Read the instructions that came with the letter or notice sent to you from IDOR and call the telephone number on that letter or notice if you have any questions. For disputing a license denial or certificate of registration denial issued by IDOR, please see question How do I protest a License or Certificate of Registration denial?
Proposed Deficiency, Assessment, or Claim Denial
If you have been contacted by IDOR's Audit Bureau, and you have received one or more of the following notices, you may request a review by IDOR's Informal Conference Board (ICB).
· Notice of Proposed Deficiency
· Notice of Proposed Liability
· Notice of Proposed Claim Denial
· Notice of Proposed Liability and Claim Denial,
Follow the instructions on the notice and submit a written request within 60 days of the issuance of the notice you received.
Alternately, certain businesses that are under audit may also request review by IDOR's Fast Track Resolution (FTR) Program prior to a proposed assessment or claim denial being issued. 'For additional information, please see What are my options to resolve issues after my audit?
Deficiency, Assessment, and Claim Denial
You generally have three options to dispute an IDOR assessment or claim denial depending upon the reason for and desired outcome of your dispute. For any of the options to be valid, you must receive a notice from the department that specifically informs you that you have protest rights regarding the deficiency, assessment, or claim denial.
These notices include
· Notice of Deficiency (NOD)
· Notice of Tax Liability (NTL)
· Notice of Personal Liability (including Section 1002(d)) (NPL)
· Notice of Claim Denial
(1) Request an administrative hearing or file a petition with the Independent Tax Tribunal within 60 days (30 days for IFTA) of the date of a notice informing you of your protest rights. This is the only option available if you are disputing a claim denial.
(2) Waive the administrative hearing or Independent Tax Tribunal process and go directly to circuit court (requires a payment under protest). You cannot file with the circuit court to dispute claim denials issued by IDOR.
(3) File a petition with the Board of Appeals for waivers of penalties and interest due to reasonable cause or an offer in compromise because you cannot afford to pay the liability. The Board of Appeals does not entertain requests to redetermine your final tax liability for any other reason.
1. Request an administrative hearing or file a petition with the Independent Tax Tribunal within 60 days (30 days for IFTA) of the issuance of a notice containing protest rights. If you receive any other notice from IDOR, you may not file a protest. Respond directly to the notice and include any corrected information. File a petition with the Illinois Independent Tax Tribunal within the time specified on your notice if
- the amount of your tax liability ─ excluding penalty and interest ─ is more than $15,000, or
- no tax liability is assessed, but the total penalties and interest is more than $15,000.
Visit the Illinois Independent Tax Tribunal's website for petition requirements and guidelines. Filing a petition with the tax tribunal will result in a legal proceeding.*
If the amounts at issue are not under the jurisdiction of the Illinois Independent Tax Tribunal and you wish to file a protest and request an administrative hearing with IDOR, follow the instructions on your notice, and complete and submit the appropriate form:
o Income tax protests ─ Form EAR-14, Format for Filing a Protest for Income Tax
o All other tax types ─ Form AH-4, Protest and Request for Administrative Hearing with the Illinois Department of Revenue
*Note: The following taxes are not under the jurisdiction of the Illinois Independent Tax Tribunal and may only be protested by requesting an administrative hearing with IDOR:
- Adult Use Cannabis Cultivation Privilege Tax
- Aviation Fuel Sales and Use Tax
- Bingo Tax
- Cannabis Purchaser Excise Tax
- Cigarette Machine Operators' Occupation Tax
- Charitable Games Tax
- Chicago Home Rule Municipal Soft Drink Retailers' Occupation Tax
- County Motor Fuel Tax
- Dry Cleaning Solvent Tax
- Energy Assistance Charges - Electric and Gas
- Illinois Telecommunications Access Corporation (ITAC) Assessment
- Illinois Hydraulic Fracturing Tax
- Liquor Taxes
- Live Adult Entertainment Facility Surcharge
- Medical Cannabis Cultivation Privilege Tax
- Metropolitan Pier and Exposition Authority (MPEA) Food & Beverage Tax
- Parking Excise Tax
- Prepaid Wireless E911 Surcharge
- Private Party Vehicle Use Tax
- Pull Tabs Tax
- Real Estate Transfer Tax
- Renewable Energy Resources and Coal Technology Development Assistance Charge
- Rental Housing Support Program Surcharge
- Rental Purchase Agreement Occupation and Use Tax
- Tire User Fee
To contact the Illinois Independent Tax Tribunal, write or call:
ILLINOIS INDEPENDENT TAX TRIBUNAL
160 N LASALLE ST
CHICAGO IL 60601
Phone: 312 814-4285
Fax: 312 814-4768
To contact IDOR's Office of Administrative Hearings, write or email:
Illinois Department of Revenue
Office of Administrative Hearings MC 5-550
101 W. Jefferson Street
P.O. Box 19014
Springfield, Illinois 62794-9014
Phone: 217 782-6995
Fax: 217 524-5341
2. Waive the administrative hearing process and go directly to circuit court (requires a payment under protest).
For cases other than claim denials, you may elect to bypass the administrative hearing or tax tribunal process by paying the total amount due under protest with a
· completed Form RR-374, Notice of Payment Under Protest, or
· written payment-under-protest letter in the format specified in Sections 2a and 2a.1 of the State Officers and Employees Money Disposition Act ( 30 ILCS 230/2a, 230/2a.1).
Send Form RR-374 or written letter to the address shown on the notice informing you of your protest rights. To complete this process, you must
- file a complaint in circuit court,
- obtain a preliminary injunction, and
- serve the preliminary injunction on the Illinois Department of Revenue and Illinois State Treasurer within 30 days of making your protest payment.
Note: By submitting Form RR-374, you are waiving the right to file a petition with the Illinois Independent Tax Tribunal or file a protest with the Illinois Department of Revenue to request an administrative hearing. Do not complete Form RR-374 if you intend to file a petition with the Illinois Independent Tax Tribunal or file a protest with the Illinois Department of Revenue to request an administrative hearing.
3. File a petition with the Board of Appeals for waivers of penalties and interest if you believe there is reasonable cause, or you are making an offer in compromise because you cannot afford to pay the liability.
To petition the Board of Appeals (BOA), use Form BOA-1, Board of Appeals Petition. The purpose of the BOA is to ensure that we have treated you fairly and provide relief when appropriate. The BOA has the authority to waive penalties and interest based on reasonable cause and to reduce a final liability if it is likely the full debt cannot be collected. The BOA does not have the authority to redetermine your final tax liability or to review administrative hearings, Tax Tribunal decisions, or any appeal of that decision to the court.
To contact the Board of Appeals, write or call:
ILLINOIS DEPARTMENT OF REVENUE
BOARD OF APPEALS
JAMES R THOMPSON CENTER, SUITE 7-356
100 W RANDOLPH ST
CHICAGO IL 60601-3274
Phone: 312 814-3004
Fax: 312 814-3055