Illinois Department of Revenue
 
 
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2009 Income Tax Letter Rulings

 
 

General Information Letters

Ruling
Date
Subject Synopsis
IT 09-0045-GIL 12/10/2009 Public Law 86-272/Nexus General Information Letter: Installation of equipment sold to Illinois customers is not an activity protected by Public Law 86-272.
IT 09-0044-GIL 12/11/2009 Apportionment – Sales Factor General Information Letter: Request for guidance on sales factor computation contained insufficient information to support any conclusion.
IT 09-0043-GIL 10/28/2009 Addition Modifications – Other Rulings General Information Letter: Amount of addition modification related to new credit for employer contributions to IRC Section 529 plans is equal to the amount of the credit allowable, without reduction for carryovers to other years.
IT 09-0042-GIL 10/26/2009 Residency/Nonresidency General Information Letter: Residency laws explained.
IT 09-0041-GIL 10/22/2009 Base Income General Information Letter: No adjustments to at-risk loss limitations or carryovers are allowed in computing base income.
IT 09-0040-GIL 10/20/2009 Exemptions General Information Letter: Taxpayer who is not required to obtain Social Security Number for dependent children in order to claim federal exemptions is allowed Illinois exemptions as well.
IT 09-0039-GIL 10/19/2009 Public Law 86-272/Nexus General Information Letter: Sales made in Illinois by mobile sales unit are sufficient to provide nexus with the State.
IT 09-0038-GIL 10/19/2009 Net Income (Loss) And Net Loss Deduction General Information Letter: A trust may not succeed to an Illinois net loss carryover of another trust.
IT 09-0037-GIL 10/15/2009 Base Income General Information Letter: No adjustments to federal passive loss limitations or carryovers are allowed in computing base income.
IT 09-0036-GIL 10/13/2009 Base Income General Information Letter: Capital loss carrybacks properly allowed in the computation of federal taxable income are allowed in computing base income.
IT 09-0035-GIL 10/05/2009 Credits – Foreign Tax General Information Letter: Computation of Iowa double-taxed income explained.
IT 09-0034-GIL 09/30/2009 Residency/Nonresidency General Information Letter: Response to various residency questions in survey of state laws.
IT 09-0033-GIL 09/28/2009 Apportionment – Sales Factor General Information Letter: Business gain on the sale of stock by a person other than a trader in that stock is sourced to Illinois using the income-producing activity test.
IT 09-0032-GIL 09/23/2009 Net Income (Loss) and Net Loss Deduction General Information Letter: The Illinois Income Tax Act does not incorporate the limitations on the use of net loss carryover deductions of an acquired corporation contained in IRC Section 381(c).
IT 09-0031-GIL 09/17/2009 Subtraction Modifications – Qualified Pension Plans General Information Letter: All income from pension plans of a governmental agency or unit may be subtracted, whether or not the pension qualifies under IRC Section 457.
IT 09-0030-GIL 09/16/2009 Net Income (Loss) and Net Loss Deduction General Information Letter: If a federal change for a taxable year is final, it is binding for Illinois income tax purposes even if it has no effect on Illinois income tax except to increase the net loss reportable for the taxable year.
IT 09-0029-GIL 09/11/2009 Residency/Nonresidency General Information Letter: Residency determinations are not proper subjects for letter rulings.
IT 09-0028-GIL 09/09/2009 Net Income (Loss) and Net Loss Deduction General Information Letter: Reduction in Illinois net losses resulting from discharge of indebtedness explained.
IT 09-0027-GIL 08/21/2009 Net Operating Loss And Net Operating Loss Deduction General Information Letter: Trust created and funded by another trust, which had incurred Illinois net losses in prior years, is not entitled to deductions for the carryforward of the losses of that other trust.
IT 09-0026-GIL 08/07/2009 Base Income General Information Letter: Individual who was required to include income from Madoff Investments in federal adjusted gross income in years prior to 2008, and who is entitled to a federal itemized deduction for theft loss from the investment in 2008, must include the income in Illinois base income in the prior years and is not entitled to deduct the theft loss in computing base income in 2008.
IT 09-0025-GIL 08/04/2009 Refunds – Statutes Of Limitations General Information Letter: A report of a change to a trust’s federal taxable income must be filed within 120 days after the change becomes final, and a refund claim based on that change may be filed at any time within 2 years after the date the report is due.
IT 09-0024-GIL 08/03/2009 Residency/Nonresidency General Information Letter: Taxpayer domiciled in Illinois continues to be domiciled in Illinois during a temporary absence.
IT 09-0023-GIL 07/30/2009 Public Law 86-272/Nexus General Information Letter: Missionary sales activities by employees of the taxpayer for which the taxpayer is paid by its customer are sales of service by the taxpayer and are not protected by Public Law 86-272.
IT 09-0022-GIL 07/24/2009 Subtraction Modifications – Other Rulings General Information Letter: IITA Section 203(c)(3) permits the subtraction from base income of municipal bond interest deemed distributed to a charity under IRC Section 642(c).
IT 09-0021-GIL 07/10/2009 Subtraction Modifications – Other Rulings General Information Letter: The Northwest Ordinance does not require or allow the subtraction of income attributable to transportation on the Great Lakes from base income.
IT 09-0020-GIL 07/09/2009 Credits – Foreign Tax General Information Letter: Correct computation of income taxed by both Illinois and Iowa explained.
IT 09-0019-GIL 06/16/2009 Credits – Foreign Tax General Information Letter: Correct computation of income taxed by both Illinois and New Mexico explained.
IT 09-0018-GIL 05/15/2009 Credits – Foreign Tax General Information Letter: No credit is allowed to a resident partner for unincorporated business tax paid to D.C. by the partnership, because that tax is imposed on the partnership rather than the partner.
IT 09-0017-GIL 04/22/2009 Subtraction Modifications – Other Rulings General Information Letter: No subtraction is allowed for repayment of amounts which were received in a prior year under a claim of right and for which an itemized deduction was claimed in the current year.
IT 09-0016-GIL 04/22/2009 Net Income (loss) and Net Loss Deduction General Information Letter: A partnership may carry over an Illinois net loss incurred by another partnership only if it is treated as a continuation of that other partnership for federal income tax purposes.
IT 09-0015-GIL 04/22/2009 Residency/nonresidency General Information Letter: Residency determinations are very fact-specific and are not appropriate subjects for letter rulings.
IT 09-0014-GIL 04/20/2009 Subtraction Modifications – Other Rulings General Information Letter: No subtraction is allowed for state income tax refunds included in taxable income of a trust, even when the federal deduction for payment of the tax was added back when the trust claimed a credit for those taxes.
IT 09-0013-GIL 04/15/2009 Alternative Apportionment General Information Letter: Request to combine a transportation company and an insurance company is denied.
IT 09-0012-GIL 04/14/2009 Subtraction Modifications – Other Rulings General Information Letter: No subtraction is allowed for LIFO recapture amounts included in taxable income of a corporation, even if some of the tax on the recapture amount is deferred until later years for federal purposes.
IT 09-0011-GIL 04/13/2009 Subtraction Modifications – Other Rulings General Information Letter: Illinois law does not provide for modification of the taxpayer’s basis in property on which federal bonus depreciation was claimed. Subtraction modifications related to federal bonus depreciation must be computed and reported on the Schedule 4562.
IT 09-0010-GIL 04/09/2009 Subtraction Modifications – Other Rulings General Information Letter: No subtraction modification is allowed for depreciation of property received in a like-kind exchange based on the excess of fair market value of the property over its federal income tax basis.
IT 09-0009-GIL 04/06/2009 Base Income General Information Letter: Acceptance without adjustment by the IRS of items on a taxpayer’s federal return is not binding on the Department.
IT 09-0008-GIL 03/27/2009 Bingo and Charitable Games General Information Letter: Licensing of raffles is a local government function, not a state government function.
IT 09-0007-GIL 03/23/2009 Credits – Foreign Tax General Information Letter: For tax years prior to 2006, no credit is allowed for taxes paid to another state on employee compensation“paid in this State” under IITA Section 304(a)(2)(B).
IT 09-0006-GIL 03/09/2009 Credits – Foreign Tax General Information Letter: No credit is allowed for axes paid to Iowa on employee compensation, because Illinois residents are exempted from Iowa tax on employee compensation under the states’ reciprocal agreement.
IT 09-0005-GIL 02/17/2009 Alternative Apportionment General Information Letter: IT 03-0003 PLR is revoked.
IT 09-0004-GIL 02/09/2009 Public Law 86-272/Nexus General Information Letter: Nexus issues are not generally appropriate for resolution by letter ruling.
IT 09-0003-GIL
01/26/2009
Subtraction Modifications – Other Rulings General Information Letter: Contributions to college savings plans in excess of the maximum subtraction for a taxable year may not be carried over to other years.
IT 09-0002-GIL
01/23/2009
Residency/nonresidency General Information Letter: The residency of a trust does not change when the residency of the beneficiaries or trustees changes.
IT 09-0001-GIL
01/14/2009
Apportionment – Payroll Factor General Information Letter: Wages paid to an employee performing services within and without Illinois are allocable to Illinois if the employee’s base of operations is in Illinois or, if the employee has no base of operations, if his services are directed or controlled from a place in Illinois.

Private Letter Rulings

Ruling Date Subject Synopsis
IT 09-0002-PLR 12/03/2009 Apportionment – Other Rulings Private Letter Ruling: Petition granted for taxpayer to apply amendment to regulation Section 100.3380 retroactively.
08/25/2009
Withholding Private Letter Ruling: No withholding is required from compensation paid to a nonresident employee whose base of operations is outside Illinois.

 
 
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