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2014 Income Tax Letter Rulings

General Information Letters

Ruling
Date
Subject Synopsis
IT 14-0018-GIL 10/17/2014 Credits – Foreign Tax General Information Letter: The credit for taxes paid to other states may not exceed the amount of Illinois income tax attributable to income that would be sourced to other states if all other states used Illinois’ allocation and apportionment rules. Because nonbusiness gambling winnings are sourced to the state of residency under the Illinois Income Tax Act, this limitation does not include Illinois taxes attributable to gambling winnings.
IT 14-0017-GIL 10/06/2014 Net Income (Loss) and Net Loss Deductions General Information Letter: If no timely election was made under IITA Section 207(a-5) to carry a loss forward only, that loss must be carried back.
IT 14-0016-GIL 10/03/2014 Credits – Foreign Tax General Information Letter:The credit for taxes paid to other states may not exceed the amount of Illinois income tax attributable to income that would be sourced to other states if all other states used Illinois’ allocation and apportionment rules. Because nonbusiness gambling winnings are sourced to the state of residency under the Illinois Income Tax Act, this limitation does not include Illinois taxes attributable to gambling winnings.
IT 14-0015-GIL 09/24/2014 Withholding – Other Rulings General Information Letter: A taxpayer is allowed to claim personal and dependency exemptions in order to determine the withholding required from his nonqualified retirement plan income.
IT 14-0014-GIL 09/23/2014 Withholding – Other Rulings General Information Letter: If a nonresident individual partner’s Illinois income tax obligation is fully paid by withholding by the partnership, the partner is not required to file an Illinois income tax return.
IT 14-0013-GIL 09/22/2014 Subtraction Modifications – Other Rulings General Information Letter: Income from a trust established under the Illinois Funeral or Burial Fund Act may be subtracted from federal adjusted gross income as provided in 225 ILCS 45/4a(c).
IT 14-0012-GIL 09/19/2014 Definitions General Information Letter: An entity that is disregarded for federal income tax purposes and treated as part of its parent corporation is treated identically for Illinois income tax purposes.
IT 14-0011-GIL 09/19/2014 Withholding – Other Rulings General Information Letter: Withholding is not required from compensation paid to a nonresident who performs some services in Illinois, but whose base of operations is located in another state.
IT 14-0010-GIL 09/18/2014 Subtraction – Pensions General Information Letter: Pastor is entitled to a subtraction for the portion of payments received under an IRC Section 403(b) plan that is not excluded from his federal adjusted gross income as a housing allowance.
IT 14-0009-GIL 09/17/2014 Credits – Replacement Tax Investment General Information Letter: Taxpayer providing alarm monitoring services is not a retailer entitled to claim the replacement tax investment credit.
IT 14-0008-GIL 08/19/2014 Subtraction Modifications - Other Rulings General Information Letter: In computing base income, only passive losses deducted in computing the individual taxpayer’s federal adjusted gross income are allowable, and passive loss deductions of a nonresident must be sourced to Illinois according to the apportionment factors of the business that produces the losses.
IT 14-0007-GIL 08/14/2014 Alternative Apportionment General Information Letter: Request to use separate accounting cannot be granted without evidence that the statutory apportionment formula does not fairly reflect the market for the taxpayer’s services.
IT 14-0006-GIL 07/28/2014 Taxable Year General Information Letter: A corporation with two short federal taxable years within a calendar year must file two short-period Illinois income tax returns.
IT 14-0005-GIL 06/19/2014 Withholding – Other Rulings General Information Letter: Illinois income tax must be withheld from payments of wages or other items of income only if federal income tax is required to be withheld from those payments.
IT 14-0004-GIL 04/02/2014 Nexus General Information Letter: Nexus issues are not generally suitable for resolution by letter ruling.
IT 14-0003-GIL 04/02/2014 Apportionment – Sales Factor General Information Letter: General explanation of the sales factor sourcing rules for software and related services.
IT 14-0002-GIL 02/13/2014 Credits - Foreign Tax General Information Letter: Compensation paid in Illinois under IITA Section 304(a)(2)(B) does not qualify for the credit for taxes paid to other states.
IT 14-0001-GIL 01/24/2014 Withholding – Other Rulings General Information Letter: No Illinois withholding is required from wages paid to a nonresident employee who performs some of his multistate services in Illinois, if the employee’s base of operations is outside Illinois or if the employee’s wages are exempt from withholding except by his state of residence under 49 U.S.C. § 14503(a)(1).

Private Letter Rulings

Ruling Date Subject Synopsis
IT 14-0006-PLR 06/16/2014 Withholding – Other Rulings Private Letter Ruling: Illinois income tax must be withheld from payments of wages or other items of income only if federal income tax is required to be withheld from those payments.
IT 14-0005-PLR 06/20/2014 Base Income Private Letter Ruling: The computation of base income automatically incorporates the effects on federal taxable income of an IRC Section 338(h)(10) election.
IT 14-0004-PLR 06/04/2014 Apportionment – Sales Factor Private Letter Ruling: Method proposed by taxpayer to allocate sales of telecommunications services is reasonable under IITA Section 304(a)(3)(B-5)(vii)(d), and therefore may be used. (This is a PLR.)
IT 14-0003-PLR 04/24/2014 Apportionment – Sales Factor Private Letter Ruling: For sales factor purposes, cloud computing services described in this ruling request re sales of service, not rental of tangible personal property or sales or licenses of intangible personal property. (This is a PLR.)
IT 14-0002-PLR 04/24/2014 Apportionment – Sales Factor Private Letter Ruling: Temporary interruption in Illinois of shipment from another state to a foreign country in which the taxpayer is not subject to tax will not cause the sale to be thrown back to Illinois. (This is a PLR.)
IT 14-0001-PLR 04/24/2014 Taxable Year Private Letter Ruling: Taxpayer required to use two short taxable years for federal income tax purposes, but whose taxable year is otherwise unchanged and whose Illinois liability for the two short years would be the same as for a single tax year containing both short tax years, may file a single Illinois return for the tax year containing both short tax years. (This is a PLR.)