Ill. Admin. Code tit. 86, § 850.105 - Nature and Scope of Certified Audit Pilot Program
a) The Certified Audit Pilot Program is a
5-year pilot project that begins on January 1, 2021 and ends
on December 31, 2025, and that is limited in scope to specifically
address concerns related to the proper reporting and payment of local
occupation and use taxes that are collected and distributed to municipalities
and counties by the Department. [50 ILCS
355/10-10 ]
b) The Certified Audit Pilot Program is
intended to enhance tax compliance by allowing audits to be performed by
qualified practitioners. The program is intended to encourage taxpayers
to hire qualified practitioners at their own expense to review and report on
certain aspects of their occupation and use tax compliance when the Department
has notified the taxpayer that it has received an actionable tax compliance
referral from a municipality, county, or third party under the Act.
[50 ILCS
355/10-20 ] The qualified practitioner shall conduct
the certified audit based on agreed upon procedures with the Department being
the user of the resulting Certified Audit Report. As an incentive for taxpayers
to incur the costs of a certified audit, the Act provides for a waiver of
penalties due on any tax liabilities revealed by a certified audit. The waiver
of penalties does not apply to any amount that the taxpayer collected as tax
but did not remit to the Department. In addition, there is no authority to
waive penalties resulting from a finding of fraud.
c)
The tax compliance reviews shall
be limited in scope and may include only:
1)
whether the taxpayer is reporting
receipts in the proper jurisdiction;
2)
whether tangible personal property
purchases that were used or consumed by the taxpayer were taxed
properly;
3)
an
evaluation of sales reported as exempt from tax;
4)
whether the proper tax rate was
charged;
5)
whether the tax was properly reported as retailers' occupation tax or
use tax; and
6)
any other factor that impacts the Department's allocation of sales and
use tax revenues to the jurisdiction in which the taxpayer reports sales or use
tax. [50 ILCS 355/10-20
]
d)
The
certified audit pilot project shall apply only to taxpayers who have been
notified that an audit referral has been received by the Department under the
Act and only to occupation and use taxes administered and collected by the
Department. [50 ILCS
355/10-20(c) ]
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.