Not paying or filing your Illinois state taxes can cause consequences related to your Illinois professional license. This means that your license can be suspended, revoked, or not renewed related to allegations of unpaid Illinois income tax or unfiled Illinois income tax returns.
The Illinois Department of Revenue (IDOR) will first try and resolve the outstanding debt by sending one or more written notices for payment. If those notices go unanswered, the IDOR will refer the matter to the Illinois Department of Financial and Professional Regulation (IDFPR), which may or may not send letters or emails thereafter regarding the consequences to your license. If the demand for payment goes with no communication or resolution, the IDFPR will file an Order for the Suspension of your license.
If you receive a Suspension Order from the IDFPR for unpaid taxes, DO NOT IGNORE IT.
The Suspension Order will be stayed for 60 days from the date it was entered. During those 60 days, you must either (1) file a Request for Hearing with the IDFPR, or (2) resolve all outstanding issues with the IDOR by filing any unfiled years’ returns and paying all outstanding tax debt or applying for and entering a payment plan. The IDOR does not require full payment of the tax to avoid suspensions. There are typically payment options available and once those payment plans are put in place, the IDPR will notify the IDFPR to lift the suspension hold on your license. If you need additional time to resolve the outstanding issues, you must file a Request for Hearing or your license will be suspended effective 60 days following the date of the Suspension Order, regardless of your efforts to resolve the matter with the IDOR at that point. You should retain an attorney to ensure the Request for Hearing is properly filed to give you the time you need to resolve your outstanding tax matters.
Please do not hesitate to contact us for assistance. We have the experience with the IDFPR and IDOR in these matters to give you confidence you can continue to practice uninterrupted.