Ill. Admin. Code tit. 86, § 215.115 - Procedure for Requesting Review by the Informal Conference Board
a) Notice of
Proposed Audit Adjustments. Once the auditor has conducted the audit and made
an examination of the taxpayer 's books and records provided during the audit
process, the Department shall issue a written notice to the taxpayer in cases
in which a liability or deficiency is asserted or a refund claimed is denied in
whole or in part as a result of the audit. Such letter shall be referred to as
a Notice of Proposed Liability, Notice of Proposed Deficiency, or Notice of
Proposed Claim Denial. The notice shall state the amount of the proposed
liability, deficiency or claim denial and inform the taxpayer of his or her
right to an informal review by the Informal Conference Board. The taxpayer
shall have 60 days after the date the Notice of Proposed Liability, Notice of
Proposed Deficiency, or Notice of Proposed Claim Denial is issued to file a
request with the Informal Conference Board for review of the proposed audit
adjustment. The 60-day period for filing a request commences with the date the
notice is hand delivered to the taxpayer, or with the mailing date of the
notice. The mailing date is the date that appears on the face of the notice or
the postmark date, if later than the date shown on the notice. A request for
review shall be deemed to be timely filed if it is either received by the ICB
or is postmarked within the 60-day period.
b) Situations When the Taxpayer Will Not Be
Issued a Notice of Proposed Audit Adjustment. The Department will not issue a
Notice of Proposed Liability, Notice of Proposed Deficiency or Notice of
Proposed Claim Denial when a taxpayer has agreed to an audit by signing the
EDA-105 or IL-870, or by making a payment of tax deemed assessed under ITA
Section 903(a)(4). By signing the EDA-105 or IL-870, or making such a payment,
the taxpayer has waived his or her right to seek review by the Informal
Conference Board. The Department will also not issue a Notice of Proposed
Liability, Notice of Proposed Deficiency, or Notice of Proposed Claim Denial
when the taxpayer refuses to extend the statute of limitations when those
statutes will expire prior to the expiration of the 60-day period for seeking
Informal Conference Board review.
c) Requirements of a Request for Review. A
written request to the ICB will commence the informal review process. The ICB
will examine the basis for the proposed audit adjustments that are being
disputed and review the reasons why the taxpayer disagrees with the proposed
adjustments, along with all supporting documentation and any additional
information that the taxpayer may wish to submit in support of his or her
position. The request to the ICB for review of the proposed audit adjustments
shall be on a form prescribed by the Department . The form shall include at
least the following information:
1) The name
of the taxpayer or taxpayers;
2)
the taxpayer 's identifying numbers (Social Security number of individuals or
the Illinois Business Tax number issued by the Department for registration
purposes, or federal identification number for entities, such as corporations,
estates and trusts, or partnerships);
3) the current address of the taxpayer and
the taxpayer 's representative to which correspondence concerning the request
should be directed;
4) the amount
of the proposed liability, deficiency or claim denial that is the subject of
the request;
5) the audit period at
issue to which the request is directed; and
6) the identifying numbers that appear on the
Notice of Proposed Liability, Notice of Proposed Deficiency or Notice of
Proposed Claim Denial. The request must be dated and signed by the taxpayer or
by an authorized representative of the taxpayer . If the taxpayer fails, unless
for good cause shown, to provide all information required by the Department 's
form and instructions, the Board may refuse to take jurisdiction of the request
or dismiss the request.
d) In-Person Conference Request. An in-person
conference with the ICB panel members or their representatives must be
requested at the time that the request for review is filed with the ICB. See
Section
215.130
for additional detail relating to in-person conferences.
e) Grounds for Request. A request to the ICB
must raise objections to the proposed audit adjustments. The request may be
supplemented up until 30 days before the in-person conference, if one is
requested, or within 30 days after the filing of the request if an in-person
conference is not requested. The request shall state the taxpayer's specific
reasons for the disagreement with the proposed adjustments and show why the
Department 's proposed tax adjustment is incorrect. The request should reference
any information relied upon by the taxpayer.
f) The filing of a Request for Review by a
taxpayer or authorized representative under this Part shall act as a waiver of
the applicable statute of limitation that would otherwise prevent the
Department from the issuance of a Notice of Tax Liability, Notice of
Deficiency, or Notice of Claim Denial following the completion of an audit. In
such instance, any applicable limitations period shall be tolled from the date
the Request for Review is accepted by the ICB up to and including 180 days
following the date of the final decision or memorandum issued by the ICB.
Futhermore, should the ICB matter impact future audit periods, the taxpayer
will execute all necessary waivers for later audit periods when requested to do
so by the Audit Bureau while the matter is pending at the ICB. If the ICB
matter impacts later audit periods and the taxpayer fails to execute all
necessary waivers for later audit periods when requested to do so by the Audit
Bureau, the Audit Bureau will notify the ICB of the non-compliance and the ICB
may dismiss the taxpayer's case. For purposes of this Part, an impact on future
audit periods includes, but is not limited to, the following situations: the
same issues are involved in both audit periods; the subsequent audit period is
a mandatory audit due to the amount of liability proposed in the ICB matter; or
the amounts shown on a return subject to review by the ICB may be carried to a
subsequent year's return.
g)
Proposals for Disposition. A taxpayer may submit a formal request to settle the
tax dispute with the Department as a part of the initial request to the ICB or
at any point during ICB review prior to the issuance of an Action Decision.
Procedures for proposals are outlined in Section
215.125.
h) Offers in Compromise. The ICB will not
accept or negotiate offers in compromise. If a taxpayer is only seeking relief
from the further obligation to pay an undisputed tax liability based on an
inability to pay, the taxpayer should contact the Department 's Board of Appeals
after a final assessment of the tax.
Notes
Amended at 31 Ill. Reg. 8535, effective June 1, 2007
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