reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart P - COMPOSITE RETURNS › Section 100.5170 - Composite Returns: Definition of a "Lloyd's Plan of Operation"

Current through Register Vol. 48, No. 28, July 12, 2024
For purposes of these composite return regulations, a
				  "Lloyd's plan of operation" is a plan of insurance by contract where members of
				  an association which is not incorporated agree to indemnify each other, or some
				  third person, against loss, damage, liability arising from an unknown or
				  contingent event, each member agreeing to bear a given amount of such loss,
				  damage, or liability. 46 Corpus Juris Secundum Insurance Section 1410. In
				  Illinois, an insurance company using a Lloyd's plan of operation must have
				  obtained a Certificate of Authority from the Department of Insurance pursuant
				  to Section 96 of the Illinois Insurance Code (Ill. Rev. Stat. 1985, ch 73, par.
				  708).
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart P - COMPOSITE RETURNS › Section 100.5180 - Composite Returns: Overpayments and Underpayments

Current through Register Vol. 48, No. 28, July 12, 2024
a) When an authorized agent has made an error
				in determining the amount of any item of income, deduction, addition,
				subtraction or credit reported on a composite return, the authorized agent
				shall file an amended return to correct the error and claim a refund or credit,
				or pay the liability, for any person included on the composite
				return.
b) For taxable years ending
				on or after December 31, 2008, a partnership or subchapter S corporation may
				report the changes in liabilities of its partners or shareholders and pay the
				resulting underpayments, on behalf of its partners and shareholders, whether or
				not a composite return was filed for the taxable year or any specific partner
				or shareholder was included on that composite return. A partnership or
				subchapter S corporation may claim a refund or credit of any amount it paid on
				behalf of its partners or shareholders under Section
				100.5100,
				subsection (a) or this subsection, but may not claim a refund or credit of any
				amount paid to the Department by a partner or shareholder.
c) If the amount of tax properly reportable
				on any return filed under Section
				100.5100
				or any original or amended return filed under subsection (a) or (b) is not
				reported and timely paid, the Department may issue a notice of deficiency to
				the authorized agent with respect to that underpayment and any associated
				penalties and interest and may issue notices of deficiency to the partners or
				shareholders, provided that:
1) The
				Department may not collect the underpaid amount of tax, including associated
				penalties and interest, more than once, and, if claims for refund or credit of
				any amount collected more than once are timely filed by both a partner or
				shareholder and the authorized agent, any amount collected from that partner or
				shareholder in excess of the underpayment attributable to that partner or
				shareholder shall be refunded or credited to that partner or shareholder rather
				than to the authorized agent; and
2) No penalty for failure to timely file a
				return or pay the amount of tax due shall be assessed against a partner or
				shareholder who had timely requested the authorized agent in writing to file
				composite original or amended returns and pay tax on his or her behalf under
				this Part, and had no knowledge that the authorized agent would not comply with
				that request prior to the earlier of the date of filing or the due date
				(including extensions) for filing the partner's or shareholder's
				return.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart Q - COMBINED RETURNS › Section 100.5200 - Filing of Combined Returns

Current through Register Vol. 48, No. 28, July 12, 2024
For a number of years, Illinois corporate taxpayers that were
				  members of a unitary business group were able to elect to file combined
				  returns. Section
				  100.5205
				  provides guidance for the tax years for which this election was available.
				  Taxpayers are now required to file combined returns in certain situations. For
				  taxable years ending on or after December 31, 1993, taxpayers that are
				  corporations (other than Subchapter S corporations) and that are members of the
				  same unitary business group shall be treated as one taxpayer for purposes of
				  any original return, amended return which includes the same taxpayers of the
				  unitary group which joined in filing the original return, extension, claim for
				  refund, assessment, collection and payment and determination of the group's tax
				  liability under the Act (IITA Section 502(e)). The rules in this Subpart P are
				  promulgated under the express statutory direction that the Department shall
				  make, promulgate and enforce such reasonable rules and regulations, and
				  prescribe such forms as it may deem appropriate, to require all taxpayers that
				  are corporations (other than Subchapter S corporations) and that are members of
				  the same unitary business groups to be treated as one taxpayer. (IITA Section
				  1401(b)(2))
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart Q - COMBINED RETURNS › Section 100.5205 - Election to File a Combined Return

Current through Register Vol. 48, No. 28, July 12, 2024
a) Effective date. The provision allowing
				corporations to elect to be treated as a single taxpayer was in effect for
				taxable years ending on or after December 31, 1985, and before December 31,
				1993.
b) Scope of the election.
				Pursuant to IITA Section 502(e), taxpayers that are corporations (other than
				Subchapter S corporations) having the same taxable year and that are members of
				the same unitary business group may elect to be treated as one taxpayer for
				purposes of any original return, amended return which includes the same
				taxpayers of the unitary group which joined in the election to file the
				original return, extension, claim for refund, assessment, collection and
				payment and determination of the group's tax liability under the Act. Section
				502 (e) of the Act does not permit the election to be made for some, but not
				all, of the purposes enumerated above. For taxable years ending on or after
				December 31, 1987, corporate members (other than Subchapter S corporations) of
				the same unitary business group making the subsection (e) election are not
				required to have the same taxable year. (IITA Section 502(e))
c) The election under IITA Section 502(e) is
				not an election to be a member of a unitary business group. Membership in a
				unitary business group is mandatory if the criteria for inclusion are met, and
				is determined under IITA Section 1501(a)(27) and Section
				100.9700
				of this Part. If a unitary business group does not elect to file a combined
				return, each Illinois taxpayer member of that group will be treated as a
				separate taxpayer for all Illinois income tax purposes except for the
				apportionment of unitary business income. Such taxpayers shall each file their
				own separate unitary returns.
d)
				Except as expressly provided, Sections
				100.5201
				through
				100.5280
				of this Subpart are applicable to all elections made pursuant to IITA Section
				502(e).
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart Q - COMBINED RETURNS › Section 100.5210 - Procedures for Elective and Mandatory Filing of Combined Returns

Current through Register Vol. 48, No. 28, July 12, 2024
a) Conditions of
				the election and election procedures. This subsection (a) applies to taxable
				years ending on or after December 31, 1985 and prior to December 31, 1993.
1) Conditions
A) The election, if made, must include all
				eligible members of the unitary business group, not just some.
B) For taxable years ending on or after
				December 31, 1987, taxpayers are not required to have the same taxable
				year.
C) For taxable years ending
				on or after December 31, 1985 and before December 31, 1987, taxpayers were
				required to have the same taxable year to be eligible for the election.
				Corporate members with taxable years which were different from the common
				taxable year were required to file their own separate unitary returns or, in
				the case of two or more corporate members which have the same taxable year that
				is different from other corporate members making the election, they were
				allowed to elect to file their own combined return.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart Q - COMBINED RETURNS › Section 100.5220 - Designated Agent for the Members (IITA Section 304(e))

Current through Register Vol. 48, No. 28, July 12, 2024
a) Qualification. The controlling corporation
				of a combined group is the designated agent for the group if the controlling
				corporation is a member of the combined group. Otherwise, the members of the
				combined group shall choose any Illinois taxpayer member of the combined group
				to be the designated agent. Designation of the agent is made on Schedule UB.
				Instances in which a controlling corporation is not a member of the combined
				group include:
1) The combined group is
				comprised of corporations that are wholly owned by an individual. In this
				instance, there is no controlling corporation.
2) A manufacturing corporation required to
				apportion its business income under IITA Section 304(a) owns a unitary business
				group of financial organizations required to apportion their business income
				under IITA Section 304(c). IITA Section 1502(a)(27) provides that, for taxable
				years ending prior to December 31, 2017, corporations that use different
				apportionment formulas under IITA Section 304 shall not be included in the same
				unitary business group. Accordingly, the controlling corporation in this
				example is not a member of the combined group comprised of its financial
				organization subsidiaries.
3) The
				controlling corporation does not have nexus with Illinois, and thus is not an
				Illinois taxpayer. Only Illinois taxpayers may be members of a combined
				group.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart Q - COMBINED RETURNS › Section 100.5240 - Claims for Credit of Overpayments

Current through Register Vol. 48, No. 28, July 12, 2024
a) In general. If a taxpayer becomes a member
				of a combined group during a common taxable year, any requested credit
				carryforward shown on its separate return for the taxable period ending with
				its entry into the combined group shall be credited against the combined
				liability, and the designated agent shall claim this credit on the combined
				return, for the taxable year in which the member joins the combined group. A
				taxpayer that leaves a combined group may not claim a credit shown on a
				combined return against its separate tax liability in a subsequent taxable
				year. When an election is revoked, any claim for credit shown on the last
				combined return shall be credited against the separate liabilities of the
				electing members in the manner designated by the designated agent that is
				satisfactory to the Department. The manner designated will be satisfactory to
				the Department if it does not jeopardize the collection of any
				liability.
b) Examples. The
				provisions of this Section may be illustrated by the following examples:
1) Example 1. Corporation P and S-1 file a
				combined return in 1985. S-2 becomes an eligible member on January 1, 1986.
				S-2's 1985 overpayment of tax which it elected to be credited to 1986 shall be
				utilized against the combined 1986 liability.
2) Example 2. The 1985 combined return of P,
				S-1 and S-2 shows an overpayment which the designated agent elects as a credit
				against its 1986 liability. If S-2 leaves the combined group during 1986 it
				does not share in the overpayment credit.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart Q - COMBINED RETURNS › Section 100.5250 - Liability for Combined Tax, Penalty and Interest

Current through Register Vol. 48, No. 28, July 12, 2024
a) Joint and several liability of members of
				a combined group. The members of a combined group shall be jointly and
				severally liable for the combined tax, penalty and interest computed in
				accordance with this Subpart P, as well as the Uniform Penalty and Interest Act
				and rules adopted pursuant to the UPIA at 86 Ill. Adm. Code 700.
b) Effect of intercompany agreements. No
				agreement entered into by one or more members of a combined group with any
				other member of such group or with any other person shall in any case have the
				effect of reducing the liability prescribed under this Section.
c) Penalties. If a penalty is imposed under
				the IITA and the UPIA with respect to a combined return year, the amount shall
				be based on the combined tax liability or deficiency for the common taxable
				year.
1) For purposes of applying the
				penalties for failure to file a return imposed by Section 3-3(a), Section
				3-3(a-5) and Section 3-3(a-10) of the Uniform Penalty and Interest Act (UPIA)
				[35 ILCS
				735/3-3 ]:
A) A
				corporation which erroneously fails to join in the filing of a combined return,
				but which timely files a separate Illinois income tax return or joins in the
				timely filing of a combined return for another combined group, shall not be
				subject to any penalty. In determining whether such separate or combined return
				is timely filed, the separate taxable year of such corporation or the common
				taxable year of the combined group such corporation erroneously joined shall be
				used, rather than the common taxable year of the combined group with which such
				corporation should have filed.
B) A
				corporation which erroneously fails to join in the filing of a combined return,
				and which fails, without reasonable cause, to timely file a separate Illinois
				income tax return or to join in the timely filing of a combined return for
				another combined group, shall be subject to penalty computed on the amount of
				tax shown (or required to be shown) due on the combined return for its proper
				combined group. Because it is the duty of the designated agent, acting on
				behalf of the combined group, to include such corporation in the combined
				return, the members of the combined groups shall be jointly and severally
				liable for the penalty.
C) A
				corporation which erroneously joins in the timely filing of a combined return
				shall not be subject to penalty for failure to file a return.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart Q - COMBINED RETURNS › Section 100.5260 - Combined Amended Returns

Current through Register Vol. 48, No. 28, July 12, 2024
a) In
				general. The election or requirement to be treated as a single taxpayer applies
				to any amended return which includes the same taxpayers of the unitary business
				group which joined in the filing of the original return.
b) No election. If an election is not in
				effect for a taxable year ending prior to December 31, 1993, a combined amended
				return shall not be filed for that year.
c) If an election is in effect for a taxable
				year and it is subsequently revoked for that year because the group is not a
				unitary business, the designated agent may not file a combined amended return.
				Similarly, if a group files what it believes to be a required combined return,
				and it is later determined that the group is not engaged in a unitary business,
				the designated agent shall not file a combined amended return. Instead, in
				either instance, the designated agent and each corporation which joined in the
				filing of the combined return shall file a separate amended return. In
				computing the tax due on any such amended return, the filer shall take into
				account all payments, credits and other amounts (including refunds) allocated
				to it by the designated agent pursuant to Section
				100.5230(g)
				or Section
				100.5250(d)(2)
				 of this Part.
d) Ineligible member. If a change in
				liability relates to the removal of a member that was not eligible to make the
				election, or of a taxpayer which could not be required to be a part of the
				group (e.g., a corporation which was not engaged in a unitary business with the
				combined group members, a partnership, or a Subchapter S Corporation), the
				designated agent shall file a combined amended return and the ineligible
				taxpayer shall file a separate amended return.
e) If a corporation erroneously fails to join
				in the filing of a combined return, the designated agent shall file an amended
				combined return adding such corporation and, if a separate return was filed by
				such corporation, such corporation shall file an amended separate return
				showing no net income, overpayment or underpayment, and stating that such
				corporation has joined in the filing of a combined return.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart Q - COMBINED RETURNS › Section 100.5280 - Combined Return Issues Related to Audits

Current through Register Vol. 48, No. 28, July 12, 2024
a) If, on audit, the Department determines
				that two or more corporations are members of a unitary business group for which
				no combined return was filed:
1) For taxable
				years ending on or after December 31, 1985 and before December 31, 1993, any
				audit liabilities determined by the Department will be proposed and processed
				on a separate unitary return basis. If Notices of Deficiency are issued, they
				will be issued to each Illinois taxpayer and will reflect that taxpayer's
				Illinois income tax liability computed on a separate return basis.
2) For taxable years ending on or after
				December 31, 1993, any audit liabilities determined by the Department will be
				processed on a combined return basis. Because each member of a combined group
				is jointly and severally liable for the tax liability of the entire group, if
				any Notices of Deficiency are issued:
A) the
				Notices of Deficiency shall reflect the combined return income and liability of
				the entire combined group; and
B) a
				separate Notice of Deficiency will be issued to each Illinois taxpayer, unless
				a designated agent has been appointed under Section
				100.5220(g)
				of this Part, in which case the Department may issue a Notice of Deficiency
				solely to the designated agent and to any corporation which has requested the
				Department to be allowed to represent itself pursuant to Section
				100.5220(f)(2)
				 of this Part.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart R - Payments › Section 100.6000 - Payment on Due Date of Return (IITA Section 601)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Except as provided in subsection (b),
				every taxpayer required to file a return under the IITA shall, without
				assessment, notice or demand, pay any tax due thereon to the Department on or
				before the date fixed for filing such return (determined without regard to any
				extension of time for filing the return). (IITA Section 601(a))
b) If the due date for payment of a
				taxpayer's federal income tax liability for a tax year (as provided in the
				Internal Revenue Code or by Treasury regulation, or as extended by the Internal
				Revenue Service) is later than the date fixed for filing the taxpayer's
				Illinois income tax return for that tax year, the due date for payment of the
				Illinois income tax liability due on that return shall be the extended due date
				for payment of the taxpayer's federal income tax liability. (IITA Section
				601(a)) Pursuant to this provision, if the due date for payment of any federal
				income tax liability is extended for any reason (for example, as the result of
				a holiday, including a holiday not observed in this State such as the
				Emancipation Day holiday observed in Washington, D.C., or because of natural
				disaster under IRC section 7508A), the payment of any Illinois income tax
				liability on or before the extended federal due date for payment of the
				equivalent federal liability shall be timely.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart S - REQUIREMENT AND AMOUNT OF WITHHOLDING › Section 100.7010 - Compensation Paid in this State (IITA Section 701)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Except as provided in this Section, or in
				Section
				100.7090
				with respect to reciprocal withholding exemption agreements for employees
				residing in certain states, withholding is required with respect to
				"compensation paid in this State" under Section
				100.3120.
b) Withholding from Nonresident Employees.
For taxable years beginning on or after January 1, 2020, in determining
				compensation paid in this State under IITA Section 304(a)(2)(B) for purposes of
				this Section:
1)
If an
				employer maintains a time and attendance system that tracks where employees
				perform services on a daily basis, then data from the time and attendance
				system shall be used.
(IITA Section 701(a-5)(1)) For purposes of this
				subsection (b)(1), "time and attendance system" means a system:
A)
in which the employee is required,
				on a contemporaneous basis, to record the work location for every day worked
				outside of the State where the employment duties are primarily
				performed
(IITA Section 701(a-5)(1)(A)); and
B)
that is designed to allow the
				employer to allocate the employee's wages for income tax purposes among all
				states in which the employee performs services
(IITA Section
				701(a-5)(1)(B)).
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart S - REQUIREMENT AND AMOUNT OF WITHHOLDING › Section 100.7020 - Transacting Business Within This State (IITA Section 701)

Current through Register Vol. 48, No. 28, July 12, 2024
a) General rules. The phrase "employer
				transacting business within this State" includes any employer having or
				maintaining within this State, directly or by a subsidiary, an office,
				distribution house, sales house, warehouse or other place of business, or any
				agent or other representative operating within this State under the authority
				of the employer or its subsidiary, irrespective of whether such place of
				business or agent or other representative is located here permanently or
				temporarily, or whether such employer or subsidiary is licensed to do business
				in this State.
b) Agents. It does
				not matter that an agent may engage in business on his own account in other
				transactions, nor that such agent may act as agent for other persons in other
				transactions, nor that he is not an employee but is an independent contractor
				acting as agent. The term "agent" is broader than the term "employee". "Agent"
				includes anyone acting under the principal's authority in an agency
				capacity.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart S - REQUIREMENT AND AMOUNT OF WITHHOLDING › Section 100.7030 - Payments to Residents (IITA Section 701)

Current through Register Vol. 48, No. 28, July 12, 2024
a) In General
1) Any payment to an Illinois resident as an
				employee or otherwise by any payer maintaining an office or transacting
				business in this State shall be subject to withholding of Illinois income tax
				if those payments are subject to withholding of federal income tax. Any payer
				maintaining an office or transacting business in this State making these
				payments shall be considered an "employer" for purposes of IITA Article 7 and
				these regulations and, accordingly, will be subject to the same rules and
				procedures governing employers withholding tax on compensation paid in
				Illinois. For example, these payers will be required to register as withholding
				agents, and shall be subject to the reporting (and payment) requirements of
				IITA Sections 703 and 704. Also, these payers will be subject to the penalties
				prescribed in Article 10 of the Act.
2) Payments to an Illinois resident by a
				payer transacting business or maintaining an office in Illinois on which
				federal withholding is required shall be considered "compensation paid in
				Illinois" for purposes of IITA Article 7 and this Part. Illinois residents
				receiving these payments shall be considered "employees" for purposes of IITA
				Article 7 and this Part. Thus, for example, the computation of the amount of
				tax to be deducted and withheld shall be made pursuant to Section
				100.7050
				and the payee shall be entitled to a withholding exemption pursuant to Section
				100.7100.
3) Withholding shall be required on the first
				payment on which withholding of federal income tax is required and shall
				continue to be required in respect of all these payments until withholding of
				federal income tax on the payments terminates pursuant to the Internal Revenue
				Code and the regulations thereunder.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart S - REQUIREMENT AND AMOUNT OF WITHHOLDING › Section 100.7035 - Nonresident Partners, Subchapter S Corporation Shareholders, and Trust Beneficiaries (IITA Section 709.5)

Current through Register Vol. 48, No. 28, July 12, 2024
a) In
				General. For each taxable year ending on or after December 31, 2008, every
				pass-through entity must withhold from each nonresident owner an amount equal
				to the distributive share of that owner under sections 702 and 704 and
				subchapter S of the Internal Revenue Code, whether or not distributed, of: the
				business income of the pass-through entity that is apportionable to Illinois
				plus, for taxable years ending on or after December 31, 2014, the nonbusiness
				income of the partnership, subchapter S corporation, or trust allocated to
				Illinois under IITA Section 303 (other than an amount allocated to the
				commercial domicile of the taxpayer under IITA Section 303), multiplied by the
				applicable tax rate for that owner under IITA Section 201(a) through (d). For
				taxable years ending on or after December 31, 2014, the liability for each
				nonresident owner shall be reduced (but not below zero) by any credit under
				IITA Article 2 that is distributable by the partnership, subchapter S
				corporation, or trust to that owner for the taxable year. (See IITA Section
				709.5.)
b) Definitions. For
				purposes of this Section:
1) Certificate of
				Exemption. A certificate of exemption is a statement made in the form and
				manner prescribed by the Department that the owner completing the certificate
				undertakes to:
A) file all returns required
				to be filed under IITA Section 502;
B) timely pay all tax imposed under IITA
				Section 201 or required to be withheld under IITA Section 709.5; and
C) submit to the jurisdiction of the State of
				Illinois for purposes of collecting any amount owed in income tax, interest or
				penalties. (See IITA Section 709.5.)
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart S - REQUIREMENT AND AMOUNT OF WITHHOLDING › Section 100.7036 - Withholding of Lottery, Gambling and Sports Wagering Winnings (IITA Section 710)

Current through Register Vol. 48, No. 28, July 12, 2024
a) In General
1)
Any person making a payment to a
				resident or nonresident of winnings under the Illinois Lottery Law and not
				required to withhold Illinois income tax from the payment under
IITA
				Section 701(b)
because those winnings are not subject to federal income
				tax withholding must withhold Illinois income tax from that payment at a rate
				equal to the percentage tax rate for individuals provided in
IITA
				Section 201(b)
, provided that withhold is not required if the payment
				of winnings is less than $1,000.
(IITA Section 710(a)(1))
2)
In the case of an assignment of a
				lottery prize under Section
				13.1 of the Illinois Lottery
				Law
[20 ILCS 1605 ]
, any
				person making a payment of the purchase price after December 31, 2013 shall
				withhold from the amount of each payment at a rate equal to the percentage tax
				rate for individuals provided in IITA Section 201(b).
(IITA Section
				710(a)(2))
3)
Any person
				making a payment after December 31, 2019 to a resident or nonresident of
				winnings from pari-mutual wagering conducted at a wagering facility licensed
				under the Illinois Horse Racing Act of 1975
[230 ILCS
				5 ]
or from gambling games conducted on a
				riverboat or in a casino or organization gaming facility licensed under the
				Illinois Gambling Act
[230 ILCS 10 ]
must
				withhold Illinois income tax from the payment at a rate equal to the percentage
				tax rate for individuals provided in
IITA Section 201(b)
,
				provided that the person making the payment is required to withhold under
				26 U.S.C.
				3402(q).
(IITA
				Section 710(a)(3)) For more specific information, and precise details regarding
				actual federal withholding requirements, see
				26 U.S.C.
				3402(q) and the instructions
				for U.S. Form 5754 available from the Internal Revenue Service.
4)
Any person making a payment after
				December 31, 2021 to a resident or nonresident of winnings from sports wagering
				conducted in accordance with the Sports Wagering Act
[230 ILCS
				45 ]
must withhold Illinois income tax from
				such payment at a rate equal to the percentage tax rate for individuals
				provided in subsection (b) of Section 201, provided that the person making the
				payment is required to withhold under Section 3402(q) of the Internal Revenue
				Code.
(IITA Section 710 (a)(4)). For more specific information, and
				precise details regarding actual federal withholding requirements, see
				26 U.S.C.
				3402(q) and the instructions
				for U.S. Form 5754 available from the Internal Revenue Service.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart S - REQUIREMENT AND AMOUNT OF WITHHOLDING › Section 100.7040 - Employer Registration (IITA Section 701)

Current through Register Vol. 48, No. 28, July 12, 2024
Every employer required to deduct and withhold Illinois
				  income tax must register with the Department of Revenue. Each registration
				  application of an employer that has been assigned a federal identification
				  number must contain the employer's federal identification number. If an
				  employer has not been issued a federal employer's identification number, the
				  employer must notify the Department within a reasonable time after its federal
				  employer's identification number has been issued.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart S - REQUIREMENT AND AMOUNT OF WITHHOLDING › Section 100.7070 - Voluntary Withholding (IITA Section 701)

Current through Register Vol. 48, No. 28, July 12, 2024
Any individual receiving periodic payments may enter into an
				  agreement with the payor to provide for withholding of Illinois income tax on
				  those payments. An agreement under this section between the payor and the
				  individual shall be in writing and shall be governed by the provisions of
				  Section
				  100.7060(b).
				  The amount of tax to be deducted and withheld from each payment shall be equal
				  to an amount mutually agreed upon in the written agreement or computed using
				  the tax rate in effect for the date the compensation is paid and shall be
				  considered as a tax withheld from compensation for the purposes of IITA Article
				  6 and Article 7. A payor who has entered into an agreement under this Section
				  shall be considered an employer required to deduct and withhold tax for the
				  purposes of IITA Article 7 and IITA Section 1002 and shall accordingly be
				  required to register as a withholding agent and file the reports and returns
				  required of all employers withholding tax.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart S - REQUIREMENT AND AMOUNT OF WITHHOLDING › Section 100.7080 - Correction of Underwithholding or Overwithholding (IITA Section 701)

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Underwithholding. If an employer erroneously underwithholds an amount of
				Illinois income tax required to be deducted and withheld from compensation paid
				to an employee within a payroll period, he should correct the error within the
				same calendar year by deducting the difference between the amount withheld and
				the amount required to be withheld from any compensation still owed the
				employee, even though such compensation may not be subject to withholding. If
				the error is discovered in a subsequent calendar year, no correction shall be
				made by the employer. (See IITA Section 706.)
b) Overwithholding. If an employer
				erroneously overwithholds an amount of tax required to be deducted and withheld
				from compensation paid to an employee, repayment of such overwithheld amount
				shall be made in the same calendar year. Repayment may be made in either of two
				ways: the amount of overwithholding may be repaid directly to the employee, in
				which case the employer must obtain written receipt showing the date and amount
				of the repayment, or the employer may reimburse the employee by applying the
				overcollection against the tax required to be deducted and withheld on
				compensation to be paid in the same calendar year in which the overcollection
				occurred. If the error is discovered in a subsequent calendar year, no
				repayment shall be made.
c) Cross
				reference. For effect on reporting and remitting taxes deducted and withheld
				when there is an erroneous underwithholding or overwithholding, see 86 Ill.
				Adm. Code
				100.7340.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart S - REQUIREMENT AND AMOUNT OF WITHHOLDING › Section 100.7090 - Reciprocal Agreement (IITA Section 701)

Current through Register Vol. 48, No. 28, July 12, 2024
a) General rule. The Director may enter into
				an agreement with the taxing authorities of any state which imposes a tax on or
				measured by income to provide that compensation paid in such state to residents
				of Illinois shall be exempt from withholding of such tax; in such case, any
				compensation paid in Illinois to residents of such state shall be exempt from
				withholding of Illinois income tax. Pursuant to such reciprocal agreements, the
				employer in Illinois should, upon request by an employee residing in such other
				state, withhold tax on his compensation for the state of his residence. (See
				IITA Section 302(b) which provides for agreements exempting compensation of
				nonresidents from Illinois income tax.)
b) Example. This Section may be illustrated
				by the following example: A, a resident of State X is employed by X Retail
				Clothing Store, an Illinois corporation, and works each day in Chicago at X's
				store as a sales clerk. A's wages are "compensation paid in Illinois" as
				defined in IITA Section 304(a)(2)(B). However, pursuant to a reciprocal
				agreement with State X, A's compensation is not subject to withholding under
				the Illinois Income Tax Act. Accordingly, X Company is not required to withhold
				Illinois income tax on the compensation paid to A. However, X Company should,
				at A's request, withhold the State X income tax due on A's compensation
				pursuant to the State X withholding requirements on compensation paid to State
				X residents.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart S - REQUIREMENT AND AMOUNT OF WITHHOLDING › Section 100.7095 - Cross References

Current through Register Vol. 48, No. 28, July 12, 2024
See IITA Sections 1002(c) and 1002(d), the UPIA and 86 Ill.
				  Adm. Code 700 for penalties relating to the failure to deduct and withhold a
				  tax as required by IITA Section 701. See 86 Ill. Adm. Code
				  100.7120
				  for provisions relating to claiming exemption from withholding pursuant to a
				  reciprocal agreement.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart T - AMOUNT EXEMPT FROM WITHHOLDING › Section 100.7120 - Exempt Withholding Under Reciprocal Agreements (IITA Section 702)

Current through Register Vol. 48, No. 28, July 12, 2024
a) In general.
				Employees who are residents of a state with which a reciprocal agreement is in
				effect exempting residents of that state from withholding of Illinois tax on
				compensation paid in Illinois must file a signed certificate of their residency
				in order to receive the benefit of the exemption.
b) Form of residency certificate. Form
				IL-W-5-NR, Employee's Statement of Non-Residence in Illinois, is the form
				prescribed for the certificate required to be filed under this Section. The
				certificate shall be prepared in accordance with the instructions, and shall
				set forth fully and clearly the required data. Form IL-W-5-NR will be supplied
				to employers upon request to the Department. In lieu of the prescribed form of
				certificate, employers may prepare and use a form that contains the same
				information required in the prescribed form and, if not maintained in hardcopy,
				that meets the requirements of 86 Ill. Adm. Code
				100.9530(d).
c) Change in residency. An employee must
				notify his or her employer and file a new residency certificate or Illinois
				withholding exemption certificate, whichever is applicable, within ten days
				after his or her state of residency changes from the one named on the
				certificate.
d) Annual
				determination: effective date; duration of residency certificate. A certificate
				described under this Section shall be subject to the same rules applicable to a
				withholding exemption certificate under Section
				100.7110(e),
				(f) and (g).
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart U - INFORMATION STATEMENT › Section 100.7200 - Reports For Employee (IITA Section 703)

Current through Register Vol. 48, No. 28, July 12, 2024
a) In general. Every employer required to
				deduct and withhold tax under the Act from compensation of an employee, or who
				would have been required to deduct and withhold tax if the employee's properly
				claimed withholding exemption had not been in excess of compensation subject to
				withholding, must furnish to each such employee with respect to the
				compensation paid in Illinois by such employer during the calendar year, a
				statement in duplicate containing the following information:
1) The name, address and federal employer
				identification number of the employer;
2) The name, address and social security
				number of the employee;
3) The
				total amount of compensation paid in Illinois;
4) The total amount deducted and withheld as
				tax under IITA Section 701.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart V - EMPLOYER'S RETURN AND PAYMENT OF TAX WITHHELD › Section 100.7300 - Returns and Payments of Income Tax Withheld from Wages (IITA Sections 704 and 704A)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Quarterly
				Returns. Except as otherwise provided in Section
				100.7310
				or
				100.7350,
				every employer required to deduct and withhold tax on compensation paid in
				Illinois shall make a return for the first calendar quarter in which the tax is
				deducted and withheld and for each subsequent calendar quarter (whether or not
				compensation is paid in that quarter) until a final return is filed. (See IITA
				Sections 704(c) and 704A(b).) Each return required under this subsection must
				be made
in the form and manner required by the Department.
(IITA Sections 704(b) and 704A(b))
With respect to taxes withheld in
				2017 and subsequent calendar years, the Department may, by rule, provide that
				any return (including any amended return) and any W-2 Form due under this
				Section must be submitted on magnetic media or electronically.
(IITA
				Section 704A(f))
The due date for submitting W-2 Forms shall be as
				prescribed by the Department by rule.
(IITA Section 704A(f))
1) For calendar years after 2009 and prior to
				2017, payroll providers who withhold Illinois income tax for employers during
				the year and who are required to file federal withholding returns on magnetic
				media under
				26 CFR
				301.6011-2 shall file returns due under this
				subsection (a) with the Department using the same magnetic media used for their
				federal filing.
2) For calendar
				years after 2016, all employers shall file returns due under this subsection
				(a) with the Department electronically or using the same magnetic media used
				for their federal filing, provided that, upon petition by an employer, the
				Department may waive this requirement if the employer demonstrates that it does
				not have access to the Internet.
3)
				All other returns required under this subsection (a) may be filed with the
				Department at the address provided on the Form IL-941, Illinois Quarterly
				Withholding Income Tax Return, or its instructions.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart V - EMPLOYER'S RETURN AND PAYMENT OF TAX WITHHELD › Section 100.7310 - Returns Filed and Payments Made on Annual Basis (IITA Sections 704 and 704A)

Current through Register Vol. 48, No. 28, July 12, 2024
a) With respect to
				taxes withheld or required to be withheld prior to January 1, 2008:
1) In general. Effective January 1, 2005, if
				an employer had no obligation to deduct and withhold Illinois income tax in the
				previous calendar year or if the amount of tax deducted and withheld during the
				previous calendar year was less than $500 and, in either case, the amount that
				will be deducted and withheld in the current calendar year will be less than
				$500, the employer may file an annual return for the current calendar year or
				for any period for which a return is made as a final return. No application
				need be made to file an annual return. The return filed for such period shall
				report the amount of tax deducted and withheld during the period and not
				previously remitted. Form IL-941 is prescribed for making the return authorized
				under this subsection (a). An employer shall use Form W-3 to submit the
				information contained on the combined Form W-2, in the same manner as required
				under Section
				100.7300.
2) Duration of annual filing status.
				Authority to file a return pursuant to this Section shall remain in effect
				until that time during any calendar year when the amount of tax deducted and
				withheld equals or exceeds $500. When, during any calendar year, the amount
				deducted and withheld equals or exceeds $500, an employer must file a quarterly
				return, as required under Section
				100.7300(a),
				for the quarter in which that event occurs and for all subsequent quarters
				until the requirements of subsection (a)(1) are again met by the
				employer.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart V - EMPLOYER'S RETURN AND PAYMENT OF TAX WITHHELD › Section 100.7320 - Time for Filing Returns and Making Payments for Taxes Required to Be Withheld Prior to January 1, 2008 (IITA Section 704)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Quarterly return. Each return required
				under Section
				100.7300(a)
				 shall be filed on or before the last day of
				the first calendar month following the calendar quarter for which the return is
				made.
b) Quarter-monthly tax
				payments. Quarter-monthly periods end on the 7th,
				15th, 22nd, and last day
				of each month. Quarter-monthly forms required under Section
				100.7300(c)(1)
				 shall be filed on or before the third
				banking day following the close of the quarter-monthly period. Whenever a
				quarter-monthly payment is due that includes amounts withheld in a prior
				calendar quarter, separate quarter-monthly forms must be submitted. See the
				note in the example in subsection (d).
c) Monthly tax payments. Monthly returns and
				payments required by Section
				100.7300(c)(2)
				 shall be made on or before the
				15th day of the second and third months of each
				calendar quarter for amounts withheld during the first and second months of the
				quarter, respectively, and on or before the due date prescribed in subsection
				(a) for filing the return for the quarter for amounts withheld during the third
				month of the quarter. (See IITA Section 704(c).)
d) Example. The provisions of this Section
				with respect to taxes required to be withheld prior to January 1, 2008 can be
				partially illustrated as follows:
Withholding Period
Amount Withheld
Amount of Payment/Due
							 Date
Feb. 1-7
$ 900
Add to next period
Feb. 8-15
900
$1,800 by Feb. 18*
Feb. 16-22
1,010
$1,010 by Feb. 25*
Feb. 23-28
900
Add to next period
Mar. 1-7
0
$900 by Mar. 15*
Mar. 8-15
600
Add to next period
Mar. 16-22
600
$1,200 by Mar. 25*
Mar. 23-31
400
Add to next period
Apr. 1-7
800
$1,200 by Apr. 10*
NOTE: separate IL-501s must be used; one to report
							 the $400 withheld for the last quarter-monthly period of March, and the other
							 to report the $800 withheld for the first quarter-monthly period of
							 April.
Apr. 8-15
700
Add to next period
Apr. 16-22
200
Add to next period
April 23-30**
0
$900 to next period
May 1-7
110
$1,010 by May 10*
* With Form IL-501 (employee withholding).
** Form IL-941 (employee withholding) due April
							 30.
e)
				Extension of time for filing returns. An extension of time for filing the
				statements and returns required to be filed under this subsection shall be
				granted upon approval of a similar extension granted by the Internal Revenue
				Service (but in no event to exceed six months) for filing the federal
				statements. The extension shall be for the same period as granted by the
				Internal Revenue Service and shall be granted by the Department upon submission
				of a copy of the federal application and approval of an extension.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart V - EMPLOYER'S RETURN AND PAYMENT OF TAX WITHHELD › Section 100.7325 - Time for Filing Returns and Making Payments for Taxes Required to Be Withheld On or After January 1, 2008 (IITA Section 704A)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Quarterly return. Each return required
				under Section
				100.7300(a)
				shall be filed on or before the last day of the first calendar month following
				the calendar quarter for which the return is made. (See IITA Section
				704A(b).)
b) Monthly payments.
				Monthly payments required under Section
				100.7300(d)(2)
				are due on or before the 15th day of the month
				following the month in which the tax was withheld or required to be withheld.
				(See IITA Section 704A(c)(3).)
c)
				Semi-weekly payments.
1) Semi-weekly payments
				required under Section
				100.7300(d)(1)
				or
				100.7310(b)(2)(B)
				are due:
A) on or before each Friday of the
				calendar year, for taxes withheld or required to be withheld on the immediately
				preceding Saturday, Sunday, Monday or Tuesday;
B) on or before each Wednesday of the
				calendar year, for taxes withheld or required to be withheld on the immediately
				preceding Wednesday, Thursday or Friday. (See IITA Section
				704A(c)(1).)
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart V - EMPLOYER'S RETURN AND PAYMENT OF TAX WITHHELD › Section 100.7330 - Payment of Tax Required to be Shown Due on a Return (IITA Sections 704 and 704A)

Current through Register Vol. 48, No. 28, July 12, 2024
The amount of tax required to be shown to be due on each
				  return required to be filed under IITA Section 704 or 704A shall be due on or
				  before the date on which the return is required to be filed, except to the
				  extent that amount has been paid to the Department pursuant to a provision
				  requiring payment prior to that date.