Section 100.9300 Deficiencies and Overpayments (IITA Section 904)

Section 100

TITLE 86: REVENUE

CHAPTER I: DEPARTMENT OF REVENUE

PART 100 INCOME TAX

SECTION 100.9300 DEFICIENCIES AND OVERPAYMENTS (IITA SECTION 904)

Section 100.9300 Deficiencies

and Overpayments (IITA Section 904)

a)         Examination

of return

The Department

shall examine a return as soon as practicable after it is filed to determine

the correct amount of tax. If for reasons other than mathematical error (see Section

100.9200(a)(1) of this Part) the Department finds that the correct amount of tax

exceeds that shown on the return, and the taxpayer disagrees, the Department

then shall issue to the taxpayer, subject to applicable limitations in IITA

Section 905 (see Section 100.9230 of this Part), a notice of deficiency which

shall set forth the amount of tax and any penalties proposed to be assessed. (See

IITA Section 904(c).) Note that, in the absence of a written protest of the notice

so issued (see 86 Ill. Adm. Code 200.120(b)), the Department's final action

thereunder is not an administrative decision subject to judicial review (except

as to jurisdictional questions) under the provisions of the Administrative

Review Act (see Section 100.9600 of this Part). If the Department finds that

the tax paid exceeds the correct amount, it shall credit or refund the

overpayment as provided by IITA Section 909. The Department's findings under

this subsection (a) shall be deemed prima facie correct and shall constitute prima

facie evidence of the correctness of the amount of tax and penalties due

Administrative

Review Act (see Section 100.9600 of this Part). If the Department finds that

the tax paid exceeds the correct amount, it shall credit or refund the

overpayment as provided by IITA Section 909. The Department's findings under

this subsection (a) shall be deemed prima facie correct and shall constitute prima

facie evidence of the correctness of the amount of tax and penalties due.

b)         No

return filed

If any

taxpayer fails to file a return required by the Act, the Department under its

authority for access to books and records and to conduct examinations,

investigations, and hearings provided in IITA Sections 913 through 916, using any

reasonable method in accordance with its best judgment and information, shall

determine the correct amount of tax due and without any time limitation (see

IITA Section 905(c)) shall issue to the taxpayer a notice of deficiency setting

forth the amount of tax and penalties proposed to be assessed. The term "reasonable

method", for example, shall include any method or combination of methods

to reconstruct the taxpayer's Illinois net income established or acceptable under

federal 26 USC 446, e.g., methods based in whole or part on cash register receipts,

specific items of income or expense, bank deposits, expenditures (including use

of the rule in Cohan v. Commissioner, 39 F. 2d 540 (2d Cir.), to determine the

amounts of allowable expenses), net worth, or other acceptable or accepted

method. (In this connection see also Section 100.9200(a)(4) of this Part.) The Department's

determination shall be deemed prima facie correct and shall constitute prima facie

evidence of the correctness of the amount of tax due.

c)         Notice

of deficiency

A notice of

deficiency issued under the Act shall set forth the reasons therefor and a

basis sufficient to inform the taxpayer of the adjustments giving rise to the

proposed assessment

00(a)(4) of this Part.) The Department's

determination shall be deemed prima facie correct and shall constitute prima facie

evidence of the correctness of the amount of tax due.

c)         Notice

of deficiency

A notice of

deficiency issued under the Act shall set forth the reasons therefor and a

basis sufficient to inform the taxpayer of the adjustments giving rise to the

proposed assessment. In case a joint return was filed, the Department may issue

a single joint notice of deficiency to the taxpayers unless it has been

notified by either of the spouses that separate residences have been

established in which case it shall issue the joint notice of deficiency to each

spouse.

d)         Assessment when no protest

The amount of

tax and penalties specified in a notice of deficiency shall be deemed assessed upon

the expiration of 60 days (150 days if the taxpayer is outside the United

States) from the date of issuance to the taxpayer except only for such amounts as

to which the taxpayer shall have filed a protest as provided in IITA Section 908.

(See 86 Ill. Adm. Code 200.120(b).)