The State of Illinois has announced that all employers and third-parties (including payroll providers) are now required to electronically file Forms W-2 and 1099 with Illinois.
MyTax Illinois, the state’s online account filing and management program, may be used to submit Forms W-2, W-2c, W-2G, 1099-R, and 1099-MISC. If you don’t already have a MyTax Illinois account, you must create one. Using this method, you must enter the information on MyTax Illinois for each form, one-at-a-time.
Alternatively, forms may be filed electronically through the Illinois FIRE Electronic Transmittal Program.
All forms must be filed by January 31, 2018.
Failure to file electronically, without receiving approval from the Department for an electronic filing waiver, can result in a $5 penalty per form.
If you are unable to file electronically, you may request a waiver, Form IL-900-EW, Electronic Filing Waiver Request, by calling the Taxpayer Assistance Division at 1-800-732-8866 or 217-782-3336.
http://www.revenue.state.il.us/Publications/Pubs/PUB-110.pdf