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Disclaimer: This PowerPoint presentation is provided forgeneral informational purposes only. The informationcontained in this presentation should not be construed aslegal advice from the Illinois Department of Revenue or thepresenter for any purpose, including but not limited to theTaxpayers’ Bill of Rights, nor is it intended to be asubstitute for legal counsel on any subject matter. IDORadvises that audience members pursue appropriate legalor other professional advice when seeking guidance, basedupon their particular facts and circumstances.
Outline of Remarks PersonnelPositive newsRevenue flowsBudgetTax action highlightsDepartment actions4
Recent Key Personnel Actions Africa (Africa@Illinois.gov) Associate Director University of Washington / John Marshall Law School Comptroller’s office / Cook County Sheriff’s office Colin Bowes-Carlson (Colin.bowes-carlson@Illinois.gov) General Counsel Northwestern Univ / Benjamin Cardozo School of Law Baker & McKenzie, LLP David Reid (David.reid@Illinois.gov) Deputy General Counsel – Sales Tax Southern IL U / U of IL (MPA) / U of Miami Law / Emory U (LLM) Private practice5
Positive News Credit rating UPGRADE for Illinois Moody’s & S&P upgraded IL’s bond rating in July First upgrade in 20 years 17 straight previous downgrades Why the upgrades Reasonable and balanced budgets for 3 years Prudent spending plans6
Revenue Flows Positive revenue flows in virtually all tax categories Individual Income tax FY-to-Date - 6.7% from FY’21 BUT delay of 2020 tax payments to July (FY’21) FY’22 ahead by 180 million over forecast for current FY Sales tax FY-to-date 7.2% above FY’21, which was also a good year 288 million above forecast for current FY Corporate Income tax FY-to-date Approx 25% increase ( 360 million) despite delayed filing date 1 billion above forecast for current FY7
Revenue Flows Normal Year : IDoR receipts 48 billion FY’21 receipts exceeded 50 billion A 1.4 billion day “That’s a lot of scratch in one 24-hour period” FY’22 should again exceed 50 billion Based on FY Q1 receipts8
Income Tax ReceiptsIncome Tax Receipts 6,000,000,000 5,500,000,000 5,000,000,000 4,500,000,000 4,000,000,000 3,500,000,000 3,000,000,000 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000,000 500,000,000 -JanuaryFebruaryMarchAprilMay2019 2021 Y-T-DIncome tax receipts from January to September 2021 are up 21.5% and 20.3% compared to the same time periods in 2020and 2019Business income tax receipts were up nearly 92% in September 2021 compared to September 2020Individual income tax receipts were up 13% in September 2021 compared to September 20209
Sales & Use Tax ReceiptsSales and Use Tax Receipts 2,000,000,000 1,900,000,000 1,800,000,000 1,700,000,000 1,600,000,000 1,500,000,000 1,400,000,000 1,300,000,000 1,200,000,000 1,100,000,000 1,000,000,000 900,000,000 800,000,000 700,000,000 600,000,000 500,000,000JanuaryFebruaryMarchAprilMay2019 2021 Y-T-DSales and use tax receipts from January to September 2021 are up 22% and 17% compared to the same time periods in 2020 and2019Tax receipts from the sale of durable and non-durable goods are fueling the increase, while sales taxes on transportation andrecreation services continue to struggle during the pandemicLevel the Playing Field statutory changes required remote retailers and marketplace facilitators to register, collect and remitretailers’ occupation sales taxes in January 202110
Monthly Adult Use Cannabis SalesJanuary 2020-September 202111
Total Monthly Cannabis Tax ReceiptsFY21 Total - 317,074,561.87FY22 (July – September) - 116,487,419.7312
FY’22 State Budget FY’22 Revenues: 44,367 billion FY’22 Expenditures: 44, 279 billion Includes ARPA reimbursement Includes MLF paydown Includes Interfund repayment FY’22 Surplus: 88 million13
Some Tax Highlights Limit NLDs to 100k for 3 yearsEliminate 100% bonus depreciationAlign treatment of foreign/domestic dividendsPass-through entities elect to pay tax at entity levelEliminate 10,000 cap on vehicle trade-inWater & Sewer Low-income Assistance Fund Voluntary / Muni would have to file 20th of every month Electric Vehicle & supplier legislation – effective immediately Major expansion of EDGE incentives for busn development Income / Construction / Withholding / Utility : credit or exempt NLDs extended to 20-yr carry forward if not expired Passed with large bi-partisan support14
Department Actions Auto recompute 370,000 tax returns Feb tax filing vs Mar enactment date of ARPA ( 10,200 UInon-tax) 136 million to taxpayers EIC outreach to 34,600 taxpayers Fed EITC but not IL EIC : 11,338 EIC refunds for 6.03 million New website design User friendly / graphically more welcoming IDoR’s YouTube channel / video highlights E.g., Two-factor authentication New strategic plan15
DAVID HARRIS, DirectorPhoneE-mail:Website217-785-7570 s.gov16
Tax LegislationLegislation by the Numbers 7,133 bills have been introduced in the first year of the 102ndGeneral Assembly (as of Oct 22, 2021) 4,189 in the House2,944 in the Senate The Department tracked approximately 650 bills Excluding vehicle or shell bills, there have been over 450 bills proposingchanges to Illinois’ tax code18
Income Tax LegislationPublic Act 101-0009 Creates the Blue Collar Jobs Act- Creates a High Impact Business and Enterprise Zone constructionjobs credit- 50% of the incremental income tax, generally- 75% of the incremental income tax, if in an underserved area- Caps the credit at 20 million per State Fiscal Year- Effective for tax years beginning on or after Jan 1 ,202119
Income Tax LegislationPublic Act 102-0016 (Senate Bill 2017) FY 2022 Budget Implementation Act- Decouples Illinois from the federal 100% bonus depreciation (TYE on orafter Dec 31, 2021)- Equalizes treatment of foreign-sourced dividends with domesticdividends (TYE on or after Jun 30, 2021)- Caps the use of NOLs at 100,000 (TYE on or after Dec 31, 2021, andprior to Dec 31, 2024)20
Income Tax LegislationPublic Act 102-0016 (Senate Bill 2017) EDGE Tax Credit Extension - Requires DCEO to allow for anextension of EDGE tax credits of 5 to 10 years. Tax Credit Extensions-Affordable housing donations - TYE on or before Dec 31, 2026Angel investment credit - TYE on or before Dec 31, 2026River Edge Historic Preservation credit - TYE prior to Jan 1, 2027Live theater production credit - TYE prior to Jan 1, 202721
Income Tax LegislationPublic Act 102-0016 (Senate Bill 2017) Invest in Kids Act Changes- Allows donations to technical academies- Extends the Invest in Kids credit to TYE prior to Jan 1, 2024 (currently TYEprior to Jan 1, 2023)22
Income Tax LegislationPublic Act 102-0289 (Senate Bill 340) Extends credit for student assistance contributions to TYE on orbefore Dec 31, 202423
Income Tax LegislationPublic Act 102-0658 (Senate Bill 2531) Creates a State and Local Tax (SALT) workaround for pass-through entitiesby creating an entity-level elective tax Effective TYE on or after Dec 31, 2021 and prior to Jan 1, 202624
Sales Tax LegislationPublic Act 102-0353 (Senate Bill 58) Amends the definition of “selling price” to eliminate the 10,000 trade-incap on vehicles Changes the tax rates on private party vehicle sales Effective Jan 1, 202225
Sales Tax LegislationPublic Act 102-0016 (Senate Bill 2017) Extends sales tax exemption on menstrual pads to Dec 31, 2026 Provides the tax rate on food prepared for immediate consumption andtransferred incident to a sale of service by a licensed Assisted LivingFacility or Life Care Facilities is 1%26
Sales Tax LegislationPublic Act 102-0634 (Senate Bill 2066) Provides that “marketplace facilitator” does not include any personlicensed under the Auction License Act Provides an exemption for sales of tangible personal property made by amarketplace seller over a marketplace for which tax is due under the ROTAct but for which use tax has been collected by the marketplace- For sales occurring on January 1, 2020 through December 31, 202027
Tax LegislationPublic Act 102-0040 (Senate Bill 2279) Department of Revenue’s tax omnibus legislative package- Numerous provisions- Amends several tax acts to automatically extend the statute oflimitations six (6) months if a claim for credit or refund is filed withinsix (6) months of the statute of limitations expiring- Allocates winnings from sports wagering to Illinois and requireswithholding if required federally- EDGE credit recapture28
Richard Sgro, Legislative s.govWebsite tax.Illinois.gov29
APA Operations by DivisionCentral Processing Bureau – Conny Mueller Moody Individual Processing – Kristi Dailey Business Processing Sales & Excise Tax Processing Alcohol, Tobacco & Fuel – Kathleen BlessingReturns & Deposits Operations Bureau – Kevin Anguish Document Control & Deposit – Phillip James Data Entry – Wes Poos Chicago Operations – Sandra Means Electronic Commerce – Terry Dill Records Management3131
Account Processing AdministrationCentral Processing Bureau Update3232
APA Success StoryARPA 2021 – Non-Taxable Unemployment Compensation Tax filing season in Illinois opened February 12, 2021 President Biden signed the American Rescue Plan Act of 2021(ARPA) into law on March 11, 2021 ARPA was designed to change the course of the pandemic and builda bridge toward economic recovery The plan included a retroactive provision making the first 10,200per taxpayer of unemployment compensation nontaxable forreturns33
APA Success StoryARPA 2021 – Non-Taxable Unemployment Compensation IDOR recalculated 2020 returns filed electronically before March15th and notified taxpayers of the systemic adjustment and theamount of any refund due More than 363,000 Illinois taxpayers received an estimated 136million in unanticipated refunds Taxpayers, some who were adversely affected by the COVIDpandemic, received needed funds IDOR saved an estimated 1.5 million in personnel costs becausestaff did not have to process paper amended tax returns34
APA UpdatesIndividual Processing During 2021, processing backlog was reduced by more than68,000 work items compared to the same time last year. Even though there was a 130% increase in the number of returnsidentified as potentially being fraudulently filed, identityverification responses continued to be processed as a priority.35
APA UpdatesIL-1040 Anti-Fraud Efforts 2014 had an overallsavings of 4,500,000 2015 had an overallsavings of 6,002,628 2016 had verifiedmoney savings of 19,164,454 2017 had verifiedmoney savings of 31,294,897 2018 had verifiedmoney savings of 68,461,457 2019 had verifiedmoney savings of 117,070,317 2020 had verifiedmoney savings of 98,490,000 2021 - To bereleased36
APA UpdatesTaxpayer Responses Via MyTax Illinois Beginning in 2020, taxpayersmay electronically submitresponses to 2019 and laterindividual income tax noticesvia MyTax Illinois, IDOR’s onlinetaxpayer account managementportal. Submitting a responseelectronically through MyTaxIllinois provides taxpayers withan immediate verification theirresponse is received and iteliminates or reduces delaysassociated with the traditionalprocess of mailing a paperresponse to IDOR.37
APA UpdatesBusiness Tax Processing IL-990-T & IL-1041 with tax year beginning 1/1/2021 and afterwill no longer be able to file via MyTax DCEO and other income tax credit certifications may beattached when filing 2021 electronic BIT returns via MeF(Modernized e-File) 100,000 Net Loss Deduction limit for Corporations Foreign Dividend Reporting Changes for Corporate Filers- Bulletin FY 2021-27 – June 202138
APA UpdatesSales & Excise Tax Processing Effective 1/1/21, “Level the Playing Field” for the Illinois Retail Actrequires remotes retailers to remit State and local retailers'occupation taxesLevel the Playing Field for Illinois Retail Act Resource Page Effective 1/1/22, P.A. 102-0353 removes the 10,000 trade-in creditlimit for sales and purchases of first division motor vehiclespreviously established by P.A. 101-0031 and increases the privateparty vehicle use tax rates- Bulletin FY 2022-0239
APA UpdatesSales & Excise Tax Processing Effective 1/1/22, P.A. 102-0262 creates the Water andSewer Assistance Charge to be collected by water andsewer providers who opt into the program in order toassist qualifying low-income households with their waterand sewer utility costs Effective 1/1/22, P.A. 102-0662 creates the EnergyTransition Assistance Fund to allocate funding fromratepayers to support state clean energy programs40
Account Processing AdministrationReturns & Deposit Operations BureauUpdate41
APA UpdatesElectronic Individual Income Tax Statistics Year to Date, October 25, 2021 – 5,584,852 IndividualIncome tax returns were filed electronically. As of October 25, 2020 – 5,591,246 Individual Income taxreturns were filed electronically.This is a decrease of 0.1% from the prior year.42
APA UpdatesElectronic Business Return StatisticsYear to Date - October 25, 2021 – 581,496 Business Incometax returns were filed electronically. 259,193 IL-1120-ST Up 5.8% 141,668 IL-1065 Up 6.6% 103,455 IL-1041 Up 3.5% 77,180 IL-1120 Up 5.7%As of October 25, 2020 – 550,930 Business Income taxreturns were filed electronically. 245,064 IL-1120-ST 132,873 IL-1065 99,986 IL-1041 73,007 IL-1120This is an increase of 5.5% or 30,566 returns from the prioryear.43
APA Updates2021 v 2020 Payment Filing Statistics2021 to 2020 Payment Type Comparison: Jan 1 to Oct 222021: Jan 1 to Oct 22ACH & Wireless TransfersIIT Direct File VendorsJetPay (All Taxes)Total Credit Card Payments2020: Jan 1 to Oct 22Revenue7,196,370 36,085,906,6545.80%21.90%109,559 58,027,50792,319 46,985,37518.67%23.50%25,113 6,128,49020,975 4,223,32319.73%45.11%64,155,997113,294 51,208,69818.87%25.28%Total Electronic Payments7,748,657 44,054,424,400IDOR Processed Items1,565,368 2,229,209,641Grand TotalItems43,990,268,403 Total Paper DepositsPercent Change7,613,985 134,672Lockbox ItemsPercent Change7,309,664 36,137,115,3536.01%21.91%1,626,746 2,006,554,721-3.77%11.10%742,322 2,012,829,4921,850,519,383-9.40%8.77%2,307,690 4,242,039,1332,446,069819,323 3,857,074,105-5.66%9.98%10,056,347 48,296,463,5339,755,733 39,994,189,4573.08%20.76%44
Kevin Richards, Program illinois.govWebsitetax.Illinois.gov45
Secure Choice OverviewSecure Choice Retirement Savings Program Promotes convenient, low-cost, portable savings for private-sectoremployees Illinois Treasurer’s Office is over the Illinois Secure Choice SavingsProgram but Ascensus has been selected to administer theretirement savings program www.ILsecurechoice.com47
Secure Choice BackgroundInitial Legislation qualifications Employers with 25 or more employees Employers in business 2 years Employers that did not already offer a qualified retirement savingsplan Pilot began May 2018 then three wavesWaveRegistration EnrollmentDeadlineDeadlinePayrollSTO/ACS STO/ACSDeadline 1st Notice 2nd NoticeSTO/ACS3rd NoticePilotMay 2018May 2018Jul 2018n/an/a1st – 500 Oct 2018Nov 2018Jan 2019Mar 2019Jun 2019Oct 20192nd – 100-499 May 2019Jul 2019Sep 2019Nov 2019Feb 2020May 20203rd – 25-99Nov 2019Jan 2020Mar 2020Jun 2020Oct 2020Oct 2019n/a48
Secure Choice Legislation2021 Secure Choice Amendment Expanded program to include employers with 5 employees Employers with 15-24 employees have until 09/01/2022 to enroll Employers with 5-14 employees have until 09/01/2023 to enroll49
Secure Choice EnforcementIDOR’s Roll in Secure Choice Enforcement Arm Penalties will become operative in calendar year 2022 First time non-compliant penalty 250/employee Subsequent non-compliance penalty is 500/employee50
Secure Choice and Tax ProfessionalsMake sure your taxpayers have responded If employer is already offering a qualified retirement savingsprogram, contact Secure Choice/Ascensus to let them know. Theywill mark business as exempt Employers without a qualified retirement savings program willneed to register business with EIN/TIN and Illinois Secure Choiceaccess code (found on correspondence) Employers just need to inform employees that this is an option. Employees can opt out of program51
Whitney Elders, Public Service Illinois.govWebsitetax.Illinois.gov52
Phyllis.Rochelle@illinois.gov
Audit UpdateNew Audit Management Phyllis Rochelle – Field Compliance Division Manager – Sales Tax Phyllis.Rochelle@illinois.gov Wanda Dixon – Field Compliance Division Manager – Income Tax Wanda.Dixon@illinois.gov Martha Heneghan – Audit Discovery & Recovery Division Manager Martha.Heneghan@illinois.gov54
Audit UpdateHappenings in Audit Fast Track Resolution (FTR) Program History of FTR Description of the FTR Process Current FTR Statistics55
Audit UpdateHappenings in Audit Virtual Audit Room (VAR) Description of VAR How Taxpayer Shares Information56
Audit UpdateHappenings in Audit GenTax Integration IFTA-May 2020 Rollout Income Tax-September 2021 Rollout ROT & Miscellaneous Taxes-Planned September 2022 Rollout57
Audit UpdateHappenings in Audit Earned Income Credit (EIC) Initiative Goal of EIC Initiative Success of EIC Initiative EIC 2.058
Audit UpdateHappenings in Audit Local Government Revenue Recapture Act Referral from Local Government or 3rd Parties Qualified Practitioner Training59
Audit UpdateHappenings in Audit Future Hiring Income Tax Division-January 2022 Sales Tax Division-Fall 202260
Phyllis Rochelle, CPA, MPA-Field Compliance Division Manager-Sales .govWebsitetax.Illinois.gov61
Informal Conference Board (ICB)ICB’s role is to review proposed audit adjustments prior to theissuance of a protestable notice and to attempt to resolve theissues presented.Inventory as of 10/15/2021 Assessments over 135 million Claims over 94 million 90 Income Tax Cases 101 Sales and Miscellaneous Tax Cases63
Informal Conference Board (ICB)What’s happening? Conferences In Person, WebEx, Telephone ICB Email Address REV.ICB@Illinois.gov ICB-1 Email Address Cell Phone ICB-2 By Issue64
Informal Conference Board (ICB)Process Limits Issues included in ICB-1 No Reauditing Information Requests Settlements65
If you would like to discuss anything about the ICBprocess after today’s presentation, please contactDan Hall, ICB administrator at:dan.hall@Illinois.gov or 217-785-6587Patricia Skiba, ICB ois.govWebsite tax.Illinois.gov66
MyTax Illinois UpdatesNew Homepage Updated lookand feel Mobile friendly68
MyTax Illinois UpdatesTwo-step Verification69
MyTax Illinois UpdatesLogged-in Users Summary, Action Center, and More Keyword Search70
MyTax Illinois UpdatesResponding to Correspondence MyTax Illinois account is required Letter must be for tax year 2019 or later71
MyTax Illinois UpdatesPower of Attorney Submission72
Other UpdatesInteracting with our Virtual AssistantOriginal QuestionResponseWhere can I get a list of sales tax rates?Related Link(s)Related Question(s)73
Other UpdatesIL-1040 Filing Tips File your return electronically Enter your correct Social Security number (SSN) and name Enter the county when claiming a Property Tax Credit Enter the correct amount of estimated payments made Include any required attachments Mark the third-party designee box, if applicable74
Other UpdatesTaxpayer Services Management Update Vicki Clark – Division Manager – Taxpayer Assistance Retired in May 2021 Brock Reynolds – Division Manager – Taxpayer Assistance Started in August 2021 brock.reynolds@illinois.gov75
Other UpdatesContact us by emailIndividual IncomeTaxBusiness IncomeTax or WithholdingSales TaxMyTax Illinois Help REV.TA-IIT@illinois.gov REV.TA-BIT-WIT@illinois.gov REV.TA-Sales@illinois.gov REV.MyTaxHelp@illinois.gov76
Other UpdatesContact us by phoneTaxpayerAssistance 1 800-732-8866 1 217-782-3336BusinessHotline 1 217-524-4772Additional contact information is available at tax.illinois.gov77
Cannabis TaxRevenues and Distributions 82.8 million in cannabis revenues distributed to localrevenuecollectionsof over 317 millionFY21 salesof over 1 billiongovernments in FY2178
Max Letterly – Program linois.govWebsitetax.Illinois.gov79
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Income Tax Rulemaking86 IAC 100.2164 Data Center Investment Credit 45 Ill. Reg. 5523 (eff. April 30, 2021) The adopted rule implements new Section 229 of the Illinois Income TaxAct, as created by PA 101- 31 and amended by 101-604. For tax yearsbeginning on or after January 1, 2019, allows a credit to be awarded by theIllinois Department of Commerce and Economic Opportunity under 20 ILCS605/605-1025(b). The amount of the credit is equal to 20% of the wagespaid during the taxable year to a full-time or part-time employee of aconstruction contractor employed by a certified data center if those wagesare paid for the construction of a new data center in a geographic area thatmeets certain socio-economic criteria.82
Income Tax Rulemaking86 IAC 100.3220 Allocation of Nonbusiness Income86 IAC 100.3370 Sales Factor86 IAC 100.7030 Payments to Residents86 IAC 100.7036 Withholding of Lottery and Gambling Winnings 45 Ill. Reg. 2006 (eff. January 29, 2021) This rulemaking implements the amendments PA 101-31 made to Sections303, 304 and 710 of the Illinois Income Tax Act. For tax years ending on orafter December 31, 2019, all horse racing and casino winnings under theIllinois Horse Racing Act of 1975 and the Illinois Gambling Act (formerly theIllinois Riverboat Gambling Act) are allocable to Illinois and withholding isrequired.83
Administrative Hearings Rulemaking86 IAC 200.175Rehearings 45 Ill. Reg. 7970 (First Notice June 25, 2021) This proposed rulemaking clarifies that the Department has the authority togrant late discretionary hearings for Notices of Deficiency issued under theIncome Tax Act in the same manner as Notices of Tax Liability issued underthe Retailers' Occupation Tax Act. The authority to grant late discretionaryhearings was provided in PA 97-1129.84
Hot TopicsPass Through Entity Tax (AKA SALT cap workaround) Election made upon filing IL-1065 or IL-1120-STNo Late ES penalties the first yearUse IL-1065-V or IL-1120-ST-V to make voluntary pre-paymentsSchedule CR InstructionsFAQ85
What is the Pass-through Entity (PTE) tax?The Pass-through Entity (PTE) tax is an entity-level income tax that partnerships (other than publicly traded partnerships under IRC 7704)and subchapter S corporations may elect to pay effective for tax years ending on or after December 31, 2021. The PTE tax rate is equal to4.95% of the taxpayer's net income for the taxable year. A partnership or S corporation making the election is liable for paying the PTE tax. Ifthe electing partnership or S corporation fails to pay the full amount of tax deemed assessed, the partners or shareholders shall be liable topay the tax assessed (including penalties and interest).The election to pay the PTE tax is made on Form IL-1065, Partnership Replacement Tax Return, or Form IL-1120-ST, Small BusinessReplacement Tax Return, for tax years ending on or after December 31, 2021. When a partnership or S corporation makes the election topay the entity-level tax, it is required to make quarterly estimated payments if the expected tax due (including both the Pass-through entitytax and replacement tax) is more than 500 or incur late estimated payment penalties per Illinois Income Tax Act Section 804. However, theIllinois Department of Revenue will waive late estimated payment penalties related to an election to pay the PTE tax for tax years endingbefore December 31, 2022. Taxpayers are encouraged to make voluntary prepayment of the pass-through entity tax to reduce any taxpayment due when the return is filed. These prepayments can be made electronically using MyTax Illinois or ACH Credit or by mail using 2021 Form IL-1065-V, Payment Voucher for Partnership Replacement Tax, or 2021 Form IL-1120-ST-V, Payment Voucher forSmall Business Corporation Replacement Tax.The penalty relief only applies to partnerships and subchapter S corporations that elect to pay PTE tax. Partners and shareholders of theseentities are not eligible for the penalty relief. However, partners and shareholders may claim a tax credit against their own tax liability fordistributive shares of the PTE tax credit and may adjust their estimated payments accordingly.86
Brian llinois.gov87
Adopted Rules – Sales/ExciseLeveling the Playing Field for Illinois Retail Act - Page 1December 31, 2020 – Rules filed forlegislation that amended the Retailers'Occupation Act to implement a series ofstructural changes to the Illinois sales taxlaws to require "remote retailers" tocollect and remit local retailers' occupationtaxes. The Act levels the playing field byrequiring remote retailers and marketplacefacilitators to pay State and Local salestaxes like Illinois based retailers.Rules: 86 Ill. Adm. CodeSections 131.101, 131.105,131.107, 131.110, 131.115,131.120, 131.125,131.130, 131.135, 131.140,131.145, 131.150, 131.155,131.160, 131.165, 131.170,131.175 and 131.180.Of these, 86 Ill. Adm. CodeSection 131.155 containstax sourcing provisions.88
Adopted Rules – Sales/ExciseLeveling the Playing Field for Illinois Retail Act - Page 2July 13, 2021* - Emergency Rules for theMetropolitan Pier and ExhibitionAuthority Retailers' Occupation Act tax(MPEA) and Chicago Home RuleMunicipal Soft Drink Tax (Soft Drink Tax)requiring that these taxes be collectedand remitted by food delivery servicesthat are considered marketplacefacilitators meeting a tax remittancethreshold.*Modified 9/17/2021Rules: 86 Ill. Adm. CodeSections 131.105, 131.107,131.110, 131.120, 131.125,131.130, 131.135, 131.140,131.145, 131.150, 131.155,131.160, 131.170, 131.175,and 131.Illustration A.89
Adopted Rules – Sales/ExciseLeveling the Playing Field for Illinois Retail Act - Page 3July 13, 2021* - Emergency Rules continuedThese rules also apply sales taxes to various types of businessesthat meet certain thresholds. The thresholds are: 100,000 or more in cumulative gross receipts from sales oftangible personal property to purchasers in Illinois; or 200 or more separate transactions for the sale of tangiblepersonal property to purchasers in Illinois.For marketplaces, these thresholds are the cumulative totals madeover the marketplace by both the marketplace facilitator andmarketplace sellers.*Modified 9/17/202190
Adopted Rules – Sales/ExciseMunicipal Motor Fuel Tax/County Motor Fuel (Cook)December 21, 2020 - Authorizesmunicipalities in Cook County toimpose, beginning on July 1, 2020,a tax upon all persons engaged inthe municipality in the business ofselling motor fuel at retail at a ratenot to exceed 0.03 per gallon.Rules: 86 Ill. Adm. CodeSections 696.105, 696.110,696.115, 696.120, 696.125,696.13091
Adopted Rules – Sales/ExciseROT/ Criminal InvestigationDecember 21, 2020 - Provides thatit is an official purpose of theDepartment to furnish informationthat it receives in administering theRetailers' Occupation Tax Act withthe law enforcement authority.Rules: 86 Ill Adm. Code130.91592
Adopted Rules – Sales/ExciseCannabis Purchaser Excise TaxMarch 9, 2021 - BeginningJanuary 1, 2020, a tax is imposedupon purchasers for the privilegeof using cannabis at certain ratesof the purchase price.Rules: 86 Ill. Adm. CodeSection 423.10593
Adopted Rules – Sales/ExciseTax-Free PurchasesJune 3, 2021 – Provides rules for taxexempt entities, including theiremployees and representatives, toallow them to make tax exemptpurchases of tangible personal propertyin furtherance of the organizationalgoals of the tax exempt entities, usingtheir own funds and paying by cash,credit card, etc.Rules: 86 Ill. Adm. Code130.208194
Adopted Rules – Sales/ExciseVehicle Use Tax/Dissolution of MarriageSeptember 21, 2021 - Applies areduced tax rate of 15.00 when atransfer of a motor vehicle occurspursuant to a dissolution of marriageand the motor vehicle is transferredfrom one spouse to the other.Rules: 86 Ill. Adm. Code151.105, 151.11095
David s.gov96
Update 11/01/2020 – 10/31/2021 Administrative Hearing Cases 166 cases filed (up from last year’s 160) Tax Tribunal Cases 26 cases filed (down from last year’s 41) No Hearing Requested Cases 117 (down from last year’s 121)98
Common IssuesAdministrative Hearings/Tax Tribunal Exclusion of entity from Unitary Business Group (UBG) based on80/20 Personal Service Deduction cases, Personal Service Income (PSI),and the correct entity that should be claiming the PSI Business/Non Business income issues Responsible Officer Residency99
Tax Tribunal Case Files20 TT 131; Sidney Glenner;20 TT 132; Sidney Glenner;20 TT 135; Transportation Inc.;20 TT 141; Faizan Ghani;21 TT 001; Carl Bednara;21 TT 009; Professional Freezing Services II;21 TT 026; Trane Technologies Company LLC;21 TT 028; Calloway Golf Sales Company LLC;21 TT 036; Evonik Corporation;21 TT 040; DDL, LLC;21 TT 049; Eileen Casler;Resp. OfficerResp. Officer100
Tax Tribunal Case Files (cont.)21 TT 050; John E. and Kathleen A Gorman; Residency21 TT 053; Luis Quezada and Solange Paredes;21 TT 055; Ashli L. Wesley;21 TT 06
Income tax receipts from January to September 2021 are up 21.5% and 20.3% compared to the same time periods in 2020 and 2019 Business income tax receipts were up nearly 92% in September 2021 compared to September 2020 Individual income tax receipts were up 13% in September 2021 compared to September 2020 9
