Pending Legislation Would Require Corporations to Annually Disclose State Income Tax Liability

The Chicago Tribune reports that a proposal currently pending in the Illinois Senate would mandate publicly traded corporations subject to Illinois income taxes to publicly disclose their state income tax liability each year. Traditionally, corporations do not make such disclosures. However, in order to protect corporate information, the disclosures would not occur until two years after the end of the tax year in question.Corporations to Annually Disclose State Income Tax Liability

Business leaders and some Republican legislators immediately balked at the proposed legislation, stating that the measure would  further deter companies from continuing to do business in Illinois, as well as from bringing new business to Illinois. A spokesperson for the Illinois Chamber of Commerce also questioned the legislation in light of the traditional confidentiality of income tax returns.

In a state that continues to suffer from major financial problems, proponents of the bill see it as a way give state lawmakers more information in order to ultimately make the state tax code more equitable for all citizens, including corporations. Currently, a full two-thirds of corporate tax filers have no state tax liability, largely due to extensive tax breaks and incentive packages routinely given to corporations in Illinois and many states. As a result, state lawmakers are under increasing pressure to reform the current state tax structure.

If you are a business owner in the state of Illinois, or regularly do business with Illinois corporations, you need to be aware of pending legislation such as this, and how it would affect you and your business. Contact your Naperville tax and business lawyer today, and get up-to-date on the latest tax trends and changes in the state of Illinois.