Illinois ICB: a new administrative forum.

• Author: Packard, Pamela
• Position: Informal Conference Board - Tax dispute resolution body

Illinois created an Informal Conference Board (ICB) on April 2, 2001. The ICB replaced the Informal Conference Unit (ICU) discontinued on Aug. 1, 2000. Many taxpayers presently using the ICU can now use the ICB to resolve their cases. As a goodwill gesture, the ICB waived interest from Aug. 1, 2000-Jan. 31, 2002 for taxpayers that receive an ICB final action decision.

ICU

The ICU became operational in 1995. It gave taxpayers a forum to review proposed tax assessments prior to the issuance of a formal deficiency notice or refund denial. However, the ICU could not render "formal" written decisions, address "precedential" tax issues or propose or consider percentage or dollar settlement offers.

The ICU'S limits offered taxpayers little (if any) opportunity to resolve controversial audit issues at the ICU level. In reality, it was an internal audit "quality control" function, rather than a forum to dispute audit issues.

Many taxpayers voiced dissatisfaction with the ICU process, which had no formal procedural regulations. As a result, Illinois suspended the ICU program on Aug. 1, 2000, while it considered other administrative options.

ICB

On April 2, 2001, Illinois created the ICB to replace the ICU. It empowered the ICB to "resolve" disputes at the earliest opportunity possible in the administrative process through the liberal exercise of discretion (Ill. Adm. Code Section 215.100).

The ICB is a separate and distinct division of the Department of Revenue, and is not a unit or division of the Audit Bureau. It is currently staffed by:

1. Keith Staats, General Counsel-Legal Services;

2. Philip Howe, Chairman of the Board of Appeals; and

3. Mike Scaduto, Manager-Audit Bureau.

On Nov. 1, 2001, John Malach became the first ICB Administrator. To date, he has selected three ICB Conferees to be informal conference "reviewers" and they have been appointed. Like the ICU, taxpayers can request an informal review with the ICB by completing Form ICB-1. The taxpayer can represent himself at the review process or appoint either an attorney or a non-attorney representative designated on an executed Illinois power of attorney.

The ICB conducts reviews on the basis of a proposed deficiency notice, liability notice or a proposed claim notice. Taxpayers must file a request for an ICB conference within 60 days of a notice's mailing date.

Taxpayers must document their ICB review request (Form ICB-1, Step 4) with specific reasons for disagreeing with the proposed...