January 14, 2010—Issue 2

This week, the General Assembly reconvened.  The highlight of the week was the Governor Quinn’s State of the State Address on Wednesday, January 13.  Specifics on the address may be accessed at the following link:  click here.

HB 4622—Tax Amnesty Bill

HB 4622, sponsored by Rep. Bob Pritchard, would create a temporary tax amnesty program to fund Monetary Award Program (“MAP”) grants for higher education. 

Under the bill as amended by House Amendment #1, the amnesty program would last for 60 days from whenever the bill becomes law.  If taxes due after June 20, 2002, and prior to the effective date of the bill, are paid during the aforementioned period, the Department of Revenue would be required to abate and not collect any applicable interest or penalties.  Further, if a taxpayer fails to pay taxes for the aforementioned period during the amnesty program, penalties and interest will be 200% of the normal amount charged by the Department of Revenue.  As amended, the bill is identical to HB 4662.

The bill was heard and held in the House Revenue & Finance Committee on Monday, January 11.  TFI opposed the bill.  Among other things, TFI is concerned that a taxpayer who would wish to partake of amnesty may, in good faith, choose not to do so because the taxpayer is awaiting Federal adjustment information, but that same taxpayer would then be subject to 200% penalties and interest by Department of Revenue.

HB 4622 may be accessed at the following link:  click here.

Recently Released Information

The Commission on Government Forecasting and Accountability (“COGFA”) has released a report entitled, “Illinois Property Taxes:  2009 Update.”  The report may be accessed at the following link:  click here.

And Finally . . .

This is my final TFI Report as I am departing the organization to undertake other endeavors.  I want to express my thanks for the opportunity to serve TFI.  I wish everyone at TFI the very best for the future.

David