Illinois 2023-2024 Regular Session

Illinois House Bill HB3401 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3401 Introduced , by Rep. Abdelnasser Rashid SYNOPSIS AS INTRODUCED: 35 ILCS 5/514 new 35 ILCS 5/917 from Ch. 120, par. 9-917 Amends the Illinois Income Tax Act. Provides that, for tax years ending on or after December 31, 2024, the Department of Revenue shall print on each standard individual income tax return a single provision that authorizes the Department of Revenue to share the taxpayer's income information with local county assessment officials for the purpose of verifying the taxpayer's income information. Provides that, by April 1, 2025, the office of each chief county assessment officer must interface with the Department's tax system. LRB103 30425 HLH 56855 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3401 Introduced , by Rep. Abdelnasser Rashid SYNOPSIS AS INTRODUCED: 35 ILCS 5/514 new 35 ILCS 5/917 from Ch. 120, par. 9-917 35 ILCS 5/514 new 35 ILCS 5/917 from Ch. 120, par. 9-917 Amends the Illinois Income Tax Act. Provides that, for tax years ending on or after December 31, 2024, the Department of Revenue shall print on each standard individual income tax return a single provision that authorizes the Department of Revenue to share the taxpayer's income information with local county assessment officials for the purpose of verifying the taxpayer's income information. Provides that, by April 1, 2025, the office of each chief county assessment officer must interface with the Department's tax system. LRB103 30425 HLH 56855 b LRB103 30425 HLH 56855 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3401 Introduced , by Rep. Abdelnasser Rashid SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/514 new 35 ILCS 5/917 from Ch. 120, par. 9-917 35 ILCS 5/514 new 35 ILCS 5/917 from Ch. 120, par. 9-917
4	4	35 ILCS 5/514 new
5	5	35 ILCS 5/917 from Ch. 120, par. 9-917
6	6	Amends the Illinois Income Tax Act. Provides that, for tax years ending on or after December 31, 2024, the Department of Revenue shall print on each standard individual income tax return a single provision that authorizes the Department of Revenue to share the taxpayer's income information with local county assessment officials for the purpose of verifying the taxpayer's income information. Provides that, by April 1, 2025, the office of each chief county assessment officer must interface with the Department's tax system.
7	7	LRB103 30425 HLH 56855 b LRB103 30425 HLH 56855 b
8	8	LRB103 30425 HLH 56855 b
9	9	A BILL FOR
10	10	HB3401LRB103 30425 HLH 56855 b HB3401 LRB103 30425 HLH 56855 b
11	11	HB3401 LRB103 30425 HLH 56855 b
12	12	1 AN ACT concerning revenue.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 5. The Illinois Income Tax Act is amended by
16	16	5 adding Sections 514 and 917 as follows:
17	17	6 (35 ILCS 5/514 new)
18	18	7 Sec. 514. Information sharing; county assessors.
19	19	8 (a) For tax years ending on or after December 31, 2024, the
20	20	9 Department shall print on each standard individual income tax
21	21	10 return a single provision that authorizes the Department to
22	22	11 share the taxpayer's income information with local county
23	23	12 assessment officials for the purpose of verifying the
24	24	13 taxpayer's income information. By April 1, 2025, the office of
25	25	14 each chief county assessment officer must interface with the
26	26	15 Department's tax system.
27	27	16 (35 ILCS 5/917) (from Ch. 120, par. 9-917)
28	28	17 Sec. 917. Confidentiality and information sharing.
29	29	18 (a) Confidentiality. Except as provided in this Section,
30	30	19 all information received by the Department from returns filed
31	31	20 under this Act, or from any investigation conducted under the
32	32	21 provisions of this Act, shall be confidential, except for
33	33	22 official purposes within the Department or pursuant to
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3401 Introduced , by Rep. Abdelnasser Rashid SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 5/514 new 35 ILCS 5/917 from Ch. 120, par. 9-917 35 ILCS 5/514 new 35 ILCS 5/917 from Ch. 120, par. 9-917
39	39	35 ILCS 5/514 new
40	40	35 ILCS 5/917 from Ch. 120, par. 9-917
41	41	Amends the Illinois Income Tax Act. Provides that, for tax years ending on or after December 31, 2024, the Department of Revenue shall print on each standard individual income tax return a single provision that authorizes the Department of Revenue to share the taxpayer's income information with local county assessment officials for the purpose of verifying the taxpayer's income information. Provides that, by April 1, 2025, the office of each chief county assessment officer must interface with the Department's tax system.
42	42	LRB103 30425 HLH 56855 b LRB103 30425 HLH 56855 b
43	43	LRB103 30425 HLH 56855 b
44	44	A BILL FOR
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50	50	35 ILCS 5/514 new
51	51	35 ILCS 5/917 from Ch. 120, par. 9-917
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70	70	1 official procedures for collection of any State tax or
71	71	2 pursuant to an investigation or audit by the Illinois State
72	72	3 Scholarship Commission of a delinquent student loan or
73	73	4 monetary award or enforcement of any civil or criminal penalty
74	74	5 or sanction imposed by this Act or by another statute imposing
75	75	6 a State tax, and any person who divulges any such information
76	76	7 in any manner, except for such purposes and pursuant to order
77	77	8 of the Director or in accordance with a proper judicial order,
78	78	9 shall be guilty of a Class A misdemeanor. However, the
79	79	10 provisions of this paragraph are not applicable to information
80	80	11 furnished to (i) the Department of Healthcare and Family
81	81	12 Services (formerly Department of Public Aid), State's
82	82	13 Attorneys, and the Attorney General for child support
83	83	14 enforcement purposes and (ii) a licensed attorney representing
84	84	15 the taxpayer where an appeal or a protest has been filed on
85	85	16 behalf of the taxpayer. If it is necessary to file information
86	86	17 obtained pursuant to this Act in a child support enforcement
87	87	18 proceeding, the information shall be filed under seal. The
88	88	19 furnishing upon request of the Auditor General, or his or her
89	89	20 authorized agents, for official use of returns filed and
90	90	21 information related thereto under this Act is deemed to be an
91	91	22 official purpose within the Department within the meaning of
92	92	23 this Section.
93	93	24 (b) Public information. Nothing contained in this Act
94	94	25 shall prevent the Director from publishing or making available
95	95	26 to the public the names and addresses of persons filing
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106	106	1 returns under this Act, or from publishing or making available
107	107	2 reasonable statistics concerning the operation of the tax
108	108	3 wherein the contents of returns are grouped into aggregates in
109	109	4 such a way that the information contained in any individual
110	110	5 return shall not be disclosed.
111	111	6 (c) Governmental agencies. The Director may make available
112	112	7 to the Secretary of the Treasury of the United States or his
113	113	8 delegate, or the proper officer or his delegate of any other
114	114	9 state imposing a tax upon or measured by income, for
115	115	10 exclusively official purposes, information received by the
116	116	11 Department in the administration of this Act, but such
117	117	12 permission shall be granted only if the United States or such
118	118	13 other state, as the case may be, grants the Department
119	119	14 substantially similar privileges. The Director may exchange
120	120	15 information with the Department of Healthcare and Family
121	121	16 Services and the Department of Human Services (acting as
122	122	17 successor to the Department of Public Aid under the Department
123	123	18 of Human Services Act) for the purpose of verifying sources
124	124	19 and amounts of income and for other purposes directly
125	125	20 connected with the administration of this Act, the Illinois
126	126	21 Public Aid Code, and any other health benefit program
127	127	22 administered by the State. The Director may exchange
128	128	23 information with the Director of the Department of Employment
129	129	24 Security for the purpose of verifying sources and amounts of
130	130	25 income and for other purposes directly connected with the
131	131	26 administration of this Act and Acts administered by the
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142	142	1 Department of Employment Security. The Director may make
143	143	2 available to the Illinois Workers' Compensation Commission
144	144	3 information regarding employers for the purpose of verifying
145	145	4 the insurance coverage required under the Workers'
146	146	5 Compensation Act and Workers' Occupational Diseases Act. The
147	147	6 Director may exchange information with the Illinois Department
148	148	7 on Aging for the purpose of verifying sources and amounts of
149	149	8 income for purposes directly related to confirming eligibility
150	150	9 for participation in the programs of benefits authorized by
151	151	10 the Senior Citizens and Persons with Disabilities Property Tax
152	152	11 Relief and Pharmaceutical Assistance Act. The Director may
153	153	12 exchange information with the State Treasurer's Office and the
154	154	13 Department of Employment Security for the purpose of
155	155	14 implementing, administering, and enforcing the Illinois Secure
156	156	15 Choice Savings Program Act. The Director may exchange
157	157	16 information with the State Treasurer's Office for the purpose
158	158	17 of administering the Revised Uniform Unclaimed Property Act or
159	159	18 successor Acts. The Director may make information available to
160	160	19 the Secretary of State for the purpose of administering
161	161	20 Section 5-901 of the Illinois Vehicle Code. The Director may
162	162	21 exchange information with the State Treasurer's Office for the
163	163	22 purpose of administering the Illinois Higher Education Savings
164	164	23 Program established under Section 16.8 of the State Treasurer
165	165	24 Act. The Director may make individual income tax information
166	166	25 available to the State health benefits exchange, as defined in
167	167	26 Section 513, if the disclosure is authorized by the taxpayer
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178	178	1 pursuant to Section 513.
179	179	2 The Director may make available to any State agency,
180	180	3 including the Illinois Supreme Court, which licenses persons
181	181	4 to engage in any occupation, information that a person
182	182	5 licensed by such agency has failed to file returns under this
183	183	6 Act or pay the tax, penalty and interest shown therein, or has
184	184	7 failed to pay any final assessment of tax, penalty or interest
185	185	8 due under this Act. The Director may make available to any
186	186	9 State agency, including the Illinois Supreme Court,
187	187	10 information regarding whether a bidder, contractor, or an
188	188	11 affiliate of a bidder or contractor has failed to file returns
189	189	12 under this Act or pay the tax, penalty, and interest shown
190	190	13 therein, or has failed to pay any final assessment of tax,
191	191	14 penalty, or interest due under this Act, for the limited
192	192	15 purpose of enforcing bidder and contractor certifications. For
193	193	16 purposes of this Section, the term "affiliate" means any
194	194	17 entity that (1) directly, indirectly, or constructively
195	195	18 controls another entity, (2) is directly, indirectly, or
196	196	19 constructively controlled by another entity, or (3) is subject
197	197	20 to the control of a common entity. For purposes of this
198	198	21 subsection (a), an entity controls another entity if it owns,
199	199	22 directly or individually, more than 10% of the voting
200	200	23 securities of that entity. As used in this subsection (a), the
201	201	24 term "voting security" means a security that (1) confers upon
202	202	25 the holder the right to vote for the election of members of the
203	203	26 board of directors or similar governing body of the business
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214	214	1 or (2) is convertible into, or entitles the holder to receive
215	215	2 upon its exercise, a security that confers such a right to
216	216	3 vote. A general partnership interest is a voting security.
217	217	4 The Director may make available to any State agency,
218	218	5 including the Illinois Supreme Court, units of local
219	219	6 government, and school districts, information regarding
220	220	7 whether a bidder or contractor is an affiliate of a person who
221	221	8 is not collecting and remitting Illinois Use taxes, for the
222	222	9 limited purpose of enforcing bidder and contractor
223	223	10 certifications.
224	224	11 The Director may also make available to the Secretary of
225	225	12 State information that a corporation which has been issued a
226	226	13 certificate of incorporation by the Secretary of State has
227	227	14 failed to file returns under this Act or pay the tax, penalty
228	228	15 and interest shown therein, or has failed to pay any final
229	229	16 assessment of tax, penalty or interest due under this Act. An
230	230	17 assessment is final when all proceedings in court for review
231	231	18 of such assessment have terminated or the time for the taking
232	232	19 thereof has expired without such proceedings being instituted.
233	233	20 For taxable years ending on or after December 31, 1987, the
234	234	21 Director may make available to the Director or principal
235	235	22 officer of any Department of the State of Illinois,
236	236	23 information that a person employed by such Department has
237	237	24 failed to file returns under this Act or pay the tax, penalty
238	238	25 and interest shown therein. For purposes of this paragraph,
239	239	26 the word "Department" shall have the same meaning as provided
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250	250	1 in Section 3 of the State Employees Group Insurance Act of
251	251	2 1971.
252	252	3 The Director may make individual income tax information
253	253	4 available to local county assessment officials, as defined in
254	254	5 Section 514, if the disclosure is authorized by the taxpayer
255	255	6 pursuant to Section 514.
256	256	7 (d) The Director shall make available for public
257	257	8 inspection in the Department's principal office and for
258	258	9 publication, at cost, administrative decisions issued on or
259	259	10 after January 1, 1995. These decisions are to be made
260	260	11 available in a manner so that the following taxpayer
261	261	12 information is not disclosed:
262	262	13 (1) The names, addresses, and identification numbers
263	263	14 of the taxpayer, related entities, and employees.
264	264	15 (2) At the sole discretion of the Director, trade
265	265	16 secrets or other confidential information identified as
266	266	17 such by the taxpayer, no later than 30 days after receipt
267	267	18 of an administrative decision, by such means as the
268	268	19 Department shall provide by rule.
269	269	20 The Director shall determine the appropriate extent of the
270	270	21 deletions allowed in paragraph (2). In the event the taxpayer
271	271	22 does not submit deletions, the Director shall make only the
272	272	23 deletions specified in paragraph (1).
273	273	24 The Director shall make available for public inspection
274	274	25 and publication an administrative decision within 180 days
275	275	26 after the issuance of the administrative decision. The term
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286	286	1 "administrative decision" has the same meaning as defined in
287	287	2 Section 3-101 of Article III of the Code of Civil Procedure.
288	288	3 Costs collected under this Section shall be paid into the Tax
289	289	4 Compliance and Administration Fund.
290	290	5 (e) Nothing contained in this Act shall prevent the
291	291	6 Director from divulging information to any person pursuant to
292	292	7 a request or authorization made by the taxpayer, by an
293	293	8 authorized representative of the taxpayer, or, in the case of
294	294	9 information related to a joint return, by the spouse filing
295	295	10 the joint return with the taxpayer.
296	296	11 (Source: P.A. 102-61, eff. 7-9-21; 102-129, eff. 7-23-21;
297	297	12 102-799, eff. 5-13-22; 102-813, eff. 5-13-22; 102-941, eff.
298	298	13 7-1-22; revised 8-3-22.)
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