(35 ILCS 5/Art. 11 heading)
ARTICLE 11.
LIENS AND JEOPARDY ASSESSMENT.
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(35 ILCS 5/1101) (from Ch. 120, par. 11-1101)
Sec. 1101. Lien for Tax.
(a) If any person liable to pay any tax
neglects or refuses to pay the same after demand, the amount (including any
interest, additional amount,
addition to tax, or assessable penalty, together with any costs that may
accrue in addition thereto) shall be a lien in favor of the State of
Illinois upon all property and rights to property, whether real or
personal, belonging to such person.
(b) Unless another date is specifically fixed by law, the lien imposed
by subsection (a) of this Section shall arise at the time the assessment is
made and shall continue until the liability for the amount so assessed (or
a judgment against the taxpayer arising out of such liability) is satisfied
or becomes unenforceable by reason of lapse of time.
(c) Deficiency procedure. If the lien arises from an assessment
pursuant to a notice of deficiency, such lien shall not attach and the
notice referred to in this Section shall not be filed until all proceedings
in court for review of such assessment have terminated or the time for the
taking thereof has expired without such proceedings being instituted.
(d) Notice of lien. The lien created by assessment shall
terminate unless a notice of lien is filed, as provided in Section 1103 hereof,
within 3 years from the date all proceedings in court for the review of
such assessment have terminated or the time for the taking thereof has
expired without such proceedings being instituted. Where the lien results
from the filing of a return without payment of the tax or penalty shown
therein to be due, the lien shall terminate unless a notice of lien is
filed within 3 years from the date such return was filed with the
Department.
For the purposes of this subsection (d), a tax return filed before the last
day prescribed by law, including any extension thereof, shall be deemed to
have been filed on such last day. The time limitation period on the Department's right to file a notice of lien shall not run (1) during any period of time in which the order of any court has the effect of enjoining or restraining the Department from filing such notice of lien, or (2) during the term of a repayment plan that taxpayer has entered into with the Department, as long as taxpayer remains in compliance with the terms of the repayment plan.
(Source: P.A. 97-507, eff. 8-23-11; 98-446, eff. 8-16-13.)
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(35 ILCS 5/1102) (from Ch. 120, par. 11-1102)
Sec. 1102.
Jeopardy Assessments.
(a) Jeopardy assessment and lien.
(1) Assessment. If the Department finds that a
| | taxpayer is about to depart from the State, or to conceal himself or his property, or to do any other act tending to prejudice or to render wholly or partly ineffectual proceedings to collect any amount of tax or penalties imposed under this Act unless court proceedings are brought without delay, or if the Department finds that the collection of such amount will be jeopardized by delay, the Department shall give the taxpayer notice of such findings and shall make demand for immediate return and payment of such amount, whereupon such amount shall be deemed assessed and shall become immediately due and payable.
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(2) Filing of lien. If the taxpayer, within 5 days
| | after such notice (or within such extension of time as the Department may grant), does not comply with such notice or show to the Department that the findings in such notice are erroneous, the Department may file a notice of jeopardy assessment lien in the office of the recorder of the county in which any property of the taxpayer may be located and shall notify the taxpayer of such filing. Such jeopardy assessment lien shall have the same scope and effect as a statutory lien under this Act. The taxpayer is liable for the filing fee incurred by the Department for filing the lien and the filing fee incurred by the Department to file the release of that lien. The filing fees shall be paid to the Department in addition to payment of the tax, penalty, and interest included in the amount of the lien.
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(b) Termination of taxable year. In the case of a tax for a current
taxable year, the Director shall declare the taxable period of the taxpayer
immediately terminated and his notice and demand for a return and immediate
payment of the tax shall relate to the period declared terminated,
including therein income accrued and deductions incurred up to the date of
termination if not otherwise properly includible or deductible in respect
of such taxable year.
(c) Protest. If the taxpayer believes that he does not owe some or
all of the amount for which the jeopardy assessment lien against him has
been filed, or that no jeopardy to the revenue in fact exists, he may
protest within 20 days after being notified by the Department of the filing
of such jeopardy assessment lien and request a hearing, whereupon the
Department shall hold a hearing in conformity with the provisions of
section 908 and, pursuant thereto, shall notify the taxpayer of its
decision as to whether or not such jeopardy assessment lien will be
released.
(Source: P.A. 92-826, eff. 1-1-03.)
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(35 ILCS 5/1103) (from Ch. 120, par. 11-1103)
Sec. 1103.
Filing and Priority of Liens.
(a) Filing with Recorder.
Nothing in this Article shall be construed
to give the Department a preference over the rights of any bona fide
purchaser, holder of a security interest, mechanics lienor, mortgagee,
or judgment lien creditor arising prior
to the filing of a regular notice of lien or a notice of jeopardy
assessment lien in the office of the recorder in the county in
which the property subject to the lien is located. For purposes of this
section, the term "bona fide," shall not include any mortgage of real or
personal property or any other credit transaction that results in the
mortgagee or the holder of the security acting as trustee for unsecured
creditors of the taxpayer mentioned in the notice of lien who executed such
chattel or real property mortgage or the document evidencing such credit
transaction. Such lien shall be inferior to the lien of general taxes,
special assessments and special taxes heretofore or hereafter levied by any
political subdivision of this State.
(b) Filing with Registrar. In case title to land to be affected by
the notice of lien or notice of jeopardy assessment lien is registered
under the provisions of "An Act concerning land titles," approved May 1,
1897, as amended, such notice shall be filed in the office of the
Registrar of Titles of the county within which the property subject to the
lien is situated and shall be entered upon the register of titles as a
memorial of charge upon each folium of the register of titles affected by
such notice, and the Department shall not have a preference over the rights
of any bona fide purchaser, mortgagee, judgment creditor or other lien
holder arising prior to the registration of such notice.
(c) Index. The recorder of each county shall procure a file
labeled "State Tax Lien Notices" and an index book labeled "State Tax Lien
Index." When notice of any lien or jeopardy assessment lien is presented to
him for filing, he shall file it in numerical order in the file and shall
enter it alphabetically in the index. The entry shall show the name and
last known address of the person named in the notice, the serial number of
the notice, the date and hour of filing, whether it is a regular lien or a
jeopardy assessment lien, and the amount of tax and penalty due and unpaid,
plus the amount of interest due at the time when the notice of lien or
jeopardy assessment is filed.
(d) No recorder or registrar of titles of any county shall require
that the Department pay any costs or fees in connection with recordation of
any notice or other document filed by the Department under this Act at the
time such notice or other document is presented for recordation. The
recorder or registrar of each county, in order to receive payment for fees
or costs incurred by the Department, shall present the Department with
monthly statements indicating the amount of fees and costs incurred by the
Department and for which no payment has been received.
This amendatory Act of 1987 applies to all liens heretofore or hereafter filed.
(e) The taxpayer is liable for the filing fee incurred by the Department
for filing the lien and the filing fee incurred by the Department to file the
release of that lien. The filing fees shall be paid to the Department in
addition to payment of the tax, penalty, and interest included in the amount of
the lien.
(Source: P.A. 92-826, eff. 1-1-03.)
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(35 ILCS 5/1104) (from Ch. 120, par. 11-1104)
Sec. 1104.
Duration
of Lien.
The lien provided herein shall continue for 20 years from the date of
filing the notice of lien under the provisions of section 1103 unless
sooner released, or otherwise discharged.
The provisions of this amendatory Act of 1984 shall apply to any lien
which has not expired on or before the effective date of this amendatory
Act of 1984.
(Source: P.A. 83-1416.)
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(35 ILCS 5/1105) (from Ch. 120, par. 11-1105)
Sec. 1105.
Release of Liens.
(a) In general.
Upon payment by the taxpayer to the Department in cash or by guaranteed
remittance of an amount representing the filing fees and charges for the lien
and the filing fees and charges for the release of that lien,
the Department shall release all or any portion of
the property subject to any lien provided for in this Act
and file that complete or partial release of lien with the recorder of the
county where that lien was filed
if it determines
that the release will not endanger or jeopardize the collection of the
amount secured thereby.
(b) Judicial determination. If on judicial review the final judgment
of the court is that the taxpayer does not owe some or all of the amount
secured by the lien against him, or that no jeopardy to the revenue exists,
the Department shall release its lien to the extent of such finding of
nonliability, or to the extent of such finding of no jeopardy to the
revenue.
The taxpayer shall, however, be liable for the filing fee paid by the
Department to file the lien and the filing fee required to file a release of
the lien. The filing fees shall be paid to the Department.
(c) Payment. The Department shall also release its jeopardy
assessment lien against the taxpayer whenever the tax and penalty covered
by such lien, plus any interest which may be due
and an amount representing the filing fee to file the lien and the filing fee
required to file a release of that lien, are paid
by the taxpayer to the Department in cash or by guaranteed remittance.
(d) Certificate of release. The Department shall issue a certificate
of complete or partial release of the lien
upon payment by the taxpayer to the Department in cash or by guaranteed
remittance of an amount representing the filing fee paid by the Department to
file the lien and the filing fee required to file the release of that lien:
(1) to the extent that the fair market value of any
| | property subject to the lien exceeds the amount of the lien plus the amount of all prior liens upon such property;
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(2) to the extent that such lien shall become
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(3) to the extent that the amount of such lien is
| | paid by the person whose property is subject to such lien, together with any interest and penalty which may become due under this Act between the date when the notice of lien is filed and the date when the amount of such lien is paid;
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(4) to the extent that there is furnished to the
| | Department on a form to be approved and with a surety or sureties satisfactory to the Department a bond that is conditioned upon the payment of the amount of such lien, together with any interest which may become due under this Act after the notice of lien is filed, but before the amount thereof is fully paid;
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(5) to the extent and under the circumstances
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A certificate of complete or partial release of any lien shall be held
conclusive that the lien upon the property covered by the certificate is
extinguished to the extent indicated by such certificate.
Such release of lien shall be issued to the person, or his agent, against
whom the lien was obtained and shall contain in legible letters a statement as
follows:
FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
BE FILED WITH THE RECORDER OR THE REGISTRAR
OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
(e) Filing. When a certificate of complete or partial release of lien
issued by the Department is presented for filing in the office of the
recorder or Registrar of Titles where a notice of lien or notice
of jeopardy assessment lien was filed:
(1) the recorder, in the case of nonregistered
| | property, shall permanently attach the certificate of release to the notice of lien or notice of jeopardy assessment lien and shall enter the certificate of release and the date in the "State Tax Lien Index" on the line where the notice of lien or notice of jeopardy assessment lien is entered; and
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(2) in the case of registered property, the Registrar
| | of Titles shall file and enter upon each folium of the register of titles affected thereby a memorial of the certificate of release which memorial when so entered shall act as a release pro tanto of any memorial of such notice of lien or notice of jeopardy assessment lien previously filed and registered.
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(Source: P.A. 92-826, eff. 1-1-03.)
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(35 ILCS 5/1106) (from Ch. 120, par. 11-1106)
Sec. 1106.
Nonliability for Costs.
The Department shall not be required to furnish any bond nor to make a
deposit for or pay any costs or fees of any court or officer thereof in any
legal proceedings pursuant to the
provisions of this Act.
(Source: P.A. 83-358; 83-889.)
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(35 ILCS 5/1107) (from Ch. 120, par. 11-1107)
Sec. 1107.
Claim to Property.
Whenever any process, issued from any court
for the enforcement or collection of any liability created by this Act, shall
be levied by any sheriff or other authorized person upon any personal
property, and such property shall be claimed by any person other than the
defendant as exempt from enforcement
of a judgment thereon by virtue of the exemption laws of this State, then it shall be
the duty of the person making such claim to give notice in writing of his
claim and of his or her intention to prosecute the same, to the sheriff or
other person within 10 days after the making of the levy. On receiving such
notice, the sheriff or other person shall proceed in accordance with the
provisions of Part 2 of Article XII of the Code of Civil Procedure, as amended.
The giving of
such notice within the 10-day period shall be a condition precedent to any
judicial action against the sheriff or other authorized person
for wrongfully
levying, seizing or selling the property and any such person
who fails to give notice within the time shall be forever barred
from bringing any judicial action against such sheriff or
other person for injury or damages to
or conversion of said property.
(Source: P.A. 83-346.)
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(35 ILCS 5/1108) (from Ch. 120, par. 11-1108)
Sec. 1108.
Foreclosure on Real Property.
In addition to any other remedy provided for by the laws of this State,
and provided that no hearing or proceedings for review provided by this Act
shall be pending, and the time for the taking thereof shall have expired,
the Department may foreclose in the circuit court any
lien on real property for any tax or penalty imposed by this Act to the
same extent and in the same manner as in the enforcement of other liens.
Such proceedings to foreclose shall not be instituted more than 5 years
after the filing of the notice of lien under the provisions of Section
1103. The process, practice and procedure for such foreclosure shall be
the same as provided in the Civil Practice Law, as
amended.
(Source: P.A. 82-783.)
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(35 ILCS 5/1109) (from Ch. 120, par. 11-1109)
Sec. 1109.
Demand and Seizure.
In addition to any other remedy
provided for by the laws of this State, if the tax imposed by this Act
is not paid within the time required by this Act, the Department, or
some person designated by it, may cause a demand to be made on the
taxpayer for the payment thereof. If such tax remains unpaid for 10
days after such demand has been made and no proceedings have been taken
to review the same, the Department may issue a warrant directed to any
sheriff or other person authorized to serve process, commanding the
sheriff or other person to levy upon the property and rights to property
(whether real or personal, tangible or intangible) of the taxpayer, without
exemption, found within his jurisdiction, for the payment of the amount
thereof with the added penalties, interest and the cost of executing the
warrant. The term "levy" includes the power of distraint and seizure by any
means. In any case in which the warrant to levy has been issued, the
sheriff or other person to whom the warrant was directed may seize and sell
such property or rights to property. Such warrant
shall be returned to the Department together with the money collected by
virtue thereof within the time therein specified, which shall not be
less than 20 nor more than 90 days from the date of the warrant. The
sheriff or other person to whom such warrant is directed shall proceed in the
same manner as prescribed by law in respect to the enforcement against
property upon judgments by a court, and shall be entitled to the same
fees for his services in executing the warrant, to be collected in the
same manner. The Department, or some officer, employee or agent
designated by it, is hereby authorized to bid for and purchase any
property sold under the provisions hereof. No proceedings for a levy
under this Section shall be commenced more than 20 years after the latest
date for filing
of the notice of lien under the provisions of Section 1103, without regard
to whether such notice was actually filed.
Any officer or employee of the Department designated in writing by the
Director is authorized to serve process under this Section to levy upon
accounts or other intangible assets of a taxpayer held by a financial
organization, as defined in Section 1501 of this Act.
In addition to any other provisions of this Section, any officer or
employee of the Department designated in writing by the Director may levy
upon the following property and rights to property belonging to a taxpayer:
contractual payments, accounts and notes receivable and other evidences of
debt, and interest on bonds, by serving a notice of levy on the person
making such payment. Levy shall not be made until the Department has
caused a demand to be made on the taxpayer in the manner provided above.
In addition to any
other provisions
of this Section, any officer or employee of the Department designated in
writing by the Director, may levy upon the salary, wages, commissions and
bonuses of any employee, including
officers,
employees, or elected officials of the United States as authorized by
Section
5520a of the Government Organization and Employees Act (5 U.S.C. 5520a), but
not upon the salary or wages of officers, employees, or elected officials of
any state other than this State, by serving a notice of levy on the employer, as defined in
Section 701(d). Levy shall not be made until the Department has caused a
demand to be made on the employee in the manner provided above. The
provisions of Section 12-803 of the Code of Civil Procedure relating to
maximum compensation subject to collection under wage deduction orders shall
apply to all levies made upon compensation
under this Section.
To the extent of the amount due on the levy, the employer or other person
making payments to the taxpayer shall hold any non-exempt wages or other
payments due or which subsequently come due. The levy or balance due
thereon is a lien on wages or other payments due at the time of the service
of the notice of levy, and such lien shall continue as to subsequent
earnings and other payments until the total amount due upon the levy is
paid, except that such lien on subsequent earnings or other payments shall
terminate sooner if the employment relationship is terminated or if the
notice of levy is rescinded or modified. The employer or other person making
payments to the taxpayer shall file, on or before the return dates stated
in the notice of levy (which shall not be more often than bimonthly) a
written answer under oath to interrogatories, setting forth the amount due
as wages or other payments to the taxpayer for the payment periods ending
immediately prior to the appropriate return date. A lien obtained
hereunder shall have priority over any subsequent lien obtained pursuant to
Section 12-808 of the Code of Civil Procedure, except that liens for the
support of a spouse or dependent children shall have priority over all
liens obtained hereunder.
In any case where property or rights to property have been seized by an
officer of the Illinois Department of State Police, or successor agency
thereto, under the authority of a warrant to levy issued by the Department
of Revenue, the Department of Revenue may take possession of and may sell
such property or rights to property and the Department of Revenue may
contract with third persons to conduct sales of such property or rights to
the property. In the conduct of such sales, the Department of Revenue
shall proceed in the same manner as is prescribed by law for proceeding
against property to enforce judgments which are entered by a circuit court
of this State. If, in the Department of Revenue's opinion, no offer to
purchase at such sale is acceptable and the State's interest would be
better served by retaining the property for sale at a later date, then the
Department may decline to accept any bid and may retain the property for
sale at a later date.
(Source: P.A. 89-399, eff. 8-20-95.)
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(35 ILCS 5/1110) (from Ch. 120, par. 11-1110)
Sec. 1110.
Redemption by State.
The provisions of sections 5g and 5h of the Retailers' Occupation Tax
Act (relating to time for redemption by the State of real estate sold at
judicial or execution sale) as in effect on the effective date of this Act,
or as subsequently amended, shall apply for purposes of this Act as if such
sections were set forth herein in their entirety.
(Source: P.A. 76-261.)
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