a) Except as noted
hereinafter, at the same time that a tax return required by the provisions of
the Act is filed with the Department, the taxpayer shall pay the tax that is
due with such return to the Department.
b) Before October 1, 2000, if the taxpayer's
average monthly tax liability to the Department under the Retailers' Occupation
Tax Act, the Use Tax Act, the Service Occupation Tax Act, the Service Use Tax
Act, excluding any liability for prepaid sales tax to be remitted in accordance
with Section 2d of the Act, was $10,000 or more during the preceding 4 complete
calendar quarters, he shall file a return with the Department each month by the
20
th day of the month next following the month
during which such tax liability is incurred and shall make payments to the
Department on or before the 7
th,
15
th, 22
nd and last day
of the month during which such liability is incurred. If the month during which
such tax liability is incurred begins on or after January 1, 1988 and prior to
January 1, 1989, each payment shall be in an amount equal to 22.5 % of the
taxpayer's actual liability for the month or 25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1, 1989, and prior to
January 1, 1996, each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 25% of the taxpayer's liability
for the same calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. If the month during
which such tax liability is incurred begins on or after January 1, 1996, each
payment shall be in an amount equal to 22.5% of the taxpayer's actual liability
for the month or 25% of the taxpayer's liability for the same calendar month of
the preceding year. The amount of such payments shall be credited against the
final tax liability of the taxpayer's return for that month. Prior to January
1, 1999, if any such payment is not paid at the time or in the amount required
in this subsection, then the taxpayer's 2%, 2.1 % or 1.75 % vendors' discount
shall be reduced by 2%, 2.1% or 1.75% of the difference between the minimum
amount due as a payment and the amount of such quarter monthly payment actually
and timely paid, and the taxpayer shall be liable for penalties and interest on
such difference except insofar as the taxpayer has previously made payments for
that month to the Department in excess of the minimum payments previously due
as provided in this Section. Beginning on and after January 1, 1999, if any
such payment is not paid at the time or in the amount required in this
subsection, then the taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due as a payment and the amount of such
quarter monthly payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the Department in
excess of the minimum payments previously due as provided in this Section.
On and after October 1, 2000, if the taxpayer's average
monthly tax liability to the Department under the Act, the Use Tax Act, the
Service Occupation Tax Act, and the Service Use Tax Act, excluding any
liability for prepaid sales tax to be remitted in accordance with Section 2d of
the Act, was $20,000 or more during the preceding 4 complete calendar quarters,
he shall file a return with the Department each month by the 20th day of the
month next following the month during which such tax liability is incurred and
shall make payment to the Department on or before the 7th, 15th, 22nd and last
day of the month during which such liability is incurred. (Section 3 of the
Act)
c) Before October 1,
2001, without regard to whether a taxpayer is required to make quarter monthly
payments as specified above, any taxpayer who is required by Section 2d of this
Act to collect and remit prepaid taxes and has collected prepaid taxes which
average in excess of $25,000 per month during the preceding 2 complete calendar
quarters, shall file a return with the Department as required by Section 2f and
shall make payments to the Department on or before the 7th, 15th, 22nd and last
day of the month during which such liability is incurred. If the month during
which such tax liability is incurred begins on or after January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's actual liability
for the month or 26.25 % of the taxpayer's liability for the same calendar
month of the preceding year. The amount of such quarter monthly payments shall
be credited against the final tax liability of the taxpayer's return for that
month filed under this Section or Section 2f, as the case may be. Once
applicable, the requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until such taxpayer's
average monthly prepaid tax collections during the preceding 2 complete
calendar quarters is $25,000 or less. If any such quarter monthly payment is
not paid at the time or in the amount required, the taxpayer shall be liable
for penalties and interest on such difference, except insofar as the taxpayer
has previously made payments for that month in excess of the minimum payments
previously due. (Section 3 of the Act)
On and after October 1, 2001, without regard to whether a
taxpayer is required to make quarter monthly payments as specified above, any
taxpayer who is required by Section 2d of the Act to collect and remit prepaid
taxes and has collected prepaid taxes that average in excess of $20,000 per
month during the preceding 4 complete calendar quarters shall file a return
with the Department as required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the month during
which the liability is incurred. Each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or 25% of the taxpayer's
liability for the same calendar month of the preceding year. The amount of the
quarter monthly payments shall be credited against the final tax liability of
the taxpayer's return for that month filed under this Section or Section 2f of
the Act, as the case may be. Once applicable, the requirement of the making of
quarter monthly payments to the Department pursuant to this paragraph shall
continue until the taxpayer's average monthly prepaid tax collections during
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than $19,000 or until such
taxpayer's average monthly liability to the Department as computed for each
calendar quarter of the 4 preceding complete calendar quarters is less than
$20,000. If any such quarter monthly payment is not paid at the time or in the
amount required, the taxpayer shall be liable for penalties and interest on
such difference, except insofar as the taxpayer has previously made payments
for that month in excess of the minimum payments previously due. (Section 3 of
the Act)
d) If any such
payment or deposit provided for herein exceeds the taxpayer's present and
probable future liabilities under the Retailers' Occupation Tax Act, the Use
Tax Act, the Service Occupation Tax Act and the Service Use Tax Act, the
Department shall, if requested by the taxpayer, issue to the taxpayer a credit
memorandum, which may be submitted by the taxpayer to the Department in payment
of tax liability subsequently to be remitted by the taxpayer to the Department
or be assigned by the taxpayer to a similar taxpayer under the Retailers'
Occupation Tax Act, the Use Tax Act, the Service Occupation Tax Act or the
Service Use Tax Act. If no such request is made, the taxpayer may credit such
excess payment against tax liability subsequently to be remitted to the
Department under the Act, the Use Tax Act, the Service Occupation Tax Act or
the Service Use Tax Act. If the Department subsequently determines that all or
any part of the credit taken was not actually due to the taxpayer, the
taxpayer's 2.1% and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
of the difference between the credit taken and that actually due, and that
taxpayer shall be liable for penalties and interest on such
difference.
e) For the purposes of
this Section, the phrase "preceding 4 complete calendar quarters" means the
preceding 4 complete calendar quarters for which returns would have been filed
or should have been filed for the last month of the 4 quarter period since,
until then, the making of the required computations for the 4 quarter period
would be impossible. For example, the preceding 4 complete calendar quarters
with reference to a November 1, 1976, date would actually have ended June 30,
1976, since most returns for the last month of that 4 quarter period would not
have to have been filed until July 31, 1976, and the preceding 4 complete
calendar quarters with reference to a July 1, 1977, date would actually end
March 31, 1977, since most returns for the last month of that 4 quarter period
would not have to be filed until April 30, 1977. The calendar quarters are
January through March, April through June, July through September and October
through December.
f) Beginning
October 1, 1993, a taxpayer who has an average monthly tax liability of
$150,000 or more shall make all payments required by rules of the Department
(see 86 Ill. Adm. Code
750 "Payment of Taxes by Electronic Funds Transfer") by
electronic funds transfer. Beginning October 1, 1994, a taxpayer who has an
average monthly tax liability of $100,000 or more shall make all payments
required by rules of the Department by electronic funds transfer. Beginning
October 1, 1995, a taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the Department by
electronic funds transfer.
g)
Beginning October 1, 2000, a taxpayer who has an annual tax liability of
$200,000 or more shall make all payments required by rules of the Department by
electronic funds transfer (see 86 Ill. Adm. Code
750). The term "annual tax
liability" shall be the sum of the taxpayer's liabilities under the Retailers'
Occupation Tax Act, and all other State and local occupation and use tax laws
administered by the Department, for the immediately preceding calendar year.
(Section 3 of the Act)
