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Illinois Senate Bill SB1901

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1901 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1901 Introduced 2/9/2023, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED: 35 ILCS 5/902 from Ch. 120, par. 9-902 35 ILCS 120/5j from Ch. 120, par. 444j 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. LRB103 25071 HLH 51406 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1901 Introduced 2/9/2023, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED: 35 ILCS 5/902 from Ch. 120, par. 9-902 35 ILCS 120/5j from Ch. 120, par. 444j 35 ILCS 5/902 from Ch. 120, par. 9-902 35 ILCS 120/5j from Ch. 120, par. 444j 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. LRB103 25071 HLH 51406 b LRB103 25071 HLH 51406 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1901 Introduced 2/9/2023, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED:
33 35 ILCS 5/902 from Ch. 120, par. 9-902 35 ILCS 120/5j from Ch. 120, par. 444j 35 ILCS 5/902 from Ch. 120, par. 9-902 35 ILCS 120/5j from Ch. 120, par. 444j
44 35 ILCS 5/902 from Ch. 120, par. 9-902
55 35 ILCS 120/5j from Ch. 120, par. 444j
66 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.
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1212 1 AN ACT concerning revenue.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 5. The Illinois Income Tax Act is amended by
1616 5 changing Section 902 as follows:
1717 6 (35 ILCS 5/902) (from Ch. 120, par. 9-902)
1818 7 Sec. 902. Notice and demand.
1919 8 (a) In general. Except as provided in subsection (b) the
2020 9 Director shall, as soon as practicable after an amount payable
2121 10 under this Act is deemed assessed (as provided in Section
2222 11 903), give notice to each person liable for any unpaid portion
2323 12 of such assessment, stating the amount unpaid and demanding
2424 13 payment thereof. In the case of tax deemed assessed with the
2525 14 filing of a return, the Director shall give notice no later
2626 15 than 3 years after the date the return was filed. Upon receipt
2727 16 of any notice and demand there shall be paid at the place and
2828 17 time stated in such notice the amount stated in such notice.
2929 18 Such notice shall be left at the dwelling or usual place of
3030 19 business of such person or shall be sent by mail to the
3131 20 person's last known address.
3232 21 (b) Judicial review. In the case of a deficiency deemed
3333 22 assessed under Section 903(a)(2) after the filing of a
3434 23 protest, notice and demand shall not be made with respect to
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3838 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1901 Introduced 2/9/2023, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED:
3939 35 ILCS 5/902 from Ch. 120, par. 9-902 35 ILCS 120/5j from Ch. 120, par. 444j 35 ILCS 5/902 from Ch. 120, par. 9-902 35 ILCS 120/5j from Ch. 120, par. 444j
4040 35 ILCS 5/902 from Ch. 120, par. 9-902
4141 35 ILCS 120/5j from Ch. 120, par. 444j
4242 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.
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7171 1 such assessment until all proceedings in court for the review
7272 2 of such assessment have terminated or the time for the taking
7373 3 thereof has expired without such proceedings being instituted.
7474 4 (c) Action for recovery of taxes. At any time that the
7575 5 Department might commence proceedings for a levy under Section
7676 6 1109, regardless of whether a notice of lien was filed under
7777 7 the provisions of Section 1103, it may bring an action in any
7878 8 court of competent jurisdiction within or without this State
7979 9 in the name of the people of this State to recover the amount
8080 10 of any taxes, penalties and interest due and unpaid under this
8181 11 Act. In such action, the certificate of the Department showing
8282 12 the amount of the delinquency shall be prima facie evidence of
8383 13 the correctness of such amount, its assessment and of the
8484 14 compliance by the Department with all the provisions of this
8585 15 Act.
8686 16 (d) Sales or transfers outside the usual course of
8787 17 business-Report-Payment of Tax - Rights and duties of
8888 18 purchaser or transferee - penalty. If any taxpayer, outside
8989 19 the usual course of his business, sells or transfers the major
9090 20 part of any one or more of (A) the stock of goods which he is
9191 21 engaged in the business of selling, or (B) the furniture or
9292 22 fixtures, or (C) the machinery and equipment, or (D) the real
9393 23 property, of any business that is subject to the provisions of
9494 24 this Act, the purchaser or transferee of such assets shall, no
9595 25 later than 10 business days before the sale or transfer, file a
9696 26 notice of sale or transfer of business assets with the
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107107 1 Department disclosing the name and address of the seller or
108108 2 transferor, the name and address of the purchaser or
109109 3 transferee, the date of the sale or transfer, a copy of the
110110 4 sales contract and financing agreements which shall include a
111111 5 description of the property sold or transferred, the amount of
112112 6 the purchase price or a statement of other consideration for
113113 7 the sale or transfer, and the terms for payment of the purchase
114114 8 price, and such other information as the Department may
115115 9 reasonably require. The notice described in this subsection
116116 10 (d) is not required if the only asset sold or transferred is
117117 11 real estate. If the purchaser or transferee fails to file the
118118 12 above described notice of sale with the Department within the
119119 13 prescribed time, the purchaser or transferee shall be
120120 14 personally liable to the Department for the amount owed
121121 15 hereunder by the seller or transferor but unpaid, up to the
122122 16 amount of the reasonable value of the property acquired by the
123123 17 purchaser or transferee. The purchaser or transferee shall pay
124124 18 the Department the amount of tax, penalties, and interest owed
125125 19 by the seller or transferor under this Act, to the extent they
126126 20 have not been paid by the seller or transferor. The seller or
127127 21 transferor, or the purchaser or transferee, at least 10
128128 22 business days before the date of the sale or transfer, may
129129 23 notify the Department of the intended sale or transfer and
130130 24 request the Department to make a determination as to whether
131131 25 the seller or transferor owes any tax, penalty or interest due
132132 26 under this Act. The Department shall take such steps as may be
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143143 1 appropriate to comply with such request.
144144 2 Any order issued by the Department pursuant to this
145145 3 Section to withhold from the purchase price shall be issued
146146 4 within 10 business days after the Department receives
147147 5 notification of a sale as provided in this Section. The
148148 6 purchaser or transferee shall withhold such portion of the
149149 7 purchase price as may be directed by the Department, but not to
150150 8 exceed a minimum amount varying by type of business, as
151151 9 determined by the Department pursuant to regulations, plus
152152 10 twice the outstanding unpaid liabilities and twice the average
153153 11 liability of preceding filings times the number of unfiled
154154 12 returns which were not filed when due, to cover the amount of
155155 13 all tax, penalty, and interest due and unpaid by the seller or
156156 14 transferor under this Act or, if the payment of money or
157157 15 property is not involved, shall withhold the performance of
158158 16 the condition that constitutes the consideration for the sale
159159 17 or transfer. Within 60 business days after issuance of the
160160 18 initial order to withhold, the Department shall provide
161161 19 written notice to the purchaser or transferee of the actual
162162 20 amount of all taxes, penalties and interest then due and
163163 21 whether or not additional amounts may become due as a result of
164164 22 unpaid taxes required to be withheld by an employer, returns
165165 23 which were not filed when due, pending assessments and audits
166166 24 not completed. The purchaser or transferee shall continue to
167167 25 withhold the amount directed to be withheld by the initial
168168 26 order or such lesser amount as is specified by the final
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179179 1 withholding order or to withhold the performance of the
180180 2 condition which constitutes the consideration for the sale or
181181 3 transfer until the purchaser or transferee receives from the
182182 4 Department a certificate showing that no unpaid tax, penalty
183183 5 or interest is due from the seller or transferor under this
184184 6 Act.
185185 7 The purchaser or transferee is relieved of any duty to
186186 8 continue to withhold from the purchase price and of any
187187 9 liability for tax, penalty, or interest due hereunder from the
188188 10 seller or transferor if the Department fails to notify the
189189 11 purchaser or transferee in the manner provided herein of the
190190 12 amount to be withheld within 10 business days after the sale or
191191 13 transfer has been reported to the Department or within 60
192192 14 business days after issuance of the initial order to withhold,
193193 15 as the case may be. The Department shall have the right to
194194 16 determine amounts claimed on an estimated basis to allow for
195195 17 periods for which returns were not filed when due, pending
196196 18 assessments and audits not completed, however the purchaser or
197197 19 transferee shall be personally liable only for the actual
198198 20 amount due when determined.
199199 21 If the seller or transferor has failed to pay the tax,
200200 22 penalty, and interest due from him hereunder and the
201201 23 Department makes timely claim therefor against the purchaser
202202 24 or transferee as hereinabove provided, then the purchaser or
203203 25 transferee shall pay to the Department the amount so withheld
204204 26 from the purchase price. If the purchaser or transferee fails
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215215 1 to comply with the requirements of this Section, the purchaser
216216 2 or transferee shall be personally liable to the Department for
217217 3 the amount owed hereunder by the seller or transferor up to the
218218 4 amount of the reasonable value of the property acquired by the
219219 5 purchaser or transferee.
220220 6 Any person who shall acquire any property or rights
221221 7 thereto which, at the time of such acquisition, is subject to a
222222 8 valid lien in favor of the Department, shall be personally
223223 9 liable to the Department for a sum equal to the amount of
224224 10 taxes, penalties and interests, secured by such lien, but not
225225 11 to exceed the reasonable value of such property acquired by
226226 12 him.
227227 13 (Source: P.A. 102-40, eff. 6-25-21.)
228228 14 Section 10. The Retailers' Occupation Tax Act is amended
229229 15 by changing Section 5j as follows:
230230 16 (35 ILCS 120/5j) (from Ch. 120, par. 444j)
231231 17 Sec. 5j. If any taxpayer, outside the usual course of his
232232 18 business, sells or transfers the major part of any one or more
233233 19 of (A) the stock of goods which he is engaged in the business
234234 20 of selling, or (B) the furniture or fixtures, (C) the
235235 21 machinery and equipment, or (D) the real property, of any
236236 22 business that is subject to the provisions of this Act, the
237237 23 purchaser or transferee of such asset shall, no later than 10
238238 24 business days prior to the sale or transfer, file a notice of
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249249 1 sale or transfer of business assets with the Department
250250 2 disclosing the name and address of the seller or transferor,
251251 3 the name and address of the purchaser or transferee, the date
252252 4 of the sale or transfer, a copy of the sales contract and
253253 5 financing agreements which shall include a description of the
254254 6 property sold, the amount of the purchase price or a statement
255255 7 of other consideration for the sale or transfer, the terms for
256256 8 payment of the purchase price, and such other information as
257257 9 the Department may reasonably require. The notice described in
258258 10 this paragraph is not required if the only asset sold or
259259 11 transferred is real estate. If the purchaser or transferee
260260 12 fails to file the above described notice of sale with the
261261 13 Department within the prescribed time, the purchaser or
262262 14 transferee shall be personally liable for the amount owed
263263 15 hereunder by the seller or transferor to the Department up to
264264 16 the amount of the reasonable value of the property acquired by
265265 17 the purchaser or transferee. The seller or transferor shall
266266 18 pay the Department the amount of tax, penalty and interest (if
267267 19 any) due from him under this Act up to the date of the payment
268268 20 of tax. The seller or transferor, or the purchaser or
269269 21 transferee, at least 10 business days before the date of the
270270 22 sale or transfer, may notify the Department of the intended
271271 23 sale or transfer and request the Department to audit the books
272272 24 and records of the seller or transferor, or to do whatever else
273273 25 may be necessary to determine how much the seller or
274274 26 transferor owes to the Department hereunder up to the date of
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285285 1 the sale or transfer. The Department shall take such steps as
286286 2 may be appropriate to comply with such request.
287287 3 Any order issued by the Department pursuant to this
288288 4 Section to withhold from the purchase price shall be issued
289289 5 within 10 business days after the Department receives
290290 6 notification of a sale as provided in this Section. The
291291 7 purchaser or transferee shall withhold such portion of the
292292 8 purchase price as may be directed by the Department, but not to
293293 9 exceed a minimum amount varying by type of business, as
294294 10 determined by the Department pursuant to regulations, plus
295295 11 twice the outstanding unpaid liabilities and twice the average
296296 12 liability of preceding filings times the number of unfiled
297297 13 returns, to cover the amount of all tax, penalty and interest
298298 14 due and unpaid by the seller or transferor under this Act or,
299299 15 if the payment of money or property is not involved, shall
300300 16 withhold the performance of the condition that constitutes the
301301 17 consideration for the sale or transfer. Within 60 business
302302 18 days after issuance of the initial order to withhold, the
303303 19 Department shall provide written notice to the purchaser or
304304 20 transferee of the actual amount of all taxes, penalties and
305305 21 interest then due and whether or not additional amounts may
306306 22 become due as a result of unfiled returns, pending assessments
307307 23 and audits not completed. The purchaser or transferee shall
308308 24 continue to withhold the amount directed to be withheld by the
309309 25 initial order or such lesser amount as is specified by the
310310 26 final withholding order or to withhold the performance of the
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321321 1 condition which constitutes the consideration for the sale or
322322 2 transfer until the purchaser or transferee receives from the
323323 3 Department a certificate showing that such tax, penalty and
324324 4 interest have been paid or a certificate from the Department
325325 5 showing that no tax, penalty or interest is due from the seller
326326 6 or transferor under this Act.
327327 7 The purchaser or transferee is relieved of any duty to
328328 8 continue to withhold from the purchase price and of any
329329 9 liability for tax, penalty or interest due hereunder from the
330330 10 seller or transferor if the Department fails to notify the
331331 11 purchaser or transferee in the manner provided herein of the
332332 12 amount to be withheld within 10 business days after the sale or
333333 13 transfer has been reported to the Department or within 60
334334 14 business days after issuance of the initial order to withhold,
335335 15 as the case may be. The Department shall have the right to
336336 16 determine amounts claimed on an estimated basis to allow for
337337 17 non-filed periods, pending assessments and audits not
338338 18 completed, however the purchaser or transferee shall be
339339 19 personally liable only for the actual amount due when
340340 20 determined.
341341 21 If the seller or transferor fails to pay the tax, penalty
342342 22 and interest (if any) due from him hereunder and the
343343 23 Department makes timely claim therefor against the purchaser
344344 24 or transferee as hereinabove provided, then the purchaser or
345345 25 transferee shall pay the amount so withheld from the purchase
346346 26 price to the Department. If the purchaser or transferee fails
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357357 1 to comply with the requirements of this Section, the purchaser
358358 2 or transferee shall be personally liable to the Department for
359359 3 the amount owed hereunder by the seller or transferor to the
360360 4 Department up to the amount of the reasonable value of the
361361 5 property acquired by the purchaser or transferee.
362362 6 Any person who shall acquire any property or rights
363363 7 thereto which, at the time of such acquisition, is subject to a
364364 8 valid lien in favor of the Department shall be personally
365365 9 liable to the Department for a sum equal to the amount of taxes
366366 10 secured by such lien but not to exceed the reasonable value of
367367 11 such property acquired by him.
368368 12 (Source: P.A. 100-1171, eff. 1-4-19.)
369369 13 Section 99. Effective date. This Act takes effect upon
370370 14 becoming law.
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