Thursday, September 29, 2016

Illinois ~ Corporate, Personal Income Taxes: Withholding Income Tax Changes for 2017 Discussed

CCH Tax Day Report

The Illinois Department of Revenue has issued an informational bulletin that discusses personal income tax withholding changes for the 2017 tax year for employers, payroll service providers, software developers, and those that pay gambling and lottery winnings. Effective January 1, 2017, all withholding taxpayers will be assigned to pay withholding income tax on a monthly or semi-weekly schedule. In addition, all withholding taxpayers will be required to file quarterly returns on Form IL-941. The annual filing and payment option will no longer be available. The department will notify taxpayers that are currently annual payers of their assignment to either a monthly or a semi-weekly payment schedule for 2017.

Form IL-941 is due by the last day of the month following the end of the quarter and must include all Illinois income tax withheld during the corresponding three months. If the due date falls on a holiday or weekend, the return is due on the next business day. Payment due dates are determined by the payment schedule assigned to the withholding taxpayer based on the taxpayer’s liability, and the day employees are paid or tax is withheld from others. Monthly payments are due by the 15th day of the month following the month in which the tax was withheld. Semi-weekly payments are due by Wednesday for amounts withheld on the previous Wednesday, Thursday, or Friday, and by Friday for amounts withheld on the previous Saturday, Sunday, Monday, or Tuesday. Taxpayers that withhold over $12,000 in a quarter must submit payments electronically on a semi-weekly basis from that point forward.

Form IL-941 has been updated for the 2017 tax year, including a line to verify compliance with the Illinois Secure Choice Savings Program Act, a section for entering required withholding information for each month of the quarter, and entry lines for the amount of income tax withheld based on payroll dates. A new line has been added for preparers to enter their Internal Revenue Service (IRS) preparer tax identification number (PTIN). Beginning on or after January 1, 2017, all paid income tax return preparers must include their PTIN on any tax returns they prepare and file or on any refund claim. Failure to comply may result in assessment of a penalty on the preparer.

Informational Bulletin FY 2017-07, Illinois Department of Revenue, September 26, 2016, ¶403-132


Wednesday, September 21, 2016

Check out KOS Partner Geoff Harlow in IL CPA Society Video

Congrats to KOS Partner Geoff Harlow on a job well done speaking on behalf of why CPA firms and businesses should consider diversity & inclusion as part of their plan for success.

Geoff is quoted in the Illinois CPA Society's new CEO video encouraging executives to think differently about the future of the CPA profession.

Click on the link to watch the video and hear some compelling reasons why diversity is a focus area that can improve your business.

Wednesday, September 14, 2016

KOS to Participate in the Illinois CPA Day of Service

Governor Rauner has officially proclaimed September 23, 2016 to be CPA Day of Service throughout Illinois

KOS is proud to be part of this wonderful day.  Employees from the firm will be traveling to the Feed My Starving Children (FMSC) facility in Libertyville, IL for an afternoon of helping others.

KOS chose to work with FMSC because of their emphasis on small group involvement and outcome-focused participation. This volunteer experience offers a wonderful way for KOS to engage, motivate and foster employee collaboration with the selfless benefit of feeding the world’s starving children.

Founded in 1987, Feed My Starving Children is a non-profit organization committed to feeding children hungry in body and spirit. The approach is simple: children and adults hand-pack meals specifically formulated for malnourished children, and these meals are shipped to nearly 70 countries around the world.