The Illinois Department of Revenue, like the IRS, targets taxpayers who are delinquent with their state income and/or business-related taxes. However, unlike the IRS, the Illinois Department of Revenue has a various array of tools that can severely impact Illinois residents and businesses alike.
As any Illinois resident knows, Illinois is among the top states that taxes its citizens. This tax burden has, in turn, caused many people to seek residence in other states which offer more preferential tax treatment; but, for those unfortunate enough to remain in Illinois, and even more so for those who find themselves in tax trouble, the Illinois Department of Revenue can be just as scary as the Internal Revenue Service – sometimes, even worse.
The Illinois Department of Revenue, like the IRS, will begin by sending notices to individuals and businesses who owe back taxes. These notices begin by demanding immediate payment or to at least call them in order to set up some sort of payment plan. Most people comply with this initial letter without consulting an attorney to other tax professional. If, however, the taxpayer fails to do anything, the Department of Revenue may take enforced collection against the taxpayer such as wage garnishment, liens or even levies.
For business taxpayers, the Department of Revenue can go a step further than the IRS and revoke any professional licenses held by the business or sole proprietor such as a professional medical license, attorney license or any other professional credentials submitted through the Illinois Department of Financial & Professional Regulation (IDFPR).
Similarly, the Department of Revenue can even notify the Illinois Secretary of State of back taxes who can then refuse to renew a corporate or LLC franchise registration.
Therefore, it is important to know your options when dealing with the Department of Revenue. Call our office today to schedule an appointment so that we can evaluate your case.
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Audits
Like an IRS audit, an audit conducted by the Illinois Department of Revenue (IDOR) can have serious consequences for a taxpayer, their business as well as their family life. An audit is an investigation by the IDOR into the accounts and finances of a business or individual in order to determine whether that taxpayer is complying with relevant tax laws. If not, severe penalties such as civil or sometimes criminal tax fraud charges can be filed against a taxpayer for either negligently or willfully submitting falsified tax returns or tax-related information.
Our firm has the experience and knowledge it takes to not only handle individuals or businesses who are currently under audit but we also carry the expertise of finding issues within an audit that could potentially reduce or even sometimes eliminate civil and/or criminal penalties altogether.
If you or your business are currently undergoing or have received information regarding a potential audit, it is imperative to seek immediate representation so that you can better protect yourself from the risks involved in an audit. Call our office to set up an appointment today so that you can be better protected tomorrow.
Board of Appeals
The Illinois Department of Revenue Board of Appeals (BOA) is an arm of the Department of Revenue which deals strictly with reviewing taxpayer cases that are brought before it in order to determine whether that taxpayer was treated fairly in the tax collection process.
Additionally, the BOA has the power to waive penalties and interest based on a reasonable cause argument as well as review a taxpayer’s financials and determine whether the tax debt can be collected at all. If not, then a reduced amount may be agreed upon between the BOA and the taxpayer or his representative (similar to an Offer in compromise).
If you find yourself receiving tax debts which you agree with but have substantial penalties and interest associated with them, call our office so that we may determine whether we can file a BOA petition to have the tax amount reduced or the penalties waived.
Installment Agreements
No one likes paying off their entire tax debt in one lump sum. For most Americans, this can be a burdensome and sometimes unrealistic possibility depending on the amount. Therefore, an installment agreement may be the answer many are looking for if they in fact agree with the liability owed to the IDOR.
The Department of Revenue has somewhat simplified this process by not requiring financial statements from the taxpayer if their tax debt, including penalties and interest, is less than $10,000. However, if that debt is over $10,000, the process becomes more burdensome since now official documentation of the taxpayer’s assets and monthly income are required to be provided to the Department for further review.
If you would like to set up an installment agreement but are unsure how to do so, give us a call so that we can guide you through or complete the process along with you. We may even be able to completely wipe all penalties and some interest through a Penalty Abatement Request thereby saving you additional money.
Voluntary Disclosure
Admitting fault is not a strong suite for most people – especially when admitting fault leads to negative consequences. For some, however, admitting fault with the Department of Revenue may lead to a brighter, stress-free future.
The Voluntary Disclosure Program is a way for taxpayers who have not been compliant with Illinois tax laws to voluntarily come forward, come into compliance through filings or otherwise, and pay whatever the tax liabilities are owed for those periods. Many might be saying to themselves “why would I voluntarily admit to wrongdoing?” to which a simple answer exists:
For those people who have not filed tax returns for, lets say, 10 years, the IDOR takes the position that this is, on its face, evidence of criminal tax fraud. By simply not filing a tax return, you are exposing yourself to extremely harsh penalties and possibly even jailtime. As you guessed it, in comes the Voluntary Disclosure Program which requires taxpayers to only file the last 4 years of tax returns which, in some instances, can save a taxpayer thousands of dollars in back taxes
If you have not filed an Illinois tax return in many years and have not received any notices from the Department of Revenue, the Voluntary Disclosure Program may be available to you. Give us a call so that we can evaluate whether Voluntary Disclosure is appropriate for your case.