35 ILCS 5/1405.2
2021 Illinois Compiled Statutes|Chapter 35 - REVENUE|35 ILCS 5/ - Illinois Income Tax Act.|Article 14 - Miscellaneous Provisions

 (from Ch. 120, par. 14-1405.2)Sec. 1405.2.         Information reports for payments made under contracts for  personal services:(a) Payments made on or after January 1, 1989, under contracts for  personal services.  Any person maintaining an office or transacting  business in Illinois shall maintain a record, in a format in which the record  is available to review by the Department, of all payments made  under contracts for personal services.  Payments which meet all of the  following criteria are considered payments made under contracts for  personal services:(1) the payment is made in the ordinary course of the     trade or business of the payor;(2) the payment is made pursuant to a written     contract requiring the rendition of personal services;(3) the sum of the payment and other payments     required to be made under the contract during the same calendar year by the payor exceed $1000; and(4) the performance of the personal services     specified in the contract will necessitate the presence at sometime in Illinois of a particular individual or group of individuals; provided that no reporting will be required if there is certification that the individual or, if appropriate, group of individuals is composed solely of Illinois residents, and further provided that no reporting will be required if there is certification that the individual or, if appropriate, group of individuals is employed by a person maintaining an office in Illinois.(b) Information required to be maintained. The  information to be maintained in a format in which the information is  available for review by the Department shall specify the identifying numbers of persons  receiving the payments made under the contract for personal services, the  names of the persons receiving the payments, the addresses of the persons  receiving the payments, and the aggregate amount of payments made to each  person.  The information shall also specify the identifying  number, name, and  address of the payor.(c) Every person required to maintain information  under subsection (a) shall  furnish to each person with respect to whom the information is required a  copy of the information maintained for Department inspection.Where the payment is made to a person or persons other than the  individual or group of individuals whose presence in Illinois was  necessitated by the contract, the written statement furnished to the  payment recipients shall state that such persons shall in turn inform the  individuals whose presence in Illinois was required, or their employer if  such individuals were employed, that the payment has been reported to the  Department of Revenue.The written statement required under the preceding sentence shall be  furnished to the person on or before January 31 of the year following the  calendar year for which the report under subsection (a) was required  to be made.(d) Penalties.  Any person required to provide copies of information to  persons to whom payments are made under subsection  (c) of this Section who fails to do so shall be subject to the  penalty prescribed by Section 3-4 of the Uniform Penalty and Interest Act.    (Source: P.A. 89-399, eff. 8-20-95.)