As a reminder, Illinois requires estimated tax payments for entities (S Corps and Partnerships) that are electing the pass through entity (PTE) for 2022 and expect to have taxable income.
In the past, estimates were not required for these entity types, but with the changes in the IL tax law, which were effective last year, things have changed.
2022 Estimated tax payment schedules and amounts were set up for our clients, when applicable, when we filed your 2021 returns.
When a partnership or S corporation makes the election to pay the PTE tax, it is required to make quarterly estimated payments if the expected tax due (including both PTE tax and replacement tax) is more than $500; otherwise, they will incur late estimated payment penalties.
For tax years ending on and after December 31, 2022,
If the election to pay PTE tax is not intended to be made, then estimated payments are not required.
Reminder: You must make electronic payments if your annual tax liability, including PTE tax, meets or exceeds $20,000, through MyTaxIllinois.
If you have any questions or need assistance with these new rules, please reach out to your Porte Brown team member for assistance at 847-956-1040.
Get in touch today and find out how we can help you meet your objectives.