General information
You have the right to fair and equitable treatment if your account has been selected for audit. Since the
audit function is to determine whether the correct amount of tax has been reported, we are as willing to
acknowledge tax overpayments or errors on our part as we are to recognize underpayments. We may
ask you to provide additional information to verify amounts shown on your returns. You have the right to
know why we are asking for information, how that information will be used, and what will happen if you
do not furnish the information.
Note: Additional information about the audit process can be found in Brochure PIO-60, Audit Information
for Business Taxpayers, which is available on our web site.
Changes due to an audit
If we propose any changes at the conclusion of an audit, we will explain the reasons for the changes
verbally and will provide you a written explanation as well. Make sure you understand the reasons for
any proposed changes; ask about anything that is unclear to you.
We will send you a Notice of Proposed Liability, Notice of Proposed Deficiency, or Notice of Claim
Denial, that
- states the specifi c reasons for the proposed assessment or claim denial; and
- informs you of your right to an informal review or in-person conference with members or representatives
- of the Informal Conference Board (ICB) if you do not agree with the audit.
Informal Conference Board (ICB)
The informal conference process is the fi rst step to resolve a tax dispute with the department. This
informal review process gives you an opportunity to resolve disagreements with the department after
a liability is proposed or claim denial is issued but before the formal protest and administrative hearing
process begins.
Written request required
You have 60 days after the Notice of Proposed Liability, Notice of Proposed Defi ciency, or Notice of Proposed
Claim Denial, is issued to fi le a written request with the ICB to review the proposed assessment
or claim denial. To make your written request, you must complete and submit Form ICB-1, Request for
Informal Conference Board Review.
You (or your authorized representative) must sign and date the request. Your authorized representative
must attach a properly executed Form IL-2848, Power of Attorney.
Your request must state the specifi c reasons for disagreeing with the proposed assessment or claim
denial and show why the department’s proposed tax calculation is incorrect. This request should reference
any information upon which you will rely.
In-person conferences
You may request an in-person conference with members or representatives of the ICB. An in-person
conference allows the ICB members or representatives and you (or your representative) to explore
the issues raised by the proposed assessment or proposed claim denial, develop the factual basis of
the request, and to consider other relevant information. If you want an in-person conference, you must
make this request in Step 4 on Form ICB-1.
The ICB may also request an in-person conference. If you do not agree to an in-person conference,
your request for relief may be denied because the ICB does not have suffi cient information to consider
your request.
An in-person conference will be scheduled 45 days after your request is received whenever possible
and will be established by mutual consent between you (or your representative) and the ICB members
or staff representatives conducting the conference. The ICB will mail a written notice of the date, time,
and location of the in-person conference to you (or your representative). If you (or your representative)
do not attend the scheduled conference, you waive your right to an in-person conference unless you
can show good cause for not attending.
Tax dispute settlements
You may submit a formal request to settle the tax dispute as part of your written request by completing
Form ICB-2, Offer of Disposition of a Proposed Assessment or Claim Denial. The ICB will notify you of
their decision in writing. If a tentative agreement is reached, the ICB staff will prepare a written agreement
that specifi es the terms of the proposed disposition. Two of the three ICB members must agree to
the terms for the dispute to be settled.
Note: The ICB does not accept or negotiate offers in compromise based on your inability to pay
the amount you owe. Offers in compromise should be directed to the department’s Board of
Appeals after a final assessment is issued.
What to expect during the conference
The ICB members or representatives will review the basis for the proposed assessment or claim denial
during the conference. You may present documents or additional information to support your position.
In addition, the ICB members or representatives may request additional information from you. You must
respond to the request within 30 days of the date of the request. If you do not, your request may be
denied.
Note: The 30-day time period to respond may be extended if both you (or your representative) and
the ICB representative agree to an extension.
Documentation or information submitted to the ICB in writing or as part of an informal conference does
not become part of any formal record and cannot be forwarded to any other administrative or judicial
body for purposes of that body making a determination on the merits of any case. Both you and the
department must present all evidence directly to those bodies under the rules of that body if they want
that evidence to be considered.
Final determination and Action Decision
The ICB determines whether or not the amount of the proposed assessment or claim denial is accurate.
After all information is considered, the ICB will issue an Action Decision. The Action Decision
must be issued within 90 days after your request is received and 2 of the 3 members of the ICB must
approve the document. The Action Decision is binding on the department and must be implemented
by those areas of the department to which it is directed. You (or your representative) will be given a
written notice of the Action Decision. The 90-day period may be extended by mutual agreement of both
you and the department, in writing, before the 90-day period expires.
Note:
Once the Action Decision has been issued, the audit will be concluded and an Audit Report
will be issued. You (or your representative) have 30 days from the issuance of the Audit Report
to take action on the Audit Report before the audit is concluded.
Regulations regarding the Informal Conference Board are located in 86 Illinois Administrative Code,
Part 215.
Your protest rights
If you do not agree with the audit, you have 60 days from the date a notice of tax liability, notice of deficiency, or notice of claim denial is issued to fi le a written protest and request a hearing with us. Interest
will continue to accrue on the deficiency or overpayment while a protest is pending.
