Rep. Jeanne M Ives

Filed: 12/3/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1227

2    AMENDMENT NO. ______. Amend Senate Bill 1227, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Income Tax Act is amended by
6changing Section 704 as follows:
 
7    (35 ILCS 5/704)  (from Ch. 120, par. 7-704)
8    Sec. 704. Employer's Return and Payment of Tax Withheld.
9    (a) In general, every employer who deducts and withholds or
10is required to deduct and withhold tax under this Act prior to
11January 1, 2008, shall make such payments and returns as
12provided in this Section.
13    (b) Quarter Monthly Payments: Returns. Every employer who
14deducts and withholds or is required to deduct and withhold tax
15under this Act shall, on or before the third banking day
16following the close of a quarter monthly period, pay to the

 

 

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1Department or to a depositary designated by the Department,
2pursuant to regulations prescribed by the Department, the taxes
3so required to be deducted and withheld, whenever the aggregate
4amount withheld by such employer (together with amounts
5previously withheld and not paid to the Department) exceeds
6$1,000. For purposes of this Section, Saturdays, Sundays, legal
7holidays and local bank holidays are not banking days. A
8quarter monthly period, for purposes of this subsection, ends
9on the 7th, 15th, 22nd and last day of each calendar month.
10Every such employer shall for each calendar quarter, on or
11before the last day of the first month following the close of
12such quarter, and for the calendar year, on or before January
1331 of the succeeding calendar year, make a return with respect
14to such taxes in such form and manner as the Department may by
15regulations prescribe, and pay to the Department or to a
16depositary designated by the Department all withheld taxes not
17previously paid to the Department.
18    (c) Monthly Payments: Returns. Every employer required to
19deduct and withhold tax under this Act shall, on or before the
2015th day of the second and third months of each calendar
21quarter, and on or before the last day of the month following
22the last month of each such quarter, pay to the Department or
23to a depositary designated by the Department, pursuant to
24regulations prescribed by the Department, the taxes so required
25to be deducted and withheld, whenever the aggregate amount
26withheld by such employer (together with amounts previously

 

 

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1withheld and not paid to the Department) exceeds $500 but does
2not exceed $1,000. Every such employer shall for each calendar
3quarter, on or before the last day of the first month following
4the close of such quarter, and for the calendar year, on or
5before January 31 of the succeeding calendar year, make a
6return with respect to such taxes in such form and manner as
7the Department may by regulations prescribe, and pay to the
8Department or to a depositary designated by the Department all
9withheld taxes not previously paid to the Department.
10    (d) Annual Payments: Returns. Where the amount of
11compensation paid by an employer is not sufficient to require
12the withholding of tax from the compensation of any of its
13employees (or where the aggregate amount withheld is less than
14$500), the Department may by regulation permit such employer to
15file only an annual return and to pay the taxes required to be
16deducted and withheld at the time of filing such annual return.
17    (e) Annual Return. The Department may, as it deems
18appropriate, prescribe by regulation for the filing of annual
19returns in lieu of quarterly returns described in subsections
20(b) and (c).
21    (e-5) Annual Return and Payment. On and after January 1,
221998, notwithstanding subsections (b) through (d) of this
23Section, every employer who deducts and withholds or is
24required to deduct and withhold tax from a person engaged in
25domestic service employment, as that term is defined in Section
263510 of the Internal Revenue Code, may comply with the

 

 

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1requirements of this Section by filing an annual return and
2paying the taxes required to be deducted and withheld on or
3before the 15th day of the fourth month following the close of
4the employer's taxable year. The annual return may be submitted
5with the employer's individual income tax return.
6    (f) Magnetic Media Filing. Forms W-2 that, pursuant to the
7Internal Revenue Code and regulations promulgated thereunder,
8are required to be submitted to the Internal Revenue Service on
9magnetic media, must also be submitted to the Department on
10magnetic media for Illinois purposes, if required by the
11Department.
12    (g) EDGE Credit assistance. Every employer who deducts and
13withholds or is required to deduct and withhold tax under this
14Act who retains income tax withholdings under Section 5-16 of
15the Economic Development for a Growing Economy Tax Credit Act
16must make a return with respect to those taxes and retained
17amounts in the form and manner that the Department, by rule,
18requires and pay to the Department or to a depositary
19designated by the Department those withheld taxes not retained
20by the taxpayer.
21(Source: P.A. 95-8, eff. 6-29-07.)
 
22    Section 10. The Economic Development for a Growing Economy
23Tax Credit Act is amended by adding Section 5-16 as follows:
 
24    (35 ILCS 10/5-16 new)

 

 

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1    Sec. 5-16. Optional retention; income tax withholding.
2    (a) An applicant who has been awarded a Credit under this
3this Act may, in the applicant's sole discretion, opt to retain
4taxes withheld under Article 7 of the Illinois Income Tax Act
5in lieu of an income tax credit. The amount of withheld taxes
6retained by the applicant in a taxable year may not exceed the
7amount of the Credit awarded by the Department for that taxable
8year.
9    (b) Each employee whose taxes were withheld by an employer
10who retains amounts under this subsection must receive credit
11for 100% of the taxes withheld from his or her pay.
12    (c) The Department shall file annual reports with the
13General Assembly and the Governor on or before January 1 each
14year concerning the applicants' retention of withheld taxes
15during the previous year and regarding the progress this
16assistance has made in advancing economic development in
17Illinois and its various regions.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.".