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Below are 47 results for illinois state tax due date.

www2.illinois.gov

These extensions do not grant you an extension of time to pay any tax you owe. If you determine that you will owe tax, you must use Form IL-505-I, Automatic Extension Payment for Individuals, to pay any tax you owe to avoid penalty and interest on tax not paid by April 18, 2022. MyTax Illinois is an easy way to pay your IL-505-I payment. If you do not expect to owe tax, …

www2.illinois.gov

The due date for calendar year filers is April 15 of the year following the tax year of your return, unless April 15 falls on a weekend or holiday. We grant an automatic six-month extension of time to file your return. If you receive a federal extension of more than six months, you are automatically allowed that extension for Illinois.

support.taxslayer.com

The filing deadline for 2021 tax returns is April 18, 2022 The payment deadline is also April 18, 2022. Penalties and interest on underpayments will be calculated from that date If you receive a federal extension of more than six months, you are automatically allowed that …

People also ask
  • When are Illinois taxes due?

    The filing deadline for 2021 tax returns is April 18, 2022The payment deadline is also April 18, 2022. Penalties and interest on underpayments will be calculated from that dateIf you receive a federal extension of more than six months, you are automatically allowed that extension for Illinois. ...

    Use MyTax Illinois to electronically file your original Individual Income Tax Return. It’s easy, free, and you will get your refund faster.

    You are eligible to file an original IL-1040 via MyTax Illinois if you

    • have not filed an individual income tax return for this tax year;
    • are an established Illinois taxpayer or have a valid Illinois Driver’s License or Illinois State Identification Card;
    • have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN); and
    • have a valid email address.

    Some common documents, records, or receipts you may need to help you file are

    • a copy of your federal income tax return and schedules;
    • copies of all W-2 and 1099 forms;
    • tax returns you filed with other states;
    • your property number and amount of property tax paid;
    • receipts for qualified education or moving expenses; and
    • your routing and account number if you are due a refund and choose to deposit your refund directly into your checking or savings account.

    What if I already filed Form IL-1040?

    DO NOT mail a copy of your return. Submitting multiple original returns will cause processing delays.

    What about my refund?
    You can check the status of your refund here: Where’s my refund?

    Made an error, forgot something, or need to amend?
    If you discover that you made an error or forgot to include income, withholding, or another credit on your original return, you must file Form IL-1040-X, Amended Individual Income Tax Return. Learn more about filing Form IL-1040-X on MyTax Illinois.

    I received a Return Correction Notice (RCN). What should I do?
    DO NOT file another Form IL-1040. Please respond to the RCN as directed.

    Illinois 2021 tax deadline extended to match IRS federal ...
  • When are sales taxes due?

    Sales and Use Tax Filing Deadlines. All businesses are required to file an annual return each year. The first 50% payment is due on the 20th day of the current month. The second 50% payment is due on the last day of the current month. The Reconciliation payment is due on the 20th of the following month.
    Taxes - Sales and Use Tax Filing Deadlines
  • How much is auto sales tax in Illinois?

    new and used tires for vehicles in which persons or property may be transported or drawn upon a highway, as defined in the Illinois Vehicle Code, Section 1-217;aircraft;special mobile equipment (such as street sweepers, road construction and maintenance machinery); andimplements of husbandry (farm wagons and combines).
    sale tax definition
    For information about the Leveling the Playing Field for Illinois Retail Act, visit the resource page.
    • MyTax Illinois
    • Tax-Prep Software
    • Approved Third-Party Software Vendors

    The term "sales tax" actually refers to several tax acts. Sales tax is a combination of "occupation" taxes that are imposed on retailers' receipts and "use" taxes that are imposed on amounts paid by purchasers. Retailers owe the occupation tax to the department; they reimburse themselves for this liability by collecting use tax from the buyers. "Sales tax" is the combination of all state, local, mass transit, home rule occupation and use, non-home rule occupation and use, park district, county public safety and facilities, county school facility tax, and business district taxes.

    "Sales tax" is imposed on a retailer's receipts from sales of tangible personal property for use or consumption. Tangible personal property does not include real estate, stocks, bonds, or other "paper" assets representing an interest.

    If the retailer does not charge Illinois Sales Tax on a sale of tangible personal property, an Illinois purchaser must pay "use" tax for the purchase directly to the department. 

    Types of retailers

    An Illinois (in-state) retailer (e.g., brick and mortar) is a retailer who makes sales of tangible personal property in Illinois. An Illinois retailer's inventory and headquarters are generally in Illinois. They must collect and remit state and local retailers' occupation tax at the origin rate.

    An out-of-state seller is an out-of-state retailer who has physical presence in Illinois. Physical presence in Illinois means having or maintaining within Illinois, directly or by a subsidiary, an office, distribution house, sales house, warehouse or other place of business, or any agent or other representative operating within Illinois under the authority of the retailer or its subsidiary, irrespective of whether such place of business or agent or other representative is located here permanently or temporarily, or whether such retailer or subsidiary is licensed to do business in Illinois [35 ILCS 105/2 (1)]. For other forms of physical presence, see 35 ILCS 105/2 (1.1) and (1.2). Out-of-state sellers must determine on a sale-by-sale basis if their selling activities take place in Illinois or not.

    • If selling activities occur in Illinois (for example, sales are filled from inventory in Illinois or other selling activities occur in Illinois; see, e.g., 86 Ill. Adm. Code 270.115), then state and local retailers' occupation tax is calculated using the origin rate for that sale.
    • If selling activities occur outside Illinois, then use tax must be collected and remitted for that sale.

    A remote retailer is an out-of-state retailer with no physical presence in Illinois who meets a tax remittance threshold of

    • 0,000 or more in cumulative gross receipts from sales of tangible personal property to purchasers in Illinois; or
    • 200 or more separate transactions for the sale of tangible personal property to purchasers in Illinois.

    A remote retailer shall determine on a quarterly basis, ending on the last day of March, June, September, and December, whether it meets or exceeds either threshold for the preceding 12-month period. If the remote retailer meets or exceeds either threshold for a 12-month period, it is required to collect and remit all applicable state and local retailers' occupation tax administered by the Illinois Department of Revenue (IDOR) on all retail sales to Illinois purchasers and to file all applicable returns for one year. Remote retailers must collect and remit state and local retailers' occupation tax at the destination rate.

    A marketplace is a physical or electronic place, forum, platform, application, or other method by which a marketplace seller sells or offers to sell items.

    A marketplace seller is a person that makes sales through a marketplace operated by an unrelated third-party marketplace facilitator. A person that is an affiliate of a marketplace facilitator is not a marketplace seller.

    A marketplace facilitator is a person who, pursuant to an agreement with an unrelated third-party marketplace seller, directly or indirectly through one or more affiliates facilitates a retail sale by an unrelated third-party marketplace seller by:

    • Listing or advertising for sale by the marketplace seller in a marketplace, tangible personal property that is subject to tax under the Retailers' Occupation Tax Act (ROT); and
    • Either directly or indirectly, through agreements or arrangements with third parties, collecting payment from the customer and transmitting that payment to the marketplace seller regardless of whether the marketplace facilitator receives compensation or other consideration in exchange for its services.

    Marketplace facilitators must determine on a quarterly basis, ending on the last day of March, June, September, and December, whether it meets or exceeds a tax remittance threshold for the preceding 12-month period. The tax remittance thresholds are:

    • 0,000 or more in cumulative gross receipts from sales of tangible personal property to purchasers in Illinois; or
    • 200 or more separate transactions for the sale of tangible personal property to purchasers in Illinois.

    Marketplace facilitators meeting a tax remittance threshold must then determine on a sale-by-sale basis if the sale through their marketplace is a sale on behalf of a marketplace seller or their own sale.

    • Taxes for sales made by a marketplace facilitator on behalf of a marketplace seller are incurred at the tax rate in effect at the purchaser's location (destination rate). This applies to sales made through a marketplace by:
      • Illinois retailers
      • Out-of-state retailers (with or without physical presence)
    • Sales made over the marketplace by a marketplace facilitator itself are taxed as follows:
      • For sales that are fulfilled from inventory located in Illinois and for which selling activities do not otherwise occur in Illinois (see, e.g., 86 Ill. Adm. Code 270.115), state and local retailers' occupation taxes are incurred at the tax rate in effect at the location of the Illinois inventory (origin rate);
      • For sales for which selling activities otherwise occur in Illinois (see, e.g., 86 Ill. Adm. Code 270.115), state and local retailers' occupation taxes are incurred at the tax rate in effect at the location of the selling activities (origin rate);
      • For sales that are not fulfilled from inventory located in Illinois and for which selling activities do not otherwise occur in Illinois (see, e.g., 86 Ill. Adm. Code 270.115), state and local retailers' occupation taxes are incurred at the tax rate in effect at the purchaser's location (destination rate).

    Tax rates

    For purposes of this document, Illinois Sales Tax has three rate structures — one for qualifying food, drugs, and medical appliances; one for items required to be titled or registered; and another for all other general merchandise.

    "Qualifying food, drugs, and medical appliances" include

    • food that has not been prepared for immediate consumption, such as most food sold at grocery stores, excluding hot foods, alcoholic beverages, candy, and soft drinks;
    • prescription medicines and nonprescription items claimed to have medicinal value, such as aspirin, cough medicine, and medicated hand lotion, excluding grooming and hygiene products; and
    • prescription and nonprescription medical appliances that directly replace a malfunctioning part of the human body, such as corrective eyewear, contact lenses, prostheses, insulin syringes, and dentures.

    "Items required to be titled or registered" include motor vehicles, ATVs, watercraft, aircraft, trailers, and mobile homes. 

    "General merchandise" includes sales of most tangible personal property including sales of

    • soft drinks and candy (see Regulation 130.310 for details);
    • prepared food such as food purchased at a restaurant;
    • photo processing (getting pictures developed);
    • prewritten and "canned" computer software;
    • prepaid telephone calling cards and other prepaid telephone calling arrangements;
    • repair parts and other items transferred or sold in conjunction with providing a service under certain circumstances based on the actual selling price; and
    • grooming and hygiene products.

    Use the Tax Rate Finder in MyTax Illinois to look up location specific tax rates. Depending upon the location of the sale, the actual sales tax rate may be higher than the fundamental rate because of home rule, non-home rule, mass transit, park district, county public safety, public facilities or transportation, and county school facility tax. For additional options, see the Tax Rate Database.

    Illinois (in-state) retailers see the Illinois (In-State) Retailer's Sales Tax Responsibilities Flowchart to determine your tax rate liabilities. 

    Remote (out-of-state) retailers and marketplace facilitators see the Remote (Out-of-State) Retailer Flowchart to determine your tax rate liabilities. 

    Prepaid sales tax

    Motor fuel distributors must collect “prepaid sales tax” on the motor fuel sold for resale to a retailer who is not an Illinois licensed motor fuel distributor or supplier of diesel and dieselhol. The retailer prepays the sales tax to the motor fuel distributor and then claims a credit for the prepaid tax when the sales tax return is filed. Click here for Prepaid Sales Tax Rates.

    Local taxes

    Units of local government may impose taxes or fees, which the department does not collect. Contact your units of local government (county, municipal, mass transit, etc.) to determine if you must pay any additional taxes or fees not listed below. The following local taxes, which the department collects, may be imposed.

    • Business District Tax
    • Chicago Home Rule Municipal Soft Drink Retailers’ Occupation Tax
    • Chicago Home Rule Use Tax on titled and registered items
    • County Motor Fuel Tax
    • Home Rule County Taxes
    • Home Rule or Non-home Rule Municipal Taxes
    • Mass Transit District Taxes (Metro-East Mass Transit (MED) Taxes and Regional Transportation Authority (RTA) Taxes)
    • Metro-East Park and Recreation District Taxes
    • Metropolitan Pier and Exposition Authority (MPEA) Food and Beverage Tax
    • Special County Retailers’ Occupation Tax for Public Safety, Public Facilities, Mental Health, Substance Abuse, and Transportation
    • County School Facility Tax

    Exemptions

    Sales — The following list contains some of the most common examples of transactions that are exempt from tax. (See the Illinois Administrative Code, Section 130.120 for a comprehensive list.)

    • Sales to state, local, and federal governments
    • Sales to not-for-profit organizations that are exclusively charitable, religious, or educational
    • Sales of newspapers and magazines
    • Sales to out-of-state buyers (Nonresidents may not claim the out-of-state buyer exemption if the motor vehicle or trailer will be titled in a state that does not give Illinois residents an out of state buyer exemption on purchases in that state of motor vehicles or trailers that will be titled in Illinois.)
    • Sales of tangible personal property to interstate carriers for hire used as rolling stock (e.g., semi‑tractor trailers, railroad cars)
    • Sales of machinery and equipment that will be used primarily in
      • manufacturing or assembling of tangible personal property for wholesale or retail sale or lease, and
      • production agriculture
    • Qualified sales of building materials that will be incorporated into real estate as part of a project for which a Certificate of Eligibility for Sales Tax Exemption has been issued by the enterprise zone administrator
    • Qualifying purchases of tangible personal property used in a manufacturing or assembling process by businesses located in an enterprise zone and certified by the Department of Commerce and Economic Opportunity as qualifying to make these purchases because jobs will be created or retained
    • Sales of legal tender, medallions, and gold bullion issued by qualifying governments
    • Fuel used for international flights

    Organizations — Qualified organizations, as determined by the department, are exempt from paying sales and use taxes on most purchases in Illinois. Upon approval, we issue each organization a sales tax exemption number. The organization must give this number to a merchant in order to make certain purchases tax‑free. 

    Filing and payment requirements

    Returns

    Titled or registered items — Illinois retailers selling items that are of the type that must be titled or registered by an agency of Illinois state government (i.e., vehicles, watercraft, aircraft, trailers, and mobile homes) must register with the Department to report these sales using Form ST 556, Sales Tax Transaction Return. Illinois retailers that sell such items for lease must report these sales for lease using Form ST 556-LSE, Transaction Return for Leases. Forms ST-556 and ST-556-LSE must be filed and taxes paid within 20 days of the date of delivery. Persons who are in the business of leasing or renting motor vehicles, watercraft, aircraft, or trailers that are required to be registered with an agency of Illinois state government and who, in connection with such business, sell any such item to a retailer for the purpose of resale can bulk file these transactions using Form ST-556-D.

    Forms ST-556 and ST-556-LSE can be filed electronically using MyTax Illinois. Alternatively, registered dealers can obtain ST-556 and ST-556-LSE forms preprinted for their business locations by calling our Central Registration Division at 217 785-3707. Form ST-556-D must be filed electronically using MyTax Illinois.

    Individuals or businesses purchasing an item that must be titled or registered by an agency of Illinois state government from an out-of-state retailer or marketplace facilitator must determine whether that out-of-state retailer or marketplace facilitator has reported the tax on that purchase using Form ST-556 or Form ST-556-LSE (for sales for leases). If the tax for the purchase has not already been reported on Form ST-556 or Form ST-556-LSE, then the individual or business purchasing the item must file Form RUT-25, Vehicle Use Tax Transaction Return (or in the case of a purchase for lease, Form RUT-25-LSE, Use Tax Return for Lease Transactions) to report the transaction. Forms RUT-25 and RUT-25-LSE must be filed and taxes must be paid on the date the Illinois title and registration is applied for, but not more than 30 days after the date the item is brought into Illinois.

    Individuals or businesses that purchase (or acquire by gift or transfer) motor vehicles that must be titled or registered from another individual or private party must file Form RUT‑50, Private Party Vehicle Use Tax Transaction Return, within 30 days from the date the vehicle is purchased or acquired. Individuals or businesses that acquire (by gift, donation, transfer, or non-retail purchase) aircraft or watercraft that must be registered must file Form RUT-75, Aircraft/Watercraft Use Tax Return, no later than 30 days from the date the item was acquired or the date the item was brought into Illinois, whichever is later.

    Forms RUT-25, RUT-25-LSE, RUT-50, and RUT-75 are generally obtained when you license and title your vehicle at the applicable state facility or at a currency exchange. These forms are available at the offices of the Illinois Secretary of State, the Illinois Department of Transportation or the Illinois Department of Natural Resources. If you need to obtain the forms prior to registering the vehicle, send us an email request or call our 24-hour Forms Order Line at 1 800 356-6302. Include in your request your name and mailing address and the type of form you are requesting. Note that we cannot email or fax you the requested form. Instead, we will complete your request via the U.S. Postal Service. Do not make copies of the forms prior to completing. These forms have unique transaction numbers that should not be duplicated. Doing so could delay processing.

    Prepaid sales tax on motor fuel — Motor fuel distributors file Form PST-1, Prepaid Sales Tax Return, monthly on the 20th day of the month following the month for which the return is filed.

    NOTE: Retailers claim a credit for the amount of prepaid sales tax on Form ST-1, Sales and Use Tax and E911 Surcharge Return, Line 17.

    Qualifying food, drugs, and medical appliances and other general merchandise — Retailers reporting sales of general merchandise and qualifying food, drugs, and medical appliances must file Form ST-1, Sales and Use Tax and E911 Surcharge Return. 
    • A monthly return is due the 20th day of the month following the month for which the return is filed.
    • A quarterly return is due the 20th day of the month following the quarter for which the return is filed.
    • An annual return is due January 20th of the year following the year for which the return is filed.

    Illinois residents who make purchases of tangible personal from non-registered out-of-state retailers or those who make purchases of tangible personal property from service persons who do not pay use tax directly to us must file Form ST-44, Illinois Use Tax Return. You may complete Form ST-44 electronically on our web site.

    • If 0 or less is owed, the return and tax is due April 15th of the year following the year in which the purchase was made.
    • If the total tax liability for the year is more than 0, the return and tax is due the last day of the
      month following the month in which the purchase was made.

    Tangible personal property sold at retail over the internet is taxed in the same manner as any other retail sale. Generally, if the item of tangible personal property is purchased from an

    • Illinois retailer, out-of-state retailer*, or marketplace facilitator**, the retailer is responsible for collecting and remitting Illinois sales tax.
    • out-of-state retailer*** who does not collect Illinois sales tax, the purchaser owes use tax and is responsible for paying use tax directly to the department using Form ST‑44.

    *          Meeting or exceeding a tax remittance threshold or having physical presence in Illinois **        Meeting or exceeding a tax remittance threshold

    ***      Not meeting or exceeding a tax remittance threshold and not having physical presence in Illinois.

    Sales tax on cars and vehicles in Illinois
  • How to pay Il taxes?

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Illinois 2021 tax deadline extended to match IRS federal ...

19-03-2021 · The Illinois Department of Revenue said 2.4 million people have already filed their state taxes, and more than 79% of taxpayers who have already filed are expecting a refund.

19-03-2021
SPRINGFIELD, Ill. (WLS) -- Illinois has pushed back its state tax filing deadline to May 17, matching the change by the IRS.Governor JB Pritzker announced Thursday the state has extended the individual income tax filing deadline from April 15 to May 17. There is no change to how the state processes taxes filed before the deadline.The extension does not apply to estimated tax payments due on April 15, which are based on either 100% of estimated or 90% of actual liability for 2021, or 100% of actual liabilities for 2019 or 2020.The IRS announced an extension of the federal tax filing deadline to May 17 on Wednesday, saying it would allow more breathing room for taxpayers and the IRS alike to cope with changes brought on by the pandemic. Those who need more time beyond May 17 to complete their federal taxes can request an extension until October 15.

RELATED: IRS will delay tax filing due date until May 17

The decision to extend the deadline comes after an intense year for the chronically underfunded IRS. The pandemic hit in the middle of last year's tax filing season, setting the agency back in terms of processing. The IRS has also been a key player in doling out government relief payments, and is currently helping to send out the third round of payments in the middle of the current tax filing season.Additionally, the extension gives the IRS time to issue guidance on recent tax law changes. The American Rescue Plan excludes the first ,200 of unemployment benefits from federal taxes for those making less than 0,000."Never before has the law changed so substantially in the middle of tax filing season," Patrick Thomas, director of Notre Dame Law School's Tax Clinic, said in a statement.The Illinois Department of Revenue said 2.4 million people have already filed their state taxes, and more than 79% of taxpayers who have already filed are expecting a refund.

The Associated Press contributed to this report.

Report a correction or typo
tax.illinois.gov

The Illinois Department of Revenue is taking proactive measures to prevent the spread of COVID-19. At this time, a limited number of taxpayer phone system agents are available. Due to the reduced number of agents taking calls, wait times may be longer than normal. Taxpayers can save time and avoid the wait by contacting the department by email.

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www2.illinois.gov

a date other than June 30, Form IL-1120 is due on or before the 15th day of the 4th month following the close of the tax year. June 30, Form IL-1120 is due on or before the 15th day of the 3rd month following the close of the tax year. Note: If you are a cooperative, Form IL-1120 is due on the 15th day of the 9th month following the close of the tax year regardless of when your tax …

efile.com

Late Filing Penalty: You will be assessed a penalty of 0 or 2% of the tax owed (whatever is less) per month you file your return after the tax return deadline. The penalty is reduced by timely payments or credits. In the event you file your return on time but the return cannot be processed, you will have 30 days to correct the return before any penalty is due. If you do not file your return within 30 days after you …

www2.illinois.gov

You will owe a late-payment penalty for unpaid tax if you do not pay the tax you owe by the original due date of the return, even if you have an extension of time to file. The penalty rate is based on the number of days the payment is late. For more information, refer to Form IL-2210, Computation of Penalties for Individuals ; Form IL-2220 ...

www2.illinois.gov

IL-941 return due on Monday, October 31, 2022. 4th quarter October 2022 Tuesday, November 1 5, 2022 . November 2022 Thursday, December 15 , 2022 . December 2022 Monday, January 1 6, 2023 (1/15 – weekend) IL-941 return due on Monday , January 31 , 2023. Pub 131-D (N-12/21) Printed by authority of the s tate of Illinois – web only

incometaxpro.net

When Are Taxes Due? Federal income taxes for tax year 2020 are due April 15, 2021. Most state income tax returns are due on that same day. A handful of states have a later due date, April 30, 2021, for example.

In the table below you will find the income tax return due dates by state for the 2021 tax year. We have included the Regular Due Date alongside the 2022 Due Date for each state in the list as a point of reference. Each calendar year the state income tax due date may differ from the Regular Due Date, because of a state recognized holiday, or the due date falls on a Saturday or Sunday, for example.

Most state income tax returns require income, adjustments, and credit amounts calculated on your Form 1040. For this reason, it's important that you prepare your federal income tax forms in advance of trying to prepare your state income tax forms.

When Are Taxes Due?

Federal income taxes for tax year 2021 are due April 18, 2022. Most state income tax returns are due on that same day. A handful of states have a later due date, April 30, 2022, for example.

Income tax returns must be postmarked on or before the 2022 filing due date to avoid penalties and late fees. Keep your post office receipt and ensure it is date stamped. The receipt date must be legible. Ask the clerk to stamp it again if it is not. To get a late filing fee removed, you may be required to mail a copy of your post office receipt to the IRS or DOR.

What Happens If I Miss The Due Date?

If you can not complete your income tax return before the 2022 filing deadline, you are generally expected to mail in an extension of time to file request form AND make an estimated payment. You can then send in your income tax return up to 6 months late with interest and possibly penalty charges forthcoming.

Remember that you must notify and pay both the IRS and your state Department of Revenue (DOR) office. The Internal Revenue Service will not notify the state department of revenue office for you.

What If I Don't Have The Money To Pay?

If you do not have the money to pay your income tax due, then, you generally must file your income tax return without a payment. Once the IRS and state DOR have processed your income tax return, you can request a payment schedule from them by mail-in form or by phone.

Read the most recent Form 1040 instructions booklet for more information.

Federal And State Income Tax Return Due Dates

Last updated: December 22, 2021

Federal Tax Forms

  • When to File. U.S. Department of the Treasury, Internal Revenue Service. Retrieved December 22, 2021.
  • When To File, Due Dates, Personal. State of California, Franchise Tax Board. Retrieved December 22, 2021.
  • Individuals, Filing due dates. New York State, Department of Taxation and Finance. Retrieved December 22, 2021.
  • 2022 Tax Deadlines for 2021 Returns. eFile. Retrieved December 22, 2021.

sikich.com

This credit can offset the Illinois income tax related to the pass-through entity income, but it is not allowed to reduce the Illinois Replacement Tax. The new law takes effect for tax years on or after December 31, 2021 and runs through 2025. Meaning, 2021 is the first year this provision is available in Illinois.

salestaxhandbook.com

January 20. January 20 1. Simplify Illinois sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.

nbcchicago.com

Illinois Extends Income Tax Filing Deadline, Pritzker Announces The extension does not apply to estimated tax payments due on April 15, 2021, according to Pritzker's office. Published March 18 ...

chicagotribune.com

18-03-2021 · Illinois residents will now have until May 17 to file their individual state income taxes and to make any payments, Gov. J.B. Pritzker announced Thursday.

18-03-2021
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Illinois residents will now have until May 17 to file their individual state income taxes and to make any payments, Gov. J.B. Pritzker announced Thursday.

The announcement comes one day after the Internal Revenue Service’s decision to extend the federal filing due date to the same day, saying it “wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic.”

The state income tax extension does not apply to estimated tax payments that are due April 15, the traditional tax filing deadline.

Illinois Department of Revenue Director David Harris said the fastest way to receive a refund is to file electronically and request a direct deposit.

Gov. J.B. Pritzker speaks at the Thompson Center in Chicago on March 18, 2021.
Gov. J.B. Pritzker speaks at the Thompson Center in Chicago on March 18, 2021. (Jose M. Osorio / Chicago Tribune)

“The filing extension for individual income tax takes effect automatically, so no further action is required by taxpayers to take advantage,” Harris said in a statement. “For taxpayers awaiting a refund, utilize IDOR’s Where’s My Refund? to locate specific information about the status of any refund due.”

[Most read] Salir a vender o morir de hambre en casa, dilema para peruana »

The Illinois Department of Revenue continues to process refunds for those filing prior to the deadline. The department reported 2.4 million people have already filed their returns, 79% of whom are expecting a refund.

Officials from the governor’s office said free filing of Form IL-1040 is available through the MyTax Illinois website, where tax filers can also make payments, respond to department inquiries and look up IL-PINs.

Illinois Pushing Back Income Tax Filing Deadline To May 17 ...

March 19, 2021 / 12:00 PM / CBS Chicago. CHICAGO (CBS) -- Illinois is giving taxpayers extra time to file their income taxes this year, pushing back the filing deadline from April 15 to May 17 ...

chicago

/ CBS Chicago

CHICAGO (CBS) -- Illinois is giving taxpayers extra time to file their income taxes this year, pushing back the filing deadline from April 15 to May 17, mirroring a change by the IRS for filing federal returns.

Gov. JB Pritzker's office announced the change on Thursday, after the Internal Revenue Service announced it was moving the deadline for filing federal income taxes until May 17.

The change in the state's income tax filing deadline won't apply to estimated tax payments that are due on April 15, which are based on either 100% of estimated or 90% of actual liability for 2021, or 100% of actual liabilities for 2019 or 2020.

State officials said the fastest way to receive any tax refund you might be owed is to file your return electronically, and sign up for direct deposit into your bank account.

"The filing extension for individual income tax takes effect automatically, so no further action is required by taxpayers to take advantage. For taxpayers awaiting a refund, utilize IDOR's Where's My Refund? to locate specific information about the status of any refund due," Illinois Department of Revenue Director David Harris said in a statement.

You can file Illinois income tax returns for free at the state's MyTax Illinois website.

Accountants had asked the IRS to push back the federal deadline given the ongoing challenges of the coronavirus pandemic for taxpayers and the IRS, which is still dealing with a backlog of tax returns from last year.

The American Institute of CPAs this week had urged the IRS to delay the filing deadline, citing the impact of the pandemic on U.S. taxpayers as well as the tax agency itself, which is still trying to dig out of a backlog of returns from the last tax filing season. Lawmakers on Wednesday applauded the tax agency for the extension, calling it "absolutely necessary."

"The practitioners have been saying, 'We're here, but there aren't enough hours in the day to get everything done that has been put in front of us,'" said Meredith Tucker, tax principal at accounting firm Kaufman Rossin. "It's tough to think we will be under tax season for another month, but we need more time."

Tax preparers have been assessing changes to the tax code, including last week's

.9 trillion American Rescue Plan, which will impact issues ranging from taxes on unemployment aid to the Child Tax Credit, as well as loans from the Paycheck Protection Program.

The extra time applies to individual taxpayers, including those who pay self-employment taxes, such as sole proprietors and gig-economy workers, the IRS said. It added that individual taxpayers don't need to file any forms or call the IRS to qualify for the May 17 deadline.

Given previous tax seasons, it's likely that half of taxpayers have yet to file their returns, said Curtis Campbell, president of TaxAct. He added that even with the extra breathing room, taxpayers should still plan on getting their returns to the IRS sooner rather than later.

"I would advise folks to still file as soon as they can, especially if they are in need of their tax refund," Campbell said. "The IRS is doing all they can to help deliver quickly for consumers and getting them their latest updated information may help tax filers get their return and potential other future economic payments faster."

First published on March 19, 2021 / 12:00 PM

© 2021 CBS Broadcasting Inc. All Rights Reserved.

efile.com

State Tax Extension(s) Select one more more states and find instructions on how to prepare and file extensions. Keep in mind, if you owe taxes and pay your state taxes online - when available - that counts as an extension in most cases. ... Prepare and eFile your 2020 Tax Returns on eFile.com. Got Questions? Contact us now. Continue Cancel.

scheffelboyle.com

The original filing deadline for 2021 individual tax returns was April 18, 2022. The original due date for business tax returns was March 15, 2022, and April 18, 2022. The due date is now May 16, 2022, for both individual and business returns to be filed by taxpayers with an IRS address of record in the above counties.

Tax Deadline Extension

On December 20, 2021, the IRS announced an extension of the tax deadline to May 16, 2022, for taxpayers in certain counties. This includes the filing of individual and business tax returns along with their estimated tax payments. This relief is being granted to taxpayers affected by the devastating storms that took place on December 10 in many parts of Illinois. This relief is currently available for the following counties: Bond, Cass, Coles, Effingham, Fayette, Jersey, Macoupin, Madison, Menard, Montgomery, Morgan, Moultrie, Pike, and Shelby. The original filing deadline for 2021 individual tax returns was April 18, 2022. The original due date for business tax returns was March 15, 2022, and April 18, 2022. The due date is now May 16, 2022, for both individual and business returns to be filed by taxpayers with an IRS address of record in the above counties. This also means taxpayers in the affected counties will have until May 16, 2022, to make 2021 IRA contributions. The quarterly income tax payments originally due on January 18, 2022, and April 18, 2022, are now also due on May 16, 2022. Also, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1, 2022, will now have until May 16, 2022, to file their 2021 tax return and pay any tax due.

The IRS automatically provides this filing and penalty relief to anyone with an IRS address of record located in the counties listed above. There is no need to contact anyone to get this relief.

Illinois Pass-Through Entity Tax to Avoid SALT Limit

In 2017, the Tax Cuts and Job Act limited state and local income taxes paid by individuals, whether from pass-through entity income or other income to a SALT (State and Local Tax) cap of ,000. Several states, including Illinois, enacted a pass-through tax to be paid at the entity level and credited at the individual level as a workaround to the federal SALT limit. The IRS recently released guidance approving these state workarounds.

An election is made by the partnership or S corporation for the Illinois pass-through entity (PTE) tax and estimated payments are required. An election may be made each year and is irrevocable for the year made. If you decide to elect the PTE tax, the partnership or S corporation is not required to withhold income tax on the partners that do not reside in the state of the partnership or S corporation. This allows a partner or shareholder to deduct Illinois tax on the business income in full on the federal return. This will benefit taxpayers who itemize and are subject to the ,000 SALT limit and those who do not itemize.

Until further guidance is issued, we are recommending that the IL pass-through entity tax be paid on or before 12/31/21 in order to claim a deduction on the partner’s or shareholder’s tax return.  This payment may be made using a payment voucher or through MyTax Illinois.

Shareholders of the S corporation and partners of the Partnership are allowed a refundable credit for the PTE tax paid by the pass-through entity. Those partners and shareholders must add their distributive share of the PTE tax back to their Illinois income. The tax liability at the partner level will then equal the PTE tax paid at the entity level.

Our team will continue to monitor the status of these and any other tax laws that change. Please contact your trusted Scheffel Boyle team member with questions. We are always here to help!

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ides.illinois.gov

Paid ,000 in cash wages in one calendar quarter or employed 10 or more workers for 20 weeks in a given calendar year for farm work. Non-profit organizations are liable for the year when they have employed four or more persons during each of 20 weeks in a given calendar year.

With MyTax Illinois you can file monthly or quarterly UI contribution and wage reports, pay UI taxes by using the secure online application, view UI account information and much more. Use MyTax Illinois today!

Most for-profit employers are required to pay contributions (taxes) as soon as they have:

  1. Paid

    ,500 in wages in a single calendar quarter, or employed one or more persons for 20 weeks in a given calendar year; or
  2. Paid

    ,000 in cash wages in one calendar quarter for domestic work; or
  3. ​Paid ,000 in cash wages in one calendar quarter or employed 10 or more workers for 20 weeks in a given calendar year for farm work.

Non-profit organizations are liable for the year when they have employed four or more persons during each of 20 weeks in a given calendar year.

Local governmental organizations are liable if they pay wages.​

MyTax Illinois / Wag​​e Reporting / Paying Taxes

Personal Liability of Responsible Parties

The Unemployment Insurance Act was recently amended to provide for the personal liability of any officer or employee of an employer who has control, supervision or responsibility for the filing of reports or the payment of contributions, payments in lieu of contributions, penalties or interest for the employer and who willfully fails to file the reports or make the payments. The courts have interpreted similar provisions broadly with respect to both who is a responsible party and what constitutes a willful failure to report or to pay. Beginning with the reports and payments for the first quarter of 2012, if an employer fails to file a report of fails to pay any contributions, payments in lieu of contributions, penalties or interest, when due, the Department will be looking to corporate officers and other responsible individuals for payment and, if such payments are not made, liens on home, autos, boats and other property and levies on personal bank accounts may follow. (news release)

Every business with employees in Illinois must register with IDES and file unemployment insurance contribution (tax) reports each quarter. Employers who are subject to the Illinois Unemployment Insurance Act supply the funds IDES uses to pay benefits to the unemployed.​

cookcountytreasurer.com

Tax Sales. 2022 Scavenger Sale: Monday, February 14 through Tuesday, March 2, 2022. 2019 Annual Sale: Scheduled to be held May 12 through May 18, 2022.

illinoisattorneygeneral.gov

Effective July 1, 2012, as a result of the enactment of SB 3802 as P.A. 97-0732, any and all payments of Illinois estate tax, interest and penalties must now be made payable to the Illinois State Treasurer. Payments of estate taxes will no longer be accepted by the County Treasurer of the county in which the decedent died a resident. A fillable form for making payment of the …

nbcchicago.com

Published March 25, 2020 • Updated on March 25, 2020 at 2:57 pm. Following the lead of the federal government, the state of Illinois …

20somethingfinance.com

Tax deadline: Indiana extended the tax deadline for filing and paying 2020 individual state income taxes to May 17. Iowa. Tax deadline: Iowa extended the tax deadline to June 1, 2021 for 2020 individual income tax returns and first quarter estimated income tax payments for individuals from the April 30, 2021 statutory deadline. Kansas

bdo.com

The new law does not specify how or when to make the election; however, it does provide the department with the authority to prescribe the manner in which the election is made. The Illinois PTE tax is at a rate of 4.95% on the PTE’s “net income,” which is defined as the PTE’s apportioned net income in Illinois for the tax year.

efile.com

State Income Tax Extensions are listed by each state below. Most state tax extensions are due by April 18, 2022. Once the Tax Day deadline passes, tax extensions can no longer be e-filed on eFile.com or anywhere. If you do not owe taxes, many states grant an automatic 6 month extension period. If you do owe taxes, paying state taxes online or via check serves as a state tax extension for …

illinoisattorneygeneral.gov

The "Illinois Estate and Generation-Skipping Transfer Tax Act" (35 ILCS 405/1, et seq.) may be found on the Illinois General Assembly's website. Illinois estate tax regulations (Ill. Admin. Code tit. 86, § 2000.100, et seq.) may be found on the Illinois General Assembly's website. Inheritance Tax Releases: An Illinois Inheritance Tax Release may be necessary if a decedent died …

smartasset.com

For non-retirees, calculating Illinois income tax is fairly easy as the state has a flat tax of 4.95% that applies to everyone, regardless of income. You can figure out what your take home pay will be using our Illinois paycheck calculator. Property taxes in Illinois are very burdensome, with an effective rate of 2.16%. That’s the second-highest in the country.

ides.illinois.gov

Quarterly Filing Requirements. Employers must file wage reports ( Form UI-3/40 ) and pay contributions in the month after the close of each calendar quarter - that is, on or before April 30, July 31, October 31, and January 31. It is an employer’s responsibility to file the proper forms on time either electronically or via obtaining paper forms on this site.

daviscpas.com

The U.S. Treasury Department and the IRS announced on March 17, 2021 that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021 to May 17, 2021. The federal tax filing deadline postponement to May 17, 2021 only applies to individual federal income tax returns and tax payments otherwise …

Illinois taxes deadlines extended due to COVID-19

Illinois is extending the 2019 tax year filing and payment due date for C corporations who file Form IL-1120 from April 15, 2020 to July 15, 2020. Illinois is not extending the filing or payment due dates for tax year 2019 returns for partnerships, including nonresident withholding (Form IL-1065), which still falls on April 15, 2020.

The Illinois Department of Revenue announced in Informational Bulletin FY 2020-24 (“Bulletin 2020-24”) that the tax filing and income tax payment deadlines for 2019 “individual returns, trusts, and corporations” were being automatically extended from April 15, 2020 to July 15, 2020. 

The department has not yet formally confirmed whether the July 15, 2020 deadline for filing and paying tax also applies to either replacement tax or pass-through withholding tax, given that the language of Bulletin 2020-24 refers exclusively to “income tax” payments.  However, in response to questions from practitioners, the department has informally made the following clarifications:

  • Illinois is extending the 2019 tax year filing and payment due date for C corporations who file Form IL-1120 from April 15, 2020 to July 15, 2020.
  • Illinois is not extending the filing or payment due dates for tax year 2019 returns for partnerships, including nonresident withholding (Form IL-1065), which still falls on April 15, 2020.
  • Illinois is not extending the due date of an already extended income tax return tax return and payment for fiscal year taxpayers whose extended due date would otherwise be April 15, 2020 must still file and pay on that date).

Illinois’ 2020 quarterly estimated tax payment

Bulletin 2020-24 explains that its’ relief “does NOT impact the first and second installments of estimated payments for 2020 taxes that are due April 15 and June 15.”

On April 2, 2020 Illinois published Informational Bulletin FY 2020-26 (“Bulletin 2020-26”) to explain the relief that Illinois would provide.

In Bulletin 2020-26, Illinois authorized taxpayers to base their 2020 estimated tax payments upon 100% of the taxpayers’ estimated 2020 liability or 100% of their actual 2018 or 2019 liability. 

In addition, taxpayers who timely pay in four equal installments  will avoid late payment penalties if they base their installments upon the lesser of (1) 90% of their 2020 estimated liability or (2) 100% of their actual 2018 or 2019 liability.

  • Calculating 2020 quarterly estimates based on 100% of 2018 liability for taxpayers who have not filed for 2019

According to Bulletin 2020-26, individuals who want to compute their 2020 estimated tax payments using 100% of their 2018 liability should use Form IL-1040-ES and base their 2020 estimated tax on the amount of tax they owed on 2018 Form IL-1040.

Businesses who want to compute their 2020 estimated tax payments using 100% of their 2018 liability should use the Form IL-1120 instructions, Appendix B, or IL-990-T instructions, Appendix A, to calculate their estimated payment amount and base their 2020 estimated tax on the amount of tax they owed on their 2018 return.

Taxpayers who wish to base their 2020 Illinois quarterly estimates upon 100% of their 2018 or 2019 liability should keep in mind that their expected 2020 payroll tax withholdings should be netted against their gross tax liability in order to compute the quarterly estimates.

  • Applying 2019 overpayments towards 2020 quarterly estimated taxes

Many Illinois taxpayers and practitioners have asked whether they could defer payment of their Illinois 2020 Q1 or Q2 estimates until July 15 by overpaying their Illinois extension payment on July 15, 2020, and retroactively applying that overpayment back to the April 15 and June 15 estimates in a way that would cause those estimates to have been timely paid. According to Bulletin 2020-26, however, overpayments shown on a 2019 return filed on July 15, 2020 will not be considered timely applied to a taxpayer’s 2020 Q1 or Q2 estimates to the extent the overpayment was comprised of payments received after April 15, 2020.

What’s next

Illinois is one of a minority of states who that has not followed the IRS’ approach of extending the due date of 2020 Q1 estimates to July 15, 2020.  In addition, its’ guidance regarding allowances for computing 2020 quarterly estimates was published less than two weeks before the due date of Illinois’ Q1 2020 estimate.  Even though this combination of factors is sure to raise questions, the department is unlikely to significantly clarify these issues prior to April 15. 

With the April 15, 2020 deadline coming up soon for all taxpayers’ 2020 Q1 estimates, as well as for the 2019 returns for partnerships, taxpayers should consult with their Wipfli tax advisor to evaluate the best approach for filing and paying these taxes.

Related content:

claremontmgmt.com

Federal and State payroll tax deposits due for monthly depositors: 17: C and S Corporations due for year ended July 31: 17: Extended due date for partnerships and individuals : 20: Form ST-1 due (sales tax) 31: Form UI-3/40 due (payroll) 31: Forms 941 and IL-941 due (payroll) November: 15: Federal and State payroll tax deposits due for monthly ...

2021 Tax Calendar (archived) →

January
17 4th quarter estimate due
17 Federal and State payroll tax deposits due for monthly depositors
17 C and S Corporations due for year ended October 31
20 Form ST-1 due (sales tax)
31 Form UI-3/40 due (payroll)
31 1099s due to recipients
31 Form 940 due (payroll)
31 Forms 941 and IL-941 due (payroll)
31 W-2 due to recipients
February
15 Federal and State payroll tax deposits due for monthly depositors
15 C and S Corporations due for year ended November 30
21 Form ST-1 due (sales tax)
28 1099s due to IRS
28 W-2 and W-3 due to IRS
March
15 Federal and State payroll tax deposits due for monthly depositors
15 SEP IRA Contribution due
15 S Corporations due for year ended December 31
21 Form ST-1 due (sales tax)
April
15 TAX DAY
15 IRA contributions due (for prior year)
15 Federal and State payroll tax deposits due for monthly depositors
15 C and S Corporations due for year ended January 31
15 1st quarter estimate due
15 Partnerships and individual returns due
15 C Corporations due for year ended December 31
20 Form ST-1 due (sales tax)
29 Form UI-3/40 due (payroll)
29 Form 941 and IL-941 due (payroll)
May
16 Federal and State payroll tax deposits due for monthly depositors
16 C and S Corporations due for year ended February 28
20 Form ST-1 due (sales tax)
June
15 Federal and State payroll tax deposits due for monthly depositors
15 C and S Corporations due for year ended March 31
15 2nd quarter estimate due
20 Form ST-1 due (sales tax)
July
15 Federal and State payroll tax deposits due for monthly depositors
15 C and S Corporations due for year ended April 30
20 Form ST-1 due (sales tax)
29 Form UI-3/40 due (payroll)
29 Forms 941 and IL-941 due (payroll)
August
15 Federal and State payroll tax deposits due for monthly depositors
15 C and S Corporations due for year ended May 31
22 Form ST-1 due (sales tax)
September
15 Federal and State payroll tax deposits due for monthly depositors
15 C and S Corporations due for year ended June 30
15 3rd quarter estimate due
15 SEP IRA contribution due (if tax return extended)
15 Extended due date for C and S corporations
20 Form ST-1 due (sales tax)
October
17 Federal and State payroll tax deposits due for monthly depositors
17 C and S Corporations due for year ended July 31
17 Extended due date for partnerships and individuals
20 Form ST-1 due (sales tax)
31 Form UI-3/40 due (payroll)
31 Forms 941 and IL-941 due (payroll)
November
15 Federal and State payroll tax deposits due for monthly depositors
15 C and S Corporations due for year ended August 30
20 Form ST-1 due (sales tax)
December
15 Federal and State payroll tax deposits due for monthly depositors
15 C and S Corporations due for year ended September 30
20 Form ST-1 due (sales tax)

Illinois Department of Revenue - State Sales Tax Filing

Are you required to file for Illinois Sales Tax? Claremont Management will file and facilitate your payment to the State of Illinois for JUST .50 PER LOCATION PER FILING!

Learn more →

money.com

The state tax filing and payment deadline has been moved to May 17, 2021. Pennsylvania. The state tax filing and payment deadline has been moved to May 17, 2021. Rhode Island. The state tax filing and payment deadline has been moved to May 17, 2021. South Carolina. The state tax filing and payment deadline has been moved to May 17, 2021. …

marketrealist.com

On April 7, CNBC updated a state-by-state income tax deadline breakdown. The update shows that all 42 states that charge individual income tax have postponed the tax deadline. All but four of ...

hmblaw.com

www2.deloitte.com

If enacted, t he election under S.B. 2531 can be made for taxable years ending on or after December 31, 2021 and beginning prior to January 1, 2026, provided that a ,000 limitation for the state and local tax deduction under IRC section 164(b)(6) still applies. This Tax Alert summarizes how the proposed Illinois PTE tax election applies

Individual Federal and Illinois Income Tax Deadline for ...

The Internal Revenue Service and the State of Illinois have officially moved the 2020 income tax filing deadline for individuals to May 17, 2021 from April 15, 2021. Individual taxpayers can also postpone Federal and Illinois income tax payments due for the 2020 tax year to May 17, 2021 without incurring additional penalties or interest.

The Internal Revenue Service and the State of Illinois have officially moved the 2020 income tax filing deadline for individuals to May 17, 2021 from April 15, 2021. Individual taxpayers can also postpone Federal and Illinois income tax payments due for the 2020 tax year to May 17, 2021 without incurring additional penalties or interest.  

While this is welcome news for some taxpayers, there are a number of concerns that this limited extension does not address. The IRS extension does not:

  • Extend the time for paying first quarter estimated income taxes for the 2021 tax year. These payments remain due on April 15, 2021. It is difficult for taxpayers to determine the amount of the estimated tax required without, at least, a reasonable estimate of their 2020 tax situation. Without an extension of these payments, the filing extension to May 17, 2021 has minimal value for many taxpayers.
  • Extend other tax filings and payments that are currently due on April 15, 2021, including: • Federal and Illinois income tax filings and tax payments for the calendar year 2020 trust returns; and

    • Federal and Illinois income tax filings and tax payments for the calendar year 2020 corporate returns.

The state and local tax authorities are not obligated to match the Federal extension either. While several states like Illinois have independently extended their due dates, the vast majority have not and we await separate guidance on a jurisdiction-by-jurisdiction basis.

We will keep you informed as additional guidance becomes available.

If you have questions or concerns regarding this Client Alert, please contact Frank Washelesky at [email protected] or your ORBA advisor.

Forward Thinking

gardilaw.com

For estates over million, the tax rate is graduated with the upper level (.04 million and up) at 16 percent. To easily calculate your tax, Illinois provides an online estate tax calculator. It is important to note that the Illinois exemption is not portable between spouses. The exemption is still million, even if both people die.

ilga.gov

capital. Illinois’ franchise tax is actually three separate taxes, all based on paid-in capital. When a corporation first registers with the Secretary of State it pays a tax on paid-in capital (0.10%). After that, corporations pay an annual tax on paid-in capital at the same rate (0.10%) and also pay a tax on any additional paid-in capital

Illinois Sales Tax Information, Sales Tax Rates, and Deadlines

Illinois has a base state sales tax rate of 5%. In addition to this rate, there are also several location specific sales taxes. These are administered by both home rule units and non-home rule units. A home rule unit in Illinois is defined as a county with a chief executive officer or a municipality with a population of at least 25,000.

Illinois Sales TaxState rate: 5%
Maximum combined rate: 7.5%
Sourcing: Origin
Tax Holidays: None
Governing Body: Illinois Department of Revenue

The State of Illinois’s sales tax laws are highly dependent on the location of a sale in the state, meaning there are a number of factors to consider when determining the rate you will collect. With state sales tax, home rule tax, non-home rule tax, and several other location-dependent sales taxes, it’s important to know exactly what you are expected to pay based on location in advance.

Illinois Sales Tax Tates

Illinois has a base state sales tax rate of 5%. In addition to this rate, there are also several location specific sales taxes. These are administered by both home rule units and non-home rule units. A home rule unit in Illinois is defined as a county with a chief executive officer or a municipality with a population of at least 25,000. It is possible for smaller municipalities to vote to become home rule units as well. These home rule sales tax rates are defined on The State of Illinois’s Department of Revenue website, and are between 0.25% and 2.50% depending on location.

Additional local sales taxes at the county level include County Public Safety, Public Facilities, and Transportation Sales Taxes. These are charged at the county level and range between 0.25% and 1.25%. An additional 1.00% sales tax is also charged in certain counties with the County School Facility Tax Rate. All of these taxes are rolled together into either State, Local, or County level taxes and all are collected by the State of Illinois, though some local governments may impose taxes beyond these.

The above rates apply to general merchandise, which includes most tangible property, with the exception of qualifying food, drugs, and medical appliances, and any items that require a title or registration.

Determining Sales Tax Nexus in Illinois

The above tax rates need only be collected if you have sales tax nexus in the State of Illinois. To determine if this applies to you, there are a number of things to consider. There are also some exemptions on specific goods, even if you do have nexus in the state. For those that do not currently operate out of Illinois, here is how to determine if you have nexus and will need to collect Illinois sales tax on select transactions.

The following constitute nexus in the state:

  • Any third party affiliates or partners operating in Illinois
  • Any form of representation as an agent, contractor, employee or otherwise in Illinois
  • Any place of business in Illinois, including an office, warehouse, or other place of business.

While there are some possible changes pending in Illinois, including the Streamlined Sales Tax guidelines that they have yet to implement, the above will allow you to determine nexus currently.

What Is Eligible for Sales Tax in Illinois?

Like most states, Illinois has a list of items that are not subject to sales tax. This list of exemptions includes the following physical goods:

  • Services – The majority of services in Illinois are not subject to sales tax. There are, however, exceptions to this rule including activities that involve creating or manufacturing a finished good for sale.
  • Certain Food, Drugs and Medical Appliances – While not always immune from sales tax, these items are taxed differently in Illinois. This includes food that is not prepared for immediate consumption, prescription medications, and prescription medical appliances that are used to replace a malfunctioning part of the human body (contact lenses, eyewear, prostheses, dentures, and syringes for insulin).
  • Vehicles requiring registration or titling – Motor vehicles, watercraft, aircraft, and trailers, and other vehicles that must be registered have different tax requirements, which you can read in STS-76, Illinois’s Vehicle Tax Information Guide.

Because of the complexity of the sales and use tax restrictions in Illinois, there are several things to keep in mind. It’s recommended to reference Regulation 130.310 on the Illinois Revenue website, which goes into greater details on the general merchandise to which sales tax must apply.

Illinois Sales Tax Registration

To collect sales tax in the State of Illinois, a business must first register for a sales tax permit, required before you make any purchases or sales and before you hire your first employee. To do so, you can use the MyTaxIllinois website or you can complete the paper form, REG-1 to obtain your sales tax permit.

To complete your sales tax permit application, you will need all of your business’s identifying information, a detailed breakdown of your business structure, owners, and officers, and a list of what you will be collecting sales tax on. The process is free and takes about 2 days online, or 6-8 weeks if you mail the paper form to process, so it’s recommended you file this as early as possible so you have a permit in hand before you start operating in Illinois.

Once you receive your permit, you are not required to renew it regularly, but it is recommended to keep it up to date with relevant information as your business grows.

Filing Illinois Sales Tax Returns

You will pay Illinois sales and use tax by:

  • For Those in State – Illinois is an origin-based state so you will collect sales tax based on where you are located in the state. Because of the varied nature of county, municipality, and state rates, this makes the process much easier.
  • For Those Out of State – For those outside of Illinois who have nexus in the state, you must charge sales tax based on the destination of the purchase. This requires careful tracking of locations and the ability to quickly calculate the final sales tax rate for any given location in the state.
  • Shipping and Handling – Shipping is not taxable if it is itemized from the item being purchased. If the two are not separated, however, it is subject to tax and you will need to collect it based on destination of the buyer.
  • Filing Your Return – To file your sales tax return with the State of Illinois, you can use the My Tax Illinois website or you can file the form ST-1 via mail.

How frequently you need to file your sales taxes will be determined by the amount of sales tax you collect on a regular basis. Your frequency will be determined at the time you obtain your permit, and may change at any time. If the Illinois Department of Revenue decides to change your frequency, they will notify you before the next payment is due. The following frequencies apply depending on your liability:

  • Annual – Less than due per year
  • Quarterly – Between and 200 per year
  • Monthly – More than 0 per year

Illinois offers a discount to those who pay their collected sales tax early or on time on a regular basis. The discount varies depending on what is owed and on your filing frequency. Because one third of the 6% sales tax rate cannot be discounted, it is recommended you use the calculator available on the Illinois Department of Treasury website to calculate this number.

Illinois Sales Tax Deadlines

Quarterly: The following deadlines apply to those whose sales tax liability in Illinois is between and 0 per year:

PeriodDue Date
January – March (Q1)April 20
April – June (Q2)July 20
July – September (Q3)October 20
October – December (Q4)January 20

Monthly: The following deadlines apply to those whose sales tax liability in Illinois is greater than 0 per year:

PeriodDue Date
JanuaryFebruary 20
FebruaryMarch 20
MarchApril 20
AprilMay 20
MayJune 20
JuneJuly 20
JulyAugust 20
AugustSeptember 20
SeptemberOctober 20
OctoberNovember 20
NovemberDecember 20
DecemberJanuary 20

Annual: For those businesses with liability less than per year, you will file annually and only online.

Penalties and Interest for Late Payments

If you fail to pay your sales tax due to Illinois on time, there will be penalties and fees applied. For a late filing, there is a flat 2% applied to the total of the tax due. If you pay late, you’ll owe 2% of tax due within 30 days, 10% if paid between 30 and 90 days, 15% if paid between 90 and 180 days, and 20% if the tax is more than 180 days late. There are more extreme penalties that may apply for those with serial offenses or if there is evidence of fraud in your returns.

Filing is required for all who have a sales tax permit, including those with a zero return. Penalties can also apply if you don’t file at all, even with a zero return.

Resources:

Illinois Sales Tax Software

Illinois’s variable sales tax rates can be frustrating for out of state sellers who don’t have a means of tracking the different rates based on location. It is important that you record and pay the sales tax due on time for the states in which you have sales tax nexus. This is where a tool like TaxTools can be of use. With detailed data review tools, sorting tools to ensure you are paying the right sales tax rates based on buyer destination, and integration with existing eCommerce platforms in a single interface, it’s much easier to manage than doing it manually. To learn more, contact us today or click here to sign up for a free trial and get started.

chicago.suntimes.com

Federal and state of Illinois 2019 income tax returns — and tax payments for individuals and corporations— are now due July 15. However, the state of Illinois will be collecting 2020 first ...

tax-rates.org

The exact property tax levied depends on the county in Illinois the property is located in. Lake County collects the highest property tax in Illinois, levying an average of ,285.00 (2.19% of median home value) yearly in property taxes, while Hardin County has the lowest property tax in the state, collecting an average tax of 7.00 (0.71% of ...

taxhow.net

Filing an Extension in Illinois. Illinois Department of Revenue grants an automatic six-month extension of time to file your return. If you determine that you will owe tax, you must use Illinois Form IL-505-I, Automatic Extension Payment for Individuals, to pay any tax you owe to avoid penalty and interest on tax not paid by April 15, 2022.If you are expecting a refund from the …

Illinois Franchise Tax

Due Date: First day of your business’ anniversary month. What Online Sellers Need to Know. The State of Illinois requires an Illinois LLC or partnership to file an annual report with the Illinois Secretary of State due before the first day of your business’ anniversary month. For example, if you were formed on July 15, 2021, your annual ...

For eCommerce businesses operating out of Illinois, the franchise tax obligations for your business will depend on the form of your business - is it an LLC, partnership or corporation?

Below we outline the 411 on Illinois franchise taxes for your business. Note that the due dates we included are for calendar year taxpayers and may not apply to you if your business has a tax year that does not end on December 31.

In addition, the information below refers only to franchise or net worth tax and does not include registration fees or other regulatory payments that may be due by your business. For more information on Franchise taxes, check out the following blog.

 

LLC and Limited Partnerships

Due Date: First day of your business’ anniversary month

What Online Sellers Need to Know

The State of Illinois requires an Illinois LLC or partnership to file an annual report with the Illinois Secretary of State due before the first day of your business’ anniversary month.

  • For example, if you were formed on July 15, 2021, your annual report is due June 30, 2022.
  • If you don’t recall in which month your business was formed, you can easily find that information by searching the Illinois Business Database.

While the filing of the annual report comes with an annual registration fee, no actual Franchise tax applies to an LLC or partnership (unless treated as a corporation for tax purposes).

 

Corporations

Due Date: First day of your business’ anniversary month

What Online Sellers Need to Know

The State of Illinois requires an Illinois corporation to file an annual report with the Illinois Secretary of State due before the first day of your business’ anniversary month

  • For example, if you were formed on July 15, 2021, your annual report is due June 30, 2022.
  • If you don’t recall in which month your business was formed, you can easily find that information by searching the Illinois Business Database.
  • A filing registration fee is also required to be paid in addition to the franchise tax calculated.

How Do You Calculate Your Franchise Tax?

There are 2 ways of calculating your total franchise tax. A business should choose the method that results in the smallest amount due.

Here’s a quick breakdown of both options:

1. The Allocation Factor

You will need to determine your corporation’s total gross assets and revenue. To calculate the franchise tax:

    1. Take the total value of property owned in Illinois total gross assets earned from business conducted in Illinois during the previous fiscal year.
    2. Take the total value of property owned (anywhere) total gross assets earned during the previous fiscal year (all locations).
    3. Calculate A divided by B to get your franchise tax due.

2. Paid-in-Capital

This method is based on the amount of money your business earns from its shareholders in exchange for stock. 

    1. The first year, you’ll pay 0.15% of your total paid in capital.
    2. Afterwards, you’ll pay 0.1%.

The Franchise tax in Illinois is not all bad news - every year you can reduce your franchise tax liability by

,000. This means that if either calculation method (allocation or paid in capital) results in an amount of less than

,000, then your total franchise tax due will be

.

*The information provided on this website does not, and is not intended to, constitute legal advice. All information, content, and materials available on this site are for general informational purposes only. Readers are advised to consult with their attorney or accountant with any questions or concerns.*

UPDATE: Illinois SALT Workaround Instructions, PTE Payment ...

15-12-2021 · However, the Illinois Department of Revenue will waive late estimated payment penalties related to an election to pay the PTE tax for tax years ending before December 31, 2022. Taxpayers are encouraged to make voluntary prepayment of the pass-through entity tax to reduce any tax payment due when the return is filed.

15-12-2021

Last August, we published a blog post entitled “What The New SALT Workaround Legislation Means for Taxpayers” detailing how the new Illinois law could provide owners of partnerships or S corporations with a workaround to the federal ,000 state and local tax (SALT) deduction cap for individual taxpayers.

The following update is intended for those business owners electing to take advantage of the workaround by paying the PTE (pass-through entity tax) for the current tax year.

The election to pay the PTE tax for 2021 is made on Form IL-1065, Partnership Replacement Tax Return, or Form IL-1120-ST, Small Business Replacement Tax Return. It’s important to note that businesses taking advantage of this election for 2021, regardless of accounting method (cash or accrual), must submit their estimated PTE tax payment by December 31, 2021 in order for the shareholders or partners to secure the deduction.

For businesses electing to pay the entity-level tax in future tax years, quarterly estimated payments must be paid if the expected tax due (including both the pass-through entity tax and replacement tax) is more than 0 or incur late estimated payment penalties.

However, the Illinois Department of Revenue will waive late estimated payment penalties related to an election to pay the PTE tax for tax years ending before December 31, 2022. Taxpayers are encouraged to make voluntary prepayment of the pass-through entity tax to reduce any tax payment due when the return is filed. These prepayments can be made electronically using MyTax Illinois or ACH Credit, or by mail using 2021 Form IL-1065-V or 2021 Form IL-1120-ST-V.

The penalty relief only applies to partnerships and subchapter S corporations that elect to pay PTE tax. Partners and shareholders of these entities are not eligible for the penalty relief. However, partners and shareholders may claim a tax credit against their own tax liability for distributive shares of the PTE tax credit and may adjust their estimated payments accordingly.

If you have any questions or need assistance in this or any other tax-related matter, please do not hesitate to contact a Weiss tax professional.

April 2022 Sales Tax Due Dates

22-03-2022 · Monthly sales tax due on April 20, 2022 Quarterly sales tax due on April 20, 2022 Indiana (A) Monthly sales tax due on April 20, 2022 Never miss a filing due date with AutoFile AutoFile automatically submits returns and remittances on your behalf to the states where you’re enrolled, so you never have to worry about deadlines. Learn more Iowa

22-03-2022

Resources Blog File


by Sarah Craig March 22, 2022


Find your state (or states) below to see your April sales tax due date. And if you need help collecting, reporting and filing sales tax, sign up for a 30-day free trial of TaxJar.

April 2022 Sales Tax Due Dates, in Order of State

An (A) symbol means the state has an Amazon Fulfillment Center.

Alabama 

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Alaska (A)

Monthly sales tax due on May 2, 2022

Quarterly prepayment due on May 2, 2022

Quarterly sales tax due on May 2, 2022

Arizona (A)

Monthly sales tax due on April 28, 2022

Quarterly sales tax due on April 28, 2022

Arkansas

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

California (A)

Monthly sales tax due on May 2, 2022

Quarterly prepay sales tax due on May 2, 2022

Quarterly sales tax due on May 2, 2022

Colorado

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Connecticut (A)

Monthly sales tax due on May 2, 2022

Quarterly sales tax due on May 2, 2022

District of Columbia

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Florida (A)

Monthly sales tax due on April 19, 2022

Quarterly sales tax due on April 19, 2022

Georgia (A)

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Hawaii

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Idaho

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Illinois (A)

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Indiana (A)

Monthly sales tax due on April 20, 2022

AutoFile automatically submits returns and remittances on your behalf to the states where you’re enrolled, so you never have to worry about deadlines.

Learn more

Iowa

Monthly sales tax due on April 20, 2022

Quarterly prepay due on May 2, 2022

Quarterly sales tax due on May 2, 2022

Kansas (A)

Monthly sales tax due on April 25, 2022

Quarterly sales tax due on April 25, 2022

Kentucky (A)

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Louisiana

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Maine

Monthly sales tax due on April 15, 2022

Quarterly sales tax due on April 15, 2022

Maryland (A)

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Massachusetts (A)

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Michigan (A)

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Minnesota (A)

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Mississippi

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Missouri

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on May 2, 2022

Nebraska

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Nevada (A)

Monthly sales tax due on May 2, 2022

Quarterly sales tax due on May 2, 2022

New Jersey (A)

Monthly sales tax due on April 20, 2022

Quarterly prepay due on April 20, 2022

Quarterly sales tax due on April 20, 2022

New Mexico

Monthly sales tax due on April 25, 2022

Quarterly sales tax due on April 25, 2022

New York

Quarterly prepayment due on April 20, 2022

North Carolina

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on May 2, 2022

North Dakota

Monthly sales tax due on May 2, 2022

Quarterly sales tax due on May 2, 2022

Ohio (A)

Monthly sales tax due on April 25, 2022

Oklahoma

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Pennsylvania (A)

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Rhode Island

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on May 2, 2022

South Carolina (A)

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

South Dakota

Monthly sales tax due on April 20, 2022

Quarterly  sales tax due on April 20, 2022

Tennessee (A)

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 202

Texas (A)

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Utah

Monthly sales tax due on May 2, 2022

Quarterly sales tax due on May 2, 2022

Vermont

Monthly sales tax due on April 25, 2022

Quarterly sales tax due on April 25, 2022

Virginia (A)

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022

Washington (A)

Monthly sales tax due on April 25, 2022

Quarterly sales tax due on May 2, 2022

West Virginia

Monthly sales tax due on April 20, 2022

Quarterly sales tax due on April 20, 2022 

Wisconsin (A)

Monthly sales tax due on May 2, 2022

Quarterly sales tax due on May 2, 2022

Note: In Wisconsin, early monthly sales tax filers are required to file by the 20th of the month following the end of the reporting period. A return must be filed for each period, even if no tax is due for that period. Learn more here.

Wyoming

Monthly sales tax due on May 2, 2022

Quarterly sales tax due on May 2, 2022

Talk to sales and request a demo today to learn how we can help you manage your sales tax liability.

Learn 6 key steps to attain sales tax compliance now -- and in the future -- with this 2022 Sales Tax Preparedness Guide.

Download the 2022 guide
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The State of Illinois uses the same filing period as the IRS / Federal government. Therefore, Illinois personal income tax returns are due by the 15 th day of the 4 th month following the …

IRS will delay tax filing due date until May 17

18-03-2021 · Mar 17, 2021 at 7:35 PM Americans will be getting extra time to prepare their taxes. The Internal Revenue Service says it’s delaying the traditional tax filing deadline from April 15 until May 17....

18-03-2021
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Americans will be getting extra time to prepare their taxes. The Internal Revenue Service says it’s delaying the traditional tax filing deadline from April 15 until May 17.

The IRS announced the decision Wednesday and said it would provide further guidance in the coming days. The move provides more breathing room for taxpayers and the IRS alike to cope with changes brought on by the pandemic.

“The IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” IRS Commissioner Chuck Rettig said in a statement.

The decision postpones when individual taxpayers must file their return and when their payment is due. The IRS said taxpayers who owe money would not face any further penalties or interest if they pay by May 17. The new deadline also applies to individuals who pay self-employment tax.

Taxpayers do not need to take any action to take advantage of the new deadline. Those who need more time beyond May 17 can request an extension until October 15.

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The new deadline does not apply to estimated tax payments that are due on April 15; those remain due by that day.

The decision to extend the deadline comes after an intense year for the chronically underfunded IRS. The pandemic hit in the middle of last year’s tax filing season, setting the agency back in terms of processing. The IRS has also been a key player in doling out government relief payments, and is currently helping to send out the third round of payments in the middle of the current tax filing season.

Additionally, the extension gives the IRS time to issue guidance on recent tax law changes. The American Rescue Plan excludes the first ,200 of unemployment benefits from federal taxes for those making less than 0,000.

“Never before has the law changed so substantially in the middle of tax filing season,” Patrick Thomas, director of Notre Dame Law School’s Tax Clinic, said in a statement.

The IRS must issue guidance for taxpayers and tax preparers alike as millions of returns already filed likely do not account for this change.

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A number of lawmakers and professionals from the tax community have urged the tax filing season be extended to accommodate for these pressures. The House Ways and Means Committee applauded the move.

“This extension is absolutely necessary to give Americans some needed flexibility in a time of unprecedented crisis,” said Chairman Richard Neal, D-Mass. and Rep. Bill Pascrell Jr., D-N.J., chairman of the panel’s oversight subcommittee.

Rettig is expected to speak to the committee tomorrow about how the IRS is managing this filing season and the need for this extension.

The IRS continues to urge people to file as soon as possible, particularly those who are owed refunds. In some cases filing will help taxpayers more quickly get any remaining relief payments they are entitled to.

AP Economics Writer Martin Crutsinger contributed to this report from Washington.

Illinois Sales & Use Tax Guide

Sales tax 101. Sales tax is a tax paid to a governing body (state or local) on the sale of certain goods and services. Illinois first adopted a general state sales tax in 1933, and since that time, the base sales tax rate has risen to 6.25 percent. On top of the state sales tax, there may be one or more local sales taxes, as well as one or more ...

Learn about sales tax automation

Introducing our Sales Tax Automation 101 series. The first installment covers the basics of sales tax automation: what it is and how it can help your business.

Read Chapter 1

As a business owner selling taxable goods or services, you act as an agent of the state of Illinois by collecting tax from purchasers and passing it along to the appropriate tax authority. Sales and use tax in Illinois is administered by the Illinois Department of Revenue (DOR).

Any sales tax collected from customers belongs to the state of Illinois, not you. It’s your responsibility to manage the taxes you collect to remain in compliance with state and local laws. Failure to do so can lead to penalties and interest charges.

When you need to collect Illinois sales tax

In Illinois, sales tax is levied on the sale of tangible goods and some services. The tax is collected by the seller and remitted to state tax authorities. The seller acts as a de facto tax collector.

To help you determine whether you need to collect sales tax in Illinois, start by answering these three questions:

  1. Do you have nexus in Illinois?
  2. Are you selling taxable goods or services to Illinois residents?
  3. Are your buyers required to pay sales tax?

If the answer to all three questions is yes, then you’re required to register with the state tax authority, collect the correct amount of sales tax per sale, file returns, and remit to the state.

Failure to collect Illinois sales tax

If you meet the criteria for collecting sales tax and choose not to collect sales tax, you’ll be held responsible for the tax due, plus applicable penalties and interest .

It’s extremely important to set up tax collection at the point of sale — it’s near impossible to collect sales tax from customers after a transaction is complete.

The need to collect sales tax in Illinois is predicated on having a significant connection with the state. This is a concept known as nexus. Nexus is a Latin word that means "to bind or tie," and it’s the deciding factor for whether the state has the legal authority to require your business to collect, file, and remit sales tax.

Sales tax nexus in all states used to be limited to physical presence: A state could require a business to collect and remit sales tax only if it had a physical presence in the state, such as employees or an office, retail store, or warehouse.

In June 2018, the Supreme Court of the United States overruled the physical presence rule with its decision in South Dakota v. Wayfair, Inc. States are now free to tax businesses based on their economic and virtual connections to the state, or economic nexus.

While physical presence still triggers a sales tax collection obligation in Illinois, it’s now possible for out-of-state sellers to have sales tax nexus with Illinois.

Out-of-state sellers with no physical presence in Illinois can establish sales tax nexus in the following ways:

Affiliate nexus: Having ties to businesses or affiliates in Illinois. This includes, but isn’t limited to, the design and development of tangible personal property (goods) sold by the remote retailer, or solicitation of sales of goods on behalf of the retailer. Affiliate nexus can also be established if:

  • The remote retailer pays a commission or other consideration to the person located in Illinois; and
  • The remote retailer’s cumulative gross receipts from all sales made to Illinois customers under such contracts exceed ,000 during the preceding four quarterly periods.

Click-through nexus: Having an agreement to reward a person(s) in the state for directly or indirectly referring potential purchasers of goods through an internet link, website, or otherwise, and having cumulative gross receipts from sales of tangible personal property by the retailer to customers referred by all persons in Illinois that exceed ,000 during the preceding four quarterly periods.

Economic nexus: Having a certain amount of economic activity in the state. For sales made on and after October 1, 2018, a remote seller must register with the state then collect and remit Illinois sales tax if the remote seller meets either of the following criteria (the economic thresholds):

  • The remote seller's cumulative gross receipts from sales of taxable and exempt tangible personal property to purchasers in Illinois are 0,000 or more in the preceding 12 months; or
  • The remote seller sold taxable and exempt tangible personal property into Illinois in 200 or more separate transactions during the preceding 12 months.

Trade shows: Attending conventions or trade shows in Illinois. You may be liable for collecting and remitting Illinois use tax on orders taken or sales made during Illinois conventions or trade shows. However, you generally would not have nexus if all the following are true:

  • You’re in the state solely to engage in convention or trade show activities;
  • You or your representatives attend no more than two Illinois trade shows during any calendar year;
  • You’re physically present at those two Illinois trade shows no more than eight days during any calendar year; and
  • Combined gross receipts from taxable sales made at all Illinois trade shows during any single calendar year do not exceed ,000.

If you have sales tax nexus in Illinois, you’re required to register with the Illinois Department of Revenue and to charge, collect, and remit the appropriate tax to the state.

For more information, see the Illinois Department of Revenue Use Tax Guidance for Remote Sellers, General Definitions, Use Tax, and Trade Show Appearances.

Sales tax nexus can linger even after a retailer ceases the activities that caused it to be “engaged in business” in the state. This is known as trailing nexus. As of April 2019, Illinois does not have an explicitly defined trailing nexus policy.

Fulfillment by Amazon (FBA)

If you’re an active Amazon seller and you use Fulfillment by Amazon (FBA), you need to know where your inventory is stored and if its presence in a state will trigger nexus. FBA sellers can also download an Inventory Event Detail Report from Amazon Seller Central to identify inventory stored in Illinois.

If you sell taxable goods to Illinois residents and have inventory stored in the state, you may have nexus and an obligation to collect and remit tax. To begin to understand your unique nexus obligations, check out our free economic nexus tool or consult with a trusted tax advisor.

Sourcing sales tax in Illinois: which rate to collect

In some states, sales tax rates, rules, and regulations are based on the location of the seller and the origin of the sale (origin-based sourcing). In others, sales tax is based on the location of the buyer and the destination of the sale (destination-based sourcing).

Illinois generally uses destination-based sourcing. This means you’re responsible for applying the sales tax rate determined by the ship-to address on all taxable sales.

For additional information, see the Illinois Department of Revenue.

After determining you have sales tax nexus in Illinois, you need to register with the proper state authority and collect, file, and remit sales tax to the state. We get a lot of questions about this and recognize it may be the most difficult hurdle for businesses to overcome. Avalara Licensing can help you obtain your Illinois business license and sales tax registration.

How to register for an Illinois seller's permit

You can register for an Illinois seller’s permit online through the DOR. To apply, you’ll need to provide the DOR with certain information about your business, including but not limited to:

  • Business name, address, and contact information
  • Federal EIN number
  • Date business activities began or will begin
  • Projected monthly sales
  • Projected monthly taxable sales
  • Products to be sold

Cost of registering for an Illinois seller's permit

There is currently no cost to register your business in Illinois.

Acquiring a registered business

You must register with the Illinois Department of Revenue if you acquire an existing business in Illinois. The state requires all registered businesses to have the current business owner’s name and contact information on file.

Streamlined Sales Tax (SST)

The Streamlined Sales and Use Tax Agreement (SSUTA), or Streamlined Sales Tax (SST), is an effort by multiple states to simplify the administration and cost of sales and use tax for remote sellers. Remote sellers can register in multiple states at the same time through the Streamlined Sales Tax Registration System (SSTRS).

As of April 2019, Illinois is not an SST member state.

Once you've successfully registered to collect Illinois sales tax, you'll need to apply the correct rate to all taxable sales, remit sales tax, file timely returns with the DOR, and keep excellent records. Here’s what you need to know to keep everything organized and in check.

How you collect Illinois sales tax is influenced by how you sell your goods:

Brick-and-mortar store: Have a physical store?Brick-and-mortar point-of-sale solutions allow users to set the sales tax rate associated with the store location. New tax groups can then be created to allow for specific product tax rules.

Hosted store: Hosted store solutions like Shopify and Squarespace offer integrated sales tax rate determination and collection. Hosted stores offer sellers a dashboard environment where Illinois sales tax collection can be managed.

Marketplace: Marketplaces like Amazon and Etsy offer integrated sales tax rate determination and collection, usually for a fee. As with hosted stores, you can set things up from your seller dashboard and let your marketplace provider do most of the heavy lifting.

Mobile point of sale: Mobile point-of-sale systems like Square rely on GPS to determine sale location. The appropriate tax rate is then determined and applied to the order. Specific tax rules can be set within the system to allow for specific product tax rules.

Illinois sales tax collection can be automated to make your life much easier. Avalara AvaTax seamlessly integrates with the business systems you already use to deliver sales and use tax calculations in real time.

Some goods are exempt from sales tax under Illinois law. Examples include fuel for international flights, gold bullion issued by qualifying governments, and newspapers and magazines.

We recommend businesses review the laws and rules put forth by the DOR to stay up to date on which goods are taxable and which are exempt, and under what conditions.

Some customers are exempt from paying sales tax under Illinois law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale.

Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.

Misplacing a sales tax exemption/resale certificate

Illinois sales tax exemption and resale certificates are worth far more than the paper they’re written on. If you’re audited and cannot validate an exempt transaction, the DOR may hold you responsible for the uncollected sales tax. In some cases, late fees and interest will be applied and can result in large, unexpected bills.

Sales tax holidays exempt specific products from sales and use tax for a limited period, usually a weekend or a week. Approximately 17 states offer sales tax holidays every year.

As of April 2019, however, there are no sales tax holidays in Illinois.

You're registered with the Illinois Department of Revenue and you've begun collecting sales tax. Remember, those tax dollars don't belong to you. As an agent of the state of Illinois, your role is that of intermediary to transfer tax dollars from consumers to the tax authorities.

Once you’ve collected sales tax, you’re required to remit it to the DOR by a certain date. The DOR will then distribute it appropriately.

Filing an Illinois sales tax return is a two-step process comprised of submitting the required sales data (filing a return) and remitting the collected tax dollars (if any) to the DOR. The filing process forces you to detail your total sales in the state, the amount of sales tax collected, and the location of each sale.

Online filing with MyTaxIllinois is recommended, but filing a paper version of form ST-1 is acceptable for any business with annual liability less than ,000.

The DOR will assign you a filing frequency. Typically, this is determined by the size or sales volume of your business. State governments generally ask larger businesses to file more frequently. See the filing due dates section for more information.

Illinois sales tax returns and payments must be remitted at the same time; both have the same due date.

You may file directly with the DOR by visiting their site and entering your transaction data manually. This is a free service, but preparing Illinois sales tax returns can be time-consuming — especially for larger sellers.

Using a third party to file returns

To save time and avoid costly errors, many businesses outsource their sales and use tax filing to an accountant, bookkeeper, or sales tax automation company like Avalara. This is a normal business practice that can save business owners time and help them steer clear of costly mistakes due to inexperience and a lack of deep knowledge about Illinois sales tax code.

Avalara Returns for Small Business is an affordable third-party solution that helps business owners simplify the sales tax returns process and stay focused on growing their business. Learn how automating the sales tax returns process could help your business. See our offer to try Returns for Small Business free for up to 60 days. Terms and conditions apply.

Filing when there are no sales

Once you have an Illinois seller's permit, you’re required to file returns at the completion of each assigned collection period regardless of whether any sales tax was collected. When no sales tax was collected, you must file a "zero return.”

Failure to submit a zero return can result in penalties and interest charges.

The DOR requires all businesses to "close their books" by filing a final sales tax return. This also holds true for business owners selling or otherwise transferring ownership of their business.

Many states encourage the timely or early filing of sales and use tax returns with a timely filing discount.

As of April 2019, the DOR offers a discount of 1.75 percent of the tax paid, or per calendar year, whichever is greater.

It's important to know the due dates associated with the filing frequency assigned to your business by the Illinois Department of Revenue. This way you'll be prepared and can plan accordingly. Failure to file by the assigned date can lead to late fines and interest charges.

The DOR requires all sales tax filing to be completed by the 20th of the month following the assigned filing period. Below, we've grouped Illinois sales tax filing due dates by filing frequency for your convenience. Due dates falling on a weekend or holiday are adjusted to the following business day.

Illinois 2019 monthly filing due dates

Illinois 2019 quarterly filing due dates

Illinois 2019 annual filing due dates

Filing an Illinois sales tax return late may result in a late filing penalty as well as interest on any outstanding tax due. For more information, refer to our section on penalties and interest.

In the event an Illinois sales tax filing deadline was missed due to circumstances beyond your control (e.g., weather, accident), the DOR may grant you an extension. However, you may be asked to provide evidence supporting your claim.

Hopefully you don't need to worry about this section because you're filing and remitting Illinois sales tax on time and without incident. However, in the real world, mistakes happen.

If you miss a sales tax filing deadline, follow the saying, “better late than never,” and file your return as soon as possible. Failure to file returns and remit collected tax on time may result in penalties and interest charges, and the longer you wait to file, the greater the penalty and the greater the interest.

If you’re in the process of acquiring a business, it’s strongly recommended that you contact the DOR and inquire about the current status of the potential acquisition. Once you've purchased the business, you’ll be held responsible for all outstanding Illinois sales and use tax liability.

Determining how Illinois sales tax applies to charges for shipping, delivery, freight, handling, and postage is no easy task.

Delivery charges included in the sales price of taxable products are generally taxable if there is no way for the customer to pick up the product. Separately stated delivery charges are generally exempt from sales tax when the seller offers the purchaser free transportation and delivery of the property, qualified transportation and delivery of the property, or the option to pick up the property — as long as the selling price of the tangible personal property isn’t affected by delivery charges.

When the selling price of the taxable tangible personal property increases due to delivery, the transportation and delivery charges are subject to sales tax.

When a shipment contains both exempt and taxable goods, the tax on delivery charges may be calculated for each separately listed item if the invoice itemizes the delivery charge for each item.

However, if an invoice contains a lump sum delivery charge for separately listed items, the lump sum delivery charge will not be taxable if the selling price of the items for which delivery is nontaxable is greater than the selling price of the items for which delivery is taxable.

There are exceptions to almost every rule with sales tax, and the same is true for shipping and handling charges. Specific questions on shipping in Illinois and sales tax should be taken directly to a tax professional familiar with Illinois tax laws.

For additional information, see the DOR’s Transportation and Delivery Charges.