Full Text of SB1395 95th General Assembly
SB1395 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB1395
Introduced 2/9/2007, by Sen. Don Harmon SYNOPSIS AS INTRODUCED: |
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35 ILCS 5/704 |
from Ch. 120, par. 7-704 |
35 ILCS 5/704A new |
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Amends the Illinois Income Tax Act. Sets forth procedures for employers who are required to deduct and withhold tax after January 1, 2008. Sets forth dates by which returns and payments must be made to the Department of Revenue for both quarterly and annual filings. Sets forth the regulatory authority of the Department concerning the returns and payments. Effective immediately.
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A BILL FOR
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SB1395 |
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LRB095 07487 BDD 27631 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Income Tax Act is amended by | 5 |
| changing Section 704 and by adding Section 704A as follows:
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| (35 ILCS 5/704) (from Ch. 120, par. 7-704)
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| Sec. 704. Employer's Return and Payment of Tax Withheld.
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| (a) In general, every employer who deducts and withholds or | 9 |
| is required
to deduct and withhold tax under this Act prior to | 10 |
| January 1, 2008, shall make such payments and
returns as | 11 |
| hereinafter provided in this Section .
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| (b) Quarter Monthly Payments: Returns. Every employer who | 13 |
| deducts
and withholds or is required to deduct and withhold tax | 14 |
| under this Act
shall, on or before the third banking day | 15 |
| following the close of a quarter
monthly period, pay to the | 16 |
| Department or to a depositary designated by the
Department, | 17 |
| pursuant to regulations prescribed by the Department, the taxes
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| so required to be deducted and withheld, whenever the aggregate | 19 |
| amount
withheld by such employer (together with amounts | 20 |
| previously withheld and
not paid to the Department) exceeds | 21 |
| $1,000. For purposes of this Section,
Saturdays, Sundays, legal | 22 |
| holidays and local bank holidays are not banking
days. A | 23 |
| quarter monthly period, for purposes of this subsection, ends |
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LRB095 07487 BDD 27631 b |
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| on
the 7th, 15th, 22nd and last day of each calendar month. | 2 |
| Every such
employer shall for each calendar quarter, on or | 3 |
| before the last day of the
first month following the close of | 4 |
| such quarter, and for the calendar year,
on or before January | 5 |
| 31 of the succeeding calendar year, make a return with
respect | 6 |
| to such taxes in such form and manner as the Department may by
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| regulations prescribe, and pay to the Department or to a | 8 |
| depositary
designated by the Department all withheld taxes not | 9 |
| previously paid to
the Department.
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| (c) Monthly Payments: Returns. Every employer required to | 11 |
| deduct and
withhold tax under this Act shall, on or before the | 12 |
| 15th day of the second
and third months of each calendar | 13 |
| quarter, and on or before the last day of
the month following | 14 |
| the last month of each such quarter, pay to the
Department or | 15 |
| to a depositary designated by the Department, pursuant to
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| regulations prescribed by the Department, the taxes so required | 17 |
| to be
deducted and withheld, whenever the aggregate amount | 18 |
| withheld by such employer
(together with amounts previously | 19 |
| withheld and not paid to the
Department) exceeds $500 but does | 20 |
| not exceed $1,000. Every such employer
shall for each calendar | 21 |
| quarter, on or before the last day of the first
month following | 22 |
| the close of such quarter, and for the calendar year, on or
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| before January 31 of the succeeding calendar year, make a | 24 |
| return with
respect to such taxes in such form and manner as | 25 |
| the Department may by
regulations prescribe, and pay to the | 26 |
| Department or to a depositary
designated by the Department all |
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| withheld taxes not previously paid to
the Department.
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| (d) Annual Payments: Returns. Where the amount of | 3 |
| compensation paid
by an employer is not sufficient to require | 4 |
| the withholding of tax from the
compensation of any of its | 5 |
| employees (or where the aggregate amount
withheld is less than | 6 |
| $500), the Department may by regulation permit such
employer to | 7 |
| file only an annual return and to pay the taxes required to be
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| deducted and withheld at the time of filing such annual return.
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| (e) Annual Return. The Department may, as it deems | 10 |
| appropriate, prescribe
by regulation for the filing of annual | 11 |
| returns in lieu of quarterly returns
described in subsections | 12 |
| (b) and (c).
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| (e-5) Annual Return and Payment. On and after January 1, | 14 |
| 1998,
notwithstanding subsections (b) through (d) of this | 15 |
| Section, every employer who
deducts and withholds or is | 16 |
| required to deduct and withhold tax from a person
engaged in | 17 |
| domestic service employment, as that term is defined in Section | 18 |
| 3510
of the Internal Revenue Code, may comply with the | 19 |
| requirements of this Section
by filing an annual return and | 20 |
| paying the taxes required to be deducted and
withheld on or | 21 |
| before the 15th day of the fourth month following the close of
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| the employer's taxable year. The annual return may be submitted | 23 |
| with the
employer's individual income tax return.
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| (f) Magnetic Media Filing. Forms W-2 that, pursuant to
the | 25 |
| Internal Revenue Code and regulations promulgated thereunder, | 26 |
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required to be submitted to the Internal Revenue Service on |
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| magnetic media,
must also be submitted to the Department on | 2 |
| magnetic media for Illinois
purposes, if required by the | 3 |
| Department.
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| (Source: P.A. 90-374, eff. 8-14-97; 90-562, eff. 12-16-97.)
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| (35 ILCS 5/704A new) | 6 |
| Sec. 704A. Employer's return and payment of tax withheld. | 7 |
| (a) In general, every employer who deducts and withholds or | 8 |
| is required to deduct and withhold tax under this Act on or | 9 |
| after January 1, 2008 shall make those payments and returns as | 10 |
| provided in this Section. | 11 |
| (b) Returns. Every employer shall, in the form and manner | 12 |
| required by the Department, make returns with respect to taxes | 13 |
| withheld or required to be withheld under this Article 7: | 14 |
| (1) for taxes withheld or required to be withheld | 15 |
| during each calendar quarter beginning on or after January | 16 |
| 1, 2008, on or before the 15th day of the first month | 17 |
| following the close of that quarter; and | 18 |
| (2) for taxes withheld or required to be withheld | 19 |
| during calendar year 2008 and each subsequent calendar | 20 |
| year, on or before January 31 of the following year. | 21 |
| (c) Payments. With respect to amounts withheld or required | 22 |
| to be withheld on or after January 1, 2008: | 23 |
| (1) For each calendar year, each employer who withheld | 24 |
| or was required to withhold more than $3,000 during any of | 25 |
| the first, second, or third quarters of the immediately |
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| preceding calendar year or of the fourth quarter of the | 2 |
| calendar year immediately preceding that year, payment | 3 |
| must be made: | 4 |
| (A) on or before each Friday of the calendar year, | 5 |
| for taxes withheld or required to be withheld on the | 6 |
| immediately preceding Saturday, Sunday, Monday, or | 7 |
| Tuesday; | 8 |
| (B) on or before each Wednesday of the calendar | 9 |
| year, for taxes withheld or required to be withheld on | 10 |
| the immediately preceding Wednesday, Thursday, or | 11 |
| Friday. | 12 |
| (2) Each employer, other than an employer described in | 13 |
| paragraph (1) of this subsection, shall pay to the | 14 |
| Department, on or before the 15th day of each month the | 15 |
| taxes withheld or required to be withheld during the | 16 |
| immediately preceding month. | 17 |
| (3) Each employer shall pay to the Department, on or | 18 |
| before the due date for each return required to be filed | 19 |
| under this Section, any tax withheld or required to be | 20 |
| withheld during the period for which the return is due and | 21 |
| not previously paid to the Department. | 22 |
| (d) Regulatory authority. The Department may, by rule: | 23 |
| (1) Permit employers, as it deems appropriate in lieu | 24 |
| of the requirements of subsections (b) and (c), to file | 25 |
| annual returns due on or before January 31 each year for | 26 |
| taxes withheld or required to be withheld during the |
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| preceding calendar year and to pay the taxes required to be | 2 |
| shown on each such return no later than the due date for | 3 |
| such return. | 4 |
| (2) Provide that any payment required to be made under | 5 |
| subsection (c)(1) is deemed to be timely to the extent paid | 6 |
| by electronic funds transfer on or before the due date for | 7 |
| deposit of federal income taxes withheld from, or federal | 8 |
| employment taxes due with respect to, the wages from which | 9 |
| the Illinois taxes were withheld. | 10 |
| (3) Designate one or more depositories to which payment | 11 |
| of taxes required to be withheld under this Article 7 must | 12 |
| be paid by some or all employers. | 13 |
| (e) Annual return and payment. Every employer who deducts | 14 |
| and withholds or is required to deduct and withhold tax from a | 15 |
| person engaged in domestic service employment, as that term is | 16 |
| defined in Section 3510 of the Internal Revenue Code, may | 17 |
| comply with the requirements of this Section with respect to | 18 |
| such employees by filing an annual return and paying the taxes | 19 |
| required to be deducted and withheld on or before the 15th day | 20 |
| of the fourth month following the close of the employer's | 21 |
| taxable year. The Department may allow the employer's return to | 22 |
| be submitted with the employer's individual income tax return | 23 |
| or to be submitted with a return due from the employer under | 24 |
| Section 1400.2 of the Unemployment Insurance Act. | 25 |
| (f) Magnetic media and electronic filing. Any W-2 Form | 26 |
| that, under the Internal Revenue Code and regulations |
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| promulgated thereunder, is required to be submitted to the | 2 |
| Internal Revenue Service on magnetic media or electronically | 3 |
| must also be submitted to the Department on magnetic media or | 4 |
| electronically for Illinois purposes, if required by the | 5 |
| Department.
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| Section 99. Effective date. This Act takes effect upon | 7 |
| becoming law.
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