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Illinois Tax Lien

On Behalf of | Apr 10, 2024 | Tax Controversies

If the liable taxpayer, after Notice and Demand for Payment, neglects or refuses to pay, then the balance due (tax, penalties, interest, costs) shall be a Lien, in favor of the State of Illinois, and shall attach to all property and rights to property, belonging to the taxpayer, whether real or personal.  Unless another date is specifically fixed by law, the Lien shall arise at the time of assessment and shall continue until the amount assessed is satisfied or becomes unenforceable due to a lapse of time.

The Lien, created by assessment, shall terminate unless a Notice of Lien (“NOL”) is filed, within three (3) years, from the date all proceedings in Court, for the review of the assessment, have terminated or expired.  The Lien, created from the filing of a tax return without payment, shall terminate unless a NOL is filed, within three (3) years from the filing date, of the tax return.

The time limitation period, for filing the NOL, shall not run:  (i) during any period of time in which the order of any Court has the effect of enjoining or restraining the filing the NOL; or (ii) during the term of a repayment plan, between the taxpayer and the Illinois Department of Revenue, as long as the taxpayer remains in compliance with the terms of the repayment plan.