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92_SB1176ham001 LRB9205953SMdvam01 1 AMENDMENT TO SENATE BILL 1176 2 AMENDMENT NO. . Amend Senate Bill 1176 on page 1, 3 line 6, after "2505-210", by inserting ", 2505-275,"; and 4 on page 2, immediately below line 17, by inserting the 5 following: 6 "(20 ILCS 2505/2505-275) (was 20 ILCS 2505/39e) 7 Sec. 2505-275. Tax overpayments. In the case of 8 overpayment of any tax liability arising from an Act 9 administered by the Department, the Department may credit the 10 amount of the overpayment and any interest thereon against 11 any final tax liability arising under that or any other Act 12 administered by the Department. The Department may enter into 13 agreements with the Secretary of the Treasury of the United 14 States (or his or her delegate) to offset all or part of an 15 overpayment of such a tax liability against any liability 16 arising from a tax imposed under Title 26 of the United 17 States Code. The Department may collect a fee from the 18 Secretary of the Treasury of the United States (or his or her 19 delegate) to cover the full cost of offsets taken, to the 20 extent allowed by federal law. 21 (Source: P.A. 91-239, eff. 1-1-00.)"; and 22 on page 3, immediately below line 4, by inserting the -2- LRB9205953SMdvam01 1 following: 2 "(c) The Department may issue the Secretary of the 3 Treasury of the United States (or his or her delegate) 4 notice, as required by Section 6402(e) of the Internal 5 Revenue Code, of any past due, legally enforceable State 6 income tax obligation of a taxpayer. The Department must 7 notify the taxpayer that any fee charged to the State by the 8 Secretary of the Treasury of the United States (or his or her 9 delegate) under Internal Revenue Code Section 6402(e) is 10 considered additional State income tax of the taxpayer with 11 respect to whom the Department issued the notice, and is 12 deemed assessed upon issuance by the Department of notice to 13 the Secretary of the Treasury of the United States (or his or 14 her delegate) under Section 6402(e) of the Internal Revenue 15 Code; a notice of additional State income tax is not 16 considered a notice of deficiency, and the taxpayer has no 17 right of protest."; and 18 on page 3, line 7, after "601.1", by inserting "and adding 19 Section 911.2"; and 20 on page 5, immediately below line 5, by inserting the 21 following: 22 "(35 ILCS 5/911.2 new) 23 Sec. 911.2. Refunds withheld; tax claims of other 24 states. 25 (a) Definitions. In this Section the following terms 26 have the meanings indicated. 27 "Claimant state" means any state or the District of 28 Columbia that requests the withholding of a refund pursuant 29 to this Section and that extends a like comity for the 30 collection of taxes owed to this State. 31 "Income tax" means any amount of income tax imposed on 32 taxpayers under the laws of the State of Illinois or the -3- LRB9205953SMdvam01 1 claimant state, including additions to tax for penalties and 2 interest. 3 "Refund" means a refund of overpaid income taxes imposed 4 by the State of Illinois or the claimant state. 5 "Tax officer" means a unit or official of the claimant 6 state, or the duly authorized agent of that unit or official, 7 charged with the imposition, assessment, or collection of 8 state income taxes. 9 "Taxpayer" means any person identified by a claimant 10 state under this Section as owing taxes to that claimant 11 state, and in the case of a refund arising from the filing of 12 a joint return, the taxpayer's spouse. 13 (b) In general. Except as provided in subsection (c) of 14 this Section, a tax officer may: 15 (1) certify to the Director the existence of a 16 taxpayer's delinquent income tax liability; and 17 (2) request the Director to withhold any refund to 18 which the taxpayer is entitled. 19 (c) Comity. A tax officer may not certify or request 20 the Director to withhold a refund unless the laws of the 21 claimant state: 22 (1) allow the Director to certify an income tax 23 liability; 24 (2) allow the Director to request the tax officer 25 to withhold the taxpayer's tax refund; and 26 (3) provide for the payment of the refund to the 27 State of Illinois. 28 (d) Certification. A certification by a tax officer to 29 the Director shall include: 30 (1) the full name and address of the taxpayer and 31 any other names known to be used by the taxpayer; 32 (2) the social security number or federal tax 33 identification number of the taxpayer; 34 (3) the amount of the income tax liability; and -4- LRB9205953SMdvam01 1 (4) a statement that all administrative and 2 judicial remedies and appeals have been exhausted or have 3 lapsed and that the assessment of tax, interest, and 4 penalty has become final. 5 (e) Notification. As to any taxpayer due a refund, the 6 Director shall: 7 (1) notify the taxpayer that a claimant state has 8 provided certification of the existence of an income tax 9 liability; 10 (2) inform the taxpayer of the tax liability 11 certified, including a detailed statement for each 12 taxable year showing tax, interest, and penalty; 13 (3) inform the taxpayer that failure to file a 14 protest in accordance with subsection (f) of this Section 15 shall constitute a waiver of any demand against this 16 State for the amount certified and will result in payment 17 to the claimant state as provided in subsection (i) of 18 this Section; 19 (4) provide the taxpayer with notice of an 20 opportunity to request a hearing to challenge the 21 certification; and 22 (5) inform the taxpayer that the hearing may be 23 requested (i) pursuant to Section 910 of this Act, or 24 (ii) with the tax officer, in accordance with the laws of 25 the claimant state. 26 (f) Protest of withholding. A taxpayer may protest the 27 withholding of a refund pursuant to Section 910 of this Act 28 (except that the protest shall be filed within 30 days after 29 the date of the Director's notice of certification pursuant 30 to subsection (e) of this Section). If a taxpayer files a 31 timely protest, the Director shall: 32 (1) suspend the proposed withholding and impound 33 the claimed amount of the refund; 34 (2) pay to the taxpayer the unclaimed amount of the -5- LRB9205953SMdvam01 1 refund, if any; 2 (3) send a copy of the protest to the claimant 3 state for determination of the protest on its merits in 4 accordance with the laws of that state; and 5 (4) pay over to the taxpayer the impounded amount 6 if the claimant state shall fail, within 45 days after 7 the date of the protest, to re-certify to the Director 8 (i) that the claimant state has reviewed the issues 9 raised by taxpayer, (ii) that all administrative and 10 judicial remedies provided under the laws of that state 11 have been exhausted, and (iii) the amount of the income 12 tax liability finally determined to be due. 13 (g) Certification as prima facie evidence. If the 14 taxpayer requests a hearing pursuant to Section 910 of this 15 Act, the certification of the tax officer shall be prima 16 facie evidence of the correctness of the taxpayer's 17 delinquent income tax liability to the certifying state. 18 (h) Rights of spouses to refunds from joint returns. If 19 a certification is based upon the tax debt of only one 20 taxpayer and if the refund is based upon a joint personal 21 income tax return, the nondebtor spouse shall have the right 22 to: 23 (1) notification, as provided in subsection (e) of 24 this Section; 25 (2) protest, as to the withholding of such spouse's 26 share of the refund, as provided in subsection (f) of 27 this Section; and 28 (3) payment of his or her share of the refund, 29 provided the amount of the overpayment refunded to the 30 spouse shall not exceed the amount of the joint 31 overpayment. 32 (i) Withholding and payment of refund. Subject to the 33 taxpayer's rights of notice and protest, upon receipt of a 34 request for withholding in accordance with subsection (b) of -6- LRB9205953SMdvam01 1 this Section, the Director shall: 2 (1) withhold any refund that is certified by the 3 tax officer; 4 (2) pay to the claimant state the entire refund or 5 the amount certified, whichever is less; 6 (3) pay any refund in excess of the amount 7 certified to the taxpayer; and 8 (4) if a refund is less than the amount certified, 9 withhold amounts from subsequent refunds due the 10 taxpayer, if the laws of the claimant state provide that 11 the claimant state shall withhold subsequent refunds of 12 taxpayers certified to that state by the Director. 13 (j) Determination that withholding cannot be made. 14 After receiving a certification from a tax officer, the 15 Director shall notify the claimant state if the Director 16 determines that a withholding cannot be made. 17 (k) Director's authority. The Director shall have the 18 authority to enter into agreements with the tax officers of 19 claimant state relating to: 20 (1) procedures and methods to be employed by a 21 claimant state with respect to the operation of this 22 Section; 23 (2) safeguards against the disclosure or 24 inappropriate use of any information obtained or 25 maintained pursuant to this Section that identifies, 26 directly or indirectly, a particular taxpayer; 27 (3) a minimum tax debt, amounts below which, in 28 light of administrative expenses and efficiency, shall, 29 in the Director's discretion, not be subject to the 30 withholding procedures set forth in this Section. 31 (l) Remedy not exclusive. The collection procedures 32 prescribed by this Section are in addition to, and not in 33 substitution for, any other remedy available by law.".
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