Who must file Form IL-1065 and when is its due date?

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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.

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, to you. Individuals cannot claim the exemption from pass-through withholding by filing Form IL-1000-E. You may elect to pay pass-through entity tax to provide a credit for your partners for tax years ending on or after December 31, 2021, and beginning before January 1, 2026.

Note: For tax years ending on or after December 31, 2023, any partnership that qualifies as an “investment partnership” as defined in the IITA Section 1501(a)(11.5)(A-5) is required to withhold for their nonresident partners the partner’s share of partnership income from another lower-tier partnership that is apportionable or allocable to Illinois by the investment partnership. Investment partnerships with nonresident partners must file a Form IL-1065 to report investment partnership withholding. See the Form IL-1065 instructions for more information.

In general, Form IL-1065 is due on or before the 15th day of the 4th month following the close of the taxable year. We grant you an automatic six-month extension of time to file your partnership tax return. 

See our Partnership web page for more information.

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