It is intended for the entire settlement process--from start to finish--to be completed within 60 days. The initial step is to file the Fast Track Resolution Program Application (Form IDOR-7-FTR1) by e-mail within 20 days of receiving the Department’s Notice of Eligible Tax Liability. After the FTR application is approved for acceptance into the program,³ and within 15 days of receipt of the application, the FTR facilitator will issue an approval letter scheduling the FTR conference. The FTR conference is to be held within 60 days of receipt of the taxpayer’s FTR application. The goal is to resolve the unagreed liabilities on the day of the conference. If a resolution is not reached during the FTR process, the taxpayer may thereafter avail itself of its normal statutory appeal rights.

A few key takeaways about the program: (1) FTR review is based upon the established audit record, no new documents will be considered at the conference; (2) a person with settlement authority (i.e., either taxpayer or its authorized designee) must be present at the conference; (3) the Department will consider hazards of litigation (not something the Department normally considers during the audit process); (4) the FTR facilitator’s recommendation is subject to the General Counsel’s approval; (5) payment plans (but not offers based on ability to pay) can be considered by the Department as part of the FTR resolution; and (6) taxpayers can withdraw from the FTR process at any time while retaining all appeal rights.

The Expanded Program is an excellent opportunity for taxpayers to quickly resolve cases while still within the Audit Bureau. However, given the speed of the process and the program’s reliance on the established audit record, it is generally advisable for taxpayers with sizeable tax liabilities or complex issues to engage the services of a tax professional to assist during the audit (to help build the case for FTR resolution) and during the FTR process (including the preparation of the FTR application and the evaluation of any proposed resolution).

Additional information regarding the Department’s FTR program can be found on Illinois.gov.

1. The Department has not defined the term “miscellaneous taxes.” However, we anticipate the term likely includes telecommunications excise tax, cannabis tax, parking tax, tobacco products tax, hotel taxes and other state excise taxes, except for Motor Fuel Use Tax.
2. The Pilot Program and the Expanded Program do not include income tax, and we understand the Department has no present plans to include income tax audits within the FTR program.
3. FTR applications may be denied if (i) not timely, (ii) the taxpayer did not cooperate during the audit process, such as by delaying the audit or withholding requested documents, (iii) the taxpayer is under criminal investigation, or (iv) the Department has reserved the taxpayer’s legal issue for litigation.

Client Alert 2020-595