Uniform Penalty and Interest Changes

              Public Act 93-0032 made several
changes to the Uniform Penalty and
Interest Act.
New calculations for the late-payment
penalty are effective for
tax returns due on or after
January 1, 2004.
An underreporting penalty will
replace the current additional
liability late-payment or
nonpayment penalty on returns
due on or after January 1, 2004.
An additional cost of collection fee
will be imposed if you do not pay
the total amount shown due on a
bill within 30 days of the notice
being issued. This is effective for
returns due on or after
July 1, 2003.
New interest rate calculations are
effective for interest accruing on
or after January 1, 2004.
The calculations for late-filing or
nonfiling, bad check, fraud, negli-gence,
and personal liability penalties
have not changed.
When is the late-payment
penalty assessed?
Estimated or quarter-monthly tax
payments — You owe a late-payment
penalty if you are required to
make either estimated tax payments
or quarter-monthly tax payments and
do not do so, or do not pay the
required amount by the payment due
date.
Uniform Penalty and Interest Changes
FY 2004-17
December 2003
Illinois Department of Revenue
Informational Bulletin
For information
or forms...
To:
Taxpayers and Tax Practitioners
Call us at:
1 800 732-8866 or
217 782-3336
Call our TDD
(telecommunications device
for the deaf) at:
1 800 544-5304
Write us at:
Illinois Department of Revenue
P.O. Box 19044
Springfield, IL 62794-9044
Visit our Web site at:
www.ILtax.com
Call
“Illinois Tax Fax,” our
fax-on-demand service, at:
217 785-3400
Call
our 24-hour
Forms Order Line at:
1 800 356-6302
Brian A. Hamer
Director of Revenue
Printed by authority of the State of Illinois
10,000 copies - 12/03 - P.O. Number 2040616
Regular tax payments — you owe a
late-payment penalty if you do not pay
the tax you owe by the original due
date of the return (even if you have an
extension of time to file).
What changes were made
to the late-payment
penalty calculation?
For returns due on or after January 1,
2004, the rates imposed, based on
the number of days the payment is
late, have changed. The new rates
are:
2 percent of any amount that is
paid no later than 30 days after the
due date;
10 percent of any amount that is
paid later than 30 days, but no
more than 90 days after the due
date;
15 percent of any amount that is
paid later than 90 days, but no
more than 180 days after the due
date; and
20 percent of any amount that is
paid later than 180 days after the
due date.
Do these changes to the
late-payment penalty apply
to returns due before
January 1, 2004?
No. For returns due before January 1,
2004, the rates indicated in the
Uniform Penalty and Interest Act
apply. See Publication 103, Uniform
Penalties and Interest for more
information.