Public Act No. 22-117 Summary

• Increases penalties for willful tax collection failures and fraudulent tax activity, including penalties equal to total tax evaded plus interest and penalties

• Establishes composite income tax return option for nonresident members of partnerships and S corporations, allowing the entity to pay tax on their behalf at the highest marginal rate

• Modifies tax assessment and refund procedures by allowing multiple assessments per period, replacing "petition for reassessment" with "written protest," and limiting refund interest to five million dollars per tax period

• Extends refund claim periods to six months after assessments become final for assessments under specific sections, and closes audited tax periods preventing additional refund claims except within six months of final audit results

• Modifies estate and gift tax thresholds to use the federal basic exclusion amount rather than a fixed dollar amount, effective October 1, 2022