Taxpayers who have been contacted by the IRS or the IDOR regarding the use of a potential tax avoidance transaction with respect to a taxable year, and having a deficiency for such year attributable to the use of a potential tax avoidance transaction, are penalized an amount equal to 100 percent of the interest assessed under Illinois Uniform Penalty and Interest Act.
For taxable years ending after July 1, 2002, in situations where the taxpayer has not been contacted by the IRS or the IDOR regarding the use of potential tax avoidance transactions, taxpayers will be subject to interest at a rate of 150-percent of the otherwise applicable rate for any deficiency attributable to such transactions.
32) Rules, forms, and instructions will be forthcoming from the IDOR.
34) At the time of publication, there were indications that IDOR will construe this requirement as requiring disclosure by the first original due date for a return due after the July 30, 2004, effective date of the legislation.
22) The situations in which the IDOR may not apply the failure to disclose penalty include (1) where the failure to comply did not jeopardize the best interests of the state; (2) where the taxpayer has a history of complying with the tax laws; (3) where the violation is due to an unintentional mistake; and (4) where the taxpayer can show reasonable cause.
The challenge from IDOR
comes at a difficult time for providers, as the sector is being pressured by declining inpatient utilization, increasing charity and self-pay volumes, and tighter reimbursement from commercial and governmental payors.
In efforts to implement a more efficient and eco-friendly solution, IDOR
has an immediate need to implement the following process, which would automate data capturing and improve the Department%s business processes in compliance, processing, and information technology:
IDOR has gained these benefits by taking advantage of RightNow's unique ability to automate delivery of timely, accurate information at the point-of-contact with taxpayers across all communication channels.
IDOR uses the insights it gets from its RightNow system to generate reports that indicate if particular aspects of the tax code are giving the general public trouble.
IDOR also uses RightNow to pro-actively send out newsletters to tax practitioners in order to keep them updated about system errors and problems, upcoming events, and pending legislation.
RightNow lets us use the Internet to maximum advantage, so we can better serve the taxpaying public," Adrianne Erley, IDOR communications specialist, said.