Illinois Issued Sales Tax Relief

March 30, 2020   //   COVID-19 Tax   //   By PKF Mueller Solutions

Dear valued client,

The state of Illinois has issued Sales Tax relief for “All Registered Illinois Retailers Operating Eating and Drinking Establishments”. Below is a summary of the sales tax relief.

Qualification: eating and drinking establishments with the total sales tax liability did not exceed $75,000 in the 2019 calendar year.

Benefits: relief from penalties and interest on late sales tax liabilities reported on Form ST-1, Sales and use Tax return and Form E911 Surcharge Returns.

Reporting Periods: effective for reporting periods of February, March and April 2020.

Filing Deadlines: each form must be filed by its original due dates, even if you cannot make payment.

How to Apply: the relief should be automatic for most taxpayers. However, if a taxpayer receives a notice, they should respond to the notice requesting relief due to COVID-19. The state will review each response and grant relief, if appropriate.

Payments Schedule: taxpayers must pay their liabilities due March, April, and May 2020 on four dates starting on May 20, 2020. The required payment schedule for liabilities reported on Form ST-1 is as follows:

• One quarter (1/4) of the liability for the February, March, and April 2020 reporting periods is due May 20, 2020.
• One quarter (1/4) of the liability for the February, March, and April 2020 reporting periods is due June 22, 2020.
• One quarter (1/4) of the liability for the February, March, and April 2020 reporting periods is due July 20, 2020.
• One quarter (1/4) of the liability for the February, March, and April 2020 reporting periods is due August 20, 2020.

Example: