- On April 13, 2020
The COVID-19 pandemic has forced federal and Illinois governments to extend both income tax filing and payment deadlines. The changes are as follows:
Individual Federal Income Tax Filings and Estimated Payments
- Form 1040 and any related payments are now due July 15, 2020.
- First and second quarter estimated tax payments are now due on July 15, 2020. The IRS just extended the second quarter payment date as of April 9, 2020.
Individual Illinois Income Tax Filings and Estimated Payments
- Form IL-1040 and any related payments are now due July 15, 2020.
- There is no extension on 2020 Illinois estimated tax payment dates. First and second quarter Illinois estimated tax payments are still due on April 15, 2020 and June 15, 2020, respectively.
- For 2020, estimated income tax payments can be based upon either:
- 100% of the estimated liability for the year 2020
- 100% of the actual liability for the year 2019
- 100% of the actual liability for the year 2018
Further, anyone involved in a like-kind exchange transaction is receiving an extension on the 45-day identification deadline and the 180-day closing requirement.
- Taxpayers whose 45th day identification period or 180th day exchange period fall between April 1, 2020 and July 14, 2020 are granted an extended deadline to July 15, 2020.
- Likewise, taxpayers engaged in reverse exchanges whose 45th day to identify relinquished property or 180th day to un-park replacement property fall between April 1, 2020 and July 14, 2020 are granted an extension to July 15, 2020.
- In either a 1031 or reverse 1031, at this time it is prudent to treat the 180-day closing date as not changing if it currently falls beyond July 15, 2020.
- At the current time, the IRS is looking into the potential for additional time to extend the 180-day closing requirement if the 45-day identification period is extended to July 15, 2020.
If you have any tax questions, please contact Vasili Russis, chair of Kelleher & Buckley, LLC’s Tax and Wealth Structuring Group at 847-382-9130 or via email at firstname.lastname@example.org.