The Illinois Department of Revenue will have increased authority over delinquent taxpayers who want to register new businesses thanks to legislation introduced and sponsored by State Representative Joe Sosnowski (R-Rockford) that was signed into law on Friday.
House Bill 2579 amends the Retailers’ Occupation Tax Act by allowing the Department of Revenue to deny the registration application of any business filed by an individual who is delinquent on their taxes.
“This new law will strengthen the state’s efforts to identify and collect outstanding tax liabilities,” said Sosnowski. “It will also help to prevent taxpayers with a history of non-compliance from opening or participating in a new business, which could result in further non-compliance and additional unpaid taxes.”
The need for the legislation was brought forward by officials from the Department of Revenue, which felt additional tools were needed to close loopholes in existing law. As the Republican Spokesperson on the Revenue & Finance Committee, Representative Sosnowski shepherded the bill to passage in the House of Representatives. It was carried in the State Senate by Senator Don DeWitte (R-St. Charles).
HB 2579 received unanimous approval in the Senate and House and will take effect on January 1, 2024.
Representative Sosnowski serves the 69th District which includes portions of Winnebago, Boone, and McHenry Counties.