Full Text of SB0717 99th General Assembly
SB0717sam002 99TH GENERAL ASSEMBLY | Sen. Toi W. Hutchinson Filed: 3/17/2015
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| 1 | | AMENDMENT TO SENATE BILL 717
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 717 on page 1, line | 3 | | 5, by replacing "Sections 203, 901, and 1501" with "Sections | 4 | | 203, 804, and 1501"; and
| 5 | | on page 96, immediately below line 11, by inserting the | 6 | | following:
| 7 | | "(35 ILCS 5/804) (from Ch. 120, par. 8-804)
| 8 | | Sec. 804. Failure to Pay Estimated Tax.
| 9 | | (a) In general. In case of any underpayment of estimated | 10 | | tax by a
taxpayer, except as provided in subsection (d) or (e), | 11 | | the taxpayer shall
be liable to a penalty in an amount | 12 | | determined at the rate prescribed by
Section 3-3 of the Uniform | 13 | | Penalty and Interest Act upon the amount of the
underpayment | 14 | | (determined under subsection (b)) for each required | 15 | | installment.
| 16 | | (b) Amount of underpayment. For purposes of subsection (a), |
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| 1 | | the
amount of the underpayment shall be the excess of:
| 2 | | (1) the amount of the installment which would be | 3 | | required to be paid
under subsection (c), over
| 4 | | (2) the amount, if any, of the installment paid on or | 5 | | before the
last date prescribed for payment.
| 6 | | (c) Amount of Required Installments.
| 7 | | (1) Amount.
| 8 | | (A) In General. Except as provided in paragraphs | 9 | | (2) and (3), the amount of any
required installment | 10 | | shall be 25% of the required annual payment.
| 11 | | (B) Required Annual Payment. For purposes of | 12 | | subparagraph (A),
the term "required annual payment" | 13 | | means the lesser of:
| 14 | | (i) 90% of the tax shown on the return for the | 15 | | taxable year, or
if no return is filed, 90% of the | 16 | | tax for such year;
| 17 | | (ii) for installments due prior to February 1, | 18 | | 2011, and after January 31, 2012, 100% of the tax | 19 | | shown on the return of the taxpayer for the
| 20 | | preceding taxable year if a return showing a | 21 | | liability for tax was filed by
the taxpayer for the | 22 | | preceding taxable year and such preceding year was | 23 | | a
taxable year of 12 months; or
| 24 | | (iii) for installments due after January 31, | 25 | | 2011, and prior to February 1, 2012, 150% of the | 26 | | tax shown on the return of the taxpayer for the |
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| 1 | | preceding taxable year if a return showing a | 2 | | liability for tax was filed by the taxpayer for the | 3 | | preceding taxable year and such preceding year was | 4 | | a taxable year of 12 months.
| 5 | | (2) Lower Required Installment where Annualized Income | 6 | | Installment is Less
Than Amount Determined Under Paragraph | 7 | | (1).
| 8 | | (A) In General. In the case of any required | 9 | | installment if a taxpayer
establishes that the | 10 | | annualized income installment is less than the amount
| 11 | | determined under paragraph (1),
| 12 | | (i) the amount of such required installment | 13 | | shall be the annualized
income installment, and
| 14 | | (ii) any reduction in a required installment | 15 | | resulting from the
application of this | 16 | | subparagraph shall be recaptured by increasing the
| 17 | | amount of the next required installment determined | 18 | | under paragraph (1) by
the amount of such | 19 | | reduction, and by increasing subsequent required
| 20 | | installments to the extent that the reduction has | 21 | | not previously been
recaptured under this clause.
| 22 | | (B) Determination of Annualized Income | 23 | | Installment. In the case of
any required installment, | 24 | | the annualized income installment is the
excess, if | 25 | | any, of:
| 26 | | (i) an amount equal to the applicable |
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| 1 | | percentage of the tax for the
taxable year computed | 2 | | by placing on an annualized basis the net income | 3 | | for
months in the taxable year ending before the | 4 | | due date for the installment, over
| 5 | | (ii) the aggregate amount of any prior | 6 | | required installments for
the taxable year.
| 7 | | (C) Applicable Percentage.
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8 | | In the case of the following |
The applicable |
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9 | | required installments: |
percentage is: |
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10 | | 1st ............................... |
22.5% |
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11 | | 2nd ............................... |
45% |
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12 | | 3rd ............................... |
67.5% |
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13 | | 4th ............................... |
90% |
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14 | | (D) Annualized Net Income; Individuals. For | 15 | | individuals, net
income shall be placed on an | 16 | | annualized basis by:
| 17 | | (i) multiplying by 12, or in the case of a | 18 | | taxable year of
less than 12 months, by the number | 19 | | of months in the taxable year, the
net income | 20 | | computed without regard to the standard exemption | 21 | | for the months
in the taxable
year ending before | 22 | | the month in which the installment is required to | 23 | | be paid;
| 24 | | (ii) dividing the resulting amount by the | 25 | | number of months in the
taxable year ending before | 26 | | the month in which such installment date falls; and
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| 1 | | (iii) deducting from such amount the standard | 2 | | exemption allowable for
the taxable year, such | 3 | | standard exemption being determined as of the last
| 4 | | date prescribed for payment of the installment.
| 5 | | (E) Annualized Net Income; Corporations. For | 6 | | corporations,
net income shall be placed on an | 7 | | annualized basis by multiplying
by 12 the taxable | 8 | | income
| 9 | | (i) for the first 3 months of the taxable year, | 10 | | in the case of the
installment required to be paid | 11 | | in the 4th month,
| 12 | | (ii) for the first 3 months or for the first 5 | 13 | | months of the taxable
year, in the case of the | 14 | | installment required to be paid in the 6th month,
| 15 | | (iii) for the first 6 months or for the first 8 | 16 | | months of the taxable
year, in the case of the | 17 | | installment required to be paid in the 9th month, | 18 | | and
| 19 | | (iv) for the first 9 months or for the first 11 | 20 | | months of the taxable
year, in the case of the | 21 | | installment required to be paid in the 12th month
| 22 | | of the taxable year,
| 23 | | then dividing the resulting amount by the number of | 24 | | months in the taxable
year (3, 5, 6, 8, 9, or 11 as the | 25 | | case may be).
| 26 | | (3) Notwithstanding any other provision of this |
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| 1 | | subsection (c), in the case of a federally regulated | 2 | | exchange that elects to apportion its income under Section | 3 | | 304(c-1) of this Act, the amount of each required | 4 | | installment due prior to June 30 of the first taxable year | 5 | | to which the election applies shall be 25% of the tax that | 6 | | would have been shown on the return for that taxable year | 7 | | if the taxpayer had not made such election. | 8 | | (d) Exceptions. Notwithstanding the provisions of the | 9 | | preceding
subsections, the penalty imposed by subsection (a) | 10 | | shall not
be imposed if the taxpayer was not required to file | 11 | | an Illinois income
tax return for the preceding taxable year, | 12 | | or, for individuals, if the
taxpayer had no tax liability for | 13 | | the preceding taxable year and such year
was a taxable year of | 14 | | 12 months.
The penalty imposed by subsection (a) shall
also not | 15 | | be imposed on any underpayments of estimated tax due before the
| 16 | | effective date of this amendatory Act of 1998 which | 17 | | underpayments are solely
attributable to the change in | 18 | | apportionment from subsection (a) to subsection
(h) of Section | 19 | | 304. The provisions of this amendatory Act of 1998 apply to tax
| 20 | | years ending on or after December 31, 1998.
| 21 | | (e) The penalty imposed for underpayment of estimated tax | 22 | | by subsection
(a) of this Section shall not be imposed to the | 23 | | extent that the Director
or his or her designate determines, | 24 | | pursuant to Section 3-8 of the Uniform Penalty
and Interest Act | 25 | | that the penalty should not be imposed.
| 26 | | (f) Definition of tax. For purposes of subsections (b) and |
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| 1 | | (c),
the term "tax" means the excess of the tax imposed under | 2 | | Article 2 of
this Act, over the amounts credited against such | 3 | | tax under Sections
601(b) (3) and (4).
| 4 | | (g) Application of Section in case of tax withheld under | 5 | | Article 7.
For purposes of applying this Section:
| 6 | | (1) tax
withheld from compensation for the taxable year | 7 | | shall be deemed a payment
of estimated tax, and an equal | 8 | | part of such amount shall be deemed paid
on each | 9 | | installment date for such taxable year, unless the taxpayer
| 10 | | establishes the dates on which all amounts were actually | 11 | | withheld, in
which case the amounts so withheld shall be | 12 | | deemed payments of estimated
tax on the dates on which such | 13 | | amounts were actually withheld;
| 14 | | (2) amounts timely paid by a partnership, Subchapter S | 15 | | corporation, or trust on behalf of a partner, shareholder, | 16 | | or beneficiary pursuant to subsection (f) of Section 502 or | 17 | | Section 709.5 and claimed as a payment of estimated tax | 18 | | shall be deemed a payment of estimated tax made on the last | 19 | | day of the taxable year of the partnership, Subchapter S | 20 | | corporation, or trust for which the income from the | 21 | | withholding is made was computed; and | 22 | | (3) all other amounts pursuant to Article 7 shall be | 23 | | deemed a payment of estimated tax on the date the payment | 24 | | is made to the taxpayer of the amount from which the tax is | 25 | | withheld.
| 26 | | (g-5) Amounts withheld under the State Salary and Annuity |
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| 1 | | Withholding
Act. An individual who has amounts withheld under | 2 | | paragraph (10) of Section 4
of the State Salary and Annuity | 3 | | Withholding Act may elect to have those amounts
treated as | 4 | | payments of estimated tax made on the dates on which those | 5 | | amounts
are actually withheld.
| 6 | | (g-10) Notwithstanding any other provision of law, no | 7 | | penalty shall apply with respect to an underpayment of | 8 | | estimated tax for the first, second, or third quarter of any | 9 | | taxable year ending on or after December 31, 2015 and ending | 10 | | prior to December 31, 2016 if (i) the underpayment was due to | 11 | | the changes made by this amendatory Act of the 99th General | 12 | | Assembly, (ii) the payment was otherwise timely made, and (iii) | 13 | | the balance due is included with the taxpayer's estimated tax | 14 | | payment for the fourth quarter. | 15 | | (i) Short taxable year. The application of this Section to
| 16 | | taxable years of less than 12 months shall be in accordance | 17 | | with
regulations prescribed by the Department.
| 18 | | The changes in this Section made by Public Act 84-127 shall | 19 | | apply to
taxable years ending on or after January 1, 1986.
| 20 | | (Source: P.A. 96-1496, eff. 1-13-11; 97-507, eff. 8-23-11; | 21 | | 97-636, eff. 6-1-12 .)"; and
| 22 | | by deleting everything from line 12 on page 96 through line 14 | 23 | | on page 108; and | 24 | | by deleting everything from line 18 on page 135 through line 18 |
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| 1 | | on page 136.
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