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COVID-19 Illinois & Federal Tax Filing Updates

Illinois Delays Tax Deadline to July 15th; Important Federal Reminders

While Congress and the White House put final touches on a $2 trillion coronavirus spending bill, Governor Pritzker announced at his March 25th press conference that the State of Illinois is delaying the tax deadline from April 15 to July 15, aligning with the changes the federal government already made.  The IDOR has confirmed the Governor’s announcement. Read More

HIGHLIGHTS:

  • The 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Illinois income taxes on April 15, 2020, are automatically extended until July 15, 2020.
  • This relief applies to all individual returns, trusts, and corporations.
  • This relief is automatic, taxpayers do not need to file any additional forms or call IDOR to qualify.

FIRST & SECOND QUARTER ILLINOIS ESTIMATED PAYMENTS STILL DUE APRIL 15 AND JUNE 15

Note: First and second quarter installments of Illinois estimated payments for 2020 taxes are STILL DUE APRIL 15 and JUNE 15. Taxpayers are required to estimate their tax liability for the year and make four equal installments. Taxpayers will not be assessed a late estimated payment penalty if the amount of the installments equals 90% or more of the current year’s liability or 100% of the previous year’s liability.

Illinois earlier announced:

Sales Tax Payments. Interest and penalties waived for late sales tax payments for the February, March and April, 2020 reporting periods for qualified tax payers.  Taxpayers are still required to File Form ST-1 for each reporting period by the original due dates.  Also, taxpayers must follow a payment plan and make delayed payments over a 4-month period beginning in May, 2020.

Estate Tax Filing Extension.  Estates with returns and payments due between March 16, 2020 and April 15, 2020 have a 30 day Illinois filing extension.  This does not waive interest,

The City of Chicago is also extending the due dates for certain local taxes to April 30, 2020.

Other States.  Other states continue to modify payment and filing deadlines and more are expected to follow suit.  For state tax developments related to the coronavirus outbreak, see a comprehensive list HERE.

IMPORTANT FEDERAL REMINDERS

FEDERAL tax filings and payments are postponed from April 15, 2020 to July 15, 2020.  While this applies to individuals, trusts, estates, partnerships, associations, companies, or corporations, some filing and payment deadlines remain.  

  • Federal Payment AND Filing Deadline Now July 15, 2020. The IRS officially announced that, because of the ongoing coronavirus pandemic, tax returns due April 15 will not have to be filed until July 15 this year. Notice 2020-18.  This action does the following:
    • Automatically postpones the filing due date of Federal income tax returns, due April 15, 2020, to July 15, 2020No extension forms need to be filed for the new July 15, 2020 date.
    • Automatically postpones the payment due date of Federal income tax payments (including self-employment tax), due April 15, 2020, to July 15, 2020;
    • Provides that there is no limitation on the amount that may be postponed (earlier communications limited the amount to $1M);
    • Applies to 2019 balances due and 2020 first quarter estimated tax payments;
    • The deadline for IRA Contributions, including Roth IRAs and Health Savings Accounts is extended to July 15, 2020.
    • Not-for-Profit Form 990-T ONLY and related tax, due April 15, are extended
  • Automatic payments for balances due: For those who have already e-Filed their 2019 tax return, with a balance due scheduled to be withdrawn from their bank account on 4/15/20, taxpayers are advised to cancel e-file payment currently due by calling the US Treasury Financial Agent at 1-888-353-4537. Then go to irs.gov/directpay and reschedule a payment for 07/15/2020.
  • What’s Not Extended.  No extension is provided in this notice for the payment or deposit of any other type of Federal tax, or for the filing of any tax return or information return.  
    • Year 2020 second quarter estimated tax payment will continue to be due June 15, 2020. At this time, the IRS has not issued guidance concerning potential relief in connection with the year 2020 second quarter estimated tax payment.
    • Gift and estate (706) taxes and returns are still due April 15, 2020.
    • Not-for-Profits with an original or extended due date of April 15, 2020 are still due April 15, 2020.
    • Any excise taxes and filings, due April 15, are not extended.
    • Any amended returns that where due April 15, due to the statute of limitations, are still due April 15.

We are here to help.  Please visit our COVID-19 Resource Center for a wealth of information on stimulus assistance, new legislation and much more.  This information is updated daily.  This is a rapidly evolving situation so please do not hesitate to reach out to us with any question or concerns at 847-267-9600.

 

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