1    legal  representative  for  the  amount  found to be due as a
 2    result of such hearing. If a protest to  the  notice  of  tax
 3    liability  and  a  request for a hearing thereon is not filed
 4    within 20 days after  such  notice  of  tax  liability,  such
 5    notice  of  tax  liability  shall  become  final  without the
 6    necessity of a final assessment being  issued  and  shall  be
 7    deemed to be a final assessment.
 8        (3)  In  case  of  failure to pay the tax, or any portion
 9    thereof, or any penalty provided for in this Act,  when  due,
10    the  Department  may bring suit to recover the amount of such
11    tax, or portion thereof, or penalty; or, if the taxpayer dies
12    or becomes incompetent, by filing claim therefor against  his
13    estate; provided that no such action with respect to any tax,
14    or portion thereof, or penalty, shall be instituted more than
15    2  years  after  the cause of action accrues, except with the
16    consent of the person from whom such tax or penalty is due.
17        After the expiration  of  the  period  within  which  the
18    person  assessed may file an action for judicial review under
19    the Administrative Review Law without such  an  action  being
20    filed,  a  certified  copy of the final assessment or revised
21    final assessment of the Department  may  be  filed  with  the
22    Circuit  Court of the county in which the taxpayer has his or
23    her principal place of business, or  of  Sangamon  County  in
24    those cases in which the taxpayer does not have his principal
25    place  of  business  in this State. The certified copy of the
26    final  assessment  or  revised  final  assessment  shall   be
27    accompanied  by  a certification which recites facts that are
28    sufficient to show that  the  Department  complied  with  the
29    jurisdictional  requirements  of  the  Law in arriving at its
30    final assessment or its revised final assessment and that the
31    taxpayer had his or her  opportunity  for  an  administrative
32    hearing  and  for judicial review, whether he availed himself
33    or herself of either or both of these opportunities  or  not.
34    If  the  court is satisfied that the Department complied with
 
                            -42-               LRB9102214PTpk
 1    the jurisdictional requirements of the Law in arriving at its
 2    final assessment or its revised final assessment and that the
 3    taxpayer had his or her  opportunity  for  an  administrative
 4    hearing  and  for  judicial review, whether he or she availed
 5    himself or herself of either or both of  these  opportunities
 6    or  not,  the  court  shall  enter  judgment  in favor of the
 7    Department and against the taxpayer for the amount  shown  to
 8    be   due  by  the  final  assessment  or  the  revised  final
 9    assessment, and such judgment shall be filed of record in the
10    court.  Such judgment shall bear the rate of interest set  in
11    the  Uniform  Penalty  and  Interest Act, but otherwise shall
12    have the same effect as other judgments.  The judgment may be
13    enforced,  and  all  laws  applicable  to   sales   for   the
14    enforcement  of  a judgment shall be applicable to sales made
15    under such judgments. The Department shall file the certified
16    copy of its assessment, as herein provided, with the  Circuit
17    Court  within  2  years  after  such assessment becomes final
18    except when the taxpayer consents in writing to an  extension
19    of such filing period.
20        If,  when  the  cause of action for a proceeding in court
21    accrues against a person, he or she is out of the State,  the
22    action  may  be  commenced  within  the times herein limited,
23    after his or her coming into or return to the State; and  if,
24    after the cause of action accrues, he or she departs from and
25    remains  out  of the State, the time of his or her absence is
26    no part of the time  limited  for  the  commencement  of  the
27    action;  but the foregoing provisions concerning absence from
28    the State shall not apply to any case in which, at  the  time
29    the cause of action accrues, the party against whom the cause
30    of  action  accrues is not a resident of this State. The time
31    within which a  court  action  is  to  be  commenced  by  the
32    Department  hereunder  shall  not run while the taxpayer is a
33    debtor in any proceeding under the Federal Bankruptcy Act nor
34    thereafter until 90 days after the Department is notified  by
 
                            -43-               LRB9102214PTpk
 1    such debtor of being discharged in bankruptcy.
 2        No  claim  shall  be  filed  against  the  estate  of any
 3    deceased person or a person under legal  disability  for  any
 4    tax  or  penalty  or  part  of  either  except  in the manner
 5    prescribed and within the time limited by the Probate Act  of
 6    1975, as amended.
 7        The  remedies provided for herein shall not be exclusive,
 8    but all remedies available to creditors for the collection of
 9    debts shall be available for the collection  of  any  tax  or
10    penalty due hereunder.
11        The  collection  of  tax or penalty by any means provided
12    for herein shall not be a bar to any prosecution  under  this
13    Act.
14        The  certificate of the Director of the Department to the
15    effect that a tax or amount required to be paid by  this  Act
16    has  not been paid, that a return has not been filed, or that
17    information has not been supplied pursuant to the  provisions
18    of this Act, shall be prima facie evidence thereof.
19        All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f,
20    5g, 5i and 5j of the Retailers' Occupation Tax Act, which are
21    not  inconsistent  with  this  Act,  and  Section  3-7 of the
22    Uniform Penalty and Interest  Act  shall  apply,  as  far  as
23    practicable,  to  the  subject matter of this Act to the same
24    extent as if such provisions were included herein. References
25    in such incorporated Sections of the  "Retailers'  Occupation
26    Tax  Act"  to  retailers, to sellers or to persons engaged in
27    the business of selling tangible personal property shall mean
28    distributors when used in this Act.
29    (Source: P.A. 87-205.)

30        (35 ILCS 130/9b) (from Ch. 120, par. 453.9b)
31        Sec. 9b. In case any person who is  required  to  file  a
32    return  under  this  Act  fails  to  file  such  return,  the
33    Department  shall  determine  the  amount of tax due from him
 
                            -44-               LRB9102214PTpk
 1    according to its best judgment and information, which  amount
 2    so  fixed  by the Department shall be prima facie correct and
 3    shall be prima facie  evidence  of  the  correctness  of  the
 4    amount  of  tax due, as shown in such determination. Proof of
 5    such determination by the  Department  may  be  made  at  any
 6    hearing before the Department or in any legal proceeding by a
 7    reproduced  copy  of the Department's record relating thereto
 8    in the name of the Department under the  certificate  of  the
 9    Director  of  Revenue.  Such  reproduced  copy shall, without
10    further  proof,  be  admitted  into   evidence   before   the
11    Department  or  in  any  legal  proceeding and shall be prima
12    facie proof of the correctness of the amount of tax  due,  as
13    shown  therein.  The  Department  shall  issue  such person a
14    notice of tax liability for the amount of tax claimed by  the
15    Department  to  be  due, together with a penalty in an amount
16    determined in accordance with Sections 3-3, 3-5  and  3-6  of
17    the  Uniform  Penalty and Interest Act. If such person or the
18    legal representative of such person,  within  20  days  after
19    such  notice, files a protest to such notice of tax liability
20    and requests a hearing thereon,  the  Department  shall  give
21    notice  to  such  person  or the legal representative of such
22    person of the time and place fixed for such hearing and shall
23    hold a hearing in conformity with the provisions of this Act,
24    and pursuant thereto shall issue a final assessment  to  such
25    person  or to the legal representative of such person for the
26    amount found to be due as a result  of  such  hearing.  If  a
27    protest  to  the  notice of tax liability and a request for a
28    hearing thereon is not filed within 20 days after such notice
29    of tax liability, such notice of tax liability  shall  become
30    final  without  the  necessity  of  a  final assessment being
31    issued and shall be deemed to be a final assessment.
32    (Source: P.A. 87-205.)

33        Section 40.  The Cigarette Use  Tax  Act  is  amended  by
 
                            -45-               LRB9102214PTpk
 1    changing Sections 13 and 13a as follows:

 2        (35 ILCS 135/13) (from Ch. 120, par. 453.43)
 3        Sec.  13.  As  soon  as  practicable  after any return is
 4    filed, the Department shall examine  such  return  and  shall
 5    correct  such  return  according  to  its  best  judgment and
 6    information, which return  so  corrected  by  the  Department
 7    shall  be  prima  facie  correct  and  shall  be  prima facie
 8    evidence of the correctness of the  amount  of  tax  due,  as
 9    shown therein. Proof of such correction by the Department may
10    be  made at any hearing before the Department or in any legal
11    proceeding by a reproduced copy of  the  Department's  record
12    relating  thereto  in  the  name  of the Department under the
13    certificate of the Director of Revenue. Such reproduced  copy
14    shall,  without  further  proof,  be  admitted  into evidence
15    before the Department or in any legal proceeding and shall be
16    prima facie proof of the correctness of  the  amount  of  tax
17    due,  as shown therein. If the tax as fixed by the Department
18    is greater than the amount of the tax due under the return as
19    filed, the Department shall  issue  the  person  filing  such
20    return  a  notice  of  tax  liability  for  the amount of tax
21    claimed by the Department to be due, together with a  penalty
22    in  an amount determined in accordance with Sections 3-3, 3-5
23    and 3-6 of the Uniform  Penalty  and  Interest  Act.  If,  in
24    administering  the  provisions  of  this Act, comparison of a
25    return or returns of a distributor with  the  books,  records
26    and  inventories  of  such distributor discloses a deficiency
27    which cannot be allocated by the Department to  a  particular
28    month or months, the Department shall issue the distributor a
29    notice  of tax liability for the amount of tax claimed by the
30    Department to be due for a  given  period,  but  without  any
31    obligation upon the Department to allocate such deficiency to
32    any particular month or months, together with a penalty in an
33    amount  determined  in  accordance with Sections 3-3, 3-5 and
 
                            -46-               LRB9102214PTpk
 1    3-6 of the Uniform Penalty  and  Interest  Act,  under  which
 2    circumstances  the aforesaid notice of tax liability shall be
 3    prima facie correct and shall be prima facie evidence of  the
 4    correctness  of  the amount of tax due, as shown therein; and
 5    proof of such correctness may be made in accordance with, and
 6    the admissibility of a reproduced copy of such notice of  tax
 7    liability  shall  be  governed by, all the provisions of this
 8    Act applicable to corrected returns.
 9        If any person filing any return dies or becomes a  person
10    under  legal  disability  at  any  time before the Department
11    issues its notice of tax  liability,  such  notice  shall  be
12    issued   to   the  administrator,  executor  or  other  legal
13    representative, as such, of such person.
14        If within 20 days after such notice of tax liability, the
15    person  to  whom  such  notice  is  issued   or   his   legal
16    representative   files  a  protest  to  such  notice  of  tax
17    liability and requests  a  hearing  thereon,  the  Department
18    shall  give  notice to such person or legal representative of
19    the time and place fixed for such hearing, and shall  hold  a
20    hearing  in  conformity  with the provisions of this Act, and
21    pursuant thereto shall  issue  a  final  assessment  to  such
22    person or legal representative for the amount found to be due
23    as  a  result  of such hearing. If a protest to the notice of
24    tax liability and a request for  a  hearing  thereon  is  not
25    filed within 20 days after such notice of tax liability, such
26    notice  of  tax  liability  shall  become  final  without the
27    necessity of a final assessment being  issued  and  shall  be
28    deemed to be a final assessment.
29    (Source: P.A. 87-205.)

30        (35 ILCS 135/13a) (from Ch. 120, par. 453.43a)
31        Sec.  13a.  In  case any person who is required to file a
32    return  under  this  Act  fails  to  file  such  return,  the
33    Department shall determine the amount of  tax  due  from  him
 
                            -47-               LRB9102214PTpk
 1    according  to its best judgment and information, which amount
 2    so fixed by the Department shall be prima facie  correct  and
 3    shall  be  prima  facie  evidence  of  the correctness of the
 4    amount of tax due, as shown in such determination.  Proof  of
 5    such  determination  by  the  Department  may  be made at any
 6    hearing before the Department or in any legal proceeding by a
 7    reproduced copy of the Department's record  relating  thereto
 8    in  the  name  of the Department under the certificate of the
 9    Director of Revenue.  Such  reproduced  copy  shall,  without
10    further   proof,   be   admitted  into  evidence  before  the
11    Department or in any legal  proceeding  and  shall  be  prima
12    facie  proof  of the correctness of the amount of tax due, as
13    shown therein. The  Department  shall  issue  such  person  a
14    notice  of tax liability for the amount of tax claimed by the
15    Department to be due, together with a penalty  in  an  amount
16    determined  in  accordance  with Sections 3-3, 3-5 and 3-6 of
17    the Uniform Penalty and Interest Act. If such person  or  the
18    legal  representative  of  such  person, within 20 days after
19    such notice, files a protest to such notice of tax  liability
20    and  requests  a  hearing  thereon, the Department shall give
21    notice to such person or the  legal  representative  of  such
22    person  of  the  time  and  place fixed for such hearing, and
23    shall hold a hearing in conformity  with  the  provisions  of
24    this Act, and pursuant thereto shall issue a final assessment
25    to  such person or to the legal representative of such person
26    for the amount found to be due as a result of  such  hearing.
27    If a protest to the notice of tax liability and a request for
28    a  hearing  thereon  is  not  filed within 20 days after such
29    notice of tax liability, such notice of tax  liability  shall
30    become  final  without  the  necessity  of a final assessment
31    being issued and shall be deemed to be a final assessment.
32    (Source: P.A. 87-205.)

33        Section  45.  The  Motor  Fuel  Tax  Act  is  amended  by
 
                            -48-               LRB9102214PTpk
 1    changing Sections 5, 5a, and 5b as follows:

 2        (35 ILCS 505/5) (from Ch. 120, par. 421)
 3        Sec. 5.  Except as hereinafter provided, a person holding
 4    a valid unrevoked license to act as a  distributor  of  motor
 5    fuel  shall,  between  the 1st and 20th days of each calendar
 6    month, make return to the  Department,  showing  an  itemized
 7    statement  of the number of invoiced gallons of motor fuel of
 8    the types specified in this  Section  which  were  purchased,
 9    acquired or received during the preceding calendar month; the
10    amount  of  such  motor  fuel  produced, refined, compounded,
11    manufactured, blended, sold, distributed,  and  used  by  the
12    licensed distributor during the preceding calendar month; the
13    amount  of  such  motor  fuel  lost  or  destroyed during the
14    preceding calendar month; and the amount of such  motor  fuel
15    on  hand  at  the  close  of  business  for such month.  If a
16    distributor's only activities with respect to motor fuel  are
17    either:  (1) production of alcohol in quantities of less than
18    10,000 proof gallons per year  or  (2)  blending  alcohol  in
19    quantities  of  less than 10,000 proof gallons per year which
20    such distributor has produced, he shall file  returns  on  an
21    annual  basis  with  the return for a given year being due by
22    January 20 of the following year.  Distributors  whose  total
23    production of alcohol (whether blended or not) exceeds 10,000
24    proof  gallons  per  year,  based  on  production  during the
25    preceding (calendar) year or as reasonably projected  by  the
26    Department if one calendar year's record of production cannot
27    be  established,  shall file returns between the 1st and 20th
28    days of each calendar month as hereinabove provided.
29        The types of motor fuel  referred  to  in  the  preceding
30    paragraph  are:  (A)  All  products  commonly or commercially
31    known  or  sold  as  gasoline  (including   casing-head   and
32    absorption  or  natural  gasoline),  gasohol, motor benzol or
33    motor benzene regardless of their classification or uses; and
 
                            -49-               LRB9102214PTpk
 1    (B) all combustible gases which exist in a gaseous  state  at
 2    60  degrees  Fahrenheit  and  at  14.7 pounds per square inch
 3    absolute including, but not limited to,  liquefied  petroleum
 4    gases  used  for highway purposes; and (C) special fuel. Only
 5    those quantities of combustible  gases  (example  (B)  above)
 6    which  are  used  or  sold  by  the distributor to be used to
 7    propel motor vehicles on the public highways,  or  which  are
 8    delivered into the bulk storage facilities of a bulk user, or
 9    which  are delivered into a storage tank that is located at a
10    facility that has withdrawal  facilities  which  are  readily
11    accessible to and are capable of dispensing combustible gases
12    into  the  fuel  supply  tanks  of  motor  vehicles, shall be
13    subject to return.  For the purposes of this  Act,  liquefied
14    petroleum  gases shall mean and include any material having a
15    vapor pressure not  exceeding  that  allowed  for  commercial
16    propane composed predominantly of the following hydrocarbons,
17    either  by  themselves  or  as mixtures:  Propane, Propylene,
18    Butane (normal butane or iso-butane) and Butylene  (including
19    isomers).
20        In case of a sale of special fuel to someone other than a
21    licensed  distributor,  licensed  supplier or a licensed bulk
22    user with a valid permit, for  a  use  other  than  in  motor
23    vehicles, the distributor shall show in his return the amount
24    of  invoiced  gallons  sold  and  the name and address of the
25    purchaser.
26        In case of a tax-free sale, as provided in Section 6,  of
27    motor  fuel which the distributor is required by this Section
28    to include in his return to the Department,  the  distributor
29    in  his return shall show: (1) If the sale is made to another
30    licensed distributor the amount sold and  the  name,  address
31    and  license number of the purchasing distributor; (2) if the
32    sale is made to a person where delivery is  made  outside  of
33    this  State  the  name  and address of such purchaser and the
34    point  of  delivery  together  with  the  date   and   amount
 
                            -50-               LRB9102214PTpk
 1    delivered;  (3) if the sale is made to the Federal Government
 2    or its instrumentalities the amount  sold,  as  evidenced  by
 3    official  forms  of  exemption certificates properly executed
 4    and   furnished   by   the   Federal   Government   or    its
 5    instrumentalities;  (4)  if  the  sale is made to a municipal
 6    corporation  owning  and  operating  a  local  transportation
 7    system for public service in this State the name and  address
 8    of  such  purchaser,  and  the  amount  sold, as evidenced by
 9    official forms of exemption  certificates  properly  executed
10    and furnished by such purchaser; (5) if the sale is made to a
11    privately  owned  public  utility owning and operating 2-axle
12    vehicles designed and  used  for  transporting  more  than  7
13    passengers,  which  vehicles  are  used as common carriers in
14    general transportation of passengers, are not devoted to  any
15    specialized  purpose  and  are  operated  entirely within the
16    territorial limits of a single municipality or of  any  group
17    of  contiguous  municipalities  or in a close radius thereof,
18    and the operations of which are subject to the regulations of
19    the Illinois Commerce Commission, then the name  and  address
20    of  such  purchaser  and  the  amount  sold  as  evidenced by
21    official forms of exemption  certificates  properly  executed
22    and  furnished  by  the purchaser; (6) if the product sold is
23    special fuel and if the sale is made to a  licensed  supplier
24    under  conditions  which  qualify  the sale for tax exemption
25    under Section 6 of this Act, the amount sold  and  the  name,
26    address  and  license number of the purchaser; (7)  if a sale
27    of special fuel is made to  someone  other  than  a  licensed
28    distributor,  licensed supplier, or a licensed bulk user with
29    a permit, for a use other than in motor vehicles, by making a
30    specific notation  thereof  on  the  invoice  or  sales  slip
31    covering   such   sales   and   obtaining   such   supporting
32    documentation  as  may be required by the Department; and (8)
33    if a sale of special fuel is made to  a  licensed  bulk  user
34    with  a  valid  unrevoked permit to purchase special fuel tax
 
                            -51-               LRB9102214PTpk
 1    exempt.
 2        A person whose license to act as a distributor  of  motor
 3    fuel  has  been revoked shall make a return to the Department
 4    covering the period from the date of the last return  to  the
 5    date  of the revocation of the license, which return shall be
 6    delivered to the Department not later than 10 days  from  the
 7    date  of the revocation or termination of the license of such
 8    distributor; the  return  shall  in  all  other  respects  be
 9    subject  to  the same provisions and conditions as returns by
10    distributors licensed under the provisions of this Act.
11        The records, waybills and supporting  documents  kept  by
12    railroads  and other common carriers in the regular course of
13    business shall be prima facie evidence of  the  contents  and
14    receipt  of  cars or tanks covered by those records, waybills
15    or supporting documents.
16        If the Department has reason to believe and does  believe
17    that  the  amount  shown  on  the return as received, lost or
18    destroyed is incorrect, or that an amount of  motor  fuel  of
19    the types required by the second paragraph of this Section to
20    be  reported  to  the Department by distributors as a receipt
21    has not been reported as a receipt, the Department shall  fix
22    an  amount for such receipt, loss or destruction according to
23    its best judgment and information, which amount so  fixed  by
24    the  Department  shall  be  prima facie correct.  All returns
25    shall  be  made  on  forms  prepared  and  furnished  by  the
26    Department, and shall contain such other information  as  the
27    Department   may  reasonably  require.  The  return  must  be
28    accompanied by appropriate computer-generated magnetic  media
29    supporting  schedule  data  in  the  format  required  by the
30    Department, unless, as  provided   by  rule,  the  Department
31    grants an exception upon petition of a taxpayer.
32    (Source: P.A. 87-149; 88-194.)

33        (35 ILCS 505/5a) (from Ch. 120, par. 421a)
 
                            -52-               LRB9102214PTpk
 1        Sec.  5a.   A person holding a valid unrevoked license to
 2    act as a supplier of special fuel shall, between the 1st  and
 3    20th  days  of  each  calendar  month,  make  return  to  the
 4    Department  showing  an  itemized  statement of the number of
 5    invoiced gallons of special fuel purchased or sold during the
 6    preceding calendar month and used by  the  licensed  supplier
 7    during the preceding calendar month.
 8        A  person  whose  license to act as a supplier of special
 9    fuel has been revoked shall make a return to  the  Department
10    covering  the  period from the date of the last return to the
11    date of the revocation of the license, which return shall  be
12    delivered  to  the Department not later than 10 days from the
13    date of the revocation or termination of the license of  such
14    supplier.   The return shall in all other respects be subject
15    to the same provisions and conditions as returns by suppliers
16    licensed under this Act.
17        The records, waybills and supporting  documents  kept  by
18    railroads  and other common carriers in the regular course of
19    business shall be prima facie evidence of  the  contents  and
20    receipt  of  cars or tanks covered by those records, waybills
21    or supporting documents.
22        If the Department has reason to believe and does  believe
23    that  the  amount shown on the return as purchased or sold or
24    used is incorrect, or that an amount of special fuel  of  the
25    type  required  by  the  1st  paragraph of this Section to be
26    reported to the Department by suppliers as a  purchase,  sale
27    or  use has not been reported as a purchase, sale or use, the
28    Department shall fix an amount for such purchase, sale or use
29    according to its best judgment and information, which  amount
30    so fixed by the Department shall be prima facie correct.
31        In case of a sale of special fuel to someone other than a
32    licensed  distributor,  licensed  supplier,  or licensed bulk
33    user with a valid permit, for  a  use  other  than  in  motor
34    vehicles, the supplier shall show in his return the amount of
 
                            -53-               LRB9102214PTpk
 1    invoiced  gallons  sold  and  the  name  and  address  of the
 2    purchaser.
 3        All returns shall be made on forms prepared and furnished
 4    by the Department and shall contain such other information as
 5    the Department may reasonably require.  The  return  must  be
 6    accompanied  by appropriate computer-generated magnetic media
 7    supporting schedule  data  in  the  format  required  by  the
 8    Department,  unless,  as  provided  by  rule,  the Department
 9    grants an exception upon petition of a taxpayer.
10        In case of a tax-free sale, as provided in Section 6a, of
11    special fuel which the supplier is required by  this  Section
12    to  include  in his return to the Department, the supplier in
13    his return shall show: (1) If the sale  of  special  fuel  is
14    made  to the Federal Government or its instrumentalities, the
15    amount sold as  evidenced  by  official  forms  of  exemption
16    certificates   properly   executed   and   furnished  by  the
17    Government or its  instrumentalities;  (2)  if  the  sale  of
18    special  fuel  is  made to a municipal corporation owning and
19    operating a local transportation system for public service in
20    this State, the name and address of such  purchaser  and  the
21    amount  sold,  as  evidenced  by  official forms of exemption
22    certificates  properly  executed  and   furnished   by   such
23    purchaser;  (3)  if  the  sale  of  special fuel is made to a
24    privately owned public utility owning  and  operating  2-axle
25    vehicles  designed  and  used  for  transporting  more than 7
26    passengers, which vehicles are used  as  common  carriers  in
27    general  transportation of passengers, are not devoted to any
28    specialized purpose and  are  operated  entirely  within  the
29    territorial  limits  of a single municipality or of any group
30    of contiguous municipalities or in a  close  radius  thereof,
31    and the operations of which are subject to the regulations of
32    the  Illinois  Commerce Commission, then the name and address
33    of such purchaser  and  the  amount  sold,  as  evidenced  by
34    official  forms  of  exemption certificates properly executed
 
                            -54-               LRB9102214PTpk
 1    and furnished by such purchaser; (4) if the product  sold  is
 2    special  fuel  and if the sale is made to a licensed supplier
 3    or to a licensed distributor under conditions  which  qualify
 4    the  sale for tax exemption under Section 6a of this Act, the
 5    amount sold and the name, address and license number of  such
 6    purchaser;  (5) if a sale of special fuel is made to a person
 7    where delivery is made outside of this State,  the  name  and
 8    address  of such purchaser and the point of delivery together
 9    with the date and amount of invoiced gallons  delivered;  (6)
10    if  a  sale  of  special fuel is made to someone other than a
11    licensed distributor, licensed supplier, or a  licensed  bulk
12    user  with  a permit, for a use other than in motor vehicles,
13    by making a specific notation thereof on the invoice or sales
14    slip  covering  that  sale  and  obtaining  such   supporting
15    documentation  as  may be required by the Department; and (7)
16    if a sale of special fuel is made to  a  licensed  bulk  user
17    with  a  valid  unrevoked permit to purchase special fuel tax
18    exempt.
19    (Source: P.A. 87-149; 88-194.)

20        (35 ILCS 505/5b) (from Ch. 120, par. 421b)
21        Sec. 5b. A person holding a valid  unrevoked  license  to
22    act  as  a  bulk  user  of  special fuel shall make an annual
23    return to the Department, showing an  itemized  statement  of
24    the  number  of  invoiced  gallons of special fuel purchased,
25    acquired or received during the preceding calendar year. Such
26    return for a calendar year shall be due the 15th day  of  the
27    fourth month following the end of the calendar year.  Failure
28    to file the return required by this Section shall result in a
29    penalty of $75.
30        A  person  whose license to act as a bulk user of special
31    fuel has been revoked shall make a return to  the  Department
32    covering  the  period from the date of the last return to the
33    date of the revocation of the license, which return shall  be
 
                            -55-               LRB9102214PTpk
 1    delivered  to  the Department not later than 10 days from the
 2    date of the revocation or termination of the license of  such
 3    bulk user. Said return shall in all other respects be subject
 4    to  the  same  provisions  and  conditions as returns by bulk
 5    users licensed under the provisions of this Act.
 6        The records, waybills and supporting  documents  kept  by
 7    railroads  and other common carriers in the regular course of
 8    business shall be prima facie evidence of  the  contents  and
 9    receipt of cars or tanks covered by such records, waybills or
10    supporting documents.
11        If  the Department has reason to believe and does believe
12    that the amount shown on the return as received is incorrect,
13    or that an amount of special fuel required to be reported  to
14    the  Department  by  bulk  users  as  a receipt, has not been
15    reported as a receipt, the Department shall fix an amount for
16    such receipt according to its best judgment and  information,
17    which  amount so fixed by the Department shall be prima facie
18    correct.
19        All returns shall be made on forms prepared and furnished
20    by the Department and shall contain such other information as
21    the Department may reasonably require.
22    (Source: P.A. 83-1428.)

23        Section  50.  The  Coin-Operated  Amusement  Device   and
24    Redemption  Machine  Tax Act is amended by changing Section 2
25    as follows:

26        (35 ILCS 510/2) (from Ch. 120, par. 481b.2)
27        Sec. 2. (a) Any person, firm, limited liability  company,
28    or corporation which displays any device described in Section
29    1,  to be played or operated by the public at any place owned
30    or  leased  by  any  such  person,  firm,  limited  liability
31    company,  or  corporation,  shall  before  he  displays  such
32    device, file in the Office of the Department  of  Revenue  an
 
                            -56-               LRB9102214PTpk
 1    application  for a license for such device properly sworn to,
 2    setting forth his name and address, with a brief  description
 3    of  the  device  to  be displayed and the premises where such
 4    device will be located, together  with  such  other  relevant
 5    data   as   the  Department  of  Revenue  may  require.  Such
 6    application  for  a  license  shall  be  accompanied  by  the
 7    required license tax. Such license tax shall be paid  to  the
 8    Department of Revenue of the State of Illinois and all monies
 9    received by the Department of Revenue under this Act shall be
10    paid into the General Revenue Fund in the State Treasury. The
11    Department of Revenue shall supply and deliver to the person,
12    firm,   limited   liability  company,  or  corporation  which
13    displays any device described in Section 1,  charges  prepaid
14    and  without  additional  cost, one license tag for each such
15    device on which an application is made, stating the year  for
16    which  issued.  Such  license tag shall thereupon be securely
17    affixed to such device.
18        (b)  If an amount of tax, penalty, or interest  has  been
19    paid  in  error  to  the  Department, the taxpayer may file a
20    claim for credit or refund with the  Department.   If  it  is
21    determined  that the Department must issue a credit or refund
22    under this Act, the Department may first apply the amount  of
23    the  credit or refund due against any amount of tax, penalty,
24    or interest due under this Act from the taxpayer entitled  to
25    the  credit  or  refund.    If  proceedings  are  pending  to
26    determine  if any tax, penalty, or interest is due under this
27    Act from the taxpayer, the Department may  withhold  issuance
28    of  the  credit  or  refund  pending the final disposition of
29    those proceedings and may apply that credit or refund against
30    any amount determined to be due to the Department as a result
31    of those proceedings.  The balance, if any, of the credit  or
32    refund shall be paid to the taxpayer.
33        If no tax, penalty, or interest is due and no proceedings
34    are  pending to determine whether the taxpayer is indebted to
 
                            -57-               LRB9102214PTpk
 1    the Department for tax,  penalty,  or  interest,  the  credit
 2    memorandum or refund shall be issued to the taxpayer; or, the
 3    credit memorandum may be assigned by the taxpayer, subject to
 4    reasonable  rules  of the Department, to any other person who
 5    is subject  to  this  Act,  and  the  amount  of  the  credit
 6    memorandum  by  the  Department  against any tax, penalty, or
 7    interest due or  to  become  due  under  this  Act  from  the
 8    assignee.
 9        For  any  claim  for  credit  or  refund  filed  with the
10    Department on or after each July  1,  no  amount  erroneously
11    paid  more than 3 years before that July 1, shall be credited
12    or refunded.
13        A claim for credit or refund shall be  filed  on  a  form
14    provided by the Department.  As soon as practicable after any
15    claim  for  credit  or  refund is filed, the Department shall
16    determine the  amount  of  credit  or  refund  to  which  the
17    claimant  is  entitled  and shall notify the claimant of that
18    determination.
19        A claim for credit or refund  shall  be  filed  with  the
20    Department  on  the  date  it  is received by the Department.
21    Upon receipt of any claim for credit or  refund  filed  under
22    this  Section,  an  officer  or  employee  of the Department,
23    authorized by the Director of Revenue to acknowledge  receipt
24    of  such claims on behalf of the Department, shall deliver or
25    mail to the claimant or his duly authorized agent, a  written
26    receipt, acknowledging that the claim has been filed with the
27    Department,  describing  the  claim  in  sufficient detail to
28    identify it, and stating the date  on  which  the  claim  was
29    received  by  the  Department.   The written receipt shall be
30    prima facie evidence that the Department received  the  claim
31    described in the receipt and shall be prima facie evidence of
32    the  date when such claim was received by the Department.  In
33    the  absence  of  a  written  receipt,  the  records  of  the
34    Department as to whether a claim was received,  or  when  the
 
                            -58-               LRB9102214PTpk
 1    claim  was  received by the Department, shall be deemed to be
 2    prima facie correct in the event of any dispute  between  the
 3    claimant,  or his legal representative, and the Department on
 4    these issues.
 5        Any credit or refund that is allowed under  this  Article
 6    shall  bear  interest at the rate and in the manner specified
 7    in the Uniform Penalty and Interest Act.
 8        If  the  Department  determines  that  the  claimant   is
 9    entitled  to  a refund, the refund shall be made only from an
10    appropriation to the Department for  that  purpose.   If  the
11    amount appropriated is insufficient to pay claimants electing
12    to   receive  a  cash  refund,  the  Department  by  rule  or
13    regulation shall first provide for the payment of refunds  in
14    hardship cases as defined by the Department.
15    (Source: P.A. 88-194; 88-480; 88-670, eff. 12-2-94.)

16        Section  55.  The  Cannabis and Controlled Substances Tax
17    Act is amended by changing Section 16 as follows:

18        (35 ILCS 520/16) (from Ch. 120, par. 2166)
19        Sec. 16.  All  assessments  are  Jeopardy  Assessments  -
20    lien.
21        (a)  Assessment.    An   assessment   for  a  dealer  not
22    possessing valid stamps or  other  official  indicia  showing
23    that  the  tax  has  been paid shall be considered a jeopardy
24    assessment or collection, as provided by Section 1102 of  the
25    Illinois  Income Tax Act.  The Department shall determine and
26    assess a tax and applicable penalties and interest  according
27    to  the  best  judgment  and  information  available  to  the
28    Department,  which amount so fixed by the Department shall be
29    prima facie correct and shall be prima facie evidence of  the
30    correctness  of  the  amount  of  tax  due,  as shown in such
31    determination.  When, according  to  the  best  judgment  and
32    information  available  to  the Department with regard to all
 
                            -59-               LRB9102214PTpk
 1    real and personal property and  rights  to  property  of  the
 2    dealer,  there  is no reasonable expectation of collection of
 3    the amount of tax and penalty to be assessed, the  Department
 4    may  issue an assessment under this Section for the amount of
 5    tax without penalty.
 6        (b)  Filing  of  Lien.   Upon  issuance  of  a   jeopardy
 7    assessment as provided by subsection (a) of this Section, the
 8    Department  may  file a notice of jeopardy assessment lien in
 9    the office of  the  recorder  of  the  county  in  which  any
10    property  of the taxpayer may be located and shall notify the
11    taxpayer of such filing.
12        (c)  Protest.  If the taxpayer believes that he does  not
13    owe  some  or  all  of  the  amount  for  which  the jeopardy
14    assessment lien against him has been filed,  he  may  protest
15    within  20 days after being notified by the Department of the
16    filing  of  such  jeopardy  assessment  lien  and  request  a
17    hearing, whereupon the Department shall  hold  a  hearing  in
18    conformity with the provisions of Section 908 of the Illinois
19    Income  Tax  Act  and,  pursuant  thereto,  shall  notify the
20    taxpayer of its decision as to whether or not  such  jeopardy
21    assessment lien will be released.
22        After  the  expiration  of  the  period  within which the
23    person assessed may file an action for judicial review  under
24    the  Administrative  Review  Law  without  such  action being
25    filed, a certified copy of the final  assessment  or  revised
26    final  assessment  of  the  Department  may be filed with the
27    Circuit Court of the county in which the dealer  resides,  or
28    of Cook County in the case of a dealer who does not reside in
29    this  State, or in the county where the violation of this Act
30    took place. The certified copy of  the  final  assessment  or
31    revised   final   assessment   shall   be  accompanied  by  a
32    certification which recites facts that are sufficient to show
33    that  the  Department  complied   with   the   jurisdictional
34    requirements  of  the Act in arriving at its final assessment
 
                            -60-               LRB9102214PTpk
 1    or its revised final assessment and that the dealer had  this
 2    opportunity  for  an  administrative hearing and for judicial
 3    review, whether he availed himself or herself  of  either  or
 4    both  of  these  opportunities  or  not.   If  the  court  is
 5    satisfied    that    the   Department   complied   with   the
 6    jurisdictional requirements of the Act  in  arriving  at  its
 7    final assessment or its revised final assessment and that the
 8    taxpayer  had  his  opportunity for an administrative hearing
 9    and for judicial review, whether he availed himself of either
10    or both of these opportunities or not, the court shall render
11    judgment in favor of the Department and against the  taxpayer
12    for the amount shown to be due by the final assessment or the
13    revised final assessment, plus any interest which may be due,
14    and  such judgment shall be entered in the judgment docket of
15    the court.   Such  judgment  shall  bear  the  same  rate  of
16    interest  and  shall have the same effect as other judgments.
17    The judgment may be enforced,  and  all  laws  applicable  to
18    sales  for  the enforcement of a judgment shall be applicable
19    to sales made under such  judgments.   The  Department  shall
20    file   the  certified  copy  of  its  assessment,  as  herein
21    provided, with the Circuit Court within 2  years  after  such
22    assessment becomes final except when the taxpayer consents in
23    writing  to  an  extension  of such filing period, and except
24    that the time limitation period on the Department's right  to
25    file  the  certified  copy of its assessment with the Circuit
26    Court shall not run during any period of time  in  which  the
27    order of any court has the effect of enjoining or restraining
28    the  Department  from  filing  such  certified  copy  of  its
29    assessment with the Circuit Court.
30        If,  when  the  cause of action for a proceeding in court
31    accrues against a person, he or she is out of the State,  the
32    action  may  be  commenced  within  the times herein limited,
33    after his or her coming into or returning to the  State;  and
34    if, after the cause of action accrues, he or she departs from
 
                            -61-               LRB9102214PTpk
 1    and  remains out of the State, the time of his or her absence
 2    from the State, the time of his or her absence is no part  of
 3    the  time limited for the commencement of the action; but the
 4    foregoing provisions concerning absence from the State  shall
 5    not  apply  to  any  case  in which, at the time the cause of
 6    action accrues, the party against whom the  cause  of  action
 7    accrues  is  not  a  resident of this State.  The time within
 8    which a court action is to be  commenced  by  the  Department
 9    hereunder  shall  not  run from the date the taxpayer files a
10    petition in bankruptcy under the Federal Bankruptcy Act until
11    30 days after notice of  termination  or  expiration  of  the
12    automatic stay imposed by the Federal Bankruptcy Act.
13        No  claim  shall  be  filed  against  the  estate  of any
14    deceased person or any person under legal disability for  any
15    tax  or penalty or part of either, or interest, except in the
16    manner prescribed and within the time limited by the  Probate
17    Act of 1975, as amended.
18        The collection of tax or penalty or interest by any means
19    provided  for  herein  shall  not be a bar to any prosecution
20    under this Act.
21        In addition to any penalty provided for in this Act,  any
22    amount  of tax which is not paid when due shall bear interest
23    at the rate determined in accordance with the Uniform Penalty
24    and Interest Act, per month or fraction thereof from the date
25    when such tax becomes past due until such tax is  paid  or  a
26    judgment therefor is obtained by the Department.  If the time
27    for  making  or completing an audit of a taxpayer's books and
28    records is extended  with  the  taxpayer's  consent,  at  the
29    request  of and for the convenience of the Department, beyond
30    the date  on  which  the  statute  of  limitations  upon  the
31    issuance  of  a  notice  of  tax  liability by the Department
32    otherwise run, no interest shall accrue during the period  of
33    such  extension.   Interest  shall  be  collected in the same
34    manner and as part of the tax.
 
                            -62-               LRB9102214PTpk
 1        If the Department determines that an  amount  of  tax  or
 2    penalty  or interest was incorrectly assessed, whether as the
 3    result of  a  mistake  of  fact  or  an  error  of  law,  the
 4    Department  shall  waive  the  amount  of  tax  or penalty or
 5    interest that accrued due to the incorrect assessment.
 6    (Source: P.A. 90-655, eff. 7-30-98.)

 7        Section 60.  The Messages Tax Act is amended by  changing
 8    Section 6 as follows:

 9        (35 ILCS 610/6) (from Ch. 120, par. 467.6)
10        Sec.  6.  If  it appears, after claim therefor filed with
11    the Department, that an amount of tax or penalty or  interest
12    has  been  paid  which was not due under this Act, whether as
13    the result of a mistake of fact or an error of law, except as
14    hereinafter provided,  then  the  Department  shall  issue  a
15    credit  memorandum  or  refund  to  the  person  who made the
16    erroneous payment or, if that person has  died  or  become  a
17    person   under   legal   disability,  to  his  or  her  legal
18    representative, as such.
19        If it is determined that the Department  should  issue  a
20    credit  or  refund  under  this Act, the Department may first
21    apply the amount thereof against any amount of tax or penalty
22    or interest due hereunder from the person  entitled  to  such
23    credit  or  refund.  For  this  purpose,  if  proceedings are
24    pending to determine whether or not any  tax  or  penalty  or
25    interest  is  due  under  this  Act  from  such  person,  the
26    Department  may  withhold  issuance  of  the credit or refund
27    pending the final disposition of  such  proceedings  and  may
28    apply  such  credit  or refund against any amount found to be
29    due to the Department as a result of  such  proceedings.  The
30    balance,  if  any, of the credit or refund shall be issued to
31    the person entitled thereto.
32        If no tax or penalty or interest is due and no proceeding
 
                            -63-               LRB9102214PTpk
 1    is pending to determine whether such person  is  indebted  to
 2    the  Department  for  tax  or penalty or interest, the credit
 3    memorandum or refund shall be issued to the claimant; or  (in
 4    the case of a credit memorandum) the credit memorandum may be
 5    assigned  and  set over by the lawful holder thereof, subject
 6    to reasonable rules of the Department, to  any  other  person
 7    who  is  subject to this Act, and the amount thereof shall be
 8    applied by the Department  against  any  tax  or  penalty  or
 9    interest  due  or  to  become  due  under  this Act from such
10    assignee.
11        As to any claim for  credit  or  refund  filed  with  the
12    Department  on or after each January 1 and July 1, no amounts
13    erroneously paid more than 3 years prior to  such  January  1
14    and  July  1,  respectively,  shall  be credited or refunded,
15    except that if both the  Department  and  the  taxpayer  have
16    agreed  to  an  extension  of  time  to issue a notice of tax
17    liability under this Act, the claim may be filed at any  time
18    prior to the expiration of the period agreed upon.
19        Claims  for  credit  or  refund shall be filed upon forms
20    provided by the Department. As soon as practicable after  any
21    claim  for  credit  or  refund is filed, the Department shall
22    examine the same and determine the amount of credit or refund
23    to which the  claimant  is  entitled  and  shall  notify  the
24    claimant  of  such determination, which amount shall be prima
25    facie correct.
26        Any credit or refund that is allowed under this Act shall
27    bear interest at the rate and in the manner specified in  the
28    Uniform Penalty and Interest Act.
29        In  case  the  Department determines that the claimant is
30    entitled to a refund, such refund shall  be  made  only  from
31    such  appropriation  as may be available for that purpose. If
32    it appears unlikely that the amount appropriated would permit
33    everyone having a claim allowed during the period covered  by
34    such  appropriation  to  elect  to receive a cash refund, the
 
                            -64-               LRB9102214PTpk
 1    Department, by rule or  regulation,  shall  provide  for  the
 2    payment  of  refunds  in hardship cases and shall define what
 3    types of cases qualify as hardship cases.
 4    (Source: P.A. 90-491, eff. 1-1-98.)

 5        Section 65.  The  Gas  Revenue  Tax  Act  is  amended  by
 6    changing Section 6 as follows:

 7        (35 ILCS 615/6) (from Ch. 120, par. 467.21)
 8        Sec.  6.  If  it appears, after claim therefor filed with
 9    the Department, that an amount of tax or penalty or  interest
10    has  been  paid  which was not due under this Act, whether as
11    the result of a mistake of fact or an error of law, except as
12    hereinafter provided,  then  the  Department  shall  issue  a
13    credit  memorandum  or  refund  to  the  person  who made the
14    erroneous payment or, if that person has  died  or  become  a
15    person   under   legal   disability,  to  his  or  her  legal
16    representative, as such.
17        If it is determined that the Department  should  issue  a
18    credit  or  refund  under  this Act, the Department may first
19    apply the amount thereof against any amount of tax or penalty
20    or interest due hereunder from the person  entitled  to  such
21    credit  or  refund.  For  this  purpose,  if  proceedings are
22    pending to determine whether or not any  tax  or  penalty  or
23    interest  is  due  under  this  Act  from  such  person,  the
24    Department  may  withhold  issuance  of  the credit or refund
25    pending the final disposition of  such  proceedings  and  may
26    apply  such  credit  or refund against any amount found to be
27    due to the Department as a result of  such  proceedings.  The
28    balance,  if  any, of the credit or refund shall be issued to
29    the person entitled thereto.
30        If no tax or penalty or interest is due and no proceeding
31    is pending to determine whether such person  is  indebted  to
32    the  Department  for  tax  or penalty or interest, the credit
 
                            -65-               LRB9102214PTpk
 1    memorandum or refund shall be issued to the claimant; or  (in
 2    the case of a credit memorandum) the credit memorandum may be
 3    assigned  and  set over by the lawful holder thereof, subject
 4    to reasonable rules of the Department, to  any  other  person
 5    who  is  subject to this Act, and the amount thereof shall be
 6    applied by the Department  against  any  tax  or  penalty  or
 7    interest  due  or  to  become  due  under  this Act from such
 8    assignee.
 9        As to any claim for  credit  or  refund  filed  with  the
10    Department  on or after each January 1 and July 1, no amounts
11    erroneously paid more than 3 years prior to  such  January  1
12    and  July  1,  respectively,  shall  be credited or refunded,
13    except that if both the  Department  and  the  taxpayer  have
14    agreed  to  an  extension  of  time  to issue a notice of tax
15    liability under this Act, the claim may be filed at any  time
16    prior to the expiration of the period agreed upon.
17        Claims  for  credit  or  refund shall be filed upon forms
18    provided by the Department. As soon as practicable after  any
19    claim  for  credit  or  refund is filed, the Department shall
20    examine the same and determine the amount of credit or refund
21    to which the  claimant  is  entitled  and  shall  notify  the
22    claimant  of  such determination, which amount shall be prima
23    facie correct.
24        Any credit or refund that is allowed under this Act shall
25    bear interest at the rate and in the manner specified in  the
26    Uniform Penalty and Interest Act.
27        In  case  the  Department determines that the claimant is
28    entitled to a refund, such refund shall  be  made  only  from
29    such  appropriation  as may be available for that purpose. If
30    it appears unlikely that the amount appropriated would permit
31    everyone having a claim allowed during the period covered  by
32    such  appropriation  to  elect  to receive a cash refund, the
33    Department, by rule or  regulation,  shall  provide  for  the
34    payment  of  refunds  in hardship cases and shall define what
 
                            -66-               LRB9102214PTpk
 1    types of cases qualify as hardship cases.
 2    (Source: P.A. 90-491, eff. 1-1-98.)

 3        Section 70.  The Public Utilities Revenue Act is  amended
 4    by changing Section 6 as follows:

 5        (35 ILCS 620/6) (from Ch. 120, par. 473)
 6        Sec.  6.  If  it appears, after claim therefor filed with
 7    the Department, that an amount of tax or penalty or  interest
 8    has  been  paid  which was not due under this Act, whether as
 9    the result of a mistake of fact or an error of law, except as
10    hereinafter provided,  then  the  Department  shall  issue  a
11    credit  memorandum  or  refund  to  the  person  who made the
12    erroneous payment or, if that person has  died  or  become  a
13    person   under   legal   disability,  to  his  or  her  legal
14    representative, as such.
15        If it is determined that the Department  should  issue  a
16    credit  or  refund  under  this Act, the Department may first
17    apply the amount thereof against any amount of tax or penalty
18    or interest due hereunder from the person  entitled  to  such
19    credit  or  refund.  Any  credit  memorandum issued under the
20    Electricity  Excise  Tax  Law  may  be  applied  against  any
21    liability  incurred  under  the  tax  previously  imposed  by
22    Section 2 of this Act.  For this purpose, if proceedings  are
23    pending  to  determine  whether  or not any tax or penalty or
24    interest  is  due  under  this  Act  from  such  person,  the
25    Department may withhold issuance  of  the  credit  or  refund
26    pending  the  final  disposition  of such proceedings and may
27    apply such credit or refund against any amount  found  to  be
28    due  to  the  Department as a result of such proceedings. The
29    balance, if any, of the credit or refund shall be  issued  to
30    the person entitled thereto.
31        If no tax or penalty or interest is due and no proceeding
32    is  pending  to  determine whether such person is indebted to
 
                            -67-               LRB9102214PTpk
 1    the Department for tax or penalty  or  interest,  the  credit
 2    memorandum  or refund shall be issued to the claimant; or (in
 3    the case of a credit memorandum) the credit memorandum may be
 4    assigned and set over by the lawful holder  thereof,  subject
 5    to  reasonable  rules  of the Department, to any other person
 6    who is subject to this Act, and the amount thereof  shall  be
 7    applied  by  the  Department  against  any  tax or penalty or
 8    interest due or to  become  due  under  this  Act  from  such
 9    assignee.
10        As  to  any  claim  for  credit  or refund filed with the
11    Department on or after each January 1 and July 1, no  amounts
12    erroneously  paid  more  than 3 years prior to such January 1
13    and July 1, respectively,  shall  be  credited  or  refunded,
14    except  that  if  both  the  Department and the taxpayer have
15    agreed to an extension of time  to  issue  a  notice  of  tax
16    liability  under this Act, the claim may be filed at any time
17    prior to the expiration of the period agreed upon.
18        Claims for credit or refund shall  be  filed  upon  forms
19    provided  by the Department. As soon as practicable after any
20    claim for credit or refund is  filed,  the  Department  shall
21    examine the same and determine the amount of credit or refund
22    to  which  the  claimant  is  entitled  and  shall notify the
23    claimant of such determination, which amount shall  be  prima
24    facie correct.
25        Any credit or refund that is allowed under this Act shall
26    bear  interest at the rate and in the manner specified in the
27    Uniform Penalty and Interest Act.
28        In case the Department determines that  the  claimant  is
29    entitled  to  a  refund,  such refund shall be made only from
30    such appropriation as may be available for that  purpose.  If
31    it appears unlikely that the amount appropriated would permit
32    everyone  having a claim allowed during the period covered by
33    such appropriation to elect to receive  a  cash  refund,  the
34    Department,  by  rule  or  regulation,  shall provide for the
 
                            -68-               LRB9102214PTpk
 1    payment of refunds in hardship cases and  shall  define  what
 2    types of cases qualify as hardship cases.
 3    (Source: P.A. 90-491, eff. 1-1-98; 90-624, eff. 7-10-98.)

 4        Section  75.  The  Water Company Invested Capital Tax Act
 5    is amended by changing Section 6 as follows:

 6        (35 ILCS 625/6) (from Ch. 120, par. 1416)
 7        Sec. 6.  If it appears, after claim therefor  filed  with
 8    the  Department, that an amount of tax or penalty or interest
 9    has been paid which was not due under this  Act,  whether  as
10    the result of a mistake of fact or an error of law, except as
11    hereinafter  provided,  then  the  Department  shall  issue a
12    credit memorandum or  refund  to  the  person  who  made  the
13    erroneous  payment  or,  if  that  person  has died or become
14    incompetent, to his legal representative, as such.
15        If it is determined that the Department  should  issue  a
16    credit  or  refund  under  this Act, the Department may first
17    apply the amount thereof against any amount of tax or penalty
18    or interest due hereunder from the person  entitled  to  such
19    credit  or  refund.  For  this  purpose,  if  proceedings are
20    pending to determine whether or not any  tax  or  penalty  or
21    interest  is  due  under  this  Act  from  such  person,  the
22    Department  may  withhold  issuance  of  the credit or refund
23    pending the final disposition of  such  proceedings  and  may
24    apply  such  credit  or refund against any amount found to be
25    due to the Department as a result of  such  proceedings.  The
26    balance,  if  any, of the credit or refund shall be issued to
27    the person entitled thereto.
28        If no tax or penalty or interest is due and no proceeding
29    is pending to determine whether such person  is  indebted  to
30    the  Department  for  tax  or penalty or interest, the credit
31    memorandum or refund shall be issued to the claimant; or  (in
32    the case of a credit memorandum) the credit memorandum may be
 
                            -69-               LRB9102214PTpk
 1    assigned  and  set over by the lawful holder thereof, subject
 2    to reasonable rules of the Department, to  any  other  person
 3    who  is  subject to this Act, and the amount thereof shall be
 4    applied by the Department  against  any  tax  or  penalty  or
 5    interest  due  or  to  become  due  under  this Act from such
 6    assignee.
 7        As to any claim for  credit  or  refund  filed  with  the
 8    Department  on or after each January 1 and July 1, no amounts
 9    erroneously paid more than 3 years prior to  such  January  1
10    and  July  1,  respectively,  shall  be credited or refunded,
11    except that if both the  Department  and  the  taxpayer  have
12    agreed  to  an  extension  of  time  to issue a notice of tax
13    liability under this Act, the claim may be filed at any  time
14    prior to the expiration of the period agreed upon.
15        Claims  for  credit  or  refund shall be filed upon forms
16    provided by the Department. As soon as practicable after  any
17    claim  for  credit  or  refund is filed, the Department shall
18    examine the same and determine the amount of credit or refund
19    to which the  claimant  is  entitled  and  shall  notify  the
20    claimant  of  such determination, which amount shall be prima
21    facie correct.
22        Any credit or refund that is allowed under  this  Section
23    shall  bear  interest at the rate and in the manner specified
24    in the Uniform Penalty and Interest Act.
25        In case the Department determines that  the  claimant  is
26    entitled  to  a  refund,  such refund shall be made only from
27    such appropriation as may be available for that  purpose.  If
28    it appears unlikely that the amount appropriated would permit
29    everyone  having a claim allowed during the period covered by
30    such appropriation to elect to receive  a  cash  refund,  the
31    Department,  by  rule  or  regulation,  shall provide for the
32    payment of refunds in hardship cases and  shall  define  what
33    types of cases qualify as hardship cases.
34    (Source: P.A. 90-491, eff. 1-1-98.)
 
                            -70-               LRB9102214PTpk
 1        Section  80.  The  Telecommunications  Excise  Tax Act is
 2    amended by changing Section 10 as follows:

 3        (35 ILCS 630/10) (from Ch. 120, par. 2010)
 4        Sec. 10.  If it shall appear that an  amount  of  tax  or
 5    penalty  or  interest has been paid in error hereunder to the
 6    Department by a taxpayer, as distinguished from the retailer,
 7    whether such amount be paid through a mistake of fact  or  an
 8    error  of  law,  such taxpayer may file a claim for credit or
 9    refund with the Department.   If  it  shall  appear  that  an
10    amount  of  tax or penalty or interest has been paid in error
11    to the Department hereunder by a retailer who is required  or
12    authorized  to  collect  and  remit  the  tax imposed by this
13    Article, whether such amount be paid  through  a  mistake  of
14    fact  or  an error of law, such retailer may file a claim for
15    credit or refund with the Department, provided that no credit
16    or refund shall be allowed for any amount paid  by  any  such
17    retailer  unless  it  shall appear that he bore the burden of
18    such amount and did not shift the burden  thereof  to  anyone
19    else,  or unless it shall appear that he or she or his or her
20    legal representative has unconditionally repaid  such  amount
21    to  his  customer (1) who bore the burden thereof and has not
22    shifted such burden directly  or  indirectly  in  any  manner
23    whatsoever; or (2) who, if he or she shifted such burden, has
24    repaid   unconditionally  such  amount  to  his  or  her  own
25    customer;  and  (3)  who  is  not  entitled  to  receive  any
26    reimbursement therefor from any other source  than  from  his
27    retailer,  nor  to  be  relieved  of such burden in any other
28    manner whatsoever.
29        If it is determined that the Department  should  issue  a
30    credit or refund under this Article, the Department may first
31    apply the amount thereof against any amount of tax or penalty
32    or  interest  due  hereunder from the person entitled to such
33    credit or refund.   For  this  purpose,  if  proceedings  are
 
                            -71-               LRB9102214PTpk
 1    pending  to  determine  whether  or not any tax or penalty or
 2    interest is due under this  Article  from  such  person,  the
 3    Department  may  withhold  issuance  of  the credit or refund
 4    pending the final disposition of  such  proceedings  and  may
 5    apply  such  credit  or refund against any amount found to be
 6    due to the Department as a result of such  proceedings.   The
 7    balance,  if  any, of the credit or refund shall be issued to
 8    the person entitled thereto.
 9        If no tax or penalty or interest is due and no proceeding
10    is pending to determine whether such person  is  indebted  to
11    the  Department  for  tax  or penalty or interest, the credit
12    memorandum or refund shall be issued to the claimant; or  (in
13    the case of a credit memorandum) the credit memorandum may be
14    assigned  and  set over by the lawful holder thereof, subject
15    to reasonable rules of the Department, to  any  other  person
16    who  is subject to this Article, and the amount thereof shall
17    be applied by the Department against any tax  or  penalty  or
18    interest  due  or  to become due under this Article from such
19    assignee.
20        As to any claim for  credit  or  refund  filed  with  the
21    Department  on or after each January 1 and July 1, no amounts
22    erroneously paid more than three years prior to such  January
23    1  and  July  1, respectively, shall be credited or refunded,
24    except that if both the  Department  and  the  taxpayer  have
25    agreed  to  an  extension  of  time  to issue a notice of tax
26    liability under this Act, the claim may be filed at any  time
27    prior to the expiration of the period agreed upon.
28        Claims  for  credit  or  refund shall be filed upon forms
29    provided by the Department.  As soon as practicable after any
30    claim for credit or refund is  filed,  the  Department  shall
31    examine the same and determine the amount of credit or refund
32    to  which  the  claimant  is  entitled  and  shall notify the
33    claimant of such determination, which amount shall  be  prima
34    facie correct.
 
                            -72-               LRB9102214PTpk
 1        A  claim for credit or refund shall be considered to have
 2    been filed with the Department on the date upon which  it  is
 3    received  by  the  Department.  Upon receipt of any claim for
 4    credit or refund filed under this  Article,  any  officer  or
 5    employee  of  the  Department,  authorized  in writing by the
 6    Director of Revenue to acknowledge receipt of such claims  on
 7    behalf  of  the  Department,  shall  execute on behalf of the
 8    Department, and shall deliver or mail to the claimant or  his
 9    duly  authorized agent, a written receipt, acknowledging that
10    the claim has been filed with the Department, describing  the
11    claim  in  sufficient  detail  to identify it and stating the
12    date upon which the claim was  received  by  the  Department.
13    Such  written  receipt shall be prima facie evidence that the
14    Department received the claim described in such  receipt  and
15    shall be prima facie evidence of the date when such claim was
16    received by the Department.  In the absence of such a written
17    receipt,  the  records of the Department as to when the claim
18    was received by the Department, or as to whether or  not  the
19    claim  was received at all by the Department, shall be deemed
20    to be prima facie correct upon these questions in  the  event
21    of  any  dispute  between  the  claimant (or his or her legal
22    representative)   and   the   Department   concerning   these
23    questions.
24        Any credit or refund that is allowed under  this  Article
25    shall  bear  interest at the rate and in the manner specified
26    in the Uniform Penalty and Interest Act.
27        In case the Department determines that  the  claimant  is
28    entitled  to  a  refund,  such refund shall be made only from
29    such appropriation as may be available for that purpose.   If
30    it appears unlikely that the amount appropriated would permit
31    everyone  having a claim allowed during the period covered by
32    such appropriation to elect to receive  a  cash  refund,  the
33    Department  by  rule  or  regulation  shall  provide  for the
34    payment of refunds in hardship cases and  shall  define  what
 
                            -73-               LRB9102214PTpk
 1    types of cases qualify as hardship cases.
 2        If  a retailer who has failed to pay tax on gross charges
 3    for telecommunications is required by the Department  to  pay
 4    such tax, such retailer, without filing any formal claim with
 5    the  Department, shall be allowed to take credit against such
 6    tax liability to the extent, if any, to which  such  retailer
 7    has  paid  the  tax  to  its vendor of the telecommunications
 8    which such retailer purchased and used  for  resale,  and  no
 9    penalty  or interest shall be charged to such retailer on the
10    amount of such credit.  However, when such credit is  allowed
11    to  the  retailer  by the Department, the vendor is precluded
12    from refunding any of the tax to the retailer  and  filing  a
13    claim  for  credit  or  refund  with respect thereto with the
14    Department.  The provisions of this  Section  added  by  this
15    amendatory  Act  of  1988  shall  be  applied  retroactively,
16    regardless of the date of the transaction.
17    (Source: P.A. 90-491, eff. 1-1-98.)

18        Section  85.  The  Uniform  Penalty  and  Interest Act is
19    amended by changing Sections 3-3 and 3-7 as follows:

20        (35 ILCS 735/3-3) (from Ch. 120, par. 2603-3)
21        Sec. 3-3.  Penalty for failure to file or pay.
22        (a)  This subsection (a) is applicable before January  1,
23    1996.  A penalty of 5% of the tax required to be shown due on
24    a  return shall be imposed for failure to file the tax return
25    on or before the due date prescribed  for  filing  determined
26    with regard for any extension of time for filing (penalty for
27    late  filing  or  nonfiling).  If any unprocessable return is
28    corrected and filed  within  21  days  after  notice  by  the
29    Department,  the  late  filing or nonfiling penalty shall not
30    apply.  If a penalty for late filing or nonfiling is  imposed
31    in  addition to a penalty for late payment, the total penalty
32    due shall be the sum of  the  late  filing  penalty  and  the
 
                            -74-               LRB9102214PTpk
 1    applicable  late  payment penalty. Beginning on the effective
 2    date of this amendatory Act of 1995, in the case of any  type
 3    of  tax  return  required  to  be  filed more frequently than
 4    annually, when the failure to  file  the  tax  return  on  or
 5    before   the   date  prescribed  for  filing  (including  any
 6    extensions) is shown to be nonfraudulent and has not occurred
 7    in the 2 years immediately preceding the failure to  file  on
 8    the  prescribed  due  date,  the  penalty  imposed by section
 9    3-3(a) shall be abated.
10        (a-5)  This subsection (a-5) is applicable on  and  after
11    January 1, 1996. A penalty equal to 2% of the tax required to
12    be  shown  due  on  a return, up to a maximum amount of $250,
13    determined without regard to any part of the tax that is paid
14    on time or by any credit that was properly allowable  on  the
15    date  the  return  was required to be filed, shall be imposed
16    for failure to file the tax return on or before the due  date
17    prescribed   for   filing  determined  with  regard  for  any
18    extension of time for filing. However, if any return  is  not
19    filed  within 30 days after notice of nonfiling mailed by the
20    Department  to  the  last  known  address  of  the   taxpayer
21    contained in Department records, an additional penalty amount
22    shall  be  imposed  equal to the greater of $250 or 2% of the
23    tax shown on the return.   However,  the  additional  penalty
24    amount may not exceed $5,000 and is determined without regard
25    to  any part of the tax that is paid on time or by any credit
26    that was properly  allowable  on  the  date  the  return  was
27    required  to be filed (penalty for late filing or nonfiling).
28    If any unprocessable return is corrected and filed within  30
29    days  after  notice  by  the  Department,  the late filing or
30    nonfiling penalty shall not apply.  If  a  penalty  for  late
31    filing  or  nonfiling is imposed in addition to a penalty for
32    late payment, the total penalty due shall be the sum  of  the
33    late  filing penalty and the applicable late payment penalty.
34    In the case of any type of tax return required  to  be  filed
 
                            -75-               LRB9102214PTpk
 1    more  frequently  than annually, when the failure to file the
 2    tax return on  or  before  the  date  prescribed  for  filing
 3    (including  any  extensions) is shown to be nonfraudulent and
 4    has not occurred in the 2  years  immediately  preceding  the
 5    failure  to  file  on  the  prescribed  due date, the penalty
 6    imposed by section 3-3(a) shall be abated.
 7        (b)  This subsection  is  applicable  before  January  1,
 8    1998.  A penalty of 15% of the tax shown on the return or the
 9    tax required to be shown due on the return shall  be  imposed
10    for failure to pay:
11             (1)  the  tax  shown  due on the return on or before
12        the due date prescribed  for  payment  of  that  tax,  an
13        amount  of  underpayment  of  estimated tax, or an amount
14        that is reported in  an  amended  return  other  than  an
15        amended return timely filed as required by subsection (b)
16        of  Section  506  of the Illinois Income Tax Act (penalty
17        for late payment or nonpayment of admitted liability); or
18             (2)  the full amount of any tax required to be shown
19        due on a return and which is not shown (penalty for  late
20        payment or nonpayment of additional liability), within 30
21        days  after  a  notice  of  arithmetic  error, notice and
22        demand,  or  a  final  assessment  is   issued   by   the
23        Department.  In  the  case  of a final assessment arising
24        following a protest and hearing, the 30-day period  shall
25        not  begin  until  all proceedings in court for review of
26        the final assessment have terminated or  the  period  for
27        obtaining  a review has expired without proceedings for a
28        review having been instituted.  In the case of  a  notice
29        of  tax liability that becomes a final assessment without
30        a protest and  hearing,  the  penalty  provided  in  this
31        paragraph  (2)  shall be imposed at the expiration of the
32        period provided for the filing of a protest.
33        (b-5)  This subsection is applicable on and after January
34    1, 1998.  A penalty of 20% of the tax shown on the return  or
 
                            -76-               LRB9102214PTpk
 1    the  tax  required  to  be  shown  due on the return shall be
 2    imposed for failure to pay:
 3             (1)  the tax shown due on the return  on  or  before
 4        the  due  date  prescribed  for  payment  of that tax, an
 5        amount of underpayment of estimated  tax,  or  an  amount
 6        that  is  reported  in  an  amended  return other than an
 7        amended return timely filed as required by subsection (b)
 8        of Section 506 of the Illinois Income  Tax  Act  (penalty
 9        for late payment or nonpayment of admitted liability); or
10             (2)  the full amount of any tax required to be shown
11        due  on a return and which is not shown (penalty for late
12        payment or nonpayment of additional liability), within 30
13        days after a  notice  of  arithmetic  error,  notice  and
14        demand,   or   a   final  assessment  is  issued  by  the
15        Department. In the case of  a  final  assessment  arising
16        following  a protest and hearing, the 30-day period shall
17        not begin until all proceedings in court  for  review  of
18        the  final  assessment  have terminated or the period for
19        obtaining a review has expired without proceedings for  a
20        review  having  been instituted.  In the case of a notice
21        of tax liability that becomes a final assessment  without
22        a  protest  and  hearing,  the  penalty  provided in this
23        paragraph (2) shall be imposed at the expiration  of  the
24        period provided for the filing of a protest.
25        (c)  For  purposes  of  the  late  payment penalties, the
26    basis of the penalty shall be the tax shown or required to be
27    shown on a return, whichever is applicable,  reduced  by  any
28    part of the tax which is paid on time and by any credit which
29    was properly allowable on the date the return was required to
30    be filed.
31        (d)  A penalty shall be applied to the tax required to be
32    shown  even  if that amount is less than the tax shown on the
33    return.
34        (e)  If both a subsection (b)(1) penalty and a subsection
 
                            -77-               LRB9102214PTpk
 1    (b)(2) penalty are assessed  against  the  same  return,  the
 2    subsection  (b)(2) penalty shall be assessed against only the
 3    additional tax found to be due.
 4        (f)  If the taxpayer has failed to file the  return,  the
 5    Department  shall  determine the correct tax according to its
 6    best judgment and information, which amount  shall  be  prima
 7    facie evidence of the correctness of the tax due.
 8        (g)  The  time  within  which  to file a return or pay an
 9    amount of tax due without imposition of a  penalty  does  not
10    extend the time within which to file a protest to a notice of
11    tax liability or a notice of deficiency.
12        (h)  No  return  shall  be determined to be unprocessable
13    because of the omission of any information requested  on  the
14    return  pursuant to Section 39b53 of the Civil Administrative
15    Code of Illinois.
16    (Source: P.A. 89-379,  eff.  8-18-95;  89-436,  eff.  1-1-96;
17    90-491, eff. 1-1-98; 90-548, eff. 12-4-97.)

18        (35 ILCS 735/3-7) (from Ch. 120, par. 2603-7)
19        Sec. 3-7.  Personal Liability Penalty.
20        (a)  Any  officer  or employee of any taxpayer subject to
21    the provisions of a tax Act administered  by  the  Department
22    who  has the control, supervision or responsibility of filing
23    returns and making payment of the amount  of  any  trust  tax
24    imposed in accordance with that Act and who wilfully fails to
25    file  the  return  or  make  the payment to the Department or
26    wilfully attempts in any other manner to evade or defeat  the
27    tax  shall  be  personally  liable for a penalty equal to the
28    total amount of tax unpaid by the taxpayer including interest
29    and penalties  thereon.  The  Department  shall  determine  a
30    penalty due under this Section according to its best judgment
31    and  information, and that determination shall be prima facie
32    correct and shall be prima facie evidence of  a  penalty  due
33    under  this  Section.   Proof  of  that  determination by the
 
                            -78-               LRB9102214PTpk
 1    Department shall be made at any hearing before it or  in  any
 2    legal  proceeding  by reproduced copy or computer printout of
 3    the Department's record relating thereto in the name  of  the
 4    Department  under the certificate of the Director of Revenue.
 5    If reproduced copies of the Department's records are  offered
 6    as  proof  of  that  determination, the Director must certify
 7    that those copies are true and exact  copies  of  records  on
 8    file  with  the  Department.   If  computer print-outs of the
 9    Department's  records  are   offered   as   proof   of   such
10    determination,  the Director must certify that those computer
11    print-outs are true  and  exact  representations  of  records
12    properly   entered   into   standard   electronic   computing
13    equipment,   in   the  regular  course  of  the  Department's
14    business, at or reasonably near the time of the occurrence of
15    the   facts   recorded,   from   trustworthy   and   reliable
16    information.  That certified  reproduced  copy  or  certified
17    computer  print-out  shall without further proof, be admitted
18    into  evidence  before  the  Department  or  in   any   legal
19    proceeding  and shall be prima facie proof of the correctness
20    of the amount of tax or penalty due.
21        (b)  The Department  shall  issue  a  notice  of  penalty
22    liability  for  the amount claimed by the Department pursuant
23    to this Section.  Procedures for  protest  and  review  of  a
24    notice  of  penalty liability issued pursuant to this Section
25    and assessment of the penalty due hereunder shall be the same
26    as those prescribed for protest and review of a notice of tax
27    liability or a notice of deficiency, as the case may be,  and
28    the  assessment  of tax liability under the Act imposing that
29    liability.
30        (b-5)  Any   person   filing   an   action   under    the
31    Administrative  Review  Law  to  review a final assessment or
32    revised  final  assessment  (except  a  final  assessment  or
33    revised final assessment relating to any trust tax imposed in
34    accordance with the Illinois Income Tax Act)  issued  by  the
 
                            -79-               LRB9102214PTpk
 1    Department  under  this  Section  shall, within 20 days after
 2    filing the complaint, file a bond with  good  and  sufficient
 3    surety  or  sureties residing in this State or licensed to do
 4    business in this State, or instead of bond, obtain  an  order
 5    from  the court imposing a lien upon the plaintiff's property
 6    as hereinafter provided.  If the person filing the  complaint
 7    fails  to comply with this bonding requirement within 20 days
 8    after filing the  complaint,  the  Department  shall  file  a
 9    motion  to  dismiss  and  the  court shall dismiss the action
10    unless the person filing the action complies with the bonding
11    requirements set out with this provision within 30 days after
12    the filing of the Department's motion to dismiss.
13        Upon dismissal of a complaint for failure to comply  with
14    this  subsection,  the court shall enter judgment against the
15    taxpayer and in favor of the Department in the amount of  the
16    final  assessment  or revised final assessment, together with
17    any interest that has accrued since the Department issued the
18    final assessment or revised final assessment, and for  costs.
19    The  judgment  is  enforceable  as  other  judgments  for the
20    payment of money.
21        The amount of the bond shall be fixed and approved by the
22    court, but shall not be less than the amount of the  tax  and
23    penalty  claimed  to  be  due  by the Department in its final
24    assessment or revised final assessment to the  person  filing
25    the bond, plus the amount of interest due from that person to
26    the  Department  at  the  time when the Department issued its
27    final assessment or revised final assessment to that  person.
28    The  bond  must  be  executed  in favor of the Department and
29    conditioned on the taxpayer's payment within  30  days  after
30    termination  of  the  proceedings  for judicial review of the
31    amount of tax, penalty, and interest found by the court to be
32    due in those proceedings.  The bond, when filed and approved,
33    is, from that time until 2 years  after  termination  of  the
34    proceedings for judicial review in which the bond is filed, a
 
                            -80-               LRB9102214PTpk
 1    lien  against the real estate situated in the county in which
 2    the bond is filed of the person filing the bond  and  of  the
 3    surety  or  sureties  on the bond, until the condition of the
 4    bond is complied with  or  until  the  bond  is  canceled  as
 5    provided  in  this  subsection.  The  lien  does  not  apply,
 6    however,  to  the  real  property  of a corporate surety duly
 7    licensed to do business in this State. If the  person  filing
 8    the  bond fails to keep its condition, the bond is forfeited,
 9    and the Department may institute an action upon the  bond  in
10    its own name for the entire amount of the bond and costs.  An
11    action  upon  the  bond  is  in  addition to any other remedy
12    provided by law.  If the person filing the bond complies with
13    its condition or if, in the proceedings for  judicial  review
14    in which the bond is filed, the court determines that no tax,
15    penalty,  or  interest  is due, the bond shall be canceled by
16    the issuer of the bond.
17        If  the  court  finds  in  a  particular  case  that  the
18    plaintiff cannot furnish a satisfactory  surety  or  sureties
19    for  the  kind of bond required in this subsection, the court
20    may relieve the plaintiff of the obligation of filing a  bond
21    if,  upon  the timely application of the plaintiff for a lien
22    in place of a bond  and  accompanying  proof,  the  court  is
23    satisfied  that a lien would secure the assessment as well as
24    would a bond.  Upon that finding, the court  shall  enter  an
25    order  subjecting  the plaintiff's real and personal property
26    (including subsequently acquired property)  situated  in  the
27    county  in  which  the order is entered to a lien in favor of
28    the Department.  The lien shall be for the amount of the  tax
29    and  penalty claimed to be due by the Department in its final
30    assessment or revised final assessment, plus  the  amount  of
31    interest  due  from that person to the Department at the time
32    when the Department issued its final  assessment  or  revised
33    final  assessment  to  that  person.  The lien shall continue
34    until the court determines in the  proceedings  for  judicial
 
                            -81-               LRB9102214PTpk
 1    review that no tax, penalty, or interest is due, or until the
 2    plaintiff  pays  to  the  Department  the  tax,  penalty, and
 3    interest secured by the lien.  In its discretion,  the  court
 4    may  impose  a lien regardless of the ratio of the taxpayer's
 5    assets to the final assessment or  revised  final  assessment
 6    plus the amount of the interest and penalty.  This subsection
 7    does  not give the Department a preference over the rights of
 8    a bona fide purchaser, mortgagee, judgment creditor, or other
 9    lien holder arising before the entry of  the  order  creating
10    the  lien in favor of the Department. "Bona fide", as used in
11    this subsection, does not  include  a  mortgage  of  real  or
12    personal property or other credit transaction that results in
13    the mortgagee or the holder of the security acting as trustee
14    for  unsecured  creditors  of  the  taxpayer who executed the
15    chattel or real property mortgage or the document  evidencing
16    the  credit transaction.  The lien is inferior to the lien of
17    general taxes, special assessments, and special taxes  levied
18    by  a  political  subdivision of this State.  The lien is not
19    effective against a purchaser with respect to an  item  in  a
20    retailer's  stock in trade purchased from the retailer in the
21    usual course of the retailer's business.  The lien may not be
22    enforced against  the  household  effects,  wearing  apparel,
23    books,  or  tools or implements of a trade or profession kept
24    for use by any person. The lien is not effective against real
25    property unless and until a certified copy or  memorandum  of
26    such order is recorded in the Office of the Recorder of Deeds
27    for  the county or counties in which the property is located.
28    The lien is not effective against real property  whose  title
29    is  registered  under the provisions of the Registered Titles
30    (Torrens) Act until the provisions of Section 85 of that  Act
31    are complied with.
32        Service  upon  the  Director  of Revenue or the Assistant
33    Director of Revenue of summons issued in an action to  review
34    a  final administrative decision of the Department is service
 
                            -82-               LRB9102214PTpk
 1    upon the Department. The Department shall certify the  record
 2    of its proceedings if the taxpayer pays to it 75¢ per page of
 3    testimony taken before the Department and 25¢ per page of all
 4    other  matters  contained  in  the  record, except that these
 5    charges may be waived when the Department is  satisfied  that
 6    the aggrieved party is a poor person who cannot afford to pay
 7    the  charges.   If  payment for the record is not made by the
 8    taxpayer within 30 days after notice from the  Department  or
 9    the  Attorney  General  of  the  cost, the court in which the
10    proceeding is pending, on motion  of  the  Department,  shall
11    dismiss  the  complaint and (when the administrative decision
12    as to which the action for judicial review  was  filed  is  a
13    final  assessment  or  revised  final assessment) shall enter
14    judgment against the taxpayer and in favor of the  Department
15    for  the  amount of tax and penalty shown by the Department's
16    final assessment or revised final assessment to be due,  plus
17    interest  as  provided for in this Act from the date when the
18    liability upon which the interest accrued  became  delinquent
19    until  the  entry  of the judgment in the action for judicial
20    review under the Administrative  Review  Law,  and  also  for
21    costs.
22        (c)  The personal liability imposed by this Section shall
23    survive  the  dissolution of a partnership, limited liability
24    company, or corporation.   No  notice  of  penalty  liability
25    shall  be  issued  after  the expiration of 3 years after the
26    date all proceedings in court for the review of any final  or
27    revised  final  assessments  issued  against a taxpayer which
28    constitute  the  basis  of  such   penalty   liability   have
29    terminated  or  the  time  for the taking thereof has expired
30    without  such  proceedings  being  instituted  or  after  the
31    expiration of 3 years after the date a return is  filed  with
32    the  Department  by  a  taxpayer  in  cases  where the return
33    constitutes the basis of  such  liability.    Interest  shall
34    continue  to accrue on that portion of the penalty imposed by
 
                            -83-               LRB9102214PTpk
 1    this Section which represents the tax unpaid by the  taxpayer
 2    at  the  same rate and in the same amount as interest accrues
 3    on the tax unpaid by the taxpayer.
 4        (d)  In addition to any other remedy provided for by  the
 5    laws   of  this  State,  and  provided  that  no  hearing  or
 6    proceeding for review is pending, any Section of  a  tax  Act
 7    which  provides  a means for collection of taxes shall in the
 8    same manner and to the same extent provide a  means  for  the
 9    collection  of  the  penalty  imposed  by  this Section.  The
10    procedures for the filing of an action for collection of  the
11    penalty  imposed  by  this Section shall be the same as those
12    prescribed by a tax Act for  the  filing  of  an  action  for
13    collection  of  the  tax  assessed  under that Act.  The time
14    limitation period on the Department's right to bring suit  to
15    recover  the  amount  of  such  tax,  or  portion thereof, or
16    penalty or interest from  such  person,  or  if  deceased  or
17    incompetent to file a claim thereof against his estate, shall
18    not run during:  (1) any period of time in which the order of
19    any  Court  has  the  effect  of enjoining or restraining the
20    Department from bringing such  suit  or  claim  against  such
21    person,  or  (2) any period of time in which the order of the
22    Court  has  the  effect  of  enjoining  or  restraining   the
23    Department  from  bringing  suit  or  initiating other proper
24    proceedings for the  collection  of  such  amounts  from  the
25    taxpayer,  or  (3) any period of time the person departs from
26    and remains out of the State; but  the  foregoing  provisions
27    concerning absence from the State shall not apply to any case
28    in which, at the time when a tax or penalty becomes due under
29    this  Act,  the  person  allegedly  liable  therefor is not a
30    resident of this State.
31        (e)  For  the  purposes  of  this  Section,  "officer  or
32    employee  of  any  taxpayer"  includes   a   partner   of   a
33    partnership,  a  manager  or  member  of  a limited liability
34    corporation, and a member of a registered  limited  liability
 
                            -84-               LRB9102214PTpk
 1    partnership.
 2        (f)  A  trust  tax  is  any  tax  for  which an amount is
 3    collected or withheld by a taxpayer from another person,  and
 4    any  tax  for  which an amount is required to be collected or
 5    withheld by a taxpayer from  another  person,  regardless  of
 6    whether it is in fact collected or withheld.
 7        (g)  The personal liability imposed by this Section is in
 8    addition  to liability incurred by a partner of a partnership
 9    or limited liability partnership resulting from the  issuance
10    of  a  notice  of  tax liability issued to the partnership or
11    limited liability partnership.
12    (Source: P.A. 89-399,  eff.  8-20-95;  89-626,  eff.  8-9-96;
13    90-458, eff. 8-17-97.)

14        Section   90.   The  Illinois  Public  Accounting  Act is
15    amended by changing Section 27 as follows:

16        (225 ILCS 450/27) (from Ch. 111, par. 5533)
17        Sec. 27. A public accountant shall not be required by any
18    court or by the  Department  of  Revenue  in  a  non-criminal
19    proceeding before it to divulge information or evidence which
20    has  been  obtained  by him in his confidential capacity as a
21    public accountant.  This  Section  shall  not  apply  to  any
22    investigation or hearing undertaken pursuant to this Act.
23    (Source: P.A. 83-291.)

24        Section  99.  Effective date.  This Act takes effect upon
25    becoming law.
 
                            -85-               LRB9102214PTpk
 1                                INDEX
 2               Statutes amended in order of appearance
 3    20 ILCS 2520/5            from Ch. 120, par. 2305
 4    20 ILCS 2520/5.5 new
 5    20 ILCS 2520/5.6 new
 6    35 ILCS 5/902             from Ch. 120, par. 9-902
 7    35 ILCS 5/904             from Ch. 120, par. 9-904
 8    35 ILCS 5/917             from Ch. 120, par. 9-917
 9    35 ILCS 5/917.5 new
10    35 ILCS 105/19            from Ch. 120, par. 439.19
11    35 ILCS 105/20            from Ch. 120, par. 439.20
12    35 ILCS 110/17            from Ch. 120, par. 439.47
13    35 ILCS 110/18            from Ch. 120, par. 439.48
14    35 ILCS 115/17            from Ch. 120, par. 439.117
15    35 ILCS 115/18            from Ch. 120, par. 439.118
16    35 ILCS 120/4             from Ch. 120, par. 443
17    35 ILCS 120/5             from Ch. 120, par. 444
18    35 ILCS 120/6a            from Ch. 120, par. 445a
19    35 ILCS 120/6b            from Ch. 120, par. 445b
20    35 ILCS 130/9a            from Ch. 120, par. 453.9a
21    35 ILCS 130/9b            from Ch. 120, par. 453.9b
22    35 ILCS 135/13            from Ch. 120, par. 453.43
23    35 ILCS 135/13a           from Ch. 120, par. 453.43a
24    35 ILCS 505/5             from Ch. 120, par. 421
25    35 ILCS 505/5a            from Ch. 120, par. 421a
26    35 ILCS 505/5b            from Ch. 120, par. 421b
27    35 ILCS 510/2             from Ch. 120, par. 481b.2
28    35 ILCS 520/16            from Ch. 120, par. 2166
29    35 ILCS 610/6             from Ch. 120, par. 467.6
30    35 ILCS 615/6             from Ch. 120, par. 467.21
31    35 ILCS 620/6             from Ch. 120, par. 473
32    35 ILCS 625/6             from Ch. 120, par. 1416
33    35 ILCS 630/10            from Ch. 120, par. 2010
34    35 ILCS 735/3-3           from Ch. 120, par. 2603-3
 
                            -86-               LRB9102214PTpk
 1    35 ILCS 735/3-7           from Ch. 120, par. 2603-7
 2    225 ILCS 450/27           from Ch. 111, par. 5533

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