Village of Elmwood Park, IL Tax Rights and Responsibilities

Any notice of tax assessment due must be sent by United States registered or certified mail.

The local tax administrator shall send a written statement to a taxpayer whenever the local government issues a protestable notice of tax due, a bill, a claim denial, or a notice of claim reduction regarding any tax. The statement shall include the following information:

(1)

The reason for the assessment;

(2)

The amount of the tax liability proposed;

(3)

The procedure for appealing the assessment; and

(4)

The obligations of the Village during the audit, appeal, refund and collection process.

§ 29-62 Credits and Refunds.

[Ord. 2000-29, 12-4-2000, § 1]

The Village shall not refund or credit any taxes voluntarily paid without written protest at the time of payment in the event that a locally imposed and administered tax is declared invalidly enacted or unconstitutional by a court of competent jurisdiction. However, a taxpayer shall not be deemed to have paid the tax voluntarily if the taxpayer lacked knowledge of the facts upon which to protest the taxes at the time of payment or if the taxpayer paid the taxes under duress.

The statute of limitations on a claim for credit or refund for all locally imposed and administered taxes shall be one year after the end of the calendar year in which payment in error was made. The Village shall not grant a credit or refund of locally imposed and administered taxes, interest, or penalties to a person who has not paid the amounts directly to the Village.

The procedure for claiming a credit or refund of locally imposed and administered taxes, interest or penalties paid in error shall be as follows:

(1)

The taxpayer shall submit to the local tax administrator in writing a claim for credit or refund, which consists of a statement specifying:

(A)

The name of the locally imposed and administered tax subject to the claim;

(B)

The tax period for the locally imposed and administered tax subject to the claim;

(C)

The date of the tax payment subject to the claim and the canceled check or receipt for payment;

(D)

The taxpayer's recalculation, accompanied by an amended or revised tax return, in connection with the claim; and

(E)

A request for either a refund or a credit in connection with the claim to be applied to the amount of tax, interest and penalties overpaid, and, as applicable, related interest on the amount overpaid; provided, however, that there shall be no refund and only a credit given in the event the taxpayer owes any monies to the Village.

(2)

Within 45 days of the receipt by the local tax administrator of any claim for a refund or credit, the local tax administrator shall either:

(A)

Grant the claim; or

(B)

Deny the claim, in whole or in part, together with a statement as to the reason for the denial or the partial grant and denial.

(3)

In the event the local tax administrator grants, in whole or in part, a claim for refund or credit, the amount of the grant for refund or credit shall bear interest at the rate of 18% per annum, based on a year of 365 days and the number of days elapsed, from the date of the overpayment to the date of mailing of a refund check or the grant of a credit.

§ 29-63 Audit Procedure.

[Ord. 2000-29, 12-4-2000, § 1]

A taxpayer must be notified in writing of a proposed audit of any locally administered tax. Each notice of audit shall contain the following information:

(1)

The tax;

(2)

The time period of the audit; and

(3)

A brief description of the books and records to be made available for the auditor.

Any audit shall be conducted during normal business hours not less than seven days from the date the notice is given. A reasonable effort should be made to schedule the audit on a date and time convenient to the taxpayer, but such audit shall be conducted within 30 days from the date notice is given.

Every taxpayer shall keep accurate books and records of the taxpayer's business or activities, including original source documents and books of entry denoting the transactions which had given rise or may have given rise to any tax liability, exemption or deduction. All books shall be kept in the English language and shall be subject to and available for inspection by the Village.

(d)

It is the duty and responsibility of every taxpayer to make available its books and records for inspection by the Village. If the taxpayer (or tax collector) fails to provide the documents necessary for audit within the time period, the local tax administrator may issue a tax determination and assessment based on the tax administrator's determination of the best estimate of the taxpayer's tax liability.

(e)

If an audit determines there has been an overpayment of a locally imposed and administered tax as a result of the audit, written notice of the amount of overpayment shall be given to the taxpayer within 45 days of the Village's determination of the amount of overpayment.

(f)

In the event a tax payment was submitted to the incorrect local governmental entity, the local tax administrator shall notify the local governmental entity imposing such tax.

§ 29-64 Appeal Process.

[Ord. 2000-29, 12-4-2000, § 1]

The procedure for appealing a determination of tax due or an assessment is as follows:

Taxpayer who believes his or her determination of tax due or assessment is in error may file with the local tax administrator a written appeal setting forth the basis of the taxpayer's appeal. The written appeal must be filed with the local tax administrator within 45 days of receipt of the written notice of the tax determination and assessment.

If a timely written appeal is filed, the local tax administrator shall review the determination or assessment, and all documentation provided by the taxpayer. If the local tax administrator determines the original determination or assessment was in error, he or she shall correct the determination of tax due or assessment accordingly. If the local tax administrator determines the original determination of tax due or assessment was correct, he or she shall reject the taxpayer's appeal, and the original determination or assessment shall stand. The local tax administrator shall rule on the taxpayer's appeal within 60 days of receipt of the written protest, and shall provide written notice to the taxpayer of his or her decision.

If a written appeal is not filed within the forty-five-day period, the tax determination, audit or assessment shall become a final bill due and owing without further notice.

(d)

Upon the showing of reasonable cause by the taxpayer and the full payment of the contested tax liability along with interest accrued as of the due date of the tax, the local tax administrator may reopen or extend the time for filing a written protest. In no event shall the time for filing a written protest be reopened or extended for more than 90 days after the expiration of the forty-five-day period.

§ 29-65 Interest and Penalties.

[Ord. 2000-29, 12-4-2000, § 1]

In the event a determination has been made that a tax is due and owing, through audit, assessment or other bill sent, the tax must be paid within the time frame otherwise indicated.

Interest. The Village hereby provides for the amount of interest to be assessed on a late payment, underpayment, or nonpayment of the tax, to be 18% per annum, based on a year of 365 days and the number of days elapsed.

Late Filing and Payment Penalties. If a tax return is not filed within the time and manner provided by the controlling tax ordinance, a late filing penalty of 5% of the amount of tax required to be shown as due on a return shall be imposed; and a late payment penalty of 5% of the tax due shall be imposed. If no return is filed within the time or manner provided by the controlling tax ordinance and prior to the Village issuing a notice of tax delinquency or notice of tax liability, then a failure to file penalty shall be assessed equal to 25% of the total tax due for the applicable reporting period for which the return was required to be filed. A late filing or payment penalty shall not apply if a failure to file penalty is imposed by the controlling ordinance.

§ 29-66 Abatement.

[Ord. 2000-29, 12-4-2000, § 1]

The local tax administrator shall have the authority to waive or abate any late filing penalty, late payment penalty or failure to file penalty if the local tax administrator shall determine reasonable cause exists for delay or failure to make a filing.

§ 29-67 Installment Contracts.

[Ord. 2000-29, 12-4-2000, § 1]

The Village may enter into an installment contract with the taxpayer for the payment of taxes under the controlling tax ordinance. The local tax administrator may not cancel any installment contract so entered unless the taxpayer fails to pay any amount due and owing. Upon written notice by the local tax administrator that the payment is 30 days delinquent, the taxpayer shall have 14 working days to cure any delinquency. If the taxpayer fails to cure the delinquency within the fourteen-day period or fails to demonstrate good faith in restructuring the installment contract with the local administrator, the installment contract shall be canceled without further notice to the taxpayer.

§ 29-68 Statute of Limitations.

[Ord. 2000-29, 12-4-2000, § 1]

The Village, through the local tax administrator, shall review all tax returns in a prompt and timely manner and inform taxpayers of any amounts due and owing. The taxpayer shall have 45 days after receiving notice of the reviewed tax returns to make any request for refund or provide any tax still due and owing.

No determination of tax due and owing may be issued more than four years after the end of the calendar year for which the return for the applicable period was filed or for the calendar year in which the return for the applicable period was due, whichever occurs later.

If any tax return is not filed or if during any four year period for which a notice of tax determination or assessment may be issued by the Village, and the tax paid was less than 75% of the tax due, the statute of limitations shall be six years after the end of the calendar year in which return for the applicable period was due or after the end of the calendar year in which the return for the applicable period was filed, whichever occurs later.

No statute of limitations shall apply if a fraudulent tax return was filed by the taxpayer.

§ 29-69 Voluntary Disclosure.

[Ord. 2000-29, 12-4-2000, § 1]

For any locally imposed and administered tax for which a taxpayer has not received a written notice of an audit, investigation, or assessment from the local tax administrator, a taxpayer is entitled to file an application with the local tax administrator for a voluntary disclosure of the tax due. A taxpayer filing a voluntary disclosure application must agree to pay the amount of tax due, along with interest of 1% per month, for all periods prior to the filing of the application but not more than four years before the date of filing the application. A taxpayer filing a valid voluntary disclosure application may not be liable for any additional tax, interest, or penalty for any period before the date the application was filed. However, if the taxpayer incorrectly determined and underpaid the amount of tax due, the taxpayer is liable for the underpaid tax along with applicable interest on the underpaid tax, unless the underpayment was the result of fraud on the part of the taxpayer, in which case the application shall be deemed invalid and void.

The payment of tax and interest must be made by no later than 90 days after the filing of the voluntary disclosure application or the date agreed to by the local tax administrator. However, any additional amounts owed as a result of an underpayment of tax and interest previously paid under this section must be paid within 90 days after a final determination and the exhaustion of all appeals of the additional amount owed or the date agreed to by the local tax administrator, whichever is longer.

§ 29-70 Publication of Tax Ordinances.

[Ord. 2000-29, 12-4-2000, § 1]

Any locally administered tax ordinance shall be published via normal or standard publishing requirements. The posting of a tax ordinance on the internet shall satisfy the publication requirements. Copies of all tax ordinances shall be made available to the public upon request at the Village Clerk's office.

§ 29-71 Internal Review Procedures for Liens.

[Ord. 2000-29, 12-4-2000, § 1]

The local tax administrator shall establish an internal review procedure regarding any liens filed against any taxpayers for unpaid taxes. Upon a determination by the local tax administrator that the lien is valid, the lien shall remain in full force and effect. If the lien is determined to be improper, the local tax administrator shall:

Remove the lien at the Village's expense;

Correct the taxpayer's credit record; and