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* From Article IX of the Illinois Constitution…
SECTION 1. STATE REVENUE POWER
The General Assembly has the exclusive power to raise revenue by law except as limited or otherwise provided in this Constitution. The power of taxation shall not be surrendered, suspended, or contracted away. [Emphasis added.]
* So, I’m not yet sure how the governor gets around that language to satisfy the Chicago Sun-Times editorial board…
At a time when almost everything in our daily lives has become unexpectedly complicated, Illinois should not keep its income tax deadline set at April 15 now that the federal government has moved back its deadline by 90 days.
U.S. Treasury Secretary Steven Mnuchin said on Friday that the federal government will move the tax deadline to July 15 because of the COVID-19 pandemic. That puts the ball in Illinois’ court to find a way to do the same.
EditorialsWe urge the state to move quickly to resolve this. It’s clearly doable.
Arizona, Connecticut, New York, Pennsylvania and Wisconsin have already changed their deadlines to conform with the federal date. Even before the federal government acted, Maryland had moved its deadline for some business filings to June 1, and California had bumped its tax day back to June 15.
On Sunday, Pritzker said his administration is “working hard to figure out how” to push back the filing date but also needs to figure out how to deal with the changes in its cash flow. Other states, he pointed out, are in the same fix.
Thoughts?
posted by Rich Miller
Tuesday, Mar 24, 20 @ 10:24 am
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He would only be moving the deadline. In my view that’s not a suspension because we would still be collecting the revenue.
Comment by Demoralized Tuesday, Mar 24, 20 @ 10:29 am
If I recall correctly, there were times where the Illinois due date was based on the IRS due date for the federal income tax. If there was a holiday or fell on a weekend, the feds would extend the date, Illinois automatically followed.
Comment by DuPage Tuesday, Mar 24, 20 @ 10:31 am
Keep the filing date of April 15 but waive all penalties and interest if filed by July 15
Comment by DuPage Saint Tuesday, Mar 24, 20 @ 10:34 am
Doesn’t matter to me one way or the other. I’m planning to file both federal and state taxes April 15th and pay what I still owe to both.
Comment by RNUG Tuesday, Mar 24, 20 @ 10:35 am
There is a lot of law bending and rules waiving going on by a lot of government executives. One can assume, I wouldn’t say safely, that the are a tons of lawyers hunkered over their monitors reviewing the constitution, law, rules and case law, to advise on what can be done. I suspect a lot of fudging is being done. You can get away with fudging if nobody files a lawsuit. Even then, the courts need to be in session to listen to those challenges.
We can only hope the fudging is always in the best interest of the people and not of the privileged.
Comment by Norseman Tuesday, Mar 24, 20 @ 10:35 am
Extend it. Look at it this way: ask for forgiveness rather than permission. Who would file suit to challenge it? If challenged, what court is meeting currently to issue an injunction? And by the time the IL Supreme Court hears the case and issues a ruling, we’re at July 15th anyway.
Problem solved.
Comment by John Lee Pettimore, III Tuesday, Mar 24, 20 @ 10:39 am
=== Look at it this way: ask for forgiveness rather than permission.===
Laws and constitutions don’t work that way.
Comment by Oswego Willy Tuesday, Mar 24, 20 @ 10:41 am
Find a way to get it done.
You have to extend the deadline.
Are we saying that tax accountants are now essential?
Comment by Bad Decision Tuesday, Mar 24, 20 @ 10:42 am
Changing the deadline date of tax payment does not “suspend” the state’s power of taxation — it only changs that date that power will be enforced by deadline. Your reading of this part of the Illinois Constitution is incorrect/uninformed.
Comment by JM Tuesday, Mar 24, 20 @ 10:42 am
===And by the time the IL Supreme Court hears the case and issues a ruling===
That is a very dangerous mindset. Once you start unilaterally suspending the constitution, where’s that gonna end?
Comment by Rich Miller Tuesday, Mar 24, 20 @ 10:42 am
IDOR can waive penalties. The GA has given them this authority in statute. IDOR has done it before for those affected by tornadoes for example.
Comment by My Button is Broke... Tuesday, Mar 24, 20 @ 10:43 am
It’s bit hilarious (and totally hypocritical) that editorial boards are basically calling for Caesar Pritzker, when if he acted that way in the slightest, they’d be frying him until the end of time.
Comment by Precinct Captain Tuesday, Mar 24, 20 @ 10:44 am
The governor has a lot of leeway to issue executive orders directly related to health and public safety under the Emergency Management Agency Act. But he doesn’t have executive authority to rewrite the plain language of existing statutes. If the state income tax filing deadline of April 15th was established by a rule issued by the Illinois Dept of Revenue, he can change it. If it was established by statute, he can’t.
Comment by Roman Tuesday, Mar 24, 20 @ 10:45 am
The delay also causes real cash flow challenges that gets the hand wringer all woozey.
Comment by Annonin' Tuesday, Mar 24, 20 @ 10:49 am
See 35 ILCS 5/505 and 5/601(a) allowing filing and payment extensions, respectively. The taxing power is not being suspended. There is no issue here.
Comment by One Tuesday, Mar 24, 20 @ 10:54 am
Illinois uses Federal AGI as a starting point for calculation, which means that you really can’t do your Illinois return before you do your Federal return.
Comment by Steve Reick Tuesday, Mar 24, 20 @ 10:59 am
=== Look at it this way: ask for forgiveness rather than permission.===
– Laws and constitutions don’t work that way –
The experiences of many in Illinois/Chicago differs remarkably from yours
Comment by JB13 Tuesday, Mar 24, 20 @ 11:01 am
Everyone in Illinois gets an automatic 6 month extension to file if needed. Paying is another matter and the administration has already extended the sales tax payment deadline, maybe they can do the same for income taxes.
Comment by DTAG Tuesday, Mar 24, 20 @ 11:06 am
I believe the Illinois Compiled Statutes gives the power to extend the filing date and change the payment date.
And yes, the Governor’s stay at home order defined tax accountants as essential.
Comment by MDavidCPA Tuesday, Mar 24, 20 @ 11:07 am
Cannot file Illinois without first calculating federal. IDOR needs to do an emergency rule to extend deadline or tell people to request filing extension and make estimated payment based on prior year.
Comment by SAP Tuesday, Mar 24, 20 @ 11:12 am
===Cannot file Illinois without first calculating federal===
So calculate your federal tax. Or just send in what you paid last year with an extension.
Comment by Rich Miller Tuesday, Mar 24, 20 @ 11:13 am
==Or just send in what you paid last year with an extension==
Agreed, just think IDOR and/or Governor need to tell people it is an option. Don’t think there is much awareness out there.
When the feds extended, I think a lot of people put income tax on the back burner without considering state obligations.
Comment by SAP Tuesday, Mar 24, 20 @ 11:20 am
That is a very dangerous mindset. Once you start unilaterally suspending the constitution, where’s that gonna end?
Exactly Rich, it’s perfidy
Comment by Honeybear Tuesday, Mar 24, 20 @ 11:21 am
=== Keep the filing date of April 15 but waive all penalties and interest if filed by July 15 ===
My thought exactly.
=== Are we saying that tax accountants are now essential? ===
Yes — according to the executive order, they [professional services] likely are.
Comment by Just Observing Tuesday, Mar 24, 20 @ 11:21 am
I tend to agree with demoralized, that extending a deadline is not a “suspension”.
I disagree with those who suggest extending the payment date but not the filing date. Our state returns are based on our federal returns, and many people will delay preparing those due to the extended federal deadline.
Comment by JoanP Tuesday, Mar 24, 20 @ 11:29 am
A. I already filed my Federal and State. I originally was going to pay by April 15 to Feds. Now waiting to pay until this is all done. You can still file your returns and not make payments.
B. I like the idea of waiving fees. I wonder if IDOR can unilaterally issue an extension to everyone? Like a no file extension?
C. I think when this is all said and done, a lot of smart people are going to be reopenning various statutes to create better authority to act in the event of an emergency. So for IDOR it would be that the Director could change the date upon a filing of disaster declaration by the governor or the like. That IDPH, ILCC, and IDPFR, will have better authority to close restaurants, bars, and businesses without resorting to the Emergency Powers of the governor.
So many of these laws were written without contemplating an emergency situation with the plan of if it happens we’ll wing it.
Comment by Unionman Tuesday, Mar 24, 20 @ 11:39 am
Illinois filing requires data from a final federal tax return. Many tax preparation software programs won’t generate a file-able IL return without a complete federal return.
Also, I am told the Illinois Department of Revenue software won’t accept e-filing unless you’ve already e-filed your federal return.
I agree the Governor cannot do this unilaterally however inconsistent filing dates will cause chaos for many people and increased tax preparation fees.
Comment by Hamlet's Ghost Tuesday, Mar 24, 20 @ 11:52 am
I don’t think the IL constitution specifies any exact date for filing state taxes.
Comment by DuPage Tuesday, Mar 24, 20 @ 11:53 am
==I am told the Illinois Department of Revenue software won’t accept e-filing unless you’ve already e-filed your federal return.==
You’re wrong. You can file your state taxes without filing your federal taxes. I filed mine on the Dept of Revenue’s website and have yet to file my federal tax return. Already got my state refund.
Comment by Demoralized Tuesday, Mar 24, 20 @ 12:43 pm
Hasn’t the governor already delayed other types of taxes?
Comment by Just a Citizen Tuesday, Mar 24, 20 @ 1:40 pm
Make it the same as the federal time frame.
Comment by pool boy Tuesday, Mar 24, 20 @ 2:02 pm
I’ll leave it to the many people out there smarter than me, but I read subsection (b) of this administrative rule as automatically extending the due date: 86 Adm.Cd.100. 6000
http://www.ilga.gov/commission/jcar/admincode/086/086001000R60000R.html
Comment by SAP Tuesday, Mar 24, 20 @ 2:24 pm
Tax accountants are essential but teachers are not in the State of Illinois currently.
Comment by The Truth Tuesday, Mar 24, 20 @ 2:34 pm
=== Tax accountants are essential but teachers are not in the State of Illinois currently. ===
So you want to bring all the kids back to school now? You’re reading way too much into the word “essential.”
Comment by Just Observing Tuesday, Mar 24, 20 @ 4:03 pm
===but teachers are not===
Teachers are still teaching, dimwit.
Comment by Rich Miller Tuesday, Mar 24, 20 @ 4:04 pm
@SAP Thanks for doing the homework. I think the difference here is filing date vs payment date. The Admin Rule says the payment is automatically extended. Looks like filing date doesn’t change.
Comment by Anon Tuesday, Mar 24, 20 @ 6:52 pm