On March 6, 2026, Jeffrey Somers filed a Petition at the Illinois Independent Tax Tribunal challenging Illinois income tax assessments for tax years 2018 and 2019.
The petitioner, Jeffrey Somers, alleges that he was a California resident who performed all services remotely from California and had no physical presence in Illinois during the years at issue. He contends that his wages were incorrectly reported as Illinois-source income on Forms W-2 due to his employer’s Illinois headquarters, leading to an improper assessment by the Illinois Department of Revenue.
The Department issued Notices of Deficiency totaling approximately $53,000 in tax and interest across both years, based on information indicating Illinois-source income and the absence of filed Illinois returns.
The petition argues that, under Illinois law, nonresidents are taxable only on income sourced to Illinois, and compensation is sourced where services are performed. On that basis, the petitioner seeks full abatement of the assessments and a refund of allegedly withheld Illinois taxes.
In short, a California-based remote employee has formally challenged Illinois income tax assessments, arguing that wages earned entirely outside Illinois cannot be taxed by the state.
This case shows that remote and out-of-state workers should review their Forms W-2 and state withholdings carefully. Incorrect sourcing or withholding can trigger assessments or missed refund opportunities. Where wages are reported to the wrong state, it may be possible to correct the issue and pursue a refund.