Beginning January 1, 2014, protests of notices of deficiency, notices of tax liability, and notices of claim denial for more than $15,000 in tax, exclusive of penalty and interest, will be under the jurisdiction of the Illinois Independent Tax Tribunal. The Illinois Independent Tax Tribunal will also have jurisdiction if no tax deficiency is assessed, but the total penalties and interest to be assessed is more than $15,000.
Taxpayers who timely file a protest with the Department on or after June 1, 2013, of a notice of deficiency, notice of tax liability, or notice of claim denial that meets either of these criteria will be able to elect to transfer jurisdiction over the protest to the Illinois Independent Tax Tribunal. The election must be made on or after January 1, 2014 and on or before February 1, 2014. If a timely election is not made, the case will stay with the Department. A taxpayer who fails to file a protest within the period stated in the notice will not be able to proceed to the Illinois Independent Tax Tribunal. If you intend to protest, in order to protect your protest rights you MUST submit your protest to the Illinois Department of Revenue within 60 days of the date on the notice, even if you intend to elect to transfer your protest to the Illinois Independent Tax Tribunal. Failing to file a protest within the time allowed in the correspondence you received from us will forfeit your ability to protest.
More specific guidance will be released when the Illinois Independent Tax Tribunal becomes operational and adopts its own procedures. Taxpayers filing protests before that time, and who wish to make the election to transfer to the Illinois Independent Tax Tribunal, will be advised by the Department's Office of Administrative Hearings of the procedures they need to follow.
For more information see the following: Public Act 97-1129 Illinois Tax Tribunal Act of 2012 and Public Act 98-0024.