reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart H - BASE INCOME OF TRUSTS AND ESTATES › Section 100.2775 - Subtraction for Refunds of Taxes Paid to Other States for Which a Credit Was Claimed (IITA Section 203(c)(2)(X))

Current through Register Vol. 48, No. 28, July 12, 2024
a) In computing its base income, an estate is
				allowed to subtract from its federal taxable income
an amount equal to
				the refund included in that total of any tax deducted for federal income tax
				purposes, to the extent that deduction was added back under
IITA
				Section 203(c)(2)(F). (IITA Section 203(c)(2)(X))
b) Under IRC section 111, a taxpayer who is
				allowed a deduction in computing federal taxable income in one taxable year,
				and recovers the deductible expenditure in a subsequent taxable year, includes
				the recovery in gross income in the year of recovery. For example, a trust or
				estate that claims a deduction for State income taxes paid in 2015 on its 2015
				federal income tax return, and in 2016 receives a refund of some of that tax,
				includes the refund in gross income for 2016. This procedure prevents the
				taxpayer from receiving a tax benefit for an expenditure that ultimately did
				not cost the taxpayer, without requiring the filing of an amended return to
				remove the deduction from the computation of taxable income in the year the
				deduction was taken.
c) If a trust
				or estate claims a credit for taxes paid to other states under IITA Section
				601(b)(3), the taxpayer adds back to its federal taxable income any deduction
				taken for payment of a state tax for which the credit is claimed. (See IITA
				Section 203(c)(2)(F).) If a trust or estate has added back the federal income
				tax deduction for a state tax, a refund of that tax does not need to be
				included in the taxpayer's base income to prevent receiving a tax benefit for
				the item. IITA Section 203(c)(2)(X) therefore allows the taxpayer to subtract
				refunds of these taxes that are included in the taxpayer's federal taxable
				income.
d) IITA Section
				203(c)(2)(X) provides that it is exempt from the automatic sunset provisions of
				IITA Section 250.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart J - GENERAL RULES OF ALLOCATION AND APPORTIONMENT OF BASE INCOME › Section 100.3000 - Terms Used In Article 3 (IITA Section 301)

Current through Register Vol. 48, No. 28, July 12, 2024
Article 3 of the Illinois Income Tax Act sets forth the rules
				  for determining that portion of a person's base income which is allocable to
				  Illinois in the computation of net income under IITA Section 202. In the case
				  of a person who is a resident, all items of income or deduction which are taken
				  into account in the computation of base income for the taxable year are
				  allocated to Illinois under IITA Section 301(a) and enter into the computation
				  of such person's net income under IITA Section 202. In the case of persons who
				  are not residents of Illinois, specific allocation and apportionment rules are
				  provided in Article 3 and the regulations thereunder. Certain terms appearing
				  throughout the Article to which such rules relate are defined in 86 Ill. Adm.
				  Code
				  100.3010
				  through
				  100.3210.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart J - GENERAL RULES OF ALLOCATION AND APPORTIONMENT OF BASE INCOME › Section 100.3015 - Business Income Election (IITA Section 1501)

Current through Register Vol. 48, No. 28, July 12, 2024
a) For each taxable year beginning on or
				after January 1, 2003, a taxpayer may elect to treat all income other than
				compensation as business income. This election shall be made in accordance with
				rules adopted by the Department and, once made, shall be irrevocable. (IITA
				Section 1501(a)(1))
b) The election
				under this Section shall be made on the original return filed by the person
				making the election for the taxable year to which the election applies or on a
				corrected return filed prior to the due date (including extensions) for the
				return pursuant to Section
				100.9400(f)(3)
				 of this Part. An election made on an
				original return may also be revoked on a timely-filed corrected return. After
				the extended due date for filing the return has passed, the election may still
				be made on an original return, but an election that has been made on the
				original or corrected return may no longer be revoked.
c) In the case of a partnership, estate,
				trust or Subchapter S corporation, for purposes of IITA Section 305, 307 or
				308, respectively, an election made by the pass-through entity to treat all of
				its income as business income shall be binding on its partners, beneficiaries
				and shareholders. An election by a partner, beneficiary or shareholder to treat
				all income as business income shall cause all nonbusiness income received by
				that partner, beneficiary or shareholder from the pass-through entity to be
				treated as business income received directly by the partner, beneficiary or
				shareholder.
d) In the case of a
				combined group of corporations filing a combined return under Subpart P of this
				Part, the election shall be made each year by the designated agent of the group
				and shall apply to all income of the unitary business group required to be
				shown on the combined return, including income of members who do not join in
				the filing of the combined return.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart J - GENERAL RULES OF ALLOCATION AND APPORTIONMENT OF BASE INCOME › Section 100.3020 - Resident (IITA Section 301)

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				General definition. The term "resident" is defined in IITA Section 1501(a)(20)
				to mean:
1) an individual who is in Illinois
				for other than a temporary or transitory purpose during the taxable year or who
				is domiciled in Illinois but is absent from Illinois for a temporary or
				transitory purpose during the taxable year;
2) the estate of a decedent who, at his or
				her death, was domiciled in Illinois;
3) a trust created by the will of a decedent
				who, at his or her death, was domiciled in Illinois; and
4) an irrevocable trust, the grantor of which
				was domiciled in Illinois at the time the trust became irrevocable. For the
				purpose of this subsection (a)(4), a trust is considered irrevocable to the
				extent that the grantor is not treated as the owner of the trust under
				26
				USC 671 through
				678.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart K - COMPENSATION › Section 100.3100 - Compensation (IITA Section 302)

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				General Definition
Compensation is defined in IITA Section 1502(a)(3) to mean
				  wages, salaries, commissions and any other form of remuneration paid to
				  employees for personal services. The term is thus comparable to the term
				  "wages" as used in IRC Section 3401(a), except that the exceptions set forth in
				  the Code section are inapplicable for purposes of Article 3 of the Act. (See
				  Section
				  100.7000
				  for definition of compensation subject to withholding.)
b) Employee
Compensation is defined as remuneration for personal services
				  performed by an "employee". If the employer-employee relationship does not
				  exist, remuneration for services performed does not constitute "compensation."
				  The term "employee" includes every individual performing services if the
				  relationship between him or her and the person for whom he or she performs the
				  services is the legal relationship of employer and employee. The term has the
				  same meaning under the Illinois Income Tax Act as under IRC Section 3401(c) and
				  26 CFR 31.3401(c) -l.
c)
				Types of Compensation
The name by which remuneration for services is designated is
				  immaterial. Thus, salaries, fees, bonuses, commissions on sales or on insurance
				  premiums, and pensions and retired pay are compensation within the meaning of
				  the statute if paid for services performed by an employee for his or her
				  employer.
d) Past Services
Remuneration for personal services constitutes compensation
				  even though at the time paid the relationship of employer and employee no
				  longer exists between the person in whose employ the services were performed
				  and the individual who performed them, so long as the relationship existed when
				  the services were rendered.
e) Examples
The standards set forth in this Section may be illustrated,
				  in part, by the following examples:
1)
				EXAMPLE 1: A is a salesman for B corporation. B conducts a selling contest
				among its salesmen, first prize being a two-week vacation in Las Vegas. A is
				the winner of the contest and is awarded the vacation. The fair market value of
				the trip constitutes compensation.
2) EXAMPLE 2: C is employed by D corporation
				during the month of January 1970 and is entitled to receive remuneration of
				$100 for services performed for D during the month. C leaves the employ of D at
				the close of business on January 31, 1970. On February 15, 1970 (when C is no
				longer an employee of D), D pays C the remuneration of $100 for services
				performed in January. The $100 is compensation.
3) EXAMPLE 3: The facts are the same as in
				Example 2, except that C is discharged by D at the end of January. In addition
				to the $100 earned by C for services performed in January, D pays C $50
				severance pay. The $50 constitutes compensation.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart K - COMPENSATION › Section 100.3110 - State (IITA Section 302)

Current through Register Vol. 48, No. 28, July 12, 2024
The term "state" when applied to a jurisdiction other than
				  Illinois is defined in IITA Section 1501(a)(22) to mean any state of the United
				  States, the District of Columbia, the Commonwealth of Puerto Rico, any
				  Territory or Possession of the United States, and any foreign country, or any
				  political subdivision of any of the foregoing.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart L - NON-BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3200 - Taxability in Other State (IITA Section 303)

Current through Register Vol. 48, No. 28, July 12, 2024
a) General definition
1) For purposes of allocation of nonbusiness
				income and for purposes of the sales factor used in apportioning business
				income, a taxpayer is taxable in another state if:
A)
in that state he or she is subject
				to a net income tax, a franchise tax measured by net income, a franchise tax
				for the privilege of doing business, or a corporate stock tax
[35 ILCS
				5/303(f)(1) ]; or
B)
that state has jurisdiction to
				subject the taxpayer to a net income tax regardless of whether, in fact, the
				state does or does not subject the taxpayer to such a tax
[35 ILCS
				5/303(f)(2) ].
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart L - NON-BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3210 - Commercial Domicile (IITA Section 303)

Current through Register Vol. 48, No. 28, July 12, 2024
a) General definition. The term "commercial
				domicile" is defined in IITA Section 1501(a)(2) to mean the principal place
				from which the trade or business of the taxpayer is directed or managed. In
				general, this is the place at which the offices of the principal executives are
				located. Where executive authority is scattered, the place of daily operational
				decision making controls. Such determinations must be made on the basis of all
				the facts and circumstances.
b)
				Example. Section
				100.3210
				of this Part may be illustrated by the following example: Company A has a board
				of directors which meets quarterly, each meeting being held at a different
				plant in a different state. A's chairman is designated as its chief executive
				officer and all top policy decisions are made by him. A's president makes the
				day-to-day decisions involved in management and it is to him that the
				manufacturing and sales vice presidents report. He reports to the chairman. A's
				treasurer is the company's top financial officer, reporting directly to the
				chairman, and being reported to by financial vice presidents and the
				controller. A's chairman operates largely out of his home in Wisconsin,
				communicating with other executives by telephone and periodic visits to their
				offices. A's president has his office at the company office in Chicago. The
				manufacturing and sales vice presidents also have offices at the company office
				in Illinois, as do the sales manager and the controller. A's treasurer and
				financial vice-president have their offices at the company office in New York
				City. The company's attorneys and accountants are located in Chicago; its
				investment banker in New York City. On the basis of the foregoing facts, A's
				commercial domicile would be Illinois, because daily operational decision
				making occurs principally within Illinois.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart L - NON-BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3220 - Allocation of Certain Items of Nonbusiness Income by Persons Other Than Residents (IITA Section 303)

Current through Register Vol. 48, No. 28, July 12, 2024
a) In
				General. IITA Section 303 provides rules for the allocation by any person other
				than a resident of Illinois of any item of capital gain or loss, and any item
				of income from rents or royalties from real or tangible personal property,
				interest, dividends, and patent or copyright royalties, together with any item
				of deduction directly allocable thereto, to the extent the item constitutes
				nonbusiness income. For the tests as to whether any item constitutes business
				or nonbusiness income, see Section
				100.3010.
b)
Capital Gains and Losses
1)
Real Property. Capital gains and
				losses from sales or exchanges of real property are allocated to Illinois if
				the property is located in Illinois.
(IITA Section 303(b)(1)) Economic
				interests in minerals in place, such as oil or gas, are real property under
				IITA Section 303. Examples of these interests are royalties, overriding
				royalties, participating interests, production payments and working
				interests.
2)
Tangible
				Personal Property. Capital gains and losses from sales or exchanges of tangible
				personal property are allocated to Illinois, if at the time of the sale or
				exchange:
A)
the property has
				its situs in Illinois; or
B)
the taxpayer has its commercial
				domicile in Illinois and is not taxable in the state in which the property has
				its situs.
(IITA Section 303(b)(2)) For the tests of taxability in
				another state and commercial domicile, see Sections
				100.3200 and
				100.3210.
3)
Intangible Personal Property.
				Capital gains and losses from sales or exchanges of intangible personal
				property are allocated to Illinois if the taxpayer has its commercial domicile
				in Illinois at the time of the sale or exchange.
(IITA Section
				303(b)(3)) For the tests of commercial domicile, see Section
				100.3210.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart M - BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3310 - Business Income of Persons Other Than Residents (IITA Section 304) - In General

Current through Register Vol. 48, No. 28, July 12, 2024
The business income of a person other than a resident is
				  allocated to Illinois if such person's business income is derived solely from
				  Illinois. Note that any reference to person in this section shall refer to a
				  person other than a resident. Every person who derives business income from
				  Illinois and one or more other states must apportion such business income
				  between Illinois and such other state or states in accordance with the
				  provisions of IITA Section 304. Special apportionment rules are provided for
				  the business income of insurance companies, financial organizations, and
				  persons furnishing transportation services, and for alternative methods of
				  apportionment (and allocation) where the specific statutory provisions do not
				  fairly represent the extent of a person's business activity in Illinois. See
				  IITA Section 304(b),(c),(d) and (e) of the Act.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart M - BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3330 - Business Income of Persons Other Than Residents (IITA Section 304 - Allocation)

Current through Register Vol. 48, No. 28, July 12, 2024
Any person subject to the taxing jurisdiction of this state
				  shall allocate all of its nonbusiness income within or without this state in
				  accordance with IITA Section 303 and 86 Ill. Adm. Code
				  100.3300.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart M - BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3340 - Business Income of Persons Other Than Residents (IITA Section 304)

Current through Register Vol. 48, No. 28, July 12, 2024
In filing returns with this state, if any person departs from
				  or modifies the manner in which income has been classified as business income
				  or nonbusiness income in returns for prior years, such person shall disclose in
				  the return for the current year the nature and extent of the modification. If
				  the returns or reports filed by a person for all states to which such person
				  reports under Article IV of the Multistate Tax Compact or the Uniform Division
				  of Income for Tax Purposes Act are not uniform in the classification of income
				  as business or nonbusiness income, the person shall disclose in its return to
				  this state the nature and extent of the variance.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart M - BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3360 - Payroll Factor (IITA Section 304)

Current through Register Vol. 48, No. 28, July 12, 2024
a) In general
1) The payroll factor of the apportionment
				formula for each trade or business of an employer shall include the total
				amount paid by the employer in the regular course of its trade or business for
				compensation during the tax period.
2) The total amount "paid" to employees is
				determined upon the basis of the employer's accounting method. If the employer
				has adopted the accrual method of accounting, all compensation properly accrued
				shall be deemed to have been paid. The compensation of any employee on account
				of activities which are connected with the production of nonbusiness income
				shall be excluded from the factor.
A) Example
				A: A corporation uses some of its employees in the construction of a storage
				building which, upon completion, is used in the regular course of the
				corporation's trade or business. The wages paid to those employees are treated
				as a capital expenditure by the corporation. The amount of such wages is
				included in the payroll factor.
B)
				Example B: A corporation owns various securities which it holds as an
				investment separate and apart from its trade or business. The management of the
				corporation's investment portfolio is the only duty of Mr. X, an employee. The
				salary paid to Mr. X is excluded from the payroll factor.
3) The term "compensation" is defined in
				Section
				100.3100
				of this Part.
4) The term
				"employee" is defined in Section
				100.3100
				of this Part.
5) In filing returns
				with this state, if the employer departs from or modifies the treatment of
				compensation paid used in returns for prior years, the employer shall disclose
				in the return for the current year the nature and extent of the modification.
				If the returns or reports filed by the employer with all states to which the
				employer reports under Article IV of the Multistate Tax Compact or the Uniform
				Division of Income for Tax Purposes Act are not uniform in the treatment of
				compensation paid, the employer shall disclose in its return to this state the
				nature and extent of the variance.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart M - BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3380 - Special Rules (IITA Section 304)

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Determining Business Activity or Market Within Illinois
1) Petition
IITA Section 304(f) provides that,
if the allocation
				  and apportionment provisions of Section 304(a) through (e) and (h) do not, for
				  taxable years ending before December 31, 2008, fairly represent the extent of a
				  person's business activity in this State, or do not, for taxable years ending
				  on or after December 31, 2008, fairly represent the market for the person's
				  goods, services, or other sources of business income, the person may petition
				  for, or the Director may require, in respect of all or any part of the person's
				  business activity, if reasonable:
A)
Separate
				accounting;
B)
The
				exclusion of any one or more factors;
C)
The inclusion of one or more
				additional factors that will fairly represent the person's business activities
				or market in this State; or
D)
The employment of any other method
				to effectuate an equitable allocation and apportionment of the person's
				business income.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart M - BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3390 - Petitions for Alternative Allocation or Apportionment (IITA Section 304(f)

Current through Register Vol. 48, No. 28, July 12, 2024
a) In general. IITA
				Section 304(f) provides that, if the allocation and apportionment provisions of
				IITA Section 304(a) through (e) do not, for taxable years ending before
				December 31, 2008, fairly represent the extent of the person's business
				activity in this State, or do not, for taxable years ending on or after
				December 31, 2008, fairly represent the market for the person's goods, services
				or other sources of business income, the person may petition for or the
				Director may require, in respect of all or any part of the person's business
				activity, if reasonable:
1) separate
				accounting;
2) the exclusion of any
				one or more of the factors;
3) the
				inclusion of one or more additional factors which will fairly represent the
				person's business activity in this State; or
4) the employment of any other method to
				effectuate an equitable allocation and apportionment of the person's
				income.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart M - BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3400 - Apportionment of Business Income of Financial Organizations for Taxable Years Ending Prior to December 31, 2008 (IITA Section 304(c))

Current through Register Vol. 48, No. 28, July 12, 2024
a) In General. For taxable years ending prior
				to December 31, 2008, business income of a financial organization shall be
				apportioned to this State by multiplying such income by a fraction, the
				numerator of which is its business income from sources within this State, and
				the denominator of which is its business income from all sources. (IITA Section
				304(c)(1))
1) IITA Section 304(c)(1)
				expressly provides that the adjusted income of an international banking
				facility is excluded from the amounts sourced to Illinois under its provisions.
				Adjusted income from an international banking facility is defined in IITA
				Section 304(c)(2) to mean amounts reported on a Consolidated Report of
				Condition which is filed with the Federal Deposit Insurance Corporation on
				Schedule A, lines 2.c., 5.b. or 7.a., or any successor or substitute report
				required by the Federal Deposit Insurance Corporation, as applicable to the tax
				year in question. Accordingly, all references in this Section to items sourced
				to Illinois must be read to exclude items comprising the adjusted income of an
				international banking facility.
2)
				Any item of income that is excluded from base income or subtracted in the
				computation of base income of the financial organization must therefore be
				excluded from the formula. See Continental Illinois National Bank and Trust
				Company of Chicago v. Lenckos, 102 Ill.2d 210 (1984). For example, dividends
				deducted from federal taxable income under
				26 USC
				243 or subtracted in the computation of base
				income under IITA Section 203(b)(2)(O) are excluded from the apportionment
				formula.
3) In determining the
				amount of business income included in the numerator or the denominator of the
				apportionment fraction, amounts of business income received during the tax year
				shall not be reduced by any expenses allocable to the business. The
				determination of gains or losses included in business income shall take into
				account the taxpayer's basis in property sold or otherwise disposed of, but in
				no event shall a loss included in business income reduce the numerator or
				denominator of the apportionment fraction below zero.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart M - BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3450 - Apportionment of Business Income of Transportation Companies (IITA Section 304(d))

Current through Register Vol. 48, No. 28, July 12, 2024
a) In
				General
1)
For taxable years ending
				prior to December 31, 2008, business income of a transportation company shall
				be apportioned to this State by multiplying that income by a fraction, the
				numerator of which is the revenue miles of the person in this State, and the
				denominator of which is the revenue miles of the person everywhere.
(IITA Section 304(d)(1))
2)
For taxable years ending on or after December 31, 2008:
A)
Business income derived from
				providing transportation services other than airline services shall be
				apportioned to this State by using a fraction:
i)
the numerator of which shall
				be:
* all receipts from any movement or shipment of
				  people, goods, mail, oil, gas, or any other substance (other than by airline)
				  that both originates and terminates in this State, plus
* that portion of the person's gross receipts from
				  movements or shipments of people, goods, mail, oil, gas, or any other substance
				  (other than by airline) that originates in one state or jurisdiction and
				  terminates in another state or jurisdiction, that is determined by the ratio
				  that the miles traveled in this State bears to total miles everywhere;
				  and
ii)
the
				denominator of which shall be all revenue derived from the movement or shipment
				of people, goods, mail, oil, gas, or any other substance (other than by
				airline)
(IITA Section 304(d)(3)); and
B)
Business income derived from
				furnishing airline transportation services shall be apportioned to this State
				by multiplying that income by a fraction, the numerator of which is the revenue
				miles of the person in this State, and the denominator of which is the revenue
				miles of the person everywhere.
(IITA Section 304(d)(4))
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart M - BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3500 - Allocation and Apportionment of Base Income by Nonresident Partners

Current through Register Vol. 48, No. 28, July 12, 2024
a) In General.
1) This Section provides guidance for
				allocation and apportionment of base income by nonresidents. All base income of
				a resident is allocated to Illinois pursuant to IITA Section 301(a).
2) Part-year residents. Under IRC section
				706(a), the income from a partnership for a given taxable year is included in
				the gross income of a partner in the taxable year of the partner in which the
				partnership's taxable year ends. Accordingly, this Section shall apply to the
				income of a part-year resident from any partnership whose taxable year ends
				during the period in which the partner was a nonresident. Income from a
				partnership whose taxable year ends during the period in which the partner is a
				resident will be allocated entirely to Illinois.
3) Unitary partners. This Section shall not
				apply to the apportionment of business income of a nonresident partner who is
				engaged in a unitary business with the partnership. Such partners shall
				apportion their unitary business income derived from the partnership in
				accordance with IITA Section 304(e) and Section
				100.3380(d)
				of this Part.
4) Except as provided
				in this subsection (a), all items of base income of a partner that are derived
				from the partnership shall be allocated or apportioned pursuant to this
				Section, including all items required to be separately stated to the partner
				under IRC section 703(a)(1), all guaranteed payments under IRC section 707(c),
				and all addition and subtraction modifications, but excluding items described
				in IRC section 707(a).
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart M - BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3600 - Combined Apportionment for Taxpayers Using Different Apportionment Formulas (IITA Section 1501(a)(27))

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				IITA Section 1501(a)(27) provides that,
in no event, for taxable years
				ending prior to December 31, 2017, may any unitary business group include
				members that are ordinarily required to apportion business income under
				different subsections of IITA Section 304
.
b) For taxable years ending on or after
				December 31, 2017, the business income of a unitary business group that
				includes members who apportion their business income under different
				subsections of IITA Section 304 shall be apportioned using the average of the
				apportionment percentages of each subgroup of members using the same
				apportionment formula (computed as if that subgroup were a separate unitary
				business group) weighted by the everywhere sales of the members of each
				subgroup (as determined under Sections
				100.3370
				and
				100.3380
				). The apportionment percentage of each member of the unitary business group is
				the apportionment percentage that member would compute if the subgroup of
				members using the same apportionment formula of that member were a separate
				unitary business group, multiplied by a fraction equal to the everywhere sales
				of that subgroup divided by the everywhere sales of the unitary business group.
1) The apportionment percentage of each
				member shall be equal to a fraction in which:
A) the numerator for each member shall be:
i) the total sales everywhere, as determined
				under Sections
				100.3370
				and 100.3380, for all members of the group that apportion business income under
				the same subsection of IITA Section 304 as that member,
ii) multiplied by a fraction equal to:
* that member's Illinois numerator of the apportionment
				  factor determined under the subsection of IITA Section 304 used by that member
				  to apportion its business income,
* divided by the total denominators of that apportionment
				  factor of all members required to apportion business income under the same
				  subsection of IITA Section 304; and
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart N - ACCOUNTING › Section 100.4100 - Taxable Years (IITA Section 401)

Current through Register Vol. 48, No. 28, July 12, 2024
a)
The term "taxable year" means the calendar year, or the fiscal year
				ending during such calendar year, upon the basis of which the base income is
				computed under the IITA. "Taxable year" means, in the case of a return made for
				a fractional part of a year under the provisions of the IITA, the period for
				which that return is made.
[IITA Section 1501(a)(23)]
b) Except as provided in this Section, for
				all purposes of the IITA,
the taxable year of a person is the same as
				the taxable year used by that person for federal income tax purposes.
[IITA Section 401(a)]
1)
The taxable
				year of any person required to file a return under the IITA but not under the
				Internal Revenue Code is the taxpayer's annual accounting period if it is a
				fiscal or calendar year, and in all other cases, is the calendar year.
[IITA Section 401(a)] The taxable year of a taxpayer that keeps no books or
				that does not have an annual accounting period is the calendar year.
2)
If the taxable year of a person is
				changed for federal income tax purposes, the taxable year of that person for
				purposes of the IITA is also changed.
[IITA Section 401(b)]
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart O - TIME AND PLACE FOR FILING RETURNS › Section 100.5000 - Time for Filing Returns (IITA Section 505)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Unless an extension of time for filing a
				return is granted, returns shall be filed on or before the due dates specified
				below.
1) Individuals
Under IITA Section 505(a)(2), the annual return of an
				  individual or married couple is required to be filed on or before the
				  15th day of the fourth month following the close of
				  the individual's or married couple's taxable year. The final return of a
				  decedent shall be filed at the time (extensions included) that it would have
				  been due had the decedent not died.
2) Corporations (Including Subchapter S
				Corporations)
Under IITA Section 505(a)(1), except as provided by
				  subsection (a)(6) of this Section, the annual return of a corporation is
				  required to be filed on or before the 15th day of
				  the third month following the close of the corporation's taxable year 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.
3) Cooperatives
The annual return of a cooperative is required to be filed on
				  or before the 15th day of the ninth month following
				  the close of the cooperative's taxable year. For purposes of this subsection
				  (a)(3), a cooperative is any taxpayer that derives its base income under IITA
				  Section 203(e)(2)(F) from federal taxable income determined in accordance with
				  IRC sections 1381 through 1388.
4) Partnerships
Under IITA Section 505(a)(2), the annual return of a
				  partnership is required to be filed on or before the
				  15th day of the fourth month following the close of
				  the partnership's taxable year.
5) Estates and Trusts
Under IITA Section 505(a)(2), the annual return of an estate
				  or trust is required to be filed on or before the
				  15th day of the fourth month following the close of
				  taxable year of the estate or trust.
6) Exempt Organizations
Under IITA Section 505(a)(3), the annual return of an
				  organization that is exempt from the federal income tax pursuant to IRC section
				  501(a) (other than an employees' trust described in IRC section 401(a)) is
				  required to be filed on or before the 15th day of
				  the fifth month following the close of the taxable year of the exempt
				  organization.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart O - TIME AND PLACE FOR FILING RETURNS › Section 100.5010 - Place for Filing Returns: All Taxpayers (IITA Section 505)

Current through Register Vol. 48, No. 28, July 12, 2024
IITA Section 505(a) authorizes the Department by regulations
				  to prescribe the place at which returns shall be filed. IITA Section
				  1501(a)(19) defines the term "regulations" as including rules promulgated and
				  forms prescribed by the Department. The place for filing returns is stated in
				  the instructions (which should be consulted) for the various income tax return
				  forms which the Department has prescribed.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart O - TIME AND PLACE FOR FILING RETURNS › Section 100.5040 - Innocent Spouses

Current through Register Vol. 48, No. 28, July 12, 2024
a) Spouses who
				file a joint return for a taxable year are each liable for the entire tax
				liability of the couple, regardless of which spouse earned the income
				reportable on the return. (See IITA Section 502(c).) However, spouses may be
				entitled to relief from some or all of a joint return liability under the
				Innocent Spouse provision in IITA Section 502(c)(4). An election under this
				Section to obtain such relief applies to every year for which a joint return
				was filed involving the same two individuals listed in the election.
b) For tax liabilities arising and paid prior
				to August 13, 1999, a spouse shall, with respect to any taxable year to which
				the election applies, be relieved from liability for any Illinois tax,
				penalties, additions to tax, interest, or other amounts, to the same extent as
				the relief provided by the Internal Revenue Service under a Section 6013(e)
				determination. If there is no federal income tax liability at issue, a spouse
				shall be relieved from liability for any Illinois tax, penalties, additions to
				tax, interest, or other amounts, if:
1) a
				joint return was filed for such taxable year;
2) the amount of understatement of tax
				exceeds $500 and is attributable to an omission by such person's
				spouse;
3) the spouse did not know
				of, and had no reason to know of, such omission at the time of signing the
				return; and
4) it is unfair to hold
				the spouse liable for the deficiency in tax for such omission.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart O - TIME AND PLACE FOR FILING RETURNS › Section 100.5050 - Frivolous Returns

Current through Register Vol. 48, No. 28, July 12, 2024
a) In addition
				to any other penalty provided by the IITA, there is imposed a penalty of $500
				upon any individual who files a purported return that does not contain
				information from which the substantial correctness of the stated tax liability
				can be determined or contains information indicating that the stated tax
				liability is substantially incorrect and such conduct is due to a desire to
				delay or impede the administration of the IITA or is due to a position that is
				frivolous. (IITA Section 1006)
b)
				The penalty imposed by IITA Section 1006 applies only to individual return
				filers. It does not apply to an individual acting as a return preparer for
				another taxpayer or to an individual filing or signing a return of any taxpayer
				other than that individual.
c) The
				penalty imposed by IITA Section 1006 applies to purported returns. Accordingly,
				the penalty may be imposed even though the filing is not a processable return
				within the meaning of UPIA Section 3-2(d), is not filed on the form prescribed
				by the Department under IITA Section 1401(a), or is insufficient to avoid
				imposition of the penalty for failure to file a return under IITA Section
				1001.
d) A purported return does
				not contain information from which the substantial correctness of the stated
				tax liability can be determined if it does not contain or is not verified by a
				signed, written declaration that it is made under penalties of perjury, as
				required by IITA Section 504, and such purported return is due to a desire to
				delay or impede the administration of the IITA and is therefore subject to
				penalty if:
1) the declaration on the form
				prescribed by the Department is altered or qualified in any way, or the filing
				is not made on the form prescribed by the Department and its verification is
				not identical to the verification contained in the form prescribed by the
				Department; or
2) it indicates on
				its face in any manner that the filer has intentionally failed to sign the
				verification. For example, a statement on or attached to a form, saying that
				the filer has not signed the verification because signing the verification
				would violate his or her rights under the United States Constitution or the
				Constitution of the State of Illinois against self-incrimination, against
				unreasonable searches and seizures or to due process, or because signing the
				verification would constitute perjury or would violate religious principles of
				the filer, would cause the filing to be frivolous and subject to
				penalty.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart O - TIME AND PLACE FOR FILING RETURNS › Section 100.5060 - Reportable Transactions (IITA Section 501(b))

Current through Register Vol. 48, No. 28, July 12, 2024
a) Requirement to Disclose Participation in
				Reportable Transactions
1) In general. For
				each taxable year in which a taxpayer is required to make a disclosure
				statement under Treasury Regulations Section 1.6011 -4 (
				26 CFR
				1.6011.4 (2004)) with respect to a reportable
				transaction in which the taxpayer participated in a taxable year for which a
				return is required under IITA Section 502, the taxpayer shall file a copy of
				such disclosure with the Department. (IITA Section 501(b)) A copy of such
				disclosure shall be filed at the time and in the manner provided under
				subsection (b).
2) Definitions. For
				purposes of this Section:
A) Reportable
				Transaction. A "reportable transaction" is any transaction that must be
				disclosed under Treasury Regulations Section 1.6011-4 and shall include any
				listed transaction that is required to be disclosed under Treasury Regulation
				Section 1.6011-4T or 1.6011-4 as of the earlier of the date disclosure is
				required under subsection (b)(1) or the date the taxpayer files its return to
				which such disclosure would need to be attached.
B) Listed Transaction. A "listed transaction"
				is any transaction entered into after February 28, 2000 that is the same as or
				substantially similar to one of the types of transactions that the IRS has
				identified by notice, regulation, or other form of published guidance as a
				listed transaction and that is required to be disclosed under Treasury
				Regulation Section 1.6011-4T or 1.6011-4.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart O - TIME AND PLACE FOR FILING RETURNS › Section 100.5080 - Registration of Tax Shelters (IITA Section 1405.5)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Requirement to Register Tax Shelters and
				Listed Transactions.
1) For the period
				beginning July 30, 2004 and ending October 22, 2004, under IITA Section
				1405.5(a), any tax shelter organizer required to register a "tax shelter" under
				26 USC
				6111 is required to register that tax shelter
				with the Department.
				26 USC
				6111 was amended by
				Public Law
				108-357 to delete any reference to "tax shelter".
				Accordingly IITA Section 1405.5(a) has no application after October 22, 2004,
				the effective date of Public Law 108-357.
2) For the period beginning July 30, 2004 and
				ending January 10, 2008, under IITA Section 1405.5(b), registration in the form
				and manner prescribed by the Department is required for any transactions
				entered into after February 28, 2000 that become listed transactions (as
				defined in Section
				100.5060
				of Subpart N of this Part) at any time. Transactions requiring registration
				under this provision are those transactions for which a list is required to be
				furnished to the Department pursuant to IITA Section 1405.6(b) and Section
				100.5070(a)(2)
				 of this Part.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart P - COMPOSITE RETURNS › Section 100.5110 - Composite Returns: Responsibilities of Authorized Agent

Current through Register Vol. 48, No. 28, July 12, 2024
a) Authorized Agent. If a composite return is
				filed, it shall be signed by a general partner in the case of partnership
				income, a corporate officer in the case of S Corporation income, or an
				attorney-in-fact in the case of a Lloyd's plan of operation. The filing of a
				composite return shall mean that the partnership, S Corporation, or Lloyd's
				plan of operation, whichever the case may be, is the authorized agent of the
				individuals included in the return. As such, the authorized agent shall assume
				responsibility for all matters relating to the composite return including the
				following: filing the return, amended returns, and requests for extension of
				time; the payment of tax, penalty and interest; assessment and collection;
				receiving and responding to notices from the Department of Revenue; and
				participating in an audit of the return.
b) Notice by the authorized agent. Other than
				the petitions required by Section
				100.5100(c)
				and (e), the authorized agent does not have
				to notify the Department of Revenue that it will commence or cease the filing
				of a composite return, nor does it have to give notice of any change in the
				individuals who will be included in a composite return for the next
				year.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart P - COMPOSITE RETURNS › Section 100.5120 - Composite Returns: Individual Liability

Current through Register Vol. 48, No. 28, July 12, 2024
Notwithstanding the assumption of liability by the authorized
				  agent, the persons included in a composite return will continue to remain
				  liable for any unpaid liability attributable to them in their separate
				  capacities. The filing of a composite return will be considered as a group of
				  separate returns which will meet the individual filing requirements of the
				  Illinois Income Tax Act. Persons not included in composite returns are required
				  to meet their Illinois filing and payment obligations separately, and failure
				  to do so could mean the imposition of civil and criminal
				  penalties.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart P - COMPOSITE RETURNS › Section 100.5150 - Composite Return: Tax, Penalties and Interest

Current through Register Vol. 48, No. 28, July 12, 2024
The amount of tax due shall be based on the amount of income
				  properly shown on the return, and, for taxable years ending on or after
				  December 31, 2009, may be reduced by any share of any credit earned under
				  Article 2 of the Illinois Income Tax Code during the taxable year that is
				  passed through to the partners or shareholders joining in the composite return.
				  Penalties and interest shall be determined on a composite
				  basis.
Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart P - COMPOSITE RETURNS › Section 100.5160 - Composite Returns: Credits on Separate Returns

Current through Register Vol. 48, No. 28, July 12, 2024
When the income of a taxpayer is included in a composite
				  return pursuant to an approved petition under Section
				  100.5100(c)
				  or, for taxable years ending prior to December 31, 1999, by a Lloyd's plan of
				  operation or, for taxable years ending on or after December 31, 2008, for any
				  other pass-through entity, the same amount of income will also be included in
				  the taxpayer's separate return. In this event, a credit may be claimed on the
				  taxpayer's separate return for the taxpayer's share of the composite tax
				  payment. A copy of the composite return shall be attached to the taxpayer's
				  return showing the amount of tax paid on the taxpayer's behalf by the
				  pass-through entity.