You must file Form IL-1065, Partnership Replacement Tax Return, if you are a partnership, as defined in "Definitions to help you complete your Form IL-1065" in the Form IL-1065 instructions, and you have base income or loss as defined under the Illinois Income Tax Act (IITA) allocable to Illinois. If you are a partnership organized for the sole purpose of playing the Illinois State Lottery, you are not required to file a Form IL-1065.
A person transacting an insurance business organized under a Lloyd's plan of operation may file a Form IL-1065 on behalf of all its underwriters, including corporations and residents. You must refer to Illinois Income Tax Regulations, Section 100.5130, for specific instructions on how to properly complete Form IL-1065 and determine what you need to attach to your return.
All underwriters who are members of an insurance business organized under a Lloyd's plan of operation may be included on Form IL-1065. No credit is allowed to any underwriter for its share of tax paid on Form IL-1065.
You are required to report and pay pass-through withholding on behalf of your nonresident partners if they have not provided Form IL-1000-E, Certificate of Exemption for Pass-through Withholding Payments, to you. Individuals cannot claim the exemption from pass-through withholding by filing Form IL-1000-E. For tax years ending:
- On or after December 31, 2014, you must include these amounts on your Form IL-1065 and Schedule B, Partners' or Shareholders' Information. You must also complete and retain a copy of Schedule K-1-P(3), Pass-through Withholding Calculation for Nonresident Members, for each of your nonresident partners.
Note: If you are a fiscal-year filer and file during a year with a tax rate change, you will be required to complete Schedule K-1-P(3)-FY, Pass-through Withholding Calculation for Nonresident Members (for Fiscal Filers), instead. See the Schedule K-1-P(1) Instructions for more information.
- Before December 31, 2014, you must file Form IL-1023-C, Composite Income and Replacement Tax Return, or Form IL-1000, Pass-through Entity Payment Income Tax Return.
Note: Prior year forms and instructions for each tax type can be found by clicking the "Prior Years" link on our Business Tax Forms page and selecting the corresponding year.
See the IL-1065 Instructions for due dates and filing requirements.