Illinois Administrative Code
Title 86 - REVENUE
Part 100 - INCOME TAX
Subpart Y - NOTICE AND DEMAND
Section 100.9100 - Notice and Demand (IITA Section 902)
Universal Citation: 86 IL Admin Code ยง 100.9100
Current through Register Vol. 48, No. 38, September 20, 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.
b) Judicial review
1) In general. If a notice of deficiency has
been issued and deemed assessed under IITA Section 903(a)(2) and the person (or
persons) liable for the tax has filed a timely protest under IITA Section 908,
notice and demand respecting such assessment shall not be made until all
proceedings in court for review of the assessment have terminated or the time
for taking thereof has expired without such proceedings being
instituted.
2) Protest of notice of
deficiency. IITA Section 908 provides that after a notice of deficiency is
issued the taxpayer may file a protest against it within 60 days (150 days if
the taxpayer is outside the United States). The Department's action on the
protest, if no hearing was requested, becomes final 30 days after the mailing
of a notice of decision. If a hearing was requested, the Department's action
becomes final 30 days after the mailing of a notice of decision unless a
rehearing is requested within that 30-day period. If, within that 30-day
period, the taxpayer requests a rehearing on the decision, the Department's
action becomes final either upon its issuance (within 10 days after the
rehearing request is received) of a denial of the request or, if such denial is
not issued within that 10-day period, upon the Department's issuance (as soon
as practicable) of a notice of final decision. (See Section
100.9200
and this Section
100.9100.)
3) Administrative Review of decisions. IITA
Section 1201 states that the provisions of the Administrative Review Act and
rules adopted pursuant thereto shall apply to and govern all proceedings for
the judicial review of the Department's final actions under IITA Sections
908(d) and 910(d). Section 4 of that Act states that every action to review a
final administrative decision shall be commenced by the filing of a complaint
and the issuance of summons within 35 days from the date of service on the
party affected of a copy of the decision sought to be reviewed.
c) Action for recovery of taxes
1) In general. The Department, at any time
that levy proceedings may be timely commenced under IITA Section 1109,
regardless of whether a notice of lien was filed under the provisions of
Section 1103 may bring an action in any court of competent jurisdiction within
or without this state to recover the amount of unpaid taxes, penalties, and
interest due under the Act. For purposes of such action, certification by the
Department of the correctness of the amount of any deficiency, its assessment,
and of its procedural compliance with all provisions of the Act shall
constitute prima facie evidence of such correctness, assessment, and procedural
compliance.
2) Levy and sale
authorized. If tax due under the Act remains unpaid for 10 days after issuance
of a notice and demand for payment and no review proceedings have been
commenced, then under IITA Section 1109, the Department may institute levy and
sale proceedings against real and personal property of the taxpayer within 20
years after the filing (under IITA Section 1103) of a notice of lien.
3) Liens. Under IITA Sections 1102 and 1103,
the Department may file a notice of regular lien or jeopardy assessment lien
respecting the amount due of unpaid tax and penalty (plus interest due and
unpaid at the time the notice of lien is filed) in the office of the Recorder
of Deeds in the county in which the property (real or personal) subject to the
lien is located. If title to land to be affected by the lien notice is
registered under the May 1, 1897 Act concerning land titles mentioned in IITA
Section 1103, the notice is to be filed in the office of the Registrar of
Titles of the county in which the property subject to the lien is situated.
(See also IITA Section 1109.)
Disclaimer: These regulations may not be the most recent version. Illinois may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.