2000 Income Tax Letter Rulings

General Information Letters

Ruling	Date	Subject	Synopsis
IT 00-0097-GIL	12/29/2000	Public Law 86-272/Nexus Withholding - Other Rulings	General Information Letter: General guidance for determination of whether taxpayer performing services in Illinois has nexus for income tax purposes and whether taxpayer is required to withhold Illinois income tax from wages paid to employees.
IT 00-0096-GIL	12/28/2000	Apportionment - Other Rulings	General Information Letter: Response to survey on adoption of MTC regulations.
IT 00-0095-GIL	12/21/2000	Base Income	General Information Letter: Investment income of an insurer is generally included in base income only to the extent it is included in federal adjusted gross income of the insurer.
IT 00-0094-GIL	12/06/2000	Definitions	General Information Letter: A single-member limited liability company that elects to be treated as a corporation for federal income tax purposes is a corporation for Illinois income tax purposes, and a single-member limited liability company that elects to have its existence disregarded will be disregarded for Illinois income tax purposes.
IT 00-0093-GIL	11/30/2000	Withholding - Other Rulings	General Information Letter: The principles for determining when compensation is paid in this State for withholding purposes are the same as those for determining when compensation is paid in this State for payroll factor purposes.
IT 00-0092-GIL	11/27/2000	Withholding	General Information Letter: In general, an employer must withhold Illinois income tax from compensation paid in Illinois if federal income tax must be withheld from the compensation.
IT 00-0091-GIL	11/22/2000	Estimated Tax	General Information Letter: An overpayment shown on a return and which the taxpayer properly elects to credit against the subsequent year's estimated tax liability will be treated as a timely payment of the first quarterly installment of estimated taxes due in that subsequent year.
IT 00-0090-GIL	11/13/2000	Subtraction Modifications - Other Rulings	General Information Letter: Interest on bonds issued by Illinois agencies is exempt only if expressly provided by statute.
IT 00-0089-GIL	11/13/2000	Refunds - Statute of Limitations	General Information Letter: In general, refund claims for overpayment of withheld taxes must be filed no later than 3 years after the 15th day of the 4th month after the end of the year in which withheld.
IT 00-0088-GIL	10/26/2000	Subtraction Modifications - Enterprise Zones and Foreign Trade Zones	General Information Letter: Dividends paid by a Subchapter S corporation do not qualify for the subtraction for dividends received from an enterprise zone.
IT 00-0087-GIL	10/26/2000	Net Income ()Loss) and Net Loss Deduction	General Information Letter: Corporation succeeding to tax the attributes of an acquired corporation under IRC Section 381 succeeds to Illinois net loss carryforwards of the acquired corporation.
IT 00-0086-GIL	10/26/2000	Miscellaneous	General Information Letter: No Homeowners' Property Tax Relief rebate is payable to individual who was not eligible for a residential property tax credit for 1999.
IT 00-0085-GIL	10/25/2000	Signature	General Information Letter: Tax return preparers may not submit a photocopy signature on returns.
IT 00-0084-GIL	10/24/2000	Refunds - Other Rulings	General Information Letter: Checks not payable to the Department and not equal to the amount of money owed must be returned to the taxpayer within 15 days of receipt.
IT 00-0083-GIL	10/23/2000	Exemptions	General Information Letter: Individuals are entitled to one exemption for each dependent allowed on their federal income tax returns.
IT 00-0082-GIL	10/19/2000	Credits - Other Rulings	General Information Letter: The credit for taxes paid to another state cannot exceed the Illinois tax payable on the amount of income that is actually double taxed.
IT 00-0081-GIL	10/18/2000	Public Law 86-272/Nexus	General Information Letter: A corporation created under Illinois law is not protected from Illinois income tax by Public Law 86-272.
IT 00-0080-GIL	10/16/2000	Public Law 86-272/Nexus	General Information Letter: Debt collection services are not protected by Public Law 86-272.
IT 00-0079-GIL	10/10/2000	Withholding - Exemptions	General Information Letter: The basic amount for exemptions increased for 2000.
IT 00-0078-GIL	10/10/2000	Miscellaneous	General Information Letter: No Homeowners' Property Tax Relief rebate is payable to individual who was not eligible for a residential property tax credit for 1999.
IT 00-0077-GIL	10/06/2000	Collection	General Information Letter: Innocent spouse relief may be appropriate to avoid offset of rebate payment against liability of spouse.
IT 00-0076-GIL	10/03/2000	Withholding - Employee Benefits	General Information Letter: Response to general questions regarding withholding from pension plan contributions and distributions.
IT 00-0075-GIL	10/02/2000	Penalty and Interest Act	General Information Letter: The late payment penalty for returns due on or after January 1, 2001, will change from 20% to a graduated rate based on the lateness of the payment.
IT 00-0074-GIL	09/28/2000	Penalties - Failure to Pay	General Information Letter: Imposition of penalty for failure to pay taxes in years prior to UPIA discussed.
IT 00-0073-GIL	09/25/2000	Subtraction Modifications - Pensions	General Information Letter: Military pensions are exempt from Illinois income taxation.
IT 00-0072-GIL	09/21/2000	Collection	General Information Letter: Statute of limitations for collection of assessed tax is discussed.
IT 00-0071-GIL	09/20/2000	Base Income	General Information Letter: Response to survey regarding exclusion of income or gain on like-kind exchanges.
IT 00-0070-GIL	09/15/2000	Administrative Review	General Information Letter: Foreign corporation that has withdrawn from doing business in Illinois may utilize administrative procedures before the Department of Revenue.
IT 00-0069-GIL	09/13/2000	Public Law - 86-272/Nexus	General Information Letter: General principles for determination of nexus are discussed.
IT 00-0068-GIL	09/13/2000	Subtraction Modifications - Interest on U.S. Government Obligations	General Information Letter: The subtraction modification allowed for interest on U.S. government obligations is net of bond premium amortization, but is not reduced for expenses allocable to such income.
IT 00-0067-GIL	09/12/2000	Apportionment - Sales Factor	General Information Letter: Proceeds from settlement of lawsuits for infringement of intellectual property rights in materials used in training seminars are business income and should be included in the sales factor as provided in IITA Section 304(a)(3)(B-1) and (B-2).
IT 00-0066-GIL	09/11/2000	Estimated Tax	General Information Letter: An individual may take the education expense credit into account in determining his or her required estimated tax installment.
IT 00-0065-GIL	09/11/2000	Withholding - Other Rulings	General Information Letter: Former employer is required to withhold Illinois income tax from payments made to retired employee under nonqualified pension plan.
IT 00-0064-GIL	08/28/2000	Information Reports	General Information Letter: The federal employer identification number of the State of Illinois should be used as the "state identification number" on federal tax forms requiring such number.
IT 00-0063-GIL	08/24/2000	Professional Athletes	General Information Letter: Compensation paid to a nonresident professional athlete by a team based outside Illinois is apportionable to Illinois only if the state in which the team is based taxes a portion of the compensation of nonresident athletes paid by Illinois-based teams.
IT 00-0062-GIL	08/21/2000	Credits - Foreign Tax	General Information Letter: The foreign tax credit allowed may not exceed the amount of Illinois income tax imposed on the income that is actually double taxed.
IT 00-0061-GIL	08/15/2000	Apportionment - Sales Factor	General Information Letter: Corrects the discussion in IT 00-0049 GIL, concluding that the sales factor cannot be negative.
IT 00-0060-GIL	08/14/2000	Returns - Other Rulings	General Information Letter: All Illinois income tax returns must be signed.
IT 00-0059-GIL	08/11/2000	Estimated Tax	General Information Letter: 49 U.S.C. § 11108, which provides that state income tax need not be withheld from wages payable to certain employees engaged in interstate shipping by boat, does not exempt those employees from their obligation under IITA Section 803 to pay estimated Illinois income tax.
IT 00-0058-GIL	08/09/2000	Base Income	General Information Letter: Income attributable to employer-provided housing is included in base income only to the extent included in adjusted gross income of the employee.
IT 00-0057-GIL	08/07/2000	Returns - Requirements to File	General Information Letter: Corporation with no Illinois net income and that is not required to file a federal income tax return has no obligation to file an Illinois income tax return.
IT 00-0056-GIL	07/28/2000	Confidentiality	General Information Letter: IITA Section 917 generally prohibits disclosure of taxpayer information.
IT 00-0055-GIL	07/24/2000	Returns - Requirement to File	General Information Letter: Under IITA Section 502(a), a corporation qualified to do business in Illinois and required to file a federal income tax return for a taxable year is also required to file an Illinois income tax return for that year.
IT 00-0054-GIL	07/14/2000	Confidentiality	General Information Letter: Under 20 ILCS 2505/2505-425, the name of the president of a delinquent corporate taxpayer may be disclosed along with the name of the corporation.
IT 00-0053-GIL	07/06/2000	Taxable Year	General Information Letter: A corporation with a short federal taxable year is required to use the same federal taxable year for Illinois income tax purposes.
IT 00-0052-GIL	07/05/2000	Subtraction Modifications - Pensions	General Information Letter: IRA distributions to heir are includable in gross income under IRC Section 408(d) and therefore qualify for subtraction from base income under IITA Section 203(a)(2)(F).
IT 00-0051-GIL	07/05/2000	Miscellaneous	General Information Letter: Response to Wisconsin Department of Revenue questionnaire on Illinois income tax rate and base.
IT 00-0050-GIL	06/27/2000	Information Reports	General Information Letter: Lottery winners who receive a single federal Form W-2G should also receive a single Form IL-W-2G reporting the same winnings.
IT 00-0049-GIL	06/12/2000	Apportionment - Sales Factor	General Information Letter: The sales factor cannot be negative.
IT 00-0048-GIL	06/12/2000	Public Law 86-272/Nexus	General Information Letter: The Department does not ordinarily give binding rulings on the existence of nexus with a particular taxpayer.
IT 00-0047-GIL	06/06/2000	Refunds - Other Rulings	General Information Letter: Requests for refund must be made by filing of a proper claim.
IT 00-0046-GIL	06/05/2000	Credits - Replacement Tax Investment	General Information Letter: A bank is not a "retailer" for purposes of the replacement tax investment credit.
IT 00-0045-GIL	05/24/2000	Partnerships	General Information Letter: Nonresident partners allocate to Illinois their partnership shares of the business income of the partnership apportioned to Illinois by the partnership.
IT 00-0044-GIL	05/18/2000	Withholding - Other Rulings	General Information Letter: Illinois income tax is not required to be withheld from retirement income exempt from Illinois taxation, but may be withheld at the request of the recipient. No information return filing is required.
IT 00-0043-GIL	05/18/2000	Confidentiality	General Information Letter: 20 ILCS 2505/39b54 permits the Department to publish the names of presidents of corporations that are delinquent in paying final tax liabilities, in addition to publishing the names of the corporations.
IT 00-0042-GIL	05/15/2000	Alternative Apportionment	General Information Letter: Petition for alternative apportionment under IITA Section 304(f) denied. The petition contained no evidence showing that the rule for apportioning partnership income in the hands of a partner failed to reflect the partner's business activities within Illinois.
IT 00-0041-GIL	04/24/2000	Apportionment/Sales Factor	General Information Letter: Payments to a partner for services rendered to a partnership are not expenses under GAAP and thus are not a "cost of performance" for purposes of determining whether a sale is sourced to Illinois.
IT 00-0040-GIL	04/20/2000	Base Income	General Information Letter: Response to questionnaire on Illinois tax treatment of employee benefit programs.
IT 00-0039-GIL	04/18/2000	Residency/Nonresidency	General Information Letter: The Department of Revenue cannot issue a private letter ruling determining that an individual is a nonresident.
IT 00-0038-GIL	04/07/2000	Composite Returns	General Information Letter: A Subchapter S corporation may file composite returns on behalf of its nonresident individual shareholders without obtaining prior approval from the Department of Revenue.
IT 00-0037-GIL	04/07/2000	Assessment	General Information Letter: The Illinois constitution prohibits the imposition of a personal property tax.
IT 00-0036-GIL	04/07/2000	S Corporations	General Information Letter: There is no limitation on the deduction for capital losses incurred that is allowable in computing the replacement tax liability of a Subchapter S corporation.
IT 00-0035-GIL	04/03/2000	Estimated Tax	General Information Letter: The fourth estimated tax payment for calendar year taxpayers is January 15 for individuals and December 15 for corporations.
IT 00-0034-GIL	03/28/2000	Voluntary Disclosure Agreements	General Information Letter: Taxpayers desiring relief from liability for prior tax years for which no returns were filed should apply for voluntary disclosure relief.
IT 00-0033-GIL	03/27/2000	Subtraction Modifications - Other Rulings	General Information Letter: The subtraction modification allowed partnerships for "reasonable compensation" for services rendered by partners does not necessarily allow the deduction of all income actually distributed to a partner.
IT 00-0032-GIL	03/24/2000	Addition Modifications - Other Rulings	General Information Letter: Expenses related to U.S. government obligation interest income are not required to be added back in computing base income.
IT 00-0031-GIL	03/23/2000	Addition Modifications - Other Rulings	General Information Letter: Replacement tax paid by trust, to the extent payment has reduced the taxable income distributed to beneficiaries, must be added back by the beneficiaries in computing base income.
IT 00-0030-GIL	03/23/2000	Addition Modifications - Interest	General Information Letter: Interest subject to alternative minimum tax but not to regular federal income tax is excluded from adjusted gross income and must be added back in the computation of base income.
IT 00-0029-GIL	03/23/2000	Alternative Apportionment	General Information Letter: Petition to use separate accounting cannot be granted without showing that the statutory apportionment formula fails to fairly represent the extent of the taxpayer's business activity in Illinois.
IT 00-0028-GIL	03/21/2000	Credits - Other Rulings	General Information Letter: IITA Section 405 permits the carryforward of a credit in circumstances where IRC Section 381 would permit the carryforward of a credit.
IT 00-0027-GIL	03/20/2000	Public Law 86-272/Nexus	General Information Letter: The Department cannot rule that a taxpayer has no nexus with Illinois.
IT 00-0026-GIL	03/17/2000	Estimated Tax	General Information Letter: Worksheet for computing estimated tax is not ambiguous or erroneous. The reason for failure to properly complete the worksheet may provide grounds for reasonable cause abatement of penalty by Board of Appeals.
IT 00-0025-GIL	03/14/2000	Withholding - Other Rulings	General Information Letter: Nonresident professor employed by Illinois college who conducts all teaching over the internet and is not present in Illinois does not receive compensation "paid in this State" subject to withholding.
IT 00-0024-GIL	03/13/2000	Public Law 86-272/Nexus	General Information Letter: The Department cannot rule that a taxpayer has no nexus with Illinois.
IT 00-0023-GIL	03/09/2000	Composite Returns	General Information Letter: Petition to file a composite return on behalf of beneficiaries of a trust cannot be granted because IITA Section 502(f) does not permit composite returns for beneficiaries of trusts.
IT 00-0022-GIL	03/08/2000	Business (Bulk Sales)	General Information Letter: Sale of land that is adjacent to restaurant but not used in the business is not subject to bulk sales notification.
IT 00-0021-GIL	03/03/2000	Confidentiality	General Information Letter: IITA Section 917 prohibits disclosure of taxpayer information except in specified circumstances.
IT 00-0020-GIL	03/02/200	Subtraction Modifications - Pensions	General Information Letter: Early retirement pay received from school district qualifies for the subtraction modification.
IT 00-0019-GIL	03/02/2000	Subtraction Modifications - Other Rulings	General Information Letter: No subtraction modification is allowed for research and development expenditures not deducted in computing federal taxable income.
IT 00-0018-GIL	03/02/2000	Alternative Apportionment	General Information Letter: Petition to eliminate throwback sales from the Illinois numerator cannot be granted without showing that the statutory apportionment formula fails to fairly represent the extent of the taxpayer's business activity in Illinois.
IT 00-0017-GIL	02/29/2000	Subtraction Modifications - Other Rulings	General Information Letter: Subtraction modification allowed to partnerships for a reasonable allowance for compensation paid or accrued for services rendered by partners explained.
IT 00-0016-GIL	02/25/2000	Net Operating Loss and Net Operating Loss Deduction	General Information Letter: The election to forgo the carryback of Illinois net losses is independent of any election regarding federal net operating loss carryovers.
IT 00-0015-GIL	02/17/2000	Subtraction Modification - Military	General Information Letter: The compensation of a nonresident officer of the Public Health Service is exempt from Illinois income tax under the Soldiers' and Sailors' Civil Relief Act of 1940.
IT 00-0014-GIL	02/17/2000	Alternative Apportionment	General Information Letter: Petition to use separate accounting method cannot be granted absent a showing that the statutory apportionment method fails to fairly represent the business activities of the taxpayer in Illinois and that the separate accounting method does fairly represent business activities in Illinois.
IT 00-0013-GIL	02/17/2000	Alternative Apportionment	General Information Letter: Petition to use separate accounting method cannot be granted absent a showing that the statutory apportionment method fails to fairly represent the business activities of the taxpayer in Illinois and that the separate accounting method does fairly represent business activities in Illinois.
IT 00-0012-GIL	02/17/2000	Alternative Apportionment	General Information Letter: Petition to use separate accounting method cannot be granted absent a showing that the statutory apportionment method fails to fairly represent the business activities of the taxpayer in Illinois and that the separate accounting method does fairly represent business activities in Illinois.
IT 00-0011-GIL	02/17/2000	Alternative Apportionment	General Information Letter: Petition to use separate accounting method cannot be granted absent a showing that the statutory apportionment method fails to fairly represent the business activities of the taxpayer in Illinois and that the separate accounting method does fairly represent business activities in Illinois.
IT 00-0010-GIL	02/17/2000	Alternative Apportionment	General Information Letter: Petition to use separate accounting method cannot be granted absent a showing that the statutory apportionment method fails to fairly represent the business activities of the taxpayer in Illinois and that the separate accounting method does fairly represent business activities in Illinois.
IT 00-0009-GIL	02/16/2000	Subtraction Modifications - Other Rulings	General Information Letter: Prior to the enactment of Public Act 91- 541, no subtraction modification is allowed for deductions disallowed under Section 280C of the Internal Revenue Code.
IT 00-0008-GIL	02/16/2000	Alternative Apportionment	General Information Letter: Petition to use separate accounting method cannot be granted absent a showing that the statutory apportionment method fails to fairly represent the business activities of the taxpayer in Illinois and that the separate accounting method does fairly represent business activities in Illinois.
IT 00-0007-GIL	02/16/2000	Public Law B6-272 Nexus	General Information Letter: Public Law 86-272 does not apply to sales of service.
IT 00-0006-GIL	01/21/2000	Returns - Requirements to File	General Information Letter: Corporation in bankruptcy which has no Illinois income tax liability and which has received a waiver of requirement to file federal income tax returns has no obligation to file Illinois income tax returns under Section 502(a) of the IITA
IT 00-0005-GIL	01/14/2000	Net Operating Loss and Net Operating Loss Deduction	General Information Letter: Restrictions on net operating loss carryovers contained in Section 280H of the Internal Revenue Code do not apply to Illinois net loss carryovers.
IT 00-0004-GIL	01/13/2000	Credits - Property Tax	General Information Letter: The credit allowed for residential real property taxes paid may not reduce a taxpayer's liability below zero.
IT 00-0003-GIL	01/12/2000	Subtraction Modifications - Other Rulings	General Information Letter: Prior to effective date of Public Act 91-541, no subtraction is allowed for wages whose deduction is disallowed under IRC Section 280C because the taxpayer has claimed a Work Opportunity Credit with respect to such wages.
IT 00-0002-GIL	01/11/2000	Public Law 86-272/ Nexus	General Information Letter: Delivery of tangible personal property by private carrier is not protected activity under Public Law 86-272.
IT 00-0001-GIL	01/03/2000	Payments	General Information Letter: Due dates for electronic funds transfers explained.

Private Letter Rulings

Ruling	Date	Subject	Synopsis
IT 00-0002-PLR	10/06/2000	Sales Outside the Ordinary Course of Business	Private Letter Ruling: Sale of one of nine parcels of real property used in business, representing less than 50% of the value of the real property used in business, is not subject to bulk sales reporting requirements.
IT 00-0001-PLR	02/22/2000	Composite Returns	Private Letter Ruling: Composite returns may be filed on behalf of nonresident individual partners of partnerships.