Illinois provides short-term sales tax relief for certain ‘eating and drinking establishments’ affected by COVID-19

    The Illinois Department of Revenue has announced that it will waive penalty and interest that would have been imposed on late sales tax payments from qualified taxpayers affected by the COVID-19 coronavirus outbreak. Operators of “eating and drinking establishments” that incurred a total sales tax liability of less than $75,000 in calendar year 2019 (on a per ST-1 account basis) are eligible for this relief.

    According to a Department bulletin, “qualified taxpayers will not be charged penalties or interest on late payments for sales tax liabilities reported on Form ST-1, Sales and Use Tax and E911 Surcharge Return, that are due for the February, March, and April 2020 reporting periods.”

    The Department will automatically waive penalties and interest for most qualified taxpayers. Relief will also be considered on a case-by-case basis.

    Significantly, “qualified taxpayers are required to file Form ST-1 for each reporting period by their original due dates, even if they are unable to make a payment,” the bulletin says. In order to qualify for relief, taxpayers must remit one-quarter of their liability for the February, March, and April 2020 reporting periods on each of the following dates:

    - May 20, 2020

    - June 22, 2020

    - July 20, 2020

    - August 20, 2020

    For more information, see the bulletin linked above, visit the Department’s website.

    What does CohnReznick think?

    You should continue to monitor individual states. As the situation resulting from the COVID-19 outbreak continues to evolve, we expect more states to adjust their due dates. The AICPA is maintaining an updated list of states that have provided relief. We recommend checking back frequently.


    Corey Rosenthal, Principal, Practice Leader, State and Local Tax Services 


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      Contact Corey Corey+Rosenthal
      Corey Rosenthal

      JD, Principal, Practice Leader, State and Local Tax (SALT) Services

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    Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice specific to, among other things, your individual facts, circumstances and jurisdiction. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.