State & Local Tax Impacts of COVID-19 for Illinois – 2020

Thoughtware Alert Published: Dec 11, 2020 | Updated: May 05, 2021

Information current as of December 31, 2020.

COVID-19 has changed life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to Illinois

  • Illinois extended the dates for filing Form 700 and paying the state estate tax to July 15. However, the 30-day extension remains in effect for estates with state returns and payments due between March 16 and March 31.
    • Illinois Attorney General Important Notice, April 1, 2020.
    • Illinois Attorney General Important Notice, March 16, 2020 (prior announcement).
  • The DOR provided sales tax payment relief for eating and drinking establishments that incurred a total sales tax liability less than $75,000 in 2019, as taxpayers won’t be charged penalties or interest on liabilities reported for the February, March, and April reporting periods for timely filed returns. Delayed payments are due in 25 percent increments, on May 20, June 22, July 20, and August 20.
    • Illinois DOR Information Bulletin FY 2020-23, March 19, 2020.
  • Illinois will extend the filing deadline for state individual income, corporate income and trust income tax from April 15 to July 15 to conform with the new federal deadline. This does not impact the first and second installments of estimated payments for 2020 taxes that are due April 15 and June 15.
    • Gov. J.B. Pritzker announcement and DOR FY 2020-24, March 25, 2020.
  • Illinois is providing a 90-day expiration date extension for certain Illinois sales tax exemption numbers (E-numbers) due to the COVID-19 pandemic.
    • Illinois DOR Information Bulletin FY 2020-25, March 31, 2020.
  • Illinois guidance on estimated payment requirements due to COVID-19: 1) corporate income and individual income taxpayers can base their 2020 estimated tax payments on either 100 percent of their estimated liability for this year or 100 percent of their actual liability for 2019 or 2018; 2) if taxpayers timely pay the lesser of 90 percent of their liability for 2020 or 100 percent of their liability for 2019 or 2018 in four equal installments, they can avoid estimated late payment penalties.
    • Illinois DOR Information Bulletin FY 2020-26, April 1, 2020.
  • Illinois is waiving penalty and interest through May 26, 2020 on late-filed, first quarter International Fuel Tax Agreement (IFTA) returns due April 30, 2020. In addition to Illinois, interest due under IFTA is also being waived in 48 of 58 U.S. and Canadian jurisdictions. In addition to Illinois, interest due under IFTA is also being waived in 48 of 58 U.S. and Canadian jurisdictions. However, interest remains due on late-filed returns beginning May 1, 2020, in the following jurisdictions: Alabama, Georgia, Louisiana, Michigan, Minnesota, New Jersey, New York, North Carolina, Nova Scotia, and Rhode Island.
    • Illinois DOR Notice, April 21, 2020.
  • Illinois is extending again the expiration date for sales tax exemption E-numbers that expire during calendar-year 2020 automatically until December 31, 2020.
    • Illinois DOR Information Bulletin FY 2020-33, May 4, 2020.
    • This bulletin supersedes Information Bulletin FY 2020-25.
  • Illinois legislation permits county assessors to waive interest and penalties on late property tax payments due during 2020. The law applies to all counties except for Chicago’s home, Cook County, which provided similar relief last month. The measure also permits counties to approve 2020 homestead exemptions for property owners with disabilities, veterans, and senior citizens so long as an exemption was granted last year.
    • Illinois S.B. 685, Laws 2020, effective June 5, 2020.

For more information, reach out to your BKD Trusted Advisor or use the Contact Us form below.

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