Bill Text: IL SB1901 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act and the Retailers' Occupation Tax Act. Eliminates the bulk sales notice requirement if the only asset sold or transferred is real estate. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2023-02-09 - Referred to Assignments [SB1901 Detail]
Download: Illinois-2023-SB1901-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | |||||||||||||||||||||
5 | changing Section 902 as follows:
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6 | (35 ILCS 5/902) (from Ch. 120, par. 9-902)
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7 | Sec. 902. Notice and demand. | |||||||||||||||||||||
8 | (a) In general. Except as provided in subsection (b) the | |||||||||||||||||||||
9 | Director shall,
as soon as practicable after an amount payable | |||||||||||||||||||||
10 | under this Act is deemed
assessed (as provided in Section | |||||||||||||||||||||
11 | 903), give notice to each person liable
for any unpaid portion | |||||||||||||||||||||
12 | of such assessment, stating the amount unpaid and
demanding | |||||||||||||||||||||
13 | payment thereof. In the case of tax deemed assessed with the
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14 | filing of a return, the Director shall give notice no later | |||||||||||||||||||||
15 | than 3 years
after the date the return was filed. Upon receipt | |||||||||||||||||||||
16 | of any notice and demand
there shall be paid
at the place and | |||||||||||||||||||||
17 | time stated in such notice the amount stated in such
notice. | |||||||||||||||||||||
18 | Such notice shall be left at the dwelling or usual place of | |||||||||||||||||||||
19 | business
of such person or shall be sent by mail to the | |||||||||||||||||||||
20 | person's last known address.
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21 | (b) Judicial review. In the case of a deficiency deemed | |||||||||||||||||||||
22 | assessed under
Section 903(a)(2) after the filing of a | |||||||||||||||||||||
23 | protest, notice and demand shall
not be made with respect to |
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1 | such assessment until all proceedings in court
for the review | ||||||
2 | of such assessment have terminated or the time for the
taking | ||||||
3 | thereof has expired without such proceedings being instituted.
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4 | (c) Action for recovery of taxes. At any time that the | ||||||
5 | Department might
commence proceedings for a levy under Section | ||||||
6 | 1109, regardless of whether a
notice of lien was filed under | ||||||
7 | the provisions of Section 1103, it may bring an
action in any | ||||||
8 | court of competent jurisdiction within or without this State
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9 | in the name of the people of this State to recover the amount | ||||||
10 | of any taxes,
penalties and interest due and unpaid under this | ||||||
11 | Act. In such action, the
certificate of the Department showing | ||||||
12 | the amount of the delinquency shall
be prima facie evidence of | ||||||
13 | the correctness of such amount, its assessment
and of the | ||||||
14 | compliance by the Department with all the provisions of this | ||||||
15 | Act.
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16 | (d) Sales or transfers outside the usual course of
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17 | business-Report-Payment of Tax - Rights and duties of | ||||||
18 | purchaser or
transferee - penalty. If any taxpayer, outside | ||||||
19 | the usual course of his
business, sells or transfers the major | ||||||
20 | part of any one or more of (A) the
stock of goods which he is | ||||||
21 | engaged in the business of selling, or (B) the
furniture or | ||||||
22 | fixtures, or (C) the machinery and equipment, or (D) the real
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23 | property, of any business that is subject to the provisions of | ||||||
24 | this Act,
the purchaser or transferee of such assets shall, no | ||||||
25 | later than 10 business days
before the sale or transfer, file a | ||||||
26 | notice of sale or transfer of business
assets with the
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1 | Department disclosing the name and address of the
seller or | ||||||
2 | transferor, the
name and address of the purchaser or | ||||||
3 | transferee, the date of the sale or
transfer, a copy of the | ||||||
4 | sales contract and financing agreements which shall
include a | ||||||
5 | description of the property sold or transferred, the amount of
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6 | the purchase price or a statement of other consideration for | ||||||
7 | the sale or
transfer, and the terms for payment of the purchase | ||||||
8 | price, and such other
information as the Department may | ||||||
9 | reasonably require. The notice described in this subsection | ||||||
10 | (d) is not required if the only asset sold or transferred is | ||||||
11 | real estate. If the purchaser or
transferee fails to file the | ||||||
12 | above described notice of sale with the
Department within the | ||||||
13 | prescribed time, the purchaser or transferee shall be
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14 | personally liable to the Department for the amount
owed | ||||||
15 | hereunder by the seller or transferor
but unpaid, up to the
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16 | amount of the reasonable value of the property acquired by the | ||||||
17 | purchaser or
transferee. The purchaser or transferee shall pay | ||||||
18 | the Department the
amount of tax, penalties, and interest owed | ||||||
19 | by the seller or transferor
under this Act, to the extent they | ||||||
20 | have
not been paid by the seller or transferor. The seller or | ||||||
21 | transferor, or
the purchaser or transferee, at least 10 | ||||||
22 | business days before the date of the sale
or transfer, may | ||||||
23 | notify the Department of the intended sale or transfer
and | ||||||
24 | request the Department to make a determination as to whether | ||||||
25 | the seller
or transferor owes any
tax, penalty or
interest due | ||||||
26 | under this Act. The Department shall take such steps as may
be |
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1 | appropriate to comply with such request.
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2 | Any order issued by the Department pursuant to this | ||||||
3 | Section to withhold
from the purchase price shall be issued | ||||||
4 | within 10 business days after the Department
receives | ||||||
5 | notification of a sale as provided in this Section.
The | ||||||
6 | purchaser or transferee shall withhold such portion of
the | ||||||
7 | purchase price
as may be directed by the Department, but not to | ||||||
8 | exceed a
minimum amount varying by type of business, as | ||||||
9 | determined by the Department
pursuant to regulations, plus | ||||||
10 | twice the outstanding unpaid liabilities and
twice the average | ||||||
11 | liability of preceding filings times the number of
unfiled | ||||||
12 | returns which were not filed when due,
to cover the amount of | ||||||
13 | all tax, penalty, and interest due and
unpaid by the seller or | ||||||
14 | transferor under this Act or, if the payment of
money or | ||||||
15 | property is not involved, shall withhold the performance of | ||||||
16 | the
condition that constitutes the consideration for the sale | ||||||
17 | or transfer.
Within 60 business days after issuance of
the | ||||||
18 | initial order to withhold, the Department shall provide | ||||||
19 | written notice
to the purchaser or transferee of the actual | ||||||
20 | amount of all taxes, penalties
and interest then due and | ||||||
21 | whether or not additional amounts may become due
as a result of | ||||||
22 | unpaid taxes required to be withheld by an employer, returns
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23 | which were not filed when due, pending assessments and audits | ||||||
24 | not
completed. The purchaser or transferee shall continue to | ||||||
25 | withhold the
amount directed to be withheld by the initial | ||||||
26 | order or such lesser amount
as is specified by the final |
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1 | withholding order or to withhold the
performance of the | ||||||
2 | condition which constitutes the consideration for the
sale or | ||||||
3 | transfer
until
the purchaser or transferee receives from the | ||||||
4 | Department a certificate showing
that no unpaid tax, penalty | ||||||
5 | or interest is due from the seller
or transferor under this | ||||||
6 | Act.
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7 | The purchaser or transferee is relieved of any duty to | ||||||
8 | continue to
withhold from the purchase price and of any | ||||||
9 | liability for tax, penalty,
or interest due hereunder from the | ||||||
10 | seller or transferor if the Department
fails to notify the | ||||||
11 | purchaser or transferee in the manner provided
herein of the | ||||||
12 | amount to be withheld
within 10 business days after the sale or | ||||||
13 | transfer has been reported to the
Department or within 60 | ||||||
14 | business days after issuance of the initial order to
withhold, | ||||||
15 | as the case may be.
The Department shall have the right to | ||||||
16 | determine
amounts claimed on an estimated basis to allow for | ||||||
17 | periods for which
returns were not filed when due, pending | ||||||
18 | assessments and audits not
completed, however the purchaser or | ||||||
19 | transferee shall be personally liable
only for the actual | ||||||
20 | amount due when determined.
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21 | If the seller or transferor has failed to pay the tax, | ||||||
22 | penalty, and
interest due from him hereunder and the | ||||||
23 | Department makes timely
claim therefor against the purchaser | ||||||
24 | or transferee as hereinabove provided,
then the purchaser
or | ||||||
25 | transferee shall pay to the Department the amount so withheld | ||||||
26 | from the
purchase price. If the purchaser or transferee fails |
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1 | to comply with the
requirements of this Section, the purchaser | ||||||
2 | or transferee shall be
personally liable to the Department for | ||||||
3 | the amount owed hereunder by
the seller or transferor up to the | ||||||
4 | amount of the reasonable
value of the property acquired by the | ||||||
5 | purchaser or transferee.
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6 | Any person who shall acquire any property or rights | ||||||
7 | thereto which, at the
time of such acquisition, is subject to a | ||||||
8 | valid lien in favor of the
Department, shall be personally | ||||||
9 | liable to the Department for a sum equal to
the amount of | ||||||
10 | taxes, penalties and interests, secured by such lien, but not
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11 | to exceed the reasonable value of such property acquired by | ||||||
12 | him.
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13 | (Source: P.A. 102-40, eff. 6-25-21.)
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14 | Section 10. The Retailers' Occupation Tax Act is amended | ||||||
15 | by changing Section 5j as follows:
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16 | (35 ILCS 120/5j) (from Ch. 120, par. 444j)
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17 | Sec. 5j. If any taxpayer, outside the usual course of his | ||||||
18 | business, sells or
transfers the major part of any one or more | ||||||
19 | of (A) the stock of goods which
he is engaged in the business | ||||||
20 | of selling, or (B) the furniture or fixtures,
(C) the | ||||||
21 | machinery and equipment, or (D) the real property, of
any | ||||||
22 | business that is subject to the
provisions of this Act, the | ||||||
23 | purchaser or transferee of such asset shall,
no later than 10 | ||||||
24 | business days prior to the sale or transfer, file a
notice of |
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1 | sale or transfer of business assets with the Department | ||||||
2 | disclosing the
name and address of the seller
or transferor, | ||||||
3 | the name and address of the purchaser or transferee, the
date | ||||||
4 | of the sale or transfer, a copy of the sales contract and | ||||||
5 | financing
agreements which shall include a description of the | ||||||
6 | property sold, the
amount of the purchase price or a statement | ||||||
7 | of other consideration for
the sale or transfer, the terms for | ||||||
8 | payment of the purchase price, and
such other information as | ||||||
9 | the Department
may reasonably require. The notice described in | ||||||
10 | this paragraph is not required if the only asset sold or | ||||||
11 | transferred is real estate. If the purchaser or transferee | ||||||
12 | fails to file the
above described notice of sale with the | ||||||
13 | Department within the prescribed
time, the purchaser or | ||||||
14 | transferee shall be personally liable for the amount
owed | ||||||
15 | hereunder by the seller or transferor to the Department up to | ||||||
16 | the
amount of the reasonable value of the property acquired by | ||||||
17 | the purchaser or
transferee. The seller or transferor shall | ||||||
18 | pay the Department
the amount of tax, penalty and interest (if | ||||||
19 | any) due from him under this
Act up to the date of the payment | ||||||
20 | of tax. The seller or
transferor, or the purchaser
or | ||||||
21 | transferee, at least 10 business days before the date of the | ||||||
22 | sale or transfer,
may notify the Department of the intended | ||||||
23 | sale or transfer and request the
Department to audit the books | ||||||
24 | and records of the seller or transferor, or
to do whatever else | ||||||
25 | may be necessary to determine how much the seller or
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26 | transferor owes to the Department hereunder up to the date of |
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1 | the sale or
transfer. The Department shall take such steps as | ||||||
2 | may be appropriate to
comply with such request.
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3 | Any order issued by the Department pursuant to this | ||||||
4 | Section to withhold
from the purchase price shall be issued | ||||||
5 | within 10 business days after the Department
receives | ||||||
6 | notification of a sale as provided in this Section.
The | ||||||
7 | purchaser or transferee shall withhold such portion of
the | ||||||
8 | purchase price
as may be directed by the Department, but not to | ||||||
9 | exceed a
minimum amount varying by type of business, as | ||||||
10 | determined by the Department
pursuant to regulations, plus | ||||||
11 | twice the outstanding unpaid liabilities and
twice the average | ||||||
12 | liability of preceding filings times the number of
unfiled | ||||||
13 | returns,
to cover the amount of all tax, penalty and interest | ||||||
14 | due and unpaid by the
seller or transferor under this Act or, | ||||||
15 | if the payment of money or property
is not involved, shall | ||||||
16 | withhold the performance of the condition that
constitutes the | ||||||
17 | consideration for the sale or transfer. Within 60
business | ||||||
18 | days after issuance of the initial order to
withhold, the | ||||||
19 | Department shall provide written notice to the purchaser or
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20 | transferee of the actual amount of all taxes, penalties and | ||||||
21 | interest then
due and whether or not additional amounts may | ||||||
22 | become due as a result of
unfiled returns, pending assessments | ||||||
23 | and audits not completed. The
purchaser or transferee shall | ||||||
24 | continue to withhold the amount directed to
be withheld by the | ||||||
25 | initial order or such lesser amount as is specified by
the | ||||||
26 | final withholding order or to withhold the performance of the |
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1 | condition
which constitutes the consideration for the sale or | ||||||
2 | transfer
until the
purchaser or transferee receives from the | ||||||
3 | Department a certificate showing
that such tax,
penalty and | ||||||
4 | interest have been paid or a certificate from the Department
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5 | showing that no tax, penalty or interest is due from the seller | ||||||
6 | or
transferor under this Act.
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7 | The purchaser or transferee is relieved of any duty to | ||||||
8 | continue to withhold from the
purchase price and of any | ||||||
9 | liability for tax, penalty or interest due
hereunder from the | ||||||
10 | seller or transferor if the Department fails to notify
the | ||||||
11 | purchaser or transferee in the manner provided herein of the | ||||||
12 | amount
to be withheld within 10 business days after the sale
or | ||||||
13 | transfer has been reported to the Department or within 60 | ||||||
14 | business days after
issuance of the initial order to withhold, | ||||||
15 | as the case may be.
The Department shall have the right to | ||||||
16 | determine amounts claimed on an
estimated basis to allow for | ||||||
17 | non-filed periods, pending assessments and
audits not | ||||||
18 | completed, however the purchaser or transferee shall be
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19 | personally liable only for the actual amount due when | ||||||
20 | determined.
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21 | If the seller or transferor fails to pay the tax, penalty | ||||||
22 | and interest
(if any) due from him hereunder and the | ||||||
23 | Department makes timely claim
therefor against the purchaser | ||||||
24 | or transferee as hereinabove provided, then
the purchaser or | ||||||
25 | transferee shall pay the amount so withheld from the
purchase | ||||||
26 | price to the Department. If the purchaser or transferee fails |
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1 | to
comply with the requirements of this Section, the purchaser | ||||||
2 | or transferee
shall be personally liable to the Department for | ||||||
3 | the amount owed hereunder
by the seller or transferor to the | ||||||
4 | Department up to the amount of the
reasonable value of the | ||||||
5 | property acquired by the purchaser or transferee.
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6 | Any person who shall acquire any property or rights | ||||||
7 | thereto which, at
the time of such acquisition, is subject to a | ||||||
8 | valid lien in favor of the
Department shall be personally | ||||||
9 | liable to the Department for a sum equal to
the amount of taxes | ||||||
10 | secured by such lien but not to exceed the reasonable
value of | ||||||
11 | such property acquired by him.
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12 | (Source: P.A. 100-1171, eff. 1-4-19.)
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13 | Section 99. Effective date. This Act takes effect upon | ||||||
14 | becoming law.
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