By: Dean Tatooles
For years, Illinois taxpayers have been complaining about the Illinois Department of Revenue’s (the “Department”) handling of tax disputes. Complaints ranged from long delays in the Department’s administrative process to taxpayers not feeling like they were properly heard or their disputes fairly considered. Well, the Illinois General Assembly answered taxpayer’s calls in its creation of a new administrative forum, separate and apart from the Department, to handle certain types of tax disputes called the Illinois Independent Tax Tribunal (the “Tribunal”). The Tribunal’s self-proclaimed purpose is, among other things, “to increase public confidence in the fairness of the State tax system.” See 35 ILCS 1010/1-5(a).
In most cases, the Tribunal only has jurisdiction over protests filed after January 1, 2014. Any protests filed prior to January 1, 2014 continue with the Department. Typically, the Tribunal only has jurisdiction over protests if the amount of the tax liability exceeds $15,000, exclusive of penalty and interest. In situations where there is no additional tax liability assessed, but the total penalties or interest or both exceed $15,000, the Tribunal has jurisdiction.
Only certain types of tax protests may be heard by the Tribunal. These include tax liability under the:
- Illinois Income Tax Act
- Tobacco Products Tax Act of 1995
- Motor Fuel Tax Law
- Cigarette Tax Act
- Hotel Operators’ Occupation Tax Act
Other types of tax protests do not fall within the jurisdiction of the Tribunal. These include tax liability under the:
- Charitable Games Tax
- Cigarette Machine Operators’ Occupation Tax
- County Motor Fuel Tax
- Private Party Vehicle Use Tax
- Real Estate Transfer Tax
The Tribunal maintains its principal offices in both Sangamon County and Cook County, Illinois. A protest must be filed within the time permitted by statute and in the form prescribed by the Tribunal (which is similar to a complaint filed in state court). The Department is required to answer, in writing, within 30 days after a protest is filed. The Tribunal charges a $500 fee for the filing of a petition and the discovery process is governed by the Illinois Supreme Court Rules and the Illinois Code of Civil Procedure. Following the completion of discovery, a hearing will be held before an administrative law judge, independent of the Department, and the Tribunal will issue its decision in writing no later than 90 days after the completion of the hearing.
To discuss a tax dispute you have with the Illinois Department of Revenue, please contact:
Jonathan M. Weis at:
Dean J. Tatooles at:
firstname.lastname@example.org, or 312-368-0100.