Current through Register Vol. 48, No. 12, March 22, 2024
a) The
Department has mandatory electronic filing programs and voluntary programs for
certain returns and other documents that are required to be filed with the
Department. Upon acceptance into the program, the returns, schedules, and other
documents listed in this Section may be electronically filed with the
Department.
b) An electronic return
or other document consists of data transmitted to the Department
electronically, and may include paper documents that contain information that
cannot be electronically transmitted or are requested for verification. In
total, electronic returns must contain the same information as traditionally
filed paper documents.
c) Mandatory
Programs
1) Beginning January 1, 2003,
telecommunications providers who have average monthly tax billings for the
immediately preceding calendar year that exceed $1,000 must file their tax
returns and supporting schedules electronically. Paper documents that contain
information that cannot be electronically provided or are requested for
verification must be mailed to the Department. The following circumstances
require paper documentation:
A) When a final
return is electronically filed, the taxpayer must also mail a statement
explaining the reasons for a final return (e.g., business sold or
discontinued).
B) When a return and
payment are made in protest in accordance with Section 2a.1 of the State
Officers and Employees Money Disposition Act [30 ILCS
230/2a.1 ], the corresponding notice must be mailed to
the Department.
C) When the
taxpayer wishes to notify the Department of a change of address, the taxpayer
must notify the Department by telephone or by mailing such change to the
Department.
2) Beginning
January 1, 2003, cigarette distributors with 30 or more invoice transactions
per month and who are not voluntarily filing returns and schedules by
electronic means are required to file supporting schedule data with the
Department on computer-generated magnetic media in a format prescribed by the
Department.
3) During calendar year
2011, each income tax return preparer who is required during calendar year 2011
to file by electronic means any federal income tax return for any individual or
individuals, and who prepared more than 100 Illinois income tax returns for
individuals during calendar year 2010, is required to file by electronic means
any Illinois income tax returns he or she prepares for the same individual or
individuals for the same taxable year for which the preparer filed a federal
income tax return during calendar year 2011. Beginning with calendar year 2012,
each income tax return preparer who is required during the calendar year to
file by electronic means any federal income tax return for any individual or
individuals and who prepared more than 10 Illinois income tax returns for
individuals during the preceding calendar year is required during the calendar
year to file by electronic means any Illinois income tax returns he or she
prepares for the same individual or individuals for the same taxable year for
which the preparer filed a federal income tax return during that calendar year.
This subsection (c)(3) does not require electronic filing of amended returns or
of returns of trusts or estates, or of any return the Department has announced
cannot be filed by electronic means.
4) Beginning with returns required to be
filed for taxable years ending on or after December 31, 2011, any taxpayer
required to file its federal income tax return by electronic means is required
to file its equivalent Illinois income tax return for the same taxable year by
electronic means. This subsection (c)(4) does not require electronic filing of
amended returns or of returns of individuals or estates, or to any return the
Department has announced cannot be filed by electronic means.
5) Beginning with returns due on and after
February 1, 2012, any person who is engaged in the business of selling
alcoholic liquor at retail through a liquor store, tavern or restaurant and is
required to file the monthly statement required by Section 3 of the Retailers'
Occupation Tax [35 ILCS 120/3 ] and 86 Ill. Adm.
Code 130.552, shall file that
statement on a Form ST-1 Return by electronic means in accordance with the
provisions of this Part. Upon petition by a taxpayer, the Department may waive
the electronic filing requirement if the taxpayer demonstrates that it does not
have access to the Internet.
6)
On and after January 1, 2018, except for returns required to be filed
prior to January 1, 2023 for motor vehicles, watercraft, aircraft, and trailers
that are required to be registered with an agency of this State, with respect
to retailers whose annual gross receipts average $20,000 or more, all returns
required to be filed pursuant to the Retailers' Occupation Tax Act and Service
Occupation Tax Act shall be filed electronically. On and after January 1, 2023,
with respect to retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to the Retailers' Occupation
Tax Act and Use Tax Act including, but not limited to, returns for
motor vehicles, watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, shall be filed electronically.
Retailers who demonstrate that they do not have access to the Internet or
demonstrate hardship in filing electronically may petition the Department to
waive the electronic filing requirement [35 ILCS 120/3
and 35 ILCS 105/9].
Retailers required to file returns electronically pursuant to the Acts who fail
to file their returns electronically may not take the discount allowed to
reimburse them for the expenses incurred in keeping records, preparing and
filing returns, remitting the tax and supplying data to the Department on
request.
7)
On and after
January 1, 2018, with respect to servicemen whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to the
Service Occupation Tax Act and Service Use Tax Act shall be filed
electronically. Servicemen who demonstrate that they do not have access to the
Internet or demonstrate hardship in filing electronically may petition the
Department to waive the electronic filing requirement [35 ILCS
110/9 and
35 ILCS 115/9]. Servicemen required
to file returns electronically pursuant to the Service Use Tax Act and Service
Occupation Tax Act who fail to file their returns electronically may not take
the discount allowed to reimburse them for the expenses incurred in keeping
records, preparing and filing returns, remitting the tax and supplying data to
the Department on request.
d) Voluntary Programs
1) Taxpayers may volunteer to participate in
any electronic filing program currently in effect for mandatory electronic
filers.
2) Form ST-1, Sales and Use
Tax Return, and Form ST-2, Multiple Site attachment for Form ST-1, can be
transmitted electronically under the provisions of this Part.
3) Beginning January 1, 2003, original or
amended liquor tax returns and schedules for Liquor Tax participants may be
filed electronically under the provisions of this Part.
A) Paper documents that contain information
that cannot be electronically provided or are requested for verification must
be mailed to the Department. They include:
i)
Copies of schedules, invoices or bills of lading requested for verification in
accordance with Section 8-2 of the Liquor Control Act of 1934 [235 ILCS
5/8-2 ].
ii) Non-Beverage User
permits.
B) Beginning
January 1, 2003, persons filing liquor tax returns and schedules electronically
must also make payments by means of electronic funds transfer. See Section
760.220 of this Part. By doing
so, the taxpayer is entitled to a discount of
1.75 % of the tax due, or
$1,250, whichever is less, provided that the electronic return and payment are
made timely in accordance with this Part.
C) Liquor tax participants may file their
returns and schedules using magnetic media in a format prescribed by the
Department. Liquor tax participants that file returns and schedules on magnetic
media are not entitled to the discount provided for in subsection (d)(3)(B) of
this Section.
4)
Beginning January 1, 2003, original or amended cigarette tax returns and
schedules for Cigarette Tax participants may be filed electronically under the
provisions of this Part.
5)
Illustrations of When Paper Documents Must Be Filed
A) In the event a final return is
electronically filed, the taxpayer must also mail a statement explaining the
reasons for a final return (e.g., business sold or discontinued).
B) In the event a return and payment are made
in protest in accordance with Section 2a.1 of the State Officers and Employees
Money Disposition Act [30 ILCS 230/2a.1 ], the
corresponding notice must be mailed to the
Department.