IL SB1349

Amends the Uniform Penalty and Interest Act to modify late payment penalties under subsection (b-20) of Section 3-3, reducing the penalty rate from 20% to 15% for amounts paid after the Department initiates an audit or investigation.

Provides that the 15% penalty shall be abated if, prior to audit initiation, the taxpayer paid at least 95% of the total tax liability for the filing period, including any additional liability discovered during the audit or investigation.

Specifies that changes to penalty provisions do not apply to determinations of penalty amounts assessed prior to the effective date of this amendatory act.

Clarifies in Section 3-9 that penalty provisions apply except as otherwise provided in subsection (b-20) of Section 3-3, establishing the relationship between general penalty rules and the specific audit-related penalty modifications.

Takes effect January 1, 2020.