Full Text of HB3157 98th General Assembly
HB3157ham001 98TH GENERAL ASSEMBLY | Rep. Marcus C. Evans, Jr. Filed: 3/19/2013
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| 1 | | AMENDMENT TO HOUSE BILL 3157
| 2 | | AMENDMENT NO. ______. Amend House Bill 3157 on page 1, line | 3 | | 5, by replacing line 5 with the following:
| 4 | | "changing Sections 304, 305, 307, 308, 502, and 709.5 as | 5 | | follows:"; and | 6 | | on page 65, by replacing lines 7 and 8 with the following: | 7 | | "(f) For taxable years ending prior to December 31, 2014, | 8 | | the The Department may promulgate regulations to permit"; and | 9 | | by replacing everything from line 18 on page 65 through line 3 | 10 | | on page 66 with the following: | 11 | | "individual income tax payments. For taxable years ending prior | 12 | | to December 31, 2014, the The Department may
by regulation also | 13 | | permit such composite returns to include the income tax
owed by | 14 | | Illinois residents attributable to their income from | 15 | | partnerships,
Subchapter S corporations, insurance businesses | 16 | | organized under a Lloyds
plan of operation, or limited |
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| 1 | | liability companies that are treated as
partnership under | 2 | | Section 1501(a)(16) of this Act, in which case such
Illinois | 3 | | residents will be permitted to claim credits on their | 4 | | individual
returns for their shares of the composite tax | 5 | | payments. This paragraph of
subsection (f) applies to taxable | 6 | | years ending on or after December 31, 1987 and ending prior to | 7 | | December 31, 2014 ."; and | 8 | | by replacing everything from line 18 on page 67 through line 16 | 9 | | on page 95 with the following: | 10 | | "(35 ILCS 5/709.5)
| 11 | | Sec. 709.5. Withholding by partnerships, Subchapter S | 12 | | corporations, and trusts. | 13 | | (a) In general. For each taxable year ending on or after | 14 | | December 31, 2008, every partnership (other than a publicly | 15 | | traded partnership under Section 7704 of the Internal Revenue | 16 | | Code or investment partnership), Subchapter S corporation, and | 17 | | trust must withhold from each nonresident partner, | 18 | | shareholder, or beneficiary (other than a partner, | 19 | | shareholder, or beneficiary who is exempt from tax under | 20 | | Section 501(a) of the Internal Revenue Code or under Section | 21 | | 205 of this Act, who is included on a composite return filed by | 22 | | the partnership or Subchapter S corporation for the taxable | 23 | | year under subsection (f) of Section 502 of this Act), or who | 24 | | is a retired partner, to the extent that partner's |
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| 1 | | distributions are exempt from tax under Section 203(a)(2)(F) of | 2 | | this Act) an amount equal to the sum distributable share of (i) | 3 | | the share of business income of the partnership, Subchapter S | 4 | | corporation, or trust apportionable to Illinois plus (ii) for | 5 | | taxable years ending on or after December 31, 2014, the share | 6 | | of nonbusiness income of the partnership, Subchapter S | 7 | | corporation, or trust allocated to Illinois under Section 303 | 8 | | of this Act (other than an amount allocated to the commercial | 9 | | domicile of the taxpayer under Section 303 of this Act) that is | 10 | | distributable to of that partner, shareholder, or beneficiary | 11 | | under Sections 702 and 704 and Subchapter S of the Internal | 12 | | Revenue Code, whether or not distributed, (2) multiplied by the | 13 | | applicable rates of tax for that partner , or shareholder , or | 14 | | beneficiary under subsections (a) through (d) of Section 201 of | 15 | | this Act , and (3) net of the share of any credit under Article | 16 | | 2 of this Act that is distributable by the partnership, | 17 | | Subchapter S corporation, or trust and allowable against the | 18 | | tax liability of that partner, shareholder, or beneficiary for | 19 | | a taxable year ending on or after December 31, 2014 . | 20 | | (b) Credit for taxes withheld. Any amount withheld under | 21 | | subsection (a) of this Section and paid to the Department shall | 22 | | be treated as a payment of the estimated tax liability or of | 23 | | the liability for withholding under this Section of the | 24 | | partner, shareholder, or beneficiary to whom the income is | 25 | | distributable for the taxable year in which that person | 26 | | incurred a liability under this Act with respect to that |
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| 1 | | income.
The Department shall adopt rules pursuant to which a | 2 | | partner, shareholder, or beneficiary may claim a credit against | 3 | | its obligation for withholding under this Section for amounts | 4 | | withheld under this Section with respect to income | 5 | | distributable to it by a partnership, Subchapter S corporation, | 6 | | or trust and allowing its partners, shareholders, or | 7 | | beneficiaries to claim a credit under this subsection (b) for | 8 | | those withheld amounts.
| 9 | | (c) Exemption from withholding. | 10 | | (1) A partnership, Subchapter S corporation, or trust | 11 | | shall not be required to withhold tax under subsection (a) | 12 | | of this Section with respect to any nonresident partner, | 13 | | shareholder, or beneficiary (other than an individual) | 14 | | from whom the partnership, S corporation, or trust has | 15 | | received a certificate, completed in the form and manner | 16 | | prescribed by the Department, stating that such | 17 | | nonresident partner, shareholder, or beneficiary shall: | 18 | | (A) file all returns that the partner, | 19 | | shareholder, or beneficiary is required to file under | 20 | | Section 502 of this Act and make timely payment of all | 21 | | taxes imposed under Section 201 of this Act or under | 22 | | this Section on the partner, shareholder, or | 23 | | beneficiary with respect to income of the partnership, | 24 | | S corporation, or trust; and | 25 | | (B) be subject to personal jurisdiction in this | 26 | | State for purposes of the collection of income taxes, |
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| 1 | | together with related interest and penalties, imposed | 2 | | on the partner, shareholder, or beneficiary with | 3 | | respect to the income of the partnership, S | 4 | | corporation, or trust. | 5 | | (2) The Department may revoke the exemption provided by | 6 | | this subsection (c) at any time that it determines that the | 7 | | nonresident partner, shareholder, or beneficiary is not | 8 | | abiding by the terms of the certificate. The Department | 9 | | shall notify the partnership, S corporation, or trust that | 10 | | it has revoked a certificate by notice left at the usual | 11 | | place of business of the partnership, S corporation, or | 12 | | trust or by mail to the last known address of the | 13 | | partnership, S corporation, or trust. | 14 | | (3) A partnership, S corporation, or trust that | 15 | | receives a certificate under this subsection (c) properly | 16 | | completed by a nonresident partner, shareholder, or | 17 | | beneficiary shall not be required to withhold any amount | 18 | | from that partner, shareholder, or beneficiary, the | 19 | | payment of which would be due under Section 711(a-5) of | 20 | | this Act after the receipt of the certificate and no | 21 | | earlier than 60 days after the Department has notified the | 22 | | partnership, S corporation, or trust that the certificate | 23 | | has been revoked. | 24 | | (4) Certificates received by a the partnership, S | 25 | | corporation, or trust under this subsection (c) must be | 26 | | retained by the partnership, S corporation, or trust and a |
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| 1 | | record of such certificates must be provided to the | 2 | | Department, in a format in which the record is available | 3 | | for review by the Department, upon request by the | 4 | | Department. The Department may, by rule, require the record | 5 | | of certificates to be maintained and provided to the | 6 | | Department electronically.
| 7 | | (Source: P.A. 97-507, eff. 8-23-11.)".
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