Illinois Notice of Proposed Tax Liability – 3 Things You Need To Know

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Illinois Notice of Proposed Tax Liability – 3 Things You Need To Know

 

 

Illinois business owners – If you’ve received a Notice of Proposed Tax Liability, you probably have questions.

 

This article briefly answers the three questions you may have after receiving this notice from the Illinois Department of Revenue – Audit Division.

 

Question # 1 – What Does This Mean?

 

This Notice of Proposed Tax Liability is basically Illinois’ written notice to you that you have been under audit and the audit is complete.

 

This is the auditor’s proposal of changes. What do those changes mean? They mean that Illinois has made a determination of whether your company owes additional tax.

 

This notice is not a bill. It’s a notice of Illinois’ proposal for the additional tax liability. It also says that if you disagree, you have some additional steps to take.

Question # 2 – What Do I Do?

 

If you agree with the determination, then no additional steps are needed. That proposal will eventually become a bill with added interest and penalties.

 

If you disagree, there’s another step that you must take. We’ll cover that step more in-depth in next week’s blog. But basically, that step is going to be filing a Form ICB-1, Request for Informal Conference Board Review.

 

Depending on the tax period audited, the Illinois Department of Revenue may require you to file a Form EDA-ICBW, Informal Conference Board Waiver.

 

Question # 3 – Do I Need a Lawyer?

 

If you decide to file a petition, should you do it yourself, or should you hire an attorney?

 

If your situation is just a matter of showing evidence that the state has not seen, it may be appropriate for you to represent yourself.

 

However, if there are real legal questions on:

 

  • Whether certain items should be taxable

 

  • Why you may have underreported the tax

 

 

 

Those are legal issues that have real consequences.

 

You only want an attorney to argue legal issues like these.

 

You know, it just makes sense. Have an attorney represent you if you have a legal problem with tax. Especially so if there may be real legal consequences.

 

For State Tax Audit Representation, contact Tax Law Offices. We can help.