Bill Text: IL HB2574 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Provides that any person required to file a federal Form 1099 with respect to a nonresident who performed services within the State during the taxable year shall file a copy of that form with the Department of Revenue. Provides that a third-party settlement organization that is required to file an information return under certain provisions of the Internal Revenue Code shall, within 30 days of the date the filing is due to the Internal Revenue Service, file a duplicate return with the Department of Revenue. Provides that third-party network transactions are subject to the $600 de minimis reporting requirements set forth in the Internal Revenue Code, rather than the de minimis reporting requirements otherwise applicable to third-party settlement organizations under the Internal Revenue Code.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-29 - House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB2574 Detail]
Download: Illinois-2019-HB2574-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by adding | ||||||||||||||||||||||||
5 | Section 502.2 as follows:
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6 | (35 ILCS 5/502.2 new) | ||||||||||||||||||||||||
7 | Sec. 502.2. Third-party settlement organizations; | ||||||||||||||||||||||||
8 | reporting. | ||||||||||||||||||||||||
9 | (a) As used in this Section: | ||||||||||||||||||||||||
10 | "Third-party network transaction" means any transaction | ||||||||||||||||||||||||
11 | that is settled by a third-party settlement organization. | ||||||||||||||||||||||||
12 | "Third-party settlement organization" means a central | ||||||||||||||||||||||||
13 | organization that has the contractual obligation to make | ||||||||||||||||||||||||
14 | payments to participating payees of third-party network | ||||||||||||||||||||||||
15 | transactions. | ||||||||||||||||||||||||
16 | (b) Any person required to file a federal Form 1099 with | ||||||||||||||||||||||||
17 | respect to a nonresident who performed services within the | ||||||||||||||||||||||||
18 | State during the taxable year shall file a copy of that form | ||||||||||||||||||||||||
19 | with the Department. The Department may authorize electronic | ||||||||||||||||||||||||
20 | filing of the Form. The Department shall adopt rules setting | ||||||||||||||||||||||||
21 | forth any documentation that must be submitted with the form. | ||||||||||||||||||||||||
22 | (c) Any person required to file an information return | ||||||||||||||||||||||||
23 | pursuant to Section 6050W of the Internal Revenue Code shall, |
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1 | within 30 days of the date the filing is due to the Internal | ||||||
2 | Revenue Service, file with the Department a duplicate of each | ||||||
3 | such information return on which the recipient has an Illinois | ||||||
4 | address. In addition, at the same time the information in this | ||||||
5 | subsection is required, third-party settlement organizations | ||||||
6 | shall report to the Department and to any participating payee | ||||||
7 | with a Illinois address any information required by Section | ||||||
8 | 6050W of the Internal Revenue Code with respect to third-party | ||||||
9 | network transactions related to that participating payee; | ||||||
10 | those reports shall be made as if the de minimis limitations of | ||||||
11 | subsection (e) of Section 6050W of the Internal Revenue Code | ||||||
12 | did not apply, but the de minimis limitations of subsection (a) | ||||||
13 | of Section 6041 of the Internal Revenue Code did apply. The | ||||||
14 | Department may adopt rules and authorize electronic filing of | ||||||
15 | the information required by this subsection. | ||||||
16 | (d) A failure to provide the information required by this | ||||||
17 | Section shall be considered a failure to provide a return or | ||||||
18 | return information and shall incur liability for any attendant | ||||||
19 | penalties.
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