Full Text of HB5833 96th General Assembly
HB5833eng 96TH GENERAL ASSEMBLY
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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 Department of Revenue Law of the
Civil | 5 |
| Administrative Code of Illinois is amended by changing Section | 6 |
| 2505-210 as follows:
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| (20 ILCS 2505/2505-210) (was 20 ILCS 2505/39c-1)
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| Sec. 2505-210. Electronic funds transfer.
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| (a) The Department may provide means by which
persons | 10 |
| having a tax liability under any Act administered by the | 11 |
| Department
may use electronic funds transfer to pay the tax | 12 |
| liability.
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| (b) Mandatory payment by electronic funds transfer. | 14 |
| Beginning on October 1, 2002, and through September 30, 2010, a | 15 |
| taxpayer who has an annual tax
liability of $200,000 or more | 16 |
| shall make all payments of that tax to the
Department by | 17 |
| electronic funds transfer. Beginning October 1, 2010, a | 18 |
| taxpayer (other than an individual taxpayer) who has an annual | 19 |
| tax liability of $20,000 or more and an individual taxpayer who | 20 |
| has an annual tax liability of $200,000 or more shall make all | 21 |
| payments of that tax to the Department by electronic funds | 22 |
| transfer. Before August 1 of each year,
beginning in 2002, the | 23 |
| Department shall notify all taxpayers required to make
payments |
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| by electronic funds transfer. All taxpayers required to make | 2 |
| payments
by electronic funds transfer shall make those payments | 3 |
| for a minimum of one
year beginning on October 1. For purposes | 4 |
| of this subsection (b), the term
"annual tax liability" means, | 5 |
| except as provided in subsections (c) and (d) of
this Section, | 6 |
| the sum of the taxpayer's liabilities under a tax Act
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| administered by the Department,
except the Motor Fuel Tax Law | 8 |
| and the
Environmental Impact Fee Law,
for the immediately | 9 |
| preceding calendar year.
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| (c) For purposes of subsection (b), the term "annual tax | 11 |
| liability" means,
for a taxpayer that incurs a tax liability | 12 |
| under the Retailers' Occupation Tax
Act, Service Occupation Tax | 13 |
| Act, Use Tax Act, Service Use Tax Act, or any other
State or | 14 |
| local occupation or use tax law that is administered by the
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| Department, the sum of the taxpayer's liabilities under the | 16 |
| Retailers'
Occupation Tax Act, Service Occupation Tax Act, Use | 17 |
| Tax Act, Service Use Tax
Act, and all other State and local | 18 |
| occupation and use tax laws administered by
the Department for | 19 |
| the immediately preceding calendar year.
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| (d) For purposes of subsection (b), the term "annual tax | 21 |
| liability" means,
for a taxpayer that incurs an Illinois income | 22 |
| tax liability, the greater of:
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| (1) the amount of the taxpayer's tax liability under | 24 |
| Article 7 of the
Illinois Income Tax Act for the | 25 |
| immediately preceding calendar year; or
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| (2) the taxpayer's estimated tax payment obligation |
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| under Article 8 of the
Illinois Income Tax Act for the | 2 |
| immediately preceding calendar year.
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| (e) The Department shall adopt such rules as are necessary | 4 |
| to effectuate a
program of electronic funds transfer and the | 5 |
| requirements of this Section.
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| (Source: P.A. 91-239, eff. 1-1-00; 92-492, eff. 1-1-02.)
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| Section 10. The Illinois Income Tax Act is amended by | 8 |
| changing Section 704A as follows: | 9 |
| (35 ILCS 5/704A) | 10 |
| Sec. 704A. Employer's return and payment of tax withheld. | 11 |
| (a) In general, every employer who deducts and withholds or | 12 |
| is required to deduct and withhold tax under this Act on or | 13 |
| after January 1, 2008 shall make those payments and returns as | 14 |
| provided in this Section. | 15 |
| (b) Returns. Every employer shall, in the form and manner | 16 |
| required by the Department, make returns with respect to taxes | 17 |
| withheld or required to be withheld under this Article 7 (i) | 18 |
| for each quarter beginning on or after January 1, 2008, and | 19 |
| beginning before January 1, 2011, on or before the last day of | 20 |
| the first month following the close of that quarter and (ii) | 21 |
| for each calendar year beginning on or after January 1, 2011, | 22 |
| on or before January 31 of the following year . | 23 |
| (c) Payments. With respect to amounts withheld or required | 24 |
| to be withheld on or after January 1, 2008: |
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| (1) Semi-weekly payments. For each calendar year, each | 2 |
| employer who withheld or was required to withhold more than | 3 |
| $12,000 during the one-year period ending on June 30 of the | 4 |
| immediately preceding calendar year, payment must be made: | 5 |
| (A) on or before each Friday of the calendar year, | 6 |
| for taxes withheld or required to be withheld on the | 7 |
| immediately preceding Saturday, Sunday, Monday, or | 8 |
| Tuesday; | 9 |
| (B) on or before each Wednesday of the calendar | 10 |
| year, for taxes withheld or required to be withheld on | 11 |
| the immediately preceding Wednesday, Thursday, or | 12 |
| Friday. | 13 |
| (2) Semi-weekly payments. Any employer who withholds | 14 |
| or is required to withhold more than $12,000 in any quarter | 15 |
| of a calendar year is required to make payments on the | 16 |
| dates set forth under item (1) of this subsection (c) for | 17 |
| each remaining quarter of that calendar year and for the | 18 |
| subsequent calendar year.
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| (3) Monthly payments. Each employer, other than an | 20 |
| employer described in items (1) or (2) of this subsection, | 21 |
| shall pay to the Department, on or before the 15th day of | 22 |
| each month the taxes withheld or required to be withheld | 23 |
| during the immediately preceding month. | 24 |
| (4) Payments with returns. Each employer shall pay to | 25 |
| the Department, on or before the due date for each return | 26 |
| required to be filed under this Section, any tax withheld |
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| or required to be withheld during the period for which the | 2 |
| return is due and not previously paid to the Department. | 3 |
| (d) Regulatory authority. The Department may, by rule: | 4 |
| (1) If the aggregate amounts required to be withheld | 5 |
| under this Article 7 (other than amounts required to be | 6 |
| withheld under Section 709.5) do not exceed $1,000 for the | 7 |
| calendar year, permit employers, in lieu of the | 8 |
| requirements of subsections (b) and (c), to file annual | 9 |
| returns due on or before January 31 of the following year | 10 |
| for taxes withheld or required to be withheld during that | 11 |
| calendar year and to pay the taxes required to be shown on | 12 |
| each such return no later than the due date for such | 13 |
| return. | 14 |
| (2) Provide that any payment required to be made under | 15 |
| subsection (c)(1) or (c)(2) is deemed to be timely to the | 16 |
| extent paid by electronic funds transfer on or before the | 17 |
| due date for deposit of federal income taxes withheld from, | 18 |
| or federal employment taxes due with respect to, the wages | 19 |
| from which the Illinois taxes were withheld. | 20 |
| (3) Designate one or more depositories to which payment | 21 |
| of taxes required to be withheld under this Article 7 must | 22 |
| be paid by some or all employers. | 23 |
| (4) Increase the threshold dollar amounts at which | 24 |
| employers are required to make semi-weekly payments under | 25 |
| subsection (c)(1) or (c)(2). | 26 |
| (e) Annual return and payment. Every employer who deducts |
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| and withholds or is required to deduct and withhold tax from a | 2 |
| person engaged in domestic service employment, as that term is | 3 |
| defined in Section 3510 of the Internal Revenue Code, may | 4 |
| comply with the requirements of this Section with respect to | 5 |
| such employees by filing an annual return and paying the taxes | 6 |
| required to be deducted and withheld on or before the 15th day | 7 |
| of the fourth month following the close of the employer's | 8 |
| taxable year. The Department may allow the employer's return to | 9 |
| be submitted with the employer's individual income tax return | 10 |
| or to be submitted with a return due from the employer under | 11 |
| Section 1400.2 of the Unemployment Insurance Act. | 12 |
| (f) Magnetic media and electronic filing. Any W-2 Form | 13 |
| that, under the Internal Revenue Code and regulations | 14 |
| promulgated thereunder, is required to be submitted to the | 15 |
| Internal Revenue Service on magnetic media or electronically | 16 |
| must also be submitted to the Department on magnetic media or | 17 |
| electronically for Illinois purposes, if required by the | 18 |
| Department. | 19 |
| (g) For amounts deducted or withheld after December 31, | 20 |
| 2009, a taxpayer who makes an election under Section 5-15(f) of | 21 |
| the Economic Development for a Growing Economy Act for a | 22 |
| taxable year shall be allowed a credit against payments due | 23 |
| under this Section for amounts withheld during the first | 24 |
| calendar year beginning after the end of that taxable year | 25 |
| equal to the amount of the credit awarded to the taxpayer by | 26 |
| the Department of Commerce and Economic Opportunity under the |
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| Economic Development for a Growing Economy Act for the taxable | 2 |
| year. The credit may not reduce the taxpayer's obligation for | 3 |
| any payment due under this Section to less than zero. If the | 4 |
| amount of the credit exceeds the total payments due under this | 5 |
| Section with respect to amounts withheld during the calendar | 6 |
| year, the excess may be carried forward and applied against the | 7 |
| taxpayer's liability under this Section in the 5 succeeding | 8 |
| calendar years. The credit shall be applied to the earliest | 9 |
| year for which there is a tax liability. If there are credits | 10 |
| from more than one taxable year that are available to offset a | 11 |
| liability, the earlier credit shall be applied first. This | 12 |
| Section is exempt from the provisions of Section 250 of this | 13 |
| Act. | 14 |
| (Source: P.A. 95-8, eff. 6-29-07; 95-707, eff. 1-11-08; 96-834, | 15 |
| eff. 12-14-09.)
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| Section 99. Effective date. This Act takes effect upon | 17 |
| becoming law.
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