Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart Y - NOTICE AND DEMAND › Section 100.9100 - Notice and Demand (IITA Section 902)

Current through Register Vol. 48, No. 28, July 12, 2024
a) In general
1) Notice required. Except as provided in
				subsection (b) below, the Director or his delegate shall issue written notice
				and demand for payment for any unpaid portion of taxes, penalties, and interest
				imposed by the Act as soon as practicable after an amount payable thereunder
				has been deemed assessed. The written notice (see IITA Section 1402) shall be
				given to the person or persons liable for the unpaid amount and shall state a
				time and place for payment. (Effective for taxable years ending after December
				30, 1973, the written notice shall be sent by first class mail or left at the
				person's (or persons') usual place of business.)
2) Tax shown as due on returns. IITA Section
				601(a) requires that a taxpayer pay (without notice or demand) the amount of
				tax shown on a return which remains unpaid after taking into account certain
				amounts enumerated in IITA Section 601(b).
3) Self-assessment; mathematical errors. IITA
				Section 903(a)(1) and (4) provides that the amount of tax shown due on a return
				or on an amended return increasing the tax shall be deemed assessed as of the
				date the return is filed but that, irrespective of other provisions, any amount
				paid as tax or in respect of tax paid under the Act other than amounts withheld
				or paid as estimated tax under Articles 7 or 8 shall be deemed assessed upon
				the date of receipt of payments. If as a result of a mathematical error the
				amount of tax shown on a return or on such amended return is understated, the
				Department is to notify the taxpayer that the portion of the correct amount of
				tax in excess of that shown on the return has been (deemed) assessed is due.
				Also, thereunder, the tax computed by the Department on a return properly filed
				without the tax computation is to be deemed assessed as of the date when
				payment is due.
4) Notice of
				deficiency as prerequisite to assessment. Inasmuch as the tax deemed assessed
				in each of the above instances is based on the facts reported in the return or
				amended return filed by the taxpayer, any notice and demand issued to effect
				immediate collection of the tax remaining unpaid in connection therewith is not
				considered to be a notice of deficiency as that term is used in IITA Section
				903(a)(2). However, a notice of deficiency is a prerequisite for assessment if
				the taxpayer fails to file a tax return and under the authorization in IITA
				Section 904(b) the Department determines the amount of tax and penalties due
				according to its best judgment and information.
5) Interest
A) Prior to January 1, 1994, IITA Section
				1003(a) and (e) provides that interest at the rate of 9% per annum (or at such
				adjusted rate as is established under Section 6621(b) of the Internal Revenue
				Code) is to be paid on any amount of tax imposed by the Act not paid on or
				before the date prescribed for payment thereof except that, if paid within 10
				days after the date of issuance of notice and demand therefor, interest is not
				to be imposed for the period after the notice and demand issuance date.
				Interest begins with the date of issuance of the notice and demand on any
				penalty not paid within the 10-day period. (See IITA Sections 601(a) and
				1003.)
B) On and after January 1,
				1994, IITA Section 1003(a) provides that interest shall be paid in the manner
				and at the rate prescribed in Section 3-2 of the UPIA for the period from such
				date to the date of payment of such amount. Section 3-2(c) of the UPIA provides
				that if notice and demand is made for the payment of any amount of tax due and
				if the amount due is paid within 30 days after the date of such notice and
				demand, interest on the amount so paid shall not be imposed for the period
				after the date of the notice and demand.