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The Illinois corporation income tax return is prepared for calendar, fiscal, and short-year corporations. Using entries from the federal tax return and on Illinois
- Form IL-505-B, Automatic Extension Payment
- Form IL-1120-ES, Illinois Estimated Income and Replacement Tax Payment for Corporations
- Form IL-1120-X-V, Amended Payment Voucher for Corporation
- Form IL-1120-V, Payment Voucher for Corporation Income and Replacement Tax
- Form IL-1120-X, Illinois Amended Corporation Income and Replacement Tax Return
- Form IL-1120, Illinois Corporation Income and Replacement Tax Return
- Schedule SA, Specific Accounting Method of Accounting
- Schedule 1299-D, Income Tax Credits
- Schedule 4255, Recapture of Investment Tax Credits
- Schedule NLD, Net Loss Deduction (regular returns)
- Schedule INS, Tax for Foreign Insures
- Schedule 1299-B, Enterprise Zone or Foreign Trade Zone Subtractions
- Schedule J, Foreign Dividends
- Form IL-4562, Special Depreciation
- Schedule 80/20, Related Party Expenses
- Schedule M, Other Additions and Subtractions
- Schedule NB, Nonbusiness Income
- Form IL-477, Replacement Tax Investment Credits
- Form IL-2220, Computation of Penalties by Businesses
- Form IL-2848, Power of Attorney
- Schedule K-1-P Received from Passthrough, Electronic Filing
- Schedule K-1-T Received from Passthrough, Electronic Filing
- ELFINFO, Additional Electronic Filing Information
- Schedule UB, Combined Apportionment for Unitary Business Group (combined returns)
- Schedule UB/NLD, Unitary Illinois Net Loss Deduction (combined returns)
- Schedule UB/INS, Tax for a Unitary Business Group with Foreign Insurer Members (combined returns)
- Subgroup Schedule (combined returns)
We include the required federal attachments with the government copy of the Illinois return.
Message from the IL DOR:
State Refund Expectations
The Illinois Department of Revenue (IDOR) is required to review returns and ensure the amounts requested as refunds are issued accurately and to the legitimate recipient. Once a return is received by IDOR, many different factors can affect the timing of a refund.
Please check your refund status at this website: https://www2.illinois.gov/rev/individuals/Pages/refunds.aspx
Taxes Due Expectations
https://www2.illinois.gov/rev/individuals/pay/Pages/default.aspx
Illinois Combined Unitary Return Processing Information
In the corporate tax program, the Illinois Unitary Business Group return can be prepared using one of the two methods described below.
In the S Corporation program, Illinois Unitary Business Group returns are prepared using Method 1.
Method 1
This method is selected when using the Unitary Business Group Return Automated Feature. This feature uses
The recommended input to complete "Method 1" is the same as method 2 except: The unitary combined returns state tax payments entered on
You may make for the Illinois combined Eliminations and Adjustments on the Schedule UB, Part II, by using
Method 2
Illinois combined corporation tax returns are processed with minimum entries. You must process the Illinois return for the parent company and all subsidiaries (individual companies) before processing the consolidating return. Process each individual company as though it is not a part of the Illinois combined return. On
Once you have processed the Illinois return for the individual companies, you can process the consolidating return. You must submit
The membership of the Illinois unitary group can be different than that of the federal consolidated group. If any of the companies listed on
Type of Information to be Shown and Recommended Input
Estimated Tax Payments: State tax payments entered on federal
Disclosure information at the top of IL-1120: Enter the information on federal
Late payment interest and all penalties: Enter the information on federal submitted with the consolidating unit.
Form IL-1120, Step 2 additions to base income and Schedule UB, Part III: Some additions are automatic from information submitted with the federal units. The tax addback can be overridden by entering the information on
Form IL-1120, Step 3 and Schedule UB, Part III subtractions from base income: Interest from U.S. Treasury obligations is automatic from the federal return. It can be overridden by entering the information on
Form IL-1120, Step 8: Enter the estimated tax payments made on federal
Form IL-1120, Step 4, Schedule NB, Schedule UB, Part III, Lines 8 and 9, and Schedule UB, Part IV information when a portion of base income or loss is derived outside Illinois, is completed from federal apportionment input submitted with the separate companies. To eliminate or adjust the amounts for nonbusiness income, submit
Form IL-1120, Steps 6 and 7, Recapture of Investment Credits can be completed from information entered on of the consolidating unit.
Form IL-1120, Step 5, Illinois Net Loss Deduction, can be completed from information entered on federal submitted with the separate companies. We also use this information to complete Schedule UB/NLD. If the loss relates to a time before the member joined the unitary group, and such loss is eligible for application against income of all members of this year's combined group, check State Use
Form IL-1120, Step 6, Investment Credits, and Form IL-477 can be completed from
Income Tax Credits on Schedule 1299-D can be completed from
Illinois Frequently Asked Questions
Q. How are Illinois returns impacted by the depreciation provision of the new federal Tax Cuts and Jobs Act of 2018?
A. No adjustment or other modification is generated on Form IL-4562 for assets with 100% bonus depreciation. All other bonus differences carry to IL-4562.
Q. How do I enter information for Schedule NLD?
A. Use
Q. Why will my Schedule NLD not highlight when I have a loss?
A. According to the form instructions, this form is not to be used when there is a loss in the current year.
Q. Why does my Schedule NLD not show all of my losses?
A. The Illinois Department of Revenue only wants losses being used against current year income to show on this form. Marking
Q. How can I enter property and payroll apportionment information?
A. Property and payroll apportionment factors have been eliminated. Apportionment is based either on sales or special apportionment formula. To use special apportionment use
Q. Why do payment vouchers and estimated tax vouchers show ".00" (pennies)?
A. The Illinois Department of Revenue requests pennies or zeros ".00" be included on the amount boxes on scannable vouchers.
Q. How do I request an Illinois Amended Corporation Income and Replacement Tax Return, Form IL-1120-X?
A. The Illinois amended return (Form IL-1120-X) can be processed using
Q. How do I generate an Illinois extension, Form IL-505-B?
A. State extensions are requested on
Illinois Combined Frequently Asked Questions
Q. Why are some members which were included in the federal consolidated return missing from the Illinois combined return?
A. In order for the member to be included in the Illinois combined return, the member (parent or subsidiary) must have an Illinois return created. There are three methods that can be used to create an Illinois return. The Illinois return can be created by using
Q. When the depreciation totals section have entries at the separate company level, including bonus depreciation, can Form IL-4562 be prepared without additional entries at the combined return level?
A. You must use
Q. Where do I enter the apportionment information for Schedule UB, Part IV?
A. The apportionment information must be entered with the separate companies. For sales factor apportionment, use
Q. How do I process a return with different members for the Illinois unitary business group than the federal consolidated group?
A. If the membership of the federal consolidated group and the Illinois combined group are different, you must process the two returns separately. After processing the federal consolidated return, add or delete members on
Q. Why does the Tax Payments Worksheet not print with the combined return?
A. The Department of Revenue has requested for a number of years that payments be made by only one company.
Q. How do I indicate that I do not want my separate entity to be a part of the Federal consolidated Group?
A. At the separate entity level, with an 'IL' on
Q. On Schedule UB/NLD, why are some losses originating in later years claimed before those originating in earlier years?
A. The instructions to Schedule UB/NLD direct that losses be claimed in the order of expiration (earliest-expiring first). Losses incurred by members for periods on or after December, 2003 are subject to a 12 year carryforward period and may expire before earlier losses which were subject to a 20 year carryforward (origination period on or after August, 1997) or a 15 year carryforward (origination period before August, 1997).
Q. How can an S Corporation member be included on Schedule UB?
A. Please see information above.
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