Illinois Taxes

Business Tax Rates—Simplified municipal telecommunications tax—rate changes.

The Illinois Department of Revenue released a bulletin providing a list of municipalities that will increase their locally imposed simplified municipal telecommunications tax rates. The new rates take effect on January 1, 2011. (Illinois Dept. of Rev. Info. Bulletin FY 2011-03, 10/01/2010.)

CORPORATE INCOME TAX—Withholding income tax payment and filing requirements.

The Illinois Department of Revenue updated a publication relating to withholding income tax filing and payment requirements. The revised publication provides that, for calendar year 2011, the look-back period is July 1, 2009 through June 30, 2010. In addition, the publication reminds taxpayers that, beginning January 1, 2011, taxpayers assigned to the semi-weekly payment and quarterly return schedule must make all payments electronically. In addition, taxpayers assigned to the monthly payment and quarterly return schedule that exceed $12,000 in withholding during any quarter must make electronic payments. The publication also indicates that the form required for both quarterly and annual withholding tax filers is Form IL-941. Various examples are updated. (Publication 131, Withholding Income Tax Payment and Filing Requirements, dated 12/01/2010.)

CORPORATE INCOME TAX—Persons required to withhold tax.

The Department of Revenue updated a publication that explains who is required to withhold Illinois income tax. Specifically, the publication is revised to reflect that bingo and slot machine winnings are subject to federal withholding requirements for amounts of $1,200 or more. Winnings from keno of $1,500 or more are also subject to federal withholding requirements. Resident winners are taxed by Illinois. Nonresidents are not taxed unless they are professional gamblers. (Publication 130, Who is Required to Withhold Illinois Income Tax, dated 12/01/2010.)

PERSONAL INCOME TAX—Withholding income tax payment and filing requirements.

The Illinois Department of Revenue updated a publication relating to withholding income tax filing and payment requirements. The revised publication provides that, for calendar year 2011, the look-back period is July 1, 2009 through June 30, 2010. In addition, the publication reminds taxpayers that, beginning January 1, 2011, taxpayers assigned to the semi-weekly payment and quarterly return schedule must make all payments electronically. In addition, taxpayers assigned to the monthly payment and quarterly return schedule that exceed $12,000 in withholding during any quarter must make electronic payments. The publication also indicates that the form required for both quarterly and annual withholding tax filers is Form IL-941. Various examples are updated. (Publication 131, Withholding Income Tax Payment and Filing Requirements, dated 12/01/2010.)

PERSONAL INCOME TAX—Persons required to withhold tax.

The Department of Revenue updated a publication that explains who is required to withhold Illinois income tax. Specifically, the publication is revised to reflect that bingo and slot machine winnings are subject to federal withholding requirements for amounts of $1,200 or more. Winnings from keno of $1,500 or more are also subject to federal withholding requirements. Resident winners are taxed by Illinois. Nonresidents are not taxed unless they are professional gamblers. (Publication 130, Who is Required to Withhold Illinois Income Tax, dated 12/01/2010.)

PERSONAL INCOME TAX—Withholding for household employees.

The Illinois Department of Revenue updated a publication relating to income tax withholding for household employees. The publication explains that employers of household employees that annually withhold more than $1,000 but no more than $12,000 must make monthly payments and file quarterly returns. Employers that annually withhold more than $12,000 must pay electronically on a semi-weekly basis and file quarterly returns. Employers that annually withhold $1,000 or less may file and pay on an annual basis. The updated bulletin also includes other revisions intended to clarify how employers must withhold tax from household employees. (Publication 121, Illinois Income Tax Withholding for Household Employees, Illinois Department of Revenue, dated 12/01/2010.)

PROPERTY—Circuit court lacked subject-matter jurisdiction.

An Illinois appellate court ruled that a circuit court lacked subject-matter jurisdiction to hear a case involving: (1) whether a 2008 foreclosure sale constituted an “initial sale” discontinuing preferential tax treatment pursuant to ILCS §200/10-30; and (2) whether ILCS §200/10-31 should apply retroactively to exempt the foreclosure sale from triggering the loss of the preferential assessment. The appellate court determined that, as a petition for administrative review, the circuit court did not have subject-matter jurisdiction because Illinois law does not provide for administrative review of board-of-review decisions. In addition, if the taxpayer's complaint was construed as a tax objection complaint, the circuit court could not have had jurisdiction because statutory requirements relating to tax objection complaints were not met. The record does not indicate that the taxpayer even alleged having paid the property taxes on the disputed lots under protest; the complaint did not contain a listing of the taxing districts; and the taxpayer failed to name the county collector as the defendant. (KT Winneburg, LLC v. Calhoun County Board of Review, Ill. App. Ct. (4th Dist.), Dkt. No. 4-10-0062, 09/09/2010 (not released for publication).)

PROPERTY—2009 Cook County equalization factor.

The Illinois Department of Revenue announced the final 2009 equalization factor of 3.3701 for Cook County. The Department is required by law to calculate the factor, also called the multiplier, to achieve uniform property assessment throughout Illinois. The 2008 final equalization factor was 2.9786. (Cook County Final Multiplier Announced, Illinois Department of Revenue, 09/29/2010.)

PUBLIC UTILITIES—Simplified municipal telecommunications tax—rate changes.

The Illinois Department of Revenue released a bulletin providing a list of municipalities that will increase their locally imposed simplified municipal telecommunications tax rates. The new rates take effect on January 1, 2011. (Illinois Dept. of Rev. Info. Bulletin FY 2011-03, 10/01/2010.)