Bill Text: IL HB5554 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Certified Audit Program Law of the Civil Administrative Code of Illinois. Extends the certification program to all experienced tax practitioners. Provides that the term "experienced tax practitioner" means an Illinois-licensed certified public accountant, an Illinois-licensed attorney, or an enrolled agent licensed for a minimum of 8 years with substantial knowledge of Illinois tax laws and regulations. Reinstates the certified audit pilot project and extends it until July 1, 2020.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2016-02-10 - Referred to Rules Committee [HB5554 Detail]

Download: Illinois-2015-HB5554-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB5554 Introduced , by Rep. Mark Batinick SYNOPSIS AS INTRODUCED:
20 ILCS 2510/2510-3
20 ILCS 2510/2510-5
20 ILCS 2510/2510-10
20 ILCS 2510/2510-30
Amends the Certified Audit Program Law of the Civil Administrative Code of Illinois. Extends the certification program to all experienced tax practitioners. Provides that the term "experienced tax practitioner" means an Illinois-licensed certified public accountant, an Illinois-licensed attorney, or an enrolled agent licensed for a minimum of 8 years with substantial knowledge of Illinois tax laws and regulations. Reinstates the certified audit pilot project and extends it until July 1, 2020.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Certified Audit Program Law of the Civil
Administrative Code of Illinois is amended by changing Sections
2510-3, 2510-5, 2510-10, and 2510-30 as follows:
(20 ILCS 2510/2510-3)
Sec. 2510-3. Findings. The General Assembly finds that:
(1) Voluntary compliance is the cornerstone of an effective
tax system.
(2) Despite attempts by the General Assembly, State taxes
are not simple.
(3) Even the most diligent taxpayers through mistake or
inadvertence may not pay all taxes due.
(4) The Illinois Department of Revenue lacks the resources
to audit the compliance of all taxpayers.
(5) Experienced tax practitioners Illinois certified
public accountants provide valuable advice and assistance to
Illinois taxpayers on State tax issues.
(6) A pilot program establishing a partnership between
taxpayers, experienced tax practitioners Illinois certified
public accountants, and the Illinois Department of Revenue will
provide guidance to taxpayers and enhance voluntary

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compliance.
(Source: P.A. 92-456, eff. 8-21-01.)
(20 ILCS 2510/2510-5)
Sec. 2510-5. Definitions. As used in this Article:
"Certification program" means an instructional curriculum,
examination, and process for certification, recertification,
and revocation of certification of certified public
accountants that is administered by the Department, the
Illinois CPA Society, the Illinois State Bar Association, or
other similar organization, and that is officially approved by
the Department to ensure that a certified public accountant,
attorney, or other experienced tax practitioner possesses the
necessary skills and abilities to successfully perform an
attestation engagement for tax compliance review in a certified
audit project.
"Department" means the Illinois Department of Revenue.
"Experienced tax practitioner" means an Illinois-licensed
certified public accountant, an Illinois-licensed attorney, or
an enrolled agent licensed for a minimum of 8 years with
substantial knowledge of Illinois tax laws and regulations.
"Participating taxpayer" means any person subject to the
revenue laws administered by the Department who enters into an
engagement with a qualified practitioner for tax compliance
review and who is approved by the Department under the
certified audit project.

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"Qualified practitioner" means an experienced tax
practitioner a certified public accountant who is licensed to
practice in Illinois and who has completed the certification
program. The phrase "completed the certification program"
means the participant has met all requirements for the
certified audit training course, achieved the required score on
the certification test as approved by the Department, and has
been certified by the Department.
(Source: P.A. 92-456, eff. 8-21-01.)
(20 ILCS 2510/2510-10)
Sec. 2510-10. Certified audit project.
(a) Subject to appropriation, the Department shall is
authorized to initiate a certified audit pilot project to
further enhance tax compliance reviews performed by qualified
practitioners and to encourage taxpayers to hire qualified
practitioners at their own expense to review and report on
their sales tax and use tax compliance. The nature of the
certified audit work performed by qualified practitioners
shall be agreed-upon procedures in which the Department is the
specified user of the resulting report.
(b) As an incentive for taxpayers to incur the costs of a
certified audit, the Department shall abate penalties and
interest due on any tax liabilities revealed by a certified
audit, except that this authority to abate penalties or
interest shall not apply to any liability for taxes that were

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collected by the participating taxpayer but not remitted to the
Department nor shall the Department have the authority to abate
fraud penalties.
(c) The certified audit pilot project shall apply only to
occupation and use taxes administered and collected by the
Department.
(d) The certified audit pilot project shall not extend
beyond July 1, 2020 July 1, 2004.
(Source: P.A. 92-456, eff. 8-21-01.)
(20 ILCS 2510/2510-30)
Sec. 2510-30. Rules. To implement the certified audit
project, the Department shall have authority to adopt rules no
later than 180 days after the effective date of this amendatory
Act of the 99th General Assembly, including, but not limited
to:
(1) The scope and availability of the certification
program required for participation in the project;
(2) The requirements and basis for establishing just
cause for approval or rejection of participation by
taxpayers;
(3) Procedures for assessment, collection, and payment
of liabilities or refund of overpayments and provisions for
taxpayers to obtain informal and formal review of certified
audit results;
(4) The nature, frequency, and basis for the

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Department's review of certified audits conducted by
qualified practitioners, including the requirements for
documentation, work-paper retention and access, and
reporting; and
(5) Requirements for conducting certified audits and
for review of agreed-upon procedures.
(Source: P.A. 92-456, eff. 8-21-01.)