IL HB2697

Amends the Illinois Income Tax Act to add a new option for calculating required annual estimated tax payments

Taxpayers may now use the lesser of three options: 90% of current year tax, 100% of prior year tax (if a 12-month return was filed), or 90% of what would have been owed under tax law as it existed on the first day of the taxable year

The new third option protects taxpayers from underpayment penalties when mid-year tax law changes increase their liability beyond what was predictable at the start of the year

Takes effect immediately upon becoming law