Where is the Illinois Department of Revenue Taxpayer Ombudsman hiding? Our letter to Illinois Governor Bruce Rauner

Bruce Rauner, Governor

Office of the Governor

207 State House

Springfield, IL 62706

Dear Governor Rauner,

In 2014 CEO.net ranked Illinois as one of the three worst states to do business in.  Here is one comment from CEO.net, “Illinois is rated in the worst category; their taxing scheme is deleterious (harmful) toward small business.The Illinois Dept of Revenue seems most adversarial with respect to small business support and promotion.”

As a Springfield based accountant for very small business I can tell you that things have gone from bad to worse at the Department.

Here are four examples:

A few weeks ago a client stopped by our office just in tears.  Her deceased husband’s business had been turned over to an attorney for collection of a past due balance tax account by the Illinois Department of Revenue.  Does she have to pay the bill?  He died two years ago.  The Department is aware of the death. We attached a death certificate to a previous notice. Why didn’t the Department file a claim against the taxpayer’s estate?  Why didn’t someone associate the dead taxpayer to the accountant forwarded to the attorney for collection.

A client who was a victim of identity fraud, whose social security number was used to obtain a sales tax number in the 1980’s, had her refund of $544.00 applied to a 1989 sales tax liability that she doesn’t owe, never incurred and is not liable for. Ironically the notice issued by the Department directing the client to call the “phone number below for the location your overpayment was applied”…..has no telephone number.  By the way when we contacted the Department, the obviously burdened and frustrated employee, recommended that the only way to clear up the matter was to have our State Representative intervene.  Otherwise it would take at least four to six months to review our inquiry.

A client made a mistake in reporting his payroll tax wages and liabilities.  Our office prepared the necessary amended payroll forms and filed them with both the Internal Revenue Service and the Illinois Department of Revenue.  No problems with the Internal Revenue Service.  The returns were accepted as filed. Not so with the Illinois Department of Revenue.  The Department rejected our amended returns based on our failure to include corrected W-2 forms.  Of course we did include the forms.  No explanation of what happened to them after they reached the Department for processing.

A single parent of two children just had his bank account levied by the Illinois Department of Revenue in the amount of $200.00 to meet his past due liability. I can understand that the state is knee deep in serious financial difficulties, and should collect every dollar owed. But $200.00 is not going to make much of a difference in things in the long run.  I can assure you that the $200.00 makes all the difference to this struggling taxpayer.  Common sense should prevail in all enforced collection issues.  It appears that the chase for tax dollars is clouding the Department’s judgement. Oh and this just in.  I spoke with a client this morning who told me that the Illinois Department of Revenue has levied his bank account for $38.00.  In this case the taxpayer does not owe the State any money.  We are bogged down with the inability of the Department to process any type of amended return or claim for refund efficiently and accurately.   

We can do better.

I read with interest your “Cutting the Red Tape” initiative. Good start on what may be Mission Impossible in the State of Illinois.  Still solutions to the day to day problems such the ones I listed above,  should not be the sole responsibility of our State Representative to solve. No one is acting as an ombudsmen at the Illinois Department of Revenue to help taxpayers such as the Taxpayer Advocate Service does with the Internal Revenue Service.

Ironically the Department regulations make reference to a “Taxpayer Ombudsman.”  I have quoted below from Title 86, Section 205.20 Illinois Department of Revenue Regulations.

Department Responsibilities

The Department of Revenue shall have the following powers and duties to protect the rights of

Taxpayers:

1. To furnish each taxpayer with a written statement of rights whenever such taxpayer

receives a protestable notice, a bill, a claim denial or reduction regarding any tax. Such

statement shall explain the rights of such person and the obligations of the Department

during the audit, appeals, refund and collections processes. All such written taxpayer

contact shall include the phone number of the Taxpayer Ombudsman.

(Section 4 of the Act).

Restoring the office of “Taxpayer Ombudsman” is a good start.  

Thank you for your prompt response.

Donald C. Fuener E.A.

President

Cc:  Sara Wojcicki Jimenez