Public Act 097-1129
 
HB5192 EnrolledLRB097 18915 HLH 64153 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
Article 1. ILLINOIS TAX TRIBUNAL ACT OF 2012

 
    Section 1-1. Short title. This Act may be cited as the
Illinois Independent Tax Tribunal Act of 2012.
 
    Section 1-5. Statement of purpose.
    (a) To increase public confidence in the fairness of the
State tax system, the State shall provide an independent
administrative tribunal with tax expertise to resolve tax
disputes between the Department of Revenue and taxpayers prior
to requiring the taxpayer to pay the amounts in issue. By
establishing an independent tax tribunal, this Act provides
taxpayers with a means of resolving controversies that ensures
both the appearance and the reality of due process and
fundamental fairness.
    (b) The Illinois Independent Tax Tribunal shall provide
administrative hearings in all tax matters except those matters
reserved to the Department of Revenue or another entity by
statute, and shall render decisions and orders relating to
matters under its jurisdiction. A Tax Tribunal administrative
hearing shall be commenced by the filing of a petition with the
Tribunal protesting a tax determination made by the Department
of Revenue.
    (c) It is the intent of the General Assembly that this Act
foster the settlement or other resolution of tax disputes to
the extent possible and, in cases in which litigation is
necessary, to provide the people of this State with a fair,
independent, and tax-expert forum to determine tax disputes
with the Department of Revenue. The Act shall be liberally
construed to further this intent.
 
    Section 1-10. Definitions. For the purposes of this Act:
    "Department" means the Department of Revenue.
    "Taxpayer" means a person who has received a protestable
notice of assessment, a claim denial, or a protestable notice
of penalty liability within the Tax Tribunal's jurisdiction
pursuant to Section 1-45 of this Act.
    "Tax Tribunal" means the Illinois Independent Tax Tribunal
established pursuant to Section 1-15 of this Act.
 
    Section 1-15. Independent Tax Tribunal; establishment.
    (a) For the purpose of effectuating the policy declared in
Section 1-5 of this Act, a State agency known as the Illinois
Independent Tax Tribunal is created. The Tax Tribunal shall
have the powers and duties enumerated in this Act, together
with such others conferred upon it by law. The Tax Tribunal
shall operate as an independent agency, and shall be separate
from the authority of the Director of Revenue and the
Department of Revenue.
    (b) Except as otherwise limited by this Act, the Tax
Tribunal has all of the powers necessary or convenient to carry
out the purposes and provisions of this Act, including without
limitation, each of the following:
        (1) To have a seal, and to alter that seal at pleasure,
    and to use it by causing it or a facsimile to be affixed or
    impressed or reproduced in any other manner.
        (2) To accept and expend appropriations.
        (3) To obtain and employ personnel as required in this
    Act, including any additional personnel necessary to
    fulfill the Tax Tribunal's purposes, and to make
    expenditures for personnel within the appropriations for
    that purpose.
        (4) To maintain offices at such places as required
    under this Act, and elsewhere as the Tax Tribunal may
    determine.
        (5) To engage in any activity or operation that is
    incidental to and in furtherance of efficient operation to
    accomplish the Tax Tribunal's purposes.
    (c) Unless otherwise stated, the Tax Tribunal is subject to
the provisions of all applicable laws, including but not
limited to, each of the following:
        (1) The State Records Act.
        (2) The Illinois Procurement Code, except that the
    Illinois Procurement Code does not apply to the hiring of
    the chief administrative law judge or other administrative
    law judges pursuant to Section 1-25 of this Act.
        (3) The Freedom of Information Act, except as otherwise
    provided in Section 7 of that Act.
        (4) The State Property Control Act.
        (5) The State Officials and Employees Ethics Act.
        (6) The Administrative Procedure Act, to the extent not
    inconsistent with the provisions of this Act.
        (7) The Illinois State Auditing Act. For purposes of
    the Illinois State Auditing Act, the Tax Tribunal is a
    "State agency" within the meaning of the Act and is subject
    to the jurisdiction of the Auditor General.
    (d) The Tax Tribunal shall exercise its jurisdiction on and
after July 1, 2013, but the administrative law judges of the
Tribunal may be appointed prior to that date and may take any
action prior to that date that is necessary to enable the Tax
Tribunal to properly exercise its jurisdiction on or after that
date. Any administrative proceeding commenced prior to July 1,
2013, that would otherwise be subject to the jurisdiction of
the Illinois Independent Tax Tribunal may be conducted
according to the procedures set forth in this Act if the
taxpayer so elects. Such an election shall be irrevocable and
may be made on or after July 1, 2013, but no later than 30 days
after the date on which the taxpayer's protest was filed.
 
    Section 1-20. Transfer of administrative record. If the
taxpayer makes an election pursuant to Section 1-15 of this Act
to remove a proceeding to the Tax Tribunal, any document,
including pleadings and orders, that would constitute part of
the administrative record within the meaning of Section 3-108
of the Administrative Review Law shall be transferred to the
Tax Tribunal.
 
    Section 1-25. Judges; number; term of office; removal.
    (a) The Governor shall, with the advice and consent of the
Senate, appoint a Chief Administrative Law Judge to be the
executive of the Tax Tribunal. The Chief Administrative Law
Judge shall serve a 5-year term. The Governor may appoint
additional administrative law judges, with the advice and
consent of the Senate, as necessary to carry out the provisions
of this Act, provided that no more than 4 administrative law
judges, including the Chief Administrative Law Judge, shall
serve at the same time. The administrative law judges, other
than the Chief Administrative Law Judge, shall initially be
appointed to staggered terms of no greater than 4 years. After
the initial terms of office, all administrative law judges,
other than the Chief Administrative Law Judge, shall be
appointed for terms of 4 years. Each administrative law judge
is eligible for reappointment.
    (b) Once appointed and confirmed, each administrative law
judge shall continue in office until his or her term expires
and until a successor has been appointed and confirmed.
    (c) The office of an administrative law judge under this
Section shall be vacant upon the administrative law judge's
death, resignation, retirement, or removal, or upon the
conclusion of his or her term without reappointment. Within 30
days after such a vacancy occurs, a successor administrative
law judge shall be appointed by the Governor, with the advice
and consent of the Senate, for the remainder of the current
unexpired term for that vacancy. In case of vacancies during
the recess of the Senate, the Governor shall make a temporary
appointment until the next meeting of the Senate, when the
Governor shall nominate some person to fill the office, and any
person so nominated who is confirmed by the Senate shall hold
office during the remainder of the term and until his or her
successor is appointed and qualified. No person rejected by the
Senate for the office of an administrative law judge under this
Section shall, except at the Senate's request, be nominated
again for that office at the same session or be appointed to
that office during a recess of that Senate.
    (d) The Governor may remove an administrative law judge of
the Tax Tribunal, after notice and an opportunity to be heard,
for incompetency, neglect of duty, inability to perform duties,
malfeasance in office, or other good cause.
    (e) Each administrative law judge of the Tax Tribunal,
including the Chief Administrative Law Judge, shall receive an
annual salary equal to that of the Director of the Department
of Revenue. The Chief Administrative Law Judge shall receive an
additional $15,000 annual stipend.
    (f) The Chief Administrative Law Judge shall have sole
charge of the administration of the Tax Tribunal and shall
apportion among the judges all causes, matters, and proceedings
coming before the Tax Tribunal. Each administrative law judge
shall exercise the power of the Tax Tribunal.
    (g) An administrative law judge may disqualify himself or
herself on his or her own motion in any matter, and may be
disqualified for any of the causes specified in the Illinois
Code of Judicial Conduct.
 
    Section 1-30. Judges; qualifications; prohibition against
other gainful employment.
    (a) Each administrative law judge of the Tax Tribunal shall
be a citizen of the United States and, during the period of his
or her service, a resident of this State. No person may be
appointed as an administrative law judge unless, at the time of
the appointment, the individual has been licensed to practice
law in Illinois for a minimum of 8 years and has substantial
knowledge of State tax laws and the making of a record in a tax
case suitable for judicial review.
    (b) Before entering upon the duties of office, each
administrative law judge shall take and subscribe to an oath or
affirmation that he or she will faithfully discharge the duties
of the office, and such oath shall be filed in the office of
the Secretary of State.
    (c) Each administrative law judge shall devote his or her
full time during business hours to the duties of his or her
office. An administrative law judge shall not engage in any
other gainful employment or business, nor hold another office
or position of profit in a government of this State, any other
State, or the United States. Notwithstanding the foregoing
provisions, an administrative law judge may own passive
interests in business entities and may earn income from
incidental teaching, publishing, or scholarly activities.
 
    Section 1-35. Principal office; locations; facilities.
    (a) The Tax Tribunal shall maintain its principal offices
in both Sangamon County and Cook County, Illinois.
    (b) The Tax Tribunal shall conduct hearings at any of its
offices. If the taxpayer does not have his or her place of
business in this State, such hearing shall be held at the
office designated by the Tax Tribunal in either Cook or
Sangamon County. Taxpayers whose residence or place of business
is more than 100 miles from either the Sangamon County or Cook
County Tax Tribunal office may petition the Tax Tribunal for an
alternate hearing location, with a view toward securing to
taxpayers a reasonable opportunity to appear before the Tax
Tribunal with as little inconvenience and expense as possible.
    (c) The State shall provide hearing rooms, chambers, and
offices for the Tax Tribunal in both Sangamon County and Cook
County and shall arrange for hearing rooms, chambers, and
offices or other appropriate facilities when hearings are held
elsewhere.
    (d) The offices of the Tax Tribunal shall be separate and
distinct from the offices of the Department.
 
    Section 1-40. Appointment of clerk and reporter;
expenditures of the Tax Tribunal.
    (a) The Tax Tribunal shall appoint a clerk and a reporter,
and may appoint such other employees and make such other
expenditures, including expenditures for libraries,
publications, and equipment, as are necessary to permit it to
efficiently execute its functions.
    (b) The reporter shall be subject to the provisions of the
Court Reporters Act as if appointed by a judge of the circuit
court, except where such provisions are in conflict with this
Act.
    (c) No employee of the Tax Tribunal shall act as attorney,
representative, or accountant for others in a matter involving
any tax imposed or levied by this State or any other state or
local jurisdiction.
    (d) An employee of the Tax Tribunal, other than an
Administrative Law Judge, may be removed by the Chief
Administrative Law Judge in accordance with the Personnel Code.
    (e) In addition to the services of the official reporter,
the Tax Tribunal may contract the reporting of its proceedings
and, in the contract, fix the terms and conditions under which
transcripts will be supplied by the contractor to the Tax
Tribunal and to other persons and agencies.
 
    Section 1-45. Jurisdiction of the Tax Tribunal.
    (a) Except as provided by the Constitution of the United
States, the Constitution of the State of Illinois, or any
statutes of this State, including, but not limited to, the
State Officers and Employees Money Disposition Act, the Tax
Tribunal shall have original jurisdiction over all
determinations of the Department reflected on a Notice of
Deficiency, Notice of Tax Liability, Notice of Claim Denial, or
Notice of Penalty Liability issued under the Illinois Income
Tax Act, the Use Tax Act, the Service Use Tax Act, the Service
Occupation Tax Act, the Retailers' Occupation Tax Act, the
Cigarette Tax Act, the Cigarette Use Tax Act, the Tobacco
Products Tax Act of 1995, the Hotel Operators' Occupation Tax
Act, the Motor Fuel Tax Law, the Automobile Renting Occupation
and Use Tax Act, the Coin-Operated Amusement Device and
Redemption Machine Tax Act, the Gas Revenue Tax Act, the Water
Company Invested Capital Tax Act, the Telecommunications
Excise Tax Act, the Telecommunications Infrastructure
Maintenance Fee Act, the Public Utilities Revenue Act, the
Electricity Excise Tax Law, the Aircraft Use Tax Law, the
Watercraft Use Tax Law, the Gas Use Tax Law, or the Uniform
Penalty and Interest Act. Jurisdiction of the Tax Tribunal is
limited to Notices of Tax Liability, Notices of Deficiency,
Notices of Claim Denial, and Notices of Penalty Liability where
the amount at issue in a notice, or the aggregate amount at
issue in multiple notices issued for the same tax year or audit
period, exceeds $15,000, exclusive of penalties and interest.
In notices solely asserting either an interest or penalty
assessment, or both, the Tax Tribunal shall have jurisdiction
over cases where the combined total of all penalties or
interest assessed exceeds $15,000.
    (b) Except as otherwise permitted by this Act and by the
Constitution of the State of Illinois or otherwise by State
law, including, but not limited to, the State Officers and
Employees Money Disposition Act, no person shall contest any
matter within the jurisdiction of the Tax Tribunal in any
action, suit, or proceeding in the circuit court or any other
court of the State. If a person attempts to do so, then such
action, suit, or proceeding shall be dismissed without
prejudice. The improper commencement of any action, suit, or
proceeding does not extend the time period for commencing a
proceeding in the Tax Tribunal.
    (c) The Tax Tribunal may require the taxpayer to post a
bond equal to 25% of the liability at issue (1) upon motion of
the Department and a showing that (A) the taxpayer's action is
frivolous or legally insufficient or (B) the taxpayer is acting
primarily for the purpose of delaying the collection of tax or
prejudicing the ability ultimately to collect the tax, or (2)
if, at any time during the proceedings, it is determined by the
Tax Tribunal that the taxpayer is not pursuing the resolution
of the case with due diligence. If the Tax Tribunal finds in a
particular case that the taxpayer cannot procure and furnish a
satisfactory surety or sureties for the kind of bond required
herein, the Tax Tribunal may relieve the taxpayer of the
obligation of filing such bond, if, upon the timely application
for a lien in lieu thereof and accompanying proof therein
submitted, the Tax Tribunal is satisfied that any such lien
imposed would operate to secure the assessment in the manner
and to the degree as would a bond. The Tax Tribunal shall adopt
rules for the procedures to be used in securing a bond or lien
under this Section.
    (d) If, with or after the filing of a timely petition, the
taxpayer pays all or part of the tax or other amount in issue
before the Tax Tribunal has rendered a decision, the Tax
Tribunal shall treat the taxpayer's petition as a protest of a
denial of claim for refund of the amount so paid upon a written
motion filed by the taxpayer.
    (e) The Tax Tribunal shall not have jurisdiction to review:
        (1) any assessment made under the Property Tax Code;
        (2) any decisions relating to the issuance or denial of
    an exemption ruling for any entity claiming exemption from
    any tax imposed under the Property Tax Code or any State
    tax administered by the Department;
        (3) a notice of proposed tax liability, notice of
    proposed deficiency, or any other notice of proposed
    assessment or notice of intent to take some action;
        (4) any action or determination of the Department
    regarding tax liabilities that have become finalized by
    law, including but not limited to the issuance of liens,
    levies, and revocations, suspensions, or denials of
    licenses or certificates of registration or any other
    collection activities;
        (5) any proceedings of the Department's informal
    administrative appeals function; and
        (6) any challenge to an administrative subpoena issued
    by the Department.
    (f) The Tax Tribunal shall decide questions regarding the
constitutionality of statutes and rules adopted by the
Department as applied to the taxpayer, but shall not have the
power to declare a statute or rule unconstitutional or
otherwise invalid on its face. A taxpayer challenging the
constitutionality of a statute or rule on its face may present
such challenge to the Tribunal for the sole purpose of making a
record for review by the Illinois Appellate Court. Failure to
raise a constitutional issue regarding the application of a
statute or regulations to the taxpayer shall not preclude the
taxpayer or the Department from raising those issues at the
appellate court level.
 
    Section 1-50. Pleadings.
    (a) A taxpayer may commence a proceeding in the Tax
Tribunal by filing a petition protesting the Department's
determination imposing a liability for tax, penalty, or
interest, or denying a claim for refund or credit application.
The petition shall be filed within the time permitted by
statute for filing a protest.
    (b) The Department shall file its answer in the Tax
Tribunal no later than 30 days after its receipt of the Tax
Tribunal's notification that the taxpayer has filed a petition
in the proper form or within such additional time as the Tax
Tribunal may specify. The Department shall serve a copy of its
answer on the taxpayer's representative or, if the taxpayer is
not represented, on the taxpayer, and shall file proof of such
service with the answer. Material facts alleged in the
petition, if not expressly admitted or denied in the answer,
shall be deemed admitted.
    (c) Either party may amend a pleading once without leave at
any time before the period for responding to it expires. After
such time, a pleading may be amended only with the written
consent of the adverse party or with the permission of the Tax
Tribunal. The Tax Tribunal shall freely grant consent to amend
upon such terms as may be just. Except as otherwise ordered by
the Tax Tribunal, there shall be an answer to an amended
pleading if an answer is required to the pleading being
amended. Filing of the answer, or, if the answer has already
been filed, the amended answer shall be made no later than 30
days after the filing of the amended petition. The taxpayer may
not amend a petition after expiration of the time for filing a
petition, if such amendment would have the effect of conferring
jurisdiction on the Tax Tribunal over a matter that would
otherwise not come within its jurisdiction. An amendment of a
pleading shall relate back to the time of filing of the
original pleading only as prescribed by Section 2-616 of the
Code of Civil Procedure.
 
    Section 1-55. Fees.
    (a) The Tax Tribunal shall impose a fee of $500 for the
filing of petitions.
    (b) The Tax Tribunal may fix a fee, not in excess of the
fees charged and collected by the clerk of the circuit courts,
for comparing, or for preparing and comparing, a transcript of
the record, or for copying any record, entry, or other paper
and the comparison and certification thereof.
    (c) Fees collected under this Section shall be deposited
into the Illinois Independent Tax Tribunal Fund, a special fund
created in the State treasury. Moneys deposited into the Fund
shall be appropriated to the Tribunal to reimburse the Tribunal
for costs associated with administering and enforcing the
provisions of this Act.
    (d) The Tax Tribunal shall not assign any costs or
attorney's fees incurred by one party against another party.
Claims for expenses and attorney's fees under Section 10-55 of
the Administrative Procedure Act shall first be made to the
Department of Revenue. If the claimant is dissatisfied because
of the Department's failure to make any award or because of the
insufficiency of the award, the claimant may petition the Court
of Claims for the amount deemed owed.
 
    Section 1-60. Discovery and stipulation.
    (a) The parties to the proceeding shall comply with the
Supreme Court Rules for Civil Proceedings in the Trial Court
regarding Discovery, Requests for Admission, and Pre-Trial
Procedure.
    (b) A administrative law judge or the clerk of the Tax
Tribunal, on the request of any party to the proceeding, shall
issue subpoenas requiring the attendance of witnesses and
giving of testimony and subpoenas duces tecum requiring the
production of evidence or things.
    (c) Any employee of the Tax Tribunal designated in writing
for that purpose by the Chief Administrative Law Judge may
administer oaths.
    (d) The Tax Tribunal may enforce its order on discovery and
other procedural issues, among other means, by deciding issues
wholly or partly against the offending party.
 
    Section 1-63. Mediation. At any point in the proceedings
before the Tax Tribunal, but prior to the hearing under Section
1-65 of this Act, the parties may jointly petition the Tax
Tribunal for mediation. The purpose of the mediation shall be
to attempt to settle any contested issues or the case in its
entirety. An administrative law judge other than the one
initially assigned to hear the case shall serve as the
mediator.
 
    Section 1-65. Hearings.
    (a) Proceedings before the Tax Tribunal shall be tried de
novo.
    (b) Except as set forth in this Act or otherwise precluded
by law, the Tax Tribunal shall take evidence, conduct hearings,
rule on motions, and issue final decisions.
    (c) Hearings shall be open to the public. Taxpayers may
petition the Tax Tribunal to close portions of the hearing for
good cause shown. Taxpayers may also petition the Tax Tribunal
to require that certain pleadings or portions thereof be filed,
or that certain evidence or portions thereof be admitted, under
seal in order to prevent economic or other harm to the
taxpayer. Original tax return documents, schedules, or other
attachments and any copies thereof shall not be made available
to the public for inspection or copying. Nothing in this
Section shall operate to restrict the transmission of records
to the appellate court.
    (d) Hearings shall be conducted in accordance with such
rules of practice and procedure as the Tax Tribunal shall
promulgate.
    (e) The rules of evidence and privilege as applied in civil
cases in the circuit courts of this State shall be followed.
    (f) Subject to the evidentiary requirements of subsection
(e) of this Section, a party may conduct cross examination
required for a full and fair disclosure of the facts.
    (g) Notice may be taken by the Tax Tribunal of matters of
which the circuit courts of this State may take judicial
notice. Parties shall be notified either before or during the
hearing, or by reference in preliminary reports or otherwise,
of the material noticed, including any staff memoranda or data,
and they shall be afforded an opportunity to contest the
material so noticed.
    (h) Testimony may be given only on oath or affirmation.
    (i) The petition and other pleadings in the proceeding
shall be deemed to conform to the proof presented at the
hearing, unless a party satisfies the Tax Tribunal that
presentation of the evidence would unfairly prejudice the party
in maintaining its position on the merits or unless deeming the
taxpayer's petition to conform to the proof would confer
jurisdiction on the Tax Tribunal over a matter that would not
otherwise come within its jurisdiction.
    (j) In the case of an issue of fact, the taxpayer shall
have the burden of persuasion by a preponderance of the
evidence.
 
    Section 1-67. Temporary suspension of proceedings.
    (a) If any party to a proceeding pending in the Tax
Tribunal is also a defendant in a criminal case pending in any
court in this State involving the same conduct as the case
before the Tax Tribunal, then, upon motion of any party or the
Attorney General, or upon its own motion, the Tax Tribunal
shall enter an order staying the proceeding.
    (b) If the Attorney General or the Department determines
that the interests of justice so require, either may file an ex
parte motion with the Chief Administrative Law Judge requesting
that any proceeding pending before the Tax Tribunal be stayed.
If the Chief Administrative Law Judge finds that the motion
reasonably shows that the proceeding may interfere with an
ongoing criminal investigation, the Chief Administrative Law
Judge shall enter an order staying the proceeding. The denial
of a motion to enter an order staying the proceeding is a final
administrative decision within the meaning of Section 3-101 of
the Administrative Review Law and may be reviewed by the
Circuit Court pursuant to the Administrative Review Law.
 
    Section 1-70. Decisions.
    (a) The Tax Tribunal shall render its decision in writing,
including in that writing a concise statement of the facts
found and the conclusions of law reached. The Tax Tribunal's
decision shall, subject to law, grant such relief, invoke such
remedies, and issue such orders as it deems appropriate to
carry out its decisions. The Tax Tribunal shall promptly mail a
notice of its decision to the taxpayer and to the Department.
    (b) The Tax Tribunal shall render its decision no later
than 90 days after submission of the last brief filed
subsequent to completion of the hearing or, if briefs are not
submitted, then no later than 90 days after completion of the
hearing. The Tax Tribunal may extend the 90 day period, for
good cause, up to 30 additional days.
    (c) If the Tax Tribunal fails to render a decision within
the prescribed period, either party may institute a proceeding
in the circuit court to compel issuance of a decision.
    (d) The Tax Tribunal's decision shall finally decide the
matters in controversy, unless any party to the matter timely
appeals the decision as provided in Section 1-75 of this Act.
    (e) A decision of the Tax Tribunal shall become final 35
days after the issuance of a notice of decision.
 
    Section 1-75. Appeals.
    (a) The taxpayer and the Department are entitled to
judicial review of a final decision of the Tribunal in the
Illinois Appellate Court, in accordance with Section 3-113 of
the Administrative Review Law.
    (b) The record on judicial review shall include the
decision of the Tax Tribunal, the stenographic transcript of
the hearing before the Tax Tribunal, the pleadings and all
exhibits and documents admitted into evidence.
 
    Section 1-80. Representation.
    (a) Appearances in proceedings conducted by the Tax
Tribunal may be by the taxpayer or by an attorney admitted to
practice in this State. The Tax Tribunal may allow an attorney
authorized to practice or licensed in any other jurisdiction of
the United States to appear and represent a taxpayer in
proceedings before the Tax Tribunal for a particular matter.
    (b) The Department of Revenue shall be represented by the
Attorney General in all proceedings before the Tax Tribunal.
 
    Section 1-85. Publication of decisions and electronic
submission of documents.
    (a) The Tax Tribunal shall, within 180 days of the issuance
of a decision, index and publish its final decision in such
print or electronic form as it deems best adapted for public
convenience. Such publications shall be made permanently
available and constitute the official reports of the Tax
Tribunal.
    (b) All published decisions shall be edited by the Tax
Tribunal so that the identification number of the taxpayer and
any related entities or employees, and any trade secrets or
other intellectual property, are not disclosed or identified.
    (c) Within 30 days following the issuance of any hearing
decision, the taxpayer affected by the decision may also
request that the Tax Tribunal omit specifically identified
trade secrets or other confidential or proprietary information
prior to publication of the decision. The Tax Tribunal shall
approve those requests if it determines that the requests are
reasonable and that the disclosure of such information would
potentially cause economic or other injury to the taxpayer.
    (d) The Tax Tribunal shall provide, by rule, reasonable
requirements for the electronic submission of documents and
records and the method and type of symbol or security procedure
it will accept to authenticate electronic submissions or as a
legal signature.
    (e) Each year, no later than October 1, the Tax Tribunal
shall report to the General Assembly regarding the Tribunal's
operations during the prior fiscal year. Such report shall
include the number of cases opened and closed, the size of its
docket, the average age of cases, the dollar amount of cases by
tax type, the number of cases decided in favor of the
Department, the number of cases decided in favor of the
taxpayer, the number of cases resolved through mediation or
settlement, and such other statistics so as to apprise the
General Assembly of whether the Tax Tribunal has successfully
accomplished its mission to fairly and efficiently adjudicate
tax disputes.
 
    Section 1-90. Service of process and mailings.
    (a) Mailings by first class or certified or registered
mail, postage prepaid, to the address of the taxpayer given on
the taxpayer's petition, or to the address of the taxpayer's
representative of record, if any, or to the usual place of
business of the Department, shall constitute personal service
on the other party. The Tax Tribunal may by rule prescribe that
notice by other means shall constitute personal service and may
in a particular case order that notice be given to additional
persons or by other means.
    (b) Mailing by registered or certified mail and delivery by
a private delivery service approved by the Internal Revenue
Service in accordance with Section 7502(f) of the Internal
Revenue Code of 1986, as amended, shall be deemed to have
occurred, respectively, on the date of mailing and the date of
submission to the private delivery service.
 
    Section 1-95. Rules and forms. The Tax Tribunal is
authorized to promulgate and adopt all reasonable rules and
forms as may be necessary or appropriate to carry out the
intent and purposes of this Act. Rules shall be adopted in
accordance with the rulemaking procedures of Article 5 of the
Illinois Administrative Procedure Act.
 
    Section 1-100. Confidentiality. All information received
by the Tax Tribunal as a result of a hearing or investigation
conducted under the provisions of this Act shall be public,
except for tax returns and information received under seal
pursuant to Section 1-65, and information received in relation
to any mediation proceedings conducted under Section 1-63.
 
Article 5. AMENDATORY PROVISIONS

 
    Section 5-5. The Open Meetings Act is amended by changing
Section 1.02 as follows:
 
    (5 ILCS 120/1.02)  (from Ch. 102, par. 41.02)
    Sec. 1.02. For the purposes of this Act:
    "Meeting" means any gathering, whether in person or by
video or audio conference, telephone call, electronic means
(such as, without limitation, electronic mail, electronic
chat, and instant messaging), or other means of contemporaneous
interactive communication, of a majority of a quorum of the
members of a public body held for the purpose of discussing
public business or, for a 5-member public body, a quorum of the
members of a public body held for the purpose of discussing
public business.
    Accordingly, for a 5-member public body, 3 members of the
body constitute a quorum and the affirmative vote of 3 members
is necessary to adopt any motion, resolution, or ordinance,
unless a greater number is otherwise required.
    "Public body" includes all legislative, executive,
administrative or advisory bodies of the State, counties,
townships, cities, villages, incorporated towns, school
districts and all other municipal corporations, boards,
bureaus, committees or commissions of this State, and any
subsidiary bodies of any of the foregoing including but not
limited to committees and subcommittees which are supported in
whole or in part by tax revenue, or which expend tax revenue,
except the General Assembly and committees or commissions
thereof. "Public body" includes tourism boards and convention
or civic center boards located in counties that are contiguous
to the Mississippi River with populations of more than 250,000
but less than 300,000. "Public body" includes the Health
Facilities and Services Review Board. "Public body" does not
include a child death review team or the Illinois Child Death
Review Teams Executive Council established under the Child
Death Review Team Act, or an ethics commission acting under the
State Officials and Employees Ethics Act, or the Illinois
Independent Tax Tribunal.
(Source: P.A. 95-245, eff. 8-17-07; 96-31, eff. 6-30-09.)
 
    Section 5-10. The Freedom of Information Act is amended by
changing Section 7 as follows:
 
    (5 ILCS 140/7)  (from Ch. 116, par. 207)
    Sec. 7. Exemptions.
    (1) When a request is made to inspect or copy a public
record that contains information that is exempt from disclosure
under this Section, but also contains information that is not
exempt from disclosure, the public body may elect to redact the
information that is exempt. The public body shall make the
remaining information available for inspection and copying.
Subject to this requirement, the following shall be exempt from
inspection and copying:
        (a) Information specifically prohibited from
    disclosure by federal or State law or rules and regulations
    implementing federal or State law.
        (b) Private information, unless disclosure is required
    by another provision of this Act, a State or federal law or
    a court order.
        (b-5) Files, documents, and other data or databases
    maintained by one or more law enforcement agencies and
    specifically designed to provide information to one or more
    law enforcement agencies regarding the physical or mental
    status of one or more individual subjects.
        (c) Personal information contained within public
    records, the disclosure of which would constitute a clearly
    unwarranted invasion of personal privacy, unless the
    disclosure is consented to in writing by the individual
    subjects of the information. "Unwarranted invasion of
    personal privacy" means the disclosure of information that
    is highly personal or objectionable to a reasonable person
    and in which the subject's right to privacy outweighs any
    legitimate public interest in obtaining the information.
    The disclosure of information that bears on the public
    duties of public employees and officials shall not be
    considered an invasion of personal privacy.
        (d) Records in the possession of any public body
    created in the course of administrative enforcement
    proceedings, and any law enforcement or correctional
    agency for law enforcement purposes, but only to the extent
    that disclosure would:
            (i) interfere with pending or actually and
        reasonably contemplated law enforcement proceedings
        conducted by any law enforcement or correctional
        agency that is the recipient of the request;
            (ii) interfere with active administrative
        enforcement proceedings conducted by the public body
        that is the recipient of the request;
            (iii) create a substantial likelihood that a
        person will be deprived of a fair trial or an impartial
        hearing;
            (iv) unavoidably disclose the identity of a
        confidential source, confidential information
        furnished only by the confidential source, or persons
        who file complaints with or provide information to
        administrative, investigative, law enforcement, or
        penal agencies; except that the identities of
        witnesses to traffic accidents, traffic accident
        reports, and rescue reports shall be provided by
        agencies of local government, except when disclosure
        would interfere with an active criminal investigation
        conducted by the agency that is the recipient of the
        request;
            (v) disclose unique or specialized investigative
        techniques other than those generally used and known or
        disclose internal documents of correctional agencies
        related to detection, observation or investigation of
        incidents of crime or misconduct, and disclosure would
        result in demonstrable harm to the agency or public
        body that is the recipient of the request;
            (vi) endanger the life or physical safety of law
        enforcement personnel or any other person; or
            (vii) obstruct an ongoing criminal investigation
        by the agency that is the recipient of the request.
        (e) Records that relate to or affect the security of
    correctional institutions and detention facilities.
        (f) Preliminary drafts, notes, recommendations,
    memoranda and other records in which opinions are
    expressed, or policies or actions are formulated, except
    that a specific record or relevant portion of a record
    shall not be exempt when the record is publicly cited and
    identified by the head of the public body. The exemption
    provided in this paragraph (f) extends to all those records
    of officers and agencies of the General Assembly that
    pertain to the preparation of legislative documents.
        (g) Trade secrets and commercial or financial
    information obtained from a person or business where the
    trade secrets or commercial or financial information are
    furnished under a claim that they are proprietary,
    privileged or confidential, and that disclosure of the
    trade secrets or commercial or financial information would
    cause competitive harm to the person or business, and only
    insofar as the claim directly applies to the records
    requested.
        The information included under this exemption includes
    all trade secrets and commercial or financial information
    obtained by a public body, including a public pension fund,
    from a private equity fund or a privately held company
    within the investment portfolio of a private equity fund as
    a result of either investing or evaluating a potential
    investment of public funds in a private equity fund. The
    exemption contained in this item does not apply to the
    aggregate financial performance information of a private
    equity fund, nor to the identity of the fund's managers or
    general partners. The exemption contained in this item does
    not apply to the identity of a privately held company
    within the investment portfolio of a private equity fund,
    unless the disclosure of the identity of a privately held
    company may cause competitive harm.
        Nothing contained in this paragraph (g) shall be
    construed to prevent a person or business from consenting
    to disclosure.
        (h) Proposals and bids for any contract, grant, or
    agreement, including information which if it were
    disclosed would frustrate procurement or give an advantage
    to any person proposing to enter into a contractor
    agreement with the body, until an award or final selection
    is made. Information prepared by or for the body in
    preparation of a bid solicitation shall be exempt until an
    award or final selection is made.
        (i) Valuable formulae, computer geographic systems,
    designs, drawings and research data obtained or produced by
    any public body when disclosure could reasonably be
    expected to produce private gain or public loss. The
    exemption for "computer geographic systems" provided in
    this paragraph (i) does not extend to requests made by news
    media as defined in Section 2 of this Act when the
    requested information is not otherwise exempt and the only
    purpose of the request is to access and disseminate
    information regarding the health, safety, welfare, or
    legal rights of the general public.
        (j) The following information pertaining to
    educational matters:
            (i) test questions, scoring keys and other
        examination data used to administer an academic
        examination;
            (ii) information received by a primary or
        secondary school, college, or university under its
        procedures for the evaluation of faculty members by
        their academic peers;
            (iii) information concerning a school or
        university's adjudication of student disciplinary
        cases, but only to the extent that disclosure would
        unavoidably reveal the identity of the student; and
            (iv) course materials or research materials used
        by faculty members.
        (k) Architects' plans, engineers' technical
    submissions, and other construction related technical
    documents for projects not constructed or developed in
    whole or in part with public funds and the same for
    projects constructed or developed with public funds,
    including but not limited to power generating and
    distribution stations and other transmission and
    distribution facilities, water treatment facilities,
    airport facilities, sport stadiums, convention centers,
    and all government owned, operated, or occupied buildings,
    but only to the extent that disclosure would compromise
    security.
        (l) Minutes of meetings of public bodies closed to the
    public as provided in the Open Meetings Act until the
    public body makes the minutes available to the public under
    Section 2.06 of the Open Meetings Act.
        (m) Communications between a public body and an
    attorney or auditor representing the public body that would
    not be subject to discovery in litigation, and materials
    prepared or compiled by or for a public body in
    anticipation of a criminal, civil or administrative
    proceeding upon the request of an attorney advising the
    public body, and materials prepared or compiled with
    respect to internal audits of public bodies.
        (n) Records relating to a public body's adjudication of
    employee grievances or disciplinary cases; however, this
    exemption shall not extend to the final outcome of cases in
    which discipline is imposed.
        (o) Administrative or technical information associated
    with automated data processing operations, including but
    not limited to software, operating protocols, computer
    program abstracts, file layouts, source listings, object
    modules, load modules, user guides, documentation
    pertaining to all logical and physical design of
    computerized systems, employee manuals, and any other
    information that, if disclosed, would jeopardize the
    security of the system or its data or the security of
    materials exempt under this Section.
        (p) Records relating to collective negotiating matters
    between public bodies and their employees or
    representatives, except that any final contract or
    agreement shall be subject to inspection and copying.
        (q) Test questions, scoring keys, and other
    examination data used to determine the qualifications of an
    applicant for a license or employment.
        (r) The records, documents, and information relating
    to real estate purchase negotiations until those
    negotiations have been completed or otherwise terminated.
    With regard to a parcel involved in a pending or actually
    and reasonably contemplated eminent domain proceeding
    under the Eminent Domain Act, records, documents and
    information relating to that parcel shall be exempt except
    as may be allowed under discovery rules adopted by the
    Illinois Supreme Court. The records, documents and
    information relating to a real estate sale shall be exempt
    until a sale is consummated.
        (s) Any and all proprietary information and records
    related to the operation of an intergovernmental risk
    management association or self-insurance pool or jointly
    self-administered health and accident cooperative or pool.
    Insurance or self insurance (including any
    intergovernmental risk management association or self
    insurance pool) claims, loss or risk management
    information, records, data, advice or communications.
        (t) Information contained in or related to
    examination, operating, or condition reports prepared by,
    on behalf of, or for the use of a public body responsible
    for the regulation or supervision of financial
    institutions or insurance companies, unless disclosure is
    otherwise required by State law.
        (u) Information that would disclose or might lead to
    the disclosure of secret or confidential information,
    codes, algorithms, programs, or private keys intended to be
    used to create electronic or digital signatures under the
    Electronic Commerce Security Act.
        (v) Vulnerability assessments, security measures, and
    response policies or plans that are designed to identify,
    prevent, or respond to potential attacks upon a community's
    population or systems, facilities, or installations, the
    destruction or contamination of which would constitute a
    clear and present danger to the health or safety of the
    community, but only to the extent that disclosure could
    reasonably be expected to jeopardize the effectiveness of
    the measures or the safety of the personnel who implement
    them or the public. Information exempt under this item may
    include such things as details pertaining to the
    mobilization or deployment of personnel or equipment, to
    the operation of communication systems or protocols, or to
    tactical operations.
        (w) (Blank).
        (x) Maps and other records regarding the location or
    security of generation, transmission, distribution,
    storage, gathering, treatment, or switching facilities
    owned by a utility, by a power generator, or by the
    Illinois Power Agency.
        (y) Information contained in or related to proposals,
    bids, or negotiations related to electric power
    procurement under Section 1-75 of the Illinois Power Agency
    Act and Section 16-111.5 of the Public Utilities Act that
    is determined to be confidential and proprietary by the
    Illinois Power Agency or by the Illinois Commerce
    Commission.
        (z) Information about students exempted from
    disclosure under Sections 10-20.38 or 34-18.29 of the
    School Code, and information about undergraduate students
    enrolled at an institution of higher education exempted
    from disclosure under Section 25 of the Illinois Credit
    Card Marketing Act of 2009.
        (aa) Information the disclosure of which is exempted
    under the Viatical Settlements Act of 2009.
        (bb) Records and information provided to a mortality
    review team and records maintained by a mortality review
    team appointed under the Department of Juvenile Justice
    Mortality Review Team Act.
        (cc) Information regarding interments, entombments, or
    inurnments of human remains that are submitted to the
    Cemetery Oversight Database under the Cemetery Care Act or
    the Cemetery Oversight Act, whichever is applicable.
        (dd) Correspondence and records (i) that may not be
    disclosed under Section 11-9 of the Public Aid Code or (ii)
    that pertain to appeals under Section 11-8 of the Public
    Aid Code.
        (ee) (dd) The names, addresses, or other personal
    information of persons who are minors and are also
    participants and registrants in programs of park
    districts, forest preserve districts, conservation
    districts, recreation agencies, and special recreation
    associations.
        (ff) (ee) The names, addresses, or other personal
    information of participants and registrants in programs of
    park districts, forest preserve districts, conservation
    districts, recreation agencies, and special recreation
    associations where such programs are targeted primarily to
    minors.
        (gg) Confidential information described in Section
    1-100 of the Illinois Independent Tax Tribunal Act of 2012.
    (2) A public record that is not in the possession of a
public body but is in the possession of a party with whom the
agency has contracted to perform a governmental function on
behalf of the public body, and that directly relates to the
governmental function and is not otherwise exempt under this
Act, shall be considered a public record of the public body,
for purposes of this Act.
    (3) This Section does not authorize withholding of
information or limit the availability of records to the public,
except as stated in this Section or otherwise provided in this
Act.
(Source: P.A. 96-261, eff. 1-1-10; 96-328, eff. 8-11-09;
96-542, eff. 1-1-10; 96-558, eff. 1-1-10; 96-736, eff. 7-1-10;
96-863, eff. 3-1-10; 96-1378, eff. 7-29-10; 97-333, eff.
8-12-11; 97-385, eff. 8-15-11; 97-452, eff. 8-19-11; revised
9-2-11.)
 
    Section 5-15. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by changing Section
2505-510 as follows:
 
    (20 ILCS 2505/2505-510)  (was 20 ILCS 2505/39b20.1)
    Sec. 2505-510. Informal assessment review.
    (a) The Department has the power to establish an informal
assessment review process at which an impartial Department
designee, who has the authority and knowledge to recommend an
appropriate conclusion to the matter, shall review adjustments
recommended by examiners and auditors. The Director shall
provide by rule for the availability of an informal assessment
review before the issuance of a notice of tax liability or
notice of deficiency upon completion of an audit of the
taxpayer or before a formal hearing. A taxpayer may be
represented by a party of his or her choice during the informal
assessment review procedure and need not be represented by an
attorney.
    (b) The exercise of this power to establish an informal
assessment review procedure is mandatory, and the Director
shall promulgate rules implementing this process within 180
days after the effective date of this amendatory Act of 1988.
    (c) Offers of disposition of a proposed audit adjustment
may be proposed during the informal assessment review process.
The panel shall consider disposing of the matter in controversy
in all instances where, having made a reasonable evaluation of
such matters, the panel determines that there is uncertainty as
to the correctness of the proposed audit adjustments, and it is
not in the best interest of the Department to issue an
assessment or claim denial with respect to the issue due to,
among other factors, potential hazards of litigation.
(Source: P.A. 91-239, eff. 1-1-00.)
 
    Section 5-20. The Illinois Income Tax Act is amended by
changing Sections 908, 909, 910, 914, 916, 918, 1201, 1202, and
1408 as follows:
 
    (35 ILCS 5/908)  (from Ch. 120, par. 9-908)
    Sec. 908. Procedure on protest.
    (a) Time for protest. Within 60 days (150 days if the
taxpayer is outside the United States) after the issuance of a
notice of deficiency, the taxpayer may file (i) a protest
against the proposed assessment with the Department or (ii) a
petition with the Illinois Independent Tax Tribunal, as
provided in this subsection (a). Prior to July 1, 2013, a
written protest against the proposed assessment shall be filed
with the Department in such form as the Department may by
regulations prescribe, setting forth the grounds on which such
protest is based. If such a protest is filed, the Department
shall reconsider the proposed assessment and, if the taxpayer
has so requested, shall grant the taxpayer or his authorized
representative a hearing.
    On and after July 1, 2013, all protests of a notice of
deficiency that are subject to the jurisdiction of the Illinois
Independent Tax Tribunal shall be filed by petition pursuant to
the Illinois Independent Tax Tribunal Act of 2012.
    With respect to protests filed with the Department prior to
July 1, 2013 that are otherwise subject to the jurisdiction of
the Illinois Independent Tax Tribunal, the taxpayer may elect
to be subject to the provisions of the Illinois Independent Tax
Tribunal Act of 2012 at any time on or after July 1, 2013, but
not later than 30 days after the date on which the protest was
filed. If made, the election shall be irrevocable.
    (b) Notice of decision. With respect to protests filed with
the Department that are not subject to the provisions of the
Illinois Independent Tax Tribunal Act of 2012, as As soon as
practicable after such reconsideration and hearing, if any, the
Department shall issue a notice of decision by mailing such
notice by certified or registered mail. Such notice shall set
forth briefly the Department's findings of fact and the basis
of decision in each case decided in whole or in part adversely
to the taxpayer.
    (c) Request for rehearing. With respect to protests filed
with the Department that are not subject to the provisions of
the Illinois Independent Tax Tribunal Act of 2012, within
Within 30 days after the mailing of a notice of decision, the
taxpayer may file with a Department a written request for
rehearing in such form as the Department may by regulations
prescribe, setting forth the grounds on which rehearing is
requested. In any such case, the Department shall, in its
discretion, grant either a rehearing or Departmental review
unless, within 10 days of receipt of such request, it shall
issue a denial of such request by mailing such denial to the
taxpayer by certified or registered mail. If rehearing or
Departmental review is granted, as soon as practicable after
such rehearing or Departmental review, the Department shall
issue a notice of final decision as provided in subsection (b).
    (d) Finality of decision. If the taxpayer fails to file a
timely protest or petition under subsection (a) of this
Section, then the Department's notice of deficiency shall
become a final assessment at the end of the 60th day after the
date of issuance of the notice of deficiency (or the 150th day
if the taxpayer is outside the United States). If the taxpayer
files a protest with the Department, and the taxpayer does not
elect to be subject to the provisions of the Illinois
Independent Tax Tribunal Act of 2012, then the The action of
the Department on the taxpayer's protest shall become final:
        (1) 30 Days after issuance of a notice of decision as
    provided in subsection (b); or
        (2) if a timely request for rehearing was made, upon
    the issuance of a denial of such request or the issuance of
    a notice of final decision as provided in subsection (c).
    After the issuance of a final assessment, or a notice of
deficiency which becomes final without the necessity of
actually issuing a final assessment as provided in this
Section, the Department, at any time before such assessment is
reduced to judgment, may (subject to rules of the Department)
grant a rehearing (or grant departmental review and hold an
original hearing if no previous hearing in the matter has been
held) upon the application of the person aggrieved. Pursuant to
such hearing or rehearing, the Department shall issue a revised
final assessment to such person or his legal representative for
the amount found to be due as a result of such hearing or
rehearing.
    If the taxpayer files a petition with the Illinois
Independent Tax Tribunal, or otherwise elects to be subject to
the provisions of the Illinois Independent Tax Tribunal Act of
2012, then the Department's decision will become final as
provided in that Act.
(Source: P.A. 87-192; 87-205.)
 
    (35 ILCS 5/909)  (from Ch. 120, par. 9-909)
    Sec. 909. Credits and Refunds.
    (a) In general. In the case of any overpayment, the
Department, within the applicable period of limitations for a
claim for refund, may credit the amount of such overpayment,
including any interest allowed thereon, against any liability
in respect of the tax imposed by this Act, regardless of
whether other collection remedies are closed to the Department
on the part of the person who made the overpayment and shall
refund any balance to such person.
    (b) Credits against estimated tax. The Department may
prescribe regulations providing for the crediting against the
estimated tax for any taxable year of the amount determined by
the taxpayer or the Department to be an overpayment of the tax
imposed by this Act for a preceding taxable year.
    (c) Interest on overpayment. Interest shall be allowed and
paid at the rate and in the manner prescribed in Section 3-2 of
the Uniform Penalty and Interest Act upon any overpayment in
respect of the tax imposed by this Act. For purposes of this
subsection, no amount of tax, for any taxable year, shall be
treated as having been paid before the date on which the tax
return for such year was due under Section 505, without regard
to any extension of the time for filing such return.
    (d) Refund claim. Every claim for refund shall be filed
with the Department in writing in such form as the Department
may by regulations prescribe, and shall state the specific
grounds upon which it is founded.
    (e) Notice of denial. As soon as practicable after a claim
for refund is filed, the Department shall examine it and either
issue a notice of refund, abatement or credit to the claimant
or issue a notice of denial. If the Department has failed to
approve or deny the claim before the expiration of 6 months
from the date the claim was filed, the claimant may
nevertheless thereafter file with the Department a written
protest in such form as the Department may by regulation
prescribe, provided that, on or after July 1, 2013, protests
concerning matters that are subject to the jurisdiction of the
Illinois Independent Tax Tribunal shall be filed with the
Illinois Independent Tax Tribunal and not with the Department.
If the protest is subject to the jurisdiction of the Department
a protest is filed, the Department shall consider the claim
and, if the taxpayer has so requested, shall grant the taxpayer
or the taxpayer's authorized representative a hearing within 6
months after the date such request is filed.
    On and after July 1, 2013, if the protest would otherwise
be subject to the jurisdiction of the Illinois Independent Tax
Tribunal, the claimant may elect to treat the Department's
non-action as a denial of the claim by filing a petition to
review the Department's administrative decision with the
Illinois Tax Tribunal, as provided by Section 910.
    (f) Effect of denial. A denial of a claim for refund
becomes final 60 days after the date of issuance of the notice
of such denial except for such amounts denied as to which the
claimant has filed a protest with the Department or a petition
with the Illinois Tax Tribunal, as provided by Section 910.
    (g) An overpayment of tax shown on the face of an unsigned
return shall be considered forfeited to the State if after
notice and demand for signature by the Department the taxpayer
fails to provide a signature and 3 years have passed from the
date the return was filed. An overpayment of tax refunded to a
taxpayer whose return was filed electronically shall be
considered an erroneous refund under Section 912 of this Act
if, after proper notice and demand by the Department, the
taxpayer fails to provide a required signature document. A
notice and demand for signature in the case of a return
reflecting an overpayment may be made by first class mail. This
subsection (g) shall apply to all returns filed pursuant to
this Act since 1969.
    (h) This amendatory Act of 1983 applies to returns and
claims for refunds filed with the Department on and after July
1, 1983.
(Source: P.A. 97-507, eff. 8-23-11.)
 
    (35 ILCS 5/910)  (from Ch. 120, par. 9-910)
    Sec. 910. Procedure on Denial of Claim for Refund.
    (a) Time for protest. Within 60 days after the denial of
the claim, the claimant may file (i) a protest with the
Department or (ii) a petition with the Illinois Independent Tax
Tribunal, as provided in this subsection (a). A a written
protest against such denial shall be filed with the Department
in such form as the Department may by regulations prescribe,
setting forth the grounds on which such protest is based. If
such a protest is filed, the Department shall reconsider the
denial and, if the taxpayer has so requested, shall grant the
taxpayer or his authorized representative a hearing. With
respect to protests filed with the Department prior to July 1,
2013 that would otherwise be subject to the jurisdiction of the
Illinois Independent Tax Tribunal, the taxpayer may elect to be
subject to the provisions of the Illinois Independent Tax
Tribunal Act of 2012 on or after July 1, 2013, but not later
than 30 days after the date on which the protest was filed. If
made, the election shall be irrevocable.
    A claimant who, on or after July 1, 2013, wishes to protest
a denial that is subject to the jurisdiction of the Illinois
Independent Tax Tribunal shall do so by filing a petition with
the Illinois Independent Tax Tribunal pursuant to the Illinois
Independent Tax Tribunal Act of 2012.
    (b) Notice of decision. With respect to protests that are
subject to the jurisdiction of the Department, if the taxpayer
has not made an election to be subject to the provisions of the
Illinois Independent Tax Tribunal Act of 2012, then as As soon
as practicable after such reconsideration and hearing, if any,
the Department shall issue a notice of decision by mailing such
notice by certified or registered mail. Such notice shall set
forth briefly the Department's findings of fact and the basis
of decision in each case decided in whole or in part adversely
to the claimant.
    (c) Request for rehearing. Within 30 days after the mailing
of a notice of decision as provided in subsection (b), the
claimant may file with the Department a written request for
rehearing in such form as the Department may by regulations
prescribe, setting forth the grounds on which rehearing is
requested. In any such case, the Department shall, in its
discretion, grant either a rehearing or Departmental review
unless, within 10 days of receipt of such request, it shall
issue a denial of such request by mailing such denial to the
claimant by certified or registered mail. If rehearing or
Departmental review is granted, as soon as practicable after
such rehearing or Departmental review, the Department shall
issue a notice of final decision as provided in subsection (b).
    (d) Finality of decision. If the taxpayer fails to file a
timely protest or petition under subsection (a) of this
Section, then the Department's notice of deficiency shall
become a final assessment at the end of the 60th day after the
date of issuance of the notice of deficiency. If the protest is
subject to the jurisdiction of the Department, and the taxpayer
does not elect to be subject to the provisions of the Illinois
Independent Tax Tribunal Act of 2012, then the The action of
the Department on the claimant's protest shall become final:
        (1) 30 days after issuance of a notice of decision as
    provided in subsection (b); or
        (2) If a timely request for rehearing was made, upon
    the issuance of a denial of such request or the issuance of
    a notice of final decision as provided in subsection (c).
    If the taxpayer files a petition with the Illinois
Independent Tax Tribunal, or otherwise elects to be subject to
the provisions of the Illinois Independent Tax Tribunal Act of
2012, then the Department's decision will become final as
provided in that Act.
(Source: P.A. 89-399, eff. 8-20-95.)
 
    (35 ILCS 5/914)  (from Ch. 120, par. 9-914)
    Sec. 914. Conduct of Investigations and Hearings. For the
purpose of administering and enforcing the provisions of this
Act, the Department, or any officer or employee of the
Department designated, in writing, by the Director may hold
investigations and hearings concerning any matters covered by
this Act that are not otherwise delegated to the Illinois
Independent Tax Tribunal, and may examine any books, papers,
records or memoranda bearing upon such matters, and may require
the attendance of any person, or any officer or employee of
such person, having knowledge of such matters, and may take
testimony and require proof for its information. In the conduct
of any investigation or hearing, neither the Department nor any
officer or employee thereof shall be bound by the technical
rules of evidence, and no informality in any proceeding, or in
the manner of taking testimony, shall invalidate any order,
decision, rule or regulation made or approved or confirmed by
the Department. The Director, or any officer or employee of the
Department authorized by the Director shall have power to
administer oaths to such persons. The books, papers, records
and memoranda of the Department, or parts thereof, may be
proved in any hearing, investigation, or legal proceeding by a
reproduced copy thereof or by a computer print-out of
Department records, under the certificate of the Director. If
reproduced copies of the Department's books, papers, records or
memoranda are offered as proof, the Director must certify that
those copies are true and exact copies of such records on file
with the Department. If computer print-outs of records of the
Department are offered as proof, the Director must certify that
those computer print-outs are true and exact representations of
records properly entered into standard electronic computing
equipment, in the regular course of the Department's business,
at or reasonably near the time of the occurrence of the facts
recorded, from trustworthy and reliable information. Such
reproduced copy shall, without further proof, be admitted into
evidence before the Department or in any legal proceeding.
(Source: P.A. 85-299.)
 
    (35 ILCS 5/916)  (from Ch. 120, par. 9-916)
    Sec. 916. Production of Witnesses and Records. (a)
Subpoenas. The Department or any officer or employee of the
Department designated in writing by the Director, shall at its
or his or her own instance, or on the written request of any
other party to the proceeding, issue subpoenas requiring the
attendance of and the giving of testimony by witnesses, and
subpoenas duces tecum requiring the production of books,
papers, records or memoranda. All subpoenas and subpoenas duces
tecum issued under this Act may be served by any person of full
age.
    (b) Fees. The fees of witnesses for attendance and travel
shall be the same as the fees of witnesses before a Circuit
Court of this State, such fees to be paid when the witness is
excused from further attendance. When the witness is subpoenaed
at the instance of the Department or any officer or employee
thereof, such fees shall be paid in the same manner as other
expenses of the Department, and when the witness is subpoenaed
at the instance of any other party to any such proceeding the
Department may require that the cost of service of the subpoena
or subpoenas duces tecum and the fee of the witness be borne by
the party at whose instance the witness is summoned. In such
case, the Department, in its discretion, may require a deposit
to cover the cost of such service and witness fees. A subpoena
or subpoena duces tecum so issued shall be served in the same
manner as a subpoena issued out of a court.
    (c) Judicial enforcement. Any Circuit Court of this State,
upon the application of the Department or any officer or
employee thereof, or upon the application of any other party to
the proceeding may, in its discretion, compel the attendance of
witnesses, the production of books, papers, records or
memoranda and the giving of testimony before the Department or
any officer or employee thereof conducting an investigation or
holding a hearing not otherwise delegated to the Illinois
Independent Tax Tribunal authorized by this Act, by an
attachment for contempt, or otherwise, in the same manner as
production of evidence may be compelled before the Court.
(Source: P.A. 83-334.)
 
    (35 ILCS 5/918)  (from Ch. 120, par. 9-918)
    Sec. 918. Place of Hearings.
    All hearings provided for in this Act and not otherwise
delegated to the Illinois Independent Tax Tribunal with respect
to or concerning a taxpayer having his residence or commercial
domicile in this State shall be held at the Department's office
nearest to the location of such residence or domicile, except
that if the taxpayer has his residence or commercial domicile
in Cook County, such hearing shall be held in Cook County. If
the taxpayer does not have his residence or commercial domicile
in this State, such hearing shall be held in Cook County.
(Source: P.A. 76-261.)
 
    (35 ILCS 5/1201)  (from Ch. 120, par. 12-1201)
    Sec. 1201. Administrative Review Law; Illinois Independent
Tax Tribunal Act of 2012. The provisions of the Administrative
Review Law, and the rules adopted pursuant thereto, shall apply
to and govern all proceedings for the judicial review of final
actions of the Department referred to in Sections 908 (d) and
910 (d). Such final actions shall constitute "administrative
decisions" as defined in Section 3-101 of the Code of Civil
Procedure.
    Notwithstanding any other provision of law, on and after
July 1, 2013, the provisions of the Illinois Independent Tax
Tribunal Act, and the rules adopted pursuant thereto, shall
apply to and govern all proceedings for the judicial review of
final administrative decisions of the Department that are
subject to that Act, as defined in Section 1-70 of the Illinois
Independent Tax Tribunal Act of 2012.
(Source: P.A. 82-783.)
 
    (35 ILCS 5/1202)  (from Ch. 120, par. 12-1202)
    Sec. 1202. Venue.
    Except as otherwise provided in the Illinois Tax Tribunal
Act, the The Circuit Court of the county wherein the taxpayer
has his residence or commercial domicile, or of Cook County in
those cases where the taxpayer does not have his residence or
commercial domicile in this State, shall have power to review
all final administrative decisions of the Department in
administering the provisions of this Act.
(Source: P.A. 76-261.)
 
    (35 ILCS 5/1408)  (from Ch. 120, par. 14-1408)
    Sec. 1408. Except as otherwise provided in the Illinois Tax
Tribunal Act, the The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department of Revenue under this
Act, except that (1) paragraph (b) of Section 5-10 of the
Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2)
subparagraph (a)2 of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to forms
established by the Department for use under this Act, and (3)
the provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded and
not applicable to the Department under this Act.
(Source: P.A. 88-45.)
 
    Section 5-25. The Use Tax Act is amended by changing
Sections 12b and 20 as follows:
 
    (35 ILCS 105/12b)  (from Ch. 120, par. 439.12b)
    Sec. 12b. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department of Revenue under this
Act, except that (1) paragraph (b) of Section 5-10 of the
Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2)
subparagraph (a)2 of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to forms
established by the Department for use under this Act, and (3)
the provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded and
not applicable to the Department under this Act to the extent
Section 10-45 applies to hearings not otherwise delegated to
the Illinois Independent Tax Tribunal.
(Source: P.A. 88-45.)
 
    (35 ILCS 105/20)  (from Ch. 120, par. 439.20)
    Sec. 20. As soon as practicable after a claim for credit or
refund is filed, the Department shall examine the same and
determine the amount of credit or refund to which the claimant
or the claimant's legal representative, in the event that the
claimant shall have died or become a person under legal
disability, is entitled and shall, by its Notice of Tentative
Determination of Claim, notify the claimant or his or her legal
representative of such determination, which determination
shall be prima facie correct. Proof of such determination by
the Department may be made at any hearing before the Department
or in any legal proceeding by a reproduced copy of the
Department's record relating thereto, in the name of the
Department under the certificate of the Director of Revenue.
Such reproduced copy shall, without further proof, be admitted
into evidence before the Department or in any legal proceeding
and shall be prima facie proof of the correctness of the
Department's determination, as shown therein. If such
claimant, or the legal representative of a deceased claimant or
a claimant who is a person under legal disability shall, within
60 days after the Department's Notice of Tentative
Determination of Claim, file a protest thereto and request a
hearing thereon, the Department shall give notice to such
claimant, or the legal representative of a deceased claimant,
or a claimant who is a person under legal disability of the
time and place fixed for such hearing, and shall hold a hearing
in conformity with the provisions of this Act. On and after
July 1, 2013, protests concerning matters that are subject to
the jurisdiction of the Illinois Independent Tax Tribunal shall
be filed with the Tax Tribunal in accordance with the Illinois
Independent Tax Tribunal Act of 2012, and hearings concerning
those matters shall be held before the Tribunal in accordance
with that Act. With respect to protests filed with the
Department prior to July 1, 2013 that would otherwise be
subject to the jurisdiction of the Illinois Independent Tax
Tribunal, the taxpayer may elect to be subject to the
provisions of the Illinois Independent Tax Tribunal Act of 2012
at any time on or after July 1, 2013, but not later than 30 days
after the date on which the protest was filed. If made, the
election shall be irrevocable. The Department , and pursuant
thereto shall issue its Final Determination of the amount, if
any, found to be due as a result of a such hearing before the
Department or the Tribunal, to such claimant, or the legal
representative of a deceased claimant or a claimant who is a
person under legal disability.
    If a protest to the Department's Notice of Tentative
Determination of Claim is not filed within 60 days and a
request for a hearing thereon is not made as provided herein,
the said Notice shall thereupon become and operate as a Final
Determination; and, if the Department's Notice of Tentative
Determination, upon becoming a Final Determination, indicates
no amount due to the claimant, or, upon issuance of a credit or
refund for the amount, if any, found by the Department to be
due, the claim in all its aspects shall be closed and no longer
open to protest, hearing, judicial review, or by any other
proceeding or action whatever, either before the Department or
in any court of this State. Claims for credit or refund
hereunder must be filed with and initially determined by the
Department, the remedy herein provided being exclusive; and no
court shall have jurisdiction to determine the merits of any
claim except upon review as provided in this Act.
(Source: P.A. 90-491, eff. 1-1-98.)
 
    Section 5-30. The Service Use Tax Act is amended by
changing Sections 11, 18, and 20a as follows:
 
    (35 ILCS 110/11)  (from Ch. 120, par. 439.41)
    Sec. 11. Every serviceman required or authorized to collect
taxes hereunder and every user who is subject to the tax
imposed by this Act shall keep such records, receipts, invoices
and other pertinent books, documents, memoranda and papers as
the Department shall require, in such form as the Department
shall require. The Department may adopt rules that establish
requirements, including record forms and formats, for records
required to be kept and maintained by taxpayers. For purposes
of this Section, "records" means all data maintained by the
taxpayer, including data on paper, microfilm, microfiche or any
type of machine-sensible data compilation. For the purpose of
administering and enforcing the provisions hereof, the
Department, or any officer or employee of the Department
designated, in writing, by the Director thereof, may hold
investigations and hearings concerning any matters covered
herein and not otherwise delegated to the Illinois Independent
Tax Tribunal and may examine any relevant books, papers,
records, documents or memoranda of any serviceman or any
taxable purchaser for use hereunder, and may require the
attendance of such person or any officer or employee of such
person, or of any person having knowledge of the facts, and may
take testimony and require proof for its information.
(Source: P.A. 88-480.)
 
    (35 ILCS 110/18)  (from Ch. 120, par. 439.48)
    Sec. 18. As soon as practicable after a claim for credit or
refund is filed, the Department shall examine the same and
determine the amount of credit or refund to which the claimant
or the claimant's legal representative, in the event that the
claimant shall have died or become a person under legal
disability, is entitled and shall, by its Notice of Tentative
Determination of Claim, notify the claimant or his legal
representative of such determination, which determination
shall be prima facie correct. Proof of such determination by
the Department may be made at any hearing before the Department
or the Illinois Independent Tax Tribunal, as applicable, or in
any legal proceeding by a reproduced copy of the Department's
record relating thereto, in the name of the Department under
the certificate of the Director of Revenue. Such reproduced
copy shall, without further proof, be admitted into evidence
before the Department or in any legal proceeding and shall be
prima facie proof of the correctness of the Department's
determination, as shown therein. If such claimant, or the legal
representative of a deceased claimant or a claimant who is a
person under legal disability, shall, within 60 days after the
Department's Notice of Tentative Determination of Claim, file a
protest thereto and request a hearing thereon, the Department
shall give notice to such claimant, or the legal representative
of a deceased claimant or claimant who is a person under legal
disability, of the time and place fixed for such hearing, and
shall hold a hearing in conformity with the provisions of this
Act, and pursuant thereto shall issue its Final Determination
of the amount, if any, found to be due as a result of such
hearing, to such claimant, or the legal representative of a
deceased or incompetent claimant.
    If a protest to the Department's Notice of Tentative
Determination of Claim is not filed within 60 days and a
request for a hearing thereon is not made as provided herein,
the Notice shall thereupon become and operate as a Final
Determination; and, if the Department's Notice of Tentative
Determination upon becoming a Final Determination, indicates
no amount due to the claimant, or, upon issuance of a credit or
refund for the amount, if any, found by the Department to be
due, the claim in all its aspects shall be closed and no longer
open to protest, hearing, judicial review, or by any other
proceeding or action whatever, either before the Department or
in any court of this State. Claims for credit or refund
hereunder must be filed with and initially determined by the
Department, the remedy herein provided being exclusive; and no
court shall have jurisdiction to determine the merits of any
claim except upon review as provided in this Act.
(Source: P.A. 90-491, eff. 1-1-98.)
 
    (35 ILCS 110/20a)  (from Ch. 120, par. 439.50a)
    Sec. 20a. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department of Revenue under this
Act, except that (1) paragraph (b) of Section 5-10 of the
Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2)
subparagraph (a)2 of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to forms
established by the Department for use under this Act, and (3)
the provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded and
not applicable to the Department under this Act to the extent
Section 10-45 applies to hearings not otherwise delegated to
the Illinois Independent Tax Tribunal.
(Source: P.A. 88-45.)
 
    Section 5-35. The Service Occupation Tax Act is amended by
changing Sections 11, 18, and 20a as follows:
 
    (35 ILCS 115/11)  (from Ch. 120, par. 439.111)
    Sec. 11. Every supplier required or authorized to collect
taxes hereunder and every serviceman making sales of service in
this State on or after the effective date hereof shall keep
such records, receipts, invoices and other pertinent books,
documents, memoranda and papers as the Department shall
require, in such form as the Department shall require. The
Department may adopt rules that establish requirements,
including record forms and formats, for records required to be
kept and maintained by taxpayers. For purposes of this Section,
"records" means all data maintained by the taxpayer, including
data on paper, microfilm, microfiche or any type of
machine-sensible data compilation. For the purpose of
administering and enforcing the provisions hereof, the
Department, or any officer or employee of the Department
designated, in writing, by the Director thereof, may hold
investigations and hearings not otherwise delegated to the
Illinois Independent Tax Tribunal concerning any matters
covered herein and may examine any books, papers, records,
documents or memoranda of any supplier or serviceman bearing
upon the sales of services or the sales of tangible personal
property to servicemen, and may require the attendance of such
person or any officer or employee of such person, or of any
person having knowledge of the facts, and may take testimony
and require proof for its information.
(Source: P.A. 88-480.)
 
    (35 ILCS 115/18)  (from Ch. 120, par. 439.118)
    Sec. 18. As soon as practicable after a claim for credit or
refund is filed, the Department shall examine the same and
determine the amount of credit or refund to which the claimant
or the claimant's legal representative, in the event that the
claimant shall have died or become a person under legal
disability, is entitled and shall, by its Notice of Tentative
Determination of Claim, notify the claimant or his or her legal
representative of such determination, which determination
shall be prima facie correct. Proof of such determination by
the Department may be made at any hearing before the Department
or the Illinois Independent Tax Tribunal, as applicable, or in
any legal proceeding by a reproduced copy of the Department's
record relating thereto, in the name of the Department under
the certificate of the Director of Revenue. Such reproduced
copy shall, without further proof, be admitted into evidence
before the Department or in any legal proceeding and shall be
prima facie proof of the correctness of the Department's
determination, as shown therein. If such claimant, or the legal
representative of a deceased claimant or a claimant who is
under legal disability shall, within 60 days after the
Department's Notice of Tentative Determination of Claim, file a
protest thereto and request a hearing thereon, the Department
shall give notice to such claimant, or the legal representative
of a deceased claimant or a claimant who is under legal
disability, of the time and place fixed for such hearing, and
shall hold a hearing in conformity with the provisions of this
Act, and pursuant thereto shall issue its Final Determination
of the amount, if any, found to be due as a result of such
hearing, to such claimant, or the legal representative of a
deceased claimant or a claimant who is under legal disability.
    If a protest to the Department's Notice of Tentative
Determination of Claim is not filed within 60 days and a
request for a hearing thereon is not made as provided herein,
the Notice shall thereupon become and operate as a Final
Determination; and, if the Department's Notice of Tentative
Determination, upon becoming a Final Determination, indicates
no amount due to the claimant, or, upon issuance of a credit or
refund for the amount, if any, found by the Department to be
due, the claim in all its aspects shall be closed and no longer
open to protest, hearing, judicial review, or by any other
proceeding or action whatever, either before the Department or
in any court of this State. Claims for credit or refund
hereunder must be filed with and initially determined by the
Department, the remedy herein provided being exclusive; and no
court shall have jurisdiction to determine the merits of any
claim except upon review as provided in this Act.
(Source: P.A. 90-491, eff. 1-1-98.)
 
    (35 ILCS 115/20a)  (from Ch. 120, par. 439.120a)
    Sec. 20a. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department of Revenue under this
Act, except that (1) paragraph (b) of Section 5-10 of the
Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2)
subparagraph (a)2 of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to forms
established by the Department for use under this Act, and (3)
the provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded and
not applicable to the Department under this Act to the extent
Section 10-45 applies to hearings not otherwise delegated to
the Illinois Independent Tax Tribunal.
(Source: P.A. 88-45.)
 
    Section 5-40. The Retailers' Occupation Tax Act is amended
by changing Sections 4, 5, 5a, 8, 9, 11a, and 12 as follows:
 
    (35 ILCS 120/4)  (from Ch. 120, par. 443)
    Sec. 4. As soon as practicable after any return is filed,
the Department shall examine such return and shall, if
necessary, correct such return according to its best judgment
and information. If the correction of a return results in an
amount of tax that is understated on the taxpayer's return due
to a mathematical error, the Department shall notify the
taxpayer that the amount of tax in excess of that shown on the
return is due and has been assessed. The term "mathematical
error" means arithmetic errors or incorrect computations on the
return or supporting schedules. No such notice of additional
tax due shall be issued on and after each July 1 and January 1
covering gross receipts received during any month or period of
time more than 3 years prior to such July 1 and January 1,
respectively. Such notice of additional tax due shall not be
considered a notice of tax liability nor shall the taxpayer
have any right of protest. In the event that the return is
corrected for any reason other than a mathematical error, any
return so corrected by the Department shall be prima facie
correct and shall be prima facie evidence of the correctness of
the amount of tax due, as shown therein. In correcting
transaction by transaction reporting returns provided for in
Section 3 of this Act, it shall be permissible for the
Department to show a single corrected return figure for any
given period of a calendar month instead of having to correct
each transaction by transaction return form individually and
having to show a corrected return figure for each of such
transaction by transaction return forms. In making a correction
of transaction by transaction, monthly or quarterly returns
covering a period of 6 months or more, it shall be permissible
for the Department to show a single corrected return figure for
any given 6-month period.
    Instead of requiring the person filing such return to file
an amended return, the Department may simply notify him of the
correction or corrections it has made.
    Proof of such correction by the Department may be made at
any hearing before the Department or the Illinois Independent
Tax Tribunal or in any legal proceeding by a reproduced copy or
computer print-out of the Department's record relating thereto
in the name of the Department under the certificate of the
Director of Revenue. If reproduced copies of the Department's
records are offered as proof of such correction, the Director
must certify that those copies are true and exact copies of
records on file with the Department. If computer print-outs of
the Department's records are offered as proof of such
correction, the Director must certify that those computer
print-outs are true and exact representations of records
properly entered into standard electronic computing equipment,
in the regular course of the Department's business, at or
reasonably near the time of the occurrence of the facts
recorded, from trustworthy and reliable information. Such
certified reproduced copy or certified computer print-out
shall without further proof, be admitted into evidence before
the Department or in any legal proceeding and shall be prima
facie proof of the correctness of the amount of tax due, as
shown therein.
    If the tax computed upon the basis of the gross receipts as
fixed by the Department is greater than the amount of tax due
under the return or returns as filed, the Department shall (or
if the tax or any part thereof that is admitted to be due by a
return or returns, whether filed on time or not, is not paid,
the Department may) issue the taxpayer a notice of tax
liability for the amount of tax claimed by the Department to be
due, together with a penalty in an amount determined in
accordance with Section 3-3 of the Uniform Penalty and Interest
Act. Provided, that if the incorrectness of any return or
returns as determined by the Department is due to negligence or
fraud, said penalty shall be in an amount determined in
accordance with Section 3-5 or Section 3-6 of the Uniform
Penalty and Interest Act, as the case may be. If the notice of
tax liability is not based on a correction of the taxpayer's
return or returns, but is based on the taxpayer's failure to
pay all or a part of the tax admitted by his return or returns
(whether filed on time or not) to be due, such notice of tax
liability shall be prima facie correct and shall be prima facie
evidence of the correctness of the amount of tax due, as shown
therein.
    Proof of such notice of tax liability by the Department may
be made at any hearing before the Department or the Illinois
Independent Tax Tribunal or in any legal proceeding by a
reproduced copy of the Department's record relating thereto in
the name of the Department under the certificate of the
Director of Revenue. Such reproduced copy shall without further
proof, be admitted into evidence before the Department or in
any legal proceeding and shall be prima facie proof of the
correctness of the amount of tax due, as shown therein.
    If the person filing any return dies or becomes a person
under legal disability at any time before the Department issues
its notice of tax liability, such notice shall be issued to the
administrator, executor or other legal representative, as
such, of such person.
    Except in case of a fraudulent return, or in the case of an
amended return (where a notice of tax liability may be issued
on or after each January 1 and July 1 for an amended return
filed not more than 3 years prior to such January 1 or July 1,
respectively), no notice of tax liability shall be issued on
and after each January 1 and July 1 covering gross receipts
received during any month or period of time more than 3 years
prior to such January 1 and July 1, respectively. If, before
the expiration of the time prescribed in this Section for the
issuance of a notice of tax liability, both the Department and
the taxpayer have consented in writing to its issuance after
such time, such notice may be issued at any time prior to the
expiration of the period agreed upon. The period so agreed upon
may be extended by subsequent agreements in writing made before
the expiration of the period previously agreed upon. The
foregoing limitations upon the issuance of a notice of tax
liability shall not apply to the issuance of a notice of tax
liability with respect to any period of time prior thereto in
cases where the Department has, within the period of limitation
then provided, notified the person making the return of a
notice of tax liability even though such return, with which the
tax that was shown by such return to be due was paid when the
return was filed, had not been corrected by the Department in
the manner required herein prior to the issuance of such
notice, but in no case shall the amount of any such notice of
tax liability for any period otherwise barred by this Act
exceed for such period the amount shown in the notice of tax
liability theretofore issued.
    If, when a tax or penalty under this Act becomes due and
payable, the person alleged to be liable therefor is out of the
State, the notice of tax liability may be issued within the
times herein limited after his coming into or return to the
State; and if, after the tax or penalty under this Act becomes
due and payable, the person alleged to be liable therefor
departs from and remains out of the State, the time of his or
her absence is no part of the time limited for the issuance of
the notice of tax liability; but the foregoing provisions
concerning absence from the State shall not apply to any case
in which, at the time when a tax or penalty becomes due under
this Act, the person allegedly liable therefor is not a
resident of this State.
    The time limitation period on the Department's right to
issue a notice of tax liability shall not run during any period
of time in which the Order of any Court has the effect of
enjoining or restraining the Department from issuing the notice
of tax liability.
    If such person or legal representative shall within 60 days
after such notice of tax liability file a protest to said
notice of tax liability with the Department and request a
hearing thereon, the Department shall give notice to such
person or legal representative of the time and place fixed for
such hearing and shall hold a hearing in conformity with the
provisions of this Act, and pursuant thereto shall issue to
such person or legal representative a final assessment for the
amount found to be due as a result of such hearing. On or after
July 1, 2013, protests concerning matters that are subject to
the jurisdiction of the Illinois Independent Tax Tribunal shall
be filed with the Illinois Independent Tax Tribunal in
accordance with the Illinois Independent Tax Tribunal Act of
2012, and hearings concerning those matters shall be held
before the Tribunal in accordance with that Act. The Tribunal
shall give notice to such person of the time and place fixed
for such hearing and shall hold a hearing. With respect to
protests filed with the Department prior to July 1, 2013 that
would otherwise be subject to the jurisdiction of the Illinois
Independent Tax Tribunal, the taxpayer may elect to be subject
to the provisions of the Illinois Independent Tax Tribunal Act
of 2012 at any time on or after July 1, 2013, but not later than
30 days after the date on which the protest was filed. If made,
the election shall be irrevocable.
    If a protest to the notice of tax liability and a request
for a hearing thereon is not filed within 60 days after such
notice, such notice of tax liability shall become final without
the necessity of a final assessment being issued and shall be
deemed to be a final assessment.
    After the issuance of a final assessment, or a notice of
tax liability which becomes final without the necessity of
actually issuing a final assessment as hereinbefore provided,
the Department, at any time before such assessment is reduced
to judgment, may (subject to rules of the Department) grant a
rehearing (or grant departmental review and hold an original
hearing if no previous hearing in the matter has been held)
upon the application of the person aggrieved. Pursuant to such
hearing or rehearing, the Department shall issue a revised
final assessment to such person or his legal representative for
the amount found to be due as a result of such hearing or
rehearing.
(Source: P.A. 89-379, eff. 1-1-96.)
 
    (35 ILCS 120/5)  (from Ch. 120, par. 444)
    Sec. 5. In case any person engaged in the business of
selling tangible personal property at retail fails to file a
return when and as herein required, but thereafter, prior to
the Department's issuance of a notice of tax liability under
this Section, files a return and pays the tax, he shall also
pay a penalty in an amount determined in accordance with
Section 3-3 of the Uniform Penalty and Interest Act.
    In case any person engaged in the business of selling
tangible personal property at retail files the return at the
time required by this Act but fails to pay the tax, or any part
thereof, when due, a penalty in an amount determined in
accordance with Section 3-3 of the Uniform Penalty and Interest
Act shall be added thereto.
    In case any person engaged in the business of selling
tangible personal property at retail fails to file a return
when and as herein required, but thereafter, prior to the
Department's issuance of a notice of tax liability under this
Section, files a return but fails to pay the entire tax, a
penalty in an amount determined in accordance with Section 3-3
of the Uniform Penalty and Interest Act shall be added thereto.
    In case any person engaged in the business of selling
tangible personal property at retail fails to file a return,
the Department shall determine the amount of tax due from him
according to its best judgment and information, which amount so
fixed by the Department shall be prima facie correct and shall
be prima facie evidence of the correctness of the amount of tax
due, as shown in such determination. In making any such
determination of tax due, it shall be permissible for the
Department to show a figure that represents the tax due for any
given period of 6 months instead of showing the amount of tax
due for each month separately. Proof of such determination by
the Department may be made at any hearing before the Department
or in any legal proceeding by a reproduced copy or computer
print-out of the Department's record relating thereto in the
name of the Department under the certificate of the Director of
Revenue. If reproduced copies of the Department's records are
offered as proof of such determination, the Director must
certify that those copies are true and exact copies of records
on file with the Department. If computer print-outs of the
Department's records are offered as proof of such
determination, the Director must certify that those computer
print-outs are true and exact representations of records
properly entered into standard electronic computing equipment,
in the regular course of the Department's business, at or
reasonably near the time of the occurrence of the facts
recorded, from trustworthy and reliable information. Such
certified reproduced copy or certified computer print-out
shall, without further proof, be admitted into evidence before
the Department or in any legal proceeding and shall be prima
facie proof of the correctness of the amount of tax due, as
shown therein. The Department shall issue the taxpayer a notice
of tax liability for the amount of tax claimed by the
Department to be due, together with a penalty of 30% thereof.
    However, where the failure to file any tax return required
under this Act on the date prescribed therefor (including any
extensions thereof), is shown to be unintentional and
nonfraudulent and has not occurred in the 2 years immediately
preceding the failure to file on the prescribed date or is due
to other reasonable cause the penalties imposed by this Act
shall not apply.
    The taxpayer or the taxpayer's legal representative may If
such person or the legal representative of such person files,
within 60 days after such notice, file a protest to such notice
of tax liability with the Department and request requests a
hearing thereon. The , the Department shall give notice to such
person or the legal representative of such person of the time
and place fixed for such hearing, and shall hold a hearing in
conformity with the provisions of this Act, and pursuant
thereto shall issue a final assessment to such person or to the
legal representative of such person for the amount found to be
due as a result of such hearing. On and after July 1, 2013,
protests concerning matters that are under the jurisdiction of
the Illinois Independent Tax Tribunal shall be filed with the
Illinois Independent Tax Tribunal in accordance with the
Illinois Independent Tax Tribunal Act of 2012, and hearings
concerning those matters shall be held before the Tribunal in
accordance with that Act. With respect to protests filed with
the Illinois Independent Tax Tribunal, the Tribunal shall give
notice to that person or the legal representative of that
person of the time and place fixed for a hearing, and shall
hold a hearing in conformity with the provisions of this Act
and the Illinois Independent Tax Tribunal Act; and pursuant
thereto the Department shall issue a final assessment to such
person or to the legal representative of such person for the
amount found to be due as a result of the hearing. With respect
to protests filed with the Department prior to July 1, 2013
that would otherwise be subject to the jurisdiction of the
Illinois Independent Tax Tribunal, the taxpayer may elect to be
subject to the provisions of the Illinois Independent Tax
Tribunal Act of 2012 at any time on or after July 1, 2013, but
not later than 30 days after the date on which the protest was
filed. If made, the election shall be irrevocable.
    If a protest to the notice of tax liability and a request
for a hearing thereon is not filed within 60 days after such
notice, such notice of tax liability shall become final without
the necessity of a final assessment being issued and shall be
deemed to be a final assessment.
    After the issuance of a final assessment, or a notice of
tax liability which becomes final without the necessity of
actually issuing a final assessment as hereinbefore provided,
the Department, at any time before such assessment is reduced
to judgment, may (subject to rules of the Department) grant a
rehearing (or grant departmental review and hold an original
hearing if no previous hearing in the matter has been held)
upon the application of the person aggrieved. Pursuant to such
hearing or rehearing, the Department shall issue a revised
final assessment to such person or his legal representative for
the amount found to be due as a result of such hearing or
rehearing.
    Except in case of failure to file a return, or with the
consent of the person to whom the notice of tax liability is to
be issued, no notice of tax liability shall be issued on and
after each July 1 and January 1 covering gross receipts
received during any month or period of time more than 3 years
prior to such July 1 and January 1, respectively, except that
if a return is not filed at the required time, a notice of tax
liability may be issued not later than 3 years after the time
the return is filed. The foregoing limitations upon the
issuance of a notice of tax liability shall not apply to the
issuance of any such notice with respect to any period of time
prior thereto in cases where the Department has, within the
period of limitation then provided, notified a person of the
amount of tax computed even though the Department had not
determined the amount of tax due from such person in the manner
required herein prior to the issuance of such notice, but in no
case shall the amount of any such notice of tax liability for
any period otherwise barred by this Act exceed for such period
the amount shown in the notice theretofore issued.
    If, when a tax or penalty under this Act becomes due and
payable, the person alleged to be liable therefor is out of the
State, the notice of tax liability may be issued within the
times herein limited after his or her coming into or return to
the State; and if, after the tax or penalty under this Act
becomes due and payable, the person alleged to be liable
therefor departs from and remains out of the State, the time of
his or her absence is no part of the time limited for the
issuance of the notice of tax liability; but the foregoing
provisions concerning absence from the State shall not apply to
any case in which, at the time when a tax or penalty becomes
due under this Act, the person allegedly liable therefor is not
a resident of this State.
    The time limitation period on the Department's right to
issue a notice of tax liability shall not run during any period
of time in which the order of any court has the effect of
enjoining or restraining the Department from issuing the notice
of tax liability.
    In case of failure to pay the tax, or any portion thereof,
or any penalty provided for in this Act, or interest, when due,
the Department may bring suit to recover the amount of such
tax, or portion thereof, or penalty or interest; or, if the
taxpayer has died or become a person under legal disability,
may file a claim therefor against his estate; provided that no
such suit with respect to any tax, or portion thereof, or
penalty, or interest shall be instituted more than 6 years
after the date any proceedings in court for review thereof have
terminated or the time for the taking thereof has expired
without such proceedings being instituted, except with the
consent of the person from whom such tax or penalty or interest
is due; nor, except with such consent, shall such suit be
instituted more than 6 years after the date any return is filed
with the Department in cases where the return constitutes the
basis for the suit for unpaid tax, or portion thereof, or
penalty provided for in this Act, or interest: Provided that
the time limitation period on the Department's right to bring
any such suit shall not run during any period of time in which
the order of any court has the effect of enjoining or
restraining the Department from bringing such suit.
    After the expiration of the period within which the person
assessed may file an action for judicial review under the
Administrative Review Law or the Illinois Independent Tax
Tribunal Act, as applicable, without such an action being
filed, a certified copy of the final assessment or revised
final assessment of the Department may be filed with the
Circuit Court of the county in which the taxpayer has his
principal place of business, or of Sangamon County in those
cases in which the taxpayer does not have his principal place
of business in this State. The certified copy of the final
assessment or revised final assessment shall be accompanied by
a certification which recites facts that are sufficient to show
that the Department complied with the jurisdictional
requirements of the Act in arriving at its final assessment or
its revised final assessment and that the taxpayer had his
opportunity for an administrative hearing and for judicial
review, whether he availed himself or herself of either or both
of these opportunities or not. If the court is satisfied that
the Department complied with the jurisdictional requirements
of the Act in arriving at its final assessment or its revised
final assessment and that the taxpayer had his opportunity for
an administrative hearing and for judicial review, whether he
availed himself of either or both of these opportunities or
not, the court shall render judgment in favor of the Department
and against the taxpayer for the amount shown to be due by the
final assessment or the revised final assessment, plus any
interest which may be due, and such judgment shall be entered
in the judgment docket of the court. Such judgment shall bear
the rate of interest as set by the Uniform Penalty and Interest
Act, but otherwise shall have the same effect as other
judgments. The judgment may be enforced, and all laws
applicable to sales for the enforcement of a judgment shall be
applicable to sales made under such judgments. The Department
shall file the certified copy of its assessment, as herein
provided, with the Circuit Court within 6 years after such
assessment becomes final except when the taxpayer consents in
writing to an extension of such filing period, and except that
the time limitation period on the Department's right to file
the certified copy of its assessment with the Circuit Court
shall not run during any period of time in which the order of
any court has the effect of enjoining or restraining the
Department from filing such certified copy of its assessment
with the Circuit Court.
    If, when the cause of action for a proceeding in court
accrues against a person, he or she is out of the State, the
action may be commenced within the times herein limited, after
his or her coming into or return to the State; and if, after
the cause of action accrues, he or she departs from and remains
out of the State, the time of his or her absence is no part of
the time limited for the commencement of the action; but the
foregoing provisions concerning absence from the State shall
not apply to any case in which, at the time the cause of action
accrues, the party against whom the cause of action accrues is
not a resident of this State. The time within which a court
action is to be commenced by the Department hereunder shall not
run from the date the taxpayer files a petition in bankruptcy
under the Federal Bankruptcy Act until 30 days after notice of
termination or expiration of the automatic stay imposed by the
Federal Bankruptcy Act.
    No claim shall be filed against the estate of any deceased
person or any person under legal disability for any tax or
penalty or part of either, or interest, except in the manner
prescribed and within the time limited by the Probate Act of
1975, as amended.
    The collection of tax or penalty or interest by any means
provided for herein shall not be a bar to any prosecution under
this Act.
    In addition to any penalty provided for in this Act, any
amount of tax which is not paid when due shall bear interest at
the rate and in the manner specified in Sections 3-2 and 3-9 of
the Uniform Penalty and Interest Act from the date when such
tax becomes past due until such tax is paid or a judgment
therefor is obtained by the Department. If the time for making
or completing an audit of a taxpayer's books and records is
extended with the taxpayer's consent, at the request of and for
the convenience of the Department, beyond the date on which the
statute of limitations upon the issuance of a notice of tax
liability by the Department otherwise would run, no interest
shall accrue during the period of such extension or until a
Notice of Tax Liability is issued, whichever occurs first.
    In addition to any other remedy provided by this Act, and
regardless of whether the Department is making or intends to
make use of such other remedy, where a corporation or limited
liability company registered under this Act violates the
provisions of this Act or of any rule or regulation promulgated
thereunder, the Department may give notice to the Attorney
General of the identity of such a corporation or limited
liability company and of the violations committed by such a
corporation or limited liability company, for such action as is
not already provided for by this Act and as the Attorney
General may deem appropriate.
    If the Department determines that an amount of tax or
penalty or interest was incorrectly assessed, whether as the
result of a mistake of fact or an error of law, the Department
shall waive the amount of tax or penalty or interest that
accrued due to the incorrect assessment.
(Source: P.A. 96-1383, eff. 1-1-11.)
 
    (35 ILCS 120/5a)  (from Ch. 120, par. 444a)
    Sec. 5a. The Department shall have a lien for the tax
herein imposed or any portion thereof, or for any penalty
provided for in this Act, or for any amount of interest which
may be due as provided for in Section 5 of this Act, upon all
the real and personal property of any person to whom a final
assessment or revised final assessment has been issued as
provided in this Act, or whenever a return is filed without
payment of the tax or penalty shown therein to be due,
including all such property of such persons acquired after
receipt of such assessment or filing of such return. The
taxpayer is liable for the filing fee incurred by the
Department for filing the lien and the filing fee incurred by
the Department to file the release of that lien. The filing
fees shall be paid to the Department in addition to payment of
the tax, penalty, and interest included in the amount of the
lien.
    However, where the lien arises because of the issuance of a
final assessment or revised final assessment by the Department,
such lien shall not attach and the notice hereinafter referred
to in this Section shall not be filed until all proceedings in
court for review of such final assessment or revised final
assessment have terminated or the time for the taking thereof
has expired without such proceedings being instituted.
    Upon the granting of a rehearing or departmental review
pursuant to Section 4 or Section 5 of this Act after a lien has
attached, such lien shall remain in full force except to the
extent to which the final assessment may be reduced by a
revised final assessment following such rehearing or review.
    The lien created by the issuance of a final assessment
shall terminate unless a notice of lien is filed, as provided
in Section 5b hereof, within 3 years from the date all
proceedings in court for the review of such final assessment
have terminated or the time for the taking thereof has expired
without such proceedings being instituted, or (in the case of a
revised final assessment issued pursuant to a rehearing or
departmental review) within 3 years from the date all
proceedings in court for the review of such revised final
assessment have terminated or the time for the taking thereof
has expired without such proceedings being instituted; and
where the lien results from the filing of a return without
payment of the tax or penalty shown therein to be due, the lien
shall terminate unless a notice of lien is filed, as provided
in Section 5b hereof, within 3 years from the date when such
return is filed with the Department: Provided that the time
limitation period on the Department's right to file a notice of
lien shall not run during any period of time in which the order
of any court has the effect of enjoining or restraining the
Department from filing such notice of lien.
    If the Department finds that a taxpayer is about to depart
from the State, or to conceal himself or his property, or to do
any other act tending to prejudice or to render wholly or
partly ineffectual proceedings to collect such tax unless such
proceedings are brought without delay, or if the Department
finds that the collection of the amount due from any taxpayer
will be jeopardized by delay, the Department shall give the
taxpayer notice of such findings and shall make demand for
immediate return and payment of such tax, whereupon such tax
shall become immediately due and payable. If the taxpayer,
within 5 days after such notice (or within such extension of
time as the Department may grant), does not comply with such
notice or show to the Department that the findings in such
notice are erroneous, the Department may file a notice of
jeopardy assessment lien in the office of the recorder of the
county in which any property of the taxpayer may be located and
shall notify the taxpayer of such filing. Such jeopardy
assessment lien shall have the same scope and effect as the
statutory lien hereinbefore provided for in this Section.
    If the taxpayer believes that he does not owe some or all
of the tax for which the jeopardy assessment lien against him
has been filed, or that no jeopardy to the revenue in fact
exists, he may protest within 20 days after being notified by
the Department of the filing of such jeopardy assessment lien
and request a hearing, whereupon the Department shall hold a
hearing in conformity with the provisions of this Act and,
pursuant thereto, shall notify the taxpayer of its findings as
to whether or not such jeopardy assessment lien will be
released. If not, and if the taxpayer is aggrieved by this
decision, he may file an action for judicial review of such
final determination of the Department in accordance with
Section 12 of this Act and the Administrative Review Law.
    On and after July 1, 2013, protests concerning matters that
are subject to the jurisdiction of the Illinois Independent Tax
Tribunal shall be filed with the Tribunal, and hearings on
those matters shall be held before the Tribunal in accordance
with the Illinois Independent Tax Tribunal Act of 2012. The
Tribunal shall notify the taxpayer of its findings as to
whether or not such jeopardy assessment lien will be released.
If not, and if the taxpayer is aggrieved by this decision, he
may file an action for judicial review of such final
determination of the Department in accordance with Section 12
of this Act and the Illinois Independent Tax Tribunal Act of
2012.
    With respect to protests filed with the Department prior to
July 1, 2013 that would otherwise be subject to the
jurisdiction of the Illinois Independent Tax Tribunal, the
taxpayer may elect to be subject to the provisions of the
Illinois Independent Tax Tribunal Act of 2012 at any time on or
after July 1, 2013, but not later than 30 days after the date
on which the protest was filed. If made, the election shall be
irrevocable.
    If, pursuant to such hearing (or after an independent
determination of the facts by the Department without a
hearing), the Department or the Tribunal determines that some
or all of the tax covered by the jeopardy assessment lien is
not owed by the taxpayer, or that no jeopardy to the revenue
exists, or if on judicial review the final judgment of the
court is that the taxpayer does not owe some or all of the tax
covered by the jeopardy assessment lien against him, or that no
jeopardy to the revenue exists, the Department shall release
its jeopardy assessment lien to the extent of such finding of
nonliability for the tax, or to the extent of such finding of
no jeopardy to the revenue.
    The Department shall also release its jeopardy assessment
lien against the taxpayer whenever the tax and penalty covered
by such lien, plus any interest which may be due, are paid and
the taxpayer has paid the Department in cash or by guaranteed
remittance an amount representing the filing fee for the lien
and the filing fee for the release of that lien. The Department
shall file that release of lien with the recorder of the county
where that lien was filed.
    Nothing in this Section shall be construed to give the
Department a preference over the rights of any bona fide
purchaser, holder of a security interest, mechanics
lienholder, mortgagee, or judgment lien creditor arising prior
to the filing of a regular notice of lien or a notice of
jeopardy assessment lien in the office of the recorder in the
county in which the property subject to the lien is located:
Provided, however, that the word "bona fide", as used in this
Section shall not include any mortgage of real or personal
property or any other credit transaction that results in the
mortgagee or the holder of the security acting as trustee for
unsecured creditors of the taxpayer mentioned in the notice of
lien who executed such chattel or real property mortgage or the
document evidencing such credit transaction. Such lien shall be
inferior to the lien of general taxes, special assessments and
special taxes heretofore or hereafter levied by any political
subdivision of this State.
    In case title to land to be affected by the notice of lien
or notice of jeopardy assessment lien is registered under the
provisions of "An Act concerning land titles", approved May 1,
1897, as amended, such notice shall be filed in the office of
the Registrar of Titles of the county within which the property
subject to the lien is situated and shall be entered upon the
register of titles as a memorial or charge upon each folium of
the register of titles affected by such notice, and the
Department shall not have a preference over the rights of any
bona fide purchaser, mortgagee, judgment creditor or other lien
holder arising prior to the registration of such notice:
Provided, however, that the word "bona fide" shall not include
any mortgage of real or personal property or any other credit
transaction that results in the mortgagee or the holder of the
security acting as trustee for unsecured creditors of the
taxpayer mentioned in the notice of lien who executed such
chattel or real property mortgage or the document evidencing
such credit transaction.
    Such regular lien or jeopardy assessment lien shall not be
effective against any purchaser with respect to any item in a
retailer's stock in trade purchased from the retailer in the
usual course of such retailer's business.
(Source: P.A. 92-826, eff. 1-1-03.)
 
    (35 ILCS 120/8)  (from Ch. 120, par. 447)
    Sec. 8. For the purpose of administering and enforcing the
provisions of this Act, the Department, or any officer or
employee of the Department designated, in writing, by the
Director thereof, may hold investigations and hearings not
otherwise delegated to the Illinois Independent Tax Tribunal
concerning any matters covered by this Act and may examine any
books, papers, records or memoranda bearing upon the sales of
tangible personal property or services of any such person, and
may require the attendance of such person or any officer or
employee of such person, or of any person having knowledge of
such business, and may take testimony and require proof for its
information. In the conduct of any investigation or hearing,
neither the Department nor any officer or employee thereof
shall be bound by the technical rules of evidence, and no
informality in any proceeding, or in the manner of taking
testimony, shall invalidate any order, decision, rule or
regulation made or approved or confirmed by the Department. The
Director of Revenue, or any officer or employee of the
Department authorized by the Director thereof, shall have power
to administer oaths to such persons. The books, papers, records
and memoranda of the Department, or parts thereof, may be
proved in any hearing, investigation, or legal proceeding by a
reproduced copy thereof under the certificate of the Director
of Revenue. Such reproduced copy shall, without further proof,
be admitted into evidence before the Department or in any legal
proceeding.
(Source: Laws 1965, p. 200.)
 
    (35 ILCS 120/9)  (from Ch. 120, par. 448)
    Sec. 9. No person shall be excused from testifying or from
producing any books, papers, records or memoranda in any
investigation or upon any hearing not otherwise delegated to
the Illinois Independent Tax Tribunal, when ordered to do so by
the department or any officer or employee thereof, upon the
ground that the testimony or evidence, documentary or
otherwise, may tend to incriminate him or subject him to a
criminal penalty, but no person shall be prosecuted or
subjected to any criminal penalty for, or on account of, any
transaction made or thing concerning which he may testify or
produce evidence, documentary or otherwise, before the
department or an officer or employee thereof; provided, that
such immunity shall extend only to a natural person who, in
obedience to a subpoena, gives testimony under oath or produces
evidence, documentary or otherwise, under oath. No person so
testifying shall be exempt from prosecution and punishment for
perjury committed in so testifying.
(Source: Laws 1933, p. 924.)
 
    (35 ILCS 120/11a)  (from Ch. 120, par. 450a)
    Sec. 11a. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department of Revenue under this
Act, except that (1) paragraph (b) of Section 5-10 of the
Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2)
subparagraph (a)2 of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to forms
established by the Department for use under this Act, and (3)
the provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded and
not applicable to the Department under this Act to the extent
Section 10-45 applies to hearings not otherwise delegated to
the Illinois Independent Tax Tribunal.
(Source: P.A. 88-45.)
 
    (35 ILCS 120/12)  (from Ch. 120, par. 451)
    Sec. 12. The Department is authorized to make, promulgate
and enforce such reasonable rules and regulations relating to
the administration and enforcement of the provisions of this
Act as may be deemed expedient.
    Whenever notice is required by this Act, such notice may be
given by United States registered or certified mail, addressed
to the person concerned at his last known address, and proof of
such mailing shall be sufficient for the purposes of this Act.
Notice of any hearing provided for by this Act shall be so
given not less than 7 days prior to the day fixed for the
hearing. Following the initial contact of a person represented
by an attorney, the Department shall not contact the person
concerned but shall only contact the attorney representing the
person concerned.
    All hearings provided for in this Act with respect to or
concerning a taxpayer having his or her principal place of
business in this State other than in Cook County shall be held
at the Department's office nearest to the location of the
taxpayer's principal place of business: Provided that if the
taxpayer has his or her principal place of business in Cook
County, such hearing shall be held in Cook County; and
provided, further, that if the taxpayer does not have his or
her principal place of business in this State, such hearing
shall be held in Sangamon County.
    The Circuit Court of the County wherein the taxpayer has
his or her principal place of business, or of Sangamon County
in those cases where the taxpayer does not have his or her
principal place of business in this State, shall have power to
review all final administrative decisions of the Department in
administering the provisions of this Act: Provided that if the
administrative proceeding which is to be reviewed judicially is
a claim for refund proceeding commenced in accordance with
Section 6 of this Act and Section 2a of "An Act in relation to
the payment and disposition of moneys received by officers and
employees of the State of Illinois by virtue of their office or
employment", approved June 9, 1911, as amended, the Circuit
Court having jurisdiction of the action for judicial review
under this Section and under the Administrative Review Law, as
amended, shall be the same court that entered the temporary
restraining order or preliminary injunction which is provided
for in Section 2a of "An Act in relation to the payment and
disposition of moneys received by officers and employees of the
State of Illinois by virtue of their office or employment", and
which enables such claim proceeding to be processed and
disposed of as a claim for refund proceeding rather than as a
claim for credit proceeding.
    The provisions of the Administrative Review Law, and the
rules adopted pursuant thereto, shall apply to and govern all
proceedings for the judicial review of final administrative
decisions of the Department hereunder, except with respect to
protests and hearings held before the Illinois Independent Tax
Tribunal. The provisions of the Illinois Independent Tax
Tribunal Act, and the rules adopted pursuant thereto, shall
apply to and govern all proceedings for the judicial review of
administrative decisions of the Department that are subject to
the jurisdiction of the Illinois Independent Tax Tribunal. The
term "administrative decision" is defined as in Section 3-101
of the Code of Civil Procedure.
    Except with respect to decisions that are subject to the
jurisdiction of the Illinois Independent Tax Tribunal, any Any
person filing an action under the Administrative Review Law to
review a final assessment or revised final assessment issued by
the Department under this Act shall, within 20 days after
filing the complaint, file a bond with good and sufficient
surety or sureties residing in this State or licensed to do
business in this State or, instead of the bond, obtain an order
from the court imposing a lien upon the plaintiff's property as
hereinafter provided. If the person filing the complaint fails
to comply with this bonding requirement within 20 days after
filing the complaint, the Department shall file a motion to
dismiss and the court shall dismiss the action unless the
person filing the action complies with the bonding requirement
set out in this provision within 30 days after the filing of
the Department's motion to dismiss. Upon dismissal of any
complaint for failure to comply with the jurisdictional
prerequisites herein set forth, the court is empowered to and
shall enter judgment against the taxpayer and in favor of the
Department in the amount of the final assessment or revised
final assessment, together with any interest which may have
accrued since the Department issued the final assessment or
revised final assessment, and for costs, which judgment is
enforceable as other judgments for the payment of money. The
lien provided for in this Section shall not be applicable to
the real property of a corporate surety duly licensed to do
business in this State. The amount of such bond shall be fixed
and approved by the court, but shall not be less than the
amount of the tax and penalty claimed to be due by the
Department in its final assessment or revised final assessment
to the person filing such bond, plus the amount of interest due
from such person to the Department at the time when the
Department issued its final assessment to such person. Such
bond shall be executed to the Department of Revenue and shall
be conditioned on the taxpayer's payment within 30 days after
termination of the proceedings for judicial review of the
amount of tax and penalty and interest found by the court to be
due in such proceedings for judicial review. Such bond, when
filed and approved, shall, from such time until 2 years after
termination of the proceedings for judicial review in which the
bond is filed, be a lien against the real estate situated in
the county in which the bond is filed, of the person filing
such bond, and of the surety or sureties on such bond, until
the condition of the bond has been complied with or until the
bond has been canceled as hereinafter provided. If the person
filing any such bond fails to keep the condition thereof, such
bond shall thereupon be forfeited, and the Department may
institute an action upon such bond in its own name for the
entire amount of the bond and costs. Such action upon the bond
shall be in addition to any other remedy provided for herein.
If the person filing such bond complies with the condition
thereof, or if, in the proceedings for judicial review in which
such bond is filed, the court determines that no amount of tax
or penalty or interest is due, such bond shall be canceled.
    If the court finds in a particular case that the plaintiff
cannot procure and furnish a satisfactory surety or sureties
for the kind of bond required herein, the court may relieve the
plaintiff of the obligation of filing such bond, if, upon the
timely application for a lien in lieu thereof and accompanying
proof therein submitted, the court is satisfied that any such
lien imposed would operate to secure the assessment in the
manner and to the degree as would a bond. Upon a finding that
such lien applied for would secure the assessment at issue, the
court shall enter an order, in lieu of such bond, subjecting
the plaintiff's real and personal property (including
subsequently acquired property), situated in the county in
which such order is entered, to a lien in favor of the
Department. Such lien shall be for the amount of the tax and
penalty claimed to be due by the Department in its final
assessment or revised final assessment, plus the amount of
interest due from such person to the Department at the time
when the Department issued its final assessment to such person,
and shall continue in full force and effect until the
termination of the proceedings for judicial review, or until
the plaintiff pays, to the Department, the tax and penalty and
interest to secure which the lien is given, whichever happens
first. In the exercise of its discretion, the court may impose
a lien regardless of the ratio of the taxpayer's assets to the
final assessment or revised final assessment plus the amount of
the interest and penalty. Nothing in this Section shall be
construed to give the Department a preference over the rights
of any bona fide purchaser, mortgagee, judgment creditor or
other lien holder arising prior to the entry of the order
creating such lien in favor of the Department: Provided,
however, that the word "bona fide", as used in this Section,
shall not include any mortgage of real or personal property or
any other credit transaction that results in the mortgagee or
the holder of the security acting as trustee for unsecured
creditors of the taxpayer mentioned in the order for lien who
executed such chattel or real property mortgage or the document
evidencing such credit transaction. Such lien shall be inferior
to the lien of general taxes, special assessments and special
taxes heretofore or hereafter levied by any political
subdivision of this State. Such lien shall not be effective
against any purchaser with respect to any item in a retailer's
stock in trade purchased from the retailer in the usual course
of such retailer's business, and such lien shall not be
enforced against the household effects, wearing apparel, or the
books, tools or implements of a trade or profession kept for
use by any person. Such lien shall not be effective against
real property whose title is registered under the provisions of
"An Act concerning land titles", approved May 1, 1897, as
amended, until the provisions of Section 85 of that Act are
complied with.
    Service upon the Director of Revenue or the Assistant
Director of Revenue of the Department of Revenue of summons
issued in an action to review a final administrative decision
of the Department shall be service upon the Department. The
Department shall certify the record of its proceedings if the
taxpayer pays to it the sum of 75 per page of testimony taken
before the Department and 25 per page of all other matters
contained in such record, except that these charges may be
waived where the Department is satisfied that the aggrieved
party is a poor person who cannot afford to pay such charges.
If payment for such record is not made by the taxpayer within
30 days after notice from the Department or the Attorney
General of the cost thereof, the court in which the proceeding
is pending, on motion of the Department, shall dismiss the
complaint and (where the administrative decision as to which
the action for judicial review was filed is a final assessment
or revised final assessment) shall enter judgment against the
taxpayer and in favor of the Department for the amount of tax
and penalty shown by the Department's final assessment or
revised final assessment to be due, plus interest as provided
for in Section 5 of this Act from the date when the liability
upon which such interest accrued became delinquent until the
entry of the judgment in the action for judicial review under
the Administrative Review Law, and also for costs.
    Whenever any proceeding provided by this Act is begun
before the Department, either by the Department or by a person
subject to this Act, and such person thereafter dies or becomes
a person under legal disability before such proceeding is
concluded, the legal representative of the deceased or person
under legal disability shall notify the Department of such
death or legal disability. Such legal representative, as such,
shall then be substituted by the Department for such person. If
the legal representative fails to notify the Department of his
or her appointment as such legal representative, the Department
may, upon its own motion, substitute such legal representative
in the proceeding pending before the Department for the person
who died or became a person under legal disability.
    The changes made by this amendatory Act of 1995 apply to
all actions pending on and after the effective date of this
amendatory Act of 1995 to review a final assessment or revised
final assessment issued by the Department.
(Source: P.A. 89-60, eff. 6-30-95.)
 
    Section 5-45. The Cigarette Tax Act is amended by changing
Sections 3, 8, 8a, 9a, 9b, and 10 as follows:
 
    (35 ILCS 130/3)  (from Ch. 120, par. 453.3)
    Sec. 3. Affixing tax stamp; remitting tax to the
Department. Payment of the taxes imposed by Section 2 of this
Act shall (except as hereinafter provided) be evidenced by
revenue tax stamps affixed to each original package of
cigarettes. Each distributor of cigarettes, before delivering
or causing to be delivered any original package of cigarettes
in this State to a purchaser, shall firmly affix a proper stamp
or stamps to each such package, or (in case of manufacturers of
cigarettes in original packages which are contained inside a
sealed transparent wrapper) shall imprint the required
language on the original package of cigarettes beneath such
outside wrapper, as hereinafter provided.
    No stamp or imprint may be affixed to, or made upon, any
package of cigarettes unless that package complies with all
requirements of the federal Cigarette Labeling and Advertising
Act, 15 U.S.C. 1331 and following, for the placement of labels,
warnings, or any other information upon a package of cigarettes
that is sold within the United States. Under the authority of
Section 6, the Department shall revoke the license of any
distributor that is determined to have violated this paragraph.
A person may not affix a stamp on a package of cigarettes,
cigarette papers, wrappers, or tubes if that individual package
has been marked for export outside the United States with a
label or notice in compliance with Section 290.185 of Title 27
of the Code of Federal Regulations. It is not a defense to a
proceeding for violation of this paragraph that the label or
notice has been removed, mutilated, obliterated, or altered in
any manner.
    Only distributors licensed under this Act and
transporters, as defined in Section 9c of this Act, may possess
unstamped original packages of cigarettes. Prior to shipment to
a secondary distributor or an Illinois retailer, a stamp shall
be applied to each original package of cigarettes sold to the
secondary distributor or retailer. A distributor may apply tax
stamps only to original packages of cigarettes purchased or
obtained directly from an in-state maker, manufacturer, or
fabricator licensed as a distributor under Section 4 of this
Act or an out-of-state maker, manufacturer, or fabricator
holding a permit under Section 4b of this Act. A licensed
distributor may ship or otherwise cause to be delivered
unstamped original packages of cigarettes in, into, or from
this State. A licensed distributor may transport unstamped
original packages of cigarettes to a facility, wherever
located, owned or controlled by such distributor; however, a
distributor may not transport unstamped original packages of
cigarettes to a facility where retail sales of cigarettes take
place or to a facility where a secondary distributor makes
sales for resale. Any licensed distributor that ships or
otherwise causes to be delivered unstamped original packages of
cigarettes into, within, or from this State shall ensure that
the invoice or equivalent documentation and the bill of lading
or freight bill for the shipment identifies the true name and
address of the consignor or seller, the true name and address
of the consignee or purchaser, and the quantity by brand style
of the cigarettes so transported, provided that this Section
shall not be construed as to impose any requirement or
liability upon any common or contract carrier.
    The Department, or any person authorized by the Department,
shall sell such stamps only to persons holding valid licenses
as distributors under this Act. On and after July 1, 2003,
payment for such stamps must be made by means of electronic
funds transfer. The Department may refuse to sell stamps to any
person who does not comply with the provisions of this Act.
Beginning on the effective date of this amendatory Act of the
92nd General Assembly and through June 30, 2002, persons
holding valid licenses as distributors may purchase cigarette
tax stamps up to an amount equal to 115% of the distributor's
average monthly cigarette tax stamp purchases over the 12
calendar months prior to the effective date of this amendatory
Act of the 92nd General Assembly.
    Prior to December 1, 1985, the Department shall allow a
distributor 21 days in which to make final payment of the
amount to be paid for such stamps, by allowing the distributor
to make payment for the stamps at the time of purchasing them
with a draft which shall be in such form as the Department
prescribes, and which shall be payable within 21 days
thereafter: Provided that such distributor has filed with the
Department, and has received the Department's approval of, a
bond, which is in addition to the bond required under Section 4
of this Act, payable to the Department in an amount equal to
80% of such distributor's average monthly tax liability to the
Department under this Act during the preceding calendar year or
$500,000, whichever is less. The Bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of credit.
The bond shall be conditioned upon the distributor's payment of
amount of any 21-day draft which the Department accepts from
that distributor for the delivery of stamps to that distributor
under this Act. The distributor's failure to pay any such
draft, when due, shall also make such distributor automatically
liable to the Department for a penalty equal to 25% of the
amount of such draft.
    On and after December 1, 1985 and until July 1, 2003, the
Department shall allow a distributor 30 days in which to make
final payment of the amount to be paid for such stamps, by
allowing the distributor to make payment for the stamps at the
time of purchasing them with a draft which shall be in such
form as the Department prescribes, and which shall be payable
within 30 days thereafter, and beginning on January 1, 2003 and
thereafter, the draft shall be payable by means of electronic
funds transfer: Provided that such distributor has filed with
the Department, and has received the Department's approval of,
a bond, which is in addition to the bond required under Section
4 of this Act, payable to the Department in an amount equal to
150% of such distributor's average monthly tax liability to the
Department under this Act during the preceding calendar year or
$750,000, whichever is less, except that as to bonds filed on
or after January 1, 1987, such additional bond shall be in an
amount equal to 100% of such distributor's average monthly tax
liability under this Act during the preceding calendar year or
$750,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of credit.
The bond shall be conditioned upon the distributor's payment of
the amount of any 30-day draft which the Department accepts
from that distributor for the delivery of stamps to that
distributor under this Act. The distributor's failure to pay
any such draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
    Every prior continuous compliance taxpayer shall be exempt
from all requirements under this Section concerning the
furnishing of such bond, as defined in this Section, as a
condition precedent to his being authorized to engage in the
business licensed under this Act. This exemption shall continue
for each such taxpayer until such time as he may be determined
by the Department to be delinquent in the filing of any
returns, or is determined by the Department (either through the
Department's issuance of a final assessment which has become
final under the Act, or by the taxpayer's filing of a return
which admits tax to be due that is not paid) to be delinquent
or deficient in the paying of any tax under this Act, at which
time that taxpayer shall become subject to the bond
requirements of this Section and, as a condition of being
allowed to continue to engage in the business licensed under
this Act, shall be required to furnish bond to the Department
in such form as provided in this Section. Such taxpayer shall
furnish such bond for a period of 2 years, after which, if the
taxpayer has not been delinquent in the filing of any returns,
or delinquent or deficient in the paying of any tax under this
Act, the Department may reinstate such person as a prior
continuance compliance taxpayer. Any taxpayer who fails to pay
an admitted or established liability under this Act may also be
required to post bond or other acceptable security with the
Department guaranteeing the payment of such admitted or
established liability.
    Except as otherwise provided in this Section, any Any
person aggrieved by any decision of the Department under this
Section may, within the time allowed by law, protest and
request a hearing, whereupon the Department shall give notice
and shall hold a hearing in conformity with the provisions of
this Act and then issue its final administrative decision in
the matter to such person. On and after July 1, 2013, protests
concerning matters that are subject to the jurisdiction of the
Illinois Independent Tax Tribunal shall be filed with the
Tribunal in accordance with the Illinois Independent Tax
Tribunal Act of 2012, and hearings on those matters shall be
held before the Tribunal in accordance with that Act. With
respect to protests filed with the Department prior to July 1,
2013 that would otherwise be subject to the jurisdiction of the
Illinois Independent Tax Tribunal, the taxpayer may elect to be
subject to the provisions of the Illinois Independent Tax
Tribunal Act at any time on or after July 1, 2013, but not
later than 30 days after the date on which the protest was
filed. If made, the election shall be irrevocable. In the
absence of such a protest filed within the time allowed by law,
the Department's decision shall become final without any
further determination being made or notice given.
    The Department shall discharge any surety and shall release
and return any bond or security deposited, assigned, pledged,
or otherwise provided to it by a taxpayer under this Section
within 30 days after:
    (1) Such taxpayer becomes a prior continuous compliance
taxpayer; or
    (2) Such taxpayer has ceased to collect receipts on which
he is required to remit tax to the Department, has filed a
final tax return, and has paid to the Department an amount
sufficient to discharge his remaining tax liability as
determined by the Department under this Act. The Department
shall make a final determination of the taxpayer's outstanding
tax liability as expeditiously as possible after his final tax
return has been filed. If the Department cannot make such final
determination within 45 days after receiving the final tax
return, within such period it shall so notify the taxpayer,
stating its reasons therefor.
    The Department may authorize distributors to affix revenue
tax stamps by imprinting tax meter stamps upon original
packages of cigarettes. The Department shall adopt rules and
regulations relating to the imprinting of such tax meter stamps
as will result in payment of the proper taxes as herein
imposed. No distributor may affix revenue tax stamps to
original packages of cigarettes by imprinting tax meter stamps
thereon unless such distributor has first obtained permission
from the Department to employ this method of affixation. The
Department shall regulate the use of tax meters and may, to
assure the proper collection of the taxes imposed by this Act,
revoke or suspend the privilege, theretofore granted by the
Department to any distributor, to imprint tax meter stamps upon
original packages of cigarettes.
    Illinois cigarette manufacturers who place their
cigarettes in original packages which are contained inside a
sealed transparent wrapper, and similar out-of-State cigarette
manufacturers who elect to qualify and are accepted by the
Department as distributors under Section 4b(a) of this Act,
shall pay the taxes imposed by this Act by remitting the amount
thereof to the Department by the 5th day of each month covering
cigarettes shipped or otherwise delivered in Illinois to
purchasers during the preceding calendar month. Such
manufacturers of cigarettes in original packages which are
contained inside a sealed transparent wrapper, before
delivering such cigarettes or causing such cigarettes to be
delivered in this State to purchasers, shall evidence their
obligation to remit the taxes due with respect to such
cigarettes by imprinting language to be prescribed by the
Department on each original package of such cigarettes
underneath the sealed transparent outside wrapper of such
original package, in such place thereon and in such manner as
the Department may designate. Such imprinted language shall
acknowledge the manufacturer's payment of or liability for the
tax imposed by this Act with respect to the distribution of
such cigarettes.
    A distributor shall not affix, or cause to be affixed, any
stamp or imprint to a package of cigarettes, as provided for in
this Section, if the tobacco product manufacturer, as defined
in Section 10 of the Tobacco Product Manufacturers' Escrow Act,
that made or sold the cigarettes has failed to become a
participating manufacturer, as defined in subdivision (a)(1)
of Section 15 of the Tobacco Product Manufacturers' Escrow Act,
or has failed to create a qualified escrow fund for any
cigarettes manufactured by the tobacco product manufacturer
and sold in this State or otherwise failed to bring itself into
compliance with subdivision (a)(2) of Section 15 of the Tobacco
Product Manufacturers' Escrow Act.
(Source: P.A. 95-1053, eff. 1-1-10; 96-782, eff. 1-1-10;
96-1027, eff. 7-12-10.)
 
    (35 ILCS 130/8)  (from Ch. 120, par. 453.8)
    Sec. 8. The Department may make, promulgate and enforce
such reasonable rules and regulations relating to the
administration and enforcement of this Act as may be deemed
expedient.
    Whenever notice is required by this Act, such notice may be
given by United States certified or registered mail, addressed
to the person concerned at his last known address, and proof of
such mailing shall be sufficient for the purposes of this Act.
Notice of any hearing provided for by this Act and held before
the Department shall be so given not less than 7 days prior to
the day fixed for the hearing.
    Hearings provided for in this Act, other than hearings
before the Illinois Independent Tax Tribunal, shall be held:
        (1) In Cook County, if the taxpayer's or licensee's
    principal place of business is in that county;
        (2) At the Department's office nearest the taxpayer's
    or licensee's principal place of business, if the
    taxpayer's or licensee's principal place of business is in
    Illinois but outside Cook County;
        (3) In Sangamon County, if the taxpayer's or licensee's
    principal place of business is outside Illinois.
    The Circuit Court of the County wherein the hearing is held
has power to review all final administrative decisions of the
Department in administering this Act. The provisions of the
Administrative Review Law, and all amendments and
modifications thereof, and the rules adopted pursuant thereto,
shall apply to and govern all proceedings for the judicial
review of final administrative decisions of the Department
under this Act. The term "administrative decision" is defined
as in Section 3-101 of the Code of Civil Procedure.
    Service upon the Director of Revenue or Assistant Director
of Revenue of summons issued in any action to review a final
administrative decision shall be service upon the Department.
The Department shall certify the record of its proceedings if
the distributor, secondary distributor, or manufacturer with
authority to maintain manufacturer representatives pays to it
the sum of 75 per page of testimony taken before the
Department and 25 per page of all other matters contained in
such record, except that these charges may be waived where the
Department is satisfied that the aggrieved party is a poor
person who cannot afford to pay such charges. Before the
delivery of such record to the person applying for it, payment
of these charges must be made, and if the record is not paid
for within 30 days after notice that such record is available,
the complaint may be dismissed by the court upon motion of the
Department.
    No stay order shall be entered by the Circuit Court unless
the distributor, secondary distributor, or manufacturer with
authority to maintain manufacturer representatives files with
the court a bond in an amount fixed and approved by the court,
to indemnify the State against all loss and injury which may be
sustained by it on account of the review proceedings and to
secure all costs which may be occasioned by such proceedings.
    Whenever any proceeding provided by this Act is begun
before the Department, either by the Department or by a person
subject to this Act, and such person thereafter dies or becomes
a person under legal disability before such proceeding is
concluded, the legal representative of the deceased person or
of the person under legal disability shall notify the
Department of such death or legal disability. Such legal
representative, as such, shall then be substituted by the
Department for such person. If the legal representative fails
to notify the Department of his or her appointment as such
legal representative, the Department may, upon its own motion,
substitute such legal representative in the proceeding pending
before the Department for the person who died or became a
person under legal disability.
    Hearings to contest an administrative decision under this
Act conducted as a result of a protest filed with the Illinois
Independent Tax Tribunal on or after July 1, 2013 shall be
conducted pursuant to the provisions of the Illinois
Independent Tax Tribunal Act of 2012.
(Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11.)
 
    (35 ILCS 130/8a)  (from Ch. 120, par. 453.8a)
    Sec. 8a. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department of Revenue under this
Act, except that (1) paragraph (b) of Section 5-10 of the
Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2)
subparagraph (a)2 of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to forms
established by the Department for use under this Act, and (3)
the provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded and
not applicable to the Department under this Act to the extent
Section 10-45 applies to hearings not otherwise subject to the
Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 88-45.)
 
    (35 ILCS 130/9a)  (from Ch. 120, par. 453.9a)
    Sec. 9a. Examination and correction of returns.
    (1) As soon as practicable after any return is filed, the
Department shall examine such return and shall correct such
return according to its best judgment and information, which
return so corrected by the Department shall be prima facie
correct and shall be prima facie evidence of the correctness of
the amount of tax due, as shown therein. Instead of requiring
the distributor to file an amended return, the Department may
simply notify the distributor of the correction or corrections
it has made. Proof of such correction by the Department may be
made at any hearing before the Department or in any legal
proceeding by a reproduced copy of the Department's record
relating thereto in the name of the Department under the
certificate of the Director of Revenue. Such reproduced copy
shall, without further proof, be admitted into evidence before
the Department or in any legal proceeding and shall be prima
facie proof of the correctness of the amount of tax due, as
shown therein. If the Department finds that any amount of tax
is due from the distributor, the Department shall issue the
distributor a notice of tax liability for the amount of tax
claimed by the Department to be due, together with a penalty in
an amount determined in accordance with Sections 3-3, 3-5 and
3-6 of the Uniform Penalty and Interest Act. If, in
administering the provisions of this Act, comparison of a
return or returns of a distributor with the books, records and
inventories of such distributor discloses a deficiency which
cannot be allocated by the Department to a particular month or
months, the Department shall issue the distributor a notice of
tax liability for the amount of tax claimed by the Department
to be due for a given period, but without any obligation upon
the Department to allocate such deficiency to any particular
month or months, together with a penalty in an amount
determined in accordance with Sections 3-3, 3-5 and 3-6 of the
Uniform Penalty and Interest Act, under which circumstances the
aforesaid notice of tax liability shall be prima facie correct
and shall be prima facie evidence of the correctness of the
amount of tax due, as shown therein; and proof of such
correctness may be made in accordance with, and the
admissibility of a reproduced copy of such notice of tax
liability shall be governed by, all the provisions of this Act
applicable to corrected returns. If any distributor filing any
return dies or becomes a person under legal disability at any
time before the Department issues its notice of tax liability,
such notice shall be issued to the administrator, executor or
other legal representative, as such, of such distributor.
    (2) Except as otherwise provided in this Section, if If,
within 60 days after such notice of tax liability, the
distributor or his or her legal representative files a protest
to such notice of tax liability and requests a hearing thereon,
the Department shall give notice to such distributor or legal
representative of the time and place fixed for such hearing,
and shall hold a hearing in conformity with the provisions of
this Act, and pursuant thereto shall issue a final assessment
to such distributor or legal representative for the amount
found to be due as a result of such hearing. On or after July 1,
2013, protests concerning matters that are subject to the
jurisdiction of the Illinois Independent Tax Tribunal shall be
filed in accordance with the Illinois Independent Tax Tribunal
Act of 2012, and hearings concerning those matters shall be
held before the Tribunal in accordance with that Act. With
respect to protests filed with the Department prior to July 1,
2013 that would otherwise be subject to the jurisdiction of the
Illinois Independent Tax Tribunal, the taxpayer may elect to be
subject to the provisions of the Illinois Independent Tax
Tribunal Act at any time on or after July 1, 2013, but not
later than 30 days after the date on which the protest was
filed. If made, the election shall be irrevocable. If a protest
to the notice of tax liability and a request for a hearing
thereon is not filed within the time allowed by law 60 days
after such notice of tax liability, such notice of tax
liability shall become final without the necessity of a final
assessment being issued and shall be deemed to be a final
assessment.
    (3) In case of failure to pay the tax, or any portion
thereof, or any penalty provided for in this Act, when due, the
Department may bring suit to recover the amount of such tax, or
portion thereof, or penalty; or, if the taxpayer dies or
becomes incompetent, by filing claim therefor against his
estate; provided that no such action with respect to any tax,
or portion thereof, or penalty, shall be instituted more than 2
years after the cause of action accrues, except with the
consent of the person from whom such tax or penalty is due.
    After the expiration of the period within which the person
assessed may file an action for judicial review under the
Administrative Review Law without such an action being filed, a
certified copy of the final assessment or revised final
assessment of the Department may be filed with the Circuit
Court of the county in which the taxpayer has his or her
principal place of business, or of Sangamon County in those
cases in which the taxpayer does not have his principal place
of business in this State. The certified copy of the final
assessment or revised final assessment shall be accompanied by
a certification which recites facts that are sufficient to show
that the Department complied with the jurisdictional
requirements of the Law in arriving at its final assessment or
its revised final assessment and that the taxpayer had his or
her opportunity for an administrative hearing and for judicial
review, whether he availed himself or herself of either or both
of these opportunities or not. If the court is satisfied that
the Department complied with the jurisdictional requirements
of the Law in arriving at its final assessment or its revised
final assessment and that the taxpayer had his or her
opportunity for an administrative hearing and for judicial
review, whether he or she availed himself or herself of either
or both of these opportunities or not, the court shall enter
judgment in favor of the Department and against the taxpayer
for the amount shown to be due by the final assessment or the
revised final assessment, and such judgment shall be filed of
record in the court. Such judgment shall bear the rate of
interest set in the Uniform Penalty and Interest Act, but
otherwise shall have the same effect as other judgments. The
judgment may be enforced, and all laws applicable to sales for
the enforcement of a judgment shall be applicable to sales made
under such judgments. The Department shall file the certified
copy of its assessment, as herein provided, with the Circuit
Court within 2 years after such assessment becomes final except
when the taxpayer consents in writing to an extension of such
filing period.
    If, when the cause of action for a proceeding in court
accrues against a person, he or she is out of the State, the
action may be commenced within the times herein limited, after
his or her coming into or return to the State; and if, after
the cause of action accrues, he or she departs from and remains
out of the State, the time of his or her absence is no part of
the time limited for the commencement of the action; but the
foregoing provisions concerning absence from the State shall
not apply to any case in which, at the time the cause of action
accrues, the party against whom the cause of action accrues is
not a resident of this State. The time within which a court
action is to be commenced by the Department hereunder shall not
run while the taxpayer is a debtor in any proceeding under the
Federal Bankruptcy Act nor thereafter until 90 days after the
Department is notified by such debtor of being discharged in
bankruptcy.
    No claim shall be filed against the estate of any deceased
person or a person under legal disability for any tax or
penalty or part of either except in the manner prescribed and
within the time limited by the Probate Act of 1975, as amended.
    The remedies provided for herein shall not be exclusive,
but all remedies available to creditors for the collection of
debts shall be available for the collection of any tax or
penalty due hereunder.
    The collection of tax or penalty by any means provided for
herein shall not be a bar to any prosecution under this Act.
    The certificate of the Director of the Department to the
effect that a tax or amount required to be paid by this Act has
not been paid, that a return has not been filed, or that
information has not been supplied pursuant to the provisions of
this Act, shall be prima facie evidence thereof.
    All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5i and 5j of the Retailers' Occupation Tax Act, which are
not inconsistent with this Act, and Section 3-7 of the Uniform
Penalty and Interest Act shall apply, as far as practicable, to
the subject matter of this Act to the same extent as if such
provisions were included herein. References in such
incorporated Sections of the "Retailers' Occupation Tax Act" to
retailers, to sellers or to persons engaged in the business of
selling tangible personal property shall mean distributors
when used in this Act.
(Source: P.A. 92-322, eff. 1-1-02.)
 
    (35 ILCS 130/9b)  (from Ch. 120, par. 453.9b)
    Sec. 9b. Failure to file return; penalty; protest. In case
any person who is required to file a return under this Act
fails to file such return, the Department shall determine the
amount of tax due from him according to its best judgment and
information, which amount so fixed by the Department shall be
prima facie correct and shall be prima facie evidence of the
correctness of the amount of tax due, as shown in such
determination. Proof of such determination by the Department
may be made at any hearing before the Department or in any
legal proceeding by a reproduced copy of the Department's
record relating thereto in the name of the Department under the
certificate of the Director of Revenue. Such reproduced copy
shall, without further proof, be admitted into evidence before
the Department or in any legal proceeding and shall be prima
facie proof of the correctness of the amount of tax due, as
shown therein. The Department shall issue such person a notice
of tax liability for the amount of tax claimed by the
Department to be due, together with a penalty in an amount
determined in accordance with Sections 3-3, 3-5 and 3-6 of the
Uniform Penalty and Interest Act. If such person or the legal
representative of such person, within 60 days after such
notice, files a protest to such notice of tax liability and
requests a hearing thereon, the Department shall give notice to
such person or the legal representative of such person of the
time and place fixed for such hearing and shall hold a hearing
in conformity with the provisions of this Act, and pursuant
thereto shall issue a final assessment to such person or to the
legal representative of such person for the amount found to be
due as a result of such hearing. Hearings to protest a notice
of tax liability issued pursuant to this Section that are
conducted as a result of a protest filed with the Illinois
Independent Tax Tribunal on or after July 1, 2013 shall be
conducted pursuant to the Illinois Independent Tax Tribunal
Act. If a protest to the notice of tax liability and a request
for a hearing thereon is not filed within 60 days after such
notice of tax liability, such notice of tax liability shall
become final without the necessity of a final assessment being
issued and shall be deemed to be a final assessment.
(Source: P.A. 92-322, eff. 1-1-02.)
 
    (35 ILCS 130/10)  (from Ch. 120, par. 453.10)
    Sec. 10. The Department, or any officer or employee
designated in writing by the Director thereof, for the purpose
of administering and enforcing the provisions of this Act, may
hold investigations and, except as otherwise provided in the
Illinois Independent Tax Tribunal Act of 2012, may hold
hearings concerning any matters covered by this Act, and may
examine books, papers, records or memoranda bearing upon the
sale or other disposition of cigarettes by a distributor,
secondary distributor, manufacturer with authority to maintain
manufacturer representatives under Section 4f of this Act, or
manufacturer representative, and may issue subpoenas requiring
the attendance of a distributor, secondary distributor,
manufacturer with authority to maintain manufacturer
representatives under Section 4f of this Act, or manufacturer
representative, or any officer or employee of a distributor,
secondary distributor, manufacturer with authority to maintain
manufacturer representatives under Section 4f of this Act, or
any person having knowledge of the facts, and may take
testimony and require proof, and may issue subpoenas duces
tecum to compel the production of relevant books, papers,
records and memoranda, for the information of the Department.
    All hearings to contest administrative decisions of the
Department conducted as a result of a protest filed with the
Illinois Independent Tax Tribunal on or after July 1, 2013
shall be subject to the provisions of the Illinois Independent
Tax Tribunal Act of 2012.
    In the conduct of any investigation or hearing provided for
by this Act, neither the Department, nor any officer or
employee thereof, shall be bound by the technical rules of
evidence, and no informality in the proceedings nor in the
manner of taking testimony shall invalidate any rule, order,
decision or regulation made, approved or confirmed by the
Department.
    The Director of Revenue, or any duly authorized officer or
employee of the Department, shall have the power to administer
oaths to such persons required by this Act to give testimony
before the said Department.
    The books, papers, records and memoranda of the Department,
or parts thereof, may be proved in any hearing, investigation
or legal proceeding by a reproduced copy thereof under the
certificate of the Director of Revenue. Such reproduced copy
shall, without further proof, be admitted into evidence before
the Department or in any legal proceeding.
(Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11.)
 
    Section 5-50. The Cigarette Use Tax Act is amended by
changing Sections 3, 13, 13a, 21, and 21a as follows:
 
    (35 ILCS 135/3)  (from Ch. 120, par. 453.33)
    Sec. 3. Stamp payment. The tax hereby imposed shall be
collected by a distributor maintaining a place of business in
this State or a distributor authorized by the Department
pursuant to Section 7 hereof to collect the tax, and the amount
of the tax shall be added to the price of the cigarettes sold
by such distributor. Collection of the tax shall be evidenced
by a stamp or stamps affixed to each original package of
cigarettes or by an authorized substitute for such stamp
imprinted on each original package of such cigarettes
underneath the sealed transparent outside wrapper of such
original package, except as hereinafter provided. Each
distributor who is required or authorized to collect the tax
herein imposed, before delivering or causing to be delivered
any original packages of cigarettes in this State to any
purchaser, shall firmly affix a proper stamp or stamps to each
such package, or (in the case of manufacturers of cigarettes in
original packages which are contained inside a sealed
transparent wrapper) shall imprint the required language on the
original package of cigarettes beneath such outside wrapper as
hereinafter provided. Such stamp or stamps need not be affixed
to the original package of any cigarettes with respect to which
the distributor is required to affix a like stamp or stamps by
virtue of the Cigarette Tax Act, however, and no tax imprint
need be placed underneath the sealed transparent wrapper of an
original package of cigarettes with respect to which the
distributor is required or authorized to employ a like tax
imprint by virtue of the Cigarette Tax Act.
    No stamp or imprint may be affixed to, or made upon, any
package of cigarettes unless that package complies with all
requirements of the federal Cigarette Labeling and Advertising
Act, 15 U.S.C. 1331 and following, for the placement of labels,
warnings, or any other information upon a package of cigarettes
that is sold within the United States. Under the authority of
Section 6, the Department shall revoke the license of any
distributor that is determined to have violated this paragraph.
A person may not affix a stamp on a package of cigarettes,
cigarette papers, wrappers, or tubes if that individual package
has been marked for export outside the United States with a
label or notice in compliance with Section 290.185 of Title 27
of the Code of Federal Regulations. It is not a defense to a
proceeding for violation of this paragraph that the label or
notice has been removed, mutilated, obliterated, or altered in
any manner.
    Only distributors licensed under this Act and
transporters, as defined in Section 9c of the Cigarette Tax
Act, may possess unstamped original packages of cigarettes.
Prior to shipment to an Illinois retailer or secondary
distributor, a stamp shall be applied to each original package
of cigarettes sold to the retailer or secondary distributor. A
distributor may apply a tax stamp only to an original package
of cigarettes purchased or obtained directly from an in-state
maker, manufacturer, or fabricator licensed as a distributor
under Section 4 of this Act or an out-of-state maker,
manufacturer, or fabricator holding a permit under Section 7 of
this Act. A licensed distributor may ship or otherwise cause to
be delivered unstamped original packages of cigarettes in,
into, or from this State. A licensed distributor may transport
unstamped original packages of cigarettes to a facility,
wherever located, owned or controlled by such distributor;
however, a distributor may not transport unstamped original
packages of cigarettes to a facility where retail sales of
cigarettes take place or to a facility where a secondary
distributor makes sales for resale. Any licensed distributor
that ships or otherwise causes to be delivered unstamped
original packages of cigarettes into, within, or from this
State shall ensure that the invoice or equivalent documentation
and the bill of lading or freight bill for the shipment
identifies the true name and address of the consignor or
seller, the true name and address of the consignee or
purchaser, and the quantity by brand style of the cigarettes so
transported, provided that this Section shall not be construed
as to impose any requirement or liability upon any common or
contract carrier.
    Distributors making sales of cigarettes to secondary
distributors shall add the amount of the tax to the price of
the cigarettes sold by the distributors. Secondary
distributors making sales of cigarettes to retailers shall
include the amount of the tax in the price of the cigarettes
sold to retailers. The amount of tax shall not be less than the
amount of taxes imposed by the State and all local
jurisdictions. The amount of local taxes shall be calculated
based on the location of the retailer's place of business shown
on the retailer's certificate of registration or
sub-registration issued to the retailer pursuant to Section 2a
of the Retailers' Occupation Tax Act. The original packages of
cigarettes sold by the retailer shall bear all the required
stamps, or other indicia, for the taxes included in the price
of cigarettes.
    Stamps, when required hereunder, shall be purchased from
the Department, or any person authorized by the Department, by
distributors. On and after July 1, 2003, payment for such
stamps must be made by means of electronic funds transfer. The
Department may refuse to sell stamps to any person who does not
comply with the provisions of this Act. Beginning on June 6,
2002 and through June 30, 2002, persons holding valid licenses
as distributors may purchase cigarette tax stamps up to an
amount equal to 115% of the distributor's average monthly
cigarette tax stamp purchases over the 12 calendar months prior
to June 6, 2002.
    Prior to December 1, 1985, the Department shall allow a
distributor 21 days in which to make final payment of the
amount to be paid for such stamps, by allowing the distributor
to make payment for the stamps at the time of purchasing them
with a draft which shall be in such form as the Department
prescribes, and which shall be payable within 21 days
thereafter: Provided that such distributor has filed with the
Department, and has received the Department's approval of, a
bond, which is in addition to the bond required under Section 4
of this Act, payable to the Department in an amount equal to
80% of such distributor's average monthly tax liability to the
Department under this Act during the preceding calendar year or
$500,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of credit.
The bond shall be conditioned upon the distributor's payment of
the amount of any 21-day draft which the Department accepts
from that distributor for the delivery of stamps to that
distributor under this Act. The distributor's failure to pay
any such draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
    On and after December 1, 1985 and until July 1, 2003, the
Department shall allow a distributor 30 days in which to make
final payment of the amount to be paid for such stamps, by
allowing the distributor to make payment for the stamps at the
time of purchasing them with a draft which shall be in such
form as the Department prescribes, and which shall be payable
within 30 days thereafter, and beginning on January 1, 2003 and
thereafter, the draft shall be payable by means of electronic
funds transfer: Provided that such distributor has filed with
the Department, and has received the Department's approval of,
a bond, which is in addition to the bond required under Section
4 of this Act, payable to the Department in an amount equal to
150% of such distributor's average monthly tax liability to the
Department under this Act during the preceding calendar year or
$750,000, whichever is less, except that as to bonds filed on
or after January 1, 1987, such additional bond shall be in an
amount equal to 100% of such distributor's average monthly tax
liability under this Act during the preceding calendar year or
$750,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of credit.
The bond shall be conditioned upon the distributor's payment of
the amount of any 30-day draft which the Department accepts
from that distributor for the delivery of stamps to that
distributor under this Act. The distributor's failure to pay
any such draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
    Every prior continuous compliance taxpayer shall be exempt
from all requirements under this Section concerning the
furnishing of such bond, as defined in this Section, as a
condition precedent to his being authorized to engage in the
business licensed under this Act. This exemption shall continue
for each such taxpayer until such time as he may be determined
by the Department to be delinquent in the filing of any
returns, or is determined by the Department (either through the
Department's issuance of a final assessment which has become
final under the Act, or by the taxpayer's filing of a return
which admits tax to be due that is not paid) to be delinquent
or deficient in the paying of any tax under this Act, at which
time that taxpayer shall become subject to the bond
requirements of this Section and, as a condition of being
allowed to continue to engage in the business licensed under
this Act, shall be required to furnish bond to the Department
in such form as provided in this Section. Such taxpayer shall
furnish such bond for a period of 2 years, after which, if the
taxpayer has not been delinquent in the filing of any returns,
or delinquent or deficient in the paying of any tax under this
Act, the Department may reinstate such person as a prior
continuance compliance taxpayer. Any taxpayer who fails to pay
an admitted or established liability under this Act may also be
required to post bond or other acceptable security with the
Department guaranteeing the payment of such admitted or
established liability.
    Except as otherwise provided in this Section, any Any
person aggrieved by any decision of the Department under this
Section may, within the time allowed by law, protest and
request a hearing before the Department, whereupon the
Department shall give notice and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to such person.
Effective July 1, 2013, protests concerning matters that are
subject to the jurisdiction of the Illinois Independent Tax
Tribunal shall be filed in accordance with the Illinois
Independent Tax Tribunal Act of 2012, and hearings concerning
those matters shall be held before the Tribunal in accordance
with that Act. With respect to protests filed with the
Department prior to July 1, 2013 that would otherwise be
subject to the jurisdiction of the Illinois Independent Tax
Tribunal, the person filing the protest may elect to be subject
to the provisions of the Illinois Independent Tax Tribunal Act
of 2012 at any time on or after July 1, 2013, but not later than
30 days after the date on which the protest was filed. If made,
the election shall be irrevocable. In the absence of such a
protest filed within the time allowed by law, the Department's
decision shall become final without any further determination
being made or notice given.
    The Department shall discharge any surety and shall release
and return any bond or security deposited, assigned, pledged,
or otherwise provided to it by a taxpayer under this Section
within 30 days after:
        (1) such Taxpayer becomes a prior continuous
    compliance taxpayer; or
        (2) such taxpayer has ceased to collect receipts on
    which he is required to remit tax to the Department, has
    filed a final tax return, and has paid to the Department an
    amount sufficient to discharge his remaining tax liability
    as determined by the Department under this Act. The
    Department shall make a final determination of the
    taxpayer's outstanding tax liability as expeditiously as
    possible after his final tax return has been filed. If the
    Department cannot make such final determination within 45
    days after receiving the final tax return, within such
    period it shall so notify the taxpayer, stating its reasons
    therefor.
    At the time of purchasing such stamps from the Department
when purchase is required by this Act, or at the time when the
tax which he has collected is remitted by a distributor to the
Department without the purchase of stamps from the Department
when that method of remitting the tax that has been collected
is required or authorized by this Act, the distributor shall be
allowed a discount during any year commencing July 1 and ending
the following June 30 in accordance with the schedule set out
hereinbelow, from the amount to be paid by him to the
Department for such stamps, or to be paid by him to the
Department on the basis of monthly remittances (as the case may
be), to cover the cost, to such distributor, of collecting the
tax herein imposed by affixing such stamps to the original
packages of cigarettes sold by such distributor or by placing
tax imprints underneath the sealed transparent wrapper of
original packages of cigarettes sold by such distributor (as
the case may be): (1) Prior to December 1, 1985, a discount
equal to 1-2/3% of the amount of the tax up to and including
the first $700,000 paid hereunder by such distributor to the
Department during any such year; 1-1/3% of the next $700,000 of
tax or any part thereof, paid hereunder by such distributor to
the Department during any such year; 1% of the next $700,000 of
tax, or any part thereof, paid hereunder by such distributor to
the Department during any such year; and 2/3 of 1% of the
amount of any additional tax paid hereunder by such distributor
to the Department during any such year or (2) On and after
December 1, 1985, a discount equal to 1.75% of the amount of
the tax payable under this Act up to and including the first
$3,000,000 paid hereunder by such distributor to the Department
during any such year and 1.5% of the amount of any additional
tax paid hereunder by such distributor to the Department during
any such year.
    Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled by
the same interests shall be treated as a single distributor for
the purpose of computing the discount.
    Cigarette manufacturers who are distributors under Section
7(a) of this Act, and who place their cigarettes in original
packages which are contained inside a sealed transparent
wrapper, shall be required to remit the tax which they are
required to collect under this Act to the Department by
remitting the amount thereof to the Department by the 5th day
of each month, covering cigarettes shipped or otherwise
delivered to points in Illinois to purchasers during the
preceding calendar month, but a distributor need not remit to
the Department the tax so collected by him from purchasers
under this Act to the extent to which such distributor is
required to remit the tax imposed by the Cigarette Tax Act to
the Department with respect to the same cigarettes. All taxes
upon cigarettes under this Act are a direct tax upon the retail
consumer and shall conclusively be presumed to be precollected
for the purpose of convenience and facility only. Cigarette
manufacturers that are distributors licensed under Section
7(a) of this Act and who place their cigarettes in original
packages which are contained inside a sealed transparent
wrapper, before delivering such cigarettes or causing such
cigarettes to be delivered in this State to purchasers, shall
evidence their obligation to collect and remit the tax due with
respect to such cigarettes by imprinting language to be
prescribed by the Department on each original package of such
cigarettes underneath the sealed transparent outside wrapper
of such original package, in such place thereon and in such
manner as the Department may prescribe; provided (as stated
hereinbefore) that this requirement does not apply when such
distributor is required or authorized by the Cigarette Tax Act
to place the tax imprint provided for in the last paragraph of
Section 3 of that Act underneath the sealed transparent wrapper
of such original package of cigarettes. Such imprinted language
shall acknowledge the manufacturer's collection and payment of
or liability for the tax imposed by this Act with respect to
such cigarettes.
    The Department shall adopt the design or designs of the tax
stamps and shall procure the printing of such stamps in such
amounts and denominations as it deems necessary to provide for
the affixation of the proper amount of tax stamps to each
original package of cigarettes.
    Where tax stamps are required, the Department may authorize
distributors to affix revenue tax stamps by imprinting tax
meter stamps upon original packages of cigarettes. The
Department shall adopt rules and regulations relating to the
imprinting of such tax meter stamps as will result in payment
of the proper taxes as herein imposed. No distributor may affix
revenue tax stamps to original packages of cigarettes by
imprinting meter stamps thereon unless such distributor has
first obtained permission from the Department to employ this
method of affixation. The Department shall regulate the use of
tax meters and may, to assure the proper collection of the
taxes imposed by this Act, revoke or suspend the privilege,
theretofore granted by the Department to any distributor, to
imprint tax meter stamps upon original packages of cigarettes.
    The tax hereby imposed and not paid pursuant to this
Section shall be paid to the Department directly by any person
using such cigarettes within this State, pursuant to Section 12
hereof.
    A distributor shall not affix, or cause to be affixed, any
stamp or imprint to a package of cigarettes, as provided for in
this Section, if the tobacco product manufacturer, as defined
in Section 10 of the Tobacco Product Manufacturers' Escrow Act,
that made or sold the cigarettes has failed to become a
participating manufacturer, as defined in subdivision (a)(1)
of Section 15 of the Tobacco Product Manufacturers' Escrow Act,
or has failed to create a qualified escrow fund for any
cigarettes manufactured by the tobacco product manufacturer
and sold in this State or otherwise failed to bring itself into
compliance with subdivision (a)(2) of Section 15 of the Tobacco
Product Manufacturers' Escrow Act.
(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
 
    (35 ILCS 135/13)  (from Ch. 120, par. 453.43)
    Sec. 13. Examination and correction of return. As soon as
practicable after any return is filed, the Department shall
examine such return and shall correct such return according to
its best judgment and information, which return so corrected by
the Department shall be prima facie correct and shall be prima
facie evidence of the correctness of the amount of tax due, as
shown therein. Proof of such correction by the Department may
be made at any hearing before the Department or in any legal
proceeding by a reproduced copy of the Department's record
relating thereto in the name of the Department under the
certificate of the Director of Revenue. Such reproduced copy
shall, without further proof, be admitted into evidence before
the Department or in any legal proceeding and shall be prima
facie proof of the correctness of the amount of tax due, as
shown therein. If the tax as fixed by the Department is greater
than the amount of the tax due under the return as filed, the
Department shall issue the person filing such return a notice
of tax liability for the amount of tax claimed by the
Department to be due, together with a penalty in an amount
determined in accordance with Sections 3-3, 3-5 and 3-6 of the
Uniform Penalty and Interest Act. If, in administering the
provisions of this Act, comparison of a return or returns of a
distributor with the books, records and inventories of such
distributor discloses a deficiency which cannot be allocated by
the Department to a particular month or months, the Department
shall issue the distributor a notice of tax liability for the
amount of tax claimed by the Department to be due for a given
period, but without any obligation upon the Department to
allocate such deficiency to any particular month or months,
together with a penalty in an amount determined in accordance
with Sections 3-3, 3-5 and 3-6 of the Uniform Penalty and
Interest Act, under which circumstances the aforesaid notice of
tax liability shall be prima facie correct and shall be prima
facie evidence of the correctness of the amount of tax due, as
shown therein; and proof of such correctness may be made in
accordance with, and the admissibility of a reproduced copy of
such notice of tax liability shall be governed by, all the
provisions of this Act applicable to corrected returns.
    If any person filing any return dies or becomes a person
under legal disability at any time before the Department issues
its notice of tax liability, such notice shall be issued to the
administrator, executor or other legal representative, as
such, of such person.
    Except as otherwise provided in this Section, if If within
60 days after such notice of tax liability, the person to whom
such notice is issued or his legal representative files a
protest to such notice of tax liability and requests a hearing
thereon, the Department shall give notice to such person or
legal representative of the time and place fixed for such
hearing, and shall hold a hearing in conformity with the
provisions of this Act, and pursuant thereto shall issue a
final assessment to such person or legal representative for the
amount found to be due as a result of such hearing. Effective
July 1, 2013, protests concerning matters that are subject to
the jurisdiction of the Illinois Independent Tax Tribunal shall
be filed with the Tribunal in accordance with the Illinois
Independent Tax Tribunal Act of 2012, and hearings concerning
those matters shall be held before the Tribunal in accordance
with that Act. With respect to protests filed with the
Department prior to July 1, 2013 that would otherwise be
subject to the jurisdiction of the Illinois Independent Tax
Tribunal, the person filing the protest may elect to be subject
to the provisions of the Illinois Independent Tax Tribunal Act
of 2012 at any time on or after July 1, 2013, but not later than
30 days after the date on which the protest was filed. If made,
the election shall be irrevocable. If a protest to the notice
of tax liability and a request for a hearing thereon is not
filed within the time allowed by law 60 days after such notice
of tax liability, such notice of tax liability shall become
final without the necessity of a final assessment being issued
and shall be deemed to be a final assessment.
(Source: P.A. 92-322, eff. 1-1-02.)
 
    (35 ILCS 135/13a)  (from Ch. 120, par. 453.43a)
    Sec. 13a. Failure to file return. In case any person who is
required to file a return under this Act fails to file such
return, the Department shall determine the amount of tax due
from him according to its best judgment and information, which
amount so fixed by the Department shall be prima facie correct
and shall be prima facie evidence of the correctness of the
amount of tax due, as shown in such determination. Proof of
such determination by the Department may be made at any hearing
before the Department or in any legal proceeding by a
reproduced copy of the Department's record relating thereto in
the name of the Department under the certificate of the
Director of Revenue. Such reproduced copy shall, without
further proof, be admitted into evidence before the Department
or in any legal proceeding and shall be prima facie proof of
the correctness of the amount of tax due, as shown therein. The
Department shall issue such person a notice of tax liability
for the amount of tax claimed by the Department to be due,
together with a penalty in an amount determined in accordance
with Sections 3-3, 3-5 and 3-6 of the Uniform Penalty and
Interest Act. Except as otherwise provided in this Section, if
If such person or the legal representative of such person,
within 60 days after such notice, files a protest to such
notice of tax liability and requests a hearing thereon, the
Department shall give notice to such person or the legal
representative of such person of the time and place fixed for
such hearing, and shall hold a hearing in conformity with the
provisions of this Act, and pursuant thereto shall issue a
final assessment to such person or to the legal representative
of such person for the amount found to be due as a result of
such hearing. Effective July 1, 2013, protests concerning
matters that are subject to the jurisdiction of the Illinois
Independent Tax Tribunal shall be filed with the Tribunal in
accordance with the Illinois Independent Tax Tribunal Act of
2012, and hearings concerning those matters shall be held
before the Tribunal in accordance with that Act. With respect
to protests filed with the Department prior to July 1, 2013
that would otherwise be subject to the jurisdiction of the
Illinois Independent Tax Tribunal, the person filing the
protest may elect to be subject to the provisions of the
Illinois Independent Tax Tribunal Act of 2012 at any time on or
after July 1, 2013, but not later than 30 days after the date
on which the protest was filed. If made, the election shall be
irrevocable. If a protest to the notice of tax liability and a
request for a hearing thereon is not filed within the time
allowed by law 60 days after such notice of tax liability, such
notice of tax liability shall become final without the
necessity of a final assessment being issued and shall be
deemed to be a final assessment.
(Source: P.A. 92-322, eff. 1-1-02.)
 
    (35 ILCS 135/21)  (from Ch. 120, par. 453.51)
    Sec. 21. The Department may make, promulgate and enforce
such reasonable rules and regulations relating to the
administration and enforcement of this Act as may be deemed
expedient.
    Whenever notice is required by this Act, such notice may be
given by United States certified or registered mail, addressed
to the person concerned at his or her last known address, and
proof of such mailing shall be sufficient for the purposes of
this Act. Notice of any hearing provided for by this Act and
held before the Department shall be so given not less than 7
days prior to the day fixed for the hearing.
    Hearings provided for in this Act, other than hearings
before the Illinois Independent Tax Tribunal, shall be held:
        (1) In Cook County, if the taxpayer's or licensee's
    principal place of business is in that county;
        (2) At the Department's office nearest the taxpayer's
    or licensee's principal place of business, if the
    taxpayer's or licensee's principal place of business is in
    Illinois but outside Cook County;
        (3) In Sangamon County, if the taxpayer's or licensee's
    principal place of business is outside Illinois.
    The Circuit Court of the County wherein the hearing is held
shall have power to review all final administrative decisions
of the Department in administering this Act. The provisions of
the Administrative Review Law, as amended, and the rules
adopted pursuant thereto, shall apply to and govern all
proceedings for the judicial review of final administrative
decisions of the Department under this Act. The term
"administrative decision" is defined as in Section 3-101 of the
Code of Civil Procedure.
    Service upon the Director of Revenue or Assistant Director
of Revenue of the Department of Revenue of summons issued in
any action to review a final administrative decision shall be
service upon the Department. The Department shall certify the
record of its proceedings if the plaintiff in the action for
judicial review shall pay to it the sum of 75 per page of
testimony taken before the Department and 25 per page of all
other matters contained in such record, except that these
charges may be waived where the Department is satisfied that
the aggrieved party is a poor person who cannot afford to pay
such charges. However, before the delivery of such record to
the person applying for it payment of these charges must be
made, and if the record is not paid for within 30 days after
notice that such record is available, the complaint may be
dismissed by the court upon motion of the Department.
    No stay order shall be entered by the Circuit Court unless
the plaintiff in the action for judicial review files with the
court a bond in an amount fixed and approved by the court, to
indemnify the State against all loss and injury which may be
sustained by it on account of the review proceedings and to
secure all costs which may be occasioned by such proceedings.
    Whenever any proceeding provided by this Act is commenced
before the Department, either by the Department or by a person
subject to this Act, and such person thereafter dies or becomes
a person under legal disability before such proceeding is
concluded, the legal representative of the deceased or a person
under legal disability shall notify the Department of such
death or legal disability. Such legal representative, as such,
shall then be substituted by the Department for such person. If
the legal representative fails to notify the Department of his
or her appointment as such legal representative, the Department
may, upon its own motion, substitute such legal representative
in the proceeding pending before the Department for the person
who died or became a person under legal disability.
    Hearings to protest an administrative decision of the
Department conducted as a result of a protest filed with the
Illinois Independent Tax Tribunal on or after July 1, 2013
shall be conducted pursuant to the provisions of the Illinois
Independent Tax Tribunal Act of 2012.
(Source: P.A. 96-1027, eff. 7-12-10.)
 
    (35 ILCS 135/21a)  (from Ch. 120, par. 453.51a)
    Sec. 21a. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department of Revenue under this
Act, except that (1) paragraph (b) of Section 5-10 of the
Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2)
subparagraph (a)2 of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to forms
established by the Department for use under this Act, and (3)
the provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded and
not applicable to the Department under this Act to the extent
Section 10-45 applies to hearings not otherwise subject to the
Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 88-45.)
 
    Section 5-55. The Tobacco Products Tax Act of 1995 is
amended by changing Section 10-58 as follows:
 
    (35 ILCS 143/10-58)
    Sec. 10-58. Sale of forfeited tobacco products or vending
devices.
    (a) When any tobacco products or any vending devices are
declared forfeited to the State by the Department, as provided
in Section 10-55, and when all proceedings for the judicial
review of the Department's decision have terminated, the
Department shall, to the extent that its decision is sustained
on review, sell the property for the best price obtainable and
shall forthwith pay over the proceeds of the sale to the State
Treasurer. If the value of the property to be sold at any one
time is $500 or more, however, the property shall be sold only
to the highest and best bidder on terms and conditions, and on
open competitive bidding after public advertisement, in a
manner and for terms as the Department, by rule, may prescribe.
    (b) If no complaint for review, as provided in Section 12
of the Retailers' Occupation Tax Act, has been filed within the
time required by the Administrative Review Law, and if no stay
order has been entered under that Law, the Department shall
proceed to destroy, maintain and use in an undercover capacity,
or sell the property for the best price obtainable and shall
forthwith pay over the proceeds of the sale to the State
Treasurer. If the value of the property to be sold at any one
time is $500 or more, however, the property shall be sold only
to the highest and best bidder on terms and conditions, and on
open competitive bidding after public advertisement, in a
manner and for terms as the Department, by rule, may prescribe.
    (c) Upon making a sale of tobacco products as provided in
this Section, the Department shall affix a distinctive stamp to
each of the tobacco products so sold indicating that they are
sold under this Section.
    (d) Notwithstanding the foregoing, any tobacco products
seized under this Act may, at the discretion of the Director of
Revenue, be distributed to any eleemosynary institution within
the State of Illinois.
(Source: P.A. 94-776, eff. 5-19-06.)
 
    Section 5-60. The Hotel Operators' Occupation Tax Act is
amended by changing Section 10 as follows:
 
    (35 ILCS 145/10)  (from Ch. 120, par. 481b.40)
    Sec. 10. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department of Revenue under this
Act, except that (1) paragraph (b) of Section 5-10 of the
Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2)
subparagraph (a)2 of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to forms
established by the Department for use under this Act, and (3)
the provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded and
not applicable to the Department under this Act to the extent
Section 10-45 applies to hearings not otherwise subject to the
Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 88-45.)
 
    Section 5-65. The Motor Fuel Tax Law is amended by changing
Section 18 as follows:
 
    (35 ILCS 505/18)  (from Ch. 120, par. 433.1)
    Sec. 18. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department of Revenue under this
Act, except that (1) paragraph (b) of Section 5-10 of the
Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2)
subparagraph (a)2 of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to forms
established by the Department for use under this Act, and (3)
the provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded and
not applicable to the Department under this Act to the extent
Section 10-45 applies to hearings not otherwise subject to the
Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 88-45.)
 
    Section 5-70. The Coin-Operated Amusement Device and
Redemption Machine Tax Act is amended by changing Sections 4a,
10, and 14 as follows:
 
    (35 ILCS 510/4a)  (from Ch. 120, par. 481b.4a)
    Sec. 4a. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department of Revenue under this
Act, except that (1) paragraph (b) of Section 5-10 of the
Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2)
subparagraph (a)2 of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to forms
established by the Department for use under this Act, and (3)
the provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded and
not applicable to the Department under this Act to the extent
Section 10-45 applies to hearings not otherwise subject to the
Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 88-45.)
 
    (35 ILCS 510/10)  (from Ch. 120, par. 481b.10)
    Sec. 10. All final administrative decisions of the
Department of Revenue under any of the provisions of this Act
shall be subject to judicial review pursuant to the provisions
of the Administrative Review Law or the Illinois Independent
Tax Tribunal Act of 2012, as applicable, and any amendment and
modifications thereof, and the rules adopted relative thereto.
(Source: P.A. 82-783.)
 
    (35 ILCS 510/14)  (from Ch. 120, par. 481b.14)
    Sec. 14. After seizing any coin-in-the-slot-operated
amusement device, as provided in Section 13 of this Act, the
Department shall hold a hearing in the county where such
amusement device was seized and shall determine whether such
amusement device was being displayed in a manner which violates
any provision of this Act.
    The Department shall give not less than 7 days' notice of
the time and place of such hearing to the owner of such
amusement device if he is known, and also to the person in
whose possession the amusement device so taken was found, if
such person is known and if such person in possession is not
the owner of said amusement device.
    In case neither the owner nor the person in possession of
such amusement device is known, the Department shall cause
publication of the time and place of such hearing to be made at
least once in each week for 3 weeks successively in a newspaper
of general circulation in the county where such hearing is to
be held.
    If, as the result of such hearing, the Department shall
determine that the amusement device seized was, at the time of
seizure, being displayed in a manner which violates this Act,
the Department shall enter an order declaring such amusement
device confiscated and forfeited to the State, and to be sold
by the Department in the manner provided for hereinafter in
this Section. The Department shall give notice of such order to
the owner of such amusement device if he is known, and also to
the person in whose possession the amusement device so taken
was found, if such person is known and if such person in
possession is not the owner of such amusement device. In case
neither the owner nor the person in possession of such
amusement device is known, the Department shall cause
publication of such order to be made at least once in each week
for 3 weeks successively in a newspaper of general circulation
in the county where such hearing was held.
    The person from whom such amusement device has been seized
(or the owner of such device if that is a different person) may
redeem and reclaim such device by paying, to the Department,
within 30 days after the Department's order of confiscation and
forfeiture becomes final, an amount equal to twice the annual
tax applicable to such amusement device, plus a penalty of 10%.
    When any amusement device shall have been declared
forfeited to the State by the Department, as provided in this
Section, and when all proceedings for the judicial review of
the Department's decision have terminated, the Department
shall (if such amusement device is not redeemed and reclaimed
within the time and in the manner provided for in this
Section), to the extent that its decision is sustained on
review, sell such amusement device for the best price
obtainable and shall forthwith pay over the proceeds of such
sale to the State Treasurer; provided, however, that if the
value of the property to be sold at any one time shall be
$500.00 or more, such property shall be sold only to the
highest and best bidder on such terms and conditions and on
open competitive bidding after public advertisement, in such
manner and for such terms as the Department, by rule, may
prescribe.
    If no complaint for review, as provided in Section 10 of
this Act, has been filed within the time required by law the
Administrative Review Law, and if such amusement device is not
redeemed and reclaimed within the time and in the manner
provided for in this Section, the Department shall proceed to
sell said property for the best price obtainable and shall
forthwith pay over the proceeds of such sale to the State
Treasurer; provided, however, that if the value of the property
to be sold at any one time shall be $500.00 or more, such
property shall be sold only to the highest and best bidder on
such terms and conditions and on open competitive bidding after
public advertisement, in such manner and for such terms as the
Department, by rule, may prescribe.
(Source: P.A. 82-783.)
 
    Section 5-75. The Cannabis and Controlled Substances Tax
Act is amended by changing Sections 16, 25, and 26 as follows:
 
    (35 ILCS 520/16)  (from Ch. 120, par. 2166)
    Sec. 16. All assessments are Jeopardy Assessments - lien.
    (a) Assessment. An assessment for a dealer not possessing
valid stamps or other official indicia showing that the tax has
been paid shall be considered a jeopardy assessment or
collection, as provided by Section 1102 of the Illinois Income
Tax Act. The Department shall determine and assess a tax and
applicable penalties and interest according to the best
judgment and information available to the Department, which
amount so fixed by the Department shall be prima facie correct
and shall be prima facie evidence of the correctness of the
amount of tax due, as shown in such determination. When,
according to the best judgment and information available to the
Department with regard to all real and personal property and
rights to property of the dealer, there is no reasonable
expectation of collection of the amount of tax and penalty to
be assessed, the Department may issue an assessment under this
Section for the amount of tax without penalty.
    (b) Filing of Lien. Upon issuance of a jeopardy assessment
as provided by subsection (a) of this Section, the Department
may file a notice of jeopardy assessment lien in the office of
the recorder of the county in which any property of the
taxpayer may be located and shall notify the taxpayer of such
filing.
    (c) Protest. If the taxpayer believes that he does not owe
some or all of the amount for which the jeopardy assessment
lien against him has been filed, he may protest within 20 days
after being notified by the Department of the filing of such
jeopardy assessment lien and request a hearing, whereupon the
Department shall hold a hearing in conformity with the
provisions of Section 908 of the Illinois Income Tax Act and,
pursuant thereto, shall notify the taxpayer of its decision as
to whether or not such jeopardy assessment lien will be
released.
    After the expiration of the period within which the person
assessed may file an action for judicial review under the
Administrative Review Law without such action being filed, a
certified copy of the final assessment or revised final
assessment of the Department may be filed with the Circuit
Court of the county in which the dealer resides, or of Cook
County in the case of a dealer who does not reside in this
State, or in the county where the violation of this Act took
place. The certified copy of the final assessment or revised
final assessment shall be accompanied by a certification which
recites facts that are sufficient to show that the Department
complied with the jurisdictional requirements of the Act in
arriving at its final assessment or its revised final
assessment and that the dealer had this opportunity for an
administrative hearing and for judicial review, whether he
availed himself or herself of either or both of these
opportunities or not. If the court is satisfied that the
Department complied with the jurisdictional requirements of
the Act in arriving at its final assessment or its revised
final assessment and that the taxpayer had his opportunity for
an administrative hearing and for judicial review, whether he
availed himself of either or both of these opportunities or
not, the court shall render judgment in favor of the Department
and against the taxpayer for the amount shown to be due by the
final assessment or the revised final assessment, plus any
interest which may be due, and such judgment shall be entered
in the judgment docket of the court. Such judgment shall bear
the same rate of interest and shall have the same effect as
other judgments. The judgment may be enforced, and all laws
applicable to sales for the enforcement of a judgment shall be
applicable to sales made under such judgments. The Department
shall file the certified copy of its assessment, as herein
provided, with the Circuit Court within 2 years after such
assessment becomes final except when the taxpayer consents in
writing to an extension of such filing period, and except that
the time limitation period on the Department's right to file
the certified copy of its assessment with the Circuit Court
shall not run during any period of time in which the order of
any court has the effect of enjoining or restraining the
Department from filing such certified copy of its assessment
with the Circuit Court.
    If, when the cause of action for a proceeding in court
accrues against a person, he or she is out of the State, the
action may be commenced within the times herein limited, after
his or her coming into or returning to the State; and if, after
the cause of action accrues, he or she departs from and remains
out of the State, the time of his or her absence from the
State, the time of his or her absence is no part of the time
limited for the commencement of the action; but the foregoing
provisions concerning absence from the State shall not apply to
any case in which, at the time the cause of action accrues, the
party against whom the cause of action accrues is not a
resident of this State. The time within which a court action is
to be commenced by the Department hereunder shall not run from
the date the taxpayer files a petition in bankruptcy under the
Federal Bankruptcy Act until 30 days after notice of
termination or expiration of the automatic stay imposed by the
Federal Bankruptcy Act.
    No claim shall be filed against the estate of any deceased
person or any person under legal disability for any tax or
penalty or part of either, or interest, except in the manner
prescribed and within the time limited by the Probate Act of
1975, as amended.
    The collection of tax or penalty or interest by any means
provided for herein shall not be a bar to any prosecution under
this Act.
    In addition to any penalty provided for in this Act, any
amount of tax which is not paid when due shall bear interest at
the rate determined in accordance with the Uniform Penalty and
Interest Act, per month or fraction thereof from the date when
such tax becomes past due until such tax is paid or a judgment
therefor is obtained by the Department. If the time for making
or completing an audit of a taxpayer's books and records is
extended with the taxpayer's consent, at the request of and for
the convenience of the Department, beyond the date on which the
statute of limitations upon the issuance of a notice of tax
liability by the Department otherwise run, no interest shall
accrue during the period of such extension. Interest shall be
collected in the same manner and as part of the tax.
    If the Department determines that an amount of tax or
penalty or interest was incorrectly assessed, whether as the
result of a mistake of fact or an error of law, the Department
shall waive the amount of tax or penalty or interest that
accrued due to the incorrect assessment.
(Source: P.A. 90-655, eff. 7-30-98.)
 
    (35 ILCS 520/25)  (from Ch. 120, par. 2175)
    Sec. 25. Administrative Procedure Act - Application. The
Illinois Administrative Procedure Act is hereby expressly
adopted and shall apply to all administrative rules and
procedures of the Department of Revenue under this Act, except
that: (1) subsection (b) of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to final orders,
decisions and opinions of the Department; (2) paragraph 2 of
subsection (a) of Section 5-10 of the Illinois Administrative
Procedure Act does not apply to forms established by the
Department for use under this Act; and (3) the provisions of
Section 10-45 of the Illinois Administrative Procedure Act
regarding proposals for decision are excluded and not
applicable to the Department under this Act to the extent
Section 10-45 applies to hearings not otherwise subject to the
Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 88-45.)
 
    (35 ILCS 520/26)  (from Ch. 120, par. 2176)
    Sec. 26. Administrative Review. Except as otherwise
provided in this Section, the The provisions of the
Administrative Review Law, and the rules adopted pursuant
thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the
Department under this Act. The term "administrative decision"
is defined as in Section 3-101 of the Code of Civil Procedure.
The provisions of Section 12 of the Retailers' Occupation Tax
Act shall apply to dealers subject to this Act to the same
extent as if such provisions were included herein.
    Notwithstanding any other provision of law, the provisions
of the Illinois Independent Tax Tribunal Act of 2012, and the
rules adopted pursuant thereto, shall apply to and govern
judicial review of final administrative decisions that are
subject to the Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 86-380.)
 
    Section 5-80. The Gas Revenue Tax Act is amended by
changing Sections 8, 10, 12, and 12c as follows:
 
    (35 ILCS 615/8)  (from Ch. 120, par. 467.23)
    Sec. 8. For the purpose of administering and enforcing the
provisions of this Act, the Department or any officer or
employee of the Department designated, in writing, by the
Director thereof, may hold investigations and, except for those
matters reserved to the Illinois Independent Tax Tribunal, may
hold hearings concerning any matters covered by this Act and
may examine any books, papers, records or memoranda bearing
upon the business transacted by any such taxpayer and may
require the attendance of such taxpayer or any officer or
employee of such taxpayer, or of any person having knowledge of
such business, and may take testimony and require proof for its
information. In the conduct of any investigation or hearing,
neither the Department nor any officer or employee thereof
shall be bound by the technical rules of evidence, and no
informality in any proceeding, or in the manner of taking
testimony, shall invalidate any order, decision, rule or
regulation made or approved or confirmed by the Department. The
Director or any officer or employee thereof shall have power to
administer oaths to any such persons. The books, papers,
records, and memoranda of the Department, or parts thereof, may
be proved in any hearing, investigation or legal proceeding by
a reproduced copy thereof under the certificate of the
Director. Such reproduced copy shall, without further proof, be
admitted into evidence before the Department or in any legal
proceeding.
(Source: Laws 1965, p. 198.)
 
    (35 ILCS 615/10)  (from Ch. 120, par. 467.25)
    Sec. 10. The Department or any officer or employee of the
Department designated, in writing, by the Director thereof,
shall at its or his or her own instance, or on the written
request of any party to the proceeding, issue subpoenas
requiring the attendance of and the giving of testimony by
witnesses, and subpoenas duces tecum requiring the production
of books, papers, records or memoranda. All subpoenas issued
under this Act may be served by any person of full age. The
fees of witnesses for attendance and travel shall be the same
as the fees of witnesses before the circuit court of this
State; such fees to be paid when the witness is excused from
further attendance. When the witness is subpoenaed at the
instance of the Department or any officer or employee thereof,
such fees shall be paid in the same manner as other expenses of
the Department, and when the witness is subpoenaed at the
instance of any taxpayer to any such proceeding the Department
may require that the cost of service of the subpoena and the
fee of the witness be borne by the taxpayer at whose instance
the witness is summoned. In such case, the Department, in its
discretion, may require a deposit to cover the cost of such
service and witness fees. A subpoena issued as aforesaid shall
be served in the same manner as a subpoena issued out of a
court.
    Any circuit court of this State, upon the application of
the Department or any officer or employee thereof may, in its
discretion, compel the attendance of witnesses, the production
of books, papers, records or memoranda and the giving of
testimony before the Department or any officer or employee
thereof conducting an investigation or holding a hearing
authorized by this Act, by an attachment for contempt, or
otherwise, in the same manner as production of evidence may be
compelled before the court.
    The Department or any officer or employee thereof, or any
party in an investigation or hearing before the Department, may
cause the depositions of witnesses residing within or without
the State to be taken in the manner prescribed by law for like
depositions in civil actions in courts of this State, and, to
that end, compel the attendance of witnesses and the production
of books, papers, records or memoranda.
    Notwithstanding any other provision of law, the provisions
of the Illinois Independent Tax Tribunal Act of 2012, and the
rules adopted pursuant thereto, shall apply to and govern
judicial review of final administrative decisions that are
subject to the Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 83-334.)
 
    (35 ILCS 615/12)  (from Ch. 120, par. 467.27)
    Sec. 12. The Circuit Court of the county wherein a hearing
is held shall have power to review all final administrative
decisions of the Department in administering the provisions of
this Act: Provided that if the administrative proceeding which
is to be reviewed judicially is a claim for refund proceeding
commenced in accordance with Section 6 of this Act and Section
2a of "An Act in relation to the payment and disposition of
moneys received by officers and employees of the State of
Illinois by virtue of their office or employment", approved
June 9, 1911, as amended, the Circuit Court having jurisdiction
of the action for judicial review under this Section and under
the Administrative Review Law, as amended, shall be the same
court that entered the temporary restraining order or
preliminary injunction which is provided for in Section 2a of
"An Act in relation to the payment and disposition of moneys
received by officers and employees of the State of Illinois by
virtue of their office or employment", and which enables such
claim proceeding to be processed and disposed of as a claim for
refund proceeding rather than as a claim for credit proceeding.
    Except as otherwise provided in this Section, the The
provisions of the Administrative Review Law, and the rules
adopted pursuant thereto, shall apply to and govern all
proceedings for the judicial review of final administrative
decisions of the Department hereunder. The term
"administrative decision" is defined as in Section 3-101 of the
Code of Civil Procedure.
    Notwithstanding any other provision of law, the provisions
of the Illinois Independent Tax Tribunal Act of 2012, and the
rules adopted pursuant thereto, shall apply to and govern
judicial review of final administrative decisions that are
subject to the Illinois Independent Tax Tribunal Act of 2012.
    Service upon the Director or Assistant Director of the
Department of Revenue of summons issued in any action to review
a final administrative decision shall be service upon the
Department. The Department shall certify the record of its
proceedings if the taxpayer shall pay to it the sum of 75 per
page of testimony taken before the Department and 25 per page
of all other matters contained in such record, except that
these charges may be waived where the Department is satisfied
that the aggrieved party is a poor person who cannot afford to
pay such charges.
(Source: P.A. 83-342.)
 
    (35 ILCS 615/12c)  (from Ch. 120, par. 467.27c)
    Sec. 12c. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department of Revenue under this
Act, except that (1) paragraph (b) of Section 5-10 of the
Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2)
subparagraph (a)2 of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to forms
established by the Department for use under this Act, and (3)
the provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded and
not applicable to the Department under this Act to the extent
Section 10-45 applies to hearings not otherwise subject to the
Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 88-45.)
 
    Section 5-85. The Public Utilities Revenue Act is amended
by changing Sections 8, 12, and 12a as follows:
 
    (35 ILCS 620/8)  (from Ch. 120, par. 475)
    Sec. 8. For the purpose of administering and enforcing the
provisions of this Act, the Department or any officer or
employee of the Department designated, in writing, by the
Director thereof, may hold investigations and, except for those
matters reserved to the Illinois Independent Tax Tribunal, may
hold hearings concerning any matters covered by this Act and
may examine any books, papers, records or memoranda bearing
upon the business transacted by any such taxpayer and may
require the attendance of such taxpayer or any officer or
employee of such taxpayer, or of any person having knowledge of
such business, and may take testimony and require proof for its
information. In the conduct of any investigation or hearing,
neither the Department nor any officer or employee thereof
shall be bound by the technical rules of evidence, and no
informality in any proceeding, or in the manner of taking
testimony, shall invalidate any order, decision, rule or
regulation made or approved or confirmed by the Department. The
Director or any officer or employee thereof shall have power to
administer oaths to any such persons. The books, papers,
records and memoranda of the Department, or parts thereof, may
be proved in any hearing, investigation, or legal proceeding by
a reproduced copy thereof under the certificate of the
Director. Such reproduced copy shall, without further proof, be
admitted into evidence before the Department or in any legal
proceeding.
(Source: Laws 1965, p. 199.)
 
    (35 ILCS 620/12)  (from Ch. 120, par. 479)
    Sec. 12. The Department may make, promulgate and enforce
such reasonable rules and regulations relating to the
administration and enforcement of this Act as may be deemed
expedient.
    Whenever notice to a taxpayer is required by this Act, such
notice may be given by United States certified or registered
mail, addressed to the taxpayer concerned at his or her last
known address, and proof of such mailing shall be sufficient
for the purposes of this Act. In the case of a notice of
hearing, such notice shall be mailed not less than 7 days prior
to the day fixed for the hearing.
    All hearings provided for in this Act with respect to a
taxpayer having his or her principal place of business in any
of the several counties of this State shall be held in the
county wherein the taxpayer has his or her principal place of
business. If the taxpayer does not have his or her principal
place of business in this State, such hearings shall be held in
Sangamon County.
    Notwithstanding any other provision of law, all hearings
held before the Illinois Independent Tax Tribunal shall be held
in accordance with the Illinois Independent Tax Tribunal Act of
2012.
    Except with respect to matters under the jurisdiction of
the Illinois Independent Tax Tribunal, the The Circuit Court of
the county wherein a hearing is held shall have power to review
all final administrative decisions of the Department in
administering this Act. If, however, the administrative
proceeding which is to be reviewed judicially is a claim for
refund proceeding commenced in accordance with Section 6 of
this Act and Section 2a of "An Act in relation to the payment
and disposition of moneys received by officers and employees of
the State of Illinois by virtue of their office or employment",
approved June 9, 1911, as amended, the Circuit Court having
jurisdiction of the action for judicial review under this
Section and under the Administrative Review Law, as amended,
shall be the same court that entered the temporary restraining
order or preliminary injunction which is provided for in
Section 2a of "An Act in relation to the payment and
disposition of moneys received by officers and employees of the
State of Illinois by virtue of their office or employment", and
which enables such claim proceeding to be processed and
disposed of as a claim for refund proceeding rather than as a
claim for credit proceeding.
    Except as otherwise provided in this Section, the The
provisions of the Administrative Review Law, and the rules
adopted pursuant thereto, shall apply to and govern all
proceedings for the judicial review of final administrative
decisions of the Department under this Act. The term
"administrative decision" is defined as in Section 3-101 of the
Code of Civil Procedure.
    Notwithstanding any other provision of law, the provisions
of the Illinois Independent Tax Tribunal Act of 2012, and the
rules adopted pursuant thereto, shall apply to and govern
judicial review of final administrative decisions that are
subject to the Illinois Independent Tax Tribunal Act of 2012.
    Service upon the Director or Assistant Director of the
Department of Revenue of summons issued in any action to review
a final administrative decision is service upon the Department.
The Department shall certify the record of its proceedings if
the taxpayer pays to it the sum of 75 per page of testimony
taken before the Department and 25 per page of all other
matters contained in such record, except that these charges may
be waived where the Department is satisfied that the aggrieved
party is a poor person who cannot afford to pay such charges.
    Whenever any proceeding provided by this Act is begun by
the Department or by a person subject thereto and such person
thereafter dies or becomes a person under legal disability
before such proceeding is concluded, the legal representative
of the deceased or the person under legal disability shall
notify the Department of such death or legal disability. Such
legal representative, as such, shall then be substituted by the
Department for such person. Within 20 days after notice to the
legal representative of the time fixed for that purpose, the
proceeding may go forward in all respects and with like effect
as though the person had not died or become a person under
legal disability.
(Source: P.A. 83-342.)
 
    (35 ILCS 620/12a)  (from Ch. 120, par. 479a)
    Sec. 12a. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department of Revenue under this
Act, except that (1) paragraph (b) of Section 5-10 of the
Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2)
subparagraph (a)2 of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to forms
established by the Department for use under this Act, and (3)
the provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded and
not applicable to the Department under this Act to the extent
Section 10-45 applies to hearings not otherwise subject to the
Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 88-45.)
 
    Section 5-90. The Water Company Invested Capital Tax Act is
amended by changing Sections 8, 10, 12, and 14 as follows:
 
    (35 ILCS 625/8)  (from Ch. 120, par. 1418)
    Sec. 8. For the purpose of administering and enforcing the
provisions of this Act, the Department or any officer or
employee of the Department designated, in writing, by the
Director thereof, may hold investigations and, except for those
matters reserved to the Illinois Independent Tax Tribunal, may
hold hearings concerning any matters covered by this Act and
may examine any books, papers, records or memoranda bearing
upon the business transacted by any such taxpayer and may
require the attendance of such taxpayer or any officer or
employee of such taxpayer, or of any person having knowledge of
such business, and may take testimony and require proof for its
information. In the conduct of any investigation or hearing,
neither the Department nor any officer or employee thereof
shall be bound by the technical rules of evidence, and no
informality in any proceeding, or in the manner of taking
testimony, shall invalidate any order, decision, rule or
regulation made or approved or confirmed by the Department. The
Director or any officer or employee thereof shall have power to
administer oaths to any such persons. The books, papers,
records and memoranda of the Department, or parts thereof, may
be proved in any hearing, investigation, or legal proceeding by
a reproduced copy thereof under the certificate of the
Director. Such reproduced copy shall, without further proof, be
admitted into evidence before the Department or in any legal
proceeding.
(Source: P.A. 82-274.)
 
    (35 ILCS 625/10)  (from Ch. 120, par. 1420)
    Sec. 10. The Department or any officer or employee of the
Department designated, in writing, by the Director thereof,
shall at its or his own instance, or on the written request of
any party to the proceeding, issue subpoenas requiring the
attendance of and the giving of testimony by witnesses, and
subpoenas duces tecum requiring the production of books,
papers, records or memoranda. All subpoenas issued under this
Act may be served by any person of full age. The fees of
witnesses for attendance and travel shall be the same as the
fees of witnesses before the Circuit Court of this State; such
fees are to be paid when the witness is excused from further
attendance. When the witness is subpoenaed at the instance of
the Department or any officer or employee thereof, such fees
shall be paid in the same manner as other expenses of the
Department, and when the witness is subpoenaed at the instance
of any taxpayer to any such proceeding the Department may
require that the cost of service of the subpoena and the fee of
the witness be borne by the taxpayer at whose instance the
witness is summoned. In such case, the Department, in its
discretion, may require a deposit to cover the cost of such
service and witness fees. A subpoena issued as aforesaid shall
be served in the same manner as a subpoena issued out of a
court.
    Any Circuit Court of this State, or any judge thereof, upon
the application of the Department or any officer or employee
thereof may, in its or his discretion, compel the attendance of
witnesses, the production of books, papers, records or
memoranda and the giving of testimony before the Department or
any officer or employee thereof conducting an investigation or
holding a hearing authorized by this Act, by an attachment for
contempt, or otherwise, in the same manner as production of
evidence may be compelled before the court.
    The Department or any officer or employee thereof, or any
party in an investigation or hearing before the Department, may
cause the depositions of witnesses residing within or without
the State to be taken in the manner prescribed by law for like
depositions in civil actions in courts of this State, and, to
that end, compel the attendance of witnesses and the production
of books, papers, records or memoranda.
    Hearings before the Illinois Independent Tax Tribunal
shall be conducted pursuant to the provisions of the Illinois
Independent Tax Tribunal Act of 2012.
(Source: P.A. 82-274.)
 
    (35 ILCS 625/12)  (from Ch. 120, par. 1422)
    Sec. 12. Except as otherwise provided in this Section with
respect to the Illinois Independent Tax Tribunal, the The
Circuit Court of the county wherein a hearing is held shall
have power to review all final administrative decisions of the
Department in administering this Act. If, however, the
administrative proceeding which is to be reviewed judicially is
a claim for refund proceeding commenced in accordance with
Section 6 of this Act and Section 2a of "An Act in relation to
the payment and disposition of moneys received by officers and
employees of the State of Illinois by virtue of their office or
employment", approved June 9, 1911, as amended, the Circuit
Court having jurisdiction of the action for judicial review
under this Section and under the Administrative Review Law
shall be the same court that entered the injunctive order which
is provided for in Section 2a of "An Act in relation to the
payment and disposition of moneys received by officers and
employees of the State of Illinois by virtue of their office or
employment", and which enables such claim proceeding to be
processed and disposed of as a claim for refund proceeding
rather than as a claim for credit proceeding.
    Except as otherwise provided in this Section with respect
to the Illinois Independent Tax Tribunal, the The provisions of
the Administrative Review Law, as amended, and the rules
adopted pursuant thereto, shall apply to and govern all
proceedings for the judicial review of final administrative
decisions of the Department under this Act. The term
"administrative decision" is defined as in Section 3-101 of the
Code of Civil Procedure, approved August 19, 1981, as amended.
    The provisions of the Illinois Independent Tax Tribunal Act
of 2012, and the rules adopted pursuant thereto, shall apply to
and govern all proceedings for the judicial review of final
administrative decisions of the Department that are subject to
the jurisdiction of the Illinois Independent Tax Tribunal.
    Service upon the Director or Assistant Director of the
Department of Revenue of summons issued in any action to review
a final administrative decision is service upon the Department.
The Department shall certify the record of its proceedings if
the taxpayer pays to it the sum of 75 per page of testimony
taken before the Department and 25 per page of all other
matters contained in such record, except that these charges may
be waived where the Department is satisfied that the aggrieved
party is a poor person who cannot afford to pay such charges.
(Source: P.A. 84-548.)
 
    (35 ILCS 625/14)  (from Ch. 120, par. 1424)
    Sec. 14. The Illinois Administrative Procedure Act, as now
or hereafter amended, is hereby expressly adopted and shall
apply to all administrative rules and procedures of the
Department of Revenue under this Act, except that (1) paragraph
(b) of Section 5-10 of the that Act does not apply to final
orders, decisions and opinions of the Department; (2)
subparagraph 2 of paragraph (a) of Section 5-10 of that Act
does not apply to forms established by the Department for use
under this Act; and (3) the provisions of Section 10-45 of that
Act regarding proposals for decision are excluded and not
applicable to the Department under this Act to the extent
Section 10-45 applies to hearings not otherwise subject to the
Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 88-45.)
 
    Section 5-100. The Telecommunications Excise Tax Act is
amended by changing Sections 12, 16, and 18 as follows:
 
    (35 ILCS 630/12)  (from Ch. 120, par. 2012)
    Sec. 12. For the purpose of administering and enforcing the
provisions of this Article, the Department or any officer or
employee of the Department designated, in writing, by the
Director thereof, may hold investigations and, except for
matters otherwise reserved to the Illinois Independent Tax
Tribunal, may hold hearings concerning any matters covered by
this Article and may examine any books, papers, records or
memoranda bearing upon the business transacted or purchased by
any such retailer or taxpayer and may require the attendance of
such retailer or taxpayer or any officer or employee of such,
or of any person having knowledge of such business, and may
take testimony and require proof of its information. In the
conduct of any investigation or hearing, neither the Department
nor any officer or employee thereof shall be bound by the
technical rules of evidence, and no informality in any
proceeding, or in the manner of taking testimony, shall
invalidate any order, decision, rule or regulation made or
approved or confirmed by the Department. The Director or any
officer or employee thereof shall have power to administer
oaths to any such persons. The books, papers, records and
memoranda of the Department, or parts thereof, may be provided
in any hearing, investigation or legal proceeding by a
reproduced copy thereof under the certificate of the Director.
Such reproduced copy shall, without further proof, be admitted
into evidence before the Department or in any legal proceeding.
(Source: P.A. 84-126.)
 
    (35 ILCS 630/16)  (from Ch. 120, par. 2016)
    Sec. 16. Except as otherwise provided in this Section with
respect to the Illinois Independent Tax Tribunal, the The
circuit court of any county wherein a hearing is held shall
have power to review all final administrative decisions of the
Department in administering the provision of this Article:
Provided that if the administrative proceeding which is to be
reviewed judicially is a claim for refund proceeding commenced
under this Article and Section 2a of "An Act in relation to the
payment and disposition of moneys received by officers and
employees of the State of Illinois by virtue of their office or
employment", approved June 9, 1911, as amended, the circuit
court having jurisdiction of the action for judicial review
under this Section and under the Administrative Review Law
shall be the same court that entered the temporary restraining
order or preliminary injunction which is provided for in
Section 2a of "An Act in relation to the payment and
disposition of moneys received by officers and employees of the
State of Illinois by virtue of their office or employment", and
which enables such claim proceeding to be processed and
disposed of as a claim for refund proceeding rather than as a
claim for credit proceeding.
    Except as otherwise provided in this Section with respect
to the Illinois Independent Tax Tribunal, the The provisions of
the Administrative Review Law, and the rules adopted pursuant
thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the
Department hereunder. The term "administrative decision" is
defined as in Section 3-101 of the Code of Civil Procedure.
    The provisions of the Illinois Independent Tax Tribunal Act
of 2012, and the rules adopted pursuant thereto, shall apply to
and govern all proceedings for the judicial review of final
administrative decisions of the Department that are subject to
the jurisdiction of the Illinois Independent Tax Tribunal.
    Service upon the Director or Assistant Director of the
Department of Revenue of summons issued in any action to review
a final administrative decision shall be service upon the
Department. The Department shall certify the record of its
proceedings if the taxpayer shall pay to it the sum of 75 per
page of testimony taken before the Department and 25 per page
of all other matters contained in such record, except that
these charges may be waived where the Department is satisfied
that the aggrieved party is a poor person who cannot afford to
pay such charges.
(Source: P.A. 84-126.)
 
    (35 ILCS 630/18)  (from Ch. 120, par. 2018)
    Sec. 18. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department of Revenue under this
Article, except that: (1) paragraph (b) of Section 5-10 of the
Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department; (2)
subparagraph (a)(2) of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to forms
established by the Department for use under this Article; and
(3) the provisions of Section 10-45 of the Illinois
Administrative Procedure Act regarding proposals for decision
are excluded and not applicable to the Department under this
Article to the extent Section 10-45 applies to hearings not
otherwise subject to the Illinois Independent Tax Tribunal Act
of 2012.
(Source: P.A. 88-45.)
 
    Section 5-105. The Telecommunications Infrastructure
Maintenance Fee Act is amended by changing Sections 27.10,
27.30, and 27.40 as follows:
 
    (35 ILCS 635/27.10)
    Sec. 27.10. Investigations and hearings. For the purpose of
administering and enforcing the provisions of this Act, the
Department or any officer or employee of the Department
designated, in writing, by the Director thereof, may hold
investigations and, except for matters otherwise reserved to
the Illinois Independent Tax Tribunal, may hold hearings
concerning any matters covered by this Act and may examine any
books, papers, records, or memoranda bearing upon the business
transacted by any such telecommunications retailer and may
require the attendance of such telecommunications retailer or
any officer or employee of such telecommunications retailer, or
of any person having knowledge of such business, and may take
testimony and require proof for its information. In the conduct
of any investigation or hearing, neither the Department nor any
officer or employee thereof shall be bound by the technical
rules of evidence, and no informality in any proceeding, or in
the manner of taking testimony, shall invalidate any order,
decision, rule, or regulation made, approved, or confirmed by
the Department. The Director or any officer or employee thereof
shall have power to administer oaths to any such persons. The
books, papers, records, and memoranda of the Department, or
parts thereof, may be proved in any hearing, investigation, or
legal proceeding by a reproduced copy thereof under the
certificate of the Director. Such reproduced copy shall without
further proof, be admitted into evidence before the Department
or in any legal proceeding.
(Source: P.A. 90-562, eff. 12-16-97.)
 
    (35 ILCS 635/27.30)
    Sec. 27.30. Review under Administrative Review Law. The
Circuit Court of the county wherein a hearing is held shall
have power to review all final administrative decisions of the
Department in administering the provisions of this Act:
Provided that if the administrative proceeding that is to be
reviewed judicially is a claim for refund proceeding commenced
in accordance with this Act and Section 2a of the State
Officers and Employees Money Disposition Act, the Circuit Court
having jurisdiction of the action for judicial review under
this Section and under the Administrative Review Law shall be
the same court that entered the temporary restraining order or
preliminary injunction that is provided for in Section 2a of
the State Officers and Employees Money Disposition Act and that
enables such claim proceeding to be processed and disposed of
as a claim for refund proceeding rather than as a claim for
credit proceeding.
    Except as otherwise provided in this Section with respect
to the Illinois Independent Tax Tribunal, the The provisions of
the Administrative Review Law, and the rules adopted pursuant
thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the
Department hereunder. The term "administrative decision" is
defined as in Section 3-101 of the Code of Civil Procedure.
    The provisions of the Illinois Independent Tax Tribunal
Act, and the rules adopted pursuant thereto, shall apply to and
govern all proceedings for the judicial review of final
administrative decisions of the Department that are subject to
the jurisdiction of the Illinois Independent Tax Tribunal.
    Service upon the Director or Assistant Director of the
Department of Revenue of summons issued in any action to review
a final administrative decision shall be service upon the
Department. The Department shall certify the record of its
proceedings if the telecommunications retailer shall pay to it
the sum of 75 per page of testimony taken before the
Department and 25 per page of all other matters contained in
such record, except that these charges may be waived where the
Department is satisfied that the aggrieved party is a poor
person who cannot afford to pay such charges.
(Source: P.A. 90-562, eff. 12-16-97.)
 
    (35 ILCS 635/27.40)
    Sec. 27.40. Application of Illinois Administrative
Procedure Act. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department of Revenue under this
Act, except that (i) paragraph (b) of Section 5-10 of the
Administrative Procedure Act does not apply to final orders,
decisions, and opinions of the Department, (ii) subparagraph
(a)(ii) of Section 5-10 of the Administrative Procedure Act
does not apply to forms established by the Department for use
under this Act, and (iii) the provisions of Section 10-45 of
the Administrative Procedure Act regarding proposals for
decision are excluded and not applicable to the Department
under this Act to the extent Section 10-45 applies to hearings
not otherwise subject to the Illinois Independent Tax Tribunal
Act.
(Source: P.A. 90-562, eff. 12-16-97.)
 
    Section 5-110. The Electricity Excise Tax Law is amended by
changing Sections 2-14 and 2-15 as follows:
 
    (35 ILCS 640/2-14)
    Sec. 2-14. Rules and regulations; hearing; review under
Administrative Review Law; death or incompetency of party. The
Department may make, promulgate and enforce such reasonable
rules and regulations relating to the administration and
enforcement of this Law as may be deemed expedient.
    Whenever notice to a purchaser or to a delivering supplier
is required by this Law, such notice may be personally served
or given by United States certified or registered mail,
addressed to the purchaser or delivering supplier concerned at
his or her last known address, and proof of such mailing shall
be sufficient for the purposes of this Law. In the case of a
notice of hearing, the notice shall be mailed not less than 21
days prior to the date fixed for the hearing.
    All hearings provided for in this Law with respect to a
purchaser or to a delivering supplier having its principal
address or principal place of business in any of the several
counties of this State shall be held in the county wherein the
purchaser or delivering supplier has its principal address or
principal place of business. If the purchaser or delivering
supplier does not have its principal address or principal place
of business in this State, such hearings shall be held in
Sangamon County. Except as otherwise provided in this Section
with respect to the Illinois Independent Tax Tribunal, the The
Circuit Court of any county wherein a hearing is held shall
have power to review all final administrative decisions of the
Department in administering the provisions of this Law. If,
however, the administrative proceeding which is to be reviewed
judicially is a claim for refund proceeding commenced in
accordance with this Law and Section 2a of the State Officers
and Employees Money Disposition Act, the Circuit Court having
jurisdiction of the action for judicial review under this
Section and under the Administrative Review Law shall be the
same court that entered the temporary restraining order or
preliminary injunction which is provided for in Section 2a of
the State Officers and Employees Money Disposition Act and
which enables such claim proceeding to be processed and
disposed of as a claim for refund proceeding rather than as a
claim for credit proceeding.
    Except as otherwise provided with respect to the Illinois
Independent Tax Tribunal, the The provisions of the
Administrative Review Law, and the rules adopted pursuant
thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the
Department hereunder. The term "administrative decision" is
defined as in Section 3-101 of the Code of Civil Procedure.
    The provisions of the Illinois Independent Tax Tribunal
Act, and the rules adopted pursuant thereto, shall apply to and
govern all proceedings for the judicial review of final
administrative decisions of the Department that are subject to
the jurisdiction of the Illinois Independent Tax Tribunal.
    Service upon the Director or Assistant Director of the
Department of Revenue of summons issued in any action to review
a final administrative decision is service upon the Department.
The Department shall certify the record of its proceedings if
the person commencing such action shall pay to it the sum of 75
cents per page of testimony taken before the Department and 25
cents per page of all other matters contained in such record,
except that these charges may be waived where the Department is
satisfied that the aggrieved party is a poor person who cannot
afford to pay such charges.
    Whenever any proceeding provided by this Law has been begun
by the Department or by a person subject thereto and such
person thereafter dies or becomes a person under legal
disability before the proceeding has been concluded, the legal
representative of the deceased person or a person under legal
disability shall notify the Department of such death or legal
disability. The legal representative, as such, shall then be
substituted by the Department in place of and for the person.
    Within 20 days after notice to the legal representative of
the time fixed for that purpose, the proceeding may proceed in
all respects and with like effect as though the person had not
died or become a person under legal disability.
(Source: P.A. 90-561, eff. 8-1-98.)
 
    (35 ILCS 640/2-15)
    Sec. 2-15. Illinois Administrative Procedure Act;
application. The Illinois Administrative Procedure Act is
hereby expressly adopted and shall apply to all administrative
rules and procedures of the Department under this Law, except
that: (1) paragraph (b) of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to final orders,
decisions and opinions of the Department, (2) subparagraph
(a)(ii) of Section 5-10 of the Illinois Administrative
Procedure Act does not apply to forms established by the
Department for use under this Law, and (3) the provisions of
Section 10-45 of the Illinois Administrative Procedure Act
regarding proposals for decision are excluded and not
applicable to the Department under this Law to the extent
Section 10-45 applies to hearings not otherwise subject to the
Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 90-561, eff. 8-1-98.)
 
    Section 5-115. The Uniform Penalty and Interest Act is
amended by changing Section 3-12 as follows:
 
    (35 ILCS 735/3-12)
    Sec. 3-12. Appeal options. The Department of Revenue shall
include a statement of the appeal options available to the
taxpayer, either by law or by departmental rule, for each
penalty for late payment, penalty for failure to file a tax
return on or before the due date for filing, and penalty for
failure to file correct information returns. This Act is
subject to the provisions of the Illinois Independent Tax
Tribunal Act of 2012.
(Source: P.A. 89-597, eff. 1-1-97.)
 
    Section 5-120. The State Finance Act is amended by adding
Section 5.811 as follows:
 
    (30 ILCS 105/5.811 new)
    Sec. 5.811. The Illinois Independent Tax Tribunal Fund.
 
    (35 ILCS 1005/Act rep.)
    Section 5-125. The Illinois Independent Tax Tribunal Act is
repealed.
 
Article 97. INSEVERABILITY

 
    Section 97-997. Inseverability. The provisions of this Act
are mutually dependent and inseverable. If any provision is
held invalid, then the entire Act, including all new and
amendatory provisions, is invalid.
 
Article 99. EFFECTIVE DATE

 
    Section 99-999. Effective date. This Act takes effect upon
becoming law.