Illinois extends calendar-year corporate taxpayer 2021 return due date until November 15

In brief

The Illinois Department of Revenue on October 11 released Bulletin FY 2023-02, Corporate Return Automatic Extension Due Date Change for the Tax Year Ending on December 31, 2021.

The Bulletin provides that the extended due date for calendar-year 2021 Form IL-1120 returns is November 15, 2022.

Observation: Although the Bulletin addresses calendar-year corporate taxpayers, a proposed regulation would apply the additional month extension to all tax years ending on or after December 31, 2021.

Reason for the extension

The Bulletin states that Illinois historically has allowed an automatic six-month extension for Illinois income tax returns due on the 15th day of the fourth month after the end of the taxable year and seven months for all other taxpayers to file any Illinois income tax return, except returns due under Article 7 (withholding tax) of the Illinois Income Tax Act.

This allowed corporate income taxpayers one month beyond the federal automatic extension to file Illinois returns. However, a change in 2016 to the federal due date for non-June 30 fiscal-year filers resulted in the federal and state automatic extensions coinciding. A proposed amendment to 86 Ill. Admin. Code 100.5020 will restore the extra month to file state corporate income tax returns. This amendment will be retroactive to returns for tax years ending December 31, 2021, moving the extended due date from October 17, 2022, to November 15, 2022.

Extension of time to file, not to pay

The Bulletin reminds taxpayers that an extension of time to file is not an extension of time to pay. Failure to pay any tax liability due on or before the original due date of the return may result in penalty and interest.