2023 Illinois Compiled Statutes › Chapter 35 - REVENUE › 35 ILCS 5/ - Illinois Income Tax Act. › Article 14 - Miscellaneous Provisions

(35 ILCS 5/Art. 14 heading)
ARTICLE 14.  
		MISCELLANEOUS PROVISIONS.
(35 ILCS 5/1401) (from Ch. 120, par. 14-1401)
Sec. 1401. 
		Promulgation of Rules and Regulations.
(a) In general.  The Department is authorized to make, promulgate and enforce
such reasonable rules and regulations, and to prescribe such forms, relating to
the administration and enforcement of the provisions of this Act, as it may
deem appropriate.
(b) Group administration for taxpayers that are members of a unitary
business group.
(1) For taxable years ending before December 31,     1993, the Department shall make, promulgate and enforce such reasonable rules and regulations, and prescribe such forms as it may deem appropriate, to permit all of the taxpayers that are corporations (other than Subchapter S corporations) having the same taxable year and that are members of the same unitary business group to elect to be treated as one taxpayer for purposes of any original return, amended return which includes the same taxpayers of the unitary group which joined in the election to file the original return, extension, claim for refund, assessment, collection and payment and determination of the group's tax liability under this Act. For taxable years ending on or after December 31, 1987, corporate members (other than Subchapter S corporations) of the same unitary business group making an election to be treated as one taxpayer are not required to have the same taxable year. The rules, regulations and forms promulgated under this subsection (b) shall not permit the election to be made for some, but not all, of the purposes enumerated above.
(2) For taxable years ending on or after December 31,     1993, the Department shall make, promulgate and enforce such reasonable rules and regulations, and prescribe such forms as it may deem appropriate, to require all taxpayers that are corporations (other than Subchapter S corporations) and that are members of the same unitary business groups to be treated as one taxpayer for purposes of any original return, amended return, which includes the same taxpayers of the unitary group which joined in filing the original return, extension, claim for refund, assessment, collection and payment and determination of the group's tax liability under this Act.
(c) Offset among taxpayers that are members of a unitary business group.
For taxable years for which returns were filed prior to the applicable
date of Section 502(f), the Department shall make, promulgate and enforce
such reasonable rules and regulations, and prescribe such forms as it may
deem appropriate, to permit a taxpayer that is a member of a unitary
business group to elect, within the applicable period of limitation as
provided in Section 911, to credit any overpayment due the taxpayer for a
taxable year against the liability for the same taxable year of one or more
other taxpayers that are members of the same unitary business group for
that taxable year, except that when an audit has been conducted by the
Department, overpayments determined by the Department to be due a taxpayer
may be credited against the liability of one or more other members of the
same unitary group for any year within the period covered by the audit.
Such regulations shall include rules which provide that the amount of the
overpayment taken as a credit by a taxpayer under this Section shall be
treated, for all purposes under this Act, as having been paid by such
taxpayer at the time such payment was made.
(Source: P.A. 88-195.)
(35 ILCS 5/1402) (from Ch. 120, par. 14-1402)
Sec. 1402. Notice. 
Whenever notice is required by this Act, such notice may, if not
otherwise provided, be given or issued by mailing it by first-class mail addressed to the person concerned at his last known address.
Notice to a person who is under a legal disability or deceased, shall be
mailed to his last known address or, if the Department has received notice
of the existence of a fiduciary for such person or his estate, to such
fiduciary.
(Source: P.A. 97-507, eff. 8-23-11.)
(35 ILCS 5/1403) (from Ch. 120, par. 14-1403)
Sec. 1403. 
		Substitution of Parties. 
		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
of the 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 for such person. If the legal representative fails to
notify the Department of his 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 under legal disability.
(Source: P.A. 83-706.)
(35 ILCS 5/1404) (from Ch. 120, par. 14-1404)
Sec. 1404. 
		
		Appointment of Secretary of State as Agent for Service of
Process.
(a)  In general.  Any person who incurs tax liability under this Act, and
who removes from this State or conceals his whereabouts, shall be deemed
thereby to appoint the Secretary of State of Illinois his agent for service
of process or notice in any judicial or administrative proceeding under
this Act.  Such process or notice shall be served by the Department on the
Secretary of State by leaving, at the office of the Secretary of State at
least 15 days before the return day of such process or notice, a true and
certified copy thereof, and by sending to the taxpayer by registered or
certified mail, a like and true certified copy with an endorsement thereon
of the service upon said Secretary of State, addressed to such taxpayer
at his last known address.
(b) Validity.  Service of process or notice in the manner and under the
circumstances provided in this section, shall be of the same force and validity
as if served upon the taxpayer personally within this State.  Proof of such
service upon the taxpayer in this State through the Secretary of State,
his agent, and by mailing to the last known address of the taxpayer may
be made in such judicial or administrative proceeding by the affidavit of
the Director, or by his duly authorized representative who made such service,
with a copy of the process or notice that was so served attached to such affidavit.
(Source: P.A. 76-261.)
(35 ILCS 5/1405) (from Ch. 120, par. 14-1405)
Sec. 1405. 
		Transferees. 
		The liability of a transferee of property of a taxpayer for any tax,
penalty or interest due the Department under this Act, shall be
assessed, paid and collected in the same manner and subject to the same
provisions as in the case of the tax to which the
liability relates, except that the period of limitations for the issuance
of a notice of deficiency with respect to such liability shall be as provided
in Section 905 (m). The term "transferee" includes donee, heir, legatee
and distributee and bulk purchasers under Section 902 (d).
(Source: P.A. 84-1308.)
(35 ILCS 5/1405.1) (from Ch. 120, par. 14-1405.1)
Sec. 1405.1. 
		Information Reports:
(a) Rents and royalties. Any person maintaining an office or transacting
business in Illinois and required under Sections 6041 and 6050N of the Internal
Revenue Code of 1986 to report to the U.S. Secretary of the Treasury payments
made to another person shall not also be required to file with the
Department copies of
those
reports. The person shall maintain, in a format available for review by the
Department, copies of the reports that include a payment of $1,000 or
more which is, in whole or part, for
one or more of the following:
(1) rents and royalties for real property located in     Illinois;
(2) rents and royalties for tangible personal     property if the tangible personal property was physically located in Illinois at any time during the rental period;
(3) royalties paid on a patent which is employed in     production, fabrication, manufacturing, or other processing in Illinois;
(4) royalties paid on a patented product which is     produced in Illinois; and
(5) royalties paid on a copyright to compensate the     holder of the copyright for printing or other publication which originates in Illinois.
(b) The Department of Revenue shall obtain from the United States
Agricultural Stabilization and Conservation Service and the Illinois Department
of Agriculture a list of non-resident owners of record of Illinois farmland.
The Department of Revenue shall utilize this list for the purpose of aiding the
Department in determining the Illinois tax liability under this Act of such
non-resident owners.
(Source: P.A. 89-399, eff. 8-20-95.)
(35 ILCS 5/1405.2) (from Ch. 120, par. 14-1405.2)
Sec. 1405.2. 
		
		Information reports for payments made under contracts for
personal services:
(a) Payments made on or after January 1, 1989, under contracts for
personal services.  Any person maintaining an office or transacting
business in Illinois shall maintain a record, in a format in which the record
is available to review by the Department, of all payments made
under contracts for personal services.  Payments which meet all of the
following criteria are considered payments made under contracts for
personal services:
(1) the payment is made in the ordinary course of the     trade or business of the payor;
(2) the payment is made pursuant to a written     contract requiring the rendition of personal services;
(3) the sum of the payment and other payments     required to be made under the contract during the same calendar year by the payor exceed $1000; and
(4) the performance of the personal services     specified in the contract will necessitate the presence at sometime in Illinois of a particular individual or group of individuals; provided that no reporting will be required if there is certification that the individual or, if appropriate, group of individuals is composed solely of Illinois residents, and further provided that no reporting will be required if there is certification that the individual or, if appropriate, group of individuals is employed by a person maintaining an office in Illinois.
(b) Information required to be maintained. The
information to be maintained in a format in which the information is
available for review by the Department shall specify the identifying numbers of persons
receiving the payments made under the contract for personal services, the
names of the persons receiving the payments, the addresses of the persons
receiving the payments, and the aggregate amount of payments made to each
person.  The information shall also specify the identifying
number, name, and
address of the payor.
(c) Every person required to maintain information
under subsection (a) shall
furnish to each person with respect to whom the information is required a
copy of the information maintained for Department inspection.
Where the payment is made to a person or persons other than the
individual or group of individuals whose presence in Illinois was
necessitated by the contract, the written statement furnished to the
payment recipients shall state that such persons shall in turn inform the
individuals whose presence in Illinois was required, or their employer if
such individuals were employed, that the payment has been reported to the
Department of Revenue.
The written statement required under the preceding sentence shall be
furnished to the person on or before January 31 of the year following the
calendar year for which the report under subsection (a) was required
to be made.
(d) Penalties.  Any person required to provide copies of information to
persons to whom payments are made under subsection
(c) of this Section who fails to do so shall be subject to the
penalty prescribed by Section 3-4 of the Uniform Penalty and Interest Act.
(Source: P.A. 89-399, eff. 8-20-95.)
(35 ILCS 5/1405.3) (from Ch. 120, par. 14-1405.3)
Sec. 1405.3. 
		
		(a) Payments made on or after January 1, 1989, for prizes
or awards.  Any person maintaining an office or transacting business in
Illinois shall maintain a record, in a format in which the record is subject
to review by the Department, of all payments, whether cash or
non-cash, made as prizes or awards.  Payments which meet all of the
following criteria are considered payments of prizes or awards:
(1) the payment is made in the ordinary course of the     trade or business of the payor,
(2) the payment is in complete or partial     satisfaction of a prize or award in excess of $1000 won by a particular individual or group of individuals for themselves or their sponsors as a result of their participation and relative performance, or the participation and relative performance of an animal or motor vehicle which they own, in any contest staged wholly in Illinois provided that no reporting will be required if there is certification that the individual or group of individuals receiving the prize or award is composed solely of Illinois residents, and further provided that no reporting will be required if there is certification that the individual or group of individuals is employed by a person maintaining an office in Illinois.
(b) Information required to be maintained.  The
information to be maintained in a format in which the information is
available
for review by the Department shall specify the identifying numbers of persons
receiving the prize or award, the names of the persons receiving the prize
or award, the addresses of the persons receiving the prize or award, and
the aggregate amount of payments or the fair market value of the non-cash
prize or award received by each person.  The information shall
also specify the
identifying number, name, and address of the payor.
(c) Every person required to maintain information
under subsection (a) shall
furnish to each person with respect to whom such information
is required to be maintained a
copy of the information maintained for Department inspection.
Where the payment is made to a person or persons other than the
individual or group of individuals receiving the prize or award, the
written statement furnished to the payment recipients shall state that such
persons shall in turn inform the individuals receiving the prize or award,
or their employer if such individuals were employed, that the payment has
been reported to the Department of Revenue.
The written statement required under the preceding sentence shall be
furnished to the person on or before January 31 of the year following the
calendar year for which the report under subsection (a) was required to
be made.
(d) Penalties.  Any person required to provide copies of information to
persons to whom payments are made under subsection
(c) of this Section who fails to do so shall be subject to the
penalty prescribed by Section 3-4 of the Uniform Penalty and Interest Act.
(Source: P.A. 89-399, eff. 8-20-95.)
(35 ILCS 5/1405.4)
Sec. 1405.4. Tax refund inquiries; response. The Department of Revenue
shall establish procedures to inform taxpayers of the status of their refunds and shall provide a response to each inquiry concerning refunds under this Act
within 10 days after receiving the inquiry.
(Source: P.A. 97-507, eff. 8-23-11.)
(35 ILCS 5/1405.5)
Sec. 1405.5. Registration of tax shelters.
(a) Federal tax shelter.  Any material advisor required to make a return under Section 6111 of the Internal Revenue Code with respect to a reportable transaction shall send a duplicate of the return to the Department not later than the day on which the return is required to be filed under federal law.
(b) (Blank).
(c) Transactions subject to this Section.  The provisions of this Section apply to any reportable transaction having a nexus with this State. For returns that must be filed under this Section on or after January 1, 2008, a reportable transaction has nexus with this State if, at the time the transaction is entered into, the transaction has one or more investors that is an Illinois taxpayer.  For returns that must be filed under this Section prior to January 1, 2008, a tax shelter has a nexus with this State if it satisfies any of the following conditions: (1) is organized in this State; (2) is doing business in this State; or (3) is deriving income from sources in this State.
(d) (Blank).
(Source: P.A. 95-707, eff. 1-11-08.)
(35 ILCS 5/1405.6)
Sec. 1405.6. Investor lists.
(a) Federal abusive tax shelter.  Any person required to maintain a list under Section 6112 of the Internal Revenue Code shall furnish a duplicate of such list to the Department not later than the earlier of the time such list is required to be furnished to the Internal Revenue Service for inspection under Section 6112 of the Internal Revenue Code or the date of written request by the Department.
(b) (Blank).
(c) Transactions subject to this Section. The provisions of this Section apply to any reportable transaction having a nexus with this State. For lists that must be filed with the Department on or after January 1, 2008, a reportable transaction has nexus with this State if, at the time the transaction is entered into, the transaction has one or more investors that is an Illinois taxpayer. For lists that must be filed with the Department prior to January 1, 2008, a reportable transaction has nexus with this State if, at the time the transaction is:
(1) Organized in this State;
(2) Doing Business in this State; or
(3) Deriving income from sources in this State.
(Source: P.A. 95-707, eff. 1-11-08.)
(35 ILCS 5/1406) (from Ch. 120, par. 14-1406)
Sec. 1406. 
		Identifying Numbers.
(a) Supplying of identifying numbers. When required by regulations
prescribed by the Department:
(1) Inclusion in returns. Any person required under     this Act to make a return, statement, or other document shall include in such return, statement, or other document such identifying number as may be prescribed for securing proper identification of such person.
(2) Furnishing number to other persons. Any person     with respect to whom a return, statement, or other document is required under this Act to be made by another person shall furnish to such other person such identifying number as may be prescribed for securing his proper identification.
(3) Furnishing number of another person. Any person     required under this Act to make a return, statement, or other document with respect to another person shall request from such other person, and shall include in any such return, statement, or other document, such identifying number as may be prescribed for securing proper identification of such other person.
(b) Limitation.
(1) Except as provided in paragraph (2), a return of     any person with respect to his liability for tax, or any statement or other document in support thereof, shall not be considered for purposes of paragraphs (2) and (3) of subsection (a) as a return, statement, or other document with respect to another person.
(2) For purposes of paragraphs (2) and (3) of     subsection (a), a return of an estate or trust with respect to its liability for tax, and any statement or other document in support thereof, shall be considered as a return, statement, or other document with respect to each beneficiary of such estate or trust.
(c) Requirement of information. For purposes of this section, the
Department is authorized to require such information as may be necessary to
assign an identifying number to any person.
(Source: P.A. 76-261.)
(35 ILCS 5/1407) (from Ch. 120, par. 14-1407)
Sec. 1407. 
		Amounts Less than $1. 
		(a) Payments, refunds, etc.  The
Department may by regulations provide that if a total amount of less than
$1 is payable, refundable or creditable, such amount may be disregarded
or, alternatively, shall be disregarded if it is less than 50 cents and
shall be increased to $1 if it is 50 cents or more.
(b) Rounding.  The Department may by regulations provide that any amount
which is required to be shown or reported on any return or other document
under this Act shall, if such amount is not a whole-dollar amount, be increased
to the nearest whole-dollar amount in any case where the fractional part
of a dollar is 50 cents or more, and decreased to the nearest whole-dollar
amount where the fractional part of a dollar is less than 50 cents.
(Source: P.A. 76-261.)
(35 ILCS 5/1408) (from Ch. 120, par. 14-1408)
Sec. 1408. 
Except as otherwise provided in the Illinois Independent Tax Tribunal Act of 2012, 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. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)