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June 26, 2020
State and Local Tax
This Week
Illinois General Assembly
T
he General Assembly
is adjourned until the fall veto session.
Cook County
The County has announced that County offices will remain closed to the public until July 6.
Illinois Department of Commerce and Economic Opportunity
DCEO announced the launch of the first round of
Business Interruption Grants Program. In this first round, DCEO advises that priority will be given to small businesses that have been heavily restricted or completely shut down during the pandemic. Additional priority will be given to businesses located in disproportionately impacted areas (DIAs), or low-income areas that have had high rates of COVID-19 cases. Businesses eligible for the program must have experienced extreme hardship, demonstrated by experiencing eligible costs or losses in excess of the grant amount since March.
DCEO states $20 million will be reserved for businesses located in DIA's where there was recent property damage from civil unrest providing grants of $1,000 of $20,000 each. $20 million for bars and restaurants unable to offer outside service, providing grants of $1,000 of up to $20,000. $10 million for barbershops and salons, providing $1,000 grants of $10,00 each. $10 million for gyms and fitness centers that have lost significant revenue due to COVID-19, providing 500 grants of $20,000 each.
The DCEO announcement provides that in order to qualify under the program, businesses must have been in operation for at least three months prior to March 2020 and must meet specific annual revenue criteria.
DCEO will begin accepting applications today, June 26.
Internal Revenue Service
The IRS issued Notice 2020-51 "Guidance on Waiver of 2020 Required Minimum Distributions" and Notice 2020-50 "Guidance for Coronavirus-Related Distributions and Loans from Retirement Plans Under the CARES Act."
Rulemaking
The June 26 edition of the Illinois Register did not contain any proposed or adopted rulemakings of the the Illinois Department of Commerce and Economic Opportunity.
The June 26th edition of the Illinois Register contains one proposed rulemaking by the Illinois Department of Revenue and two adopted rulemakings.
IDOR has proposed new Part 720 which contains rules on the State Tax Lien Registry. The State Tax Lien Registration Act is found at 35 ILCS 750. New Section 720.100 contains definitions which a quotes of statutory definitions. Section 720.110 explains that information in the state tax lien registry is available for purchase by subscription. Section 720.120 explains that a fee is imposed for the purchase of registration. The fee is to be determined by the Department based on its cost to produce and maintain the registry. The fee will be posted on the Department's website.
IDOR has adopted a rulemaking amending the Illinois Income Tax Act rules. The following summary was provided by the Department:
"This rulemaking amends Sections 100.2197, 100.2590, 100.3100, 100.3120 and 100.7010 of the Illinois Income Tax regulations to reflect amendments to the "duty days" provisions in the IITA for allocating compensation of professional athletes enacted in PA 94-247 and to reflect the "working days" provisions for allocating compensation of employees generally enacted in PA 101-585. It also updates references to federal laws and eliminates duplicative provisions in the regulations. This rulemaking also amends Section 100.2430 of the Illinois Income Tax regulations to reflect the repeal by PA 100-22 of the prohibition on persons who are required to use different apportionment methods from being members of the same unitary business group. After the December 31, 2017, effective date of this repeal, the provisions in the IITA dealing with payments of interest and intangible expenses between taxpayers who would be members of the same unitary business group if not for this prohibition will no longer apply. This rulemaking also amends Section 100.2430 to take into account the limitations on the deduction of business interest expense under Internal Revenue Code Section 163(j) in taxable years beginning after December 31, 2017."
IDOR also adopted a rulemaking amending the Retailers' Occupation Tax rules. The Department described the adopted rulemaking as follows:
"PA 101-593 amends Section 2-10 of the Retailers' Occupation Tax Act. The amendments to Section 2-10 clarify that that food consisting of or infused with adult use cannabis is taxed at the general merchandise rate of 6.25%, not the 1% rate imposed on food for human consumption that is to be consumed off the premises where it is sold. "Adult use cannabis" is defined as cannabis subject to tax under the Cannabis Cultivation Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and does not include cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act."
Court cases
Davis v. Village of Maywood - This isn't a tax case, but it may be of interest to attorneys who practice in Cook County. This case deals with the electronic case filing system in Cook County and is an appellate court reversal of a trial court dismissal of a case dismissed as untimely because of a glitch in the electronic filing of a case..
Tax Tribunal
No new decisions were issued by the Tribunal this week.
None of the new cases filed this week raise unique issues.
Publications
The Illinois Auditor General released the results of a
compliance examination of the Office of the Treasurer nonfiscal officer responsibilities. The Auditor General found that the Office of the Treasurer did not maintain adequate controls over external service providers.
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