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IL-1120 Instructions (R-12/12) Page 1 o

Illinois Department o Revenue

IL-1120 Instructions 2012

Who must fle Form IL-1120?

You must fle Form IL-1120 i you are a corporation that

hasnetincomeorlossasdenedundertheIllinoisIncomeTaxAct(IITA);or

isqualiedtodobusinessinthestateofIllinoisandisrequiredtoleafederalincometaxreturn(regardlessofnetincomeorloss).

Unitary flers Ifyouareacorporationthatisamemberofaunitarybusinessgroup,seeIllinoisScheduleUB,CombinedApportionmentforUnitaryBusinessGroup,anditsinstructionsforinformationaboutlingrequirements.

Political organizations and homeowners associations IfyouareacorporationthatfallsunderthedenitioninInternal

RevenueCode(IRC),Sections527and528,andyoureportyour

federaltaxableincomeonU.S.Form1120-POLorU.S.Form1120-H,youaresubjecttoIllinoisIncomeandReplacementTaxesandmust

leFormIL-1120.

Cooperatives I you are a corporation operating on a cooperativebasisunderIRCSection1381,andleU.S.Form1120-C,youaresubjecttoIllinoisIncomeandReplacementTaxesandmustleFormIL-1120.

Settlement unds IfyouareasettlementfundunderIRCSection468BandyoureportyourfederaltaxableincomeonU.S.Form1120-SF,youaresubjecttoIllinoisIncomeandReplacementTaxesandmustleFormIL-1120.

Whats new or 2012?

General InormationLimited liability companies Ifyouarealimitedliability

companyandyouleasacorporationforfederalincometaxpurposes,youaretreatedasacorporationforIllinoispurposes.

Foreign corporations Ifyouareaforeigncorporation,youmuobservethesamelingrequirementsasU.S.domesticcorporations

ForIllinoispurposes,youshouldreportthetaxableincomeyouare

reportingforfederalpurposesunderIRCSections881through885.

Youmustuseonlythedomesticfactorinformationregardingsales

informationintheeverywheredenominatorwhenapportioning

businessincometoIllinois.Ifyouareaforeigncorporationthatisa

memberofaunitarybusinessgroup,seeIllinoisScheduleUBand

instructionsforinformationaboutlingrequirements.

Domestic international sales corporations and oreignsales corporations IfyouareaDomesticInternationalSales

Corporation(DISC)underIRCSection992,youarenotsubjecttothetaxesimposedbyIRCSubtitleA(exceptforthetaximposedotransferstoavoidincometaxunderIRCSection1491).Similarly,yarenotrequiredtoleFormIL-1120.

ForIllinoispurposes,distributionsfromDISCsaretreatedinaccordancewiththefederalrulespertainingtodividends,dividendexclusions,anddividend-receiveddeductions.

IfyouareaForeignSalesCorporation(FSC)forfederalpurposesandhavefederaltaxableincomeapportionableorallocabletoIllinyouaresubjecttoIllinoistaxrulesapplicabletoallcorporations.YaretaxedbyIllinoistotheextentthatyournonexemptforeigntradincome,investmentincome,andcarryingcharges(taxableforfedepurposes)areapportionableorallocabletoIllinois.

YourmailingaddressisnowrequiredinformationonStep1.

Step4,FigureyourincomeallocabletoIllinois,hasbeenmodied.YoumustindicatewhetheryourbaseincomeorlossisderivedinsideIllinoisonly,ifitisderivedbothinsideandoutsideIllinois,orentirelyoutsideIllinois.SeeSpecicInstructionsformore

information.

FortaxyearsendingonorafterDecember31,2012,andbefore

December31,2014,corporations,otherthanScorporations,are

allowedanIllinoisnetlossdeduction(NLD)uptoamaximumof$100,000.Schedule NLD,IllinoisNetLossDeduction,andScheduleUB/NLD,UnitaryIllinoisNetLossDeduction,havebeenredesignedtoaccountfortheNLDlimitation .SeeSpecicInstructionsformoreinformation.

Schedule INL,IllinoisNetLossAdjustmentforCooperatives,hasbeenexpandedtoallowREMICownerstoadjusttheirIllinoisincomeduetodisalloweddeductionsorlosses,thatwouldotherwisebeallowable,exceptforIRClimitations,whichprohibittaxableincomeoftheREMICholderfrombeinglessthanthe

excessinclusionamountderivedfromtheREMIC.SeeSpecicInstructionsandScheduleINLformoreinformation.

Schedule INS,TaxforForeignInsurers,Schedule UB/INS,TaxforaUnitaryBusinessGroupwithForeignInsurers,and Form IL-1120havebeenredesignedtopresentthetaxreductioncalculatedontheschedulesasareductionintaxonStep8,Lines50aand51a. Donot apply the tax reduction fgured on Schedules INS or UB/

INS directly to Form IL- 1120, Lines 50 or 51.Pleasereviewtheinstructionscarefully.

IfyouwishtoallowustospeakwithyourprepareraboutyourreturnchecktheboxinStep9,andseeSpecicInstructionsformoreinformation.

Anytaxcreditscheduledtoexpirein2011,2012,and2013,asrequiredintheIllinoisIncomeTaxAct,hasbeenextendedbyadding

veyearstothenamedexpirationdate.

For tax years ending on or ater December 31, 2012, and on orbeore December 31, 2016, the Veterans Jobs Credit hasbeenmodiedtoallowacreditforeitherqualiedveteransorqualiedunemployedveterans.SeeSpecicInstructionsformoreinformatio

For tax years ending on or ater December 31, 2012, a HospitalCreditisavailable.Seethespecicinstructionsformoreinformation

TheNew Markets Creditis allowed or qualifed investmentsmade between 2008 and 2017inacommunitydevelopmententitySeeSpecicInstructionsformoreinformation.

The Jobs Tax Credithasbeenmodied.WhencomputingyouJobsTaxCredityoumaynotincludeanyemployeeshiredinanenterprisezoneinyourcalculationofeligibleemployees.

For tax years beginning on or ater January 1, 2012, a Live TheaProduction Tax CreditandaRiver Edge Historic PreservationCredit areavailable.SeeSpecicInstructionsformoreinformation.

TheEnterprise Zone Dividend Subtraction and EnterpriseZone Interest Subtractionhavebeenmodied.Ifyouareeligibtotakethesesubtractions,donotincludeanydividendsorinterereceivedoraccruedonorafterAugust7,2012.SeetheSpecicInstructionsonSchedule1299-Bformoreinformation.

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IL-1120 Instructions (R-12Page 2 o 15

CorporateshareholderswhoderiveincomefromIllinoisshouldincludeactualanddeemeddistributionsfromaDISCorFSCinbusinessincome.

Real estate mortgage investment conduits I you are a realestatemortgageinvestmentconduitinaccordancewithIRCSection860AthroughG,youarenotrequiredtoleFormIL-1120.

Charitable organizations,etc. I you are an organizationexemptfromfederalincometaxbyreasonofIRCSection501(a),youarenotrequiredtoleFormIL-1120.However,unrelatedbusinesstaxableincome,asdeterminedunderIRCSection512,

issubjecttotax(withoutanydeductionforIllinoisIncomeTax)andmustbereportedonFormIL-990-T,ExemptOrganizationIncomeandReplacementTaxReturn.Formoreinformation,seeFormIL-990-TInstructions.

Small business corporations IfyouareanScorporation,asdenedbyIITA,Section1501(a)(28),youaresubjectonlytoIllinoisReplacementTaxandmustleFormIL-1120-ST,SmallBusinessCorporationReplacementTaxReturn.TheshareholdersofthesecorporationsaretaxedbyIllinoisontheirdistributivesharesofthecorporationsincome.Formoreinformation,seeFormIL-1120-STinstructions.

What orms must I use?

Ingeneral,youmustobtainanduseformsprescribedbytheIllinois

DepartmentofRevenue.Separatestatementsnotonformsprovidedorapprovedbythedepartmentwillnotbeacceptedandyouwillbeaskedforappropriatedocumentation.Failure to comply withthis requirement may result in ailure to fle penalties, delay the

processing o your return, or generating any reund.Additionally,failuretosubmitappropriatedocumentationwhenrequestedmayresultinareferraltoourAuditBureauforcomplianceaction.

Corporations must complete Form IL-1120.Donotsendacomputerprintoutwithlinenumbersanddollaramountsattachedtoablankcopyofthereturn.Computergeneratedprintoutsarenotacceptable,eveniftheyareinthesameformatasthedepartmentforms.Computergeneratedformsfromadepartment-approvedsoftwaredeveloperareacceptable.

How do I register my business?IfyouarerequiredtoleFormIL-1120,youshouldregisterbycallingourCentralRegistrationDivisionat217 785-3707.Youmaybeabletoregisterelectronically.Visitourwebsiteat tax.illinois.gov ormoreinformation.

RegisteringwiththeIllinoisDepartmentofRevenue(IDOR)priorto fling your returnensuresthatyourtaxreturnsareaccuratelyprocessed.

YouridenticationnumbersasanIllinoisbusinesstaxpayerareyourfederalemployeridenticationnumber(FEIN)andyourIllinoisaccountnumber.

When should I fle?

YourIllinoislingduedateisthesameasyourfederallingduedate.Ingeneral,FormIL-1120isdueonorbeforethe15thdayofthe3rdmonthfollowingthecloseofthetaxyear.

Ifyouareacooperative,FormIL-1120isdueonthe15thdayofthe9thmonthfollowingthecloseofthetaxyear.

Automatic seven-month extension Wegrantyouanautomaticseven-monthextensionoftimetoleyourcorporatetaxreturn.YouarenotrequiredtoleFormIL-505-B,AutomaticExtensionPayment,inordertoobtainthisautomaticextension.However,ifyouexpecttaxtobedue,youmustuseFormIL-505-Btopayanytentativetaxdueinordertoavoidinterestandpenaltyontaxnotpaidbytheoriginalduedateofthereturn.AnextensionoftimetoleyourFormIL-1120isnotanextensionoftimeforpaymentofIllinoistax.

Additional extensions beyond the automatic extensionperiod WewillgrantanextensionofmorethansevenmonthsonlyifanextensionofmorethansixmonthsisgrantedbytheInternalRevenueService(IRS).YouradditionalIllinoisextensionwbeequaltothefederalextension,plusonemonth.YoumustattaccopyoftheapprovedfederalextensiontoyourFormIL-1120.

When should I pay?

Payment o tax YoumustpayyourIllinoisIncomeandReplacementTaxinfullonorbeforetheoriginalduedateofthereturn.Thispaymentdateapplieseventhoughanautomatic

extensionforlingyourreturnhasbeengranted.Estimated tax payments IfyoureasonablyexpectyourIllinoIncomeandReplacementTaxliabilitytobemorethan$400forthetaxyear,youarerequiredtomakequarterlypaymentsofestimatetax.Formoreinformation,seetheinstructionsforFormIL-1120-EEstimatedIncomeandReplacementTaxPaymentsforCorporatio

Who should sign the return?

YourFormIL-1120mustbesignedbythepresident,vicepresidentreasurer,oranyotherofcerdulyauthorizedtosignthereturn.Inthecaseofabankruptcy,areceiver,trustee,orassigneemustsignanyreturnrequiredtobeledonbehalfofthecorporation.Thesignatureveriesbywrittendeclaration(andunderpenaltiesofperjury)thatthesigningindividualhaspersonallyexaminedthe

returnandthereturnistrue,correct,andcomplete.Thefactthatanindividualsnameissignedtoareturnisprimafacieevidencethattheindividualisauthorizedtosignthereturnonbehalfofthecorporation.

Anypersonpaidtopreparethereturn(otherthanaregularemployofthetaxpayer,suchasaclerk,secretary,orbookkeeper)mustprovideasignature,datethereturn,andwritethepreparerstaxpayeridenticationnumber.Ifthepreparerisanemployeeorpartnerofarmorcorporation,thepreparermustalsoprovidethermsname,address,andinsteadofthepreparerstaxpayeridenticationnumber,thepreparermustprovidethermsFEIN.Self-employedpreparersmustprovidetheirownname,address,ataxpayeridenticationnumberintheappropriatespaces.

Ifyourreturnisnotsigned,anyoverpaymentoftaxisconsideredforfeitedif,afternoticeanddemandforsignature,youfaitoprovideasignaturewithinthreeyearsfromthedateyourreturnwaled.

What are the penalties and interest?

Penalties You will owe

alate-fling penaltyifyoudonotleaprocessablereturnbythextendedduedate;

a late-payment penaltyifyoudonotpaythetaxyouowebythoriginalduedateofthereturn;

abad check penaltyifyourremittanceisnothonoredbyyournancialinstitution;

acost o collection eeifyoudonotpaytheamountyouowewithin30daysofthedateprintedonyourbill.

Interest Interestiscalculatedontaxfromthedayaftertheorigiduedateofyourreturnthroughthedateyoupaythetax.

Wewillbillyouforpenaltiesandinterest.Formoreinformationaboutpenaltiesandinterest,seePublication103,PenaltiesandInterestforIllinoisTaxes.Toreceiveacopyofthispublication,seeWhatifIneeadditionalassistanceorforms?

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IL-1120 Instructions (R-12/12) Page3of

What i I am discontinuing my business?

Liquidation, withdrawal rom Illinois, or loss o charter Iyouareacorporationthatisliquidated,withdrawseithervoluntarilyorinvoluntarilyfromIllinois,orinanymannersurrendersorlosesyourcharterduringanytaxyear,youarestillrequiredtoletaxreturns.Also,wewillpursuetheassessmentandcollectionoftaxesowedbyyouoryourshareholders.

Sales or transers Ifyouareacorporationthat,outsidetheusualcourseofbusiness,sellsortransfersthemajorpartofanyoneormoreof

thestockogoodswhichyouareinthebusinessofselling,

thefurnitureorxturesofyourbusiness, themachineryandequipmentofyourbusiness,or

therealpropertyofyourbusiness,

youorthepurchasermustcompleteandsendusFormCBS-1,NoticeofSale,Purchase,orTransferofBusinessAssets,nolaterthan10daysafterthedatethesaletookplace.Mailthisform,alongwithcopiesofthesalescontractandnancingagreement,to

ILLINOIS DEPARTMENT OF REVENUE

BULK SALES UNIT

100 WEST RANDOLPH, LEVEL 7-400

CHICAGO IL 60601

Request or prompt determination Youmaymakearequest

forpromptdeterminationofliabilityifyouareacorporationintheprocessofdissolution.Acompletedtaxreturnmustbeonlewithusbeforeyoucansubmitarequestforpromptdetermination.Donotsubmityourreturnandrequestatthesametime.Mailyourinitialreturntotheaddressindicatedontheform.Youshouldallow12weeksforprocessing.Ifyourrequestisproperlymade,theexpirationofthestatuteoflimitations(absentfraud)willnotextendbeyond18monthsfromthedateofyourrequest.Mailyourrequestandacopyofyourpreviouslysubmittedreturnto


PO BOX 19044

SPRINGFIELD IL 62794-9044

What i I need to correct or change my return?Ifyouneedtocorrectorchangeyourreturnafterithasbeenled,youmustleFormIL-1120-X,AmendedCorporationIncomeandReplacementTaxReturn.Returnsledbeforetheextendedduedateofthereturnaretreatedasyouroriginalreturnforallpurposes.FormoreinformationseeFormIL-1120-Xinstructions.

YoushouldleFormIL-1120-XonlyafteryouhaveledaprocessableIllinoisIncomeTaxreturn.YoumustleaseparateFormIL-1120-Xforeachtaxyearyouwishtochange.DonotleanotherFormIL-1120withamendedgurestochangeyouroriginallyledFormIL-1120.

State changes only FileFormIL-1120-X,promptly,ifyoudiscoveranerroronyourIllinoisreturnthatdoesnotrelatetoanerroronyourfederalreturnbutwascausedby

amistakeintransferringinformationfromyourfederalreturntoyourIllinoisreturn;

failingtoreportormisreportingtoIllinoisanitemthathasnoeffectonyourfederalreturn;or

amistakeinanotherstatestaxreturnthataffectsthecomputationofyourIllinoistaxliability.

Ifyouareclaiminganoverpayment,FormIL-1120-Xmustbeledwithinthreeyearsaftertheextendedduedateorthedatethereturnwasled,orwithinoneyearafterthetaxgivingrisetotheoverpaymentwaspaid,whicheverislatest.

Federal changes only File Form IL-1120-X ifyouhaveledanamendedfederalreturnorifyouhavebeennotiedbytheIRSthatthhavemadechangestoyourreturn.Thisincludesanychangeinyourfederalincometaxliability,anytaxcredit,orthecomputationofyourfederaltaxableincomeasreportedforfederalincometaxpurposesifthechangeaffectsanyitementeringintothecomputationofnetinconetloss,oranycreditforanyyearundertheIITA.YoumustleFormIL-1120-Xnolaterthan120daysafterthefederalchangeshavebeeagreedtoornallydeterminedtoavoidalate-paymentpenalty.

I you are fling Form IL-1120-X to claim an overpayment resulting r

afederalchange,itmustbeledwithintwoyearsafterthedatesuch

noticationwasdue(regardlessofwhethersuchnoticewasgiven).

Attachacopyoffederalnalizationorproofofacceptancefromthealongwithacopyofyouramendedfederalform,ifapplicable,toyour

FormIL-1120-X.Examplesoffederalnalizationincludeacopyofone or more o the ollowing items:

yourfederalrefundcheck

yourauditreportfromtheIRS

yourfederaltranscriptverifyingyourfederaltaxableincome

What records must I keep?

YoumustmaintainbooksandrecordstosubstantiateanyinformareportedonyourFormIL-1120.Yourbooksandrecordsmustbeavailableforinspectionbyourauthorizedagentsandemployees.

Do the IDOR and the IRS exchange income

tax inormation?

TheIDORandtheIRSexchangeincometaxinformationforthepurpofverifyingtheaccuracyofinformationreportedonfederalandIllinoistaxreturns.AllamountsyoureportonFormIL-1120aresubjecttovericationandaudit.

Should I round?

YoumustroundthedollaramountsonFormIL-1120andaccompanyschedulestowhole-dollaramounts.Todothis,youshoulddropanyamountlessthan50centsandincreaseanyamountof50centsormoretothenexthigherdollar.

What is base income/taxable income?

YourIllinoisbaseincomeorlossisyourfederaltaxableincomeorloss,plusanyadditionsonLines2through8,lessanysubtractiononLine22.SeespecicinstructionsforSteps2and3.

Taxableincomeasreportedforfederalincometaxpurposesisdetermineddifferentlyforcertaincorporations.Ifyouarea lie insurance companysubjecttothetaximposedbyIRCSect

801,yourtaxableincomeisthelifeinsurancecompanytaxableincome,plustheamountofdistributionsfrompre-1984policyholdsurplusaccountsascalculatedunderIRCSection815(a).

nonlie mutual or nonlie stock insurance companysubjectthetaximposedbyIRCSection831,yourtaxableincomeistheinsurancecompanytaxableincome.

regulated investment companysubjecttothetaximposedbyIRCSection852,yourtaxableincomeistheinvestmentcompataxableincome.

real estate investment trust subjecttothetaximposedbyIRCSection857,yourtaxableincomeistherealestateinvestmenttrusttaxableincome.

corporation included in the fling o a consolidated incometax returnforthetaxyearforfederalincometaxpurposes,yourtaxableincomeisdeterminedasifyouhadledaseparatreturnforfederalincometaxpurposesforthetaxyearandeacprecedingtaxyearyouwereamemberofanafliatedgroup.YseparatetaxableincomemustbedeterminedasiftheelectionprovidedbyIRCSection243(b)(2)hadbeenineffectforallyears

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IL-1120 Instructions (R-12Page4of15

cooperative or association,yourtaxableincomeisthetaxableincomedeterminedinaccordancewiththeprovisionsofIRCSections1381through1388.

oreign corporation,yourtaxableincomeistheamountoffederaltaxableincomedescribedinIRCSections881through885.

What i I have an Illinois net loss deduction (NLD)?

FortaxyearsendingonorafterDecember31,2012,andbeforeDecember31,2014,netlossdeductionsmaynotexceed$100,000.

IfyouhaveanIllinoisNLDfromanylossyearendingonorafterDecember31,1986,itissubtractedfromandlimitedtoyourbaseincomeallocabletoIllinois.

TodetermineyourIllinoisnetlossstartwithfederaltaxableincomeandapplyalladditionandsubtractionmodicationsandallallocationandapportionmentprovisions.

IllinoisnetlossesincurredintaxyearsendingonorafterDecember31,2003,mayonlybecarriedforwardfor12years.Whendeterminingtheyearstowhichalosscanbecarriedforward,donotcount

anytaxableyearsforwhichthedeductionwasdisallowedbylaw(taxyearsendingafterDecember31,2010andbeforeDecember31,2012);

anytaxableyearsforwhichthedeductionwouldexceed$100,000if

notfortheNLDlimitation(taxyearsendingonorafterDecember31,2012andbeforeDecember31,2014).

IfyouarecarryinganIllinoisNLD,youmustcompleteIllinoisScheduleNLD,IllinoisNetLossDeduction,orIllinoisScheduleUB/NLD,UnitaryIllinoisNetLossDeduction,andclaimthedeductiononStep5,Line38.SeespecicinstructionsforStep5,Line38.

Ifyouareacooperative,lingformU.S.1120-C,youmustcompleteScheduleINL,IllinoisNetLossAdjustmentsforCooperatives.Ifyoumaketheelectiontosplityourpatronageandnonpatronageincomeandlossamounts,youarerequiredtocompleteScheduleINLeveryyearandmakethelosscomputationsonScheduleNLDorUB/NLD.

IfyouhaddischargeofindebtednessincomeforataxableyearendingonorafterDecember31,2008,andalloraportionofthisincome

wasexcludedfromyourfederalgrossincomeduetobankruptcyorinsolvency,thenyoumayberequiredtoreduceanyIllinoisnetlossyouincurredforthatyearorIllinoisnetlosscarryoverstothatyearbeforeyoudetermineyourIllinoisNLD.SeetheinstructionsforFormIL-1120,Step5andScheduleNLDorUB/NLDformoreinformation.

IfyouhaveanIllinoisnetlossforthistaxyear,youmustleFormIL-1120reportingthelossinordertocarrythelossforwardtoanotheryear.

IfyouneedmoreinformationseetheIllinoisIncomeTaxRegulations,Sections100.2050and100.2300through100.2330.Thesesectionsmaybeobtainedbyvisitingourwebsiteattax.illinois.gov.

What attachments do I need?

WhenlingyourreturntherearecertaintypesofincomeitemsandsubtractionmodicationsthatrequiretheattachmentofIllinoisorfederalformsandschedules.Instructionsfortheseattachmentsappearthroughoutthespecicinstructionsforcompletingyourreturn.

AllIllinoisformsandschedulesincludean IL AttachmentNo. intheupperrightcorneroftheform.Requiredattachmentsshouldbeorderednumericallybehindthetaxreturn,asindicatedbytheILAttachmentNo.Failuretoattachformsandschedulesintheproperordermayresultinprocessingdelays.

Requiredcopiesofdocumentationfromyourfederalreturnshouldbeattachedbehind the completed Illinois return.

All taxpayers, including unitary business groups, must attach a

copy o your U.S. Form 1120, Pages 1 through 5, and Schedules

M-1, M-2, and M-3 to your Illinois return.

Exception no. 1 Ifyouareacorporation,butdonotleU.S.Form1120,youmustattachacopyoftheformthatyoulefederaincluding,U.S.Form1120L,Page1,orU.S.Form1120-PC,Pag(andScheduleA,ifled),1120-POL,1120-H,or1120-SF.

Exception no. 2 Ifyouareacorporationwhosetaxableincoisincludedinaconsolidatedfederaltaxreturn,youmustprovideaproformacopyofU.S.Forms1120,1120-L,1120-PC,andallapplicableschedules,asifyouhadledaseparatefederalreturn

WhenlingyourFormIL-1120,includeonlyformsandschedulesrequiredtosupportyourreturn.Sendcorrespondenceseparately to


TAXPAYER CORRESPONDENCE

PO BOX 19044


What i I participated in a reportable transactio

Ifyouparticipatedinareportabletransaction,includingalistedtransaction,duringthistaxyearandwererequiredtodisclosethattransactiontotheIRS,youarealsorequiredtodisclosethatinformattoIllinois.

YoumustsendustwocopiesoftheformusedtodisclosethetransactiontotheIRS.

Attachonecopytoyourtaxreturn,and

Mailthe2ndcopyto

ILLINOIS DEPARTMENT OF REVENUEPO BOX 19029


What are Illinois Schedules K-1-T and K-1-P?

Illinois Schedule K-1-T,BeneciarysShareofIncomeandDeductiisprovidedfortrustsandestatestosupplyeachbeneciarywithincoamountsthataretaxabletoIllinois.Ifyouareabeneciaryofatrustanestate,youshouldreceiveacompletedIllinoisScheduleK-1-Tan

copy o Illinois Schedule K-1-T(2),BeneciarysInstructions.

Illinois Schedule K-1-P,PartnersorShareholdersShareofIncome,Deductions,Credits,andRecapture,isforpartnershipsandScorporationstosupplyeachpartnerorshareholderwithincomeamountsthataretaxabletoIllinois.IfyouareapartnerinapartnershorashareholderinanScorporation,youshouldreceiveacompletedIllinoisScheduleK-1-PandacopyofIllinois Schedule K-1-P(2),PartnersorShareholdersInstructions.

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Specicinstructionsformostofthelinesareprovidedonthefollowingpages.Linesthatarenotdiscussedintheinstructionsareself-explanatory.

Step 1 Identiy your corporationA All taxpayers: Typeorprintyourlegalbusinessname.Ifyouhaveanamechangefromlastyear,checkthecorrespondingbox.

B Typeorprintyourmailingaddress.Ifyouraddresshaschangedsinceyouledyourlastreturn,orthisisyourrstreturn,checkthebox.

IfyoucheckedtheboxinLineBbecauseyouhaveneverledanIllinoisreturn,youmustalsochecktherstreturnboxinLineC.

C Ifthisisyourrstornalreturn,checktheappropriatebox.

D IfyoucheckednalreturnonLineC,answerthequestionsonLineD.

E I you are fling an Illinois combined return,checktheboxand

attachacompletedIllinoisScheduleUB.Formoreinformation,seeIllinoisScheduleUBinstructions.

I you are a oreign insurer,checktheboxand,ifyouareentitledtoataxreduction,attachacompletedIllinoisScheduleINS.

Ifyouarelingacombinedreturnandoneormoremembersareforeigninsurers,checkbothboxes,andifyourunitarygroupisentitledtoataxreduction,attachacompletedIllinoisScheduleUB/INS.Formoreinformation,seeIllinoisScheduleINSorIllinoisScheduleUB/INS.

SeetheinstructionsforLines50aand51ainordertoclaimthetaxreductioncalculatedonScheduleINSorScheduleUB/INS.

FIfyouarerequiredtodisclosereportabletransactionsandyou

haveattachedfederalForm8886orfederalScheduleM-3,checktheappropriatebox.SeeWhatifIparticipatedinareportabletransaction?formoreinformation.

G Special Apportionment Formulas I you use a specialapportionmentformulabecauseyouarecategorizedasaninsurancecompany,nancialorganization,transportationcompanychecktheappropriatebox.Ifyouarecategorizedasafederallyregulatedexchangeandareelectingtouseaspecialapportionmentformulaforthisyear,checktheappropriatebox.Formoreinformation,seespecicinstructionsforSpecialApportionmentFormulas.

H IfyouareaunitarycompanyandcompletedScheduleUB,marktheboxandattachScheduleUBtoyourreturn.

I IfyouearnedorcancarryforwardcreditsonIllinoisSchedule1299-D,IncomeTaxCredits(forcorporationsandduciaries),youmuchecktheboxonLineIandattachIllinoisSchedule1299-Dtoyourta

return,evenifyouareunabletouseanyofthecreditsinthistaxyearJ IfyouareclaimingabonusdepreciationadditionorsubtractimodicationsonFormIL-1120,marktheboxandattachSchedule4562,SpecialDepreciation,toyourtaxreturn.

K IfyouareclaimingotheradditionorsubtractionmodicationsoFormIL-1120,marktheboxandattachScheduleM,OtherAdditionsandSubtractions(forbusinesses)toyourtaxreturn.

L Ifyouareclaimingrelated-partyexpensesmodicationsonyoFormIL-1120,marktheboxandattachSchedule80/20,Related-PaExpenses,toyourtaxreturn.

M Writeyourfederalemployeridenticationnumber.Ifyouareunitarycompany,writetheFEINofthedesignatedagent.

N Ifyouareamemberofafederalconsolidatedgroup,writetheFEINofthefederalparent.SeeGeneralInformation,Whatisbaseincome/taxableincome?andWhatattachmentsdoIneed?

O WriteyourNorthAmericanIndustryClassicationSystemCode(NAICS).Ifyouareunsureofyourcode,youcanresearchthinformationathttp://www.census.gov/eos/www/naics/orwww.irs.g

P WriteyourIllinoiscorporatele(charter)numberassignedtoyoubytheIllinoisSecretaryofState.Ifyouarelingaunitaryretuwritethecorporatele(charter)numberofthedesignatedagent.

Q IfyoukeepyouraccountingrecordsinalocationdifferentfromtheaddressindicatedonLineB,writethecity,thetwo-letterstateabbreviation,andthezipcodeforthelocationtherecordsarekept.

R Ifyouaremakingtheelectiontotreatallofyourincomeotherthancompensationasbusinessincome,youmustchecktheboxonthislineandwritezeroonStep4,Lines24and32.Thiselection must be made by the extended due date o this return

Once made, the election is irrevocable.

S Indicateyourmethodofaccountingbycheckingtheapproprbox.Youmustusethesameaccountingmethod(e.g., cash oraccrual)andtaxyearthatyouusedforfederalincometaxpurpose

T ChecktheboxifyoumustadjustyourlossorlosscarryoverduetoDischargeofIndebtedness.Formoreinformation,seetheinstructionsforLine36,LossReductionworksheet,andSchedulesNLDorUB/NLD.

Specifc Instructions

What i I need additional assistance or orms?

Ifyouneedadditionalassistance-

Visitourwebsiteattax.illinois.gov.

Writetousat


PO BOX 19044


Call1 800 732-8866 or 217 782-3336(TDD,telecommunicationsdeviceforthedeaf,at 1 800 544-5304).

Ifyouneedadditionalformsorschedules-

Visitourwebsiteattax.illinois.gov. Writetousat


PO BOX 19010


Ourofcehoursare8:00a.m.to5:00p.m.,MondaythroughFrida

Where should I fle?

Ifapaymentisenclosedwithyourreturn,mailyourFormIL-1120to


PO BOX 19028


I a payment is not enclosed,mailyourFormIL-1120to


PO BOX 19008


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U ChecktheboxifyouareacooperativeandcompletedScheduleINLeithertomakearst-timeelectionfortreatmentofincomeortogureyourpatronageandnonpatronageincomeorloss,or i you areREMICthatcompletedScheduleINLtomakeanadjustmenttoIllinoisincome.AttachScheduleINLtoyourtaxreturn.

V ChecktheboxifyouannualizedyourincomeonFormIL-2220andattachFormIL-2220toyourtaxreturn.

You must complete department-issued or previouslyapproved Form IL-1120 and corresponding schedules. Do not

sendacomputerprintoutorspreadsheetswithlinenumbersand

dollaramountsattachedtoablankcopyofthereturn.Step 2 Figure your income or lossInaccordancewithIITA,Section203(e)(2)(E),ifyouarelingaspartofafederalconsolidatedgroup,youmustcomputefederaltaxableincomeasthoughyouhadledaseparatefederalreturn.

Ifyouarelingasacombinedtaxpayer,seeIllinoisScheduleUB,SpecicInstructionsforCompletingFormIL-1120.

Line 1 WritetheamountfromU.S.Form1120,Line30,orequivalent.

Line 2WritetheamountofnetoperatinglossdeductionfromU.S.Form1120,Line29a,orequivalent.

Do not write negative amountsonLines2through8.Ifyou

areclaimingover-accruedtaxes,includethemonScheduleM,Line23.Line 3 WritethefollowingamountsexcludedfromtheamountonLine1thatwerepaidoraccruedtoyouduringthetaxableyear:

Tax-exemptinterestfromU.S.Form1120,ScheduleM-1,Line7(orequivalent).

I you are a lie insurance company,thegrossinvestmentincomeearnedfromfederallytax-exemptsourcesmustbeaddedback.

Alltax-exemptinterestdistributionsreceivedfromregulatedinvestmentcompanies.

Line 4 YoumustaddbackanyamountofIllinoisIncomeandReplacementtaxesthatyoudeductedonyourU.S.Form1120toarriveatyourfederaltaxableincome.Youarenotrequiredtoadd

backtaxesfromotherstatesthatyouincludedasafederaldeduction.

Line 5 WritetheadditionamountcalculatedonFormIL-4562,Line4.Formoreinformation,seeFormIL-4562andinstructions.Attach Form IL-4562 to your Form IL-1120.

Line 6 Writetheinterestorintangibleexpenses,orinsurancepremiumspaidtoanafliatedcompany,totheextenttheseexpensesexceedanytaxabledividendsyoureceivedfromtheafliatedcompanyfromIllinoisSchedule80/20,Line13.Attach Illinois Schedule 80/20to your Form IL-1120.

Afliated Company meansanypersonwhowouldbeamemberofaunitarybusinessgroupwithyou,butcannotbeincludedinthegroupbecause80percentormoreofitsbusinessactivitiesareconductedoutsidetheUnitedStatesorbecauseoftheruleagainstcombininginsurancecompanies,nancialorganizations,ortransportationcompanieswithcompaniesengagedinotherbusinesses.

Intangible expensesmeanroyaltiesandfeespaidforintangibleassets,lossesincurredonsalesorotherdispositionofintangibleassetstoanafliatedcompany,lossesonfactoringordiscountingtransactionswithanafliatedcompany,anddeductibleexpensesincurredinconnectionwiththeacquisition,use,management,orsaleorotherdispositionofanintangibleasset.Intangibleassetsincludepatents,patentapplications,tradenames,trademarks,servicemarks,copyrights,maskworks,tradesecrets,andsimilartypesofintangibleassets.

Someinterestandintangibleexpensesmaybeexemptfromthisadd-backprovision.SeeIllinoisSchedule80/20formoreinformation.

Line 7Ifyouareapartnerinapartnership,ashareholderinanScorporation,orabeneciaryofatrustoranestate,includeyourdistributiveshareofadditionsreceivedfromthepartnership,Scorporation,trust,orestate.Ifyoureceivemultipleschedulesbecauseyouarearecipientfrommultipleentities,youshouldwritethecombinedtotalfromallIllinoisSchedulesK-1-PandK-1-Tyoureceive.Attach a copy o all Illinois Schedules K-1-P and K-1-T yreceived to your Form IL-1120.

ThepartnershiporScorporationisrequiredtosendyouanIllinoisScheduleK-1-PandthetrustorestateisrequiredtosendyouanIllinoisScheduleK-1-T,specicallyidentifyingyourshareofincom

Line 8 Completethe2012IllinoisScheduleM(forbusinesses),gurethecorrectamounttoincludeonLine8.Attach a copy o IllinoSchedule M to your Form IL-1120.ThefollowingareexamplesofitemsthatmustbeaddedtotaxableincomeandareincludedontheIllinoisScheduleM. Ifyouarearegulatedinvestmentcompany,includetheexcess

thenetlong-termcapitalgainforthetaxyear,overtheamountcapitalgaindividendsdesignatedassuchinaccordancewithIRCSection852(b)(3)(C)andanyamountdesignatedunderIRSection852(b)(3)(D),attributabletothetaxyear.

Notes,bonds,debentures,orobligationsissuedbytheGovernmeofGuam,AmericanSamoa,PuertoRico,theNorthernMariana

Islands,ortheVirginIslands.

LloydsplanofoperationslossifreportedonyourbehalfonFoIL-1023-C,CompositeIncomeandReplacementTaxReturn,aincludedinyourfederaltaxableincome.

Ifyoureportedincomefromanassetoractivityasbusinessincomeinprioryears,andreportedanyincomefromthatassetoractivityasnonbusinessincomeonthisreturn,includeonthislinealldeductionsyouclaimedforexpensesconnectedwiththaincomeinthisyearandinyourtwomostrecenttaxyears.SeeIllinoisScheduleNB,NonbusinessIncome,Line11,andIllinoisScheduleNBInstructionsformoreinformation.

Step 3 Figure your base income or loss

AdoubledeductionisprohibitedbyIITA,Section203(g).Youcannodeductthesameitemmorethanoncewhenguringyoursubtraction

Line 10 WritethetotalinterestreceivedoraccruedfromU.S.Treasurybonds,notes,bills,federalagencyobligations,andsavinbondsthatisincludedinyourfederaltaxableincome.YoumaynosubtractanythingthatisnotidentiedinIllinoisPublication101,IncomeExemptfromTax.Thisamountisnetofanybondpremiumamortizationdeductedfederally.

You must attach Illinois Schedule 1299-B, EnterprisZone or Foreign Trade Zone (or sub-zone) Subtractions,to your Form IL-1120 i you have an amount on Lines 11through 15.

Line 11 WritetheEnterpriseZoneorRiverEdgeRedevelopmeZonedividendsubtractionfromIllinoisSchedule1299-B,Line19.

Line 12 WritetheEnterpriseZoneorRiverEdgeRedevelopmZoneinterestsubtractionfromIllinoisSchedule1299-B,Line32.

Line 13WritetheHighImpactBusinessdividendsubtractionfromIllinoisSchedule1299-B,Line22.

Line 14 For fnancial organizations only WritetheHighImpactBusinesswithinaForeignTradeZone(orsub-zone)interestsubtractionfromIllinoisSchedule1299-B,Line35.

Line 15 WritetheamountofanyContributionsubtractionfromIllinoisSchedule1299-B,Line25.

Line 16 WritetheamountofanycontributionmadetoajobtrainingprojectestablishedundertheTaxIncrementAllocationRedevelopmentAct,asamended.Forfurtherinformation,seeIllinCompiledStatutes,Chapter65,paragraph5/11-74.4-1et seq.

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Line 17 WritetheamountshownonIllinoisScheduleJ,Step1,Line15,forforeigndividendsreceived. Attach Illinois Schedule J andU.S. Form 1120, Schedule C (or equivalent) to your Form IL-1120.

YoumustuseIllinoisScheduleJtoguretheforeigndividendgross-up(IRCSection78)includedinyourtaxableincomeifyouareelectingaforeigntaxcreditundertheprovisionsofIRCSection901. Do not includethisdeductioninothersubtractionsonthe2012IllinoisScheduleMorFormIL-1120,Line21.

Line 18 WritethesubtractionallowancefromFormIL-4562,SpecialDepreciation,Line10.Attach Form IL-4562 to your Form IL-

1120.Line 19WritetheamountfromIllinoisSchedule80/20,Line30.Attach Illinois Schedule 80/20 to your Form IL-1120.

YoushoulduseIllinoisSchedule80/20if

youaddedbackinterestpaidtoanafliatedcompanyonStep2,Line6.Youmaysubtractanyinterestreceivedfromthatcompanyduringthistaxyear,uptotheamountofyouradditionforinterestexpensepaidtothatcompany.Also,ifyouaddedbackintangibleexpensesfromatransactionwithanafliatedcompanyonLine6,youmaysubtractanyincomeyoureceivedduringthetaxyearfromsimilartransactionswiththeafliatedcompany,uptotheamountofyouradditionforintangibleexpenseforthatcompany.Tocomputetheamountofthissubtraction,completeIllinoisSchedule80/20.

youareanafliatedcompany,andyoureceivedinterestorintangibleincomefromsomeonewhohadtoaddbacktheinterestandintangibleexpense,orinsurancepremiumsontheirIllinoisSchedule80/20.Youmaysubtractyourinterestorintangibleincomefromthatperson.

Line 20 Writeyourdistributiveshareofsubtractionspassedthroughtoyoubyapartnership,Scorporation,trust,orestate.DonotincludeanyamountspassedthroughthatarereectedonIllinoisSchedule1299-B.Attach a copy o all Illinois Schedules K-1-Pand K-1-T you received to your Form IL-1120.

ThepartnershiporScorporationisrequiredtosendyouanIllinoisScheduleK-1-PandthetrustortheestateisrequiredtosendyouanIllinoisScheduleK-1-T,specicallyidentifyingyourshareofsubtractions.

Line 21 Completethe2012IllinoisScheduleM(forbusinesses)toguretheamounttoincludeonLine21.Attach a copy o IllinoisSchedule M (or businesses) to your Form IL-1120.

You may not subtractanythingthatisnotidentiedbelow,onScheduleM(forbusinesses),orinIllinoisPublication101.SubtractionsallowedonIllinoisScheduleMinclude:

anyexempt-interestdividends,asdenedinIRCSection852(b)(5),paidtoshareholdersforthetaxyear,byyou,asaregulatedinvestmentcompany.

notes,bonds,debentures,orobligationsissuedbytheGovernmentsofGuam,AmericanSamoa,PuertoRico,theNorthernMarianaIslands,ortheVirginIslands,totheextentthatyouwererequiredto

addtheseamountstoyourfederaltaxableincome. Lloydsplanofoperationsincomeifreportedonyourbehalfon

FormIL-1023-Candincludedinyourfederaltaxableincome.

theamountsdisallowedasfederaldeductionsorinterestexpensesunderIRCSections171(a)(2),265,280C,291(a)(3)and832(b)(5)(B)(i).

theamountequaltothedeductionusedtocomputethefederaltaxcreditforrestorationofamountsheldunderclaimofrightunderIRCSection1341.

anyotherincomeincludedonStep2,Line9,exemptfromtaxabyIllinoisbyreasonofitsConstitutionorstatutesorbytheConstitution,treaties,orstatutesoftheUnitedStates.Thisamoisnetofanybondpremiumamortizationdeductedfederally.Fomoreinformation,seeIllinoisPublication101.

Line 23 Thisisyourbaseincomeorloss.Follow the instructioontheformandcheckaboxonLineAorB.YoumustcheckonetheseboxesandfollowtheinstructionsforthatLine.

Check the box on Line A i

allofyourbaseincomeorlossisderivedinsideIllinois;and

youdonothaveanyincomeorlosstoreportonLines24,25,3or33.

I you check the box on Line A, do not complete Step 4.AllofyourbaseincomeorlossisallocabletoIllinois.SkipStep4,writetheamountfromStep3,Line23onStep5,Line35,andcompletetheremainderofthereturn.

Check the box on Line B i any o the ollowing apply

yourbaseincomeorlossisderivedinsideandoutsideIllinois;

allofyourbaseincomeorlossisderivedoutsideIllinois;or

youhaveincomeorlosstoreportonLines24,25,32,or33.

I you check the box on Line B, you must complete all lines

o Step 4.SubmittingFormIL-1120withanincompleteStep4,includingLines28,29,and30mayresultinadelayinprocessing

yourreturn,furthercorrespondence,andyoumayberequiredtosubmitfurtherinformationtosupportyourling.SeetheSpecicInstructionsforStep4formoreinformation.

Step 4 Figure your income allocable to Illino

General Inormation

Who must complete Step 4?

You must checktheboxonLineBandcompletealllinesofStep4anyportionofLine23,baseincomeorloss,isderivedoutsideIllinoisoryouhaveanyincomeorlosstoreportonLines24,25,32,or33.

Ifyoudonotcompleteall ofStep4,Lines24through34,wemayissanoticeanddemandproposing100percentofincomebeingallocattoIllinois,orinthecaseofalossreturn,anoticeindicatingnoneof

yourlossasbeingallocatedtoIllinois.

Inordertoproperlyallocateyourbaseincomeorloss,youneedtodeterminewhatportionofthetotalbaseincomeisbusinessincomorlossthatistobeapportionedamongallthestatesinwhichyoubusiness,andwhatportionisnonbusinessincomeorlossthatist

beallocatedtoaparticularstate.

Defnitions

Allreferencestoincomeincludelosses.ThefollowingdenitionsmaybehelpfulincompletingStep4ofFormIL-1120.

Business income means all income (other than compensation) that

maybeapportionedbyformulaamongthestatesinwhichyouaredoingbusinesswithoutviolatingtheConstitutionoftheUnitedStates

Allincomeofacorporationisbusinessincomeunlessitisclearlyattributabletoonlyonestateandisearnedorreceivedthroughactivittotallyunrelatedtoanybusinessyouareconductinginmorethanonestate.Businessincomeisnetofalldeductionsattributabletothaincome.

Commercial domicileistheprincipalplacewhereyourtradeorbusinessisdirectedormanaged.

Nonbusiness incomemeansallincomeotherthanbusinessincomorcompensation.Formoreinformationaboutthedifferenttypesofnonbusinessincome,seetheinstructionsforIllinoisScheduleNB,NonbusinessIncome.

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Taxable in other statesmeansyouaresubjecttoandactuallypaytaxinanotherstate.Taxmeansnetincometax,franchisetaxmeasuredbynetincome,franchisetaxfortheprivilegeofdoingbusiness,andcorporatestocktax.Youareconsideredtaxableinanotherstateifthatstatehasjurisdictiontosubjectyoutoanetincometax,eventhoughthatstatedoesnotimposesuchatax.Thisdenitionisforpurposesofallocatingnonbusinessincomeand

apportioningbusinessincomeinsideoroutsideIllinois.

Line by Line Instructions

YoumustcompletealllinesofStep4.

Line 24 Writetheamountofallnonbusinessincomeorlossincludedinbaseincome,netofanyrelateddeductions,plusanyrecapturedbusinessexpensesfromIllinoisScheduleNB,ColumnA.IncludeanynonbusinessincomefromIllinoisSchedulesK-1-PorK-1-T.Attach Illinois Schedule NB and all Illinois Schedules

K-1-P or K-1-T you received to your Form IL-1120. Ifyoudonothaveanamounttoreportonthisline,enterzero.

Ifyouaremakingtheelectiontotreatallincomeotherthancompensationasbusinessincome,youmustchecktheboxinStep1,LineR,andwrite0hereandonLine32.This election must be madeby the extended due date o this return. Once made, the election is

irrevocable.

Line 25 Writetheamountofallnon-unitarybusinessincomeor

lossincludedinbaseincomereceivedfromanypartnership,trust,orestate,ofwhichyouareapartnerorabeneciary.SeeSchedulesK-1-P(2)orK-1-T(2)formoreinformation.Attach a copy o allIllinois Schedules K-1-P and K-1-T you received to your Form IL-

1120. Ifyoudonothaveanamounttoreportonthisline,enterzero.

ThepartnershiporSCorporationisrequiredtosendyouan

IllinoisScheduleK-1-PandScheduleK-1-P(2)andthetrustortheestateisrequiredtosendyouanIllinoisScheduleK-1-TandScheduleK-1-T(2),specicallyidentifyingyourshareofincome.

Ifyouareapartnerengagedinaunitarybusinesswithyourpartnership,youmustincludeyourdistributableshareofthepartnershipsbusinessincomeinyourbusinessincome.DonotsubtractthisbusinessincomeonLine25.

Lines 28 through 30

YoumustcompleteLines28through30ifanyofthefollowingapply

yourbusinessincomeorlossisderivedinsideandoutsideIllinois;

allofyourbusinessincomeorlossisderivedoutsideIllinois;or

youhaveincomeorlosstoreportonLines24,25,32,or33.

FollowspecicinstructionsbelowforLines28through30.

Ifyouareaninsurancecompany,nancialorganization,transportationcompany,orfederallyregulatedexchange(electingtouseaspecialapportionmentformula),checktheappropriateboxinStep1,LineG(insurancecompany,nancialorganization,transportationcompany,orfederallyregulatedexchange)andseeSpecialApportionmentFormulasintheseinstructions.

Ifyouareapartnerengagedinaunitarybusinesswithyourpartnership,youmustincludeyourdistributiveshareoftheeverywhereandIllinoissalesfactorsfromthepartnershipinyoureverywhereandIllinoissalesfactors.Formoreinformation,seetheIllinoisIncomeTaxRegulations,Section100.3380(d).

Line 28 Writeyourtotalsaleseverywhere.

Line 29 WriteyourtotalsalesinsideIllinois.

Lines28and29cannotbelessthanzero.TheamountonLine29cannotexceedtheamountonLine28.

IfyoucheckedtheboxonLine23BanddonotcompleteLines28and29wemayissueanoticeanddemandproposing100percentofincomebeingallocatedtoIllinois,orinthecaseofalossreturn,anoticeindicatingnoneofyourlossasbeingallocatedtoIllinois.

Includegrossreceiptsfromthelicense,saleorotherdispositionofpatents,copyrights,trademarks,andsimilaritemsofintangiblepersonalpropertyinthenumeratoranddenominatorofyoursalesactor only i these gross receipts are more than 50 percent o the

totalgrossreceiptsincludedingrossincomeforthistaxyearandeachofthetwoimmediatelyprecedingtaxyears.

Donotincludethefollowingitemsofincomeinthenumeratorordenominatorofyoursalesfactor:

dividends;

amountsincludedunderIRCSection78;

subpartFincomeasdenedinIRCSection952;and

anyitemofincomeexcludedordeductedfrombaseincome.

Formoreinformationonwhatshouldbeincludedinthenumeratordenominatorofyoursalesfactor,seeIllinoisIncomeTaxRegulatioSections100.3370and100.3380.

SalesoftangiblepersonalpropertyareinIllinoisif

thepropertyisdeliveredorshippedfromanywheretoapurchasinIllinois,otherthantheUnitedStatesgovernment,regardlessofthef.o.b.pointorotherconditionsofthesale;

thepropertyisshippedfromIllinoistoanyplaceandthepurchaistheUnitedStatesgovernment;

thepropertyisshippedfromIllinoistoanotherstateandyouarenottaxableinthestateofthepurchaser;or

yoursalespersonoperatesoutofanofceinIllinois,andthepropesoldbythesalespersonisshippedfromastateinwhichyouarentaxable,toastateinwhichyouarenottaxable.

Forradioandtelevisionbroadcasting(includingcableandsatellitebroadcasting),thefollowingsalesareinIllinois:

AdvertisingrevenuereceivedfromanadvertiserwhoseheadquarisinIllinois.

Feesreceivedbyabroadcasterfromitsviewersorlistenersin

Illinois. Inthecaseoffeesreceivedbyabroadcasterfromtheproducerorotherownerofthecontentsofaprogram,thepercentageofthefeesequaltothepercentageofthebroadcastsviewingorlisteninaudiencelocatedinIllinois.

Inthecaseofapersonwhoownsthecontentsofaprogramanwhoprovidesthecontentstoabroadcasterforafeeorothercharge,thefeesreceivedforthatprogramfromabroadcasterlocatedinIllinois.

Ifthesaleseverywhereamountincludesgrossreceiptsfromthelicensing,sale,orotherdispositionofpatents,copyrights,trademarksandothersimilaritemsofintangiblepersonalproperty,andthereceiparenotcoveredbythebroadcastingrules,thenthesereceiptsshouldbeattributedtoIllinoistotheextenttheitemisusedinIllinoisduringtyearthegrossreceiptsareincludedingrossincome.AnitemisusedIllinois i

apatentisemployedinproduction,fabrication,manufacturing,otherprocessinginIllinoisorifthepatentedproductisproduceinIllinois.

copyrightedmaterialisprintedorotherpublicationsoriginatedIllinois.

thecommercialdomicileofthelicenseeorpurchaserofatrademarkorotheritemofintangiblepersonalpropertyisin Illino

Ifyoucannotdeterminefromyourbooksandrecordsinwhstateanitemisused,donotincludethegrossreceiptsfromthatiteminthenumeratororthedenominatorofthesalesfactor.

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Forsalesoftelecommunicationsservices,thefollowingsalesareinIllinois:

salesoftelecommunicationsservicesoldonacall-by-callbasis,wherethecallbothoriginatesandterminatesinIllinois,orthecalleitheroriginatesorterminatesinIllinoisandthecustomersserviceaddressisinIllinois;

retailsalesofpostpaidtelecommunicationsserviceifthepointoforiginationofthesignalisinIllinois;

retailsalesofprepaidtelecommunicationsservicewherethepurchaserreceivestheprepaidcardorothermeansofconveyanceatalocationinIllinois;

chargesimposedatachannelterminationpointinIllinois;

chargesforchannelmileagebetweentwochannelterminationpointsinIllinois;

chargesforchannelmileagebetweenoneormorechannelterminationpointsinIllinoisandoneormorechannelterminationpointsoutsideIllinois,timesthenumberofchannelterminationpointsinIllinoisdividedbytotalterminationchannels;

chargesforservicesancillarytosalesofservicesinIllinois.Ifyouprovideancillaryservices,butcannotdeterminewherethesalesoftherelatedservicesarelocated,yoursalesareinIllinoisifyourcustomerisinIllinois;

accessfeeschargedtoareselleroftelecommunicationforacallthatbothoriginatesandterminatesinIllinois;

50percentofaccessfeeschargedtoareselleroftelecommunications services or an interstate call that originates

orterminatesinIllinois;

enduseraccesslinecharges,ifthecustomersserviceaddressisinIllinois.

Formoreinformationsee86Ill.Adm.Code,Section100.3371.

Sales,otherthansalesoftangiblepersonalpropertyortelecommunicationsservice,andgrossreceiptsfrombroadcasting,orthelicensing,sale,orotherdispositionofpatents,copyrights,trademarks,andsimilaritemsofintangiblepersonalproperty,areinIllinois as ollows:

salesorleasesofrealpropertyinIllinois;

leasesorrentalsoftangiblepersonalproperty,totheextentitislocatedinIllinoisduringtherentalperiod;

interest,netgains,andotheritemsofincomefromintangiblepersonalpropertyreceivedbyataxpayerwhoisadealerfromacustomerwhoisaresidentofIllinois(forindividuals)orwhoiscommerciallydomiciledinIllinois(forallothercustomers).Ataxpayerwithoutactualknowledgeoftheresidenceorcommercialdomicileofacustomermayusethecustomersbillingaddress.

interest,netgains,andotheritemsofincomefromintangiblepersonalpropertyreceivedbyataxpayerwhoisnotadealerinthatproperty,iftheincome-producingactivityisperformedinIllinoisoriftheincome-producingactivityisperformedinsideanoutsideIllinois,andagreaterproportionoftheincome-producinactivityisperformedinsideIllinoisratherthanoutsideIllinois,basedonperformancecosts;

inallothercases,iftheservicesarereceivedinIllinois.

Formoreinformation,see86Ill.Adm.Code,Section100.3370.

Ifyouuseaspecialapportionmentformula,seeSpecial

ApportionmentFormulasintheseinstructions.Line 30 DivideLine29byLine28andwritetheresult,roundetosixdecimalplaces.

IfyoucheckedtheboxonLine23BanddonotcompleteLine30wemayissueanoticeanddemandproposing100percentoyourincomebeingallocatedtoIllinois,orinthecaseofalossreturnnoticeindicatingnoneofyourlossasbeingallocatedtoIllinois.

Line 31 Followtheinstructionsontheform.IfyoucheckedthboxonLine23BanddidnotcompleteLines28,29,or30wemay

propose100percentofyourincomeasbeingallocabletoIllino

proposenoneofyourlossasbeingallocabletoIllinois.

Line 32 WritetheamountofnonbusinessincomeorlossallocatoIllinoisfromIllinoisScheduleNB,ColumnB.IncludeanynonbusineincomeandrecapturedbusinessexpensesfromIllinoisSchedulesK-1-PorK-1-T.Attach a copy o Schedule NB and all IllinoisSchedules K-1-P and K-1-T you received to your Form IL-1120. I

youdonothaveanamounttoreportonthisline,enterzero.

IfyoucheckedtheboxinStep1,LineR,makingtheelectiontotreatallofyourincomeotherthancompensationasbusinessincomthenwrite0onLine32.

Line 33 WritetheamountofincomeorlossreportedonStep4,Line25thatisapportionabletoIllinoisasreportedbythetrust,estateornon-unitarypartnershiponIllinoisSchedulesK-1-PorK-1-T.SeeSchedulesK-1-P(2)orK-1-T(2)formoreinformation.Attach a copo all Illinois Schedules K-1-P and K-1-T you received to your Fo

IL-1120. Ifyoudonothaveanamounttoreportonthisline,enterzer

Step 5 Figure your net income

Line 35 Followtheinstructionsontheform.Ifthisamountisaloss,youmaybeallowedtocarryitforwardtootheryearsasanIllino

netlossdeduction(NLD).

Loss Reduction Worksheet

1 Writetheamountofthereductiontoyourfederalnetoperatinglosses fromfederalForm982.Combinedgroupsseeinstructionsbelow. 1 _________________

2Writeyourincomeallocationratio.Seeinstructions.

2 _________________3 MultiplytheamountonLine1byLine2.Thisisyourreductionamount.WritetheresulthereandonFormIL-1120,Line36. 3 _________________

Line 1 Combinedgroupsmustaddtheamountoffederalnetoperatinglossreductionsforeachgroupmember.Allothers,followthe

instructionsinLine1.

Line 2 Yourincomeallocationratioiscalculatedbydividingtheamountofdebtcancellationincomeexcludedfromyourgrossincome

thatwouldhavebeenallocatedorapportionedtoIllinoisundertheIITA

ifitwasnotexcludedbythetotalamountofdebtcancellationincome

excludedfromyourgrossincome.Ifallofyourdebtcancellationincome

wouldhavebeenbusinessincome,usetheapportionmentfactoryou

calculatedonthereturnforthetaxyearofthedebtcancellation.

Line 3 Followtheinstructionsontheform.

Ifoneormoreofyourcombinedgroupmembersisincludedonafed

consolidatedincometaxreturn,theamountofthereductionstothe

membersfederalnetoperatinglossistheamountoftheconsolidated

netoperatinglossattributabletothatmemberthatisreducedunder

Section108(b)andTreasuryRegulationsSection1.1502-28.

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Line 36 IfyouwererequiredtoreducethenetoperatinglossreportedonyourfederalForm1120becauseyouexcludedany

dischargeofindebtednessincomefromthistaxyearsgrossincome,

thenyoumayberequiredtoreducethenetlossreportedonLine35.

Usetheworksheetonpage9togureyourlossreduction. Attach a

copy o your ederal Form 982, Reduction o Tax Attributes Due

to Discharge o Indebtedness, to your Form IL-1120. For more

information,seedepartmentregulationsSection100.2310(c).

IfyouareacombinedgroupreportingacombinednetlossonLine35,

youmayberequiredtoreducethislossifoneormoreofyourgroup

membersexcludeddischargeofindebtednessincomeandwasrequiredtoreduceafederalnetoperatinglossincurredforthistaxyear.

IfyoualsohaveIllinoisnetoperatinglosscarryoverstothetax

yearofthedebtcancellation,youmayalsoberequiredtoreducethose

carryovers.SeeScheduleNLDorUB/NLDformoreinformation.

Line 37 I you have a discharge o indebtedness adjustment onLine36,addLines35(anegativenumber)and36(apositivenumber),andwritetheresultonthisline.Thisamountcannotbegreaterthanzero.

I you do not have a discharge o indebtedness adjustment,writezeroonLine36andtheamountfromLine35onLine37.

Line 38 WriteyourIllinoisnetlossdeductioncarryforwardfrom

IllinoisScheduleNLD,Line7,orIllinoisScheduleUB/NLD,Step3,Line26.Attach Illinois Schedule NLD or unitary Illinois Schedule

UB/NLD to your Form IL-1120.

FortaxyearsendingonorafterDecember31,2012,andbeforeDecember31,2014,corporations,otherthanScorporations,

areallowedanIllinoisnetlossdeduction(NLD)uptoamaximumof$100,000.ScheduleNLDandScheduleUB/NLDhavebeenredesigned

toaccountforthislimit.Pleaseusetheschedulespecictoyourtaxyear.

Ifyouareacooperativeandyouseparateyourpatronageandnonpatronageincomeorloss,completeScheduleINLandfollowtheinstructionsforcomputationofyourIllinoisnetlossdeductionandhow

tocompleteScheduleNLD.

Step 6 Figure your replacement tax atercredits

Line 41 WriteyourrecaptureofinvestmentcreditsfromIllinoisSchedule4255,RecaptureofInvestmentTaxCredits,Step4,ColumnC,Line18.

IfyouclaimedanyIllinoisinvestmenttaxcreditsinaprioryearonFormIL-477,ReplacementTaxInvestmentCredits,andanyofthepropertywasdisqualiedwithin48monthsofbeingplacedinservice,youmustuseIllinoisSchedule4255tocomputetheamountofrecapture.Creditmustberecapturedintheyearthepropertybecamedisqualied.Formoreinformation,seeSchedule4255instructions.

Line 43 WritetheamountfromFormIL-477,Step1,Line11.Attach Form IL-477 to your Form IL-1120.

Youmayclaimareplacementtaxinvestmentcreditof.5percent(.005)ofthebasisofqualiedpropertyplacedinserviceinIllinoisduringthetaxyear.

Anadditionalcreditofupto.5percent(.005)ofthebasisofqualiedpropertyisavailableifyourIllinoisbaseemploymentincreasedby1percent(.01)ormoreovertheprecedingyear,orifyourbusinessisnewtoIllinois.Excesscreditmaybecarriedforwardforveyearsfollowingtheexcesscredityear.Formoreinformation,see

FormIL-477instructions.

Step 7 Figure your income tax ater credits

Line 46 WriteyourrecaptureofinvestmentcreditsfromIllinoisSchedule4255,Step4,ColumnsAandB,Line18.

IfyouclaimedanEnterpriseZoneCreditorHighImpactBusinessInvestmentCreditinaprioryearonIllinoisSchedule1299-D,IncoTaxCredits,andanyofthepropertybecomesdisqualied,youmuuseIllinoisSchedule4255tocomputetheamountofrecapture.Creditmustberecapturedintheyearinwhichthepropertybecamdisqualied.Formoreinformation,seeIllinoisSchedule4255.

Line 48 WritetheamountfromIllinoisSchedule1299-D,StepLine27.ThetotalofallcreditsislimitedtothetotalincometaxshoonLine47.Attach Illinois Schedule 1299-D to your Form IL-11Formoreinformation,seeIllinoisSchedule1299-DInstructions.

TheTECH-PREPYouthVocationalProgramsCreditandtheDependentCareAssistanceProgramTaxCredit,areavailabletotaxpayersprimarilyengagedinmanufacturing.Anyexcesscreditmbecarriedforwardfortwo yearsfollowingtheexcesscredityear.

TECH-PREP Youth Vocational Programs Credit TheprogramsmustbecertiedasqualifyingTECH-PREPprogrambytheStateBoardofEducation.Thecreditisforanamountequalto20percent(.20)ofyourdirectpayrollexpendituresforcooperativesecondaryschoolyouthvocationalprogramsinIllinois.ThepayrollexpendituresmustnothavebeenclaimedfotheTrainingExpenseCredit.Youalsomayclaimanadditionalcreditof20percent(.20)forpersonalservicesrenderedbyaTECH-PREPstudentorinstructorthatwouldbesubjecttowithholdingiftheywereemployedbyyouandnoothercreditis

claimedbytheactualemployer. Dependent Care Assistance Program Credit Acreditof5

percent(.05)oftheamountofexpendituresreported,underIRCSection129(d)(7),toprovideanon-sitefacilitydependentcareassistanceprogramasdenedinIRCSection129.

Thefollowingcreditsarealsoavailableandmaybecarriedforwarfve yearsfollowingtheexcesscredityear:

Film Production Services Tax Credit BusinessesinthelindustrymayreceiveatransferablecreditforIllinoisproductionexpensesincurredinaprojectthathasbeenapprovedbytheIllinoisDepartmentofCommerceandEconomicOpportunity(DCEO).CreditsearnedintaxyearsendingpriortoJuly11,20maynotbecarriedover,whilecreditsearnedinlateryearsmay

becarriedforwardveyears. Employee Child Care Tax Credit Fortaxyearsendingon or a

December 31, 2007,thiscreditisatwo-partcreditandisavailablecorporationswhoprovideachildcarefacility,locatedinIllinois,forthchildrenofitsemployees.Therstpartallowsacreditof30percent(.30)ofthestart-upcostsspentbyyoutoprovideachildcarefaciliforthechildrenofyouremployees.Thesecondpartallowsacredito5percent(.05)oftheannualamountpaidbyyoutoprovideachildcarefacilityforyouremployeeschildren.The5percent(.05)creditcannotbeclaimediftheDependentCareAssistanceProgramTaxCreditisclaimed.

Jobs Tax Credit Acreditof$500pereligibleemployeehiredworkinanIllinoisriveredgeredevelopmentzoneorforeigntradzone(orsub-zone)duringthetaxyear.

Employeeshiredinanenterprisezoneintaxyears endingonorafterAugust7,2012,arenolongereligible employeesforthepurposesofthiscredit.

Enterprise Zone Investment Credit Acreditof.5percent(.00ofthebasisofqualiedpropertyplacedinserviceinanIllinoisenterprisezoneduringthetaxyear.

River Edge Redevelopment Zone Investment Credit FortaxyearsbeginningonorafterJanuary1,2007,acreditof.5percent(.005)ofthebasisofqualiedpropertyplacedinserviceinanIllinoisriveredgeredevelopmentzoneduringthetaxyear.

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High Impact Business Investment Credit Acreditof.5percent(.005)ofthebasisofqualiedpropertyplacedinserviceinIllinoisbyyouduringyourtaxyearasaHighImpactBusiness,certiedassuchbyDCEO.ThiscreditisavailableonlyafteryouhavemettheminimuminvestmentrequiredbytheIllinoisEnterpriseZoneAct.

Tax Credit or Aordable Housing Donations Acreditof50percent(.50)oftheamountofthedonationataxpayermakesunderSection7.28oftheIllinoisHousingDevelopmentActforthedevelopmentofaffordablehousinginIllinois.

Economic Development or a Growing Economy (EDGE) Tax

Credit AcreditisavailabletotaxpayerswhohaveenteredintoanagreementwithDCEOundertheEconomicDevelopmentforaGrowingEconomyTaxCreditAct.ThecreditisavailabletobusinesseslocatedwithinIllinoisorbusinessesplanningtolocatewithinIllinois,whoareparticipatinginaneconomicdevelopmentproject.

Research and Development Credit Acreditof6.5percent(.065)ofthequalifyingexpendituresforincreasingresearchactivitiesconductedinIllinois,andthatareallowableunderIRCSection41.IfyoudidnottakeacreditforwhichyouwereentitledonorafterJanuary1,2011,eitherasanewcreditoracreditcarryforward,youwillneedtoleanamendedreturntoclaimthatcredit.

Youmayonlyusecreditthatwasearnedfortaxyears

endingonorafterDecember31,2005.AnycreditorcreditcarryforwardthatwasearnedpriortoDecember31,2004maynotbeused.

Economic Development or a Growing Economy (EDGE) TaxCredit AcreditisavailabletotaxpayerswhohaveenteredintoanagreementwithDCEOundertheEconomicDevelopmentforaGrowingEconomyTaxCreditAct.ThecreditisavailabletobusinesseslocatedwithinIllinoisorbusinessesplanningtolocatewithinIllinois,whoareparticipatinginaneconomicdevelopmentproject.

River Edge Redevelopment Zone Remediation Credit AcreditfortaxyearsendingonorafterDecember31,2006,forunreimbursedeligibleremediationcostsincurredinaSiteRemediationProgramundertheEnvironmentalProtectionActinariveredgeredevelopmentzone.SeeIllinoisSchedule1299-DinstructionsorcontacttheIllinois

EnvironmentalProtectionAgencyformoreinformation.

Ex-Felons Jobs Credit For tax years beginning aterDecember 31, 2006,theEx-FelonsJobsCreditis5percent(.05)ofqualiedwagespaidduringthetaxableyeartoanemployeewhoisaqualiedex-felon.Thetotalcreditsforallyearsforwagespaidtoaparticularex-felonmaynotexceed$600.

Veterans Jobs Credit For tax years ending on or ater

December 31, 2012, and on or beore December 31, 2016,the

VeteransJobsCreditis

thelesserof10percent(.10)ofqualiedwagespaid

duringthetaxableyeartoaqualiedveteran,or$1,200

perqualiedveteran;or

thelesserof20percent(.20)ofqualiedwagespaid

duringthetaxableyeartoaqualiedunemployed veteran,or$5,000perqualiedunemployedveteran.

SeetheinstructionsforSchedule1299-Dformoreinformation,

includingthedenitionsofaqualiedveteranandaqualied

unemployedveteran.

Student-Assistance Contribution Credit For tax years

ending on or ater December 31, 2009,thiscreditisallowedto

employerswhomakeamatchingcontributiontoaqualiedIllinois

pre-paidtuitionprogramonbehalfofemployees.QualiedIllinois

pre-paidtuitionplansinclude:

Illinois Bright Start Savings Pool,

Illinois Bright Directions Savings Pool, or

College Illinois Pre-paid Tuition Program.

Thecreditamountis25percent(.25)ofthecontributionforeac

employee,or$500peremployee,whicheverisless.

Angel Investment Credit For tax years beginning on or ate

January 1, 2011,and ending on or beore December 31, 2016,

creditmaybeclaimedinanamountequalto25percent(.25)ofa

investmentmadedirectlyinaqualiednewbusiness.Thecreditm

notreducetaxbelowzeroandmaybecarriedforwardforveyea

ThecreditisissuedbyDCEOandacopyofyourcreditcertica

fromDCEOmustbeattachedtoyourreturn.

New Markets CreditFor qualifed investments made betwee2008 and 2017inacommunitydevelopmententity,acreditisallow

onthesecondanniversaryoftheinvestment(taxyearsendingon

orafterDecember31,2010),andthenextfouranniversaries.The

creditmaynotreducetaxbelowzeroandmaybecarriedforwardfo

veyears.ThecreditisissuedbyDCEOandacopyofyourcredit

certicatefromDCEOmustbeattachedtoyourreturn.

River Edge Historic Preservation CreditFor tax years

beginning on or ater January 1, 2012,acreditforrestoringcert

typesofrealestateinaRiverEdgeRedevelopmentZonemaybe

claimedifyouenteredintoanagreementwithDCEO.Thecreditma

notreducetaxbelowzeroandmaybecarriedforwardforveyears

ThecreditisissuedbyDCEOandacopyofyourcreditcerticate

fromDCEOmustbeattachedtoyourreturn. Live Theater Production CreditFor tax years beginning on

or ater January 1, 2012,acreditforvariouscostsassociated

withtheproductionoflivetheatermaybeclaimedifyouapplied

withandwereapprovedbyDCEO.Thecreditmaynotreducet

belowzeroandmaybecarriedforwardforveyears.Thecred

issuedbyDCEOandacopyofyourcreditcerticatefromDCE

mustbeattachedtoyourreturn.

Hospital CreditFor tax years ending on or ater December 3

2012, acreditisavailabletotheownerofahospitalthatislicensed

undertheHospitalLicensingAct,andisnotexemptfromfederal

incometaxesundertheInternalRevenueCode.Thecredit isan

amountequaltothelesseroftheamountofrealpropertytaxes

paidonIllinoispropertyusedforhospitalpurposesduringtheptaxyearorthecostoffreeordiscountedservicesprovideddur

thetaxyearatIllinoislocationsinaccordancewiththehospital

charitablenancialassistancepolicy,measuredatcost.Seeth

instructionsforSchedule1299-Dformoreinformation.

Historic Preservation CreditAcreditforrestoringcertaintypes

ofrealestateinthePeoriaareamaybeclaimedifyouenteredintoa

agreementwithDCEO.Thecreditmaynotreducetaxbelowzeroa

maybecarriedforwardfortenyears.ThecreditisissuedbyDCEO

andacopyofyourcreditcerticatemustbeattachedtoyourreturn.

Step 8 Figure your net income andreplacement tax and reund or balance due

I you are a oreign insurer, the process or claimingthe Foreign Insurer tax reduction has changed. Review the

instructions below.

For non-unitary oreign insurers

completeFormIL-1120,Steps1through7,beforecompletingIllinoisScheduleINS;

completeScheduleINS;

reportyourforeigninsurerreplacementtaxreductiononStepLine50a;and

reportyourforeigninsurerincometaxreductiononStep8,Li51a.

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For combined unitary flers with one or more members who are

oreign insurers

completeFormIL-1120,Steps1through7,beforecompletingIllinoisScheduleUB/INS;

completeallstepsofyourScheduleUB,beforecompletingIllinoisScheduleUB/INS;

completeScheduleUB/INS;

reportyourforeigninsurerreplacementtaxreductiononStep8,Line50a;and

reportyourforeigninsurerincometaxreductiononStep8,Line51a.


Ifyouareaforeigninsurerdonotapplyataxreductiontothisline.FollowtheinstructionsaboveandonScheduleINSorScheduleUB/INS.

Line 50a WriteyourforeigninsurerreplacementtaxreductionfromScheduleINS,Step3,Line16a,orScheduleUB/INS,Step6,Line57b.Attach Schedule INS or Schedule UB/INS.

Line 50b SubtractLine50afromLine50andwritetheresultonthisline.IfLine50aisblank,writetheamountfromLine50onLine50b.Thisisyournetreplacementtax.


Ifyouareaforeigninsurerdonotapplyataxreductiontothisline.FollowtheinstructionsaboveandonScheduleINSorScheduleUB/INS.

Line 51a WriteyourforeigninsurerincometaxreductionfromScheduleINS,Step3,Line18a,orScheduleUB/INS,Step6,Line68b.Attach Schedule INS or Schedule UB/INS.

Line 51b SubtractLine51afromLine51andwritetheresultonthisline.IfLine51aisblank,writetheamountfromLine51onLine51b.Thisisyournetincometax.

Line 52 AddLines50band51bandwritethetotalonthisline.Thisisyourtotalnetincomeandreplacementtaxes.

Line 53 Writetheamountofanyself-assessedunderpaymentofestimatedtaxpenaltyyouguredonFormIL-2220,ComputationofPenaltiesforBusinesses,Step4,Line20.

IfyouannualizedyourincomeinStep6ofFormIL-2220,besuretomarktheboxinStep1,LineVofthisFormIL-1120. Attach acompleted Form IL-2220 to your Form IL-1120.

IfyoudonotneedtoannualizeyourincomeanddonotwishtocompleteFormIL-2220,wewillcomputeanypenaltyorinterestdueandnotifyyou.

Line 55a Writetheamountofanyoverpaymentfromyourpreviousyearstaxreturnthatyourequestedtobeappliedtothisyearstaxreturn.

Line 55bWritethetotalamountofestimatedpaymentsyou

madeduringthistaxyear.Line 55cWritetheamountofIllinoisIncomeandReplacementTaxpaidwithFormIL-505-B.

Line 55d WritetheamountofIllinoispass-throughentitypaymentsmadeonyourbehalfbypartnerships,Scorporations,ortrusts,asreportedtoyouonScheduleK-1-PorK-1-T.IfyouhavemorethanoneScheduleK-1-PorK-1-T,addtheamountsofalltheschedulesandwritethetotalonLine55d.Attach copies o theSchedules K-1-P and K-1-T you received rom the pass-through

entities to your Form IL-1120.

Line 55eWritetheamountofanygamblingwithholdingshownonFormW-2G.Attach Forms W-2G.

Lines 56 through 58 Followtheinstructionsontheform.Yorefundwillnotbeissuedifyoudonotleaprocessablereturn.

Yourrefundorcreditcarryforwardmaybereducedbyustosatisfyanyunpaidtax,penalty,andinterestdueforthisyearoranyprecedingyear.Ifwereduceyourcreditcarryforward,itmayresultinpenaltyinthesucceedingyearforunderpaidestimatedtax.

Line 60 Followtheinstructionsontheform.Thisisyouramountoftaxduethatmustbepaidinfullif$1ormore.Ifyouarenotpayingelectronically,completeapaymentvoucher,FormIL-1120-V,makeyocheckormoneyorderpayableto Illinois Department o Revenueand attach them to the ront o the return.

I you are paying electronically do notcompleteandattacpaymentvoucher.

Wewillcomputeanypenaltyandinterestdueandnotifyyou.SeeGeneralInformation,Whatarethepenaltiesandinterest?

Youshouldalsowrite the amount you are paying in the boxlocated on the top o Page 1oftheFormIL-1120.

Step 9 Signature, date, and preparersinormation

Youmustsignanddateyourreturn.Ifyoudonotsignyourreturn,itwillnotbeconsideredledandyoumaybesubjecttononfler penalty.

Ifyouwanttoallowthepreparerlistedinthissteptodiscussthreturnwithus,checkthebox.Thisauthorizationwillallowyoupreparertoansweranyquestionsthatariseduringtheprocessofyourreturn,calluswithquestionsaboutyourreturn,andreceiveorrespondtonoticeswesend.Theauthorizationwillautomaticallyendnolaterthantheduedateforlingyour2013taxreturn(excludingextensions.)Youmayrevoketheauthorizationatanytimebycallingorwritingus.

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IL-1120 Instructions (R-12/12) Page13o

CertainbusinessesthatderivetheirincomefrominsideandoutsideIllinoisrequireaspecialapportionmentformula.ThefollowingdenitionswillhelpincompletingStep4.

Direct writing company aninsurancecompanywhosedirectinsurance premiums are 50 percent or more o its total insurancepremiums.

Reinsurer an insurance company whose reinsurance premiums

assumedaremorethan50percentofitstotalinsurancepremiums.

Total insurance premiums thesumofbothdirectinsurancepremiumsandreinsurancepremiumsassumedwithoutanyreductionforreinsuranceceded.

Annual statement theannualstatementrequiredtobeledwiththedirectorofinsuranceofthestateofIllinois.

Lie insurance company aninsurancecompanytaxableunderIRCSection801,forthetaxyear.

Nonlie mutual and nonlie stock insurance companies an

insurancecompanytaxableunderIRCSection831,forthetaxyear.

Business income SeeStep4-GeneralInstructions,BusinessincomeunderDenitions.

Financial organization anybank,bankholdingcompany,trustcompany,savingsbank,industrialbank,landbank,safedepositcompany,privatebanker,savingsandloanassociation,buildingandloanassociation,creditunion,currencyexchange,cooperativebank,smallloancompany,salesnancecompany,investmentcompany,oranypersonwhichisownedbyabankorbankholdingcompany.

Revenue miles A revenue mile is the transportation o one

passenger,oronenettonoffreight,thedistanceofonemile.

Federally regulated exchange Afederallyregulatedexchangeis:

aregisteredentityasdenedin7U.S.C.Section1a(40) (A),(B),or(C);

anexchangeorclearingagencyasdenedin15U.S.C. Section78c(a)(1)or(23);

anyentityregulatedunderanysuccessorregulatory structuretoaregisteredentity,exchange,orclearing agency;or

anymemberofthesameunitarybusinessgroup (determinedwithoutregardtotheprohibitionagainst

includingtaxpayersusingdifferentapportionmentformulas inthesamegroup)asafederallyregulatedexchange. Thisprovisionappliesonlyif50percentormoreofthe businessreceiptsoftheunitarybusinessgroupforthe taxableyearareattributabletothematching,execution, orclearingoftransactionsconductedbymembersofthe groupdescribedintherstthreebulletpoints,above.

What i I am an insurance company?

IfyoucheckedtheboxinStep1,LineG,indicatingthatyouarean

insurancecompanytaxableunderIRCSection801or831,andyour

incomeisderivedfrominsideandoutsideIllinois,youmustapportion

yourbusinessincomeasfollows:

Direct writing companies Life insurance companies, nonlife

mutual, and nonlife stock insurance companiesOnLines28an

29,lineoutthewordsalesandwriteInsurancepremiums.OnLine2

writetheamountoftotaldirectpremiums(grossdirectpremiumsless

return premiums) from the annual statement (relating to life insurance

premiums,annuityconsiderations,andaccidentandhealthinsurance

premiums,includingpolicy,membership,andotherfees).

OnLine29,writetheamountofdirectpremiumsonpropertyorrislocatedinIllinoisfromtheannualstatement.

DivideLine29byLine28andwritetheresult,roundedtosixdecimaplaces,onLine30.CompleteLines31through34asindicatedinSpecicInstructionsforStep4,FigureyourincomeallocabletoIllinoi

Reinsurance Lie insurance companies, nonlie mutual, and

nonlie stock insurance companies I more than 50 percent

ofyourpremiumsarefromreinsurance,includeyourreinsurancepremiumsfromallsourcesonLine28andyourreinsurancepremiumfromIllinoissourcesonLine29,alongwithanydirectpremiumsonthoselines.

YoumaydetermineyourreinsurancepremiumsfromIllinoissourcesusingoneofthefollowingmethods.Youmustusethesamemethodor all uture years unless you receive written permission rom the

departmenttochangemethods.

Method A Determinethereinsurancepremiumsassumed,relatingtopropertyorrisklocatedinIllinois.

Method B ForeachcompanyfromwhichreinsuranceisaccepteddeterminethecedinginsurancecompanysratioofdirectpremiumsonpropertyorrisklocatedinIllinois,toitstotaldirectpremiums.Applythisratiotothereinsurancepremiumsassumedfromthatcompany.Forexample,reinsurerRassumespremiumsof$40,000and$50,000fromcedingcompaniesAandBrespectively.CompanyAsrationofdirectpremiumsonpropertyorrisklocatedinIllinois,to

itstotaldirectpremiums,istenpercentandCompanyBsratiois20percent.ReinsurerRhas$14,000ofreinsurancepremiumsassumeonpropertyorrisklocatedinIllinois,consistingof$4,000fromcedingCompanyA(10percentof$40,000)and$10,000fromcedingCompanyB(20percentof$50,000).

Method C Determine the amount o reinsurance premiums

assumedfrominsurancecompaniescommerciallydomiciledinIllinoIncludeinreinsurancepremiumsassumedinIllinois,allpremiumsforreinsuranceacceptedfrominsurancecompaniescommerciallydomiciledinIllinois.

What i I am a fnancial organization?

IfyoucheckedtheboxinStep1,LineG,indicatingthatyouareananciaorganizationandyourincomeisderivedfrominsideandoutsideIllinois,lin

outthewordsalesonLines28and29andwriteFinancialorganization

OnLine28,writetheamountofgrossreceiptsfromallsources.

OnLine29,writetheamountofgrossreceiptsfrom:

salesorleasesofrealpropertylocatedinIllinois;

leasesorrentalsoftangiblepersonalproperty,totheextentitislocatedinIllinoisduringtherentalperiod;

interestincome,commissions,fees,gainsondisposition,andother receipts rom:

loanssecuredbyrealortangiblepersonalproperty locatedinIllinois;

unsecuredconsumerloanstoaresidentofIllinois;

Special Apportionment Formulas

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unsecuredcommercialorinstallmentloanswheretheproceedsoftheloanareappliedinIllinois.Iftheplaceofapplicationcannotbedetermined,thegrossreceiptsareinIllinoisiftheofceoftheborrowerfromwhichtheloanwasnegotiatedisinIllinois. I neither the place o applicationnor the ofce o the borrower can be determined, do not

include the gross receipts in Line 28 or 29; and

creditcardreceivablesbilledtoacustomerinIllinois.

salesoftravelerschecksandmoneyordersatalocationinIllinois;

interest,dividends,netgains,andotherincomefrominvestmentandtradingassetsandactivities,wherethemajorityofyour

contactswiththeassetoractivityisinIllinois.Thestatetowhichanassetoractivityisassignedinyourbooksandrecordsforfederalorstateregulatoryrequirementsispresumedtobeproperunlessamajorityoftheevidenceshowsotherwiseoryoudonothaveaxedplaceofbusinessinthatstate.Iftheplacewiththemajorityofcontactscannotbedeterminedundertheserules,thegrossreceiptsareinIllinoisifyourcommercialdomicileisinIllinois.

anyothertransaction,ifthegrossreceiptswouldbeincludedonLine29underthegeneralinstructionsforLine29.

Formoreinformationsee86Ill.Adm.CodeSection100.3405.

DivideLine29byLine28andwritetheresult,roundedtosixdecimalplaces,onLine30.CompleteLines31through34asindicatedinSpecicInstructionsforStep4,FigureyourincomeallocabletoIllinois.

What i I am a transportation company?

IfyoucheckedtheboxinStep1,LineG,indicatingthatyouareacompanythatfurnishestransportationservicebothinsideandoutsideIllinois,lineoutthewordsalesonLines28and29andwriteTransportation.Youmustapportionbusinessincomeasfollows:

A Transportation by airline OnLine28,writetheamountofrevenuemileseverywhere.OnLine29,writetheamountofrevenuemilesinIllinois.DivideLine29byLine28andwritetheresult,roundedtosixdecimalplaces,onLine30.

B Other modes o transportation OnLine28,writetheamountofyourgrossreceiptsfromprovidingtransportationservices.OnLine29,writetheamountofgrossreceiptsfromIllinois,asfollows:

allgrossreceiptsfromtransportationthatbothoriginates andterminatesinIllinois;and

grossreceiptsfrominterstatetransportation,multiplied byafractionequaltothemilestraveledinIllinoisonall interstatetripsdividedbymilestraveledeverywhereon allinterstatetr ips.

DivideLine29byLine28andwritetheresult,roundedtosixdecimalplaces,onLine30.

C Transportation o both reight and passengers or

transportation by airline and other modes Computeseparatefractionsforfreighttransportationandpassengertransportationbyairlineandforfreighttransportationandpassengertransportationbyallothermodesoftransportation

underAandB,andwriteonLine30theaverageofthosefractions,weightedbythegrossreceiptsfromfreightorpassengertransportationbyairlineorothermodes,roundedtosixdecimalplaces.

Formoreinformationsee86Ill.Adm.CodeSection100.3450.

CompleteLines31through34asindicatedinSpecicInstructionsforStep4,FigureyourincomeallocabletoIllinois.

What i I am a ederally regulated exchange?

IfyoucheckedtheboxinStep1,LineG,indicatingthatyouare

afederallyregulatedexchangethatiselectingtouseaspecial

apportionmentformulathisyear,andyourincomeisderivedfrom

insideandoutsideIllinois,lineoutthewordsalesonLines28and

29andwriteExchange.Youmayapportionyourbusinessincome

follows:

OnLine28,writetheamountofbusinessincomefromallsources

OnLine29,writetheamountofbusinessincomefrom:

receiptsattributabletotransactionsexecutedonaphysical

tradingoorlocatedinIllinois;

receiptsattributabletoallothermatching,execution,orclearintransactions.Thisincludes,withoutlimitation,receiptsfromthprovisionofmatching,execution,orclearingservicestoanothentity.Multiplythisamountby:

63.77percent(.6377)fortaxyearsendingonorafter December31,2012,butbeforeDecember31,2013;

27.54percent(.2754)fortaxyearsendingonofafter December31,2013;and

allotherreceiptsforsalesinIllinois.

DivideLine29byLine28andwritetheresult,roundedtosixdecimaplaces,onLine30.CompleteLines31through34asindicatedin

SpecicInstructionsforStep4,FigureyourincomeallocabletoIllinoi

What i I have two or more discrete businesses

Ifyouareacorporationengagedintheconductoftwoormorediscretebusinesses,youareentitledtocomputeyourIllinoistaxliabilitybydeterminingtheincomeattributabletoeachofthosebusinesses,andapportioningthatincomebyapplicationofaseparateapportionmentformuladeterminedforeach.YoumustattachtheseparatecomputationstoFormIL-1120.However,youmustreporttheaggregateasifthebusinesswereonetaxableentFormoreinformation,seeIllinoisIncomeTaxRegulations,Section100.3010(b).

What i I am a member o a unitary businessgroup?

Thetermunitarybusinessgroupmeansagroupofpersonsrelatedthroughcommonownership,whosebusinessactivitiesareintegratewith,dependenton,andcontributetoeachother.Inthecaseofacorporation,commonownershipisdenedasthedirectorindirectownershiporcontrolofmorethan50percentoftheoutstandingvotinstockofacorporation.

Ifyoudeterminethatyouareamemberofaunitarybusinessgroup,seeIllinoisScheduleUBInstructionsformoreinformationregardingyourIllinoislingrequirementsandthecomputationofyourIllinoistaliability.

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What i I want to use an alternative

apportionment ormula?

IftheapportionmentmethodsprescribedbyIITA,Sections304(a)through(e),and(h)donotfairlyandaccuratelyreectyourbusinessactivityinIllinois,orleadtoagrosslydistortedresult,youmaywanttouseamoreaccuratealternativemethod.Ifyouwanttouseanalternativeapportionmentmethod,youmust receive permission romtheIDORpriortolingyourreturn.Sendyourrequestto


LEGAL SERVICES OFFICE

SENIOR COUNSEL - INCOME TAX, 5-500101 WEST JEFFERSON STREET

SPRINGFIELD IL 62702

YourrequestforanalternativeapportionmentformulamustfollowtherequirementsoftheIllinoisIncomeTaxRegulations,Section100.3390.Seetheregulationsorcontactthedepartmentformoreinformation.

Ifyoureceivepermissiontouseanalternativeformula,youmustattachtoyourFormIL-1120acopyofthelettergrantingpermission.

Documents

il-1120-instr