Illinois Administrative Code › Title 86 - REVENUE › Part 850 - LOCAL GOVERNMENT REVENUE RECAPTURE ACT AND CERTIFIED AUDIT PILOT PROGRAM › Section 850.110 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Audit" means an agreed-upon procedures engagement in
				accordance with Statements on Standards for Attestation Engagements (AICPA
				Professional Standards, AT-C Section 315 (Compliance
				Attestation)).
"Certification program" means an instructional
				curriculum, examination, and process for certification, recertification, and
				revocation of certification of certified public accountants that is
				administered by the Department with the assistance of the Illinois CPA Society
				and that is officially approved by the Department to ensure that a certified
				public accountant possesses the necessary skills and abilities to successfully
				perform an attestation engagement for a limited-scope tax compliance review in
				a certified audit project under this Act.
"Certified Public Accountant" or "CPA" means any person who has
				been issued a certificate as a certified public accountant from the Illinois
				Board of Examiners and holds a license issued by the Illinois Department of
				Financial and Professional Regulation. (See
				225 ILCS
				450/0.03).
"Department" means the Department of
				Revenue.
"Family member" means the following, whether by whole
				blood, half-blood, or adoption:
a parent or step-parent;
a child or step-child;
a grandparent or step-grandparent;
an aunt, uncle, great-aunt, or
				great-uncle;
a niece, nephew, great-niece, or
				great-nephew;
a sibling;
a spouse or domestic partner; and
the spouse or domestic partner of any person referenced
				in
this definition. [50 ILCS 355/10-15 ]
"Financial information"
means
the
				information provided to the municipality or county by the Department under
				Section 11 of the Retailers' Occupation Tax Act that is reported to the
				Department by a business located in a given municipality or county.
Financial information is
limited to:
the business name;
the business address;
the standard classification number assigned to the
				business;
net revenue distributed to the municipality or county
				that is directly related to the municipality's or county's local share of the
				proceeds under the Use Tax Act, the Service Use Tax Act, the Service Occupation
				Tax Act, and the Retailers' Occupation Tax Act distributed from the Local
				Government Tax Fund, and, if applicable, any locally imposed retailers'
				occupation tax or service occupation tax; and
a listing of all businesses within the municipality or
				county by account identification number and address.
[35 ILCS
				120/11 ]
"Misallocation" means tax paid by the taxpayer and
				allocated to one unit of local government that should have been allocated to a
				different unit of local government. This includes misallocations discovered by
				a unit of local government through the tax location verification process under
				Section 8-11-16 of the Illinois Municipal Code and misallocations discovered by
				the Department other than through an audit of the taxpayer. "Misallocation"
				does not, however, include any amount reported by a taxpayer on an amended
				return or any amount discovered in an audit of the taxpayer by the Department
				or discovered in an audit of the taxpayer by a qualified practitioner under
				Article 10 of this Act. "Misallocation" also does not include amounts overpaid
				by the taxpayer and therefore not owed to any unit of local government, nor
				amounts underpaid by the taxpayer and therefore not previously allocated to any
				unit of local government.
[50 ILCS
				355/10-15 ]
"Monitoring disbursements" means keeping track of
				payments from the Department by a municipality, county, or third party for the
				limited purpose of tracking previous misallocations.
[50 ILCS
				355/5-5 ]
"Participating taxpayer" means any person subject to
				the revenue laws administered by the Department who is the subject of a tax
				compliance referral by a municipality, county, or third party, who enters into
				an engagement with a qualified practitioner for a limited-scope tax compliance
				review under this Act, and who is approved by the Department under the local
				government revenue recapture certified audit pilot project.
[50 ILCS
				355/10-15 ]
"Person" means an individual, sole proprietorship,
				corporation, registered limited liability partnership, limited liability
				company, partnership, professional service corporation, or any other form of
				organization.
[50 ILCS 355/5-5 ]
"Qualified practitioner" means a certified public
				accountant who is licensed or registered to perform accountancy activities in
				Illinois under Section
				8.05 of the Illinois Public
				Accounting Act and who has met all requirements for the local government
				revenue recapture certified audit training course, achieved the required score
				on the certification test as approved by the Department, and been certified by
				the Department. "Qualified practitioner" does not include a third party, as
				defined by Section 5-5 of this Act, or any employee, contractual employee,
				officer, manager, or director thereof, any person or persons owning in the
				aggregate more than 5% of such third party, or a person who is a family member
				of any person who is employed by or is an appointed or elected member of any
				corporate authorities, as defined in the Illinois Municipal Code.
[50 ILCS
				355/10-15 ]
"Third party" means a person, partnership, corporation,
				or other entity or individual registered to do business in Illinois who
				contracts with a municipality or county to review financial information related
				to the disbursement of local taxes by the Department to the municipality or
				county.
[50 ILCS 355/5-5 ]
For purposes of this definition, "contracts with a municipality
				or county to review financial information related to the disbursement of local
				taxes by the Department to the municipality or county" means that the true
				object of the contract is to ensure that the municipality or county receives
				the correct disbursement from the Department and to monitor
				disbursements.