Electronic Fund Transfer and Estimated Payments

Section 511 Section 511.120  Electronic Fund Transfer and Estimated Payments a)         Estimated payments 1)         A taxpayer whose average monthly liability to the Department under the Law was $10,000 or more during the preceding calendar year, excluding the month of highest liability and the month of lowest liability in such calendar year, and who is not operated by a unit of local government, shall make estimated payments to the Department on or before the 7 th , 15 th , 22 nd and last day of the month during which tax liability to the Department is incurred in an amount not less than the lower of either 22.5% of such delivering supplier's actual tax liability for the month or 25% of such taxpayer's actual tax 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 such taxpayer's return for that month. 2) An outstanding credit approved by the Department or a credit memorandum issued by the Department arising from such taxpayer's overpayment of the taxpayer's final tax liability for any month may be applied to reduce the amount of any subsequent quarter-monthly payment or credited against the final tax liability of such taxpayer's return for any subsequent month. 3) If any quarter-monthly payment is not paid at the time or in the amount required by this Section, such taxpayer shall be liable for penalty and interest on the difference between the minimum amount due as a payment and the amount of such payment actually and timely paid, except insofar as such taxpayer has previously made payments for that month to the Department in excess of the minimum payments previously due. [35 ILCS 640/2-9 and 2-11] b)         Electronic funds transfer 1) A taxpayer (other than an individual taxpayer) who has an annual tax liability of $20,000 or more and an individual taxpayer who has an annual tax liability of $200,000 or more shall make all payments of the tax to the Department by electronic funds transfer.  For purposes of this subsection (b) , the term "annual tax liability" means, except as provided in subsections (c) and (d) of Section 2505-210 of the Department of Revenue Law , the sum of the taxpayer's liabilities under the Law for the immediately preceding calendar year. 2) Before August 1 of each year, the Department will notify all taxpayers required to make payments by electronic funds transfer.  All taxpayers required to make payments by electronic funds transfer shall make those payments for a minimum of one year beginning on October 1. [20 ILCS 2505/2505-210]