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Roman Patzner

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Since our previous blog post, several more states have provided tax relief by extending filing and payment deadlines in response to the COVID-19 (“coronavirus”) outbreak.  However, numerous state tax departments are also canceling in-person customer service, which could make it more difficult for taxpayers to receive timely answers to their filing questions.  We are also seeing the continued impact of COVID-19 on state and local tax litigation as more state courts and administrative tribunals adjourn hearing dates or move to conduct certain proceedings remotely.

Numerous state and local jurisdictions have responded to the COVID-19 (“coronavirus”) outbreak by providing relief to taxpayers, primarily through extended filing and payment deadlines. We expect that many more jurisdictions will issue guidance in the coming weeks, particularly because the federal government recently announced its 90-day income tax payment extension plan.

The World Health Organization has officially declared the coronavirus outbreak to be a pandemic. In addition to the cost on human life, the rapid spread of COVID-19 has left a trail of economic damage affecting business revenues. COVID-19 has caused complete or partial shutdown of factories, supply chain disruptions, and labor shortages, and has impacted demand in certain industries. This impact will also be felt by U.S. state, and local governments.

The Illinois legislature recently passed several tax related bills along with a budget. The tax changes are primarily reflected in Senate Bills 689 and 690. Governor Pritzker signed S.B. 689 on June 5, 2019 and is expected to sign S.B. 690 shortly. The following is a summary of some of the more significant tax changes applicable to businesses.