Reed Smith Client Alerts

The Illinois Department of Revenue recently expanded its Fast Track Resolution Program to make it available in most sales and use tax audits, as well as certain audits involving other excise taxes. The expanded program provides a quick process for resolving audit issues outside the normal appeal process. However, to get the most benefit from the expanded program, taxpayers should work with a tax professional to evaluate issues and develop a sufficient record during the audit to support a favorable resolution.

Authors: David P. Dorner Paul G. Bogdanski Jeremy P. Gove

Over the past few years, the Illinois Department of Revenue (the “Department”) has provided taxpayers with several options to resolve unagreed audit liabilities without exercising their formal protest rights. One such option, the Department’s Audit Fast Track Resolution Pilot Program (the “Pilot Program”), was initiated by the Department in late 2018. Until recently, the Pilot Program has been limited to audits of “cash businesses” (e.g., taverns, restaurants and liquor stores). However, based on the Pilot Program’s success, the Department recently expanded the program.

Under the Expanded Audit Fast Track Resolution Program (the “Expanded Program”), Fast Track Resolutions (“FTR”) are now available in all sales and miscellaneous tax audits,1 except Motor Fuel Use Tax audits.2 The Expanded Program operates in the same manner as the Pilot Program, so taxpayers with unagreed audit liabilities will be offered the opportunity to try to settle their liabilities while the matter is still within the jurisdiction of the Audit Bureau.