Revenue & Finance Committee

Adopted in House Comm. on Mar 11, 2010

 

 


 

 


 
09600HB5833ham001LRB096 19186 HLH 38492 a

1
AMENDMENT TO HOUSE BILL 5833

2    AMENDMENT NO. ______. Amend House Bill 5833 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by changing Section
62505-210 as follows:
 
7    (20 ILCS 2505/2505-210)  (was 20 ILCS 2505/39c-1)
8    Sec. 2505-210. Electronic funds transfer.
9    (a) The Department may provide means by which persons
10having a tax liability under any Act administered by the
11Department may use electronic funds transfer to pay the tax
12liability.
13    (b) Mandatory payment by electronic funds transfer.
14Beginning on October 1, 2002, and through September 30, 2010, a
15taxpayer who has an annual tax liability of $200,000 or more
16shall make all payments of that tax to the Department by

 

 

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1electronic funds transfer. Beginning October 1, 2010, a
2taxpayer (other than an individual taxpayer) who has an annual
3tax liability of $20,000 or more and an individual taxpayer who
4has an annual tax liability of $200,000 or more shall make all
5payments of that tax to the Department by electronic funds
6transfer. Before August 1 of each year, beginning in 2002, the
7Department shall notify all taxpayers required to make payments
8by electronic funds transfer. All taxpayers required to make
9payments by electronic funds transfer shall make those payments
10for a minimum of one year beginning on October 1. For purposes
11of this subsection (b), the term "annual tax liability" means,
12except as provided in subsections (c) and (d) of this Section,
13the sum of the taxpayer's liabilities under a tax Act
14administered by the Department, except the Motor Fuel Tax Law
15and the Environmental Impact Fee Law, for the immediately
16preceding calendar year.
17    (c) For purposes of subsection (b), the term "annual tax
18liability" means, for a taxpayer that incurs a tax liability
19under the Retailers' Occupation Tax Act, Service Occupation Tax
20Act, Use Tax Act, Service Use Tax Act, or any other State or
21local occupation or use tax law that is administered by the
22Department, the sum of the taxpayer's liabilities under the
23Retailers' Occupation Tax Act, Service Occupation Tax Act, Use
24Tax Act, Service Use Tax Act, and all other State and local
25occupation and use tax laws administered by the Department for
26the immediately preceding calendar year.

 

 

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1    (d) For purposes of subsection (b), the term "annual tax
2liability" means, for a taxpayer that incurs an Illinois income
3tax liability, the greater of:
4        (1) the amount of the taxpayer's tax liability under
5    Article 7 of the Illinois Income Tax Act for the
6    immediately preceding calendar year; or
7        (2) the taxpayer's estimated tax payment obligation
8    under Article 8 of the Illinois Income Tax Act for the
9    immediately preceding calendar year.
10    (e) The Department shall adopt such rules as are necessary
11to effectuate a program of electronic funds transfer and the
12requirements of this Section.
13(Source: P.A. 91-239, eff. 1-1-00; 92-492, eff. 1-1-02.)
 
14    Section 10. The Illinois Income Tax Act is amended by
15changing Section 704A as follows:
 
16    (35 ILCS 5/704A)
17    Sec. 704A. Employer's return and payment of tax withheld.
18    (a) In general, every employer who deducts and withholds or
19is required to deduct and withhold tax under this Act on or
20after January 1, 2008 shall make those payments and returns as
21provided in this Section.
22    (b) Returns. Every employer shall, in the form and manner
23required by the Department, make returns with respect to taxes
24withheld or required to be withheld under this Article 7 (i)

 

 

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1for each quarter beginning on or after January 1, 2008, and
2beginning before January 1, 2011, on or before the last day of
3the first month following the close of that quarter and (ii)
4for each calendar year beginning on or after January 1, 2011,
5on or before January 31 of the following year.
6    (c) Payments. With respect to amounts withheld or required
7to be withheld on or after January 1, 2008:
8        (1) Semi-weekly payments. For each calendar year, each
9    employer who withheld or was required to withhold more than
10    $12,000 during the one-year period ending on June 30 of the
11    immediately preceding calendar year, payment must be made:
12            (A) on or before each Friday of the calendar year,
13        for taxes withheld or required to be withheld on the
14        immediately preceding Saturday, Sunday, Monday, or
15        Tuesday;
16            (B) on or before each Wednesday of the calendar
17        year, for taxes withheld or required to be withheld on
18        the immediately preceding Wednesday, Thursday, or
19        Friday.
20        (2) Semi-weekly payments. Any employer who withholds
21    or is required to withhold more than $12,000 in any quarter
22    of a calendar year is required to make payments on the
23    dates set forth under item (1) of this subsection (c) for
24    each remaining quarter of that calendar year and for the
25    subsequent calendar year.
26        (3) Monthly payments. Each employer, other than an

 

 

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1    employer described in items (1) or (2) of this subsection,
2    shall pay to the Department, on or before the 15th day of
3    each month the taxes withheld or required to be withheld
4    during the immediately preceding month.
5        (4) Payments with returns. Each employer shall pay to
6    the Department, on or before the due date for each return
7    required to be filed under this Section, any tax withheld
8    or required to be withheld during the period for which the
9    return is due and not previously paid to the Department.
10    (d) Regulatory authority. The Department may, by rule:
11        (1) If the aggregate amounts required to be withheld
12    under this Article 7 (other than amounts required to be
13    withheld under Section 709.5) do not exceed $1,000 for the
14    calendar year, permit employers, in lieu of the
15    requirements of subsections (b) and (c), to file annual
16    returns due on or before January 31 of the following year
17    for taxes withheld or required to be withheld during that
18    calendar year and to pay the taxes required to be shown on
19    each such return no later than the due date for such
20    return.
21        (2) Provide that any payment required to be made under
22    subsection (c)(1) or (c)(2) is deemed to be timely to the
23    extent paid by electronic funds transfer on or before the
24    due date for deposit of federal income taxes withheld from,
25    or federal employment taxes due with respect to, the wages
26    from which the Illinois taxes were withheld.

 

 

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1        (3) Designate one or more depositories to which payment
2    of taxes required to be withheld under this Article 7 must
3    be paid by some or all employers.
4        (4) Increase the threshold dollar amounts at which
5    employers are required to make semi-weekly payments under
6    subsection (c)(1) or (c)(2).
7    (e) Annual return and payment. Every employer who deducts
8and withholds or is required to deduct and withhold tax from a
9person engaged in domestic service employment, as that term is
10defined in Section 3510 of the Internal Revenue Code, may
11comply with the requirements of this Section with respect to
12such employees by filing an annual return and paying the taxes
13required to be deducted and withheld on or before the 15th day
14of the fourth month following the close of the employer's
15taxable year. The Department may allow the employer's return to
16be submitted with the employer's individual income tax return
17or to be submitted with a return due from the employer under
18Section 1400.2 of the Unemployment Insurance Act.
19    (f) Magnetic media and electronic filing. Any W-2 Form
20that, under the Internal Revenue Code and regulations
21promulgated thereunder, is required to be submitted to the
22Internal Revenue Service on magnetic media or electronically
23must also be submitted to the Department on magnetic media or
24electronically for Illinois purposes, if required by the
25Department.
26    (g) For amounts deducted or withheld after December 31,

 

 

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12009, a taxpayer who makes an election under Section 5-15(f) of
2the Economic Development for a Growing Economy Act for a
3taxable year shall be allowed a credit against payments due
4under this Section for amounts withheld during the first
5calendar year beginning after the end of that taxable year
6equal to the amount of the credit awarded to the taxpayer by
7the Department of Commerce and Economic Opportunity under the
8Economic Development for a Growing Economy Act for the taxable
9year. The credit may not reduce the taxpayer's obligation for
10any payment due under this Section to less than zero. If the
11amount of the credit exceeds the total payments due under this
12Section with respect to amounts withheld during the calendar
13year, the excess may be carried forward and applied against the
14taxpayer's liability under this Section in the 5 succeeding
15calendar years. The credit shall be applied to the earliest
16year for which there is a tax liability. If there are credits
17from more than one taxable year that are available to offset a
18liability, the earlier credit shall be applied first. This
19Section is exempt from the provisions of Section 250 of this
20Act.
21(Source: P.A. 95-8, eff. 6-29-07; 95-707, eff. 1-11-08; 96-834,
22eff. 12-14-09.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.".