Current through Register Vol. 48, No. 38, September 20, 2024
a) Income Tax
Payments
1) Beginning on October 1, 1993,
certain withholding tax payments and estimated income tax payments will be
required to be paid by electronic funds transfer. The threshold amounts are set
by law, change over time, and are detailed below.
2)
Beginning on October 1, 1993, a
taxpayer who has an average monthly tax liability of $150,000 or more under
Article 7 of the Act shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1, 1993, a taxpayer
who has an average quarterly estimated tax payment obligation of $450,000 or
more under Article 8 of the Act shall make all payments required by rules of
the Department by electronic funds transfer. (Section 601.1 of the
Illinois Income Tax Act [35 ILCS
5/601.1] ("the IITA"))
A) Beginning on October 1, 1994, the
threshold for taxpayers with withholding liability under Article 7 of the IITA
drops to an average monthly liability of $100,000, and, beginning on October 1,
1995, the threshold drops to an average monthly liability of $50,000.
B) Beginning on October 1, 1994, the
threshold for taxpayers with liability for estimated tax payments under Article
8 of the IITA drops to an average quarterly estimated tax payment obligation of
$300,000 and, beginning on October 1, 1995, the threshold drops to an average
quarterly estimated tax payment obligation of $150,000.
C) Beginning on October 1, 2000, the
threshold for taxpayers with withholding liability under Article 7 of the IITA
drops to an average annual liability of $200,000 and the threshold for
taxpayers with liability for estimated tax payments under Article 8 of the IITA
drops to an average quarterly estimated tax payment obligation of
$50,000.
D)
Beginning
October 1, 2002, a taxpayer who has an annual tax liability of $200,000 or more
shall make all payments of that tax to the Department by electronic funds
transfer. The term "annual tax liability" means the greater of the amount of
the taxpayer's tax liability under Article 7 of the IITA for the immediately
preceding calendar year or the taxpayer's estimated tax payment obligation
under Article 8 of the IITA for the immediately preceding calendar
year. [20 ILCS
2505/2505-210]
E)
Beginning October 1,
2010, except as provided in subsection (a)(2)(F), a taxpayer (other
than an individual taxpayer) who has an annual tax liability of $20,000 or more
and an individual taxpayer who has an annual tax liability of $200,000 or more
shall make all payments of that tax to the Department by electronic funds
transfer. [20 ILCS
2505/2505-210(b)] The term "annual
tax liability" means the greater of the amount of the taxpayer's tax liability
under Article 7 of the IITA for the immediately preceding calendar year or the
taxpayer's estimated tax payment obligation under Article 8 of the IITA for the
immediately preceding calendar year. [20 ILCS
2505/2505-10(d)]
F)
Beginning with calendar year 2011,
payments of withholding required to be made on a semi-weekly basis under IITA
Section 704A(c)(1) must be made by electronic funds transfer. (IITA
Section 704A(c)(1)) (See 86 Ill. Adm. Code
100.7325(c)(4).)
3) The Department will only
require payments by electronic funds transfer in those circumstances in which
it is cost-effective for the Department to receive payments by electronic funds
transfer and where receipt of payments by electronic funds transfer is
consistent with the Department's tax processing capabilities.
4) Taxpayers over the statutory thresholds
will only be required to make certain types of income tax payments by
electronic funds transfer.
A) Taxpayers with
income tax withholding liabilities over the statutory thresholds shall make
IL-501 payments by electronic funds transfer. All other withholding payments by
those taxpayers shall be made by conventional means.
B) Corporate taxpayers with estimated income
and replacement tax liabilities over the statutory thresholds shall make
IL-1120-ES payments and IL-505-B payments by electronic funds transfer.
C) Individual taxpayers with
estimated income tax liabilities over the statutory thresholds shall make
IL-1040-ES and IL-505-I payments by electronic funds transfer.
D) Any other taxpayers not listed above who
incur estimated income tax liabilities over the statutory thresholds will, upon
contact by the Department, be required to make subsequent estimated payments by
electronic funds transfer as directed by the Department.
b) State and Local Occupation and
Use Tax Payments Reported on Form ST-1, Sales and Use Tax and E911 Surcharge
Return
1) Beginning on October 1, 1993, the
Department will require certain State and local occupation and use tax payments
to be made by electronic funds transfer. Subsection (b) sets forth the types of
payments that must be made by electronic funds transfer.
A)
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 by electronic funds
transfer. The term "average monthly tax liability", as used in this subsection
(b), 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,
divided by 12. (Section 3 of the Retailers' Occupation Tax Act
[35
ILCS 120/3] ("the ROT"))
B) Beginning October 1, 1994, the threshold
for taxpayers required to make payments by electronic funds transfer drops to
those taxpayers with average monthly tax liability of $100,000.
C) Beginning October 1, 1995, the threshold
for taxpayers required to make payments by electronic funds transfer drops to
those taxpayers with average monthly tax liability of $50,000.
D)
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. 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. [35
ILCS 120/3]
E)
Beginning October 1, 2002, and
through September 30, 2010, a taxpayer who has an annual tax liability of
$200,000 or more shall make all payments of that tax to the Department by
electronic funds transfer. The term "annual tax liability" shall be
the sum of the taxpayer's liability reported on that taxpayer's Form ST-1,
Sales and Use Tax and E911 Surcharge Return [20 ILCS 2505/2505-210].
F)
Beginning October 1, 2010, a
taxpayer who has an annual tax liability of $20,000 or more shall make all
payments of that tax to the Department by electronic funds transfer. Before
August 1 of each year, the Department shall notify all taxpayers required to
make payments by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments for a minimum
of one year beginning on October 1. The term "annual tax liability" means, for
a taxpayer that incurs a tax liability under the Retailers' Occupation Tax Act,
Service Occupation Tax Act, Use Tax Act, Service Use Tax Act, or any other
State or local occupation or use tax law that is administered by the
Department, the sum of the taxpayer's liabilities under the Retailers'
Occupation Tax Act, Service Occupation Tax Act, Use Tax Act, Service Use Tax
Act, and all other State and local occupation and use tax laws administered by
the Department for the immediately preceding calendar year.
[20 ILCS
2505/2505-210] The term "annual tax liability" shall
be the sum of the taxpayer's liability reported on that taxpayer's Form ST-1,
Sales and Use Tax and E911 Surcharge Return.
2) The Department will only require payments
by electronic funds transfer in those circumstances in which it is
cost-effective for the Department to receive payments by electronic funds
transfer and where receipt of payments by electronic funds transfer is
consistent with the Department's tax processing capabilities.
3) Taxpayers over the statutory thresholds
will only be required to make RR-3 sales tax accelerated quarter-monthly
payments, ST-1 return payments, PST-1 return payments and PST-3 return payments
by electronic funds transfer. Any other payments that accompany a tax return
(for example, ST-1-X return payments, 556 return payments, etc.) may not be
paid by electronic funds transfer.
c) Electricity Excise Tax Payments
1) Beginning October 1, 1999, each delivering
supplier or self-assessing purchaser whose average monthly liability under the
Electricity Excise Tax Law was $10,000 or more is required to make all payments
by electronic funds transfer. The calculation to determine the average monthly
liability is made by taking the sum of the liabilities of the delivering
supplier or self-assessing purchaser for the immediately preceding calendar
year and dividing by the number 12.
2) The Department will calculate the
delivering supplier's or self-assessing purchaser's average monthly liability
for calendar year 1998, and only for calendar year 1998, by taking the sum of
the delivering supplier's or self-assessing purchaser's liabilities for the
last 5 months of calendar year 1998 and dividing by the number 12.
3)
Beginning October 1, 2002, and
through September 30, 2010, a taxpayer who has an annual tax liability of
$200,000 or more shall make all payments of that tax to the Department by
electronic funds transfer. The term "annual tax liability" means the sum of the
taxpayer's liabilities for the immediately preceding calendar year.
[20 ILCS 2505/2505-210]
4)
Beginning October 1, 2010, a taxpayer who has an annual tax liability
of $20,000 or more shall make all payments of that tax to the Department by
electronic funds transfer [20 ILCS 2505/2505-210].
d) Other Tax Payments
Beginning on October 1, 2002, and through September 30,
2010, a taxpayer who has an annual tax liability of $200,000 or more shall make
all payments of that tax to the Department by electronic funds transfer. Before
August 1 of each year, beginning in 2002, the Department shall notify all
taxpayers required to make payments by electronic funds transfer. All taxpayers
required to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1. Beginning October 1,
2010, a taxpayer who has an annual tax liability of $20,000 or more shall make
all payments of that tax to the Department by electronic funds
transfer. [20 ILCS 2505/2505-210] This requirement applies to all
taxes administered by the Department not otherwise specified in this
Section.
e) Liquor Revenue
Tax Payments
Beginning on January 1, 2003, and through September 30,
2010, a taxpayer who has an annual tax liability of $200,000 or more
in the immediately preceding calendar year shall make all payments of
that tax to the Department by electronic funds transfer. Beginning October 1,
2010, a taxpayer who has an annual tax liability of $20,000 or more shall make
all payments of that tax to the Department by electronic funds
transfer. [20 ILCS 2505/2505-210] A taxpayer who fails to file an
electronic report and electronically pay the tax imposed pursuant to Section
8-1 of the Liquor Control Act of 1934 [235 ILCS 5 ] to the Department on or
before the 15thday of the calendar month following
the calendar month in which alcoholic liquor is sold or used by that taxpayer
is not entitled to receive the discount provided in Section 8-2 of the Liquor
Control Act.
f) Cigarette
and Cigarette Use Tax Payments; Tax Stamp Payments
1) Beginning on January 1, 2003, through
September 30, 2010, each distributor who has an annual tax liability of
$200,000 or more in the immediately preceding calendar year must pay for its
cigarette revenue tax stamps by means of electronic funds transfer.
Beginning October 1, 2010,a cigarette manufacturer who is
required to file returns pursuant to Section 3 of the Cigarette Tax Act [35
ILCS 130 ] or Section 3 of the Cigarette Use Tax Act [35 ILCS 135 ] and has an
annual tax liability of $20,000 or more shall make all payments of tax to the
Department by electronic funds transfer [20 ILCS 2505/2505-210].
2)
Beginning on January 1, 2003,
through June 30, 2003, each distributor who pays for cigarette revenue tax
stamps with a postdated draft shall pay such draft by means of electronic funds
transfer [35 ILCS 135/3] . On
and after July 1, 2003, payment for tax stamps affixed to original packages of
cigarettes and packages of little cigars containing 20 or 25 little cigars must
be made by means of electronic funds transfer.
3) Distributors who purchase cigarette
revenue tax stamps must pay for their purchases using the ACH debit method. The
ACH credit method is not available to taxpayers who are purchasing cigarette
tax stamps.
g) Hotel
Operators' Occupation Tax Payments
Beginning on January 1, 2003, and through September 30, 2010, a
taxpayer who has an annual tax liability of $200,000 or more in the immediately
preceding calendar year of Hotel Operators' Occupation Tax shall make all
payments of that tax to the Department by electronic funds transfer.
Beginning October 1, 2010, a taxpayer who has an annual tax liability
of $20,000 or more shall make all payments of that tax to the Department by
electronic funds transfer [20 ILCS 2505/2505-210].
h) Soft Drink Tax Payments
Beginning on January 1, 2003, and through September 30, 2010, a
taxpayer who has an annual tax liability of $200,000 or more in the immediately
preceding calendar year of taxes imposed under 8-11-6b of the Illinois
Municipal Code [65 ILCS 5/8-11 -6b] shall make all payments of that tax to the
Department by electronic funds transfer. Beginning October 1, 2010, a
taxpayer who has an annual tax liability of $20,000 or more shall make all
payments of that tax to the Department by electronic funds transfer
[20 ILCS 2505/2505-210].
i)
Telecommunications Excise Tax and Simplified Municipal Telecommunications Tax
Payments
Beginning on January 1, 2003, a taxpayer who has an
average monthly tax liability of the taxes imposed
under the Telecommunications Excise Tax Act
[35 ILCS 630 ] and the Simplified Municipal Telecommunications Tax
Act [35 ILCS 636 /Art. 5] of $1,000 or more for the
immediately preceding calendar year shall make all payments of
those taxes to the Department by electronic funds transfer and shall
file the return required by Section 6 of the Telecommunications Excise
Tax Act by electronic means [35 ILCS
630/6] .
j) Motor Fuel Tax Law and Environmental
Impact Fee Law
Beginning October 1, 2012, payments of the fee imposed by
Section 13a.4 of the Motor Fuel Tax Law [35 ILCS 505 ] shall be made as
provided in 86 Ill. Adm. Code
500.305.
Beginning January 1, 2013, payments of taxes and fees imposed by Sections 13a
and 13a.5 of the Motor Fuel Tax Law shall be made as provided in 86 Ill. Adm.
Code
500.335
and
500.320, respectively.
Beginning January 1, 2016, payments of taxes imposed by Sections 2 and 2a of
the Motor Fuel Tax Law and payments of the fee imposed by the Environmental
Impact Fee Law [415 ILCS 125 /Art. 3] shall be made as provided in 86 Ill. Adm.
Code
500.203.
k) Medical Cannabis Cultivation
Privilege Tax Law
A taxpayer may voluntarily make payments of the tax imposed by
Section 210 of the Medical Cannabis Cultivation Privilege Tax Law [410 ILCS
130/190 through 215 ] by electronic funds transfer.
