2003 Income Tax Letter Rulings

General Information Letters

Ruling	Date	Subject	Synopsis
IT 03-0039-GIL	12/24/2003	Base Income	General Information Letter: Sick pay included in federal adjusted gross income is also included in base income.
IT 03-0038-GIL	12/22/2003	Public Law 86-262/Nexus	General Information Letter: Nexus determinations cannot generally be made by letter ruling.
IT 03-0037-GIL	12/22/2003	Public Law 86-262/Nexus	General Information Letter: Nexus determinations cannot generally be made by letter ruling.
IT 03-0036-GIL	11/24/2003	Withholding - Other Rulings	General Information Letter: Illinois law follows federal income tax determination of whether person is an employee or not.
IT 03-0035-GIL	11/20/2003	Penalties - Failure to Pay	General Information Letter: Payment of income tax after the unextended due date of the return is subject to penalty.
IT 03-0034-GIL	11/03/2003	Apportionment - Sales Factor	General Information Letter: Dock sales are sourced to the state in which the buyer is located, even when the buyer itself picks up the tangible personal property.
IT 03-0033-GIL	10/21/2003	Military	General Information Letter: Issues related to tax, penalties and amnesty for taxpayer currently serving in Iraq should be addressed when he returns.
IT 03-0032-GIL	10/03/2003	Alternative Apportionment	General Information Letter: Request to use separate accounting that does not state either how the statutory apportionment formula fails to fairly reflect business activities within Illinois or how separate accounting is reasonable cannot be granted.
IT 03-0031-GIL	09/17/2003	Base Income	General Information Letter: Severance pay included in federal adjusted gross income is included in base income.
IT 03-0030-GIL	09/02/2003	Credits - Foreign Tax	General Information Letter: Correct computation of foreign tax credit explained.
IT 03-0029-GIL	09/02/2003	Public Law 86-272/Nexus	General Information Letter: Nexus determinations are not a proper subject for letter rulings.
IT 03-0028-GIL	09/02/2003	Penalties - Failure to Pay Estimated Tax	General Information Letter: Taxpayers were subject to penalty for failure to make timely payments of estimated tax.
IT 03-0027-GIL	08/13/2003	Residency/Non-residency	General Information Letter: A trust that becomes irrevocable while the grantor is a nonresident of Illinois is itself a nonresident.
IT 03-0026-GIL	08/13/2003	Public Law 86-272/Nexus	General Information Letter: Transportation company transporting goods through Illinois not protected from tax under Public Law 86-272.
IT 03-0025-GIL	08/04/2003	Credits - Foreign Tax	General Information Letter: Explanation of the computation of income double-taxed by Missouri and Illinois.
IT 03-0024-GIL	07/23/2003	Residency/Non-residency	General Information Letter: An individual who routinely spends part of every tax year in Illinois and part in Iowa is not a part-year resident.
IT 03-0023-GIL	07/18/2003	Subtraction Modifications - Pensions	General Information Letter: Income from retirement plans of any governmental agency or unit is exempt from Illinois tax.
IT 03-0022-GIL	07/15/2003	Apportionment - Sales Factor	General Information Letter: The throwback rule does not apply to sales of services.
IT 03-0021-GIL	07/08/2003	Returns - Requirements to File	General Information Letter: Corporations qualified to do business in Illinois must file returns for each year that they are required to file federal income tax returns.
IT 03-0020-GIL	06/25/2003	Withholding - Other Rulings	General Information Letter: If no federal income tax withholding is required for direct sellers pursuant to IRC Section 3508, no Illinois income tax withholding is required.
IT 03-0019-GIL	06/25/2003	Public Law 86-272/Nexus	General Information Letter: Question of whether an entity must register to do business in Illinois must be asked of the Secretary of State.
IT 03-0018-GIL	06/09/2003	Alternative Apportionment	General Information Letter: Alternative apportionment petition cannot be granted when it evidences a misunderstanding of the statutory apportionment formula.
IT 03-0017-GIL	05/12/2003	Public Law 86-272/Nexus	General Information Letter: Nexus determinations are very fact-specific and are not the proper subject of a letter ruling.
IT 03-0016-GIL	05/06/2003	Credit - Foreign Tax	General Information Letter: Illinois resident is subject to tax on federal adjusted gross income earned in Poland, and no credit is allowed for taxes paid to Poland on that income.
IT 03-0015-GIL	04/28/2003	Books and Records	General Information Letter: Director’s fees for attending board meetings are business income and are included in the numerator of the sales factor if received for meetings in Illinois.
IT 03-0014-GIL	04/14/2003	Returns - Requirements to File	General Information Letter: A corporation qualified to do business in Illinois is required to file an Illinois income tax return for each taxable year for which it is required to file a federal income tax return.
IT 03-0013-GIL	04/08/2003	Apportionment - Sales Factor	General Information Letter: The IITA prescribes no maximum time for which a taxpayer must retain books and records substantiating its Illinois income tax liability.
IT 03-0012-GIL	03/28/2003	Returns - Other Rulings	General Information Letter: Taxpayer unable to obtain a W-2 from an employer may use Form IL-4852 to report withholding.
IT 03-0011-GIL	03/17/2003	Definitions	General Information Letter: A qualified settlement fund is a corporation for Illinois income tax purposes. IT 99-0051 GIL amended.
IT 03-0010-GIL	03/14/2003	Public Law 86-272/Nexus	General Information Letter: Installation services provided by the taxpayer would not be protected by Public Law 86-272.
IT 03-0009-GIL	03/13/2003	Apportionment - Payroll Factor	General Information Letter: All compensation paid to employees is included in the payroll factor.
IT 03-0008-GIL	03/03/2003	Credits - Foreign Tax	General Information Letter: Error in the Equivalency Chart for Iowa noted.
IT 03-0007-GIL	02/19/2003	Exempt Organizations	General Information Letter: An exempt organization is automatically exempt from Illinois taxation if it is exempt from federal income taxation.
IT 03-0006-GIL	02/13/2003	Allocation	General Information Letter: Nonresident individual is not subject to tax on retirement pay, Social Security or interest or dividends on personal savings.
IT 03-0005-GIL	02/13/2003	Base Income	General Information Letter: Gain from distribution of stock excluded from federal adjusted gross income of an individual is excluded from Illinois base income.
IT 03-0004-GIL	01/27/2003	Alternative Apportionment	General Information Letter: Petition for alternative apportionment cannot be granted based on unsupported assertion that the statutory apportionment formula fails to properly apportion income.
IT 03-0003-GIL	01/14/2003	Sales Outside the Ordinary Course of Business (Bulk Sales)	General Information Letter: The Department has no authority to order a purchaser who has withheld consideration while awaiting Department review of bulk sale notification to pay over the amount withheld.
IT 03-0002-GIL	01/07/2003	Withholding Exemptions	General Information Letter: Employer shall withhold Illinois tax pursuant to Form IL-W-4 claiming exemption from tax based on federal Form W-4 until notified by the IRS that the federal form is invalid.
IT 03-0001-GIL	01/06/2003	Compensation	General Information Letter: Gain on disposition of stock options characterized as compensation for federal income tax purposes is compensation for Illinois purposes as well and is allocated under IITA Section 304(a)(2)(B).

Private Letter Rulings

Ruling	Date	Subject	Synopsis
IT 03-0009-PLR	11/20/2003	Subtraction Modifications - Pensions	Private Letter Ruling: Lump sum distribution of partnership retirement payments exempt from self-employment tax is exempt from Illinois income tax.
IT 03-0008-PLR	11/13/2003	Estimated Tax	Private Letter Ruling: Overpayment reported on a return that is credited against the subsequent year's estimated tax liability will not subsequently be re-characterized
IT 03-0007-PLR	04/22/2003	Alternative Apportionment	Private Letter Ruling: Intercompany transactions between members of a unitary group and a unitary partnership wholly-owned by members of the unitary business group should be eliminated in computing income and the sales factor.
IT 03-0006-PLR	04/14/2003	Apportionment - Financial Organizations	Private Letter Ruling: REIT dividends are dividends within the meaning of IITA Section 304(c)(1)(C), and income from REIT dividends included in federal taxable income in years other than the year of receipt pursuant to a change in accounting procedure is also treated as dividend income under of IITA Section 304(c)(1)(C).
IT 03-0005-PLR	03/24/2003	Composite Returns	Private Letter Ruling: Partnership with two short taxable years within one calendar year may file a single composite return for partners allowed to participate in composite returns.
IT 03-0004-PLR	03/24/2003	Composite Returns	Private Letter Ruling: Partnership with two short taxable years within one calendar year may file a single composite return for partners allowed to participate in composite returns.
IT 03-0003-PLR	03/04/2003	Public Law 86-272/Nexus	This letter was rescinded on February 17, 2009 - IT 09-0005-GIL. Private Letter Ruling: Drop shipment of goods from Illinois suppliers to customers outside the state will not by itself create nexus for the seller.
IT 03-0002-PLR	02/26/2003	Exempt Organizations	Private Letter Ruling: An exempt organization is automatically exempt from Illinois taxation if it is exempt from federal income taxation.
IT 03-0001-PLR	02/05/2003	Refunds - Statute of Limitations	Private Letter Ruling: The statute of limitations on refund claims does not preclude a taxpayer from claiming an increased foreign tax credit as an offset against a deficiency arising from a federal change, even if the statute of limitations has expired for filing a claim for refund based on the increased credit.