March 27, 2020
State and Local Tax
Illinois General Assembly
The House and Senate were not in session this week.
The House and the Senate cancelled next week's session on Wednesday. The House also extended the committee deadline (the deadline for moving House bills out of the committee to the floor) from to April 24. T Senate also extended the committee deadline to April 24. The House has extended the third reading deadline to May 8, which will be a scheduled session day. The Senate has extended the third reading deadline for Senate bills to May 7.
As of this morning, it is unclear when the General Assembly will return to Springfield.
None this week.
None this week
COVID-19 state tax-related announcements
The Governor announced on Wednesday that income tax filing (and payment) deadlines will be extended until July 15. The Governor issued a
announcing the income tax filing and payment extension, and new programs to provide emergency assistance to small business.
As I noted on Wednesday afternoon, the Illinois Department of Revenue issued an
on the filing and payment delay. As noted in the informational bulletin, the Department did not delay estimated payments due on April 15 and June 15.
There has also been a question as to whether the filing and payment delay covers partnership returns - in the words of the bulletin "[t]his relief applies to all individual returns, trusts, and corporations." I have been advised that the Department may have an announcement "later." The Department's Acting General Counsel stated the following:
"We are considering what relief can be afforded partnerships, if any. The bulletin was designed to align IL with federal deadlines using our authority under 100.5020 and 100.6000. The federal 1065 was due March 15, and no tax is paid with the informational return, so we have nothing to base an extension for the IL-1065 and payments."
I have express my disagreement with a conclusion that relief is not warranted or authorized. I will keep you posted as I receive more information.
Cook County, on Thursday, announced a series of measures waiving various County fines, fees and deferring tax collections to help businesses during the COVID-19 pandemic. Here are the Cook County
financial relief package
The Internal Revenue Service has established a
Coronavirus Tax Relief
web page. Note that IRS has an IRS People First Initiative linked at this we page. Among other things, payments due from taxpayers under existing installment agreements have been suspended between April 1, and July 15. IRS has also made various adjustments to the Offers In Compromise Program.
The March 27 edition of the
did not contain any new or adopted rulemakings by the Department of Commerce and Economic Opportunity.
Today's edition of the Illinois contained one adopted rulemaking by the Illinois Department of Revenue. The rulemaking amends the Retailers' Occupation Tax rules as explained by the Department as follows:
Section 130.330 is amended in response to legislation that expanded the Manufacturing Machinery and Equipment exemption to include production related tangible personal property purchased on or after July 1, 2019, that is primarily used or consumed in a production related process by a manufacturer in a manufacturing facility in which a manufacturing process takes place or by a graphic arts producer in graphic arts production. PA 101-9, effective July 1, 2019. The definition of production related tangible personal property includes supplies and consumables used in a manufacturing facility including fuels, coolants, solvents, oils, lubricants and adhesives, hand tools, protective apparel, and fire and safety equipment primarily used or consumed within a manufacturing facility in a production related process. Production related tangible personal property also includes all tangible personal property that is primarily used in research and development regardless of use within or without a manufacturing or graphic arts production facility. The new Section, Section 130.1957, implements PA 101-31, codified at 35 ILCS 120/2-5(44). PA 101-31 creates an exemption from Retailers' Occupation Tax for data centers that receive a certificate of exemption from the Department of Commerce and Economic Opportunity ("DCEO"). Qualified tangible personal property used in the construction and operation of a data center that has been granted a certificate of exemption by DCEO, whether the tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor of the owner, operator, or tenant, is exempt from Retailers' Occupation Tax.
The Illinois General Assembly's Joint Committee on Administrative Rules filed an emergency rulemaking to authorize State agencies to file "second notice" filings with JCAR via email. Previously, the JCAR rules on rulemakings only authorized the filing of second notices with JCAR by mail or in person.
No new tax-related decisions this week.
No new decisions were issued this week.
No new cases filed this week.
Publications and Announcements