Department of Revenue Moves to Assist Distillers Making Hand Sanitizer

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With many Illinois-based distillers shifting operations to produce needed hand sanitizer during the COVID-19 outbreak, the Illinois Department of Revenue (IDOR) is ensuring any alcohol purchases made for production be tax-exempt.

Normally, distillers incur a tax liability based on the amount and strength of alcohol used in distillation. Last night, IDOR sent distillers guidance on how to claim a tax deduction on their alcohol purchases to remove any tax liability. 
 
“During this time of crisis, it is great to see Illinois taxpayers stepping up to help in so many ways,” said Illinois Department of Revenue Director David Harris.  “The Department of Revenue is pleased to help these distillers who have answered a call to service by volunteering to produce hand sanitizer, a product so urgently needed.  The Department will continue to take steps to help taxpayers have the financial flexibility to address needs due to this COVID-19 outbreak.”
 
Since the Governors’ Disaster Proclamation, IDOR has granted temporary sales tax relief to small and medium-sized restaurants and bars, extended the income tax deadline to July 15th, extended renewal deadlines for sales tax exemption holders, and offered taxpayers who owe estimated taxes an alternative way to calculate their liability.

Although the tax deadline was extended, IDOR is still processing and issuing tax refunds in a timely manner to those expecting them.

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