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IL-1120-ST Instructions (R-06/18) Page 1 of 19
Illinois Department of Revenue
IL-1120-ST Instructions 2017What’s new for 2017?
• PublicAct100-0022increasedtheincometaxrateduringthe2017taxyear.YoumustuseScheduleK-1-P(3)tocalculatethecorrectamountofpass-throughwithholdingyoumustwithholdforyournonresidentmembers.SeeScheduleK-1-P(1)andInformationalBulletinFY2018-14formoreinformation.• PublicAct100-0022hasalsoretroactivelyrestoredtheResearchandDevelopmentCreditfortaxyearsendingafterDecember31,2015.SeetheSchedule1299-Ainstructionsformoreinformation.• FortaxyearsendingonorafterDecember31,2017,thenon-combinationruleiseliminated.UnitarybusinessgroupswillnolongerexcludememberswhoareordinarilyrequiredtoapportionbusinessincomeunderdifferentsubsectionsofSection304.AseparateSubgroupSchedulehasbeencreatedforusebyFinancialOrganizationSubgroups,RegulatedExchangeSubgroups,andTransportationCompanySubgroupstoassistinScheduleUBcalculations.SeeSpecificInstructionsforStep1,LineE.
• AnewcheckboxhasbeenaddedinStep1toindicateifaSubgroupScheduleisattached.SeeScheduleUB,SubgroupSchedule,andSpecificInstructionsformoreinformation.• Achangetothedefinitionof“UnitedStates”willrequireunitarybusinessgroupstoincludemembersoperatinginanyareaoverwhichtheU.S.hasassertedjurisdictionorclaimedexclusiverightswithrespecttoexplorationfororexploitationofnaturalresources(i.e.,theoutercontinentalshelf).ThisdoesnotincludemembersoperatinginanyterritoryorpossessionoftheUnitedStates.• AnewcheckboxhasbeenaddedinStep1toindicatebusinessactivityprotectedunderPublicLaw86-272.SeeSpecificInstructionsformoreinformation.• FortaxyearsendingonorafterDecember31,2017,theDomesticProductionActivitiesDeduction(DPAD)allowedunderSection199oftheInternalRevenueCode(IRC)mustbeaddedbacktofederaltaxableincomeonLine9ofScheduleM.• TheEconomicDevelopmentforaGrowingEconomy(EDGE)TaxCredithasbeenextendedtotaxyearsendingonorbeforeJune30,2022.SeeSchedule1299-AInstructionsformoreinformation.• TheAngelInvestmentCredithasbeenextendedandmaybeclaimedfortaxyearsendingonorbeforeDecember31,2021.SeeSchedule1299-AInstructionsformoreinformation.• NewMarketsCredithasbeenextendedtotaxyearsendingonorbeforeJune30,2021.SeeSchedule1299-AInstructionsformoreinformation.
• TheRiverEdgeHistoricPreservationCredithasbeenextendedtotaxyearsendingpriortoJanuary1,2022.The2017taxyearwillbethefinaltaxyearthefiveyearcreditcarryforwardcanbeearned.AnyRiverEdgeHistoricPreservationcreditclaimedonareturnfiledfora2018orlatertaxyearcannotbecarriedforward. SeeSchedule1299-AInstructionsformoreinformation.• TheLiveTheaterProductionTaxCredithasbeenextendedandmaybeclaimedfortaxyearsbeginningpriortoJanuary1,2022.SeeSchedule1299-AInstructionsformoreinformation.• PublicAct100-0587,commonlyreferredtoastheFY2019BudgetImplementationAct,hasretroactivelyextendedtheHospitalCredituntiltaxyearsendingonorbeforeDecember31,2022.FortaxpayerswithataxyearbeginningonorafterJune14,2017,youmaynowclaimthiscredit.SeeSchedule1299-AInstructionsformoreinformation.• AnOtherCreditsLinehasbeenaddedtoSchedule1299-AforcreditswhichmaybecarriedforwardforfiveyearsbutforwhichnospecificlinehasbeenprovidedonSchedule1299-AandwhichareallowedbytheIllinoisIncomeTaxAct(IITA).SeeSchedule1299-AInstructionsformoreinformation.• AsaresultofPublicAct99-0641,fortaxableyearsbeginningonorafterJanuary1,2017,anytaxpreparerwhoispaidtoprepareanIllinoisBusinessIncomeTaxreturnmustsignanddatethereturn,enterthepreparertaxidentificationnumber(PTIN)issuedtothembytheInternalRevenueService,andprovidetheirfirm’sname,address,andphonenumber.FormIL-1120-SThasbeenrevisedtoenablepaidpreparerstoprovidethisinformation.• DuetofederalPublicLaw115-97,IRCSection965netincome(Section965(a)amountlessSection965(c)deduction)mustbeincludedonyourreturn.Formoreinformation,seeSpecificInstructionsforStep2,Lines6and11.AtachacopyoftheIRC965TransitionTaxStatementtoyourIL-1120-ST.IfyouarefilingelectronicallyyoumaysubmittheStatementbyemailtorev.BitSupplemental@illinois.govasaPortableDocumentFormat(.pdf)filewithafilenameandsubjectof“965Tax”.IRCSection965netincomequalifiesfortheforeigndividendsubtractionmodificationunderIITASection203(b)(2)(O)andisreportedonLine25ofScheduleM.Line33ofScheduleisnolongerapplicable.AnyIRCSection965incomeordeductionpassedthroughtoshareholdersmustbeidentifiedbyattachingastatementtoScheduleK-1-P.
Use for tax year ending on or after December 31, 2017, and before December 31, 2018.
PrintedbyauthorityoftheStateofIllinois-WebOnly-1
General InformationWho must file Form IL-1120-ST?YoumustfileFormIL-1120-STifyouareasmallbusinesscorporation(“Scorporation”),asdefinedinInternalRevenueCode(IRC)Section1361(a),that• hasnetincomeorlossasdefinedundertheIllinoisIncomeTaxAct(IITA);or
• isqualifiedtodobusinessinthestateofIllinoisandisrequiredtofileU.S.Form1120S(regardlessofnetincomeorloss).
IfyouownaQualifiedSubchapterSSubsidiary(QSSS)definedinIRCSection1361(b)(3),aswellasanyotherentitythatisdisregardedasanentityseparatefromyouforpurposesoftheIRC,itislikewisedisregardedasaseparateentityforpurposesoftheIITA.Youmustincludeallitemsofincome,deduction,loss,credit,etc.,
fromsuchentitiesonyourreturnasiftheywereearnedorincurredbyyoudirectly.IfyouareanScorporationthatisamemberofaunitarybusinessgroup,seetheinstructionsforIllinoisScheduleUB,CombinedApportionmentforUnitaryBusinessGroup,and“WhatifIamamemberofaunitarygroup?”inthegeneralinstructionsbelowforinformationaboutfilingrequirements.Scorporationsmayberequiredtoapportiontheirbusinessincomeasmembersofaunitarygroup,butcannotfileacombinedreturn.
What forms must I use?Ingeneral,youmustobtainanduseformsprescribedbytheIllinoisDepartmentofRevenue.SeparatestatementsnotonformsprovidedorapprovedbytheDepartmentwillnotbeacceptedandyouwill
Page2of19 IL-1120-ST Instructions (R-06/18)
beaskedforappropriatedocumentation.Failure to comply with this requirement may result in failure to file penalties, a delay in the processing of your return, or a delay in the generation of any overpayment.Additionally,failuretosubmitappropriatedocumentationwhenrequestedmayresultinareferraltoourAuditBureauforcomplianceaction.S corporations must complete Form IL-1120-ST. Donotsendacomputerprintoutwithlinenumbersanddollaramountsattachedtoablankcopyofthereturn.Computergeneratedprintoutsarenotacceptable,eveniftheyareinthesameformatastheDepartment’sforms.ComputergeneratedformsfromaDepartment-approvedsoftwaredeveloperareacceptable.
FormIL-1120-ST(R12/17)isfortaxyearendingonorafterDecember31,2017,andbeforeDecember31,2018.FortaxyearendingbeforeDecember31,2017,usethe2016form.Usingthewrongformwilldelaytheprocessingofyourreturn.
How do I register my business?IfyouarerequiredtofileFormIL-1120-ST,youshouldregisterwiththeIllinoisDepartmentofRevenue.Youmayregister• onlinewithMyTaxIllinois,ourfreeonlineaccountmanagementprogramfortaxpayers;
• bycompletingFormREG-1,IllinoisBusinessRegistrationApplication,andmailingittotheaddressontheform;or
• byvisitingaregionaloffice.Visitourwebsiteattax.illinois.govformoreinformation.RegisteringwiththeIllinoisDepartmentofRevenue(IDOR)prior to filing your returnensuresthatyourtaxreturnsareaccuratelyprocessed.YouridentificationnumbersasanIllinoisbusinesstaxpayerareyourfederalemployeridentificationnumber(FEIN)andyourIllinoisaccountnumber.
When should I file?YourIllinoisfilingduedateisthesameasyourfederalfilingduedate.Ingeneral,FormIL-1120-STisdueonorbeforethe15thdayofthe3rd monthfollowingthecloseofthetaxyear.Automatic seven-month extension —Wegrantyouanautomaticseven-monthextensionoftimetofileyoursmallbusinesscorporatetaxreturn.YouarenotrequiredtofileFormIL-505-B,AutomaticExtensionPayment,inordertoobtainthisautomaticextension.However,ifyouexpecttaxtobedue,youmustuseFormIL-505-Btopayanytentativetaxdueinordertoavoidinterestandpenaltyontaxnotpaidbytheoriginalduedateofthereturn.AnextensionoftimetofileyourFormIL-1120-STisnotanextensionoftimeforpaymentofIllinoistax.Additional extensions beyond the automatic extension period — Wewillgrantanextensionofmorethansevenmonthsonly ifanextensionisgrantedbytheInternalRevenueService(IRS)beyondthedateoftheIllinoisautomaticextension.YouradditionalIllinoisextensionwillbeequaltothefederalextension,plusonemonth.YoumustattachacopyoftheapprovedfederalextensiontoyourFormIL-1120-ST.
When should I pay?Payment of tax —YoumustpayyourIllinoisReplacementTaxandpass-throughwithholdingreportedonbehalfofyourmembersinfullonorbeforetheoriginalduedateofthereturn.Thispaymentdateapplieseventhoughanautomaticextensionforfilingyourreturnhasbeengranted.Estimated tax payments —Smallbusinesscorporationsarenotrequiredtomakeestimatedtaxpayments.Youmay,however,useFormIL-516-IandFormIL-516-B,Pass-throughPrepaymentVouchers,tomakevoluntaryprepaymentsfortax years ending on or after December 31, 2014.FormIL-1000,
Pass-throughEntityPaymentIncomeTaxReturn,andFormIL-1023-C,CompositeIncomeandReplacementTaxReturn,havebeeneliminatedfortaxyearsendingonorafterDecember,31,2014,andtheamountsthatwouldhavebeenreportedontheseformsmustbe• reportedonyourFormIL-1120-STandScheduleB,and• paidonyourFormIL-1120-STorFormIL-505-B.FormIL-516-IandFormIL-516-Ballowyoutovoluntarilyprepayyourowntaxliabilityaswellasmakepass-throughentityprepaymentsonbehalfofyourpartnersorshareholders.
DonotuseFormIL-1120-ES,EstimatedIncomeandReplacementTaxPaymentsforCorporations,tomakevoluntaryprepayments.
Who should sign the return?YourFormIL-1120-STmustbesignedbythepresident,vicepresident,treasurer,oranyotherofficerdulyauthorizedtosignthereturn.Inthecaseofabankruptcy,areceiver,trustee,orassigneemustsignanyreturnrequiredtobefiledonbehalfofthecorporation.Thesignatureverifiesbywrittendeclaration(andunderpenaltiesofperjury)thatthesigningindividualhaspersonallyexaminedthereturnandthereturnistrue,correct,andcomplete.Thefactthatanindividual’snameissignedtoareturnisprimafacieevidencethattheindividualisauthorizedtosignthereturnonbehalfofthe corporation.Anypersonpaidtopreparethereturn(otherthanaregular,full-timeemployeeofthetaxpayer,suchasaclerk,secretary,orbookkeeper)mustprovideasignature,datethereturn,enterthepreparertaxidentificationnumber(PTIN)issuedtothembytheInternalRevenueService,andprovidetheirfirm’sname,address,andphonenumber.
Ifyourreturnisnotsigned,anyoverpaymentoftaxisconsideredforfeitedif,afternoticeanddemandforsignature,youfailtoprovideasignaturewithinthreeyearsfromthedateyourreturnwasfiled.
What are the penalties and interest?Penalties —Youwillowe• a late-filing penaltyifyoudonotfileaprocessablereturnbytheextendedduedate;
• a late-payment penaltyifyoudonotpaythetaxyouowebytheoriginalduedateofthereturn;
• a bad check penaltyifyourremittanceisnothonoredbyyourfinancialinstitution;
• a cost of collection feeifyoudonotpaytheamountyouowewithin30daysofthedateprintedonyourbill.
Interest —Interestiscalculatedontaxfromthedayaftertheoriginalduedateofyourreturnthroughthedateyoupaythetax.Wewillbillyouforpenaltiesandinterest.Formoreinformationaboutpenaltiesandinterest,seePublication103,PenaltiesandInterestforIllinoisTaxes,availableattax.illinois.gov.
What if I am discontinuing my business?Liquidation, withdrawal from Illinois, or loss of charter — Ifyouareacorporationthatisliquidated,withdrawseithervoluntarilyorinvoluntarilyfromIllinois,orinanymannersurrendersorlosesyourcharterduringanytaxyear,youarestillrequiredtofiletaxreturns.Also,wewillpursuetheassessmentandcollectionoftaxesowedbyyouoryourshareholders.Sales or transfers — Ifyouareacorporationthat,outsidetheusualcourseofbusiness,sellsortransfersthemajorpartofanyoneormoreof• thestockofgoodswhichyouareinthebusinessofselling,• thefurnitureorfixturesofyourbusiness,• themachineryandequipmentofyourbusiness,or• therealpropertyofyourbusiness,
IL-1120-ST Instructions (R-06/18) Page3of19
youorthepurchasermustcompleteandsendusFormCBS-1,NoticeofSale,Purchase,orTransferofBusinessAssets,nolaterthan10daysafterthedatethesaletookplace.Mailthisform,alongwithcopiesofthesalescontractandfinancingagreement,to: ILLINOIS DEPARTMENT OF REVENUE BULK SALES UNIT 100 WEST RANDOLPH, Level 7-400 CHICAGO IL 60601Or ILLINOIS DEPARTMENT OF REVENUE BULK SALES UNIT PO BOX 19035 SPRINGFIELD IL 62794-9035Request for prompt determination — Youmaymakearequestforpromptdeterminationofliability,inaccordancewithIITA35ILCS5/905(i),ifyouareacorporationintheprocessofdissolution.Acompletedtaxreturnmustbeonfilewithusbeforeyoucansubmitarequestforpromptdetermination.Donotsubmityourreturnandrequestatthesametime.Mailyourinitialreturntotheaddressindicatedontheform.Youshouldallow12weeksforprocessing.Ifyourrequestisproperlymade,theexpirationofthestatuteoflimitations(absentfraud)willnotextendbeyond18monthsfromthedateofyourrequest.Mailyourrequestandacopyofyourpreviouslysubmittedreturnto: ILLINOIS DEPARTMENT OF REVENUE PO BOX 19044 SPRINGFIELD IL 62794-9044
Theproceduredescribedabovedoesnotapplyto11U.S.CodeSection505DeterminationofTaxLiabilityrequests.
What if I need to correct or change my return?Do not fileanotherFormIL-1120-STwith“amended”figurestochangeyouroriginallyfiledFormIL-1120-ST.Ifyouneedtocorrectorchangeyourreturnafterithasbeenfiled,youmustfileFormIL-1120-ST-X,AmendedSmallBusinessReplacementTaxReturn.Returnsfiledbeforetheextendedduedateofthereturnaretreatedasyouroriginalreturnforallpurposes.Formoreinformation,seeFormIL-1120-ST-Xinstructions.YoushouldfileFormIL-1120-ST-XonlyafteryouhavefiledaprocessableIllinoisIncomeTaxreturn.YoumustfileaseparateFormIL-1120-ST-Xforeachtaxyearyouwishtochange.State changes only —FileFormIL-1120-ST-XpromptlyifyoudiscoveranerroronyourIllinoisreturnthatdoesnotrelatetoanerroronyourfederalreturnbutratherwascausedby• amistakeintransferringinformationfromyourfederalreturntoyourIllinoisreturn;
• failingtoreportormisreportingtoIllinoisanitemthathasnoeffectonyourfederalreturn;or
• amistakeinanotherstate’staxreturnthataffectsthecomputationofyourIllinoistaxliability.
Ifyouareclaiminganoverpayment,FormIL-1120-ST-Xmustbefiledwithinthreeyearsaftertheextendedduedateorthedatethereturnwasfiled,orwithinoneyearafterthetaxgivingrisetotheoverpaymentwaspaid,whicheverislatest.Federal changes only —FileFormIL-1120-ST-XifyouhavefiledanamendedfederalreturnorifyouhavebeennotifiedbytheIRSthattheyhavemadechangestoyourreturn.Thisincludesanychangeinyourfederalincometaxliability,anytaxcredit,orthecomputationofyourfederaltaxableincomeasreportedforfederalincometaxpurposes,ifthechangeaffectsanyitementeringintothecomputationofnetincome,netloss,oranycreditforanyyearundertheIITA.YoumustfileFormIL-1120-ST-Xnolaterthan120daysafterthefederalchangeshavebeenagreedtoorfinallydeterminedtoavoidalate-paymentpenalty.
IfyourfederalchangedecreasesthetaxduetoIllinoisandyouareentitledtoarefundorcreditcarryforward,youmustfileFormIL-1120-ST-Xwithintwoyearsplus120daysoffederalfinalization.AttachacopyoffederalfinalizationorproofofacceptancefromtheIRSalongwithacopyofyouramendedfederalform,ifapplicable,toyourFormIL-1120-ST-X.Examplesoffederalfinalizationincludeacopyofoneormoreofthefollowingitems:• yourauditreportfromtheIRS• yourfederalrecordofaccountverifyingyourordinarybusinessincome
What records must I keep?YoumustmaintainbooksandrecordstosubstantiateanyinformationreportedonyourFormIL-1120-ST.Yourbooksandrecordsmustbeavailableforinspectionbyourauthorizedagents andemployees.
Do the IDOR and the IRS exchange income tax information?TheIDORandtheIRSexchangeincometaxinformationforthepurposeofverifyingtheaccuracyofinformationreportedonfederalandIllinoistaxreturns.AllamountsyoureportonFormIL-1120-STaresubjecttoverificationandaudit.
Should I round?YoumustroundthedollaramountsonFormIL-1120-STandaccompanyingschedulestowhole-dollaramounts.Todothis,youshoulddropanyamountlessthan50centsandincreaseanyamountof50centsormoretothenexthigherdollar.
What if I have an Illinois net loss deduction (NLD)?UsetheversionoftheScheduleNLD,IllinoisNetLossDeduction,ortheScheduleUB/NLD,UnitaryIllinoisNetLossDeduction,whichcorrespondstoyourtaxyear.Youmustfileyourreturnforthelossyearandforeachinterveningyearinordertoestablishtheamountofyourdeduction.IfyouhaveanIllinoisNLDfromanylossyearendingonorafterDecember31,1986,itissubtractedfromandlimitedtoyourbaseincomeallocabletoIllinois.Todetermineyour“Illinoisnetloss”startwithfederalordinaryincomeplusseparatelystateditems,andapplyalladditionandsubtractionmodificationsandallallocationandapportionmentprovisions.IllinoisnetlossesincurredintaxyearsendingonorafterDecember31,2003,mayonlybecarriedforward12years.IfyouarecarryingforwardanIllinoisNLD,youmustcompleteIllinoisScheduleNLD,IllinoisNetLossDeduction,andclaimthedeductiononStep7,Line50.IfyouhaddischargeofindebtednessincomeforataxableyearendingonorafterDecember31,2008,andalloraportionofthisincomewasexcludedfromyourfederalgrossincomeduetobankruptcyorinsolvency,thenyoumayberequiredtoreduceanyIllinoisnetlossyouincurredforthatyearbeforeyoudetermineanIllinoisNLD.SeetheStep7InstructionsandScheduleNLDorUB/NLDformoreinformation.IfyouhaveanIllinoisnetlossforthistaxyear,youmustfileFormIL-1120-STreportingthelossinordertocarrythelossforwardtoanotheryear.Ifyouneedmoreinformation,seetheScheduleNLDinstructions,orIllinoisIncomeTaxRegulations,Sections100.2050and100.2300through100.2330,availableonourwebsiteattax.illinois.gov.
What attachments do I need?WhenfilingyourreturntherearecertaintypesofincomeitemsandsubtractionmodificationsthatrequiretheattachmentofIllinoisorfederalformsandschedules.Breakdowns,statements,
Page4of19 IL-1120-ST Instructions (R-06/18)
andotherdocumentationmayalsoberequired.Instructionsfortheseattachmentsappearthroughoutthespecificinstructionsforcompletingyourreturn.
AllIllinoisformsandschedulesincludean“IL Attachment No.”intheupperrightcorneroftheform.Requiredattachmentsshouldbeorderednumericallybehindthetaxreturn,asindicatedbytheILAttachmentNo.Failuretoattachformsandschedulesintheproperordermayresultinprocessingdelays.Requiredcopiesofdocumentationfromyourfederalreturnorothersourcesshouldbeattachedbehind the completed Illinois return.All taxpayers, including unitary business groups, must attach a copy of your U.S. Form 1120S, Pages 1 through 5, to your Illinois return. ScheduleB,Partners’orShareholders’Information,musttobecompletedandattachedtoallFormIL-1120-STfilings.IfyouarerequiredtoattachanySchedule(s)K-1-P,Partner’sorShareholder’sShareofIncome,Deductions,Credits,andRecapture,onlyattachSchedule(s)K-1-Pyou receivedwhichlistsyournameandFEINinStep2ofScheduleK-1-P.Do notattachcopiesofSchedule(s)K-1-Pyou issuedandwhichlistsyournameandFEINinStep1ofScheduleK-1-P.
WhenfilingyourFormIL-1120-ST,includeonlyformsandschedulesrequiredtosupportyourreturn.Sendcorrespondenceseparatelyto: ILLINOIS DEPARTMENT OF REVENUE TAXPAYER CORRESPONDENCE PO BOX 19044 SPRINGFIELD IL 62794-9044
Definitions to help you complete your Form IL-1120-ST.Allreferencesto“income”includelosses.Base incomemeansfederalordinaryincomemodifiedbyadditionsandsubtractionsasshowninSteps2through5ofFormIL-1120-ST.SeespecificinstructionsforSteps2through5.Business incomemeansallincome(otherthancompensation)thatmaybeapportionedbyformulaamongthestatesinwhichyouaredoingbusinesswithoutviolatingtheConstitutionoftheUnitedStates.Allincomeofacorporationisbusinessincomeunlessitisclearlyattributabletoonlyonestateandisearnedorreceivedthroughactivitiestotallyunrelatedtoanybusinessyouareconductinginmorethanonestate.Businessincomeisnetofalldeductionsattributabletothatincome.Mostincomeofacorporationisregardedasbusinessincome.Consequently,inthecaseofacorporationotherthanapersonalholdingcompany,theconsistenttreatmentofincomefromintangiblesasbusinessincomeinfilingIllinoistaxreturnswillbepresumedcorrect.Commercial domicilemeanstheprincipalplacefromwhichyourtradeorbusinessisdirectedormanaged.Nonbusiness incomemeansallincomeotherthanbusinessincomeorcompensation.Formoreinformationaboutthedifferenttypesofnonbusinessincome,seetheinstructionsforIllinoisScheduleNB,NonbusinessIncome.Apass-through entityisanyentitytreatedasapartnership,subchapterScorporation,ortrustforfederalincometaxpurposes.Pass-through entity income istheincomethatanypartnership,subchapterScorporation,ortrustpassesthroughtoitspartners,shareholders,orbeneficiaries.Pass-through withholding paymentsarepaymentsrequiredtobereportedandpaidbythepass-throughentityonbehalfofitsnonresidentpartners,shareholders,andbeneficiaries• whohavenotsubmittedFormIL-1000-E,CertificateofExemptionforPass-throughWithholdingPayments,tothe
pass-throughentity,and• whoreceivebusinessandnonbusinessincomefromthepass-throughentity.
Pass-throughwithholdingpaymentsare• reportedtoyourshareholdersontheScheduleK-1-Pyousendtothem,
• reportedtotheDepartmentonyourFormIL-1120-STandIllinoisScheduleB,and
• paidwithyourreturn,withFormIL-505-B,orvoluntarilyprepaidwithFormIL-516-IorFormIL-516-B.
Ifanyofyourshareholdersarepass-throughentitiesthemselves,theyarerequiredtoreportandpaypass-throughwithholdingpaymentsonbehalfoftheirownnonresidentpartners,shareholders,orbeneficiariesontheincomeyoupassedthrough.YourshareholdersmayclaimacreditontheirIllinoisIncomeTaxreturnforpass-throughpaymentsyoureportedandpaidontheirbehalf.
FortaxyearsendingbeforeDecember31,2014,pass-throughwithholdingpaymentswereknownas“pass-throughentitypayments”or“compositereturnpayments”andwerereportedonFormIL-1000orFormIL-1023-Crespectively.Scorporationscanbothmakeandreceivepass-throughwithholdingpayments.• Pass-through withholding payments you owe on behalf of
your membersarepass-throughwithholdingpaymentsyou makeonbehalfofyournonresidentshareholderswhohavenotsubmittedFormIL-1000-Etoyou.ThisamountwillbereportedonFormIL-1120-ST,Line58.
• Pass-through withholding payments reported to youarecreditsforpass-throughwithholdingpaymentsyou receive onSchedulesK-1-PandK-1-Tasapartner,shareholder,orbeneficiaryofapass-throughentity.ThisamountwillbereportedonFormIL-1120-ST,Line60c.
Ifyouareanonresidentandthepass-throughwithholdingpaymentsreportedtoyousatisfyyourIllinoisIncomeTaxliability,youarenotrequiredtofileanIllinoisIncomeTaxreturn.IfyouhadIllinoisincomefromothersourcesandthepaymentsmadeonyourbehalfdonotcoveryourliability,youmustfileareturntoreportthetaxonallofyourIllinoisincomeandclaimacreditforpass-throughwithholdingpaymentsmadeonyourbehalf.Allresidentsandpass-throughentitiesmustfiletheirownannualIllinoisIncomeTaxreturnandclaimacreditforanypass-throughwithholdingpaymentsreportedtothem.
What does taxable in other states mean?Taxableinotherstatesmeansyouaresubjecttoandpay“tax”inanotherstate.“Tax”includesnetincometax,franchisetaxmeasuredbynetincome,franchisetaxfortheprivilegeofdoingbusiness,andcorporatestocktax.Youareconsideredtaxableinanotherstateifthatstatehasjurisdictiontosubjectyoutoanetincometax,eventhoughthatstatedoesnotimposesuchatax.ThisdefinitionisforpurposesofallocatingnonbusinessincomeandapportioningbusinessincomeinsideoroutsideIllinois.
When must I use Illinois Schedules K-1-P, K-1-P(3), and B?Youmustuse Illinois Schedule K-1-Ptosupplyeachshareholderwiththatindividual’sorentity’sshareoftheamountsreportedonyourfederalandIllinoistaxreturns.ForIllinoisIncomeTaxpurposes,youmustgiveacompletedIllinoisScheduleK-1-Pandacopyofthe Illinois Schedule K-1-P(2),Partner’sandShareholder’sInstructions,toeachshareholder.Do not file copies of Illinois Schedule K-1-P that you issue to your shareholders with your Form IL-1120-ST.However,youmustkeepacopyofeachIllinoisScheduleK-1-Pwithyourtaxrecords.SeeIllinoisScheduleK-1-P(1),Instructionsfor
IL-1120-ST Instructions (R-06/18) Page5of19
PartnershipsandSCorporationsCompletingScheduleK-1-PandScheduleK-1-P(3),formoreinformation.Youmustuse Illinois Schedule K-1-P(3),Pass-throughWithholdingCalculationforNonresidentMembers,tocalculatetherequiredtaxyoumustreportandpayonbehalfofyournonresidentshareholderswhoreceivebusinessornonbusinessincomefromyourScorporation..YoumustcompletethescheduleifyouhavebusinessornonbusinessincomedistributabletoIllinoisnonresidentshareholderswhohavenotprovidedyouwithFormIL-1000-E,CertificateofExemptionforPass-throughWithholdingPayments.YouarerequiredtocompleteScheduleK-1-P(3)foreachsuchshareholderandkeepacopyofthecompletedscheduleinyourfiles.Do not submit Schedule K-1-P(3) to the Department unless we request it from you. TheinformationenteredonthisschedulewillassistyouincompletingIllinoisScheduleB.SeeScheduleK-1-P(1)formoreinformation.YoumustuseIllinois Schedule B tosupplyuswithalistingofyourshareholders,certainitemsofincomeandcreditstheyreceivedfromyou,andpass-throughwithholdingpaymentsyoumadeontheirbehalf.Youmust completealllinesofIllinoisScheduleB,asapplicable,and fileitwithyourFormIL-1120-ST.
What if I am a member of a unitary group?IfanScorporationis• unitarywithacombinedgroupandusesthesametaxableyearasthecombinedgroup,itshouldusetheScheduleUBpreparedbythecombinedgroupincompletingitsFormIL-1120-ST;
• unitarywithacombinedgroup,butitusesadifferenttaxableyear,itmustcompleteaScheduleUBusingitsowntaxableyear;or,
• notunitarywithagroupfilingacombinedreturn,itmustcompleteitsownScheduleUBusingitsowntaxableyear.
UnitarymembersthatareScorporationscanusethelinereferencechartintheScheduleUBinstructionstohelpcomplete2017FormIL-1120-ST.Steps2and3ofeachseparatelyfiledFormIL-1120-STmustbecompletedshowingonlytheScorporation’sseparate-companyitems.Theamountsoneachmember’sFormIL-1120-ST,Lines14through21(lessLine20)andLines23through33(lessLine24),shallbethecombinedtotalsshownonScheduleUB,Step3,ColumnE.
ThemodificationsforFormIL-1120-STLines20and24arenotincludedasmodificationsontheScheduleUB.TheamountonFormIL-1120-ST,Lines20or24mustbecomputedontheIllinoisScheduleB,ColumnEWorksheet,foundintheseinstructions.CarrythecombinedtotalamountsfromScheduleUB,Step3,ColumnEforeachlineitemoftheColumnEWorksheet.
UsetheLine20andLine24amountstocomputetheScorporation’sbaseincomeonFormIL-1120-ST,Step5,Line35.ChecktheboxonFormIL-1120-ST,Step5,Line35BandcompleteFormIL-1120-ST,Step6bysubtracting
• onLine36,thecombinednonbusinessincomeoftheentireunitarybusinessgroup,minustheportionallocabletoshareholderssubjecttoreplacementtax,and
• onLine37,theamountreceivedbytheentireunitarybusinessgroupfromnon-unitarypartnerships,partnershipsincludedontheScheduleUB,Scorporations,trusts,andestates,minustheportionallocabletoshareholderssubjecttoreplacementtax.
OnFormIL-1120-ST,Step6,Line40,includetheeverywheresalesamountfromScheduleUB,Step4,ColumnD,Line2.OnLine41
ofStep6ofFormIL-1120-ST,includeonlytheScorporation’sIllinoissales.OnFormIL-1120-ST,Step6,Lines44and45,includeonlythenonbusinessincomeoftheScorporation,andthebusinessincomeorlossapportionabletoIllinoisreceivedbytheScorporationfromtrusts,estates,non-unitarypartnerships,partnershipsincludedontheScheduleUB,andScorporationsminustheportionofthoseamountsallocabletoshareholderssubjecttoreplacementtax.
SchedulesusedtocomputeanyamountsshownmustbeattachedtoFormIL-1120-ST.
Ifyouneedmoreinformation,visitourwebsiteat tax.illinois.govandviewtheIllinoisIncomeTaxRegulationsreferencedintheseandtheScheduleUBinstructions.
May I file a composite return or pass-through entity payment return for nonresident shareholders?No.Youmaynotfileacompositereturnorpass-throughentitypaymentreturnforanynonresidentmembersthathaveincomefromyourScorporation.FormIL-1023-CandFormIL-1000havebeeneliminatedfortaxyearsendingonorafterDecember31,2014.Do notfileFormIL-1000orIL-1023-CfortaxyearsendingonorafterDecember31,2014.TheamountsthatwouldhavebeenreportedonbehalfofyourmembersontheseformsmustbereportedonyourFormIL-1120-STandScheduleB.SeeScheduleBinstructionsformoreinformation.
What if I participated in a reportable transaction?
Ifyouparticipatedinareportabletransaction,includinga“listedtransaction,”duringthistaxyearandwererequiredtodisclosethattransactiontotheIRS,youarealsorequiredtodisclosethatinformationtoIllinois.YoumustsendustwocopiesoftheformyouusedtodisclosethetransactiontotheIRS.
• Mailthefirstcopyofthefederaldisclosurestatementto:
ILLINOIS DEPARTMENT OF REVENUE PO BOX 19029 SPRINGFIELD IL 62794-9029
• AttachthesecondcopytoyourIllinoisIncomeTaxreturnforthetaxyearthattheIRSdisclosurewasrequired.MailthesecondcopyandyourIllinoisIncomeTaxreturntotheaddressshownonyourreturn.Do notmailthesecondcopyandyourIllinoisIncomeTaxreturntotheaddresslistedabove.
What if I need additional assistance or forms?Ifyouneedadditionalassistance-
• Visitourwebsiteattax.illinois.gov.• Writetousat: ILLINOIS DEPARTMENT OF REVENUE PO BOX 19044 SPRINGFIELD IL 62794-9044 • Call1 800 732-8866or217 782-3336(TDD,telecommunicationsdeviceforthedeaf,at1 800 544-5304).
• Visitaregionaloffice.Ourofficehoursare8:00a.m.to5:00p.m.(Springfieldoffice)and8:30a.m.to5:00p.m.(allotherregionaloffices),MondaythroughFriday.
Ifapaymentisnot enclosed,mailyourFormIL-1120-STto:ILLINOIS DEPARTMENT OF REVENUE PO BOX 19032SPRINGFIELD IL 62794-9032
Where should I file?Ifapaymentisenclosedwithyourreturn,mailyourFormIL-1120-STto:ILLINOIS DEPARTMENT OF REVENUEPO BOX 19053
SPRINGFIELD IL 62794-9053
Page6of19 IL-1120-ST Instructions (R-06/18)
Specific InstructionsIfyouneedadditionalformsorschedules,visitourwebsiteattax.illinois.gov.
Specificinstructionsformostofthelinesareincluded.Ifaspecificlineisnotreferenced,followtheinstructionsontheform.
Step 1 — Identify your small business corporationA — All taxpayers: Typeorprintyourlegalbusinessname.Ifyouhaveanamechangefromlastyear,checkthecorrespondingbox.B —Typeorprintyourmailingaddress.Ifyouraddresshaschangedsinceyoufiledyourlastreturnorifthisisyourfirstreturn,checkthebox.
IfyoucheckedtheboxinLineBbecauseyouhaveneverfiledanIllinoisreturn,youmustalsocheckthe“firstreturn”boxinLineC.C —Ifthisisyourfirstorfinalreturn,checktheappropriatebox.D — IfyoucheckedfinalreturnonLineC,answerthequestionsonLineD,ifapplicable.E — Apportionment Formulas-IfyouearnincomebothinsideandoutsideofIllinios,checktheappropriatebox(es).Ifyouareaunitarybusinessgroup,checkasmanyboxesasapplicable.Ifmorethanoneboxischecked,youmustcompleteaSubgroupScheduleforeachcheckedboxthatisnotasalescompany.IfyouearnincomeonlyinsideIllinois,leavethislineblank.Formoreinformation,seethespecificinstructionsfor“ApportionmentFormulas.”F — IfyouareclaimingaspecialdepreciationadditionorsubtractionmodificationsonFormIL-1120-ST,checktheboxandattachFormIL-4562,SpecialDepreciation,toyourtaxreturn.G — IfyouareclaimingotheradditionorsubtractionmodificationsonFormIL-1120-ST,checktheboxandattachScheduleM,OtherAdditionsandSubtractions(forbusinesses),toyourtaxreturn.H — Ifyouareclaimingrelated-partyexpensesmodificationsonyourFormIL-1120-ST,checktheboxandattachSchedule80/20,Related-PartyExpenses,toyourtaxreturn.I —ChecktheboxifyouareclaimingdeductionsorcreditslistedonIllinoisSchedule1299-A,TaxSubtractionsandCredits.YoumustchecktheboxonLineIandattachIllinoisSchedule1299-AandanyotherrequiredsupportlistedonSchedule1299-Atoyourtaxreturntosupportanydeductionsorcreditsyouareclaimingorpassingtoyourshareholders.J — IfyouareaunitarybusinessgroupandcompletedSubgroupSchedule,checkthisboxandattachSubgroupSchedule.SeeSubgroupScheduleandScheduleUBInstructionsformoreinformation.K — Enteryourentirefederalemployeridentificationnumber(FEIN).ApartialFEINwilldelaytheprocessingofyourreturn.L — Ifyouareamemberofagroupfilingasaunitarybusiness,checktheboxandentertheFEINofthememberwhopreparedIllinoisScheduleUB.AttachScheduleUBtothisreturn.M — EnteryourNorthAmericanIndustryClassificationSystem(NAICS)Code.Ifyouareunsureofyourcode,youcanresearchtheinformationatwww.census.gov/eos/www/naicsorwww.irs.gov.N — EnteryourIllinoiscorporatefile(charter)numberassignedtoyoubytheIllinoisSecretaryofState.O — IfyoukeepyouraccountingrecordsinalocationdifferentfromtheaddressindicatedonLineB,enterthecity,thetwo-letterstateabbreviation,andtheZipCodeforthelocationtherecordsarekept.P —Ifyouaremakingtheelectiontotreatallofyourincomeotherthancompensationasbusinessincomeforthistaxyear,youmustchecktheboxonthislineandenterzeroonStep6,Lines36and
44.This election must be made by the extended due date of this return. Once made, the election is irrevocable. Q — IfyouarerequiredtodisclosereportabletransactionsandyouhavecompletedfederalForm8886orfederalScheduleM-3,PartII,Line10,checktheappropriateboxandattachacopyofthefederalformorscheduletothisreturn.See“WhatifIparticipatedinareportabletransaction?”formoreinformation.R — ChecktheboxifyoumustadjustyourlossorlosscarryoverduetoDischargeofIndebtedness.Formoreinformation,seetheinstructionsforLine48,theLossReductionWorksheetonpage9oftheseinstructions,andScheduleNLD.S — IfyourbusinessactivityisprotectedunderPublicLaw86-272,checkthisboxandcompleteSteps1through7ofyourIL-1120-ST.
You must complete a Department-issued or previously approved Form IL-1120-ST and corresponding schedules. Donotsendacomputerprintoutorspreadsheetswithlinenumbersanddollaramountsattachedtoablankcopyofthereturn.
Step 2 — Figure your ordinary income or loss Ifyouareamemberofaunitarygroup,enterthefigures
oneachlineofStep2thatreflectyourseparatecompanyincome.See“WhatifIamamemberofaunitarygroup?”intheGeneralInstructions.Lines 1 through 5 — Entertheamountforeachlineitemfromthecorrespondingline(s)onyourU.S.Form1120S,ScheduleK.Seethechartbelowtodeterminethecorrectcorrespondinglines.
Form IL-1120-STFederal form 1120S,
Schedule K
Line1 Line1
Line2 Line2
Line3 Line3c
Line4 Lines4,5a,6,7,8a
Line5 Line9
Line 6 — IncludeanyitemsofincomeorlossfromU.S.Form1120S,ScheduleK,thatarenotincludedonanyotherlineofStep2orStep3ofthisFormIL-1120-ST. IncludetheamountfromLine1oftheIRC965TransitionTaxStatementandattachtheStatementtoyourreturn.IfyouarefilingelectronicallyyoumaysubmittheStatementbyemailtorev.BitSupplemental@illinois.govasaPortableDocumentFormat(.pdf)filewithafilenameandsubjectof“965Tax”.
Step 3 — Figure your unmodified base income or loss
Ifyouareamemberofaunitarygroup,enterthefiguresoneachlineofStep3thatreflectsyourseparatecompanyincome.See“WhatifIamamemberofaunitarygroup?”intheGeneralInstructions.Lines 8 through 10 — EntertheamountforeachlineitemfromthecorrespondinglineonyourU.S.Form1120S,ScheduleK.Seethechartonthispagetodeterminethecorrectcorrespondinglines.
Form IL-1120-STFederal form 1120S,
Schedule K
Line8 Line12a
Line9 Line11
Line10 Line12b
IL-1120-ST Instructions (R-06/18) Page7of19
Line 11 — Includeanyitemsofexpense
• youarerequiredtostateseparatelytoyourshareholders,ratherthanincludeinordinaryincome, and
• thatwouldbetakenintoaccountbyanindividualincomputinghisorhertaxableincome,and
• thatarenotincludedonanyotherlineofStep2orStep3ofthisFormIL-1120-ST.
IncludetheIRCSection965deductionlistedonLine3oftheIRC965TransitionTaxStatement.AttachtheStatementtoyourreturn.IfyouarefilingelectronicallyyoumaysubmittheStatementbyemailtorev.BitSupplemental@illinois.govasaPortableDocumentFormat(.pdf)filewithafilenameandsubjectof“965Tax”.
Donotincludeanyofthefollowingitemsonthisline:• netoperatinglosscarryovers;• anydomesticproductionactivitydeductionallowedunderIRCSection199;or
• anydepletionamountsallowedfederallyonyouroilandgasproperties.
WhilethedomesticproductionactivitydeductionisnotallowedtopartnershipsorsubchapterScorporations,youmaycalculateand“passthrough”anyallowabledeductiontoyourpartnersandshareholders.SeeInformationBulletinFY2006-07,DomesticActivityProductionDeduction.Line 13 — Thisisyourtotalunmodifiedbaseincomeorloss.
Ifyouareamemberofaunitarygroupthis amount should reflect your separate company incomeasshownonthecorrespondingcolumnofScheduleUB,Step2,ColumnA,B,orC,Line30.
Step 4 — Figure your income or loss Ifyouareamemberofaunitarygroup,see“WhatifIam
amemberofaunitarygroup?”intheGeneralInstructions,andtheinstructionsforLine14,below.Line 14 — Followtheinstructionsontheform.
IfyouareamemberofaunitarygroupdonotentertheamountfromFormIL-1120-ST,Step3,Line13.Enter your combined company incomeasshownonScheduleUB,Step2,ColumnE,Line30.
Donotenternegative amountsonLines15through21. Line 15 — Enterthetotalofallamountsexcludedfromunmodifiedbaseincomethatwerereceivedoraccruedasfederallytax-exemptinterest(e.g.state,municipalandotherinterest)andalldistributionsofexemptinterestreceivedfromregulatedinvestmentcompaniesduringthetaxyear. Line 16 — YoumustaddbackanyamountofIllinoisReplacementtaxesandsurchargethatyoudeductedonyourU.S.Form1120Stoarriveatyourordinarybusinessincome.Youarenotrequiredtoaddbacktaxesfromotherstatestakenasafederaldeduction.Line 17 — EntertheadditionamountcalculatedonFormIL-4562,Step2,Line4.Formoreinformation,seeFormIL-4562andinstructions.Attach Form IL-4562 to your Form IL-1120-ST.Line 18 —Entertheinterestorintangibleexpenses,orinsurancepremiumspaidtoan80/20company,totheextenttheseexpensesexceedanytaxabledividendsyoureceivedfromtheaffiliatedcompany.Tocomputetheamountofthisaddition,completeStep2ofIllinoisSchedule80/20andenteronLine18thetotalfromIllinoisSchedule80/20,Step2,Line13.Attach Illinois Schedule 80/20 to your Form IL-1120-ST.Someinterestandintangibleexpensesmaybeexemptfromthisadd-backprovision.SeeIllinoisSchedule80/20Instructionsformoreinformationincludingdefinitionsof“affiliatedcompany,”“intangibleexpenses,”and“intangibleassets.”
Line 19 — Ifyouareapartnerinapartnership,ashareholderinanScorporation,orabeneficiaryofatrustoranestate,includeyourdistributiveshareofadditionsreceivedfromthepartnership,Scorporation,trustorestateonSchedulesK-1-PorK-1-T.Ifyoureceivemultipleschedulesbecauseyouarearecipientfrommultipleentities,youshouldenterthecombinedtotalofStep5,ColumnA,Lines32through37,fromallIllinoisSchedulesK-1-PyoureceiveandStep5,ColumnA,Lines30through35,fromallIllinoisSchedulesK-1-Tyoureceive.Attach a copy of all Illinois Schedules K-1-P and K-1-T you received to your Form IL-1120-ST.
ThepartnershiporScorporationisrequiredtosendyouanIllinoisScheduleK-1-PandthetrustortheestateisrequiredtosendyouanIllinoisScheduleK-1-T,specificallyidentifyingyourshareofincome.
IncludeonlyadditionsreportedtoyouontheSchedule(s)K-1-PorK-1-Tyoureceivedfromapass-throughentityinwhichyouareaninvestingpartnerorshareholderorabeneficiary.Do not attach copiesofSchedulesK-1-Pyouissuedtoyourpartnersorshareholders.Youshouldkeepcopiesoftheseschedulesinyourrecords.Line 20 — CompleteIllinoisScheduleB.IllinoisScheduleB,SectionA,Line3representstheshareofdistributableincomeorlossthatistobeaddedtoorsubtractedfrombaseincome.IfthetotalamountonIllinoisScheduleB,SectionA,Line3isanegativeamount(loss),itshouldbeenteredonLine20asapositiveamount.SeetheIllinoisScheduleBInstructionsfollowingtheseSpecificInstructionsformoreinformation. Attach Illinois Schedule B to your Form IL-1120-ST. Line 21 —EntertheadditionamountcalculatedonIllinoisScheduleM,OtherAdditionsandSubtractions(forbusinesses),Step2,Line11.Attach a copy of Illinois Schedule M to your Form IL-1120-ST.ThefollowingareexamplesofitemsthatmustbeaddedtotaxableincomeandareincludedonIllinoisScheduleM.• Notes,bonds,debentures,orobligationsissuedbytheGovernmentsofGuam,AmericanSamoa,PuertoRico,theNorthernMarianaIslands,ortheVirginIslands.
• Lloyd’splanofoperationslossifreportedonyourbehalfonFormIL-1065,PartnershipReplacementTaxReturn,andincludedinyourtaxableincome.
• Deductionsyouclaimedthisyearandinyourtwomostrecenttaxyearsforexpensesconnectedwithincomefromanassetoractivitywhichwerereportedasbusinessincomeinprioryearsandasnonbusinessincomeonthisreturn.SeeIllinoisScheduleNB,NonbusinessIncome,Line11,andIllinoisScheduleNBInstructionsformoreinformation.
Step 5 — Figure your base income or lossDonotenternegative amountsonLines23through34.
AdoubledeductionisprohibitedbyIITA,Section203(g).Youcannotdeductthesameitemmorethanonce.Line 23 — EnterthetotalinterestreceivedoraccruedfromU.S. Treasurybonds,notes,bills,federalagencyobligations,andsavingsbondsincludedinordinarybusinessincome.Youmaynot subtractanythingthatisnotidentifiedinIllinoisPublication101,IncomeExemptfromTax.Thisamountisnetofanybondpremiumamortizationdeductedfederally.Line 24 — CompleteIllinoisScheduleB.IllinoisScheduleB,SectionA,Line3representstheshareofdistributableincomeorlossthatistobeaddedtoorsubtractedfrombaseincome.IfthetotalamountonIllinoisScheduleB,SectionA,Line3isapositiveamount,enterthatamountonLine24.IfthetotalamountonIllinoisScheduleB,SectionA,Line3isnegative,leaveLine24blankandseetheinstructionsforLine20. Formoreinformation,seetheIllinois
Page8of19 IL-1120-ST Instructions (R-06/18)
ScheduleBInstructionsfollowingtheseSpecificInstructions.Attach Illinois Schedule B to your Form IL-1120-ST.Lines 25 through 29 —You must attach Illinois Schedule 1299-A, Tax Subtractions and Credits, and any other required support listed on Schedule 1299-A to your Form IL-1120-ST if you have an amount on any of the following lines.Line 25 — EntertheRiverEdgeRedevelopmentZoneDividendsubtractionfromIllinoisSchedule1299-A,Step1,Line3.Line 26 — EntertheRiverEdgeRedevelopmentZoneInterestsubtractionfromIllinoisSchedule1299-A,Step1,Line12.Line 27 — EntertheHighImpactBusinessDividendsubtractionfromIllinoisSchedule1299-A,Step1,Line6.Line 28 — For financial organizations only —EntertheHighImpactBusinesswithinaForeignTradeZone(orsub-zone)InterestsubtractionfromIllinoisSchedule1299-A,Step1,Line15. Line 29 — EntertheamountofanyContributionsubtractionfromIllinoisSchedule1299-A,Step1,Line9.Line 30 — EnterthesubtractionallowancefromFormIL-4562,Step3,Line10.Attach Form IL-4562 to your Form IL-1120-ST. Line 31 — EntertheamountfromIllinoisSchedule80/20,Step4,Line32.Attach Illinois Schedule 80/20 to your Form IL-1120-ST.YoushoulduseIllinoisSchedule80/20if• youaddedbackinterestpaidtoanaffiliatedcompanyonStep4,Line18.Youmaysubtractanyinterestreceivedfromthatcompanyduringthistaxyear,uptotheamountofyouradditionforinterestexpensepaidtothatcompany.Also,ifyouaddedbackintangibleexpensesfromatransactionwithanaffiliatedcompanyonLine18,youmaysubtractanyincomeyoureceivedduringthetaxyearfromsimilartransactionswiththeaffiliatedcompany,uptotheamountofyouradditionforintangibleexpenseforthatcompany.Tocomputetheamountofthissubtraction,completeIllinoisSchedule80/20.
• youareanaffiliatedcompany,andyoureceivedinterestorintangibleincomefromsomeonewhohadtoaddbacktheinterestandintangibleexpense,orinsurancepremiumsontheirIllinoisSchedule80/20.Youmaysubtractyourinterestorintangibleincomefromthatperson.
Line 32 — Enteryourdistributiveshareofsubtractionspassedthroughtoyoubyapartnership,Scorporation,trust,orestateonSchedulesK-1-PorK-1-T.DonotincludeanyamountspassedthroughthatarereflectedonIllinoisSchedule1299-A.Attach a copy of all Illinois Schedules K-1-P and K-1-T you received to your Form IL-1120-ST.
ThepartnershipisrequiredtosendyouanIllinoisScheduleK-1-PandthetrustortheestateisrequiredtosendyouanIllinoisScheduleK-1-T,specificallyidentifyingyourshareofsubtractions.
IncludeonlysubtractionsreportedtoyouontheSchedule(s)K-1-PorK-1-Tyoureceivedfromapass-throughentityinwhichyouareaninvestingpartnerorshareholderorabeneficiary.Do not attach copiesofSchedulesK-1-Pyouissuedtoyourpartnersorshareholders.Youshouldkeepcopiesoftheseschedulesinyourrecords.Line 33 —EnterthesubtractionamountcalculatedonIllinoisScheduleM,Step3,Line36. Attach a copy of Illinois Schedule M to your Form IL-1120-ST.Youmaynot subtractanythingthatisnotidentifiedbelow,onScheduleM(forbusinesses),orinIllinoisPublication101.SubtractionsallowedonIllinoisScheduleMinclude:• notes,bonds,debentures,orobligationsissuedbytheGovernmentsofGuam,AmericanSamoa,PuertoRico,theNorthernMarianaIslands,ortheVirginIslands,totheextentthatyouwererequiredtoaddtheseamountstoyourfederalordinaryincome.
• therefundofIllinoisreplacementtaxforaprioryear,totheextentincludedinyourfederalordinaryincome.
• anyotherincomeincludedonStep4,Line22,exemptfromtaxationbyIllinoisbyreasonofitsConstitutionorstatutesorbytheConstitution,treaties,orstatutesoftheUnitedStates.Thisamountisnetofanybondpremiumamortizationdeductedfederally.Formoreinformation,seeIllinoisPublication101.
• theamountequaltothedeductionusedtocomputethefederaltaxcreditforrestorationofamountsheldunderclaimofrightunderIRCSection1341.
• thedeductionsfor“foreigndividendgross-up(IRCSection78),”“subpartFincome,”orforeigndividendswhichareallowedasasubtractionmodificationunderIITA,Sections203(b)(2)(G)and203(b)(2)(O).You must provide supporting attachments clearly identifying each item taken as a subtraction.
• contributionsyoumadeundertheTaxIncrementAllocationRedevelopmentActtoajobtrainingproject.Formoreinformation,seeFYBulletin1990-40.
Line 35 — Thisisyourbaseincomeorloss.FollowtheinstructionsontheformandcheckaboxonLineAorB.Youmustcheckoneoftheseboxesandfollowtheinstructionsforthatline.Check the box on Line A if• allofyourbaseincomeorlossisderivedinsideIllinois;and• youdonothaveanyincomeorlosstoreportonLines36,37,44,or45.
If you check the box on Line A, do not complete Step 6.AllofyourbaseincomeorlossisallocabletoIllinois.SkipStep6,entertheamountfromStep5,Line35onStep7,Line47,andcompletetheremainderofthereturn.Check the box on Line B if any of the following apply• yourbaseincomeorlossisderivedinsideandoutsideIllinois;• allofyourbaseincomeorlossisderivedoutsideIllinois;or• youhaveincomeorlosstoreportonLines36,37,44,or45.If you check the box on Line B, you must complete all lines of Step 6.SubmittingFormIL-1120-STwithanincompleteStep6,includingLines40,41,and42mayresultinadelayinprocessingyourreturn,furthercorrespondence,andyoumayberequiredtosubmitfurtherinformationtosupportyourfiling.SeetheSpecificInstructionsforStep6formoreinformation.
Step 6 — Figure your income allocable to IllinoisYoumust checktheboxonLineBandcompletealllinesofStep6ifanyportionofLine35,baseincomeorloss,isderivedoutsideIllinois,oryouhaveanyincomeorlosstoreportonLines36,37,44,or45.Ifyoudonotcompleteall ofStep6,Lines36through46,wemayissueanoticeanddemandproposing100percentofincomeasbeingallocabletoIllinois,orinthecaseofalossreturn,anoticeindicatingnoneofyourlossasbeingallocatedtoIllinois.Inordertoproperlyallocateyourbaseincomeorlossyouneedtodeterminewhatportionofthetotalbaseincomeisbusinessincomeorlossthatistobeapportionedamongallthestatesinwhichyoudobusiness,andwhatportionisnonbusinessincomeorlossthatistobeallocatedtoaparticularstate.
Unitary filers - YoumustcompletebothStep4oftheScheduleUBandStep6oftheFormIL-1120-ST.
Line by Line Instructions YoumustcompletealllinesofStep6.
Line 36 —Entertheamountofallnonbusinessincomeorlossincludedinbaseincome,netofanyrelateddeductionsandany
IL-1120-ST Instructions (R-06/18) Page 9 of 19
amountdistributabletoshareholderssubjecttoreplacementtax,fromIllinoisScheduleNB,ColumnA.IncludeanynonbusinessincomeyoureceivedfromIllinoisSchedulesK-1-PorK-1-TintheamountsreportedonScheduleNB.Attach Illinois Schedule NB and all Illinois Schedules K-1-P or K-1-T you received to your Form IL-1120-ST. Ifyoudonothaveanamounttoreportonthisline,enter“0”.
Ifyouaremakingtheelectiontotreatallincomeotherthancompensationasbusinessincomeforthistaxyear,youmustchecktheboxinStep1,LineO,andenter“0”hereandonLine44.This election must be made by the extended due date of this return. Once made, the election is irrevocable. Line 37 — Entertheamountofallbusinessincomeorlossincludedinbaseincomereceivedfromanynon-unitarypartnership,partnershipincludedonaScheduleUB,Scorporation,trust,orestateofwhichyouareapartnerorabeneficiary,netofanyamountdistributabletoshareholderssubjecttoreplacementtax.SeeIllinoisSchedulesK-1-P(2)orK-1-T(2)formoreinformation.Attach a copy of all Illinois Schedules K-1-P and K-1-T you received to your Form IL-1120-ST. Ifyoudonothaveanamounttoreportonthisline,enter“0”.
ThepartnershipisrequiredtosendyouanIllinoisScheduleK-1-PandScheduleK-1-P(2),andthetrustortheestateisrequiredtosendyouanIllinoisScheduleK-1-TandScheduleK-1-T(2),specificallyidentifyingyourshareofincome.
Ifyouareapartnerengagedinaunitarybusinesswithyourpartnership,youmustincludeyourdistributableshareofthepartnership’sbusinessincomeinyourbusinessincome.DonotsubtractthisbusinessincomeonLine37.Lines 40 through 42 — YoumustcompleteLines40through42ifanyofthefollowingapply• yourbusinessincomeorlossisderivedinsideandoutsideIllinois;• allofyourbusinessincomeorlossisderivedoutsideIllinois;or• youhaveincomeorlosstoreportonLines36,37,44,or45.FollowspecificinstructionsbelowforLines40through42.
Ifyouareafinancialorganization,transportationcompany,salescompany,orfederallyregulatedexchange,checktheappropriateboxinStep1,LineE(financialorganization,transportationcompany,salescompany,orfederallyregulatedexchange)andsee“ApportionmentFormulas”intheseinstructions.
Ifyouareapartnerengagedinaunitarybusinesswithyourpartnership,youmustincludeyourdistributiveshareofthe“everywhere”and“Illinois”salesfactorsfromthepartnershipinyour“everywhere”and“Illinois”salesfactors.Formoreinformation,seeIllinoisIncomeTaxRegulations,Section100.3380(d).Line 40 —Enteryourtotalsaleseverywhere.Line 41 —EnteryourtotalsalesinsideIllinois.
Lines40and41cannotbelessthanzero.TheamountonLine41cannotexceedtheamountonLine40.
IfyoucheckedtheboxonLine35BanddonotcompleteLines40and41wemayissueanoticeanddemandproposing100percentofincomeasbeingallocatedtoIllinois,orinthecaseofalossreturn,anoticeindicatingnoneofyourlossasbeingallocatedtoIllinois.Line 42 — DivideLine41byLine40andentertheresult,roundedtosixdecimalplaces.Theresultcannotbegreaterthan“1”orlessthan“0.”
IfyoucheckedtheboxonLine35BanddonotcompleteLine42wemayissueanoticeanddemandproposing100percentofyourincomeasbeingallocatedtoIllinois,orinthecaseofalossreturn,anoticeindicatingnoneofyourlossasbeingallocatedtoIllinois.Line 43 —Followtheinstructionsontheform.IfyoucheckedtheboxonLine35BanddidnotcompleteLines40,41,and42wemay• propose100percentofyourincomeasbeingallocabletoIllinois• proposenoneofyourlossasbeingallocabletoIllinois.Line 44 — EntertheamountofnonbusinessincomeorlossallocabletoIllinoisfromIllinoisScheduleNB,ColumnB.IncludeanynonbusinessincomeyoureceivedfromIllinoisSchedulesK-1-PorK-1-TintheamountsreportedonScheduleNB.ThisamountisnetoftheportionofyourIllinoisnonbusinessincomedistributabletoshareholderssubjecttoreplacementtax.Attach a copy of Schedule NB and all Illinois Schedules K-1-P and K-1-T you received to your Form IL-1120-ST. Ifyoudonothaveanamounttoreportonthisline,enter“0”.
IfyoucheckedtheboxnextinStep1,LineO,makingtheelectiontotreatallofyourincomeotherthancompensationasbusinessincome,thenenter“0”onLine44.Line 45 — EntertheamountoftheincomeorlossreportedonStep6,Line37thatisapportionabletoIllinoisasreportedbythenon-unitarypartnership,partnershipincludedonaScheduleUB,trust,orestateonIllinoisSchedulesK-1-PorK-1-T,netoftheportiondistributabletoshareholderssubjecttoreplacementtax.SeeIllinoisSchedulesK-1-P(2)orK-1-T(2)formoreinformation.Attach a copy of all Illinois Schedules K-1-P and K-1-T you received to your Form IL-1120-ST. Ifyoudonothaveanamounttoreportonthisline,enter“0”.Step 7 — Figure your net incomeLine 47 —Followtheinstructionsontheform.Ifthisamountisaloss,youmaybeallowedtocarryitforwardtootheryearsasanIllinoisnetlossdeduction(NLD).Line 48 — IftheamountonLine47isaloss,andyouwererequiredtoreducethenetoperatinglossreportedonyourfederalForm1120-Sbecauseyouexcludedanydischargeofindebtednessincomefromthistaxyear’sgrossincome,thenyoumayberequiredtoreducethenetlossreportedonLine47.UsetheLossReductionWorksheetonpage9tofigureyourlossreduction.Attach a copy of your federal Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, to your Form IL-1120-ST.Formoreinformation,seeIllinoisIncomeTaxRegulations,Section100.2310(c).
Loss Reduction Worksheet 1 Entertheamountofthereductiontoyourfederalnetoperatinglosses fromfederalForm982. 1 _________________ 2 Enteryourincomeallocationratio.Seeinstructions. 2 _________________ 3 MultiplytheamountonLine1byLine2.Thisisyourreductionamount. EntertheresulthereandonFormIL-1120-ST,Line48. 3 _________________
Line 2 — YourincomeallocationratioiscalculatedbydividingtheamountofdebtcancellationincomeexcludedfromyourgrossincomethatwouldhavebeenallocatedorapportionedtoIllinoisundertheIITAifitwasnotexcludedbythetotalamountofdebtcancellationincomeexcludedfromyourgrossincome.Ifallofyourdebtcancellationincomewouldhavebeenbusinessincome,usetheapportionmentfactoryoucalculatedonthereturnforthetaxyearofthedebtcancellation.
Page10of19 IL-1120-ST Instructions (R-06/18)
Line 49 — If you have a discharge of indebtedness adjustment onLine48,addlines47(anegativenumber)and48(apositivenumber),andentertheresulthere.Thisamountcannotbegreaterthan“0”.If you do not have a discharge of indebtedness adjustment,enter“0”onLine48andtheamountfromLine47onLine49.Line 50 — EnteryourIllinoisNLDcarryforwardfromtheIllinoisScheduleNLD,Step1,Line5totalbox. Attach Illinois Schedule NLD to your Form IL-1120-ST. Usetheschedulespecifictoyourtaxyear.
Do not use Illinois Schedule UB/NLD even if you are a member of a unitary business group.
Step 8 — Figure your net replacement tax, surcharge, and pass-through withholding payments you oweLine 53 — EnteryourrecaptureofinvestmentcreditsfromIllinoisSchedule4255,RecaptureofInvestmentTaxCredits,Step4,ColumnC,Line18.IfyouclaimedanIllinoisinvestmenttaxcreditinaprioryearonFormIL-477,ReplacementTaxInvestmentCredits,andanyofthepropertywasdisqualifiedwithin48monthsofbeingplacedinservice,youmustuseIllinoisSchedule4255tocomputetheamountofrecapture.Creditmustberecapturedintheyearthepropertybecamedisqualified.Line 55 —EntertheamountfromFormIL-477,Step1,Line13.Attach Form IL-477 and any other required support listed on Form IL-477 to your Form IL-1120-ST.Youmayclaimareplacementtaxinvestmentcreditof.5percent(.005)ofthebasisofqualifiedpropertyplacedinserviceinIllinoisduringthetaxyear.Anadditionalcreditofupto.5percent(.005)ofthebasisofqualifiedpropertyisavailableifyourIllinoisbaseemploymentincreasedby1percent(.01)ormoreovertheprecedingyearorifyourbusinessisnewtoIllinois.Excesscreditmaybecarriedforwardforfiveyearsfollowingtheexcesscredityear.Formoreinformation,seeFormIL-477instructions.Line 57 — CompassionateUseofMedicalCannabisPilotProgramActsurcharge.
DefinitionsOrganization registrant means acorporation,partnership,trust,limitedliabilitycompany(LLC),orotherorganization,thatholdseitheramedicalcannabiscultivationcenterregistrationissuedbytheIllinoisDepartmentofAgricultureoramedicalcannabisdispensaryregistrationissuedbytheIllinoisDepartmentofFinancialandProfessionalRegulation.Transactions subject to the surcharge means salesandexchangesof • capitalassets; • depreciablebusinessproperty; • realpropertyusedinthetradeorbusiness;and • Section197intangiblesofanorganizationregistrant.
What is the surcharge?ForeachtaxableyearbeginningorendingduringtheCompassionateUseofMedicalCannabisPilotProgram,asurchargeisimposedonalltaxpayersonincomearisingfromthetransactionssubjecttothesurchargeofanorganizationregistrantundertheCompassionateUseofMedicalCannabisPilotProgramAct.Theamountofthesurchargeisequaltotheamountoffederalincometaxliabilityforthetaxableyearattributabletothetransactionssubjecttothesurcharge.ForanScorporation,thiswouldbeataxonbuilt-ingainrealizedonthetransaction.
To whom does the surcharge apply?Thesurchargeisimposedonanytaxpayerwhoincursafederalincometaxliabilityontheincomerealizedona“transactionsubjecttothesurcharge,”includingindividualsandothertaxpayerswhoarenotthemselvesthe“organizationregistrant”thatengagedinthetransaction.AlinehasbeenincludedonSchedulesK-1-PandK-1-TtoidentifytheamountoffederalincomeattributabletotransactionssubjecttothesurchargethatwaspassedthroughtoyouonfederalScheduleK-1.
How do I figure the surcharge?Ifthesurchargeappliestoyou,completetheCompassionateUseofMedicalCannabisPilotProgramActsurchargeWorksheetatthebottomofpage10.Formoreinformation,seeIllinoisIncomeTaxRegulations,Section100.2060.Line 58 — Completeall sectionsofIllinoisScheduleBandentertheamountfromIllinoisScheduleB,SectionA,Line9onthisline.Thisistheamountofpass-throughwithholdingpaymentsyouoweonbehalfofyourmembers.Attach Illinois Schedule B to your Form IL-1120-ST. See“DefinitionstohelpyoucompleteyourFormIL-1120-ST”intheseinstructionsformoreinformation.
DonotincludeonLine58anypass-throughwithholdingpaymentsreported to youonSchedule(s)K-1-PorK-1-T.Pass-throughwithholdingpaymentamountsreportedtoyouareincludedonStep9,Line60c.
Step 9 — Figure your refund or balance dueLine 60a —Entertheamountofanyoverpaymentfromyourprioryeartaxreturnsthatyourequestedtobeappliedtothisyear’staxreturn.Takeintoaccountanycorrespondencewemayhavesentyouthatchangedtheamountofyourcreditcarryforwardfromthepreviousyear.Line 60b — EntertheamountofIllinoisreplacementtaxpaidwithFormIL-505-B.Do notreportamountspaidwithFormIL-516-IorFormIL-516-Bonthisline.ThoseamountsarereportedonLines60eand60f.
IfyoumadeapaymentonFormIL-1120-ES,enterthatamountonLine60b.InthefutureuseFormIL-516-IorFormIL-516-Btomakevoluntaryprepayments.Line 60c — EntertheamountyouwishtoclaimofIllinoispass-throughwithholdingpaymentsreportedtoyoubypartnerships,Scorporations,ortrustsonSchedule(s)K-1-PorK-1-T.Ifyouhave
Compassionate Use of Medical Cannabis Pilot Program Act Surcharge Worksheet
1 Enteryourfederalincometaxliabilityforthetaxableyear. 1 _________________
2 Enteryourfederalincometaxliabilityforthetaxableyearcomputedasiftransactionssubjecttothe surchargemadeinthatyearhadnotbeenmadebytheorganizationregistrant. 2 _________________
3 SubtractLine2fromLine1.ThisisyourCompassionateUseofMedicalCannabisPilotProgramAct surcharge.EntertheresulthereandonFormIL-1120-ST,Step8,Line57. 3 _________________
IL-1120-ST Instructions (R-06/18) Page 11 of 19
receivedmorethanoneScheduleK-1-PorK-1-T,addtheamountsyouwishtoclaimfromalltheschedulesandenterthetotalonLine60c.Attach copies of the Schedules K-1-P and K-1-T you received from the pass-through entities to your Form IL-1120-ST. See“DefinitionstohelpyoucompleteyourFormIL-1120-ST”intheseinstructionsformoreinformation.
DonotincludeonLine60canypass-throughwithholdingpaymentsyou oweonbehalfofyourmembers.Pass-throughwithholdingpaymentsyouoweonbehalfofyourmembersareincludedonStep8,Line58.Line 60d — EntertheamountofanyIllinoisgamblingwithholdingshownonFormW-2G.Attach Form W-2G.Line 60e — EnterthetotalamountofvoluntaryprepaymentsyoupaidforthistaxyearwithForm IL-516-I only.Do notreportamountspaidwithFormIL-516-B,FormIL-505-B,orFormIL-1120-EShere.Line 60f — EnterthetotalamountofvoluntaryprepaymentsyoupaidforthistaxyearwithForm IL-516-B only.Do not reportamountspaidwithFormIL-516-I,FormIL-505-B,orFormIL-1120-EShere.Line 63 — Entertheamountofoverpaymentyouelecttobecreditedforward.Yourcreditcarryforwardwillnotbeappliedifyoudonotfileaprocessablereturn.
Yourcreditcarryforwardmaybereducedbyusduetocorrectionswemaketoyourreturn,ortosatisfyanyunpaidtax,penalty,andinterestdueforthisyearoranyotheryear.Ifwereduceyourcreditcarryforward,itmayresultinalate-paymentpenaltyinasubsequentyear.
To which tax year will my credit apply?Ifyour2017returnwasfiled
� on or before the original filing and payment due date of your return,yourcreditwillbeappliedtothenextfulltaxyear,unlessyouelecttoapplythecredittoadifferenttaxyear.
Example 1:Youfileyour2017calendar-yearreturnonMarch1,2018,requestingtoreceiveyouroverpaymentasacredit.March1,2018,fallsbeforetheoriginalfilingandpaymentduedateofthe2018taxyear(March15,2018,forcalendar-yearfilers).Yourcreditwillbeappliedagainstyour2018taxyearliability.
� after the original filing and payment due date of your return, yourcreditwillbeappliedtothenextfulltaxyearinwhichtimely paymentscanbemadeasofthedateyouarefilingthisreturn,unlessyouelecttoapplythecredittoadifferenttaxyear.
Example 2:Youfileyour2017calendar-yearreturnonAugust4,2018,requestingtoreceiveyouroverpaymentasacredit.August4,2018,isaftertheoriginalfilingandpaymentduedateofthe2018taxyear(March15,2018,forcalendar-yearfilers),butisbeforetheoriginalfilingandpaymentduedateofthe2018taxyear(March15,2019,forcalendar-yearfilers).Yourcreditwillbeappliedagainstyour2018taxyearliability.Example 3:Youfileyour2017calendar-yearreturnonApril23,2019,requestingtoreceiveyouroverpaymentasacredit.April23,2019,isaftertheoriginalfilingandpaymentduedateofthe2018taxyear(March15,2019,forcalendar-yearfilers),butisbeforetheoriginalfilingandpaymentduedateofthe2019taxyear(March16,2020,forcalendar-yearfilers).Yourcreditwillbeappliedagainstyour2019taxyearliability.
YoumaycompletetheCreditCarryforwardWorksheetonpage13ifyourequireassistancedeterminingtheyeartowhichyourcreditwillapply.
With what date will my credit apply against my tax liability?Ifyour2017returnwasfiled
� on or before the extended due date of your return(October15,2018,forcalendar-yearfilers),yourcreditisconsideredtobepaidontheoriginalduedateofthisreturn(March15,2018,forcalendar-yearfilers).However,ifalloraportionofyouroverpaymentresultsfrompaymentsmadeaftertheoriginalduedateofthisreturn,thatportionofyourcreditisconsideredtobepaidonthedateyoumadethepayment.
Example 1: Youfileyour2017calendar-yearreturnonorbeforetheextendedduedateofyourreturnrequesting$500beappliedasacredit.Allofyourpaymentsaremadebeforetheoriginalduedateofyourreturn.Yourcreditof$500willbeconsideredtobepaidonMarch15,2018.Example 2: Youfileyour2017calendar-yearreturnonorbeforetheextendedduedateofyourreturnrequesting$500beappliedasacredit.Youroverpaymentincludespaymentsof$400youmadebeforetheoriginalduedateofyourreturn,anda$100paymentyoumadeonJune1,2018.Yourcreditof$400willbeconsideredtobepaidonMarch15,2018.Theremaining$100creditwillbeconsideredtobepaidonJune1,2018.
� after the extended due date of your return,yourcreditisconsideredtobepaidonthedateyoufiledthereturnonwhichyoumadetheelection.
Example 3: Youfileyour2017calendar-yearreturnonDecember1,2018,requesting$500beappliedasacredit.Yourcreditof$500willbeconsideredtobepaidonDecember1,2018,becauseyoufiledyourreturnaftertheextendedduedateofyour2018calendar-yearreturn.
YoumaycompletetheCreditCarryforwardWorksheetonpage13ifyourequireassistancedeterminingwithwhatdateyourcreditwillapply.
Ifyouarefilingyourreturnaftertheextendedduedate,youmayonlyelecttoclaimanoverpaymentcreditforpaymentsreceivedonorbeforethedateyoufiledyourreturn.Anypaymentsmadeafterthedateyoufiledthatreturncanonlybeclaimedasanoverpaymentcreditonasubsequentamendedreturn.May I apply my credit to a different tax year? Yes.Ifyouwishtoapplyyourcredittoataxyearotherthantheoneduringwhichyoufilethisreturn,youmustsubmitaseparaterequestinwritingto:ILLINOIS DEPARTMENT OF REVENUEPO BOX 19004SPRINGFIELD IL 62794-9004
Submityourrequestatthetimeyoufileyourreturn.Do not submityourreturntothisaddress.Yourrequestmustinclude• yourname,• yourFEIN,• thetaxyearofthereturncreatingtheoverpayment,and• thetaxyearyouwishtohavethecreditapply.Ifyoudonotfollowtheseinstructions,yourelectionwillbeconsideredinvalidandwewillnotapplyyourcreditasyourequested.Ifyousubmitavalidrequest,wewillapplyyourcreditasyourequestedandnotifyyou.Oncemade,yourelectiontochangethetaxyeartowhichyourcreditwillapplyisirrevocable.Requestswillbeworkedintheorderwereceivethem.
Page12of19 IL-1120-ST Instructions (R-06/18)
Youmayonlyapplyyourcredittotaxyearsoccurringaftertheyearofthereturncreatingtheoverpayment.Ifyourequesttoapplymorecreditthanourrecordsshowyouhaveavailable,wewillapplythemaximumamountavailableandnotifyyouofthedifference.Lines 64 — Followtheinstructionsontheform.Yourrefundwillnotbeissuedifyoudonotfileaprocessablereturn.
Yourrefundmaybereducedbyustosatisfyanyunpaidtax,penalty,andinterestdueforthisyearoranyotheryear.Line 65 — Directdepositinformation.Ifyouchoosetodeposityourrefunddirectlyintoyourcheckingorsavingsaccount,youmust • Enteryourroutingnumber. • Foracheckingaccount,yourroutingnumbermustbe ninedigitsandthefirsttwodigitsmustbe01through 12or21through32. Thesamplecheckfollowingtheseinstructionshasan exampleofaroutingnumber. • Forasavingsaccount,youmustcontactyour financialinstitutionforyourroutingnumber.• Checktheappropriateboxtoindicatewhetheryouwantyour refunddepositedintoyourcheckingorsavingsaccount.• Enteryouraccountnumber. • Foracheckingaccount,youraccountnumbermay beupto17digits. Thesamplecheckfollowingtheseinstructionshasan exampleofanaccountnumber. • Forasavingsaccount,youmustcontactyour financialinstitutionforyouraccountnumber.Do not useyouraccountandroutingnumbersfromyourcheckingorsavingsaccountdeposit slip.Do notincludeyourchecknumber.Include hyphens,butomitspacesandspecialsymbols.Youmayhaveunusedboxes.
Ifyourfinancialinstitutiondoesnothonoryourrequestfordirectdeposit,wewillsendyouacheckinstead.
WedonotsupportinternationalACHtransactions.WewillonlydepositrefundsintoaccountslocatedwithintheUnitedStates.IfyourfinancialinstitutionislocatedoutsidetheUnitedStates,wewillsendyouacheckinsteadofdepositingyourrefundintoyouraccount.
Line 66 — Followtheinstructionsontheform.Thisisyouramountoftaxduethatmustbepaidinfullif$1ormore.Ifyouarenotpayingelectronically,completeapaymentvoucher,FormIL-1120-ST-V,makeyourcheckormoneyorderpayableto“Illinois Department of Revenue” and attach them to the front of the return.
Ifyouarepayingelectronicallydo notcompleteandattachapaymentvoucher.Youshouldalsoenter the amount you are paying in the box located on the top of Page 1 oftheFormIL-1120-ST.Weencourageyoutoletusfigureyourpenaltiesandinterestandsendyouabillinsteadofdeterminingtheseamountsyourself.Wewillcomputeanypenaltyandinterestdueandnotifyyou.SeeGeneralInformation,“Whatarethepenaltiesandinterest?”
Step 10 — Signature, date, and paid preparer’s informationYoumustsignanddateyourreturn.Ifyoudonotsignyourreturn,itwillnotbeconsideredfiledandyoumaybesubjecttoanonfiler penalty.Ifyoupaysomeonetoprepareyourreturn,theincometaxreturnpreparermustalsosignanddatethereturn,enterthepreparertaxidentificationnumber(PTIN)issuedtothembytheInternalRevenueService,andprovidetheirfirm’sname,address,andphonenumber.IfyouwanttoallowthepaidpreparerlistedinthissteptodiscussthisreturnwiththeDepartment,checkthebox.Thisauthorizationwillallowyourpaidpreparertoansweranyquestionsthatariseduringtheprocessingofyourreturn,calluswithquestionsaboutyourreturn,andreceiveorrespondtonoticeswesend.Theauthorizationwillautomaticallyendnolaterthantheduedateforfilingyour2018taxreturn(excludingextensions).Youmayrevoketheauthorizationatanytimebycallingorwritingus.
IL-1120-ST Instructions (R-06/18) Page13of19
Credit Carryforward Worksheet Step 1: Determine the tax year to which your credit will applyCheckboxAorBandfollowtheinstructionsfortheboxyouchecked.Ifyoudidnotcheckabox,donotcompletethequestion(s)associatedwiththatbox.
A Ifiledmyreturnonorbeforetheoriginalfilingandpaymentduedateofmyreturn.Complete Line 1a only if you checked box A, above.1a Entertheendingdateofthenextfulltaxyear.Thisistheyearyourcreditwillbeapplied tounlessyouelecttoapplyittoadifferentyear. 1a ____/____/_______
Example:• Acalendar-yearfiler,filingareturnonMarch1,2018(whichfallsbeforeMarch15,2018,theoriginalfilingandpaymentduedateforthe2017taxyear),wouldenterthenextfulltaxyearendingdate,12/31/2018.
B Ifiledmyreturnaftertheoriginalfilingandpaymentduedateofmyreturn.Complete Lines 1b through 2b only if you checked box B, above.1b Enterthedateyoufiledthisreturn. 1b ____/____/_______2b Entertheendingdateofthenextfulltaxyearforwhichapaymentmadeonthedateentered onLine1bwouldbeconsideredatimelypayment.Thisistheyearyourcreditwillbeapplied tounlessyouelecttoapplyittoadifferentyear. 2b ____/____/_______
Examples:• Acalendar-yearfiler,filingareturnonAugust4,2018(whichfallsafterMarch15,2018,theoriginalfilingandpaymentduedateforthe2017taxyear,butbeforeMarch15,2019,theoriginalfilingandpaymentduedateforthe2018taxyear),wouldenter12/31/2018onLine2b.
• Acalendar-yearfiler,filingareturnonApril28,2019(whichfallsafterMarch15,2019,theoriginalfilingandpaymentduedateforthe2018taxyear,butbeforeMarch16,2020,theoriginalfilingandpaymentduedateforthe2019taxyear),wouldenter12/31/2019onLine2b.
Step 2: Determine the date that your credit will apply against your tax liabilityCheckboxAorBandfollowtheinstructionsfortheboxyouchecked.Ifyoudidnotcheckabox,donotcompletethequestion(s)associatedwiththatbox.
CreditcarryforwardscalculatedonthisworksheetwillnotbeavailableuntilyourreturnisprocessedbytheDepartment.Yourcreditcarryforwardmaybereducedbyusduetocorrectionswemaketoyourreturn,ortosatisfyanyunpaidtax,penalty,andinterestdueforthisyearoranyotheryear.Ifwereduceyourcreditcarryforward,itmayresultinalate-paymentpenaltyinasubsequentyear.
A Ifiledmyreturnonorbeforetheextendedduedateofmyreturn.Complete Lines 1a through 3a only if you checked box A, above.1a Entertheoriginalduedateforthis2017return. 1a ____/____/_______2a Enterthetotalamountofyouroverpaymentfrompaymentsmadeon or beforethedate enteredonLine1a.Acreditinthisamountwillbeappliedtoyouraccountwiththedate enteredonLine1a. 2a ________________3a Entertheoverpaymentamount(s)andpaymentdate(s)foranypayment(s)youmadeafter thedateenteredonLine1a.Credit(s)intheamount(s)listedbelowwillbeappliedtoyour accountandwillbeconsideredtobepaidonthedateyoumadethepayment.
Overpayment Amount Date of Payment Overpayment Amount Date of Payment Overpayment Amount Date of Payment
$ // $ // $ //
$ // $ // $ //
B Ifiledmyreturnaftertheextendedduedateofmyreturn.Complete Line 1b only if you checked box B, above.1b Enterthedateyoufiledthisreturn.Thedateyouenteristhedatewewillconsideryourcredit tohavebeenpaid. 1b ____/____/_______
Page14of19 IL-1120-ST Instructions (R-06/18)
Apportionment FormulasCertainbusinessesthatderivetheirincomefrominsideandoutsideIllinoisrequireanapportionmentformula.ThefollowingdefinitionswillhelpincompletingStep6.A Business income —SeeGeneralInformation,“Businessincome”under“DefinitionstohelpyoucompleteyourFormIL-1120-ST.”
B Financial organization —Anybank,bankholdingcompany,trustcompany,savingsbank,industrialbank,landbank,safedepositcompany,privatebanker,savingsandloanassociation,buildingandloanassociation,creditunion,currencyexchange,cooperativebank,smallloancompany,salesfinancecompany,investmentcompany,oranypersonownedbyabankorbankholdingcompany.
C Revenue miles —Arevenuemileisthetransportationofonepassenger,oronenettonoffreight,thedistanceofonemile.
D Federally regulated exchange —Afederallyregulatedexchangeis:
aregulatedentityasdefinedin7U.S.C.Sections1a(40)(A),1a(40)(B),or1a(40)(C);
• anexchangeorclearingagencyasdefinedin15U.S.C.Sections78c(a)(1)or78c(a)(23);
• anyentityregulatedunderanysuccessorregulatorystructuretoaregisteredentity,exchange,orclearingagency;or
• anymemberofthesameunitarygroupif50percentormoreofthebusinessreceiptsoftheunitarybusinessgroupforthetaxableyearareattributabletothematching,execution,orclearingoftransactionsconductedbymembersofthegroupdescribedinthefirstthreebulletpointsabove.
What if I am a sales organization?IfyoucheckedtheboxinStep1,LineE,indicatingthatyouareasalescompanyandyourincomeisderivedfrominsideandoutsideIllinois,youmustapportionyourbusinessincomeasfollows:Includegrossreceiptsfromthelicense,sale,orotherdispositionofpatents,copyrights,trademarks,andsimilaritemsofintangiblepersonalpropertyinthenumeratoranddenominatorofyoursalesfactoronlyifthesegrossreceiptsaremorethan50percentofthetotalgrossreceiptsincludedingrossincomeforthistaxyearandeachofthetwoimmediatelyprecedingtaxyears.Donotincludethefollowingitemsofincomeinthenumeratorordenominatorofyoursalesfactor:• dividends;• amountsincludedunderIRCSection78;• subpartFincomeasdefinedinIRCSection952;and• anyitemofincomeexcludedordeductedfrombaseincome.Formoreinformationonwhatshouldbeincludedinthenumeratorordenominatorofyoursalesfactor,seeIllinoisIncomeTaxRegulations,Sections100.3370and100.3380.SalesoftangiblepersonalpropertyareinIllinoisif• thepropertyisdeliveredorshippedfromanywheretoapurchaserinIllinois,otherthantheUnitedStatesgovernment,regardlessoftheFreeonBoard(f.o.b.)pointorotherconditionsofthesale;
• thepropertyisshippedfromIllinoistoanyplaceandthepurchaseristheUnitedStatesgovernment;or
• thepropertyisshippedfromIllinoistoanotherstateandyouarenottaxableinthestateofthepurchaser.
Forradioandtelevisionbroadcasting(includingcableandsatellitebroadcasting),thefollowingsalesareinIllinois:• advertisingrevenuereceivedfromanadvertiserwhoseheadquartersisinIllinois;
• feesreceivedbyabroadcasterfromitsviewersorlistenersin
Illinois;• inthecaseoffeesreceivedbyabroadcasterfromtheproducerorotherownerofthecontentsofaprogram,thepercentageofthefeesequaltothepercentageofthebroadcast’sviewingorlisteningaudiencelocatedinIllinois;or
• inthecaseofapersonwhoownsthecontentsofaprogramandwhoprovidesthecontentstoabroadcasterforafeeorothercharge,thefeesreceivedforthatprogramfromabroadcasterlocatedinIllinois.
Ifthe“saleseverywhere”amountincludesgrossreceiptsfromthelicensing,sale,orotherdispositionofpatents,copyrights,trademarks,andothersimilaritemsofintangiblepersonalproperty,andthereceiptsarenotcoveredbythebroadcastingrules,thenthesereceiptsshouldbeallocatedinIllinoistotheextenttheitemisusedinIllinoisduringtheyearthegrossreceiptsareincludedingrossincome.AnitemisusedinIllinoisif• apatentisemployedinproduction,fabrication,manufacturing,orotherprocessinginIllinoisorifthepatentedproductisproducedinIllinois;
• copyrightedmaterialisprintedorotherpublicationsoriginatedinIllinois;or
• thecommercialdomicileofthelicenseeorpurchaserofatrademarkorotheritemofintangiblepersonalpropertyisinIllinois.
Ifyoucannotdeterminefromyour(orrelatedparty’s)booksandrecordsinwhichstateanitemisused,donotincludethegrossreceiptsfromthatiteminthenumeratororthedenominatorofthesalesfactor.Forsalesoftelecommunicationsservices,thefollowingsalesareinIllinois:• salesoftelecommunicationsservicesoldonacall-by-callbasis,wherethecallbothoriginatesandterminatesinIllinois,orthecalleitheroriginatesorterminatesinIllinoisandthecustomer’sserviceaddressisinIllinois;
• retailsalesofpostpaidtelecommunicationsserviceifthepointoforiginationofthesignalisinIllinois;
• retailsalesofprepaidtelecommunicationsservicewherethepurchaserreceivestheprepaidcardorothermeansofconveyanceatalocationinIllinois;
• chargesimposedatachannelterminationpointinIllinois;• chargesforchannelmileagebetweentwochannelterminationpointsinIllinois;
• chargesforchannelmileagebetweenoneormorechannelterminationpointsinIllinoisandoneormorechannelterminationpointsoutsideIllinois,timesthenumberofchannelterminationpointsinIllinoisdividedbytotalterminationchannels;
• chargesforservicesancillarytosalesofservicesinIllinois.Ifyouprovideancillaryservices,butcannotdeterminewherethesalesoftherelatedservicesarelocated,yoursalesareinIllinoisifyourcustomerisinIllinois;
• accessfeeschargedtoareselleroftelecommunicationforacallthatbothoriginatesandterminatesinIllinois;
• 50percentofaccessfeeschargedtoareselleroftelecommunicationsservicesforaninterstatecallthatoriginatesorterminatesinIllinois;and
• enduseraccesslinecharges,ifthecustomer’sserviceaddressisinIllinois.
Formoreinformation,seeIllinoisIncomeTaxRegulations,Section100.3371.
IL-1120-ST Instructions (R-06/18) Page15of19
IllinoislotterywinningsandproceedsfromsalesorothertransfersofrightstolotterywinningsareinIllinois.Sales,otherthansalesoftangiblepersonalpropertyortelecommunicationsservice,andgrossreceiptsfrombroadcasting,orthelicensing,sale,orotherdispositionofpatents,copyrights,trademarks,andsimilaritemsofintangiblepersonalproperty,orIllinoislotterywinningsorsalesproceeds,areinIllinoisasfollows:• salesorleasesofrealpropertyinIllinois;• leasesorrentalsoftangiblepersonalproperty,totheextentitislocatedinIllinoisduringtherentalperiod;
• interest,netgains,andotheritemsofincomefromintangiblepersonalpropertyreceivedbyataxpayerwhoisadealerinthatpropertyfromacustomerwhoisaresidentofIllinois(forindividuals)orwhoiscommerciallydomiciledinIllinois(forallothercustomers).Ataxpayerwithoutactualknowledgeoftheresidenceorcommercialdomicileofacustomermayusethecustomer’sbillingaddress.
• interest,netgains,andotheritemsofincomefromintangiblepersonalpropertyreceivedbyataxpayerwhoisnotadealerinthatproperty,iftheincome-producingactivityisperformedinIllinoisoriftheincome-producingactivityisperformedinsideandoutsideIllinois,andagreaterproportionoftheincome-producingactivityisperformedinsideIllinoisratherthanoutsideIllinois,basedonperformancecosts;or
• inallothercases,iftheservicesarereceivedinIllinois.Formoreinformation,seeIllinoisIncomeTaxRegulations,Section100.3370.
What if I am a financial organization?IfyoucheckedtheboxinStep1,LineE,indicatingthatyouareafinancialorganizationandyourincomeisderivedfrominsideandoutsideIllinois,crossouttheword“sales”onLines40and41,andwrite“Financialorganization.”OnLine40,entertheamountofgrossreceiptsfromallsources.OnLine41,entertheamountofgrossreceiptsfrom:• salesorleasesofrealpropertylocatedinIllinois;• leasesorrentalsoftangiblepersonalproperty,totheextentitislocatedinIllinoisduringtherentalperiod;
• interestincome,commissions,fees,gainsondisposition,andotherreceiptsfrom:
– loanssecuredbyrealortangiblepersonalproperty locatedinIllinois;
– unsecuredconsumerloanstoaresidentofIllinois; – unsecuredcommercialorinstallmentloanswherethe proceedsoftheloanareappliedinIllinois.Iftheplace ofapplicationcannotbedetermined,thegrossreceipts areinIllinoisiftheofficeoftheborrowerfromwhichthe loanwasnegotiatedisinIllinois.If neither the place of application nor the office of the borrower can be determined, do not include the gross receipts in Lines 40 or 41; and
– creditcardreceivablesbilledtoacustomerinIllinois.• salesoftravelerschecksandmoneyordersatalocationinIllinois;• interest,dividends,netgains,andotherincomefrominvestmentandtradingassetsandactivities,wherethemajorityofyourcontactswiththeassetoractivityisinIllinois.Thestatetowhichanassetoractivityisassignedinyourbooksandrecordsforfederalorstateregulatoryrequirementsispresumedtobeproperunlessamajorityoftheevidenceshowsotherwiseoryoudonothaveafixedplaceofbusinessinthatstate.Iftheplacewiththemajorityofcontactscannotbedeterminedundertheserules,thegrossreceiptsareinIllinoisifyourcommercialdomicileisinIllinois.
• anyothertransaction,ifthegrossreceiptswouldbeincludedonLine41underthegeneralinstructionsforLine41.
Formoreinformation,seeIllinoisIncomeTaxRegulations,Section100.3405.DivideLine41byLine40andentertheresult,roundedtosixdecimalplaces,onLine42.CompleteLines43through46asindicatedinSpecificInstructionsforStep6—FigureyourincomeallocabletoIllinois.
What if I am a transportation company?IfyoucheckedtheboxinStep1,LineE,indicatingthatyouareacompanythatfurnishestransportationservicebothinsideandoutsideIllinois,crossouttheword“sales”onLines40and41andwrite“Transportation.”Youmustapportionbusinessincomeasfollows:A Transportation by airline — OnLine40,entertheamountofrevenuemileseverywhere.OnLine41,entertheamountofrevenuemilesinIllinois.DivideLine41byLine40andentertheresult,roundedtosixdecimalplaces,onLine42.
B Other modes of transportation —OnLine40,entertheamountofyourgrossreceiptsfromprovidingtransportationservices.OnLine41,entertheamountofgrossreceiptsfromIllinois,asfollows:
• allgrossreceiptsfromtransportationthatbothoriginatesandterminatesinIllinois;and
• grossreceiptsfrominterstatetransportation,multipliedbyafractionequaltothemilestraveledinIllinoisonallinterstatetripsdividedbymilestraveledeverywhereonallinterstatetrips.
DivideLine41byLine40andentertheresult,roundedtosix decimalplaces,onLine42.C Transportation of both freight and passengers or
transportation by airline and other modes —ComputeseparatefractionsforfreighttransportationandpassengertransportationbyairlineandforfreighttransportationandpassengertransportationbyallothermodesoftransportationunderAandB,inthelistaboveandenteronLine42theaverageofthosefractions,weightedbythegrossreceiptsfromfreightorpassengertransportationbyairlineorothermodes,roundedtosixdecimalplaces.
Formoreinformation,seeIllinoisIncomeTaxRegulations,Section100.3450.CompleteLines43through46asindicatedinSpecific InstructionsforStep6,FigureyourincomeallocabletoIllinois.
What if I am a federally regulated exchange?IfyoucheckedtheboxinStep1,LineE,indicatingthatyouareafederallyregulatedexchangeandyourincomeisderivedfrominsideandoutsideIllinois,crossouttheword“sales”onLines40and41andwrite“Exchange.”Youmayapportionyourbusinessincomeasfollows:OnLine40,entertheamountofbusinessincomefromallsources.OnLine41,entertheamountofbusinessincomefrom:• receiptsattributabletotransactionsexecutedonaphysicaltradingfloorlocatedinIllinois;
• receiptsattributabletoallothermatching,execution,orclearingtransactions.Thisincludes,withoutlimitation,receiptsfromtheprovisionofmatching,execution,orclearingservicestoanotherentity.
–Multiplythisamountby27.54percent(.2754)fortaxyearsendingonorafterDecember31,2013;and
• allotherreceiptsforsalesinIllinois.DivideLine41byLine40andentertheresult,roundedtosixdecimalplaces,onLine42.CompleteLines43through46asindicatedinSpecificInstructionsforStep6,FigureyourincomeallocabletoIllinois.
Page16of19 IL-1120-ST Instructions (R-06/18)
Foranytaxyear,theIllinoisapportionmentpercentagecomputedusingthisformulamayneverbelessthantheIllinoisapportionmentpercentagecomputedforthefirstfulltaxyearendingonorafterDecember31,2013,forwhichthetaxpayerusedthisformula.
What if I am a member of a unitary business group?Theterm“unitarybusinessgroup”meansagroupofpersonsrelatedthroughcommonownership,whosebusinessactivitiesareintegratedwith,dependenton,andcontributetoeachother.Inthecaseofacorporation,commonownershipisdefinedasthedirectorindirectownershiporcontrolofmorethan50percentoftheoutstandingvotingstockofacorporation.Ifyoudeterminethatyouareamemberofaunitarybusinessgroup,seeIllinoisScheduleUBformoreinformationregardingyourIllinoisfilingrequirementsandthecomputationofyourIllinoistaxliability.OncetheIllinoisScheduleUBhasbeencompleted,youmustapportionyourbusinessincomeasfollows:OnLine40,enterthe“everywhere”salesfactoroftheentireunitarybusinessgroupfromIllinoisScheduleUB,Step4,Line2,ColumnD.OnLine41,enteronlyyourIllinoissales(includingyourshareofsalesofanyunitarypartnershipsinwhichyouareapartner).OnLines44and45,enteryourownnonbusinessincomeandtheIllinoisportionofbusinessincomefromnon-unitarypartnershipsorpartnershipsincludedonaScheduleUBinwhichyouareapartner,Scorporationsinwhichyouareashareholder,orfromtrustsorestatesofwhichyouareabeneficiary.
What if I want to use an alternative apportionment formula?IftheapportionmentmethodsprescribedbyIITA,Sections304(a)through(d),and(h)donotfairlyandaccuratelyrepresentthemarketforyourgoods,services,orothersourcesofbusinessincome,orleadtoagrosslydistortedresult,youmaywanttouseamoreaccuratealternativemethod.Ifyouwanttouseanalternativeapportionmentmethod,youmust receivepermissionfromIDORprior tofilingyourreturn.
YourrequestforanalternativeapportionmentformulamustfollowtherequirementoftheIllinoisIncomeTaxRegulations,Section100.3390.SeetheregulationsorcontacttheDepartmentformoreinformation.Ifyoureceivepermissiontouseanalternativeformula,youmustattachtoyourFormIL-1120-STacopyofthelettergrantingpermission.Sendyourrequestto: ILLINOIS DEPARTMENT OF REVENUE LEGAL SERVICES OFFICE SENIOR COUNSEL - INCOME TAX, 5-500 101 WEST JEFFERSON STREET SPRINGFIELD IL 62702
IL-1120-ST Instructions (R-06/18) Page17of19
General InformationRead this information before completing Illinois Schedule B. AmountslistedontheSchedule(s)K-1-PandSchedule(s)K-1-P(3)youcompletearecarriedtoyourIllinoisScheduleBandthenreportedonyourFormIL-1120-STorFormIL-1065.Therefore,youmustcompleteSchedule(s)K-1-PandSchedule(s)K-1-P(3)before completingScheduleB.
InordertoensureyoucompleteScheduleBcorrectly,dothefollowinginorder:
� CompleteallSchedule(s)K-1-PandSchedule(s)K-1-P(3),asapplicable,foryourmembersbeforecompletinganysectionofIllinoisScheduleB.TheinformationreportedonSchedule(s)K-1-PandSchedule(s)K-1-P(3)willbeusedtocompleteIllinoisScheduleB.SeeScheduleK-1-P(1)formoreinformation.
� CompleteSectionBofIllinoisScheduleBbeforecompletingSectionAofIllinoisScheduleB.SectionBreportsspecificamountsfromeachScheduleK-1-PandScheduleK-1-P(3)youcompleted.SectionBisrequiredtobecompletedinfullinordertoavoidprocessingdelays,furthercorrespondence,ordelaysintheprocessingofanyoverpayments.
� CompleteSectionAoftheIllinoisScheduleB.SectionAreportstotalamountsfromSectionB,andisrequiredtobecompletedinfullinordertoavoidprocessingdelays,furthercorrespondence,ordelaysintheprocessingofanyoverpayments.
� CarrytheamountfromIllinoisScheduleB,SectionA,Line3andLine9toyourFormIL-1120-STorFormIL-1065,asapplicable.
SeetheScheduleK-1-P(1)instructionsandIllinoisScheduleBspecificinstructionsformoreinformation.
What is the purpose of Illinois Schedule B?ThepurposeofIllinoisScheduleB,Partners’orShareholders’Information,isforyoutoidentifyanypersonwhowasapartnerorshareholderatanytimeduringyourtaxyear.
TheIllinoisScheduleBalsoallowsyoutoidentifyyourpartnersorshareholdersthataresubjecttotheIllinoisPersonalPropertyTaxReplacementIncomeTaxandtofiguretheshareofdistributableincomeorlossthatistobeaddedtoorsubtractedfromyourbaseincome.
Inaddition,FormIL-1023-CandFormIL-1000havebeeneliminatedfortaxyearsendingonorafterDecember31,2014.TheamountsthatwouldhavebeenreportedonbehalfofyourmembersontheseformsmustbereportedonyourIllinoisScheduleB.TheIllinoisScheduleBhasbeenredesignedfortaxyearsendingonorafterDecember31,2014,toreportcertainitemsofincomeandcreditsreportedtoyourpartnersorshareholders,andpass-throughwithholdingpaymentsmadeonbehalfofyournonresidentpartnersorshareholders.Foradefinitionofresidentandnonresidentpartnersorshareholderssee“Whatisaresident”and“Whatisanonresident?”below.
Is Schedule B required?Yes.Youarerequiredtohaveacopyofthisformonfile.Youmust attachacopytoyourFormIL-1065,IllinoisPartnershipReplacementTaxReturn,oryourFormIL-1120-ST,IllinoisSmallBusinessCorporationReplacementTaxReturn,tosupporttheadditionmodificationclaimedonFormIL-1065,Step4,Line21orFormIL-1120-ST,Step4,Line20,orthesubtractionmodificationclaimedonFormIL-1065,Step5,Line27,orFormIL-1120-ST,Step5,Line24.
Inaddition,IllinoisScheduleBhasreplacedFormIL-1023-CandFormIL-1000fortaxyearsendingonorafterDecember31,2014,andsupportstheamountreportedonFormIL-1065,Step8,Line59,andFormIL-1120-ST,Step8,Line58,aspass-throughwithholdingpaymentsyouoweonbehalfofyournonresidentmembers.Therefore,youmustfollowtheinstructionsforIllinoisScheduleB,completeitinfull,andattachittoyourreturn.
YoumustuseformsprescribedbytheIllinoisDepartmentofRevenue.SeparatestatementsnotonformsprovidedorapprovedbytheDepartmentwillnotbeacceptedandyouwillbeaskedforappropriatedocumentation.Failure to comply with this requirement may delay the processing of your return or the generation of any overpayment.Additionally,failuretosubmitappropriatedocumentationwhenrequestedmayresultinareferraltoourAuditBureauforcomplianceaction.
Partnerships and S corporations must complete Illinois Schedule B. Donotsendacomputerprintoutwithlinenumbersanddollaramountsattachedtoablankcopyoftheschedule.Computergeneratedprintoutsarenotacceptable,eveniftheyareinthesameformatastheDepartment’sforms.ComputergeneratedformsfromaDepartment-approvedsoftwaredeveloperareacceptable.
What is a resident?Aresidentis
• anindividualwhoispresentinIllinoisforotherthanatemporaryortransitorypurpose;
• anindividualwhoisabsentfromIllinoisforatemporaryortransitorypurposebutwhoisdomiciledinIllinois;
• theestateofadecedentwhoathisorherdeathwasdomiciledinIllinois;
• atrustcreatedbyawillofadecedentwhoathisorherdeathwasdomiciledinIllinois;or
• anirrevocabletrust,whosegrantorwasdomiciledinIllinoisatthetimethetrustbecameirrevocable.Forpurposesofthisdefinition,atrustisirrevocabletotheextentthatthegrantorisnottreatedastheownerofthetrustunderInternalRevenueCode(IRC)Sections671through678.
What is a nonresident?Anonresidentisapersonwhoisnotaresident,aspreviouslydefined.Corporations,Scorporations,partnerships,andexemptorganizationsareconsiderednonresidentsforpurposesofIllinoisScheduleB.
What do Section B, Columns G through J report?ColumnsGthroughJreportcertainitemsofincome,credits,andpass-throughwithholdingpaymentsyoureportedtoyournonresidentmembersontheScheduleK-1-Pyouissuedtothem.
How do I determine the amounts to report in Section B, Columns G through J?BeforecompletingIllinoisScheduleByoumustcompleteSchedule(s)K-1-PandSchedule(s)K-1-P(3)foreachofyournonresidentmembers,asapplicable.TheamountsreportedonthosescheduleswillbeusedtocompleteIllinoisScheduleB,SectionB,ColumnsGthroughJ.
SeeScheduleK-1-P(1)forinstructionsandmoreinformationaboutScheduleK-1-P(3).
Illinois Schedule B Instructions
Page18of19 IL-1120-ST Instructions (R-06/18)
Specific InstructionsSection A: Total members’ information
CompleteSchedule(s)K-1-PandSchedule(s)K-1-P(3), asapplicable,andallofIllinoisScheduleB,SectionB,beforecompletingSectionA.
IllinoisScheduleB,SectionAshouldbecompletedusingthetotalsfromIllinoisScheduleB,SectionB.WhenyousubmityourreturnyoushouldonlyattachasinglepageofSectionA.IfyourequiremultiplepagesofSectionB,youmayattachasmanypagesofSectionBasrequiredbehindSectionA.
Lines 1 through 3 — Reportamountsforboth resident and nonresident members.
Line 1 — AddtheamountsyoureportedonStep3,ColumnA,Line10throughLine19,ofalltheSchedule(s)K-1-Pyouissuedtoyourpartnersorshareholdersandenterthetotalhere.Includeamountsyoureportedtobothyourresidentandnonresidentmembers.
Line 2 —AddtheamountyoureportedonStep7,Line52athroughLine52n,ofalltheSchedule(s)K-1-Pyouissuedtoyourpartnersorshareholdersyouissuedtoyourpartnersorshareholdersandenterthetotalhere.Includeamountsyoureportedtobothyourresidentandnonresidentmembers.
Line 3 —AddtheamountsshowninSectionB,ColumnEforallthepartnersorshareholdersforwhichyouhavecheckedtheboxinSectionB,ColumnD.
Donotinclude
• partnersorshareholdersthatareidentifiedasindividualsorestatesinSectionB,ColumnB,or
• grantortrustsorotherdisregardedentitieswhosegrantororownerisanindividualorestate.
Enterthetotalamountonthisline.Ifthisisa
• positiveamount,enterthisamountonyourFormIL-1065,Line27orFormIL-1120-ST,Line24.
• negativeamount(loss),enterthisamountasapositiveamountonyourFormIL-1065,Line21orFormIL-1120-ST,Line20.
Lines 4 through 9 — Reportamountsfornonresident members only.
Line 4 —Enterthetotalamountofpass-throughwithholdingpaymentsyoureportedontheSchedule(s)K-1-Pyouissuedtoyournonresident individual members only.TotaltheamountsreportedinSectionB,ColumnJ,formembersthatareidentifiedwithan“I”inSectionB,ColumnB,andenterithere.
Line 5 —Enterthetotalamountofpass-throughwithholdingpaymentsyoureportedontheSchedule(s)K-1-Pyouissuedtoyournonresident estate members only.TotaltheamountsreportedinSectionB,ColumnJ,formembersthatareidentifiedwithan“M”inSectionB,ColumnB,andenterithere.
Line 6 —Enterthetotalamountofpass-throughwithholdingpaymentsyoureportedontheSchedule(s)K-1-Pyouissuedtoyourpartnership and S corporation members only.TotaltheamountsreportedinSectionB,ColumnJ,formembersthatareidentifiedwitha “P”or“S”inSectionB,ColumnB,andenterithere.
Line 7 —Enterthetotalamountofpass-throughwithholdingpaymentsyoureportedontheSchedule(s)K-1-Pyouissuedtoyournonresident trust members only.Includemembersidentifiedasanexemptorganization(trust).TotaltheamountsreportedinSectionB,ColumnJ,formembersthatareidentifiedwitha“T”or“A”inSectionB,ColumnB,andenterithere.
Line 8 —Enterthetotalamountofpass-throughwithholdingpaymentsyoureportedontheSchedule(s)K-1-PyouissuedtoyourC corporation members only.Includemembersidentifiedasanexemptorganization(corporation).Totaltheamountsreportedin
SectionB,ColumnJ,formembersthatareidentifiedwitha“C”or“N”inSectionB,ColumnB,andenterithere.
Line 9 —AddSectionA,Lines4through8ofthisIllinoisScheduleBandenterthisamounthereandonFormIL-1065,Line59orFormIL-1120-ST,Line58.TheamountonLine9shouldmatchthetotalamountfromScheduleB,SectionB,ColumnJforallnonresidentmembersonallpages.
IfyoucompletedmultiplepagesofSectionB,completeSectionAonetimereportingthetotalsfromallpagesofSectionB.PlaceallpagesofSectionBbehindthesinglepageofSectionA,andattachthemtoyourreturn.
Section B: Members’ information Lines 1 through 5 — Column A —Enterthenameandaddressofeachpartnerorshareholder.Usethefollowingexamplesasaguide.
If the partner or shareholder is an individual,usethefollowingformats:
JohnDoe JohnandMaryDoe JohnDoe
111W.MainStreet 111WMainStreet %MaryDoe
Anytown,IL62666 Anytown,IL62666 111WMainSt.#5A
Anytown,IL62666
If the partner or shareholder is a trust or an estate, usethefollowingformats:
JohnDoeBankruptcyTrust EstateofJohnDoe
%MaryDoe,Trustee 111WMainSt.,Ste4A
111WMainStreet,Suite4A Anytown,IL62666
Anytown,IL62666
If the partner or shareholder is a corporation (including S corporations), or a partnership,usethefollowingformats:
IllinoisBigBusinessGroup IllinoisSmallBusinessGroup
%JohnDoe,VPFinance %MaryDoe
111WestMainStreet,Suite4 111WestMainStreet
Anytown,IL62666 Anytown,IL62666
Column B —Indicatethetypeofeachpartner’sorshareholder’sorganization.Enter
• “I”forindividual • “S”forScorporation
• “P”forpartnership • “A”forexemptorganization(trust)
• “M”forestate • “N”forexemptorganization
• “T”fortrust (corporation)
• “C”forCcorporation
Ifthispartnerorshareholderisagrantortrustorotherdisregardedentity,entertheletterthatcorrespondstothetaxtypeofthegrantororowner.
Column C —EntertheentireSocialSecuritynumber(SSN)orfederalemployeridentificationnumber(FEIN)ofeachpartnerorshareholder.
IfthepartnerorshareholderisaforeignentityanddoesnothaveanSSNorFEIN,leavethiscolumnblankforthatpartnerorshareholder.Ifyouleavethiscolumnblank,youmaybecontactedforfurtherinformation.
Column D —ChecktheboxifthepartnerorshareholderissubjecttotheIllinoisPersonalPropertyTaxReplacementIncomeTaxorisanexemptorganization(includinganEmployeeStockOwnershipPlan(ESOP)).Individuals,estates,orgrantortrustsandotherdisregardedentitieswhosegrantorsorownersareindividualsorestatesarenot subjecttothistax.
Column E —Enterthetotalamountofbaseincomeorlossdistributabletothispartnerorshareholder,usingtheColumnEWorksheet.EntertheamountfromColumnEWorksheet,Line5,here.
IL-1120-ST Instructions (R-06/18) Page 19 of 19
ThetotalofalltheamountsinColumnEmustequalyourtotalbaseincome,computedwithoutregardtotheadditionclaimedonyourFormIL-1065,Step4,Line21,orFormIL-1120-ST,Step4,Line20orthesubtractionclaimedonyourFormIL-1065,Step5,Lines26and27orFormIL-1120-ST,Step5,Line24.
Column F —Ifthepartnerorshareholderwasexcludedfrompass-throughwithholdingpaymentsindicatethereasonbyentering
•“R”ifthepartnerorshareholderisanIllinoisresident,
•“E”ifthepartnerorshareholderprovidedyouaFormIL-1000-E,CertificateofExemptionforPass-throughWithholdingPayments,indicatingthattheywouldpaytheirowntaxliability,or
PartnersorshareholderswhoprovideyouaFormIL-1000-Emustnotbeindividualtaxpayers.
• “N”ifthepartnerorshareholderwasanexemptorganizationandyoudidnotmakepass-throughwithholdingpaymentsontheirbehalf.
Taxpayersarenotrequiredtomakepass-throughwithholdingpaymentsonbehalfoftheirexemptorganizationmembers,butmaydosofortaxyearendingonorafterDecember31,2014.
Ifyouelectedtomakepass-throughwithholdingpaymentsonbehalfofanexemptorganizationmember,leavethiscolumnblankforthatmemberandcompleteColumnsGthroughJ.
Columns G through J—ProvidethefollowinginformationfromtheSchedule(s)K-1-PandSchedule(s)K-1-P(3)youcompletedforeachmemberlisted.
Column G—EntertheamountyoureportedonStep3,Line12,oftheScheduleK-1-P(3)youcompletedforthismember.Thisamountisthismember’sshareofIllinoisincomesubjecttopass-throughwithholding.
Thisamountisadollaramount.Donotlistapercentageinthiscolumn.
Column H—TotaltheamountyoureportedonStep3,Line13,andStep3,Line16,oftheScheduleK-1-P(3)youcompletedforthismember.EnterthatamountonColumnHforthismember.Thisamountisthismember’spass-throughwithholdingbeforecredits.
Column I—TotaltheamountyoureportedonStep3,Line14,andStep3,Line17,oftheScheduleK-1-P(3)youcompletedforthismember.EnterthatamountonColumnIforthismember.Thisamountisthismember’sdistributableshareofcredits.
Column J —Entertheamountofpass-through withholding paymentsthatyoumadeonbehalfofeachpartnerorshareholderandreportedtothemonScheduleK-1-P,Step7,Line54.
ThisshouldmatchtheamountreportedonStep3,Line19,oftheScheduleK-1-P(3)youcompletedforthismember.
Ifyouhavemorethanfivepartnersorshareholderstoreport,andadditionalspaceisneeded,completeandattachadditionalpagesofIllinoisScheduleB,SectionB.AfteryouhavecompletedSectionB,listingallrequiredamountsforyourmembers,completethesinglepageofIllinoisScheduleB,SectionA.
Column E WorksheetCompletethisworksheetforeachpartnerorshareholder.
1 EntertheshareofincomefromFormIL-1065orFormIL-1120-ST,Line14forthispartner orshareholder. 1 _________________
2 Entertheshareofadditionsdistributabletothispartnerorshareholderfrom FormIL-1065,Lines15through20andLine22or FormIL-1120-ST,Lines15through19andLine21. 2 _________________
3 AddLines1and2. 3 _________________
4 Entertheshareofsubtractionsdistributabletothispartnerorshareholderfrom FormIL-1065,Lines24through25and28through33or FormIL-1120-ST,Lines23and25through33. 4 _________________
5 SubtractLine4fromLine3.IfLine3isgreaterthanLine4(income), EntertheresultasapositiveamountinColumnEforthispartnerorshareholder. IfLine4isgreaterthanLine3(loss),entertheresultasanegativeamountin ColumnEforthispartnerorshareholder. 5 _________________