2006 Income Tax Letter Rulings

General Information Letters

Ruling	Date	Subject	Synopsis
IT 06-0037-GIL	12/26/2006	Alternative Apportionment	General Information Letter: Petition for alternative apportionment contained insufficient information to allow a determination.
IT 06-0036-GIL	12/12/2006	Credits – Film Credit	General Information Letter: The amount of film production services credit allowable is determined by the Department of Commerce and Economic Opportunity.
IT 06-0035-GIL	11/22/2006	Credits – Foreign Tax	General Information Letter: Explanation of computation of "double taxed income" for California.
IT 06-0034-GIL	11/15/2006	Credits – Foreign Tax	General Information Letter Prior to 2006, no credit is allowed for taxes paid to another state on compensation "paid in this State."
IT 06-0033-GIL	11/02/2006	Residency/Nonresidency	General Information Letter: A trust is an Illinois resident if its grantor was an Illinois resident at the time the trust became irrevocable.
IT 06-0032-GIL	10/26/2006	Military	General Information Letter: Petition for alternative apportionment contained insufficient information to allow a determination.
IT 06-0031-GIL	10/12/2006	Public Law 86-272/Nexus	General Information Letter: The amount of film production services credit allowable is determined by the Department of Commerce and Economic Opportunity.
IT 06-0030-GIL	10/11/2006	Refunds – Statutes of Limitations	General Information Letter: Explanation of computation of "double taxed income" for California.
IT 06-0029-GIL	10/04/2006	Composite Returns	General Information Letter: A taxpayer may claim a credit on his or her individual income tax return for taxes paid on a composite return only if prior permission has been received from the Department.
IT 06-0028-GIL	09/12/2006	Refunds – Statutes of Limitations	General Information Letter: The special statutory provisions for investment partnerships were not in effect for 2003.
IT 06-0027-GIL	09/11/2006	Public Law 86-272/Nexus	General Information Letter: Nexus determinations generally cannot be made in the ruling process.
IT 06-0026-GIL	09/11/2006	Exempt Organizations – Investment Partnerships	General Information Letter: Investments in real estate are not qualifying investments for purposes of determining whether a partnership is an investment partnership.
IT 06-0025-GIL	09/07/2006	Bingo, Pull Tabs and Charitable Games	General Information Letter: Casino Night described in the ruling is not a charitable game.
IT 06-0024-GIL	08/14/2006	Subtractions – Other Rulings	General Information Letter: Illinois allows subtractions for interest earned on Home Ownership Made Easy accounts and for education loan repayments of certain primary care physicians. Response to State of Wisconsin questionnaire on basic principles of Illinois income taxation in IT 06-0014 GIL corrected.
IT 06-0023-GIL	07/31/2006	Partnerships	General Information Letter: Special allocation rules for income received from an investment partnership do not apply to tax years ending prior to July 30, 2004.
IT 06-0022-GIL	07/31/2006	Partnerships	General Information Letter: Special allocation rules for income received from an investment partnership do not apply to tax years ending prior to July 30, 2004.
IT 06-0021-GIL	07/25/2006	Composite Return	General Information Letter: Nonresident individual is granted permission to claim on his individual return a credit for tax paid on his behalf on a composite return.
IT 06-0020-GIL	07/19/2006	Credits – Foreign Tax	General Information Letter: Illinois allows a credit for taxes paid by a resident to other states on income taxed by Illinois, including (beginning in 2006) wages paid in this State.
IT 06-0019-GIL	07/10/2006	Returns	General Information Letter: Material Advisor ordered by IRS to turn over some investor information and to retain remainder pending IRS request need not turn over retained information to the Department until requested by the IRS or the Department.
IT 06-0018-GIL	07/06/2006	Apportionment - Sales Factor	General Information Letter: Activities performed by third parties are not income producing activities of the taxpayer for sales factor purposes.
IT 06-0017-GIL	06/29/2006	Alternative Apportionment	General Information Letter: Alternative apportionment petition could not be granted because it was not timely filed for old taxable years and, for current year, contained no information that would support a conclusion that the statutory apportionment formula did not fairly represent the business activities of the taxpayer in Illinois or that the alternative would better represent the business activities of the taxpayer in Illinois.
IT 06-0016-GIL	06/19/2006	Withholding - Other Rulings	General Information Letter: No withholding of Illinois tax is required from compensation paid to Illinois residents for employment in Missouri when Missouri taxes are withheld and the compensation is not "paid in this State" under IITA Section 304(a)(2)(B).
IT 06-0015-GIL	06/13/2006	Subtraction Modifications - Other Rulings	General Information Letter: No subtraction modification is allowed for losses passed through from a partnership and disallowed in computing federal adjusted gross income of the partner in order to reflect a pro-forma recomputation of the federal loss limitation to take into account Illinois addition modifications.
IT 06-0014-GIL	06/09/2006	Miscellaneous	General Information Letter: Response to State of Wisconsin questionnaire on basic principles of Illinois income taxation.
IT 06-0013-GIL	06/07/2006	Residency/Nonresidency	General Information Letter: Explanation of principles for determining residency.
IT 06-0012-GIL	05/31/2006	Withholding - Other Rulings	General Information Letter: Wages paid to a nonresident who is based in another state and performs no services in Illinois are not subject to Illinois income tax or to withholding.
IT 06-0011-GIL	05/19/2006	Subtraction Modifications - Qualified Pension Plans	General Information Letter: Pensions of retired government employees, including other states' governments, qualify for subtraction.
IT 06-0010-GIL	05/15/2006	Subtraction Modifications - Other Rulings	General Information Letter: No subtraction modification is allowed unless expressly provided in IITA Section 203 or if it would allow a double deduction.
IT 06-0009-GIL	05/15/2006	Subtraction Modifications - Other Rulings	General Information Letter: No subtraction modification is allowed unless expressly provided in IITA Section 203 or if it would allow a double deduction.
IT 06-0008-GIL	05/15/2006	Subtraction Modifications - Other Rulings	General Information Letter: No subtraction modification is allowed unless expressly provided in IITA Section 203 or if it would allow a double deduction.
IT 06-0007-GIL	05/15/2006	Subtraction Modifications - Other Rulings	General Information Letter: No subtraction modification is allowed unless expressly provided in IITA Section 203 or if it would allow a double deduction.
IT 06-0006-GIL	05/02/2006	Apportionment - Sales Factor	General Information Letter: Brokerage business conducted in Missouri with only connection to Illinois by telephone would have no Illinois sales factor.
IT 06-0005-GIL	04/06/2006	Compensation	General Information Letter: Gain of a nonresident on stock options treated as compensation for income tax purposes is taxed by Illinois only if it is "paid in this State" under IITA Section 304(a)(2)(B).
IT 06-0004-GIL	03/01/2006	Miscellaneous	General Information Letter: The Department of Revenue cannot provide guidance regarding whether "local law" prohibits the claiming of a person as a dependent for federal income tax purposes.
IT 06-0003-GIL	01/24/2006	Credits - Other Rulings	General Information Letter: An institution that provides only preschool and kindergarten-level education is not a school qualifying for the education expense credit.
IT 06-0002-GIL	01/03/2006	Withholding - Other Rulings	General Information Letter: Explanation of the quarter-monthly deposit requirement for withholding.
IT 06-0001-GIL	01/03/2006	Subtraction Modifications - Pensions	General Information Letter: Illinois does not tax pensions of nonresident individuals.

Private Letter Rulings

Ruling	Date	Subject	Synopsis
IT 06-0002-PLR	03/09/2006	Amnesty	Private Letter Ruling: Taxpayer whose liability for an amnesty year resulted from a disposition after the amnesty period of stock received in a reorganization in the amnesty year did not qualify for amnesty because the liability was created by the disposition. Accordingly, any interest and penalties attributable to the liability are not doubled.
IT 06-0001-PLR	01/17/2006	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.