Illinois General Assembly
The House and Senate have adjourned until the fall veto session. The first week of the veto session is scheduled to begin on October 28. The second, and final, week of the veto session is scheduled to begin on November 12.
Franchise Tax Amnesty Program
The Secretary of State has posted
the petition form for the Franchise Tax Amnesty. The Secretary of State's office is finalizing an Illinois Franchise Tax Franchise Information Sheet.
I spoke with Derek White of the Secretary of State's office and obtained some additional details about how they plan to implement the amnesty.
Derek advised that everyone is eligible for the amnesty program. He indicated that they will construe the statute as providing eligibility for the amnesty to both domestic and foreign for-profit corporations.
In response to my question about how they plan to address situations where a taxpayer is required to file amendments for periods ending on or before 3/15/08, he advised that all penalties and interest will be eliminated for periods ending on or before 3/15/18. He gave the following example:
A Corporation had an increase in paid in capital that occurred 20 years ago. He explained that the Corporation can file under the amnesty, calculate the amount of tax due, pay only the additional tax and the annual tax due for the most recent 7 years, and will not be subject to any interest or penalties for any of the periods.
He contrasted this situation with the situation of a corporation who has to file to reinstate. In this latter situation, the corporation will have to file all of the unpaid reports and pay the tax for each reporting period. In this situation, no interest or penalties will be due, but all taxes for the periods for which no report was filed will have to be paid.
Derek also emphasized, as does the form linked above that the filing period for the amnesty petition is October 1, 2019, until the close of business November 15, 2019. If the amnesty petition is not correctly dated and completed properly - for example it is dated prior to October 1, 2019 or after November 15, 2019 it will be rejected.
Property Tax Reform Task Force
As I noted last week, the Property Tax Relief Task Force established a number of subcommittees. Some of the subcommittees have scheduled hearings. Here is a
to the Task Force webpage, which contains some limited information about previous and upcoming hearings.
This afternoon, the subcommittee on Assessments and Exemptions is scheduled to meet at 2:30. I am advised that the subcommittee is chaired by Representative Will Davis. I plan to attend this hearing.
The subcommittee is scheduled to hear a presentation from the Cook County Assessor's office. I suspect one of the topics of the Assessor's presentation will be
, the Assessor's legislation that would require extensive information reporting by owners, and some tenants, of income-producing property. As you will recall, the Illinois Chamber and many other business organizations strongly oppose this legislation. The legislation passed the Senate in the spring session, but did not move forward in the House. The Assessor has signaled that he will attempt to get the House through the House during the fall veto session.
The Illinois Register contained one adopted rulemaking by the Illinois Department of Revenue. The Department adopted an amendment to the Income Tax rules. The Department's description of the rulemaking is as follows:
"Section 100.3600(b) was amended to clarify the computation of the combined apportionment factor for unitary business groups with members using different apportionment methods. Section 100.9700(d) was amended to provide guidance on the effective date of the repeal of the prohibition against combination when the members of a unitary business group use different taxable years. All other differences between the proposal and the final version are cosmetic and grammatical and changes to the manner of citing the Internal Revenue Code."
Judge Conway ruled in favor of the Department and granted the Department's motion for summary judgment.
CSX is represented by Breen Schiller and David Machemer of Tax Institute member law firm Horwood Marcus & Berk