The Illinois 1120 form is a tax return specifically designed for corporations operating within the state. This form, officially known as the Corporation Income and Replacement Tax Return, is essential for reporting income and calculating taxes owed for the fiscal year. Understanding how to complete this form accurately can help ensure compliance and avoid potential penalties.
The Illinois 1120 form, officially known as the Corporation Income and Replacement Tax Return, is a crucial document for businesses operating within the state. This form is specifically designed for corporations that need to report their income, calculate taxes owed, and ensure compliance with state regulations. It is important to note that the 1120 form applies to tax years ending on or after December 31, 2020, and before December 31, 2021. For businesses filing for the first time or those that have undergone changes, the form includes sections to indicate such updates. Completing the Illinois 1120 requires businesses to provide detailed information about their income, deductions, and credits, including federal taxable income and various additions and subtractions specific to Illinois tax law. Additionally, corporations must account for replacement taxes and any applicable surcharges. The form also addresses unique situations, such as unitary filers and foreign insurers, ensuring that all businesses can accurately report their financial activities. Understanding the intricacies of the Illinois 1120 form is essential for corporations to avoid penalties and ensure they fulfill their tax obligations effectively.
What is the Illinois 1120 form?
The Illinois 1120 form is the Corporation Income and Replacement Tax Return used by corporations operating in Illinois. This form is essential for reporting income, calculating taxes owed, and ensuring compliance with state tax laws. It covers tax years ending on or after December 31, 2020, and before December 31, 2021.
When is the Illinois 1120 form due?
The due date for filing the Illinois 1120 form typically aligns with the federal tax return deadlines. For corporations following a calendar year, the form is due on the 15th day of the third month after the end of the tax year. If your corporation operates on a fiscal year, the due date will vary accordingly. Always check the instructions for specific dates.
Who needs to file the Illinois 1120 form?
What information is required to complete the Illinois 1120 form?
Completing the Illinois 1120 form requires various pieces of information, including your corporation's legal name, mailing address, federal employer identification number (FEIN), and details about your income and deductions. You will also need to provide information about any attached schedules or forms, such as federal forms and Illinois-specific schedules.
What are some common deductions and credits available on the Illinois 1120 form?
Corporations can claim several deductions and credits on the Illinois 1120 form. Common deductions include net operating losses, special depreciation, and related-party expenses. Additionally, corporations may qualify for investment credits and various tax credits, such as those related to job training projects. Each credit and deduction has specific requirements, so it's essential to review the instructions carefully.
What happens if a corporation fails to file the Illinois 1120 form?
Failure to file the Illinois 1120 form can lead to penalties and interest on any unpaid taxes. The Illinois Department of Revenue may also take enforcement actions to collect owed taxes. It's crucial to file on time and ensure that all information is accurate to avoid these consequences.
Can a corporation amend its Illinois 1120 form?
Yes, a corporation can amend its Illinois 1120 form if it discovers errors or omissions after filing. To do this, the corporation must complete the appropriate amendment form and submit it to the Illinois Department of Revenue. It's important to follow the guidelines provided for amendments to ensure compliance and avoid penalties.
Is electronic filing available for the Illinois 1120 form?
Yes, electronic filing is available and encouraged for the Illinois 1120 form. Filing electronically can streamline the process, reduce the risk of errors, and often allows for faster processing. Corporations can file electronically through the Illinois Department of Revenue's website or authorized e-file providers.
Where can I find more information about the Illinois 1120 form?
More information about the Illinois 1120 form, including instructions and resources, can be found on the Illinois Department of Revenue's official website. This site provides access to necessary forms, detailed instructions, and updates regarding tax laws and filing requirements.
Incorrect Business Name: Failing to enter the complete legal business name can lead to processing delays or rejections.
Address Errors: Omitting or incorrectly entering the mailing address may result in important correspondence not reaching you.
Missing First or Final Return Check: Not marking the appropriate box for first or final returns can cause confusion about your filing status.
Improper FEIN Entry: Entering an incorrect Federal Employer Identification Number (FEIN) can lead to issues with tax identification.
Skipping Required Attachments: Failing to attach necessary forms, such as federal returns or schedules, can result in penalties or disallowed deductions.
Calculation Mistakes: Errors in computing income or loss can lead to incorrect tax liabilities, potentially resulting in penalties.
Neglecting to Sign the Return: Not signing the return can lead to it being considered incomplete and may delay processing.
Incorrect Payment Submission: Failing to include the correct payment amount or not attaching the payment voucher can lead to penalties and interest.
Illinois Department of Revenue
*63512211W*
2021 Form IL-1120
Corporation Income and Replacement Tax Return
See “When should I file?” in the Form IL-1120 instructions for a list of due dates.
If this return is not for calendar year 2021, enter your fiscal tax year here.
Tax year beginning
20
, ending
month day
year
This form is for tax years ending on or after December 31, 2021, and before December 31, 2022. For all other situations, see instructions to determine the correct form to use.
Enter the amount you are paying.
$ _______________________
Step 1: Identify your corporation
AEnter your complete legal business name. If you have a name change, check this box.
Name:
BEnter your mailing address.
Check this box if either of the following apply:
•this is your first return, or
•you have an address change.
C/O:
__________________________________________________
Mailing address:
___________________________________________
City:
State:
ZIP:
CIf this is the first or final return, check the applicable box(es).
First return
Final return (Enter the date of termination.
)
mm dd
yyyy
DIf this is a final return because you sold this business, enter the date sold
(mm dd yyyy)
, and the new owner’s FEIN.
ECheck the box and see the instructions if your business is a:
Unitary Filer (Combined return)
Foreign insurer
FIf you completed the following, check the box and attach the federal
form(s) to this return.
Federal Form 8886 Federal Schedule M-3, Part II, Line 12
GApportionment Formulas. Mark the appropriate box or boxes and see
Apportionment Formula instructions.
Sales companies
Insurance companies
Financial organizations
Transportation companies
Federally regulated exchanges
H Check this box if you attached Illinois Schedule UB.
I Check this box if you attached the Subgroup Schedule.
J Check this box if you attached Illinois Schedule 1299-D.
K Check this box if you attached Form IL-4562.
L Check this box if you attached Illinois Schedule M (for businesses). M Check this box if you attached Schedule 80/20.
NEnter your federal employer identification number (FEIN).
OIf you are a member of a group filing a federal consolidated return, enter the FEIN of the parent.
PEnter your North American Industry Classification System (NAICS) Code. See instructions.
QEnter your corporate file (charter) number assigned to you by the Secretary of State.
REnter the city, state, and zip code where your accounting records are kept. (Use the two-letter postal abbreviation, E.G., IL, GA, etc.)
City
State
ZIP
SIf you are making the business income election to treat all nonbusiness income as business income, check this box and enter zero on Lines 24 and 32.
TCheck your method of accounting.
Cash Accrual Other
UIf you are making a discharge of indebtedness adjustment on Form IL-1120, Line 36, check this
box and attach federal Form 982 and a detailed statement.
VCheck this box if you attached Schedule INL.
WIf you annualized your income on Form IL-2220,
check this box and attach Form IL-2220.
XCheck this box if your business activity is protected under Public Law 86-272.
Y Check this box if you are a 52/53 week filer.
Attach your payment and Form IL-1120-V here.
If you owe tax on Line 67, make an electronic payment at Tax.Illinois.gov. If you must mail your payment, complete a payment voucher, Form IL-1120-V. Write your FEIN, tax year ending, and “IL-1120-V” on your check or money order and make it payable to “Illinois Department of Revenue.” Attach your voucher and payment here.
Enter the amount of your payment on the top of this page in the space provided.
If a payment is not enclosed, mail this return to:
If a payment is enclosed, mail this return to:
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19048
PO BOX 19038
SPRINGFIELD IL 62794-9048
SPRINGFIELD IL 62794-9038
This form is authorized as outlined by the Illinois Income Tax Act. Disclosure of this
IR
NS
DR ____
Page 1 of 4
information is REQUIRED. Failure to provide information could result in a penalty.
IL-1120 (R-12/21)
*63512212W*
Step 2: Figure your income or loss
(Whole dollars only)
1Federal taxable income from U.S. Form 1120, Line 30.
Attach a copy of your federal return.
1
00
2
Net operating loss deduction from U.S. Form 1120, Line 29a. This amount cannot be negative.
3
State, municipal, and other interest income excluded from Line 1.
4
Illinois income and replacement tax and surcharge deducted in arriving at Line 1.
5
Illinois Special Depreciation addition. Attach Form IL-4562.
6
Related-Party Expenses additions. Attach Schedule 80/20.
7
Distributive share of additions. Attach Schedule(s) K-1-P or K-1-T.
8
Other additions. Attach Schedule M (for businesses).
9
Add Lines 1 through 8. This amount is your income or loss.
Step 3: Figure your base income or loss
10
Interest income from U.S. Treasury and other exempt federal obligations.
11River Edge Redevelopment Zone Dividend subtraction.
Attach Schedule 1299-B.
11
12River Edge Redevelopment Zone Interest subtraction.
12
13
High Impact Business Dividend subtraction. Attach Schedule 1299-B.
14
High Impact Business Interest subtraction. Attach Schedule 1299-B.
15
Contribution subtraction. Attach Schedule 1299-B.
16
Contributions to certain job training projects. See instructions.
17
Foreign Dividend subtraction. Attach Schedule J. See instructions.
18
Illinois Special Depreciation subtraction. Attach Form IL-4562.
19
Related-Party Expenses subtraction. Attach Schedule 80/20.
Distributive share of subtractions. Attach Schedule(s) K-1-P or K-1-T.
21
Other subtractions. Attach Schedule M (for businesses).
22
Total subtractions. Add Lines 10 through 21.
23
Base income or loss. Subtract Line 22 from Line 9.
AIf the amount on Line 23 is derived inside Illinois only, check this box and enter the amount from Step 3, Line 23 on Step 5, Line 35. You may not complete Step 4. (You must leave Step 4, Lines 24 through 34 blank.)
If you are a unitary filer, do not check this box. Check the box on Line B and complete Step 4.
B If any portion of the amount on Line 23 is derived outside Illinois, or you are a unitary filer, check this box and complete all lines of Step 4. (Do not leave Lines 28 through 30 blank.) See instructions.
Step 4: Figure your income allocable to Illinois
(Complete only if you checked the box on Line B, above.)
24 Nonbusiness income or loss. Attach Schedule NB.
24
25Business income or loss included in Line 23 from non-unitary partnerships, partnerships included on a Schedule UB, S corporations, trusts,
or estates. See instructions.
25
26
Add Lines 24 and 25.
27
Business income or loss. Subtract Line 26 from Line 23.
28
Total sales everywhere. This amount cannot be negative.
29
Total sales inside Illinois. This amount cannot be negative.
30
Apportionment Factor. Divide Line 29 by Line 28. Round to six decimal places.
31
Business income or loss apportionable to Illinois. Multiply Line 27 by Line 30.
32
Nonbusiness income or loss allocable to Illinois. Attach Schedule NB.
33Business income or loss apportionable to Illinois from non-unitary partnerships, partnerships
included on a Schedule UB, S corporations, trusts, or estates. See instructions.
33
34 Base income or loss allocable to Illinois. Add Lines 31 through 33.
34
Page 2 of 4
Printed by the authority of the state of Illinois. Web only, one copy.
Step 5: Figure your net income
*63512213W*
35Base income or net loss from Step 3, Line 23, or Step 4, Line 34.
36Discharge of indebtedness adjustment. Attach federal Form 982. See instructions.
37Adjusted base income or net loss. Add Lines 35 and 36. See instructions.
38Illinois net loss deduction. If Line 37 is zero or a negative amount, enter zero. Check this box and attach a detailed statement if you have merged losses.
39Net income. Subtract Line 38 from Line 37.
3500
3600
3700
3800
3900
Step 6: Figure your replacement tax after credits
40
Replacement tax. Multiply Line 39 by 2.5% (.025).
41
Recapture of investment credits. Attach Schedule 4255.
42
Replacement tax before credits. Add Lines 40 and 41.
43
Investment credits. Attach Form IL-477.
44
Replacement tax after credits. Subtract Line 43 from Line 42. If the amount is negative, enter zero.
Step 7: Figure your income tax after credits
45
Income tax. Multiply Line 39 by 7.0% (.07).
46
47
Income tax before credits. Add Lines
45 and 46.
48
Income tax credits. Attach Schedule
1299-D.
49
Income tax after credits. Subtract Line 48 from Line 47. If the amount is negative, enter zero.
Step 8: Figure your refund or balance due
50Replacement tax before reductions. Enter the amount from Line 44.
51Foreign Insurer replacement tax reduction. Attach Schedule INS or UB/INS. See instructions.
52Subtract Line 51 from Line 50. This is your net replacement tax.
53Income tax before reductions. Enter the amount from Line 49.
54Foreign Insurer income tax reduction. Attach Schedule INS or UB/INS. See instructions.
55Subtract Line 54 from Line 53. This is your net income tax.
56Compassionate Use of Medical Cannabis Program Act surcharge. See instructions.
57Sale of assets by gaming licensee surcharge. See instructions.
58Total net income and replacement taxes and surcharges. Add Lines 52, 55, 56, and 57.
59Underpayment of estimated tax penalty from Form IL-2220. See instructions.
60Total taxes, surcharges, and penalty. Add Lines 58 and 59.
61Payments. See instructions.
a
Credits from previous overpayments.
61a
b
Total payments made before the date this return is filed.
61b
cPass-through withholding reported to you.
Attach Schedule(s) K-1-P or K-1-T.
61c
d
Pass-through entity tax credit reported to you.
61d
e
Illinois income tax withholding. Attach Form(s) W-2G.
61e
62Total payments. Add Lines 61a through 61e.
63Overpayment. If Line 62 is greater than Line 60, subtract Line 60 from Line 62.
64Amount to be credited forward. See instructions.
Check this box and attach a detailed statement if this carryforward is going to a different FEIN.
65Refund. Subtract Line 64 from Line 63. This is the amount to be refunded.
66Complete to direct deposit your refund.
Routing Number
Checking or
Savings
Account Number
5000
5100
5200
5300
5400
5500
5600
5700
5800
5900
6000
6200
63 00
64 00
6500
67 Tax due. If Line 60 is greater than Line 62, subtract Line 62 from Line 60. This is the amount you owe.
67
Step 9: Sign below - Under penalties of perjury, I state that I have examined this return and, to the best of my knowledge, it is true, correct and complete.
Sign
(
Check if the Department
Here
may discuss this return with the
Signature of authorized officer
Date (mm/dd/yyyy) Title
Phone
paid preparer shown in this step.
Paid
Check if
Print/Type paid preparer’s name
Paid preparer’s signature
Date (mm/dd/yyyy)
self-employed
Paid Preparer’s PTIN
Preparer
Firm’s name
Firm’s FEIN
Use Only
Firm’s address
Firm’s phone
Page 3 of 4
Enter the amount of your payment in the space provided on the top of page 1.
Attach supporting documents to your Form IL-1120.
*ZZZZZZZZZ*
If you completed:
Attach:
Form IL-1120
U.S. 1120, Pages 1 through 6, or equivalent
Step 1, Line E (unitary) only
Schedule UB/Subgroup Schedule
Check the box on Form IL-1120, Step 1, Line H
Step 1, Line E (foreign insurer) only
Schedule INS
Step 1, Line E (unitary) and (foreign insurer)
Schedule UB/Subgroup Schedule and Schedule UB/INS
Step 1, Line F
Federal Form 8886 or Federal Schedule M-3 (as applicable)
Step 1, Line U
Federal Form 982
Step 1, Line V
Schedule INL
Step 1, Line W
Form IL-2220
Lines 5 and 18
Form IL-4562
Special Depreciation addition
Check the box on Form IL-1120, Step 1, Line K
Special Depreciation subtraction
Lines 6 and 19
Schedule 80/20
Related-Party Expenses addition
Check the box on Form IL-1120, Step 1, Line M
Related-Party Expenses subtraction
Lines 7 and 20
Schedule(s) K-1-P or K-1-T
Distributive share of additions
Distributive share of subtractions
Lines 8 and 21
Schedule M and any required support listed on Schedule M
Other additions
Check the box on Form IL-1120, Step 1, Line L
Other subtractions
Lines 11 through 15
Schedule 1299-B and any required support listed on Schedule
River Edge Redevelopment Zone
1299-B
Dividend subtraction
Interest subtraction
High Impact Business Dividend subtraction
High Impact Business Interest subtractions
Contributions subtraction
Line 17
Foreign Dividend Subtraction
Illinois Schedule J, and U.S. 1120, Schedule C or equivalent
Lines 24 and 32
Schedule NB
Nonbusiness income or loss
Nonbusiness income or loss allocable to Illinois
Lines 25 and 33
Business income or loss from non-unitary
partnerships, partnerships included on a Schedule UB,
S corporations, trusts, or estates
Business income or loss apportionable to Illinois from
non-unitary partnerships, partnerships included on a
Schedule UB, S corporations, trusts, or estates
Line 36 Discharge of indebtedness adjustment
Check the box on Form IL-1120, Step 1, Line U
Lines 41 and 46 Recapture of investment credit
Schedule 4255
Line 43
Investment credits
Form IL-477 and any required support listed on Form IL-477
Line 48
Income tax credits
Schedule 1299-D and any required support listed in the Schedule
1299-D instructions or Schedule 1299-I
Check the box on Form IL-1120, Step 1, Line J
Lines 51 and 54 Foreign Insurer tax reduction
Schedule INS or Schedule UB/INS (for unitary filers)
Check the box on Form IL-1120, Step 1, Line E
Line 59
Underpayment of estimated tax penalty
If you annualized your income on Form IL-2220, Step 6,
check the box on Form IL-1120, Step 1, Line W
Line 61c
Pass-through withholding reported
All Schedules K-1-P and K-1-T you received showing
to you
pass-through withholding
Line 61d Pass-through entity tax credit
reported to you
pass-through entity tax credit
Line 61e Illinois income tax withholding
Copies of all Forms W-2G
**Failure to attach the required documents may result in the disallowance of the corresponding line item.**
Page 4 of 4
When filling out the Illinois 1120 form, it's important to follow certain guidelines to ensure accuracy and compliance. Here’s a list of what to do and what to avoid:
When filing the Illinois 1120 form, there are several additional forms and documents that may be required. These documents help clarify specific financial details and ensure compliance with state tax laws. Below is a list of commonly used forms that accompany the Illinois 1120.
Make sure to review the specific requirements for each form and attach them as needed. Missing documents can lead to penalties or disallowance of deductions. Staying organized will help ensure a smoother filing process.
This is not true. The IL-1120 form is required for any corporation that earns income in Illinois, regardless of whether it has a physical presence in the state. This includes businesses that operate online or have customers in Illinois.
Many small businesses are also required to file this form. If your corporation generates income, you must comply with Illinois tax laws, regardless of your size.
While the form is typically filed annually, corporations may have estimated tax payments due throughout the year. It's essential to be aware of these deadlines to avoid penalties.
Filing the IL-1120 can be complex, especially for corporations with multiple income sources or deductions. Seeking assistance from a tax professional can help ensure accuracy and compliance.
Even if your corporation has a net loss, you still need to file the IL-1120. Reporting losses can be beneficial for future tax purposes, as they may offset future taxable income.
Not all income is subject to tax. Certain types of income, such as some capital gains or specific exemptions, may not be taxable. It's crucial to review the form's instructions carefully to determine what qualifies.
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