reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 86 - REVENUE › Part 760 - ELECTRONIC FILING OF RETURNS OR OTHER DOCUMENTS › Section 760.220 - Electronic Payment Required

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Taxpayers who voluntarily choose to electronically file returns and other
			 documents with the Department under the provisions of this Part must make any
			 required payments relating to those returns or documents through electronic
			 means. The methods of electronic payment that can be utilized are as follows:
1) Electronic payment by electronic funds
			 transfer under the Electronic Funds Transfer Program described in 86 Ill. Adm.
			 Code 750. Liquor tax participants that submit their return and schedules on
			 approved magnetic media must utilize this method;
2) Electronic payment by including payment
			 data as part of an EDI 813 Electronic Filing of Tax Return Data transaction set
			 (see Section
			 760.320
			 of this Part). This method is only available for sales tax participants;
			 or
3) Electronic payment by
			 including payment data in an EDI 820 Payment Order/Remittance Advice
			 transaction set (see Section
			 760.320
			 of this Part). This method is only available for sales tax
			 participants;
4) Electronic payment
			 by including payment data as part of the electronic transmission of the return
			 and schedule data; or
5) Electronic
			 payment by including payment data in an electronic transmission that is
			 separate from the return and schedule transmission.
Illinois Administrative Code › Title 86 - REVENUE › Part 760 - ELECTRONIC FILING OF RETURNS OR OTHER DOCUMENTS › Section 760.230 - Electronic Signatures

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Taxpayers must select their electronic signature, as outlined by the Department
			 on the electronic filing enrollment form, and the taxpayer or authorized
			 officer or other individual responsible for filing the returns or other
			 documents must properly sign the electronic filing enrollment form.
b) The taxpayer's electronic signature is to
			 be used in lieu of a written signature when filing electronic returns, forms,
			 or other documents with the Department.
c) The effect of including a valid electronic
			 signature as part of a transaction transmission has the same legal effect as
			 the taxpayer having signed the returns or other documents that are in that
			 transaction transmission.
d)
			 Electronically transmitted returns and other documents will be considered
			 unsigned unless the taxpayer's registered electronic signature is included, and
			 received by the Department, as part of that transmission.
e) An electronic signature is considered to
			 be valid once it is registered by the Department until it expires or any of the
			 following occurs:
1) The Department receives
			 a written request from the taxpayer to have that taxpayer's electronic
			 signature invalidated. To continue electronic filing under this Part, the
			 taxpayer must submit a revised electronic filing enrollment form and select a
			 new electronic signature.
2) The
			 taxpayer files a revised enrollment form and has selected a new electronic
			 signature on that form.
3) The
			 taxpayer notifies the Department that the electronic signature has been
			 compromised. To continue electronic filing under this Part, the taxpayer must
			 submit a revised enrollment form and select a new electronic
			 signature.
4) The revocation or
			 suspension of the taxpayer's electronic signature authorization.
Illinois Administrative Code › Title 86 - REVENUE › Part 760 - ELECTRONIC FILING OF RETURNS OR OTHER DOCUMENTS › Section 760.240 - Due Dates and Date Received

Current through Register Vol. 48, No. 28, July 12, 2024
a) When
			 the statutory due date for filing a return or other document or making payment
			 with the Department falls on a weekend or a banking holiday observed by the
			 State of Illinois, the Department will accept the electronic return or other
			 document and the payment on the next business day. Electronic filers are
			 responsible for timely initiating the transaction to assure the return or other
			 document is received by the Department on the day following the weekend or
			 banking holiday.
b) Taxpayers
			 making electronic payments under this Part must initiate the payment on or
			 before the due date under the appropriate tax Act and request a payment date no
			 later than the due date or, if a payment date of the due date is unavailable,
			 then no later than the financial institution's next available business day
			 after the due date. For the payment to be deemed timely by the Department, the
			 transfer must be initiated on or before the due date and must result in the
			 amount due being deposited as collected funds to the Department's account, even
			 if that deposit occurs after the due date.
c) The receipt date of the electronic
			 transmission will constitute the receipt date of the electronic return or other
			 document if the transmission is acknowledged as accepted, or accepted with
			 error, with a detailed acknowledgment from the Department as provided in
			 Section
			 760.310.
			 Any return or other document, including debit authorization, acknowledged as
			 rejected with a functional or detailed acknowledgment will be considered not
			 filed. The receipt date of the electronic transmission will be when the
			 telephone transmission ends for participants transmitting directly to the
			 Department.
d) Payment by debit
			 authorization included in the electronic return will be considered timely if
			 all of the following conditions are met:
1)
			 The receipt date of the electronic return in which the EFT debit payment is
			 included is timely under subsection (c);
2) The EFT debit payment date requested is no
			 later than the due date or, if a payment date of the due date is unavailable,
			 then no later than the next available business day after the due date;
			 and
3) A confirmation number for
			 the EFT debit is received in the acknowledgment from the Department indicating
			 that it was accepted in the same electronic transmission as the return
			 filing.
Illinois Administrative Code › Title 86 - REVENUE › Part 760 - ELECTRONIC FILING OF RETURNS OR OTHER DOCUMENTS › Section 760.310 - Filing Acknowledgments

Current through Register Vol. 48, No. 28, July 12, 2024
a) Each
			 file of electronic returns or other documents transmitted to the Department
			 will normally be acknowledged within 24 hours after receipt.
b) The acknowledgement file identifies which
			 returns or other documents have been accepted or rejected. The acknowledgment
			 files must be retrieved within five days.
c) If the acknowledgment file is not
			 available within 36 hours, or if acknowledgments are received for returns or
			 other documents that were not transmitted within the designated transmission,
			 immediately contact the Department.
d) The transmitter should match the
			 acknowledgment file back to the original file transmitted.
NOTE: Any transmitted electronic return or other document that
				is acknowledged as rejected by the Department will not be considered
				filed.
e) When a return or
			 other document has been rejected after three attempts, contact the Department
			 and assistance will be provided.
f)
			 For sales tax participants, the Department will provide two different levels of
			 acknowledgments for filing electronic returns and other electronic documents
			 with the Department. The acknowledgments are referred to as the 997 -
			 Functional Acknowledgment and the 151 - Electronic Filing of Tax Return Data
			 Acknowledgment. These acknowledgments are based upon transaction sets developed
			 and approved for Electronic Data Interchange (EDI) by the American National
			 Standards Institute's Accredited Standards Committee X12.
1) The first level of acknowledgment is the
			 997 - Functional Acknowledgment. This acknowledgment determines whether the
			 electronic transmission contains any syntax errors at any level.
A) If the 997 acknowledgment designates
			 rejection, the entire transmission is rejected and all the transaction sets
			 (electronic documents and payment data) contained in the transmission are
			 considered not filed.
B) If the 997
			 acknowledgment designates acceptance, this is only evidence that the Department
			 received a transmission from the sender. The 997 acknowledgment is not a
			 detailed acknowledgment of the electronic documents contained in the
			 transmission. Receipt of a 997 designating acceptance does not mean that
			 included transaction sets (electronic documents or payment data) are accepted
			 for processing or that they are considered filed.
C) If the 997 acknowledgment designates
			 acceptance, the individual transaction sets (electronic documents and payment
			 data) may still be rejected later in the processing of the transmission. NOTE:
			 Only a 151 acknowledgment (described below) designating acceptance will mean
			 the transaction sets are considered filed and will be processed.
Illinois Administrative Code › Title 86 - REVENUE › Part 760 - ELECTRONIC FILING OF RETURNS OR OTHER DOCUMENTS › Section 760.330 - Termination of Voluntary Participants

Current through Register Vol. 48, No. 28, July 12, 2024
The Department reserves the right to terminate the
				participation privilege of any voluntary electronic filer who fails to meet the
				requirements, specifications, and procedures stated in this
				Part.
Illinois Administrative Code › Title 86 - REVENUE › Part 800 - GENERAL RULES FOR ALL TAXES › Section 800.1000 - Introduction

Current through Register Vol. 48, No. 28, July 12, 2024
There are a number of issues with respect to tax administration
				that are not related to any particular tax. Many of those provisions are
				contained in 2 Ill. Adm. Code 1200. However, there are a number of issues that
				apply generally to all taxes administered by the Illinois Department of Revenue
				(the "Department") that do not fall within the scope of Title 2 of the Illinois
				Administrative Code and, as a result, must be adopted in conformance with the
				normal rulemaking requirements of the Illinois Administrative Procedure Act
				(the "IAPA") [5 ILCS 100 ]. This Part codifies the rules of the Department that
				are not tax-specific.
Illinois Administrative Code › Title 86 - REVENUE › Part 800 - GENERAL RULES FOR ALL TAXES › Section 800.4000 - Filing Returns and Other Documents by Facsimile

Current through Register Vol. 48, No. 28, July 12, 2024
a) Consistent with rules adopted by the
			 Department of Revenue, a person may transmit by facsimile any return or
			 document required to be filed with the Department under any Act administered by
			 the Department. A signature on a return or other document filed in accordance
			 with regulations promulgated by the Department and transmitted by facsimile is
			 prima facie evidence for all purposes that the document was actually signed by
			 the person whose signature appears on the facsimile. [20 ILCS 2505/39c-1b
			 ]
b) On certain rare occasions,
			 circumstances will arise that will make it very difficult or impossible for the
			 Department to receive returns or other documents from taxpayers within the
			 normal time frames required by delivery through the postal service or other
			 private mail service. On some of these occasions, taxpayers will also be unable
			 to personally deliver the return or document to the Department. Therefore, upon
			 request of the Department, taxpayers may submit a facsimile of any tax return
			 or other document, by telefax or any other method of facsimile transmission
			 authorized by the Department. In such cases, the original return or other tax
			 document must be maintained by the taxpayer subject to the Department's right
			 of audit. Such requests do not relieve taxpayers from requirements to file in
			 the usual manner (paper, electronic, telefile, etc.) for other periods. There
			 is, however, no limit on the number of times such permission can be
			 granted.
c) Taxpayers may only file
			 returns or other documents by facsimile upon the request of the Department. The
			 Department will not accept requests for permission to file returns or other
			 documents by facsimile from any taxpayer or taxpayer representative. Any return
			 or other document transmitted to the Department by facsimile for a reason other
			 than upon Department request will not be accepted, and in the case of returns
			 will be deemed to be non-filed and will subject the taxpayer to the penalty for
			 non-filing set forth in Section 3-3 of the Uniform Penalty and Interest Act
			 [35 ILCS
			 735/3-3 ].
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.101 - Overview of the Local Government Revenue Recapture Act

Current through Register Vol. 48, No. 28, July 12, 2024
The Local Government Revenue Recapture Act (the Act),
				[50 ILCS
				355 ], establishes a process for municipalities or
				counties that receive a disbursement of tax proceeds from the Department to
				contract with third parties to ensure that the municipality or county receives
				the correct tax disbursements from the Department. A registered third party
must work directly with the municipality or county to acquire financial
				information. A third party may, however, directly access a municipality's or
				county's financial information that is provided by the Department by electronic
				means under Section 11 of the Retailers' Occupation Tax Act, provided that the
				third party meets all other conditions under
Section
				850.120(a)
for the receipt of financial information.
[50 ILCS
				355/5-10 ] The Act also creates a Certified Audit
				Pilot Program that allows taxpayers to engage a qualified practitioner to
				perform a certified audit, instead of the Department, based on an actionable
				referral by a municipality, county, or registered third party under the
				Act.
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.105 - Nature and Scope of Certified Audit Pilot Program

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Certified Audit Pilot Program is a
5-year pilot project that begins on January 1, 2021
and ends
			 on December 31, 2025
, and that is limited in scope to specifically
			 address concerns related to the proper reporting and payment of local
			 occupation and use taxes that are collected and distributed to municipalities
			 and counties by the Department.
[50 ILCS
			 355/10-10 ]
b) The Certified Audit Pilot Program is
			 intended to enhance tax compliance by allowing audits to be performed by
			 qualified practitioners. The program is intended to
encourage taxpayers
			 to hire qualified practitioners at their own expense to review and report on
			 certain aspects of their occupation and use tax compliance when the Department
			 has notified the taxpayer that it has received an actionable tax compliance
			 referral from a municipality, county, or third party under the Act
.
			 [50 ILCS
			 355/10-20 ] The qualified practitioner shall conduct
			 the certified audit based on agreed upon procedures with the Department being
			 the user of the resulting Certified Audit Report. As an incentive for taxpayers
			 to incur the costs of a certified audit, the Act provides for a waiver of
			 penalties due on any tax liabilities revealed by a certified audit. The waiver
			 of penalties does not apply to any amount that the taxpayer collected as tax
			 but did not remit to the Department. In addition, there is no authority to
			 waive penalties resulting from a finding of fraud.
c)
The tax compliance reviews shall
			 be limited in scope and may include only:
1)
whether the taxpayer is reporting
			 receipts in the proper jurisdiction;
2)
whether tangible personal property
			 purchases that were used or consumed by the taxpayer were taxed
			 properly;
3)
an
			 evaluation of sales reported as exempt from tax;
4)
whether the proper tax rate was
			 charged;
5)
whether the tax was properly reported as retailers' occupation tax or
			 use tax; and
6)
any other factor that impacts the Department's allocation of sales and
			 use tax revenues to the jurisdiction in which the taxpayer reports sales or use
			 tax.
[50 ILCS 355/10-20
			 ]
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.120 - Third Party Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a)
A municipality or county that receives a disbursement of tax proceeds
			 from the Department may contract with a third party for the purpose of ensuring
			 that the municipality or county receives the correct disbursement from the
			 Department and monitoring disbursements. The third party may not contact the
			 Department on behalf of the municipality or county, but instead must work
			 directly with the municipality or county to acquire financial information. A
			 third party may, however, directly access a municipality's or county's
			 financial information that is provided by the Department by electronic means
			 under Section 11 of the Retailers' Occupation Tax Act, provided that the third
			 party meets all other conditions under
Section 5-10 of the Act
for the receipt of financial information. To be eligible to receive
			 financial information from the municipality or county, the third party
			 must:
1)
enter into a
			 confidentiality agreement with the municipality or county in the form and
			 manner required by the Department prior to receiving the financial
			 information;
2)
have an existing contract with the municipality or county at the time
			 the third party enters into the confidentiality agreement with the municipality
			 or county; a copy of that existing contract must be on file with the
			 Department;
3)
abide by the same conditions as the municipality or county with respect
			 to the furnishing of financial information under Section 11 of the Retailers'
			 Occupation Tax Act; and
4)
be registered with the Department as required by
Section
			 850.130
.
[50 ILCS
			 355/5-10 ]
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.125 - Confidentiality Requirements for Third Parties

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Local Government Revenue Recapture Act
			 has strict protocols regarding third parties' handling of taxpayers' financial
			 information. A
third party may use the financial information it
			 receives from the contracting municipality or county only for the purpose of
			 providing services to the municipality or county as specified in the Act and
			 may not use the information for any other purpose. Electronic data submitted to
			 third parties by the contracting municipality or county must be accessible only
			 to third parties who have entered into a confidentiality agreement with the
			 municipality or county or who have an existing contract with the municipality
			 or county.
[50 ILCS 355/5-15 ] Any work
			 product containing financial information a third party has received from the
			 contracting municipality or county and any referral made by the third party are
			 subject to the same confidentiality requirements set out in this Section as the
			 taxpayer's financial information itself.
b) Third parties may not permanently retain
			 this information or any work product containing such information and must
			 permanently destroy any physical copies of the financial information or any
			 work product containing such information if the taxpayer is not referred to the
			 Department within 30 days after receipt of the taxpayer's financial information
			 from a local government, unless the third party is monitoring disbursements
			 from the Department on an ongoing basis for a local government, in which case
			 the financial information or any work product containing such information shall
			 be destroyed no later than 3 years after receipt. The third party also must
			 dispose of the information or any work product containing such information
			 within 30 days after the third party submits a taxpayer audit referral to the
			 Department.
c) Third parties must
			 dispose of financial information or any work product containing such
			 information in a manner that renders it unreadable, unusable, and
			 undecipherable. Proper disposal methods include, but are not limited to, the
			 following:
1)
in the case of paper
			 documents, burning, pulverizing, or shredding so that the information cannot
			 practicably be read or reconstructed; and
2)
in the case of electronic media
			 and other non-paper media containing information, destroying or erasing so that
			 information cannot practicably be read, reconstructed, or otherwise utilized by
			 the third party or others.
[50 ILCS
			 355/5-20 ]
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.135 - Qualified Practitioner Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
A certified public accountant who wishes to participate in the
				Certified Audit Pilot Program as a qualified practitioner must:
a) be licensed as a certified public
			 accountant in Illinois by the Illinois Department of Financial and Professional
			 Regulation;
b) be properly
			 registered by the Department, as set out in Section
			 850.140, including having fully
			 paid the registration fee;
c)
			 complete the minimum training required by the Department;
d) pass an examination as required by the
			 Department; and
e) be properly
			 certified by the Department, as set out in Section
			 850.145.
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.140 - Qualified Practitioner Registration and Training

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Department will establish a standard
			 outline of subject areas that addresses both taxability and procedural matters
			 that may be included in an examination to test the fitness of applicants to
			 participate in the Certified Audit Pilot Program. All applicants must complete
			 all courses that cover the required training to be eligible to take the
			 examination that is required to be a qualified practitioner.
b) Applicants shall complete the required
			 training by enrollment in the training course administered by the Department.
			 The required training will consist of a self-study review and a separate
			 instructional course covering the basics of sales tax laws and audit
			 procedures.
c) Applicants must
			 register with the Department using a form prescribed by the Department and pay
			 a Qualified Practitioner Registration Fee prior to the training course for
			 which the applicant has been approved.
The Department shall charge a
			 fee of $2,500 to each participant in its certification program.
[50 ILCS
			 355/10-20 (c-5)]
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.145 - Examination

Current through Register Vol. 48, No. 28, July 12, 2024
a) Examinations
			 will be given and graded by the Department.
b) Examinations will be conducted at
			 locations that the Department designates. The Department will set dates, times,
			 instructions, and requirements, including any fees, to take the
			 examination.
c) Applicants must
			 pass the examination with a score of 75% or higher.
d) The Department will not release copies of
			 any examination to applicants. No applicant is permitted to make copies of the
			 examination, and all applicants are prohibited from disclosing any information
			 about the contents or administration of any examination that could affect the
			 validity of any examination (e.g., disclosing questions appearing on the
			 examination to other applicants). Applicants who disclose this information will
			 be denied certification or if already certified will have their certification
			 revoked.
e) After the applicant
			 successfully completes the required training and passes the required
			 examination, the Department shall certify the applicant as a qualified
			 practitioner if the applicant has met all requirements for participation set
			 forth herein. All certificates expire on December 31, 2025, to coincide with
			 the end of the initial five-year year project. Should the project be extended,
			 the Department will establish procedures for qualified practitioner
			 re-certifications.
f) Upon
			 certification, the qualified practitioner is required to follow all
			 requirements of this Subpart and 86 Ill. Adm. Code 130, 140, 150 and 160 of the
			 Department's administrative rules.
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.150 - Revocation of Qualified Practitioner Registration

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Department may revoke the qualified
			 practitioner's registration if the qualified practitioner no longer meets the
			 requirements for participation set forth in Section
			 850.135. Further, the qualified
			 practitioner's registration may be revoked if the qualified practitioner does
			 not follow all rules and regulations of the Department.
b) After notice of revocation, the qualified
			 practitioner shall immediately cease performing functions under the Certified
			 Audit Pilot Program. The qualified practitioner has 60 days from the date of
			 the notice of revocation to file a protest with the Department and request a
			 hearing. Upon receiving a request for a hearing, the Department shall give
			 written notice to the person requesting the hearing of the time and place fixed
			 for the hearing and shall hold a hearing and then issue its final
			 administrative decision in the matter to that person within 60 days after the
			 date of the hearing or at a later date upon agreement of all of the parties. In
			 the absence of a protest and request for a hearing within 60 days, the
			 Department's decision shall become final without any further determination
			 being made or notice given. Final administrative decisions by the Department
			 under this Section are subject to judicial review under the provisions of the
			 Administrative Review Law [735 ILCS 5/Art. III ].
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.155 - Notice of Engagement and Agreed-Upon Procedures

Current through Register Vol. 48, No. 28, July 12, 2024
a) A qualified practitioner hired by a
			 taxpayer who has received an actionable referral under Section
			 850.115(b)(3)(B)
			  to perform a certified audit must submit a
			 Notice of Engagement to the Department notifying it of the taxpayer's
			 participation in the Certified Audit Pilot Program on behalf of the taxpayer on
			 a form prescribed by the Department.
b)
The information provided in the
			 notification shall be submitted in the form and manner required by the
			 Department and shall include the taxpayer's name, federal employer
			 identification number or social security number, Department account
			 identification number, mailing address, and business location, and the specific
			 occupation and use taxes and period proposed to be covered by the engagement
			 for the certified audit. In addition, the notice shall include the name,
			 address, identification number, contact person, and telephone number of the
			 engaged firm.
[50 ILCS
			 355/10-35(a) ]
c) The qualified practitioner must agree to
			 conduct the certified audit using the Illinois Department of Revenue's
			 agreed-upon procedures at the time of the qualified practitioner's submission
			 of the Notice of Engagement.
1) The Department
			 has established a list of agreed-upon procedures that qualified practitioners
			 must follow in a certified audit. These designated agreed-upon procedures
			 combine elements from the American Institute of Certified Public Accountants'
			 Clarified Statements on Standards for Attestation Engagements with the
			 Department's own audit standards.
2) Any deviations from the established list
			 of agreed-upon procedures must be approved in writing by the Department. The
			 qualified practitioner must submit a written request to the Department and
			 receive written approval from the Department prior to making any additions,
			 deletions, or revisions to the approved certified audit plan.
3) The Department will be the final authority
			 on the nature, extent, and type of audit procedures.
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.160 - Submission and Review of the Certified Audit Report

Current through Register Vol. 48, No. 28, July 12, 2024
a)
Upon the Department's designation
			 of the agreed-upon procedures to be followed by a practitioner in a certified
			 audit, the qualified practitioner shall perform the engagement and shall timely
			 submit a completed report to the Department in the form and manner required by
			 the Department and professional standards. The report shall affirm completion
			 of the agreed-upon procedures and shall provide any required
			 disclosures.
[50 ILCS
			 355/10-40(a) ] Additionally, the
			 Certified Audit Report must include all documents required by the agreed-upon
			 procedures and all documents supporting the audit findings.
b)
The Department shall review the
			 report of the certified audit and shall accept it when it is determined to be
			 complete by the qualified practitioner.
[50 ILCS
			 355/10-40(b) ]
c) The qualified practitioner is also
			 required to retain comprehensive, detailed documentation of the certified audit
			 work performed, and to make that documentation available to the Department upon
			 request. The Department shall have unrestricted access to all information and
			 documentation from both the qualified practitioner and the participating
			 taxpayer necessary for a comprehensive review.
d)
Once the report is accepted by the
			 Department, the Department shall provide the taxpayer with all the normal
			 payment, protest, and appeal rights with respect to any liability reflected in
			 the report, including the right to a review by the Informal Conference Board.
			 In cases in which the report indicates an overpayment has been made, the
			 taxpayer shall submit a properly executed claim for credit or refund to the
			 Department. Otherwise, the certified audit report is a final and conclusive
			 determination with respect to the tax and period covered. No additional
			 assessment may be made by the Department for the specific taxes and period
			 referenced in the report, except upon a showing of fraud or material
			 misrepresentation. This determination shall not prevent the Department from
			 collecting liabilities not covered by the report or from conducting an audit or
			 investigation and making an assessment for additional tax, penalty, or interest
			 for any tax or period not covered by the report.
[50 ILCS
			 355/10-40(b) ]
e) Taxpayers participating in the Certified
			 Audit Pilot Program relinquish no rights provided to them by the applicable tax
			 acts and, therefore, have the same protest rights available to any taxpayer who
			 is audited by the Department as set out in the Retailers' Occupation Tax Act
			 [35 ILCS
			 120/4 ]. Taxpayers who participate in the Certified
			 Audit Pilot Program have the same rights to file claims as any taxpayer who is
			 audited by the Department. Procedures to follow in filing claims for credit are
			 set out in 86 Ill. Adm. Code
			 130.1501.
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.165 - Revocation of a Certified Audit in Progress

Current through Register Vol. 48, No. 28, July 12, 2024
Approval to participate will be revoked by the Department based
				on the following criteria:
a) the
			 license of the qualified practitioner is suspended or revoked by the Illinois
			 Department of Financial and Professional Regulation; or
b) the Department initiates an investigation
			 for financial impropriety of the qualified practitioner or participating
			 taxpayer or is notified by another local, state or federal agency of an
			 investigation of the qualified practitioner or participating taxpayer
			 subsequent to submission of the Notice of Engagement (See Section
			 850.155) but prior to Department
			 approval of the Certified Audit Report.
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.170 - Withdrawal from Certified Audit Pilot Program

Current through Register Vol. 48, No. 28, July 12, 2024
a) If the taxpayer withdraws from the
			 Certified Audit Pilot Program subsequent to the Department's approval of the
			 agreed upon procedures, then the Department may conduct an audit of the
			 taxpayer for the same audit period specified in the agreed upon
			 procedures.
b) If the Department
			 completes the audit, the taxpayer will not benefit from the waiver of penalties
			 granted by the Certified Audit Pilot Program.
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.175 - Extension of Audit Timeframe

Current through Register Vol. 48, No. 28, July 12, 2024
Upon written request of the participating taxpayer or qualified
				practitioner, the time within which the certified audit is to be performed may
				be extended by the Department upon good cause shown. Good cause shown includes
				delays beyond the control of the participating taxpayer or qualified
				practitioner. The Department may require the participating taxpayer to execute
				a waiver extending the statute of limitations if fewer than 75 days remain
				before the expiration of the statute of limitations.
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.180 - A Certified Audit is Initiated by the Taxpayer but not Completed

Current through Register Vol. 48, No. 28, July 12, 2024
If, for whatever reason, the taxpayer's designated qualified
				practitioner fails to submit a completed certified audit report that meets the
				requirements of this Part after there has been approval of the agreed upon
				procedures the taxpayer has the option of engaging another qualified
				practitioner to complete the report. If an extension of time is necessary in
				this circumstance, an extension must be requested and granted pursuant to
				Section 850.175.
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.185 - Certified Audit Report Not Submitted Within Audit Timeframe

Current through Register Vol. 48, No. 28, July 12, 2024
If a certified audit report is not provided to the Department
				within 180 days after the Department's notice (see Section
				850.115) and no extension of
				time has been obtained pursuant to Section
				850.175, a Department auditor
				may complete the audit. If a Department auditor completes the audit, the
				taxpayer will not benefit from the waiver of penalties granted by the Certified
				Audit Pilot Program.
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.190 - Independence

Current through Register Vol. 48, No. 28, July 12, 2024
A qualified practitioner or a firm with which the qualified
				practitioner is associated shall not express an opinion on the books and
				records of a participating taxpayer unless the qualified practitioner and the
				firm are independent with respect to the participating taxpayer. Independence
				will be considered to be impaired if, for example:
a) During the period of the qualified
			 practitioner's professional engagement, or at the time of expressing an
			 opinion, the qualified practitioner or the associated firm:
1) had or was committed to acquire any direct
			 or material indirect financial interest in the participating
			 taxpayer;
2) had any closely held
			 business investment with the participating taxpayer or any officer, director or
			 principal stockholder thereof which was material in relation to the qualified
			 practitioner's or firm's net worth, or
3) had any loan to or from the participating
			 taxpayer or any officer, director or principal stockholder thereof. This latter
			 proscription does not apply to the following loans from a participating
			 taxpayer that is a financial institution when made under normal lending
			 procedures, terms and requirements:
A) loans
			 obtained by a qualified practitioner or the firm which are not material in
			 relation to the net worth of such borrower, or
B) home mortgages, or
C) other secured loans, except loans
			 guaranteed by a qualified practitioner's firm which are otherwise
			 unsecured.
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.195 - Penalties

Current through Register Vol. 48, No. 28, July 12, 2024
Unless the audit discloses fraud, the Department shall waive
				penalties that would be based on any tax that is identified to be due as a
				result of a certified audit. The waiver of penalties does not apply to any
				amount that the taxpayer collected as tax, but did not remit to the Department,
				or to any certified audit that the Department completes for any
				reason.
Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.200 - Detrimental Reliance

Current through Register Vol. 48, No. 28, July 12, 2024
In any subsequent audit of the taxpayer by the Department,
				detrimental reliance that is based upon the results of the certified audit that
				the qualified practitioner conducts, or incorrect or misleading advice that the
				qualified practitioner gives, is not a defense against the assessment of tax,
				penalty, or interest.
Illinois Administrative Code › Title 86 - REVENUE › Part 900 - LIVE ADULT ENTERTAINMENT FACILITY SURCHARGE ACT › Section 900.105 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Act" means the Live Adult Entertainment Facility Surcharge Act
				[35 ILCS 175 ].
"Admission" means entry by a person into a live adult
				entertainment facility [35 ILCS
				175/5 ].
"Department" means the Department of Revenue [35 ILCS 175/5
				].
"Gross receipts" has the meaning ascribed to the term in
				Section 1 of the Retailers' Occupation Tax Act [35 ILCS
				120/1 ].
"Live adult entertainment facility" means a striptease club or
				other business that meets all of the following conditions:
the business serves alcohol or permits the consumption of
				alcohol on its premises;
during at least 30 consecutive or nonconsecutive days in a
				calendar year, the business offers or provides activities by employees, agents,
				or contractors of the business that involve nude or partially denuded
				individuals. Customers of the business participating in activities such as wet
				tee-shirt contests are not considered employees, agents, or contractors;
				and
the activities by the employees, agents, or contractors, when
				considered as a whole, appeal primarily to an interest in nudity or sex.
				[35 ILCS 175/5
				]
"Nude or partially denuded individual" means an individual who
				is:
entirely unclothed; or
clothed in a manner that leaves uncovered or visible through
				less than fully opaque clothing any portion of the breasts below the top of the
				areola of the breasts, if the person is female, or any portion of the genitals
				or buttocks. [35 ILCS 175/5]
"Operator" means any person who owns or operates a live adult
				entertainment facility in this State [35 ILCS 175/5].
"Premises" means the property on which the adult entertainment
				facility is located and all property contiguous to the live adult entertainment
				facility owned or leased by, or otherwise under the control of, the operator,
				including beer gardens and parking lots. Property that is contiguous to a live
				adult entertainment facility but is not owned or leased by, or otherwise under
				the control of, the operator will nonetheless be considered part of the
				facility's "premises" if alcohol is served or consumed there and if customers
				can move freely between the contiguous property and the live adult
				entertainment facility.
"ROTA" means the Retailers' Occupation Tax Act [35 ILCS 120
				].
Illinois Administrative Code › Title 86 - REVENUE › Part 900 - LIVE ADULT ENTERTAINMENT FACILITY SURCHARGE ACT › Section 900.110 - Nature and Rate of the Surcharge

Current through Register Vol. 48, No. 28, July 12, 2024
a) Nature and Rate of Tax
An annual surcharge is imposed upon each operator who operates
				a live adult entertainment facility in this State. By January 20, 2014, and by
				January 20 of each year thereafter, each operator shall elect to pay the
				surcharge according to one of the two methods set forth in this Section.
1) An operator who elects to be subject to
			 this subsection (a)(1) shall pay to the Department a surcharge imposed upon
			 admissions to a live adult entertainment facility operated by the operator in
			 this State in an amount equal to $3 per person admitted to that live adult
			 entertainment facility. This subsection (a)(1) does not require a live
			 entertainment facility to impose a fee on a customer of the facility. An
			 operator has the discretion to determine the manner in which the facility
			 derives the moneys required to pay the surcharge imposed under this Section. In
			 the event that an operator has not filed the applicable returns under ROTAfor a
			 full calendar year prior to any January 20, then the operator shall pay the
			 surcharge pursuant to this subsection (a)(1) for moneys owed to the Department
			 subject to the Act for the previous calendar year.
2) An operator may, in the alternative, pay
			 to the Department the surcharge as follows:
A) If the gross receipts received by the live
			 adult entertainment facility during the preceding calendar year, upon the basis
			 of which a tax is imposed under Section 2 of ROTA, are equal to or greater than
			 $2,000,000 during the preceding calendar year, the operator shall pay the
			 Department a surcharge of $25,000.
B) If the gross receipts received by the live
			 adult entertainment facility during the preceding calendar year, upon the basis
			 of which a tax is imposed under Section 2 of ROTA, are equal to or greater than
			 $500,000 but less than $2,000,000 during the preceding calendar year, the
			 operator shall pay to the Department a surcharge of $15,000.
C) If the gross receipts received by the live
			 adult entertainment facility during the preceding calendar year, upon the basis
			 of which a tax is imposed under Section 2 of ROTA, are less than $500,000
			 during the preceding calendar year, the operator shall pay the Department a
			 surcharge of $5,000. [35 ILCS
			 175/10 ]
Illinois Administrative Code › Title 86 - REVENUE › Part 900 - LIVE ADULT ENTERTAINMENT FACILITY SURCHARGE ACT › Section 900.115 - Persons Subject to the Surcharge

Current through Register Vol. 48, No. 28, July 12, 2024
a) An annual surcharge is imposed upon each
			 operator who operates a live adult entertainment facility in this State
			 [35 ILCS
			 175/10 ].
b) The Act applies to operators of live adult
			 entertainment facilities.
1) The operator for
			 purposes of the Act is the person or entity that has managerial and operational
			 control of the live adult entertainment facility and retains the revenues from
			 the operations.
2) An owner that
			 contracts with an entity to manage a live adult entertainment facility and pays
			 the entity a contractual sum to manage the facility is the operator for
			 purposes of the Act.
3) A lessor of
			 the real property is not an operator for purposes of the Act if the lessor has
			 leased the premises to a lessee that operates the live adult entertainment
			 facility and the lessor has no interest in the proceeds derived from the live
			 adult entertainment facility except for payments due under the terms of the
			 lease.
4) A person having a
			 security interest in the real estate upon which the live adult entertainment
			 facility is located, the building that houses the live adult entertainment
			 facility, or the contents or fixtures located on the premises, is not an
			 operator for purposes of the Act.
Illinois Administrative Code › Title 86 - REVENUE › Part 900 - LIVE ADULT ENTERTAINMENT FACILITY SURCHARGE ACT › Section 900.120 - Returns

Current through Register Vol. 48, No. 28, July 12, 2024
a) Payment of
			 Surcharge Based on Admissions
1) For each
			 live adult entertainment facility paying the surcharge based on admissions, the
			 operator must file a return electronically as provided by the Department and
			 remit payment to the Department on an annual basis no later than January 20
			 covering the previous calendar year. Each return made to the Department must
			 state the following:
A) the name of the
			 operator;
B) the address of the
			 live adult entertainment facility and the address of the principal place of
			 business (if that is a different address) of the operator;
C) the total number of admissions to the
			 facility in the preceding calendar year; and
D) the total amount of surcharge collected in
			 the preceding calendar year. [35 ILCS
			 175/10 ]
Illinois Administrative Code › Title 86 - REVENUE › Part 900 - LIVE ADULT ENTERTAINMENT FACILITY SURCHARGE ACT › Section 900.125 - Books and Records

Current through Register Vol. 48, No. 28, July 12, 2024
a) Every
			 operator electing to pay the surcharge pursuant to Section
			 900.110(a)(1)
			 shall record the admissions of customers subject to the surcharge under the Act
			 [35 ILCS 175/20
			 ]. An operator meets its obligations under this subsection if an employee
			 located at the entrance of the live adult entertainment facility sells tickets
			 to customers entering the facility and collects them from the customers after
			 entry to the facility and the operator maintains a daily record of ticket sales
			 in his or her books and records.
b)
			 A customer that enters and leaves the facility on multiple occasions need only
			 be counted once by an operator during a 24-hour period, beginning at 8 AM each
			 day, for purposes of the surcharge, if the operator uses a method to verify the
			 customer previously has been counted upon reentry. The method selected may not
			 permit the customer to transfer re-entry privileges to another customer. The
			 following are acceptable, but not exclusive, methods of verification:
1) the use of a stamp with indelible ink, the
			 color of which changes daily at 8 AM; or
2) a card permitting re-entry by the customer
			 upon which the date and customer's name have been written with indelible ink
			 and that matches a customer's government-issued identification upon
			 re-entry.