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2012 Income Tax Letter Rulings

General Information Letters

Ruling
Date
Subject Synopsis
IT 12-0033-GIL 12/10/2012 Subtraction Modifications – Pensions General Information Letter: Payment to retired federal employee that is subject to FICA tax is not eligible for subtraction as a payment under a government retirement plan.
IT 12-0032-GIL 12/03/2012 Partnerships General Information Letter: A partnership that derives income from both lottery winnings and investment income is not excluded from partnership treatment as an entity formed for the sole purpose of playing the lottery, and if it derives more than 10% of its gross income from lottery winnings, it is not an investment partnership.
IT 12-0031-GIL 11/13/2012 Compensation General Information Letter: Deferred compensation received for employee services performed entirely within Illinois are taxable by Illinois.
IT 12-0030-GIL 10/18/2012 Transferees General Information Letter Transferees of a dissolved corporation are potentially liable for unpaid Illinois income tax obligations of the corporation.
IT 12-0029-GIL 10/05/2012 Public Law 86-272/nexus General Information Letter: Sales activities conducted within Illinois by employees of the taxpayer with regard to insurance policies are not protected under Public Law 86-272.
IT 12-0028-GIL 09/27/2012 Public Law 86-272/nexus General Information Letter: A partner in a partnership doing business in Illinois generally has sufficient nexus to be subject to Illinois income taxation with respect to his or her share of the partnership’s Illinois business income.
IT 12-0027-GIL 09/24/2012 Returns – Due Dates General Information Letter: The due date of a corporation’s Illinois income tax return is the fifteenth day of the third month after the end of its taxable year or the due date of its federal return, whichever is later. Illinois grants all corporations a seven-month extension of time to file their Illinois income tax returns.
IT 12-0026-GIL 09/13/2012 Subtraction Modifications – Other Rulings General Information Letter: Federal law prohibits state taxation of sickness benefits paid under the Railroad Retirement and Unemployment Insurance Act, so any amount of these benefits included in adjusted gross income of a taxpayer may be subtracted in computing base income.
IT 12-0025-GIL 09/10/2012 Base Income General Information Letter: Income from sales of tangible personal property included in the federal taxable income of a taxpayer is included in base income of the taxpayer unless a specific subtraction is allowed.
IT 12-0024-GIL 08/29/2012 Rate of Tax General Information Letter: Amounts included in federal taxable income in calendar 2011 are subject to Illinois income tax at the higher rates applicable to income accrued after December 31, 2010, even if the income was arguably attributable to periods before January 1, 2012.
IT 12-0023-GIL 08/28/2012 Addition Modifications – Other Rulings General Information Letter: Addition for recapture of subtraction claimed for contributions to College Illinois! savings plans must be included in income in the year of a disqualified distribution from the plan.
IT 12-0022-GIL 08/17/2012 Alternative Apportionment General Information Letter: Petition to use separate accounting cannot be granted merely because separate accounting reaches a different tax liability than the statutory apportionment method.
IT 12-0021-GIL 08/14/2012 Withholding – Other Rulings General Information Letter: State income tax withholding is generally required from compensation “paid in this State” from which federal income tax withholding is required.
IT 12-0020-GIL 07/31/2012 Credit – Foreign Tax General Information Letter: Resident is allowed a credit for local income taxes paid to Kentucky municipalities.
IT 12-0019-GIL 07/26/2012 Compensation General Information Letter: Addresses sourcing of employee compensation in various scenarios, most of which contain insufficient information to allow a conclusion.
IT 12-0018-GIL 07/24/2012 Credits – Property Tax General Information Letter: Individual who moved from Illinois in 2009 and established residence in another state, but did not sell his Illinois house, could claim the property tax credit for the portion of taxes paid on the house in 2010 allocable to the period in 2009 during which the house was his principal residence.
IT 12-0017-GIL 07/19/2012 Net Income (loss) and Net Loss Deduction General Information Letter: C corporation may not use an Illinois net loss carryover deduction in its taxable year ending during calendar 2011, even to offset income earned prior to January 1, 2011, for purposes of applying the change in tax rates effective on that date.
IT 12-0016-GIL 07/10/2012 Alternative Apportionment General Information Letter: Petition for permission to use separate accounting cannot be granted based only on a showing that separate accounting and formula apportionment produce different results.
IT 12-0015-GIL 07/10/2012 Credits – Education Expense Credit General Information Letter: Amounts spent to purchase books and other items that are not consumed during the year do not qualify for the education expense credit.
IT 12-0014-GIL 07/02/2012 Refunds – Statute of Limitations General Information Letter: Allowance of federal income tax refund claim based on exemption of income previously reported as taxable opens a new limitations period for Illinois income tax refund claims on the same basis.
IT 12-0013-GIL 05/24/2012 Subtraction Modifications – Pensions General Information Letter: Pension paid by an Italian corporation and social security payments by the Italian government do not qualify for subtraction.
IT 12-0012-GIL 05/15/2012 Credits – Enterprise Zone Investment Credit General Information Letter: Deemed contribution of property on which an enterprise zone investment credit has been claimed to another taxpayer when sale of an interest in a disregarded entity that made the investment requires the separate existence of the entity to be recognized is an event requiring recapture of the credit.
IT 12-0011-GIL 05/15/2012 Alternative Apportionment General Information Letter: Petition for alternative apportionment does not contains sufficient information to allow a ruling.
IT 12-0010-GIL 05/15/2012 Subtraction Modifications – Other Rulings General Information Letter: No subtraction is allowed for amounts included in gross income under IRC Section 45B.
IT 12-0009-GIL 04/16/2012 Allocation General Information Letter: Nonresident individual is not taxable on gain realized on sale of stock in a corporation doing business in Illinois unless the sale was made in connection with a business the individual was conducting in Illinois.
IT 12-0008-GIL 03/23/2012 Trusts General Information Letter: Illinois income tax treatment of charitable remainder unitrusts follows the federal income tax treatment.
IT 12-0007-GIL 03/15/2012 Public Law 86-272/nexus General Information Letter: Nexus issues are not generally suitable for resolution by letter ruling.
IT 12-0006-GIL 03/14/2012 Subtraction Modifications – Other Rulings General Information Letter: Taxpayer is not allowed a subtraction from federal taxable income to exclude that portion of a gain recognized on the disposition of an asset that resulted from basis reductions attributable to losses that the taxpayer was unable to use to reduce net income in any year.
IT 12-0005-GIL 03/14/2012 Allocation General Information Letter: Compensation paid in this State to a nonresident is taxable by Illinois.
IT 12-0004-GIL 03/13/2012 Addition Modifications – Other Rulings General Information Letter: Taxpayer who claimed subtractions for contributions to Section 529 plans is required to add back distributions not used for qualifying expenses into income in the year of the distribution, rather than amending his returns for the years the contributions were made to disallow the subtractions.
IT 12-0003-GIL 02/07/2012 Returns General Information Letter: Preparation of pro-forma federal returns by partners to same-sex civil unions explained.
IT 12-0002-GIL 01/31/2012 Credit – Replacement Tax Investment General Information Letter: For purposes of determining the credit rate for increased employment, employment for the prior taxable year is the average employment for each month of the taxable year and, in the case of a short taxable year, uses only the number of months in that taxable year.
IT 12-0001-GIL 01/12/2012 Public Law 86-272/Nexus General Information Letter:Nexus issues are not generally suitable for resolution by letter ruling.
 

Private Letter Rulings

Ruling Date Subject Synopsis
IT 12-0001-PLR 10/25/2012 Apportionment – Sales Factor Private Letter Ruling: Receipts from sale of stock in a subsidiary corporation are not included in the Illinois numerator of the sales factor when no income-producing activities are performed within Illinois.