Illinois Department of Revenue
 
 
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2004 Income Tax Letter Rulings

 
 

General Information Letters

Ruling Date Subject Synopsis
IT 04-0051-GIL 12/13/2004 Base Income General Information Letter: General explanation of Illinois income tax treatment of municipal bond interest.
IT 04-0050-GIL 11/17/2004 Subtraction Modifications - Bonus Depreciation General Information Letter: No subtraction modification is allowed for situations where the taxpayer might not receive the full benefit of a bonus depreciation deduction because of loss limitations.
IT 04-0049-GIL 11/17/2004 Subtraction Modifications - Bonus Depreciation General Information Letter: No subtraction modification is allowed for situations where the taxpayer might not receive the full benefit of a bonus depreciation deduction because of loss limitations.
IT 04-0048-GIL 11/16/2004 Credits - Foreign Tax General Information Letter: Publication 111 incorrectly requires the creditable amount of income tax imposed by Vermont to be computed by subtracting amounts withheld upon the sale of real estate.
IT 04-0047-GIL 11/16/2004 Alternative Apportionment General Information Letter: Petition for alternative apportionment cannot be granted on the taxpayer's unsubstantiated assertion that its separate accounting method better reflects its business activities in Illinois than the statutory method.
IT 04-0046-GIL 11/15/2004 Trusts General Information Letter: Electing Small Business Trusts are subject to regular and replacement taxation.
IT 04-0045-GIL 11/01/2004 Unitary General Information Letter: Members of an affiliated group filing consolidated federal income tax returns are not necessarily members of a unitary business group under the IITA.
IT 04-0044-GIL 11/01/2004 Miscellaneous General Information Letter: Illinois law does not require the Department to deal only with a taxpayer's representative outside of judicial or quasi-judicial proceedings.
IT 04-0043-GIL 10/28/2004 Miscellaneous General Information Letter: Respond to taxpayer regarding filing requirements.
IT 04-0042-GIL 10/25/2004 S Corporations - Other Rulings General Information Letter: Computation of Subchapter S corporation "taxable income" explained.
IT 04-0041-GIL 10/20/2004 Public Law 86-272/Nexus General Information Letter: Nexus rulings are not the proper subject of a ruling request.
IT 04-0040-GIL 10/19/2004 Estimated Tax General Information Letter: Taxpayer with large gain on sale of interest in business assets should make estimated payments.
IT 04-0039-GIL 10/19/2004 Subtraction Modifications - Other Rulings General Information Letter: No subtraction is allowed for expenses that may not be deducted federally because of the enhanced oil recovery credit.
IT 04-0038-GIL 10/18/2004 Returns - Other Rulings General Information Letter: A Subchapter S corporation, its qualifying Subchapter S subsidiary and a single-member LLC owned by the Subchapter S corporation that has elected to be disregarded are treated as a single Subchapter S corporation.
IT 04-0037-GIL 10/13/2004 Subtraction Modifications - Other Rulings General Information Letter: Estate may not subtract recovery of an itemized deduction taken by the decedent because IITA Section 203(c) provides no such subtraction.
IT 04-0036-GIL 10/17/2004 Withholding - Other Rulings General Information Letter: Compensation of employees working out of, and under the direction and control of, the employer's Illinois headquarters is subject to withholding.
IT 04-0035-GIL 09/21/2004 Withholding - Other Rulings General Information Letter: Withholding is required from a nonresident employee only if the compensation is "paid in this State."
IT 04-0034-GIL 09/10/2004 Withholding - Other Rulings General Information Letter: Withholding is required from a nonresident employee only if the compensation is "paid in this State."
IT 04-0033-GIL 08/18/2004 Apportionment - Sales Factor General Information Letter: A taxpayer storing its stock-in-trade in Illinois would have nexus with this State and would be required to include in its sales factor numerator gross receipts from goods delivered from Illinois to purchasers in states in which it is not taxable.
IT 04-0032-GIL 08/04/2004 Subtraction Modifications - Military - Pension General Information Letter: Voluntary Separation Incentive Pay received by a civilian governmental employee may not be subtracted as military pay nor as government retirement pay.
IT 04-0031-GIL 07/29/2004 Returns - Requirements to File General Information Letter: Federal change returns explained.
IT 04-0030-GIL 07/28/2004 Apportionment - Sales Factor General Information Letter: Throwback rule applied to various situations.
IT 04-0029-GIL 07/27/2004 Apportionment - Sales Factor General Information Letter: Sales factor treatment of receipts from rental of tangible personal property explained.
IT 04-0028-GIL 06/25/2004 Withholding General Information Letter: Withholding is required at a flat rate on all income in excess of exemptions allowed, so no determination of marital status is required to make the computation.
IT 04-0027-GIL 06/23/2004 Compensation General Information Letter: Compensation of a nonresident is taxable by Illinois if it is "paid in this State" under IITA Section 304(a)(2)(B).
IT 04-0026-GIL 06/17/2004 Refunds - Statute of Limitations General Information Letter: A Kentucky resident who mistakenly paid Illinois income tax on compensation generally has three years from the date the return was filed in order to claim a refund.
IT 04-0025-GIL 06/11/2004 Compensation General Information Letter: Compensation of a nonresident is taxable by Illinois if it is "paid in this State" under IITA Section 304(a)(2)(B).
IT 04-0024-GIL 06/09/2004 Public Law 86-272/Nexus General Information Letter: Partnership described in the request would not be subject to replacement tax.
IT 04-0023-GIL 05/28/2004 Credits - Foreign Tax General Information Letter: Explanation of the computation of double-taxed Minnesota and North Dakota income.
IT 04-0022-GIL 05/27/2004 Penalties - Failure to Pay Estimated Tax General Information Letter: Taxpayer who failed to make timely payment of first estimated tax installment is subject to penalty even if subsequent payments exceed the tax liability.
IT 04-0021-GIL 05/21/2004 Allocation General Information Letter: Nonresident trust is taxable on rental income from Illinois real estate.
IT 04-0020-GIL 05/19/2004 Credits - Foreign Tax General Information Letter: Explanation of the computation of double-taxed Missouri income.
IT 04-0019-GIL 05/17/2004 Withholding - Exemptions General Information Letter: If an employee has no valid W-4 on file, the employer must withhold without allowing any exemptions.
IT 04-0018-GIL 05/14/2004 Credits - Property Tax General Information Letter: The property tax credit is not allowed for taxes paid on property outside Illinois.
IT 04-0017-GIL 04/30/2004 Credits - Education Expense General Information Letter: A day care that provides kindergarten classes, but not first grade or higher classes for children subject to mandatory school attendance under Section 26-1, is not a qualified school for purposes of the education expense credit.
IT 04-0016-GIL 04/27/2004 Credits - Replacement Tax Investment - Enterprise Zone Investment General Information Letter: Replacement tax investment credit is allowed for property placed in service prior to January 1, 2004, but enterprise zone investment credit is allowed for current investments.
IT 04-0015-GIL 04/15/2004 Confidentiality General Information Letter: The Department may not disclose taxpayer information to the public.
IT 04-0014-GIL 04/08/2004 Credits - Education Expense General Information Letter: Credit is allowed for costs of trade school classes taken through a public high school and for which credit toward graduation was given.
IT 04-0013-GIL 03/25/2004 Exempt Organization General Information Letter: Organizations exempt from federal income tax under IRC Section 501(a) are exempt from Illinois income tax.
IT 04-0012-GIL 03/17/2004 Credits - Foreign Tax General Information Letter: Explanation of the computation of credit for taxes paid to Minnesota.
IT 04-0011-GIL 03/03/2004 Voluntary Disclosure General Information Letter: General guidance on voluntary disclosure and related statute of limitations issues.
IT 04-0010-GIL 03/02/2004 Withholding - Other Rulings General Information Letter: An individual is an employee for purposes of withholding Illinois income tax from compensation if that individual is an employee for federal income tax withholding purposes.
IT 04-0009-GIL 03/02/2004 Exemptions General Information Letter: Illinois allows an exemption for each dependent for whom a taxpayer is allowed a federal exemption.
IT 04-0008-GIL 02/18/2004 Voluntary Disclosure Agreements General Information Letter: Taxpayers seeking relief for old periods prior to the time they had nexus with Illinois should consider voluntary disclosure.
IT 04-0007-GIL 01/29/2004 Credits - Foreign Tax General Information Letter: Explanation of computation of credit.
IT 04-0006-GIL 01/29/2004 Subtraction Modifications - Other Rulings General Information Letter: Subtractions reported by a partnership and based on regular depreciation deductions on property for which bonus depreciation was claimed in a prior year are not reported on the Form IL-4562 of the partners.
IT 04-0005-GIL 01/21/2004 Subtraction Modifications - Other Rulings General Information Letter: Refunds of personal income taxes paid to other states and claimed as itemized deductions in prior years may be subtracted from Illinois base income.
IT 04-0004-GIL 01/16/2004 Composite Returns General Information Letter: Permission from the Department is not required to file a composite return, but is required for a taxpayer to claim a credit for taxes paid on its behalf on a composite return.
IT 04-0003-GIL 01/16/2004 Interest Income General Information Letter: Income of most municipal bonds (including most Illinois bonds) must be added back in computing base income, and income from most federal obligations may be subtracted.
IT 04-0002-GIL 01/16/2004 Returns - Requirements to File General Information Letter: Incarcerated taxpayer is still required to file returns, and must file for old years.
IT 04-0001-GIL 01/06/2004 Allocation General Information Letter: Nonbusiness Illinois capital loss allocated to Illinois is not net of nonbusiness capital gain properly allocated to another state.

Private Letter Rulings

Ruling Date Subject Synopsis
IT 04-0006-PLR 12/13/2004 Credits - Other Rulings Private Letter Ruling: A partner is entitled to the portion of the film production services credit shown on the final certificate issued by DCEO that is allocated to it by the partnership agreement.
IT 04-0005-PLR 12/13/2004 Credits - Other Rulings Private Letter Ruling: A partner is entitled to the portion of the film production services credit shown on the final certificate issued by DCEO that is allocated to it by the partnership agreement.
IT 04-0004-PLR 11/30/2004 Credits - Other Rulings Private Letter Ruling: A partner is entitled to the portion of the film production services credit shown on the final certificate issued by DCEO that is allocated to it by the partnership agreement.
IT 04-0003-PLR 09/22/2004 Subtraction Modifications - Other Rulings Private Letter Ruling: Distribution received by a retired partner from the partnership in exchange for rights to future retirement payments is retirement income that may be subtracted under IITA Section 203(a)(2)(F).
IT 04-0002-PLR 09/22/2004 Subtraction Modifications - Other Rulings Private Letter Ruling: Amounts payable to a retired partner under the partnership's retirement plan may be subtracted as compensation for personal services under IITA Section 203(d)(2)(H).
IT 04-0001-PLR 09/22/2004 Subtraction Modifications - Other Rulings Private Letter Ruling: Income distributable to a partner that is a charitable remainder unitrust may be subtracted under IITA Section 203(d)(2)(I).
 
 
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