Public Act 90-0374 of the 90th General Assembly

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Public Act 90-0374

HB0981 Enrolled                                LRB9002465KDcc

    AN ACT to amend the Illinois Income Tax Act  by  changing
Section 704.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The Illinois Income Tax  Act  is  amended  by
changing Section 704 as follows:

    (35 ILCS 5/704) (from Ch. 120, par. 7-704)
    Sec. 704. Employer's Return and Payment of Tax Withheld.
    (a)  In general, every employer who deducts and withholds
or  is  required  to  deduct  and withhold tax under this Act
shall make such payments and returns as hereinafter provided.
    (b)  Quarter Monthly Payments:  Returns.  Every  employer
who  deducts  and  withholds  or  is  required  to deduct and
withhold tax under this Act shall, on  or  before  the  third
banking  day following the close of a quarter monthly period,
pay to the Department or to a depositary  designated  by  the
Department,   pursuant   to  regulations  prescribed  by  the
Department,  the  taxes  so  required  to  be  deducted   and
withheld,  whenever  the  aggregate  amount  withheld by such
employer (together with amounts previously withheld  and  not
paid  to the Department) exceeds $1,000. For purposes of this
Section, Saturdays, Sundays, legal holidays  and  local  bank
holidays  are not banking days. A quarter monthly period, for
purposes of this subsection, ends on the 7th, 15th, 22nd  and
last  day  of each calendar month.  Every such employer shall
for each calendar quarter, on or before the last day  of  the
first  month following the close of such quarter, and for the
calendar year, on or before  January  31  of  the  succeeding
calendar  year,  make  a return with respect to such taxes in
such form and manner as the  Department  may  by  regulations
prescribe,  and  pay  to  the  Department  or to a depositary
designated  by  the  Department  all   withheld   taxes   not
previously paid to the Department.
    (c)  Monthly Payments:  Returns.  Every employer required
to deduct and withhold tax under this Act shall, on or before
the  15th day of the second and third months of each calendar
quarter, and on or before the last day of the month following
the last month of each such quarter, pay to the Department or
to a depositary designated by  the  Department,  pursuant  to
regulations  prescribed  by  the  Department,  the  taxes  so
required  to be deducted and withheld, whenever the aggregate
amount withheld  by  such  employer  (together  with  amounts
previously  withheld  and not paid to the Department) exceeds
$500 but does not exceed $1,000.  Every such  employer  shall
for  each  calendar quarter, on or before the last day of the
first month following the close of such quarter, and for  the
calendar  year,  on  or  before  January 31 of the succeeding
calendar year, make a return with respect to  such  taxes  in
such  form  and  manner  as the Department may by regulations
prescribe, and pay to  the  Department  or  to  a  depositary
designated   by   the   Department  all  withheld  taxes  not
previously paid to the Department.
    (d)  Annual Payments:   Returns.   Where  the  amount  of
compensation paid by an employer is not sufficient to require
the  withholding  of  tax from the compensation of any of its
employees (or where the aggregate  amount  withheld  is  less
than  $500),  the  Department  may  by regulation permit such
employer to file only an annual return and to pay  the  taxes
required  to  be  deducted and withheld at the time of filing
such annual return.
    (e)  Annual Return.  The  Department  may,  as  it  deems
appropriate, prescribe by regulation for the filing of annual
returns in lieu of quarterly returns described in subsections
(b) and (c).
    (e-5)  Annual  Return.   Where the tax is withheld from a
person engaged in domestic service employment, as  that  term
is  defined  in  Section  3510  of the Internal Revenue Code,
returns shall be filed on or  before  the  15th  day  of  the
fourth  month  following  the close of the employer's taxable
year.
    (f)  Magnetic Media Filing.  Forms W-2 that, pursuant  to
the   Internal   Revenue  Code  and  regulations  promulgated
thereunder, are required to  be  submitted  to  the  Internal
Revenue  Service on magnetic media, must also be submitted to
the Department on magnetic media for  Illinois  purposes,  if
required by the Department.
(Source: P.A. 87-205.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

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