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Many local governments have been carrying a liability in their financial statements for overpayments of replacement taxes due to a calculation error by the State of Illinois in 2015-2016, as indications had been that this overpayment would be deducted from future distributions.  However, the Illinois Department of Revenue (IDOR) recently issued a notice that there will be no further attempts to recoup these overpayments.  For the local government, this means that any liability should be reversed and taken into income.  A copy of the letter from IDOR is available here.

Edward Tracy

As an audit shareholder and head of the firm’s governmental audit practice, Ed Tracy directs the supervision of audit engagements, the majority of which are in the government and non-profit sector. In addition to his role as an accountant, Ed especially enjoys serving as a sounding board for his clients, and helps them develop creative solutions for broader management and business issues.