Illinois Administrative Code › Title 86 - REVENUE › Part 210 - BOARD OF APPEALS; VOLUNTARY DISCLOSURE › Section 210.126 - Voluntary Disclosure

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Statutory Authority. Section 3-10 of the Uniform Penalty and Interest Act sets
			 forth limitation periods for the assessment of taxes by the Illinois Department
			 of Revenue .
In the case of a failure to file a return required by law
			 that is voluntarily disclosed to the Department, in accordance with this
			 Section, the tax may be assessed no more than 4 years after the original due
			 date of each return required to have been filed.
[35 ILCS
			 735/3-10(c)]
b) Taxpayers must voluntarily come forward
			 and disclose. In order for the statute of limitations to be limited to no more
			 than four years under Illinois law, a taxpayer must voluntarily come forward
			 and disclose its liability to the Problems Resolution Division (PRD) of the
			 Taxpayer Services Program. A taxpayer has voluntarily come forward and
			 disclosed its liability to the PRD when it has done the following:
1) The taxpayer files an application for
			 voluntary disclosure. The taxpayer must file an application for voluntary
			 disclosure in a form prescribed by the PRD prior to the date the Department of
			 Revenue has initiated an audit or investigation of the taxpayer. The
			 Application is not accepted by the PRD until it has been approved and signed by
			 a Board of Appeals member. A Board member may not sign the Application until
			 the Department has notified the PRD that the Department had not initiated an
			 audit or investigation of the taxpayer, as those terms are explained in
			 subsection (c)(1), prior to the filing date of the taxpayer's Application with
			 the PRD. The filing date of the taxpayer's Application with the PRD is the date
			 the Application is received by the PRD. Once a Board member has signed the
			 Application, the PRD will furnish the taxpayer with a copy of the executed
			 Application.
2) The taxpayer files
			 returns and pays liability. Once the taxpayer has received a copy of the
			 executed Application, the taxpayer must file Illinois tax returns for the tax
			 being disclosed for the last four years with the PRD and pay all tax and
			 interest within 30 days from the Board of Appeals member's Signature Date . The
			 Board of Appeals member's Signature Date is the date the Board member signs the
			 Application. The taxpayer's determination of its tax liability, including the
			 methodology used by the taxpayer, must be documented and in a manner reviewable
			 by the Department. A taxpayer who maintains that it was not required to file
			 returns and pay tax for the entire four years shall file returns and pay tax
			 for the period that it maintains it was required to do so under Illinois law.
			 In addition, the taxpayer will provide in its Application to the PRD its
			 reasons why it maintains it does not owe tax for the entire voluntary
			 disclosure period (immediately preceding four years). The PRD will determine
			 the number of years (up to the four year maximum) the taxpayer is subject to
			 Illinois tax under voluntary disclosure. The PRD will notify the taxpayer of
			 its decision. The taxpayer will file returns and pay tax for the number of
			 years (up to four years maximum) the PRD has determined the taxpayer is subject
			 to tax under voluntary disclosure. The taxpayer will file any additional
			 returns and pay any additional liability owed within 60 days from the date of
			 notification to the taxpayer. The date of notification is the date shown on the
			 notification sent to the taxpayer by the PRD.