How did a corporation's federal filing extension affect its Illinois income-tax return deadline?

Plain-English summary

A qualifying federal extension automatically carried over to the Illinois corporate return and added one month. The ordinary Illinois corporate deadline was the fifteenth day of the third month after year-end or the later federal due date. Illinois regulations generally provided corporations a seven-month automatic filing extension.

When the IRS granted a longer extension, Illinois extended the corporate deadline one month beyond the federal deadline. In the example, a December 15 federal deadline produced a January 15 Illinois filing deadline, with the federal extension attached to the Illinois return.

The filing extension did not postpone tax payment. Tentative tax remained due by the unextended deadline, and Form IL-505-B was needed only when transmitting that payment.

What this means for you

Track filing and payment separately. Preserve the approved federal extension, attach it to the Illinois return, and pay any tentative Illinois balance by the original deadline.

Common questions

Q: Was a separate Illinois extension request required?
A: No, on the stated facts.

Q: Did the extended filing date also extend payment?
A: No.

Citations and references

• 35 ILCS 5/505(b), 601(a), 602
• 86 Ill. Adm. Code 100.5020(b), (c)

Subject

Returns – Due Dates

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/income-tax/2012.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/income-tax/2012/it-12-0027.pdf

Original ruling text

IT 12-0027-GIL 09/24/2012 RETURNS – DUE DATES
General Information Letter: The due date of a corporation’s Illinois income tax return is
the fifteenth day of the third month after the end of its taxable year or the due date of its
federal return, whichever is later. Illinois grants all corporations a seven-month
extension of time to file their Illinois income tax returns.
September 24, 2012
Dear:
Your letter, dated August 14, 2012, requesting an extension of time to file a combined calendar 2011
Illinois income tax return on behalf of COMPANY and its affiliates has been forwarded to me for
consideration. In your letter, you explain that the extended due date for filing the taxpayer’s 2011
federal tax return is December 15, 2011. You had attached to your letter a Form IL-505-B, Automatic
Extension Payment for 2011 for the taxpayer, showing no tax due.
Section 505(b)(1) of the Illinois Income Tax Act (35 ILCS 5/505) provides:
corporate returns shall be filed on or before the 15th day of the third month following the
close of the taxable year, unless, subject to the provisions of Section 602, the Director
grants an extension or extensions of time (not to exceed 6 months in the aggregate) for
such filing, or unless the income or loss of a taxpayer is reported for federal purposes
on a return with a due date later than the 15th day of the third month following the close
of the taxable year, in which case the same due date shall apply to the corresponding
Illinois return.
Accordingly, a foreign corporation whose federal tax return for a calendar year is June 15 of the
following year under IRC Section 6072(c) would have an Illinois income tax return due date of June
15 as well.
Section 505(b) of the Illinois Income Tax Act provides that:
When the taxpayer has been granted an extension or extensions of time within which to
file his federal income tax return for any taxable year, the filing of a copy of such
extension or extensions with the Department shall automatically extend the due date of
the return with respect to the tax imposed by this Act for an equivalent period (plus an
additional month beyond the federal extension in the case of corporations) if the
requirements of Section 602 are met.
Section 601(a) of the Illinois Income Tax Act (35 ILCS 5/601) provides that the due date for payment
of a corporation’s Illinois income tax obligation is the due date (without regard to extensions) for filing
its return.
86 Ill. Adm. Code Section 100.5020(b) provides:
The Department will grant an automatic extension of 6 months (7 months for
corporations) to file any Illinois income tax return except returns due under Article 7 of
the IITA. No application form need be filed by a taxpayer to obtain this extension. If a
balance of tentative tax is due, the taxpayer should transmit the payment with the
appropriate form by the original filing due date in order to avoid the penalty for
underpayment of tax (IITA Section 1005) and statutory interest (IITA Section 1003).

IT 12-0027-GIL
September 24, 2012
Page 2

86 Ill. Adm. Code Section 100.5020(c) provides:
The Department will approve an extension of more than 6 months (7 months for
corporations) if an extension of more than 6 months is granted by the Internal Revenue
Service. For corporations the additional Illinois extension will be one month beyond any
approved federal extension of longer than 6 months. For all other taxpayers, the
additional extension will be for the length of time approved by the Internal Revenue
Service. All taxpayers must attach a copy of the approved federal extension to their
return when it is filed.
Pursuant to these authorities, if the extended due date of the taxpayer’s federal income tax return is
December 15, the due date of the taxpayer’s Illinois income tax return is automatically extended until
January 15 of the following year. No request of extension is required to be filed. The taxpayer is only
required to file a Form IL-505-B if necessary to pay its liability by the unextended due date of the
return, and to attach a copy of the federal extension to its Illinois return in order to document its
entitlement to the additional Illinois extension.
If you have any additional questions, or if I can be of any other help to you, please do not hesitate to
contact me.

Sincerely,

Paul S. Caselton
Deputy General Counsel – Income Tax