IDOR Announces Changes to the 2016 Illinois Business Income Tax Filing Due Dates

Regulatory Update

December 2016

The Illinois Department of Revenue (IDOR) recently announced changes to state tax return due dates for C corporations for the 2016 filing season. See IDOR Guidance.

• Calendar Year C corporations will receive an extra month to file their returns and pay any taxes owed. The original filing and payment due date will change from March 15, 2017 to Tuesday, April 18, 2017.
• Fiscal year C corporations, whose tax year ends on a date other than June 30, will also receive an extra month to file returns and mpaymentake tax s. Their original filing and payment due date will be changed to the 15th day of the 4th month following the close of the tax year.
• There are no changes to original filing dates for S corporations, partnerships, trust/estates, or exempt organizations in Illinois.

Background – Federal Return Due Date Changes
The IDOR administrative adjustment to the C corp filing dates is in response to federal filing due date changes that were passed by Congress in 2015. These new changes will apply to 2016 tax returns prepared during the 2017 filing season.
Previously, calendar-year C and S corps were required to file by March 15, while individuals, trusts, and partnerships had to be filed by April 15. With the rise of more limited liability companies (LLC) and limited liability partnerships (LLP), there are now many more tax filings of partnership and S corp returns. There is also a large increase in the number of investors, both individuals and businesses, in pass-through entities that need information from the corporations, companies and partnerships mentioned above – before determining their own taxable income.
The new federal due dates make the partnership and S corp returns due first (3/15) and then individual and C corp returns due a month later (4/18). The extended due dates are modified in a similar manner so that the same logical flow is maintained. To maintain this logical order, states are beginning to align their filing deadlines to the new federal dates.

Working with IDOR & the General Assembly
ICPAS’ State and Local Tax Committee and the Government Relations Office has been working with IDOR on this issue. IDOR has administratively adjusted filing due dates for the 2016 filing season, however, legislation is needed for a long-term remedy.
We will continue to work with the IDOR on legislative language that recognizes the new federal due dates and maintains the logical and efficient flow of information for state returns.
TAX PRACTICIONERS’ WARNING - Public Act 99-0641 requires paid state tax preparers to include their federal Preparer Tax Identification Number on state returns beginning January 1, 2017. For further information, see ICPAS Government Relations August 3, 2016 State Legislative Update entitled State Tax Preparer Oversight Act.