Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart E - RETURNS › Section 130.535 - Payment of the Tax, Including Quarter Monthly Payments in Certain Instances

Current through Register Vol. 48, No. 28, July 12, 2024
a) Except as noted
				hereinafter, at the same time that a tax return required by the provisions of
				the Act is filed with the Department, the taxpayer shall pay the tax that is
				due with such return to the Department.
b) Before October 1, 2000, if the taxpayer's
				average monthly tax liability to the Department under the Retailers' Occupation
				Tax Act, the Use Tax Act, the Service Occupation Tax Act, the Service Use Tax
				Act, excluding any liability for prepaid sales tax to be remitted in accordance
				with Section 2d of the Act, was $10,000 or more during the preceding 4 complete
				calendar quarters, he shall file a return with the Department each month by the
				20th day of the month next following the month
				during which such tax liability is incurred and shall make payments to the
				Department on or before the 7th,
				15th, 22nd and last day
				of the month during which such liability is incurred. If the month during which
				such tax liability is incurred begins on or after January 1, 1988 and prior to
				January 1, 1989, each payment shall be in an amount equal to 22.5 % of the
				taxpayer's actual liability for the month or 25% of the taxpayer's liability
				for the same calendar month of the preceding year. If the month during which
				such tax liability is incurred begins on or after January 1, 1989, and prior to
				January 1, 1996, each payment shall be in an amount equal to 22.5% of the
				taxpayer's actual liability for the month or 25% of the taxpayer's liability
				for the same calendar month of the preceding year or 100% of the taxpayer's
				actual liability for the quarter monthly reporting period. If the month during
				which such tax liability is incurred begins on or after January 1, 1996, each
				payment shall be in an amount equal to 22.5% of the taxpayer's actual liability
				for the month or 25% of the taxpayer's liability for the same calendar month of
				the preceding year. The amount of such payments shall be credited against the
				final tax liability of the taxpayer's return for that month. Prior to January
				1, 1999, if any such payment is not paid at the time or in the amount required
				in this subsection, then the taxpayer's 2%, 2.1 % or
				1.75 %
				vendors' discount shall be reduced by 2%, 2.1% or 1.75% of the difference
				between the minimum amount due as a payment and the amount of such quarter
				monthly payment actually and timely paid, and the taxpayer shall be liable for
				penalties and interest on such difference except insofar as the taxpayer has
				previously made payments for that month to the Department in excess of the
				minimum payments previously due as provided in this Section. Beginning on and
				after January 1, 1999, if any such payment is not paid at the time or in the
				amount required in this subsection, then the taxpayer shall be liable for
				penalties and interest on the difference between the minimum amount due as a
				payment and the amount of such quarter monthly payment actually and timely
				paid, except insofar as the taxpayer has previously made payments for that
				month to the Department in excess of the minimum payments previously due as
				provided in this Section.
On and after October 1, 2000, if the taxpayer's average
				  monthly tax liability to the Department under the Act, the Use Tax Act, the
				  Service Occupation Tax Act, and the Service Use Tax Act, excluding any
				  liability for prepaid sales tax to be remitted in accordance with Section 2d of
				  the Act, was $20,000 or more during the preceding 4 complete calendar quarters,
				  he shall file a return with the Department each month by the 20th day of the
				  month next following the month during which such tax liability is incurred and
				  shall make payment to the Department on or before the 7th, 15th, 22nd and last
				  day of the month during which such liability is incurred. (Section 3 of the
				  Act)
c) Before October 1,
				2001, without regard to whether a taxpayer is required to make quarter monthly
				payments as specified above, any taxpayer who is required by Section 2d of this
				Act to collect and remit prepaid taxes and has collected prepaid taxes which
				average in excess of $25,000 per month during the preceding 2 complete calendar
				quarters, shall file a return with the Department as required by Section 2f and
				shall make payments to the Department on or before the 7th, 15th, 22nd and last
				day of the month during which such liability is incurred. If the month during
				which such tax liability is incurred begins on or after January 1, 1987, each
				payment shall be in an amount equal to 22.5% of the taxpayer's actual liability
				for the month or 26.25 % of the taxpayer's liability for the same calendar
				month of the preceding year. The amount of such quarter monthly payments shall
				be credited against the final tax liability of the taxpayer's return for that
				month filed under this Section or Section 2f, as the case may be. Once
				applicable, the requirement of the making of quarter monthly payments to the
				Department pursuant to this paragraph shall continue until such taxpayer's
				average monthly prepaid tax collections during the preceding 2 complete
				calendar quarters is $25,000 or less. If any such quarter monthly payment is
				not paid at the time or in the amount required, the taxpayer shall be liable
				for penalties and interest on such difference, except insofar as the taxpayer
				has previously made payments for that month in excess of the minimum payments
				previously due. (Section 3 of the Act)
On and after October 1, 2001, without regard to whether a
				  taxpayer is required to make quarter monthly payments as specified above, any
				  taxpayer who is required by Section 2d of the Act to collect and remit prepaid
				  taxes and has collected prepaid taxes that average in excess of $20,000 per
				  month during the preceding 4 complete calendar quarters shall file a return
				  with the Department as required by Section 2f and shall make payments to the
				  Department on or before the 7th, 15th, 22nd and last day of the month during
				  which the liability is incurred. Each payment shall be in an amount equal to
				  22.5% of the taxpayer's actual liability for the month or 25% of the taxpayer's
				  liability for the same calendar month of the preceding year. The amount of the
				  quarter monthly payments shall be credited against the final tax liability of
				  the taxpayer's return for that month filed under this Section or Section 2f of
				  the Act, as the case may be. Once applicable, the requirement of the making of
				  quarter monthly payments to the Department pursuant to this paragraph shall
				  continue until the taxpayer's average monthly prepaid tax collections during
				  the preceding 4 complete calendar quarters (excluding the month of highest
				  liability and the month of lowest liability) is less than $19,000 or until such
				  taxpayer's average monthly liability to the Department as computed for each
				  calendar quarter of the 4 preceding complete calendar quarters is less than
				  $20,000. If any such quarter monthly payment is not paid at the time or in the
				  amount required, the taxpayer shall be liable for penalties and interest on
				  such difference, except insofar as the taxpayer has previously made payments
				  for that month in excess of the minimum payments previously due. (Section 3 of
				  the Act)
d) If any such
				payment or deposit provided for herein exceeds the taxpayer's present and
				probable future liabilities under the Retailers' Occupation Tax Act, the Use
				Tax Act, the Service Occupation Tax Act and the Service Use Tax Act, the
				Department shall, if requested by the taxpayer, issue to the taxpayer a credit
				memorandum, which may be submitted by the taxpayer to the Department in payment
				of tax liability subsequently to be remitted by the taxpayer to the Department
				or be assigned by the taxpayer to a similar taxpayer under the Retailers'
				Occupation Tax Act, the Use Tax Act, the Service Occupation Tax Act or the
				Service Use Tax Act. If no such request is made, the taxpayer may credit such
				excess payment against tax liability subsequently to be remitted to the
				Department under the Act, the Use Tax Act, the Service Occupation Tax Act or
				the Service Use Tax Act. If the Department subsequently determines that all or
				any part of the credit taken was not actually due to the taxpayer, the
				taxpayer's 2.1% and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
				of the difference between the credit taken and that actually due, and that
				taxpayer shall be liable for penalties and interest on such
				difference.
e) For the purposes of
				this Section, the phrase "preceding 4 complete calendar quarters" means the
				preceding 4 complete calendar quarters for which returns would have been filed
				or should have been filed for the last month of the 4 quarter period since,
				until then, the making of the required computations for the 4 quarter period
				would be impossible. For example, the preceding 4 complete calendar quarters
				with reference to a November 1, 1976, date would actually have ended June 30,
				1976, since most returns for the last month of that 4 quarter period would not
				have to have been filed until July 31, 1976, and the preceding 4 complete
				calendar quarters with reference to a July 1, 1977, date would actually end
				March 31, 1977, since most returns for the last month of that 4 quarter period
				would not have to be filed until April 30, 1977. The calendar quarters are
				January through March, April through June, July through September and October
				through December.
f) Beginning
				October 1, 1993, a taxpayer who has an average monthly tax liability of
				$150,000 or more shall make all payments required by rules of the Department
				(see 86 Ill. Adm. Code 750 "Payment of Taxes by Electronic Funds Transfer") by
				electronic funds transfer. Beginning October 1, 1994, a taxpayer who has an
				average monthly tax liability of $100,000 or more shall make all payments
				required by rules of the Department by electronic funds transfer. Beginning
				October 1, 1995, a taxpayer who has an average monthly tax liability of $50,000
				or more shall make all payments required by rules of the Department by
				electronic funds transfer.
g)
				Beginning October 1, 2000, a taxpayer who has an annual tax liability of
				$200,000 or more shall make all payments required by rules of the Department by
				electronic funds transfer (see 86 Ill. Adm. Code 750). The term "annual tax
				liability" shall be the sum of the taxpayer's liabilities under the Retailers'
				Occupation Tax Act, and all other State and local occupation and use tax laws
				administered by the Department, for the immediately preceding calendar year.
				(Section 3 of the Act)