101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB0119
 
Introduced 1/29/2019, by Sen. Cristina Castro
 
SYNOPSIS AS INTRODUCED:
 

 
35 ILCS 5/502.2 new

     Amends the Illinois Income Tax Act. Provides that any person required to file a federal Form 1099-K with respect to a nonresident who performed services within the State during the taxable year shall file a copy of that form with the Department of Revenue. Provides that a third-party settlement organization that is required to file an information return under certain provisions of the Internal Revenue Code shall, within 30 days of the date the filing is due to the Internal Revenue Service, file a duplicate return with the Department of Revenue. Provides that third-party network transactions are subject to the $600 de minimis reporting requirements set forth in the Internal Revenue Code, rather than the de minimis reporting requirements otherwise applicable to third-party settlement organizations under the Internal Revenue Code.
  


LRB101 06854 HLH 51885 b

FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
SB0119LRB101 06854 HLH 51885 b


  
1    AN ACT concerning revenue.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Illinois Income Tax Act is amended  by adding 
5Section 502.2 as follows:
 
6    (35 ILCS 5/502.2 new)
7    Sec. 502.2. Third-party settlement organizations; 
8reporting.
9    (a) As used in this Section: 
10    "Third-party network transaction" means any transaction 
11that is settled by a third-party settlement organization. 
12    "Third-party settlement organization" means a central 
13organization that has the contractual obligation to make 
14payments to participating payees of third-party network 
15transactions. 
16    (b) Any person required to file a federal Form 1099-K with 
17respect to a nonresident who performed services within the 
18State during the taxable year shall file a copy of that form 
19with the Department. The Department may authorize electronic 
20filing of the Form. The Department shall adopt rules setting 
21forth any documentation that must be submitted with the form. 
22    (c) Any person required to file an information return 
23pursuant to Section 6050W  of the Internal Revenue Code shall, 
 
 
SB0119- 2 -LRB101 06854 HLH 51885 b

1within 30 days of the date the filing is due to the Internal 
2Revenue Service, file with the Department a duplicate of each 
3such information return on which the recipient has an Illinois 
4address. In addition, at the same time the information in this 
5subsection is required, third-party settlement organizations 
6shall report to the Department and to any participating payee 
7with a Illinois address any information required by Section 
86050W of the Internal Revenue Code with respect to third-party 
9network transactions related to that participating payee; 
10those reports shall be made as if the de minimis limitations of 
11subsection (e) of Section 6050W of the Internal Revenue Code 
12did not apply, but the de minimis limitations of subsection (a) 
13of  Section 6041 of the Internal Revenue Code did apply. The 
14Department may adopt rules and authorize electronic filing of 
15the information required by this subsection. 
16    (d) A failure to provide the information required by this 
17Section shall be considered a failure to provide a return or 
18return information and shall incur liability for any attendant 
19penalties.