The Illinois Department of Revenue recently published Informational Bulletin FY 2020-14 which details a new state filing requirement for Federal Form 1099-K. Federal Form 1099-K reports certain payment card and third party network transactions, and any entities issuing this form to Illinois payees will now be required to file those reports with Illinois.
Beginning with Tax Year 2019, issuers of Form 1099-K will be required to submit those reports to Illinois electronically if required by the IRS to file them electronically. Beginning with TY 2020 and after, issuers of Form 1099-K will be required to submit those reports to Illinois electronically when four (4) or more separate transactions that exceed $1,000 are reported OR if you are required by the IRS to electronically file Form 1099-K.
The filing due date for TY 2019 will be March 31, 2020. A penalty of $5 per form will be assessed for a failure to file electronically through the IL FIRE Electronic Transmission Program or a third-party software provider.
To review the available information about the new requirement, please click here to review Informational Bulletin FY 2020-14 in its entirety.