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).