Welcome to The Tax Voluntary Disclosure Program |
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Pursuant to Section 3-4-265 of the Municipal Code of Chicago, Business Taxpayers Assistance Ordinance, taxpayers
and tax collectors may disclose any taxes, fees or surcharges due the City, provided certain minimal qualifications
are met. The program is designed to encourage self-compliance by allowing taxpayers and tax collectors an opportunity
to resolve undisclosed tax and certain non-tax debts without penalty.
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Taxpayer & Tax Collector Duties |
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Under this program a taxpayer or tax collector must calculate and remit the amounts due for any of the tax or non-tax
debts that is to be paid or remitted to the Department of Revenue. The discloser must determine the amount it owes for
the four-year period immediately prior to the date on which it applies to participate in the program. The discloser must
remit, or enter a payment agreement to pay, the full amount of tax and interest it computes to be due. The discloser must
also register with the Department and pay all previous deficiencies and/or delinquencies that may have existed before its
disclosure. The discloser waives its right to an administrative hearing and to claims for refund or credit, and agrees not
to initiate or join any lawsuits for the payments made under the program.
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Department Obligations & Duties |
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In exchange for voluntarily disclosing and paying or remitting the tax and non-tax debts, the Department agrees to waive
all penalties that would otherwise apply. The Department also agrees not to assess the discloser for periods prior to the
disclosed four-year period for the taxes disclosed. The Department further agrees that if it subsequently audits the discloser
for the periods, and less than a 10% variation is determined in what the discloser remitted, the discloser will still receive
the advantages of its voluntary disclosure. However, if said variation exceeds 10%, the Department may revoke the terms and
conditions of the agreement, assess all applicable penalties, and extend the audit to include all periods open under the statute
of limitations.
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Qualified Discloser |
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To qualify for this program, a discloser must not be under audit or investigation. If a discloser has received a written notice
relating to an audit or investigation for a tax or taxes, it is prohibited from participating in the program for those taxes.
The discloser must also warrant that the taxes being disclosed are not the subject of an audit or investigation by the Department
involving a person or entity involved in a prior bulk sale with the discloser, and also that it has not received a Delinquency Notice
with respect to the disclosed taxes. The discloser cannot disclose for the tax and period for which it has been issued a Deficiency Notice
by the City, but must pay such amounts as part of its disclosure for other periods or taxes.
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Disclosure Process |
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If a taxpayer or tax collector is interested in applying under this program, either contact Ms. Cynthia Rivera of the
Chicago Department of Revenue at (312) 747-1327 to obtain a paper application or submit the application online. To submit an
online application, click on the Continue button below and fill in all required information on the application page that follows.
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