Yesterday, Mayor Lightfoot and Governor Pritzker announced measures to support small businesses through the coronavirus outbreak.
Here
is the Mayor's speech from last night.
We've collected the current forms of relief for individuals and small businesses:
SALES TAX DEFERRAL FOR BARS AND RESTAURANTS
Under Governor Pritzker's order, eating and drinking establishments that incurred less than $75,000 in sales tax liabilities last year will not be charged penalties or interest on payments due in March, April or May. The Illinois Department of Revenue (IDOR) has detailed instructions
at
tax.illinois.gov
.
While penalties and interest will be automatically waived, you must still file your business sales tax return even if you are unable to make a payment. Any taxpayers taking advantage of this relief will be required to pay their sales tax liabilities due in March, April and May in four installments starting on May 20 and extending through August 20.
FEDERAL TAX DEFERRALS FOR 2019 INCOME TAXES
AND 2020 1ST QUARTER ESTIMATED TAXES
The U.S. Treasury Department and Internal Revenue Service (IRS)
issued guidance
allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest. The guidance also allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest. This guidance does not change the April 15 filing deadline.
This is a generous benefit, which could generate $300 Billion in "liquidity." In my opinion, however, if we have the ability, we should pay our taxes due on April 15. Taking advantage of this "float" would increase the deficit without benefiting people in need.
Here
is the guidance document.
SMALL BUSINESS RESILIENCY LOAN FUND
Mayor Lightfoot announced the creation of the Chicago Small Business Resiliency Loan Fund. Through public-private partnerships, the new fund will provide more than $100 million in low-interest loans to severely impacted small businesses over the coming months. The new emergency fund will lend up to $50,000 in working capital loans to neighborhood entrepreneurs suffering substantial economic injury to help support rent and payroll expenses.
Business owners and entrepreneurs are encouraged to fill out an
interest form
and a City representative of the fund will reach out on next steps. Read more
here
.
EXTENDED DUE DATES FOR FEES AND TAXES
DEFERRED ENFORCEMENT FOR INDIVIDUALS AND BUSINESSES
The City is
temporarily suspending debt collection, and limiting ticketing and towing practices until April 30, 2020.
The city will also temporarily
defer all business fine collections
and license renewal and late fees for Chicago’s businesses until April 30, 2020
. Here is the list:
- Extended due dates for the following City taxes:
- Bottled Water tax
- Checkout Bag tax
- Amusement tax
- Hotel Accommodation tax
- Restaurant tax
- Parking tax
- No late fees for all license renewals charges until April 30.
- Suspended late fees and defaults on payment plans for all City debt, including parking tickets, red light cameras speed violations, and utility bills.
- No collection efforts until April 30th at the earliest and no referrals to debt collectors.
- Chicago Administrative Courts is continuing all court dates until at least April 30th without any interest penalties
- Extend deadline for ride-share and taxi drivers to pay debt to April 30
- Limited ticketing, towing and impounding of vehicles to public safety-related issues.
- No Booting of cars until after April 30, 2020
- Extended due dates for utility bills until after April 30, 2020
EVICTIONS AND FORECLOSURES TEMPORARILY HALTED
Sheriff Dart has halted all court-ordered evictions until April 15. Details
here
.
Chief Judge Evans has
announced that no
orders for an eviction or foreclosure will be entered before April 15.
EXPANDED UNEMPLOYMENT INSURANCE IF YOU HAVE LOST YOUR JOB DUE TO COVID-19
OR HAD TO STOP WORKING BECAUSE OF CHILDCARE ISSUES
We know individuals are being laid off because COVID-19 has affected their employer, they are ill or in quarantine, or they have had to leave work to care for school-age children.
The State of Illinois has passed emergency rules allowing people to receive unemployment benefits in these situations.
You can learn more details and begin to file a claim for unemployment insurance online
here
.
