Wage Report to IL Dept of Employment Security

[Taxizen]

The department charged $460.00 on zero wage report (UI 3/40) each for three qurarters for late filing penalty.

Is it a new law from IDES recently? I don't know how to protest it.

Did anyone have the same experience? Any input would be appreciated.

[TaxmannEA]

This sounds like something that I dealt with several years ago. I had a client that had filed zero wage reports via the telephone. IDES then issued notices for about $360 per quarter plus penalty and interest as they claimed that he hadn't filed a report for those quarters. When I informed them that he had no wages paid , they wanted to see a copy or the form that had been filed for the affected quarters. Of course there were none as we had used the tele-file system. After 2+ years of correspondence and a call to my state representative, we finally got it straightened out.

You need to examine the notice and see what specifically they are charging for. Then take a tranquilizer and contact them. This agency is about the most frustrating group that I deal with. You can send them a copy of the filed wage report and they will reply that the one that you filed said something else. If it gets to the point where you need to have a conference, you will need to go to Chicago to talk to them. I hope that you have better luck. Just document and be persistant.

[ILLMAS]

The department charged $460.00 on zero wage report (UI 3/40) each for three qurarters for late filing penalty.

Is it a new law from IDES recently? I don't know how to protest it.

Did anyone have the same experience? Any input would be appreciated.

Yes, probably what happen is the client didn't file -0- returns on a timely basis, so IDES uses the last filed reported wage report and uses it as a basis to charge your client, to fix this, just submit -0- returns and you should be okay. IDES will adjust their records accordingly.

MAS

[Jack from Ohio]

Ohio does the same thing for sales tax. If not filed timely they "create" sales figures usually in the 5 digit range then assess sales tax.

[Taxizen]

Yes, probably what happen is the client didn't file -0- returns on a timely basis, so IDES uses the last filed reported wage report and uses it as a basis to charge your client, to fix this, just submit -0- returns and you should be okay. IDES will adjust their records accordingly.

MAS

You are right. But the agent insisted that the taxpayer should pay the penalty since it was too late to file them and those estimated taxes were sent to collection agency. Actually those zero wage returns were filed recently. Is this penalty valid?

[ILLMAS]

No, talk to the collection agency and fax them the -0- returns, this should solve the problem.

[jainen]

>>talk to the collection agency and fax them the -0- returns, this should solve the problem<<

Apparently the final assessment of penalty was made before the returns were filed. You will have to go through whatever procedures the state has for abating penalties. It may indeed be too late, at least without researching state rulings. In any case, according to the instructions to Form UI 3/40, there is a minimum penalty for late filing regardless of wages paid.

[Taxizen]

No, talk to the collection agency and fax them the -0- returns, this should solve the problem.

The agent from IDES gave me the wrong info at first by instructing the taxpayer pay the penalty. When I called IDES today, the agent said he couldn't remove it since the collection department holds it. Probably I can remove it by calling the collection dept.

Thanks.