Bill Text: IL SB0411 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning notices or regulations requiring records, statements, and special reports.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB0411 Detail]

Download: Illinois-2011-SB0411-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB0411 Introduced 2/8/2011, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED:
35 ILCS 5/501 from Ch. 120, par. 5-501
Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning notices or regulations requiring records, statements, and special reports.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by
changing Section 501 as follows:
(35 ILCS 5/501) (from Ch. 120, par. 5-501)
Sec. 501. Notice or Regulations Requiring Records,
Statements and Special Returns.
(a) In general. Every person liable for any tax imposed by
this Act shall keep such records, render such statements, make
such returns and and notices, and comply with such rules and
regulations as the Department may from time to time prescribe.
Whenever in the judgment of the Director it is necessary, he
may require any person, by notice served upon such person or by
regulations, to make such returns and notices, render such
statements, or keep such records, as the Director deems
sufficient to show whether or not such person is liable for tax
under this Act.
(b) Reportable transactions. For each taxable year in which
a taxpayer is required to make a disclosure statement under
Treasury Regulations Section 1.6011-4 (26 CFR 1.6011-4)
(including any taxpayer that is a member of a consolidated
group required to make such disclosure) with respect to a

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reportable transaction (including a listed transaction) in
which the taxpayer participated in a taxable year for which a
return is required under Section 502 of this Act, such taxpayer
shall file a copy of such disclosure with the Department.
Disclosure under this subsection is required to be made by any
taxpayer that is a member of a unitary business group that
includes any person required to make a disclosure statement
under Treasury Regulations Section 1.6011-4. Disclosure under
this subsection is required with respect to any transaction
entered into after February 28, 2000 that becomes a listed
transaction at any time, and shall be made in the manner
prescribed by the Department. With respect to transactions in
which the taxpayer participated for taxable years ending before
December 31, 2004, disclosure shall be made by the due date
(including extensions) of the first return required under
Section 502 of this Act due after the effective date of this
amendatory Act of the 93rd General Assembly. With respect to
transactions in which the taxpayer participated for taxable
years ending on and after December 31, 2004, disclosure shall
be made in the time and manner prescribed in Treasury
Regulations Section 1.6011-4(e). Notwithstanding the above, no
disclosure is required for transactions entered into after
February 28, 2000 and before January 1, 2005 (i) if the
taxpayer has filed an amended Illinois income tax return which
reverses the tax benefits of the potential tax avoidance
transaction, or (ii) as a result of a federal audit the

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Internal Revenue Service has determined the tax treatment of
the transaction and an Illinois amended return has been filed
to reflect the federal treatment.
(Source: P.A. 93-840, eff. 7-30-04.)