Reciprocal Tax Collection Act

  1. Law
  2. Illinois Compiled Statutes
  3. REVENUE
  4. Reciprocal Tax Collection Act.
  5. Reciprocal Tax Collection Act

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(35 ILCS 717/Art. 5 heading)

ARTICLE 5

 

(35 ILCS 717/5-1)

Sec. 5-1. Short title. This Act may be cited as the Reciprocal Tax Collection Act.

(Source: P.A. 96-1383, eff. 1-1-11.)

 

(35 ILCS 717/5-5)

Sec. 5-5. Collection of tax liabilities of other states and the District of Columbia.

(a) Definitions. For purposes of this Section:

  • (1) "Taxpayer" means any person identified by a claimant state under this Section as owing taxes to a claimant state.
  • (2) "Claimant state" means any other state of the United States or the District of Columbia with whom the Director has entered an agreement for reciprocal collection of taxes under Section 2505-640 of the Department of Revenue Law of the Civil Administrative Code of Illinois.
  • (3) "Taxes" means any amount of tax imposed under the laws of the claimant state or any political subdivision of the claimant state, including additions to tax for penalties and interest, that is finally due and payable to the claimant state by a taxpayer, and with respect to which all administrative or judicial remedies, other than a claim for refund of amounts collected in payment of the tax, have been exhausted or have lapsed, and that is legally enforceable under the laws of the claimant state against the taxpayer, whether or not there is an outstanding judgment for that sum.
  • (4) "Tax officer" means a unit or official of a claimant state, or the duly authorized agent of that unit or official, charged with the imposition, assessment, or collection of taxes of that state.
  • (5) "Director" means the Illinois Director of Revenue.

(b) Request of claimant state for collection.

  • (1) Upon the request and certification of the tax officer of a claimant state to the Director that a taxpayer owes taxes to that claimant state, the Director may collect those taxes, using all legal authority available to the Department of Revenue to collect debt, and shall deposit the amounts collected into the Reciprocal Tax Collection Fund and order payment to the claimant state under Section 5-10 of this Act.
  • (2) The certification shall include:
    • (A) the full name and address of the taxpayer;
    • (B) the taxpayer's Social Security number or federal employer identification number;
    • (C) the amount of the tax for the taxable period sought to be collected, including a detailed statement for each taxable period showing tax, interest, and penalty;
    • (D) a statement whether the taxpayer filed a tax return with the claimant state for the tax, and, if so, whether that tax return was filed under protest; and
    • (E) a statement that all administrative or judicial remedies, other than a claim for refund of amounts collected in payment of the tax, have been exhausted or have lapsed and that the amount of taxes is legally enforceable under the laws of that state against the taxpayer.
  • (3) Upon receipt by the Director of the required certification, the Director shall notify the taxpayer by first-class mail to the taxpayer's last-known address that the Director has received a request from the claimant state to collect taxes from the taxpayer, that the taxpayer has the right to protest the collection of those taxes by the Director for the claimant state, that failure to file a protest in accordance with item (4) of subsection (b) of this Section shall constitute a waiver of any demand against this State on account of the collection of those taxes and that the amount, upon collection, will be paid over to the claimant state. The notice shall include a copy of the certification by the tax officer of the claimant state. Sixty days after the date on which it is mailed, a notice under this subsection shall be final except only for such amounts as to which the taxpayer has filed, as provided in item (4) of subsection (b) of this Section, a written protest with the Director.
  • (4) Any taxpayer notified in accordance with item (3) of subsection (b) of this Section may, on or before the 60th day after the mailing of the notice by the Director, protest the collection of all or a portion of such taxes by filing with the Director a written protest in which the taxpayer shall set forth the grounds on which the protest is based. If a timely protest is filed, the Director shall refrain from collecting the taxes and shall send a copy of the protest to the claimant state for determination of the protest on its merits in accordance with the laws of that state. In the case of a taxpayer that did not file a tax return for the tax for the taxable period sought to be collected and where the amount of taxes owed to the claimant state is based on an assessment made against the taxpayer by the tax officer of the claimant state, and where the taxpayer has filed a timely protest under this subsection, the Director shall require the claimant state to certify that the assessment was contested before and adjudicated by an administrative or judicial tribunal of competent jurisdiction in the claimant state. If the Director is satisfied that the taxpayer's written protest is based on a bona fide contention that the claimant state did not have jurisdiction to tax the taxpayer, the Director shall require the claimant state to certify that the assessment was contested before and adjudicated by a judicial tribunal of competent jurisdiction in the claimant state. If the claimant state fails, on or before the 45th day after the sending of the copy of the protest by the Director to the claimant state, to certify to the Director that the claimant state has reviewed the stated grounds on which the protest is based, and to renew the certification described in item (2) of subsection (b) of this Section, the Director shall not collect the taxes. If the certifications are made within that time period, and if the Director is satisfied that the certifications are true, accurate, and complete, the Director shall collect the tax.

(Source: P.A. 96-1383, eff. 1-1-11.)

 

(35 ILCS 717/5-10)

Sec. 5-10. Expenditures from the Reciprocal Tax Collection Fund.

(a) The Director shall order paid and the State Comptroller shall pay from the Reciprocal Tax Collection Fund to the claimant state the amount of taxes certified by the Director to the Comptroller as collected under this Act on behalf of the claimant state pursuant to a request under subsection (b) of Section 5-5 of this Act.

(b) This Act shall constitute an irrevocable and continuing appropriation from the Reciprocal Tax Collection Fund for the purpose of paying amounts collected to claimant states upon the order of the Director in accordance with the provisions of this Section.

(Source: P.A. 96-1383, eff. 1-1-11.)

 

(35 ILCS 717/5-15)

Sec. 5-15. Effect of payment to claimant state. Upon payment to a claimant state of an amount certified in a request for collection under subsection (b) of Section 5-5 of this Act, the Director and this State shall be discharged of any obligation or liability to a taxpayer with respect to the amounts collected from the taxpayer and paid to the claimant state pursuant to this Act. Any action for refund of those amounts shall lie only against the claimant state.

(Source: P.A. 96-1383, eff. 1-1-11.)

 

(35 ILCS 717/5-90)

Sec. 5-90. (Amendatory provisions; text omitted).

(Source: P.A. 96-1383, eff. 1-1-11; text omitted.)

 

(35 ILCS 717/5-95)

Sec. 5-95. (Amendatory provisions; text omitted).

(Source: P.A. 96-1383, eff. 1-1-11; text omitted.)


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