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| Public Act 099-0641 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Short title. This Act may be cited as the State | ||||
Tax Preparer Oversight Act. | ||||
Section 5. Definitions. As used in this Act: | ||||
"Department" means the Department of Revenue. | ||||
"Income tax return preparer" has the meaning ascribed to | ||||
that term in Section
1501 of the Illinois Income Tax Act. | ||||
"PTIN" means a Preparer Tax Identification Number, as | ||||
defined in Internal Revenue Service Notice 2011-6. | ||||
Section 10. Powers and duties of the Department. | ||||
(a) For taxable years beginning on or after January 1, | ||||
2017, the Department shall, by rule, require any income tax | ||||
return preparer, as defined in Section
1501 of the Illinois | ||||
Income Tax Act, to include his or her PTIN on any tax return | ||||
prepared by the income tax return preparer and filed under the | ||||
Illinois Income Tax Act or any claim for refund of tax imposed | ||||
by the Illinois Income Tax Act. | ||||
(b) The Department shall develop and by rule implement a | ||||
program using the PTIN as an oversight mechanism to assess | ||||
returns, to identify high error rates, patterns of suspected | ||||
fraud, and unsubstantiated basis for tax positions by income | ||
tax return preparers. | ||
(c) The Department shall, by rule, establish formal and | ||
regular communication protocols with the Commissioner of the | ||
Internal Revenue Service to share and exchange PTIN information | ||
on income tax return preparers who are suspected of fraud, | ||
disciplined, or barred from filing tax returns with the | ||
Department or the Internal Revenue Service. The Department may, | ||
by rule, establish additional communication protocols with | ||
other states to exchange similar enforcement or discipline | ||
information. | ||
Section 15. Enforcement. | ||
(a) The Department may investigate the actions of any | ||
income tax return preparer doing business in the State and may | ||
bar or suspend an income tax return preparer from filing | ||
returns with the Department for good cause. | ||
(b) In addition to any other penalty provided by law, any | ||
individual or person violating this Act by failing to provide | ||
his or her PTIN shall pay a civil penalty to the Department in | ||
the amount of $50 per offense, but not to exceed $25,000 per | ||
calendar year; however, no such penalty shall be imposed if it | ||
is shown that the failure is due to reasonable cause and not | ||
due to willful neglect, as determined by the Department. | ||
(c) The Department shall, before taking any disciplinary | ||
action against an income tax return preparer under this | ||
Section, hold a hearing in accordance with this Act. The | ||
Department shall,
at least 30 days before the date set for the | ||
hearing, (i) notify the accused in writing of the charges made | ||
and the time and place for the hearing on the charges, (ii) | ||
direct him or her to file a written answer to the charges with | ||
the Department under oath within 20 days after the service on | ||
him or her of the notice, and (iii) inform the accused that, if | ||
he or she fails to answer, disciplinary action shall be taken | ||
against him or her, as the Department may consider proper. | ||
(d) At the time and place fixed in the notice, the | ||
Department shall proceed to hear the charges and the parties or | ||
their counsel shall be accorded ample opportunity to present | ||
any pertinent statements, testimony, evidence, and arguments. | ||
The Department may continue the hearing from time to time.
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(e) In case the person, after receiving the notice, fails | ||
to file an answer, he or she may be subject to the disciplinary | ||
action set forth in the notice. The written notice may be | ||
served by registered or certified mail to the person's address | ||
of record. | ||
(f) All final administrative decisions of the Department | ||
under this Section shall be subject to judicial review pursuant | ||
to the provisions of the Administrative Review Law. The term | ||
"administrative decision" is defined as in Section 3-101 of the | ||
Code of Civil Procedure. Proceedings for judicial review shall | ||
be commenced in the Circuit Court of the county in which the | ||
party applying for review resides; provided, that if such party | ||
is not a resident of this State, the venue shall be in Sangamon | ||
or Cook County.
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(g) The Department shall not be required to certify any | ||
record to the court or file any answer in court or otherwise | ||
appear in any court in a judicial review proceeding, unless and | ||
until the Department has received from the plaintiff payment of | ||
the costs of furnishing and certifying the record, which costs | ||
shall be established by the Department. Exhibits shall be | ||
certified without cost. Failure on the part of the plaintiff to | ||
file such receipt in court shall be grounds for dismissal of | ||
the action. | ||
Section 20. Rules. The Department shall adopt rules | ||
consistent with the provisions of this Act for the | ||
administration and enforcement of this Act. | ||
Section 85. The Illinois Income Tax Act is amended by | ||
changing Section 503 as follows:
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(35 ILCS 5/503) (from Ch. 120, par. 5-503)
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Sec. 503. Signing of Returns and Notices.
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(a) Signature presumed authentic. The fact that an | ||
individual's name
is signed to a return or notice shall be | ||
prima facie evidence for all
purposes that such document was | ||
actually signed by such individual. If a
return is prepared by | ||
an income tax return preparer for a taxpayer, that
preparer | ||
shall sign the return as the preparer of that return and | ||
include his or her PTIN, as defined in the State Tax Preparer | ||
Oversight Act, on the return.
If a return is transmitted to the | ||
Department electronically, the
Department may presume that the | ||
electronic return originator has obtained
and is transmitting a | ||
valid signature document pursuant to the rules
promulgated by | ||
the Department for the electronic filing of tax returns, or
the | ||
Department may authorize electronic return originators to | ||
maintain the
signature documents and associated documentation, | ||
subject to the Department's
right of inspection at any time | ||
without notice, rather than transmitting those
documents to the | ||
Department, and
the Department may process the return.
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(b) Corporations. A return or notice required of a | ||
corporation shall
be signed by the president, vice-president, | ||
treasurer or any other officer
duly authorized so to act or, in | ||
the case of a limited liability company, by
a manager or | ||
member. In the case of a return or notice made for a
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corporation by a fiduciary pursuant to the provisions of | ||
section 502(b)
(4), such fiduciary shall sign such document. | ||
The fact that an
individual's name is signed to a return or | ||
notice shall be prima facie
evidence that such individual is | ||
authorized to sign such document on behalf
of the corporation.
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(c) Partnerships. A return or notice of a partnership shall | ||
be signed
by any one of the partners or, in the case of a | ||
limited liability company, by
a manager or member. The fact | ||
that a partner's name is signed to a
return or notice shall be | ||
prima facie evidence that such individual is
authorized to sign | ||
such document on behalf of the partnership or limited
liability | ||
company.
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(d) Joint fiduciaries. A return or notice signed by one of | ||
two or
more joint fiduciaries will comply with the requirements | ||
of this Act. The
fact that a fiduciary's name is signed to such | ||
document shall be prima
facie evidence that such fiduciary is | ||
authorized to sign such document on
behalf of the person from | ||
whom it is required.
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(e) Failure to sign a return. If a taxpayer fails to sign a | ||
return
within 30 days after proper notice and demand for | ||
signature by
the
Department, the return shall be considered | ||
valid and any amount shown to be
due on the return shall be | ||
deemed assessed. Any overpayment of tax shown
on the face of an | ||
unsigned return shall be considered forfeited if after
notice | ||
and demand for signature by the Department the taxpayer fails | ||
to
provide a signature and 3 years have passed from the date | ||
the return was
filed. An overpayment of tax refunded to a | ||
taxpayer whose return was
filed electronically shall be | ||
considered an erroneous refund under Section
912 of this Act | ||
if, after proper notice and demand by the
Department, the | ||
taxpayer fails to provide a required signature document.
A | ||
notice and demand for signature in the case of a return
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reflecting an overpayment may be made by first class mail. This | ||
subsection
(e) shall apply to all returns filed pursuant to the | ||
Illinois Income Tax Act
since 1969.
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(Source: P.A. 88-480; 88-672, eff. 12-14-94; 89-379, eff. | ||
1-1-96; 89-399,
eff. 8-20-95; 89-626, eff. 8-9-96.)
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