Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart Q - COMBINED RETURNS › Section 100.5230 - Combined Estimated Tax Payments

Current through Register Vol. 48, No. 28, July 12, 2024
a) In general. If a combined return is filed
				for two consecutive taxable years, payments of estimated tax must be made on a
				combined basis for each subsequent taxable year, until such time as separate
				returns are properly filed. For the taxable years in which combined estimated
				payments are required, the combined group shall be treated as one taxpayer for
				purposes of IITA Section 803 (relating to payment of estimated tax). If
				separate returns are properly filed in a year after a combined return year, the
				amount of any estimated tax payments made on a combined basis for such year
				shall be credited against the separate tax liabilities of the former members of
				the combined group in the manner allocated by the designated agent which is
				satisfactory to the Department. The manner of allocation will be satisfactory
				to the Department if it does not jeopardize the collection of any liability and
				does not conflict with any allocation made under Section
				100.5250(d)(2)
				 of this Part.
b) First two combined return years. For the
				first two years for which a combined return is filed, payments of estimated tax
				may be made on either a combined or separate basis. The amount of any separate
				estimated tax payments made for such year shall be credited against the
				combined tax liability. The designated agent shall give notice, in the manner
				and form prescribed by the Department in the instructions to Illinois Schedule
				UB, of any estimated payments made on a separate basis for any such
				year.
c) Penalty for underpayment
				of estimated tax
1) In general. If a combined
				return is filed, the amount of any penalty for underpayment of estimated tax
				shall be computed as if the combined group were one taxpayer.
2) Penalty in the first combined return year.
				In the first combined return year, the determination of any penalty due under
				IITA Section 804 (including, for taxable years ending prior to December 31,
				1990 the application of the exceptions under former IITA Section 804(d)(1) and
				(2) shall be made using the aggregate of the tax and income shown on the
				returns filed by members of the combined group for the previous year.
3) Combined payments made but separate
				returns filed for a tax year following a combined return year. If a combined
				group makes payments of estimated tax on a combined basis for all or any part
				of a taxable year, and its members properly file separate returns for the
				taxable year, the payments made shall be allocated in the manner provided by
				subsection (a). The determination of any penalty due from any of the members of
				the combined group making the estimated payments, as imposed under IITA Section
				804 (including, for taxable years ending prior to December 31, 1990, the
				application of the exceptions under prior IITA Section 804(d)(1) and (2), shall
				be made using each former member's separate company items from the combined
				return filed for the previous year and such member's allocated share of the
				combined estimated payments for the current year. The allocated shares shall be
				reported to the Department by the designated agent in the manner prescribed in
				the instructions to Schedule UB.
4)
				Combined payments made but separate returns filed for a tax year not following
				a combined return year. If combined estimated payments are made for a tax year
				but no combined return is filed for that year and no combined return was filed
				in the previous year, the estimated tax shall be a credit only for the
				corporation that made the payment.