reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart V - EMPLOYER'S RETURN AND PAYMENT OF TAX WITHHELD › Section 100.7340 - Correction of Underwithholding or Overwithholding (IITA Section 704)

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Underwithholding. If, as a result of underwithholding, a return is filed for a
				return period under this section and less than the correct amount of tax
				required to be deducted and withheld is reported on the return and paid to the
				Department, the employer shall report and pay the additional amount due by
				reason of the underwithholding on a return for any period in the calendar year
				in which the underwithholding occurred. An explanation must be attached to the
				return for the period in which the undercollection is corrected.
b) Overwithholding. If an employer deducts
				and withholds more than the correct amount of tax for a return period under
				this section and does not repay the overcollection before the time for filing
				the required return for the period and before the end of the calendar year, he
				must include the overcollection on the return required to be filed for the
				period in which the overcollection occurred. If the overwithholding is
				discovered in a subsequent return period under this section and within the same
				calendar year of the overwithholding, the employer may correct the error on a
				return to be filed for a period within the same calendar year if the amount of
				the overcollection is repaid during that period. An explanation must be
				attached to the return on which the error is corrected. Any repayment of an
				amount of overwithholding must be substantiated by a receipt from the employee
				showing the date and amount of repayment and kept as a part of the employer's
				records. (See 86 Ill. Adm. Code
				100.7080(b)
				for methods of repayment.)
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart V - EMPLOYER'S RETURN AND PAYMENT OF TAX WITHHELD › Section 100.7350 - Domestic Service Employment (IITA Sections 704 and 704A)

Current through Register Vol. 48, No. 28, July 12, 2024
a) On and after
				January 1, 1998, every employer who deducts and withholds or is required to
				deduct and withhold tax from a person engaged in domestic service employment,
				as that term is defined in IRC section 3510, may comply with the payment and
				reporting requirements of IITA Section 704 by filing an annual return and
				paying the taxes required to be deducted and withheld on or before the 15th day
				of the fourth month following the close of the employer's taxable year. (IITA
				Sections 704(e-5) and 704A(e))
b)
				All taxes withheld from compensation of domestic employees may be paid and
				reported under this provision, regardless of the amount of taxes withheld and
				regardless of whether the employer has other employees and must pay and report
				taxes withheld from their compensation under other provisions of IITA Sections
				704 and 704A.
c) Employers wishing
				to pay and report on an annual basis taxes withheld from domestic employees
				must use the Form IL-1040, Illinois Individual Income Tax Return, or such other
				form as may be required by the Department to report the Illinois income taxes
				withheld.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart V - EMPLOYER'S RETURN AND PAYMENT OF TAX WITHHELD › Section 100.7360 - Definitions and Special Provisions Relating to Reporting and Payment of Income Tax Withheld (IITA Sections 704 and 704A)

Current through Register Vol. 48, No. 28, July 12, 2024
For purposes of the provisions of IITA Sections 704 and
				  704A:
a) Date of withholding. Income
				tax is withheld on the date payment of compensation is made to the employee.
				(See IRS Revenue Ruling 74-126.)
EXAMPLE: An employer pays employees bi-monthly on the last
				  day of the month for services rendered through the
				  15th of the month and on the
				  15th of the month for services rendered from the
				  16th of the previous month through the end of the
				  previous month. Taxes withheld from compensation earned in the second half of
				  May and paid on June 15 are withheld on June 15 for purposes of determining
				  when the taxes must be reported and paid over to the Department.
b) Quarter-monthly period. A
				quarter-monthly period ends on the 7th,
				15th, 22nd and last day
				of each calendar month. (IITA Section 704(b)) These dates are not affected by
				weekends or holidays. That is, the 7th of a month is
				the end of a quarter-monthly period, even if it is a Saturday, Sunday or
				holiday.
c) Banking day. Saturdays,
				Sundays, legal holidays and local bank holidays are not banking days. (IITA
				Section 704(b))
d) Employer,
				employee and compensation. The term "employer" includes all persons required to
				withhold Illinois income tax; "employee" includes all persons from whom
				Illinois income tax is required to be withheld; and "compensation" includes all
				payments from which Illinois income tax is withheld or required to be withheld
				under IITA Section 711(a). For purposes of determining when monthly,
				quarter-monthly or semi-weekly payments must be made and whether an employer is
				required to pay by electronic funds transfer, the amount of tax withheld or
				required to be withheld by the employer shall include all taxes withheld or
				required to be withheld under Article 7 of the IITA, other than taxes withheld
				from domestic employees that are reported and paid pursuant to Section
				100.7350.
				(See IITA Section 711(a) and Section 2505-210 of the Department of Revenue Law
				[20 ILCS
				2505/2505-210 ].)
e) Look-back period. The term "look-back
				period" for a calendar year means the 12-month period ending June 30 of the
				preceding calendar year. For example, the look-back period for calendar 2008 is
				the period from July 1, 2006 through June 30, 2007.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart W - ESTIMATED TAX PAYMENTS › Section 100.8000 - Payment of Estimated Tax (IITA Section 803)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Requirement to Pay Estimated Tax. Every
				taxpayer other than an estate, trust, partnership, subchapter S corporation or
				farmer is required to pay estimated tax for the taxable year, in such amount
				and with such forms as the Department shall prescribe, if the amount payable as
				estimated tax can reasonably be expected to be more than:
1) $250 for taxable years ending before
				December 31, 2001 and $500 for taxable years ending on or after December 31,
				2001; or
2) $400 for corporations.
				(IITA Section 803(a))
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart W - ESTIMATED TAX PAYMENTS › Section 100.8010 - Failure to Pay Estimated Tax (IITA Sections 804 and 806)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Penalty Imposed. Except as otherwise
				provided, IITA Section 804(a) imposes a penalty, computed in the manner and at
				the rate prescribed under Section 3-3 of the Uniform Penalty and Interest Act,
				upon an underpayment of an installment of estimated tax. See 86 Ill. Adm. Code
				700.300
				for the penalty rates applicable to a particular taxable year.
b) Definitions. For purposes of this Section:
1) Underpayment. An underpayment of an
				installment of estimated tax means the excess of the required installment (as
				determined under subsection (d)) over the amount of that installment paid on or
				before the due date for that installment.
2) Tax. For purposes of this Section, the
				term "tax" means the total regular income tax and replacement tax imposed under
				IITA Section 201 for the taxable year, including the amount of any credit
				required to be recaptured under the IITA, less the amount of any credit allowed
				against that tax for the taxable year. Amounts withheld pursuant to IITA
				Article 7, or paid by or on behalf of the taxpayer on account of that tax,
				including a payment of estimated tax, shall not be considered a credit against
				that tax for purposes of this Section. (See IITA Section 804(g).)
3) The "tax shown on the taxpayer's return"
				shall be the amount of tax as shown on the original tax return for the taxable
				year (including any corrected return for the taxable year filed on or before
				the due date of the original return, including extensions). The "tax shown on
				the taxpayer's return" does not include the tax shown on an amended return
				filed subsequent to the due date of the original return for the taxable year,
				including extensions.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart X - COLLECTION AUTHORITY › Section 100.9000 - General Income Tax Procedures (IITA Section 901)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Collection procedure. The Illinois income
				tax system basically is one of self-assessment. In general, each person or
				taxpayer liable for tax is required to file a prescribed form of return showing
				the facts upon which tax liability may be determined and assessed; the taxpayer
				is required to compute the tax due on the return and make payment thereof on or
				before the due date for filing the return. If the taxpayer fails to pay all or
				any part of the tax when due, the Director, after assessment, issues to each
				person liable for any unpaid portion thereof, a notice and demand for payment
				at the place and time stated in the notice. The income tax is principally
				collected through witholding at the source or by payments of estimated tax
				required by law to be filed by certain individual and corporate taxpayers.
				Neither withholding nor payment of estimated tax relieves a taxpayer from the
				duty of filing an income tax return otherwise required.
1) Prior to January 1, 1994, IITA Section
				1003(a) provides that interest at the rate of 9% per annum (or at such adjusted
				rate as is established under Section 6621(b) of the Internal Revenue Code)
				shall be paid on unpaid amounts of tax imposed by the Act from the due date to
				the date paid; however, subsection (e) thereunder provides that, if a notice
				and demand for payment of an amount due is issued, interest shall not be
				imposed for the period after the date of such issuance if such amount is paid
				within ten days.
2) On and after
				January 1, 1994, IITA Section 1003(a) provides that interest shall be paid in
				the manner and at the rate prescribed in Section 3-2 of the UPIA for the period
				from such date to the date of payment of such amount. Section 3-2(c) of the
				UPIA provides that if notice and demand is made for the payment of any amount
				of tax due and if the amount due is paid within 30 days after the date of such
				notice and demand, interest on the amount so paid shall not be imposed for the
				period after the date of the notice and demand.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart X - COLLECTION AUTHORITY › Section 100.9010 - Collection Authority (IITA Section 901)

Current through Register Vol. 48, No. 28, July 12, 2024
In general. The Department shall collect the taxes imposed by
				  the Act and shall pay all monies received thereunder into the State Treasury as
				  provided by IITA Section 901.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart X - COLLECTION AUTHORITY › Section 100.9020 - Child Support Collection (IITA Section 901)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Effective January 1, 1996, the Department
				of Revenue has been given the statutory responsibility of collecting certain
				child support arrearages.
b) Upon
				certification of past due child support amounts from the Department of Public
				Aid, the Department of Revenue may collect the delinquency in any manner
				authorized for the collection of a delinquent personal income tax liability.
				[20 ILCS 2505/39b52 ]
1) The Department of
				Revenue will begin collection efforts with respect to child support arrearages
				only after the arrearages are certified to the Department of Revenue by the
				Department of Public Aid.
A) Child support
				arrearages certified to the Department of Revenue for collection are final
				arrearages. In other words, referrals will not be made to the Department of
				Revenue until the non-custodial parent has been afforded an opportunity to
				contest the amount of the arrearage through administrative and judicial means.
				The non-custodial parent who owes the arrearage has no right of hearing before
				the Department of Revenue.
B) The
				Department of Revenue lacks the statutory authority to begin collection
				activities on its own initiative with respect to a child support arrearage that
				has not been certified to the Department of Revenue by the Department of Public
				Aid.
C) The Department of Revenue
				has no authority to accept referrals for collection of past due child support
				from the public, from the courts, or from any other agency of local, state, or
				federal government other than the Department of Public Aid.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart Z - ASSESSMENT › Section 100.9200 - Assessment (IITA Section 903)

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				In general.
1) Returns.
A) The amount of tax shown to be due on a
				taxpayer's return shall be deemed assessed on the date of the filing of the
				return. If upon verifying the taxpayer's properly filed return the Department
				finds that it contains no tax computation or, upon verifying the tax
				computation on the return, finds that due to a mathematical error (see
				subparagraph (2) below) the amount of tax shown thereon is understated, it is
				to notify the taxpayer that the amount of tax or the additional amount required
				to correct the amount shown as tax, as the case may be, has been assessed and
				is due. The taxpayer has no right of protest against such notice inasmuch as it
				does not constitute a notice of deficiency within the meaning of that term as
				used in IITA Section 904. (See 86 Ill. Adm. Code
				100.9300.)
				With respect to tentative returns (Applications for Extension of Time to File
				(Form IL-505)) showing the amount properly estimated as the tax for the taxable
				year as provided in IITA Section 602(a):
i)
				the amount of properly estimated tax reported on a tentative return shall be
				deemed assessed on the filing date (the date payment is required)
				thereof,
ii) the payment of all or
				any part of such amount is in respect of and constitutes tax imposed by the Act
				payable into the General Revenue Fund in the State Treasury (and not a taxpayer
				deposit), and
iii) interest on any
				overpayment in accordance with 86 Ill. Adm. Code
				100.9400(c)
				 ).
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart Z - ASSESSMENT › Section 100.9210 - Waiver of Restrictions on Assessment (IITA Section 907)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Payment; Form IL-870. Whether or not a
				notice of deficiency has been issued, the taxpayer shall have the right at any
				time to waive the restrictions on assessment and collection of the whole or any
				part of any assessment proposed under the Act by properly executing and
				submitting Form IL-870. Also, payment (before a deficiency notice has been
				mailed) of tax in excess of that shown on the original return for any taxable
				year which has become assessed constitutes a waiver of restrictions on
				assessment and collection which will be taken into account in determining
				whether or not there is a deficiency for which a statutory notice must be
				issued, for example, payment of the additional amount due on an amended return
				showing an increase of tax, see IITA Section 903(a)(4). Payment of assessed tax
				stops the running of any interest imposed thereon under IITA Section 1003.
				Where an executed waiver on Form IL-870 (or Form IL-870 AD or Form IL-870 RH)
				is submitted without payment and a notice and demand for the tax is not issued
				by the Director or his delegate within 30 days thereafter, interest will not be
				imposed on the deficiency during the period beginning immediately after such
				30th day and ending with the date of the notice and demand; under the further
				provision in IITA Section 1003(e), neither will interest be imposed during the
				10-day period beginning with that date provided payment is made within that
				10-day period.
b) Form IL-870 AD;
				Form IL-870 RH. Although waiver of the restrictions on assessment and
				collection, by payment or the filing of Form IL-870, does not have the effect
				of a closing agreement (as does Form IL-870 AD) nor does it prevent expiration
				of the statute of limitations respecting certain adjustment items and issues
				(as does Form IL-870 RH) - see 86 Ill. Adm. Code
				100.9100,
				it does preclude a right to a formal hearing under IITA Section 902(b) unless
				thereafter the taxpayer files a claim for refund under IITA Section 909(d)
				which in whole or part becomes finally denied by the Department under IITA
				Sections 909(f) or 910(d).
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart AA - DEFICIENCIES AND OVERPAYMENTS › Section 100.9310 - Application of Tax Payments Within Unitary Business Groups (IITA Section 603)

Current through Register Vol. 48, No. 28, July 12, 2024
a) In general
1) This Section relates to the exercise of
				the election provided in IITA Section 603 with respect to overpayments and
				liabilities that arise as the result of:
A)
				the filing of an original return;
B) an assessment due to a mathematical
				error;
C) the filing of an amended
				return showing an increase in tax liability;
D) the filing of an amended return showing a
				decrease in tax liability which is approved by the Department;
E) the submission by a taxpayer of a signed
				Form IL-870 waiver of restrictions on assessment and collection under Section
				907 of the Act; and
F) the
				execution of a Form IL-870-AD pursuant to Section
				100.9000(c)(5)
				 of this Part.
IITA Section 603 was repealed by Public Act 88-195, which
				  also amended IITA Section 502(e) to require combined returns for taxable years
				  ending on or after December 31, 1993. No election under that Section may be
				  made with respect to taxable years ending on or after December 31, 1993.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart AA - DEFICIENCIES AND OVERPAYMENTS › Section 100.9330 - Further Notices of Deficiency Restricted (IITA Section 906)

Current through Register Vol. 48, No. 28, July 12, 2024
a) No further
				notice after final department decision or prior notice. The Department shall
				not issue a further or additional notice of deficiency for any taxable year for
				which a notice of deficiency previously was issued under IITA Section 904, a
				protest thereto was filed under Sections 908(a) or 910(a), and the Department's
				decision on such protest has become final under IITA Sections 908(d) or 910(d),
				except in the case of fraud (see IITA Section 1002(b)), mathematical error (see
				IITA Section 903(a)(1) and (2)), or federal change (see IITA Sections 905(d),
				(e), or (g)).
b) Separate notices
				to be issued for each return required for the taxable year. With respect to
				liability for tax imposed by the Act for which the taxpayer is required under
				IITA Section 501 et seq., to file more than one return, a separate notice of
				deficiency may be issued for each such return for the taxable year. For
				example, for a particular taxable year, if a taxpayer is required to file both
				the Individual Income Tax Return Form IL-1040, and the Employer's Quarterly
				Illinois Withholding Tax Return Form IL-941, such returns may be examined
				separately at different times and if adjustments and a Revenue Auditor's Report
				result which are not agreed to a notice of deficiency may be issued with
				respect to each such return. The above notwithstanding, the Department to the
				extent it deems feasible shall encourage the making of comprehensive audits,
				i.e., the examination at one time of all or as many as practicable of a
				taxpayer's Illinois tax returns required respecting liability for any
				particular taxable year under all taxing statutes administered by the
				Department.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart BB - CREDITS AND REFUNDS › Section 100.9400 - Credits and Refunds (IITA Section 909)

Current through Register Vol. 48, No. 28, July 12, 2024
a) In General. The Department, within the
				applicable period of limitations for a claim for refund, shall credit the
				amount of any overpayment, including interest allowed on the overpayment,
				against any liability for tax imposed under the IITA or any other Act
				administered by the Department on the person who made the overpayment, and it
				shall refund the balance to that person. (See IITA Section 909(a) and Section
				2505-275 of the Department of Revenue Law [
				20 ILCS
				2505/2505-275 ].)
b) Credit Against the Estimated Tax. A
				taxpayer may elect to have any portion of any overpayment shown on an original
				or amended return for a taxable year applied against the taxpayer's estimated
				tax liability for a subsequent taxable year. (See IITA Section 909(b).) The
				election shall be made on the form and in the manner prescribed by the
				Department, must be made before the overpayment is refunded, and, once an
				election is made, the election may not be altered to reduce the amount credited
				or to change the taxable year to which the credit will be applied. After an
				election is properly made, the Department shall apply the amount of the
				overpayment against other liabilities of the taxpayer and apply only the
				balance (if any) of the overpayment against the taxpayer's estimated tax
				liability. (See IITA Section 909(a) and (b) and Section 2505-275 of the
				Department of Revenue Law .) If the Department applies a portion of an
				overpayment against a liability other than the estimated tax liability to which
				the taxpayer elected to apply the overpayment or refunds some or all of the
				amount that the taxpayer had elected to apply against its estimated tax
				liability, the Department shall issue a notice to the taxpayer stating the
				amount so applied and the liability against which the application was made, or
				the amount so refunded, and no penalty for late payment of estimated taxes
				under IITA Section 804(a) or for underpayment of tax under IITA Section 1005(a)
				shall accrue with respect to the amount so applied or refunded, if the full
				amount of the liability that was due as of the date the notice was issued is
				paid prior to the later of:
1) 30 days after
				the date the notice is issued; or
2) the unextended due date of the return for
				the year for which the estimated tax credit was requested or, in the case of
				the penalty for late payment of estimated taxes, the due date of the next
				estimated tax installment (if any) due after the date of the notice.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart BB - CREDITS AND REFUNDS › Section 100.9410 - Limitations on Claims for Refund (IITA Section 911)

Current through Register Vol. 48, No. 28, July 12, 2024
a) In General
Except as otherwise provided in this Section,
no
				  credit or refund shall be allowed or made with respect to any year unless a
				  claim for refund or credit was filed on or before the later of
:
1)
3 years after the date the return
				was filed or, in the case of returns required under Article 7 of the IITA
				respecting any amounts withheld as tax, the 15th day of the 4th month following
				the close of the calendar year in which such withholding was made);
				or
2)
one year
				after the date the tax was paid.
(IITA Section 911(a))
3) Consequence of Failing to File a Timely
				Refund Claim. In the case of any overpayment, the Department may grant a credit
				or refund of the amount of such overpayment within the applicable period of
				limitations for a claim for refund (see IITA Section 909(a)). Failure of a
				taxpayer to file a refund claim before the expiration of the limitations period
				for a taxable year precludes the Department from granting a credit or refund of
				any overpayment for that taxable year after the date of expiration. The
				expiration of the period for filing a refund claim for a taxable year:
A) does not preclude the taxpayer from
				asserting any adjustments to net income or credits to the extent the
				adjustments would reduce or eliminate a deficiency asserted by the Department
				for that taxable year. (See Lewis v. Reynolds, 284 U.S. 281 (1932).)
B) does not preclude the taxpayer from
				asserting any adjustments to the amount of net loss incurred under IITA Section
				207 (except as provided in subsection (g) of this Section for losses incurred
				in taxable years ending prior to December 31, 2002) or of any credit earned in
				that taxable year, or the amount of net loss deduction under IITA Section 207
				or of any credit carryforward that is properly taken in that taxable year, in
				order to compute the amount of net loss deduction or credit carryforward
				allowable in another taxable year, so that a timely refund claim may be filed
				for that other taxable year or a deficiency for that other taxable year may be
				reduced or eliminated. (Springfield Street Railway Co. v. U.S., 312 F.2d 754
				(Ct. Cl. 1963).)
4) See
				subsection (e) regarding when a return is deemed filed.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart BB - CREDITS AND REFUNDS › Section 100.9420 - Recovery of Erroneous Refund (IITA Section 912)

Current through Register Vol. 48, No. 28, July 12, 2024
a) An erroneous refund shall be considered a
				deficiency of tax on the date made, and shall be deemed assessed and shall be
				collected as provided in IITA Sections 903 and 904 (see 86 Ill. Adm. Code
				100.9200,
				100.9300
				and
				100.9320(g)
				 ).
b) Prior to January 1, 1994, IITA Section
				1003(f) provides that any portion of the tax imposed by the Act or any interest
				or penalty which has been erroneously refunded and which is recoverable by the
				Department shall bear interest at the rate of 9% per annum (or at such adjusted
				rate as is established under Section 6621(b) of the Internal Revenue Code) from
				the date of payment of such refund.
c) Effective January 1, 1994, Section 3-2(e)
				of the Uniform Penalty and Interest Act provides that, [a]ny portion of the tax
				imposed by an Act to which this Act is applicable or any interest or penalty
				which has been erroneously refunded and which is recoverable by the Department
				shall bear interest from the date of payment of the refund. However, no
				interest will be charged if the erroneous refund is for an amount less than
				$500 and is due to a mistake of the Department.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart CC - INVESTIGATIONS AND HEARINGS › Section 100.9500 - Access to Books and Records (IITA Section 913)

Current through Register Vol. 48, No. 28, July 12, 2024
All books and records and other papers and documents which
				  are required by the Act to be kept shall, at all times during the business
				  hours of the day, be subject to inspection by the Department or its duly
				  authorized agents and employees.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart CC - INVESTIGATIONS AND HEARINGS › Section 100.9510 - Taxpayer Representation and Practice Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
The rules pertaining to taxpayer representation at hearings
				  before the Department are found at 86. Ill. Adm. Code 200.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart CC - INVESTIGATIONS AND HEARINGS › Section 100.9520 - Conduct of Investigations and Hearings (IITA Section 914)

Current through Register Vol. 48, No. 28, July 12, 2024
The rules of Practice and Procedure for Hearings before the
				  Illinois Department of Revenue are found at 86 Ill. Adm. Code
				  200.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart CC - INVESTIGATIONS AND HEARINGS › Section 100.9530 - Books and Records

Current through Register Vol. 48, No. 28, July 12, 2024
a) General
				Requirements
1) Every person liable for any
				tax imposed by the IITA shall keep books and records sufficient to substantiate
				all information reported on any income tax, withholding or information return
				required under the IITA.
2) The
				books or records required by this Section shall be kept at all times available
				for inspection by the Department or its duly authorized agents and employees,
				and shall be retained so long as the contents may become material in the
				administration of the IITA. Such books and records must be kept in the English
				language. If a person retains records required to be retained by this Part in
				both machine-sensible and hardcopy formats, the person shall, upon request,
				make the records available to the Department in machine-sensible
				format.
3) The Department may
				require any person, by notice served upon him, to make returns, render
				statements, or keep specific records as will enable the Department to determine
				whether such person is liable for tax under the IITA and the correct amount of
				the tax.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart EE - DEFINITIONS › Section 100.9720 - Nexus

Current through Register Vol. 48, No. 28, July 12, 2024
a) IITA Section
				201(a) imposes the Illinois Income Tax, a tax measured by net income, on
				individuals, corporations, trusts and estates for the privilege of earning or
				receiving income in or as a resident of this State. IITA Section 201(c) imposes
				a second tax measured by net income, the Personal Property Tax Replacement
				Income Tax, on corporations, partnerships and trusts for the privilege of
				earning or receiving income in or as a resident of this State. In general, a
				resident of this State will always be subject to these taxes. Activity
				conducted in interstate commerce may establish sufficient nexus with Illinois
				to permit imposition of these taxes on a non-resident taxpayer, as well, when
				the non-resident earns or receives income in this State within the meaning of
				the IITA. Complete Auto Transit, Inc. v. Brady, 430 U.S. 274, 97 S. Ct. 1076
				(1977); Quill v. North Dakota, 504 U.S. 298, 112 S. Ct. 1904 (1992). However,
				the fact that Article 3 of the IITA requires a non-resident taxpayer to
				allocate or apportion income to this State does not create a presumption that
				the taxpayer has nexus.
b)
				Standards for determining sufficient tax nexus are found in federal statutes
				regulating interstate commerce, in United States Constitutional jurisprudence,
				and in Illinois tax statutes.
c)
				The scope of federal statutes limiting nexus for imposition of Illinois income
				and replacement taxes are described in this subsection (c):
1)Public Law 86-272. In 1959, Congress
				enacted PL 86-272 (
				15 USC
				381 -
				384 ), which
				prohibits states and their political subdivisions from imposing a net income
				tax on nonresident taxpayers who operate primarily in interstate commerce and
				whose activity within a state is limited. PL 86-272 provides in pertinent part:
A) No state or political subdivision thereof
				shall have the power to impose . . . a net income tax on the income derived
				within such state by any person from interstate commerce if the only business
				activities within such state by or on behalf of such person during such taxable
				year are either, or both of the following:
i)
				the solicitation of orders by such person, or his representative, in such state
				for sales of tangible personal property, which orders are sent outside the
				state for approval or rejection, and, if approved, are filled by shipment or
				delivery from a point outside the state; and
ii) the solicitation of orders by such
				person, or his representative, in such state in the name of or for the benefit
				of a prospective customer of such person, if orders by such customer to such
				person to enable such customer to fill orders resulting from such solicitation
				are orders described in subsection (c)(1)(A)(i).
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart EE - DEFINITIONS › Section 100.9730 - Investment Partnerships (IITA Section 1501(a)(11.5))

Current through Register Vol. 48, No. 28, July 12, 2024
a) For taxable years ending on or after
				December 31, 2004, an "investment partnership" is exempt from Illinois income
				taxation. (IITA Section 205(b)) The term "investment partnership" means any
				entity that is treated as a partnership for federal income tax purposes and
				that meets each of the following requirements:
1) No less than 90% of the partnership's cost
				of its total assets consists of qualifying investment securities, deposits at
				banks or other financial institutions, and office space and equipment
				reasonably necessary to carry on its activities as an investment partnership.
				(IITA Section 1501(a)(11.5 )(A)(i)) The "asset test" under this subsection
				(a)(1) is applied for each taxable year by computing the percentage of the
				partnership's cost of its total assets that consists of qualifying investment
				securities, deposits at banks or financial institutions, and office space and
				equipment as of the beginning of the taxable year and as of the end of each
				month of the taxable year, and then computing the average of those percentages;
				and
2) No less than 90% of its
				gross income consists of interest, dividends, and gains from the sale or
				exchange of qualifying investment securities. (IITA Section
				1501(a)(11.5)(A)(ii)) The "gross income test" under this subsection (a)(2) is
				computed separately for each taxable year on the basis of gross income for the
				entire taxable year, determined using the method of accounting used for federal
				income tax purposes for the taxable year; and
3) The partnership is not a dealer in
				qualifying investment securities. (IITA Section 1501(a)(11.5)(A)(iii))
A) A partnership is a dealer in qualifying
				investment securities if it regularly purchases qualifying investment
				securities from or sells securities to customers in the ordinary course of a
				trade or business or regularly offers to enter into, assume, offset, assign or
				otherwise terminate positions in qualifying investment securities with
				customers in the ordinary course of a trade or business. (IRC Section
				475(c)(1))
B) A partnership that,
				at any time during a taxable year, holds or derives gross income from any
				qualifying investment security in which it is a dealer shall not qualify as an
				investment partnership for that taxable year.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart EE - DEFINITIONS › Section 100.9750 - Corporation, Subchapter S Corporation, Partnership and Trust Defined (IITA Section 1501)

Current through Register Vol. 48, No. 28, July 12, 2024
a) In general.
				IITA Section 102 provides that, except as otherwise expressly provided or
				clearly appearing from the context, any term used in the IITA shall have the
				same meaning as when used in a comparable context in the United States Internal
				Revenue Code of 1954 or any successor law or laws relating to federal income
				taxes and other provisions of the statutes of the United States relating to
				federal income taxes as such Code, laws and statutes are in effect for the
				taxable year.
b) Corporations. The
				term "corporation" includes associations, joint stock companies, insurance
				companies and cooperatives. Any entity, including a limited liability company
				formed under the Illinois Limited Liability Company Act [805 ILCS 180 ], shall
				be treated as a corporation if it is so classified for federal income tax
				purposes. (IITA Section 1501(a)(4))
1)
										26
				USC 7701(a)(3) defines
				"corporation" to include associations, joint stock companies, and insurance
				companies. This definition is identical to the definition in IITA Section
				1501(a)(4), except that the IITA definition includes cooperatives. Accordingly,
				any entity treated as a corporation for federal income tax purposes must be
				treated as a corporation for all purposes of the IITA, and no entity (other
				than a cooperative) that is not treated as a corporation for federal income tax
				purposes may be treated as a corporation for purposes of the IITA. Thus, any
				entity electing to be taxed as a corporation under 26 CFR 301.7701(a) is a
				corporation for all purposes of the IITA, and any entity that elects not to be
				treated as a corporation separate and distinct from its owners is not a
				corporation separate and distinct from its owners. For example:
A) An entity that has elected to be
				disregarded as an entity separate from its corporate owner for any federal
				income tax purpose pursuant to
				26 CFR
				301.7701-3(a) and its
				corporate owner are a single corporation for the equivalent purpose of the
				IITA.
B) An entity eligible to
				elect treatment as a corporation under
				26 CFR
				301.7701-3(a) is deemed to
				have elected to be treated as a corporation if it elects to be treated as a
				real estate investment trust (REIT) under IITA Section 856(c)(1). (See 26 CFR
				301.7701(c)(1)(v)(B).) Pursuant to
				26 USC
				856(i), the separate
				existence of a qualified REIT subsidiary is ignored, and its assets,
				liabilities and other items are deemed to belong to the REIT that owns the
				subsidiary. Accordingly, a REIT and its qualified REIT subsidiaries are a
				single corporation for all purposes of the IITA.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart FF - LETTER RULING PROCEDURES › Section 100.9800 - Letter Ruling Procedures

Current through Register Vol. 48, No. 28, July 12, 2024
a) For
				Department rules concerning Private Letter Rulings, see 2 Ill. Adm. Code
				1200.
b) For Department rules
				concerning the binding effect of Private Letter Rulings, see 2 Ill. Adm. Code
				1200.
c) For Department rules
				concerning the recission of Private Letter Rulings, see 2 Ill. Adm. Code
				1200.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart GG - MISCELLANEOUS › Section 100.9900 - Tax Shelter Voluntary Compliance Program

Current through Register Vol. 48, No. 28, July 12, 2024
a) Section 35-5(a) of the Tax Shelter
				Voluntary Compliance Law [35
				ILCS 20/35-5(a) ] provides that the
				Department shall establish and administer a tax shelter Voluntary Compliance
				Program as provided in this Section for eligible taxpayers subject to tax under
				the Illinois Income Tax Act. The tax shelter voluntary compliance program shall
				be conducted from October 15, 2004 to January 31, 2005 and shall apply to tax
				liabilities under Section 201 of the Illinois Income Tax Act attributable to
				the use of tax avoidance transactions for taxable years beginning before
				January 1, 2004. The Voluntary Compliance Program provides for abatement of
				penalties that would otherwise be imposed on underpayment or underreporting of
				Illinois income tax liabilities attributable to participation in tax shelters.
				The Tax Shelter Voluntary Compliance Law directs the Department to adopt rules,
				issue forms and instructions, and take such other actions as it deems necessary
				to implement the provisions of the Voluntary Compliance Program.
b) Definitions. For purposes of this Section:
1) Tax Avoidance Transaction. Section 35-10
				of the Tax Shelter Voluntary Compliance Law [35 ILCS
				20/35-10 ] provides that "tax avoidance transaction"
				means any plan or arrangement devised for the principal purpose of avoiding
				federal income tax. Tax avoidance transactions include, but are not limited to,
				"listed transactions" as defined in Treasury Regulations Section 1.6011
				-4(b)(2).
2) Eligible Liability
A) "Eligible Liability" means the excess, if
				any, of:
i) the Illinois income tax liability
				for a taxable year properly computed without allowing the net tax benefits of
				any tax avoidance transaction, over
ii) the Illinois income tax liability for
				that taxable year properly computed allowing the tax benefits of any tax
				avoidance transactions in which the taxpayer participated.
B) The Illinois income tax liabilities under
				subsection (b)(2)(A)(i) shall be computed without allowing the net tax benefits
				of any tax avoidance transaction for the taxable year at issue, whether or not
				such benefits are ultimately determined to be allowable and without allowing
				any benefits in the taxable year at issue that result from tax avoidance
				transactions in which the taxpayer participated in other tax years, such as,
				for example, by increasing any Illinois net loss or credit available to carry
				over into the taxable year at issue.
3) Voluntary Compliance Program Period. The
				"Voluntary Compliance Program Period" is October 15, 2004 through January 31,
				2005, inclusive.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart GG - MISCELLANEOUS › Section 100.9910 - State Tax Preparer Oversight Act [35 ILCS 35]

Current through Register Vol. 48, No. 28, July 12, 2024
a) Definitions
1) Income Tax Return Preparer
A) The term "income tax return preparer"
				means
any person who prepares for compensation, or who employs one or
				more persons to prepare for compensation, any return of tax imposed by the IITA
				or any claim for refund of tax imposed by the IITA. The preparation of a
				substantial portion of a return or claim for refund shall be treated as the
				preparation of that return or claim for refund
. (IITA Section
				1501(a)(26)(A))
B)
A person
				is not an income tax return preparer if all he or she does is the
				following
:
i)
furnish
				typing, reproducing, or other mechanical assistance
;
ii)
prepare returns or claims for
				refunds of the employer by whom he or she is regularly and continuously
				employed
;
iii)
prepare as a fiduciary returns or claims for refunds for any person;
				or
iv)
prepare
				claims for refunds for a taxpayer in response to a notice of deficiency issued
				to that taxpayer or in response to any waiver of restriction after the
				commencement of an audit of that taxpayer or of another taxpayer if a
				determination in the audit of the other taxpayer directly or indirectly affects
				the tax liability of the taxpayer whose claims he or she is preparing.
(IITA Section 1501(a)(26)(B))
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart GG - MISCELLANEOUS › Appendix A - Business Income of Persons Other Than Residents (Repealed) › Table B - Example of Unitary Business Apportionment for Groups Which Include Members Using Three-Factor and Single-Factor Formulas (Repealed)

Current through Register Vol. 48, No. 28, July 12, 2024
Illinois Administrative Code › Title 86 - REVENUE › Part 105 - ELECTRONIC FILING OF ILLINOIS INDIVIDUAL INCOME TAX RETURNS › Subpart A - ELECTRONIC RETURNS › Section 105.100 - Composition of an Electronic Return

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Except as provided in subsection (d), an electronic return consists of data
				transmitted to the Department electronically, and paper documents that contain
				information which cannot be electronically transmitted or are requested for
				verification; for example, taxpayer signatures and Forms W-2. In total,
				electronic returns contain the same information as traditionally filed paper
				documents.
b) The following forms
				and schedules can be transmitted electronically:
1) IL-1040 Illinois Individual Income Tax
				Return,
2) Schedule NR Nonresident
				and Part-Year Resident Computation of Illinois Tax (Individual),
3) W-2 Wage and Tax Statement,
4) W-2G Statement for Certain Gambling
				Winnings,
5) 1099-R Total
				Distributions from Profit-sharing, Retirement Plans, Individual Retirement
				Arrangements, Insurance Contracts, Etc.,
6) US 1040 or 1040A U.S. Individual Income
				Tax Return, and
7) US Schedule B or
				Schedule 1 Interest and Dividend Income.
Illinois Administrative Code › Title 86 - REVENUE › Part 105 - ELECTRONIC FILING OF ILLINOIS INDIVIDUAL INCOME TAX RETURNS › Subpart A - ELECTRONIC RETURNS › Section 105.110 - Exclusions from Electronic Filing

Current through Register Vol. 48, No. 28, July 12, 2024
The following types of returns are excluded from electronic
				  filing:
a) Returns from individuals or
				firms who have not been accepted as electronic return originators (EROs) or
				transmitters (see Section
				105.200
				);
b) Returns requiring forms or
				schedules not listed in Section
				105.100(b).
				These exclusions can be identified by amounts on the following IL-1040 return
				lines:
1) Other Subtractions
2) Credit for Taxes Paid to Other
				States
3) Tax Credits from Schedule
				1299-C
4) IL-2210
				Penalty;
Illinois Administrative Code › Title 86 - REVENUE › Part 105 - ELECTRONIC FILING OF ILLINOIS INDIVIDUAL INCOME TAX RETURNS › Subpart A - ELECTRONIC RETURNS › Section 105.120 - Where to Send Electronic Returns

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Electronic IL-1040 returns will be transmitted to the communications processor
				at the Illinois Department of Revenue in Springfield, Illinois. The telephone
				number will be provided to accepted transmitters as the taxpayer signature in
				lieu of the signature on Form IL-8453. No paper Form IL-8453 is required to be
				completed for an on-line return.
b)
				When requested, Forms IL-8453 and attachments for accepted electronic IL-1040
				returns must be mailed to:
Regular Mail
or
Overnight Mail
Illinois Dept. of Revenue
Illinois Dept. of Revenue
Exception Processing Division
Exceptions Processing
P.O. Box 19479
Division Mail Code 2-221
Springfield IL 62794-9479
101 W. Jefferson St.
Springfield IL 62702
Illinois Administrative Code › Title 86 - REVENUE › Part 105 - ELECTRONIC FILING OF ILLINOIS INDIVIDUAL INCOME TAX RETURNS › Subpart B - ELECTRONIC FILING PARTICIPANTS › Section 105.200 - Categories of Electronic Filers

Current through Register Vol. 48, No. 28, July 12, 2024
Participants in electronic filing are categorized as
				  follows:
a) Electronic Return
				Originator (ERO) - a firm, organization, or individual who deals directly with
				the taxpayer and who:
1) Prepares a tax
				return or collects a prepared tax return for the purpose of having an
				electronic return produced; and
2)
				Obtains the taxpayer's signature on Form IL-8453, Individual Income Tax
				Electronic Filing Declaration.