Illinois Administrative Code › Title 86 - REVENUE › Part 750 - PAYMENT OF TAXES BY ELECTRONIC FUNDS TRANSFER › Section 750.300 - Payments Required to be Paid by Electronic Funds Transfer

Current through Register Vol. 48, No. 28, July 12, 2024
a) Income Tax
			 Payments
1) Beginning on October 1, 1993,
			 certain withholding tax payments and estimated income tax payments will be
			 required to be paid by electronic funds transfer. The threshold amounts are set
			 by law, change over time, and are detailed below.
2)
Beginning on October 1, 1993, a
			 taxpayer who has an average monthly tax liability of $150,000 or more under
			 Article 7 of the Act shall make all payments required by rules of the
			 Department by electronic funds transfer. Beginning October 1, 1993, a taxpayer
			 who has an average quarterly estimated tax payment obligation of $450,000 or
			 more under Article 8 of the Act shall make all payments required by rules of
			 the Department by electronic funds transfer.
(Section 601.1 of the
			 Illinois Income Tax Act [35 ILCS
			 5/601.1 ] ("the IITA"))
A) Beginning on October 1, 1994, the
			 threshold for taxpayers with withholding liability under Article 7 of the IITA
			 drops to an average monthly liability of $100,000, and, beginning on October 1,
			 1995, the threshold drops to an average monthly liability of $50,000.
B) Beginning on October 1, 1994, the
			 threshold for taxpayers with liability for estimated tax payments under Article
			 8 of the IITA drops to an average quarterly estimated tax payment obligation of
			 $300,000 and, beginning on October 1, 1995, the threshold drops to an average
			 quarterly estimated tax payment obligation of $150,000.
C) Beginning on October 1, 2000, the
			 threshold for taxpayers with withholding liability under Article 7 of the IITA
			 drops to an average annual liability of $200,000 and the threshold for
			 taxpayers with liability for estimated tax payments under Article 8 of the IITA
			 drops to an average quarterly estimated tax payment obligation of
			 $50,000.
D)
Beginning
			 October 1, 2002, a taxpayer who has an annual tax liability of $200,000 or more
			 shall make all payments of that tax to the Department by electronic funds
			 transfer. The term "annual tax liability" means the greater of the amount of
			 the taxpayer's tax liability under Article 7 of the IITA for the immediately
			 preceding calendar year or the taxpayer's estimated tax payment obligation
			 under Article 8 of the IITA for the immediately preceding calendar
			 year.
[20 ILCS
			 2505/2505-210 ]
E)
Beginning October 1,
			 2010,
except as provided in subsection (a)(2)(F), a taxpayer (other
			 than an individual taxpayer) who has an annual tax liability of $20,000 or more
			 and an individual taxpayer who has an annual tax liability of $200,000 or more
			 shall make all payments of that tax to the Department by electronic funds
			 transfer. [20 ILCS
			 2505/2505-210(b) ] The term "annual
			 tax liability" means the greater of the amount of the taxpayer's tax liability
			 under Article 7 of the IITA for the immediately preceding calendar year or the
			 taxpayer's estimated tax payment obligation under Article 8 of the IITA for the
			 immediately preceding calendar year. [20 ILCS
			 2505/2505-10(d) ]
F)
Beginning with calendar year 2011,
			 payments of withholding required to be made on a semi-weekly basis under IITA
			 Section 704A(c)(1) must be made by electronic funds transfer.
(IITA
			 Section 704A(c)(1)) (See 86 Ill. Adm. Code
			 100.7325(c)(4).)
3) The Department will only
			 require payments by electronic funds transfer in those circumstances in which
			 it is cost-effective for the Department to receive payments by electronic funds
			 transfer and where receipt of payments by electronic funds transfer is
			 consistent with the Department's tax processing capabilities.
4) Taxpayers over the statutory thresholds
			 will only be required to make certain types of income tax payments by
			 electronic funds transfer.
A) Taxpayers with
			 income tax withholding liabilities over the statutory thresholds shall make
			 IL-501 payments by electronic funds transfer. All other withholding payments by
			 those taxpayers shall be made by conventional means.
B) Corporate taxpayers with estimated income
			 and replacement tax liabilities over the statutory thresholds shall make
			 IL-1120-ES payments and IL-505-B payments by electronic funds transfer.
C) Individual taxpayers with
			 estimated income tax liabilities over the statutory thresholds shall make
			 IL-1040-ES and IL-505-I payments by electronic funds transfer.
D) Any other taxpayers not listed above who
			 incur estimated income tax liabilities over the statutory thresholds will, upon
			 contact by the Department, be required to make subsequent estimated payments by
			 electronic funds transfer as directed by the Department.