Illinois penalty and interest changes.

Several changes were made to the Uniform Penalty and Interest Act. These changes are outlined in IL DOR Information Bulletin FY 2004-17 and include:
– 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 of nonpayment penalty on returns due on or after January 1, 2004
– If you do not pay the total amount shown due on a bill within 30 days of the notice being issued, an additional cost of collection fee will be imposed. 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.
Additional information can be found at the Illinois Department of Revenue website, (Illinois Department of Revenue, Uniform Penalty and Interest Changes Informational Bulletin FY 2004-17)

Posted on February 15, 2004