2007 Income Tax Letter Rulings

General Information Letters

Ruling	Date	Subject	Synopsis
IT 07-0041-GIL	12/31/2007	Residency/Nonresidency	General Information Letter: Rulings on residency are not appropriate for general information letters.
IT 07-0040-GIL	12/27/2007	Apportionment – Sales Factor	General Information Letter: The income producing activity of a chain of concerts is generally carried out where the concerts are performed.
IT 07-0039-GIL	12/19/2007	S Corporations	General Information Letter: An electing small business trust is, as a shareholder in a Subchapter S corporation, taxable on its share of the business income apportioned to Illinois by the corporation.
IT 07-0038-GIL	12/18/2007	Bingo and Charitable Games	General Information Letter: Explanation of “bingo equipment” as defined in recent legislation.
IT 07-0037-GIL	12/07/2007	Information Reports	General Information Letter: Illinois does not currently require filing of copies of Forms W-2 with the Department.
IT 07-0036-GIL	11/09/2007	Public Law 86-272/Nexus	General Information Letter: Nexus issues are not generally appropriate matters for rulings.
IT 07-0035-GIL	11/08/2007	Assessment	General Information Letter: Claiming a subtraction on the wrong line of a return is a mathematical error that must be denied unless the taxpayer can demonstrate the correct nature and amount of the subtraction.
IT 07-0034-GIL	10/25/2007	Partnerships	General Information Letter: A small partnership exempt from the partnership procedures created by the Tax Equity and Fiscal Responsibility Act is a partnership for Illinois replacement tax purposes.
IT 07-0033-GIL	09/19/2007	Public Law 86-272/Nexus	General Information Letter: Activities described are not protected activities under Public Law 86-272.
IT 07-0032-GIL	09/18/2007	Credits – Foreign Tax	General Information Letter: Computation of income double-taxed by California and Illinois explained.
IT 07-0031-GIL	09/17/2007	Collections	General Information Letter: A fee owed to a collection agency may be added to the amount of tax due and collected in the same manner as the tax, under 20 ILCS 2505/2505-400.
IT 07-0030-GIL	09/14/2007	Credits – Foreign Tax	General Information Letter: Income shown on a return filed with a state that imposed no income tax liability on the taxpayer is not includable in double-taxed income.
IT 07-0029-GIL	08/08/2007	Apportionment – Payroll Factor	General Information Letter: In the special rule for compensation of professional athletes, the term “team” refers to the employer.
IT 07-0028-GIL	08/06/2007	Public Law 86-272/Nexus	General Information Letter: Activities described appear to be protected activities under Public Law 86-272.
IT 07-0027-GIL	07/30/2007	Residency/nonresidency	General Information Letter: Residency of a trust is determined at the time it becomes irrevocable.
IT 07-0026-GIL	07/26/2007	Residency/nonresidency	General Information Letter: The residence of a trust is not affected by changes in residence or location of its trustees or beneficiaries.
IT 07-0025-GIL	07/13/2007	Penalties – Failure To Pay	General Information Letter: Payment of income tax is due no later than the unextended due date of the return, and any payment made later is subject to penalty.
IT 07-0024-GIL	06/19/2007	Credits – Foreign Tax	General Information Letter: Explanation of computation of "double taxed income" for Wisconsin.
IT 07-0023-GIL	05/24/2007	Deficiencies	General Information Letter: A notice of deficiency must be sent to the taxpayer's last known address.
IT 07-0022-GIL	05/24/2007	Withholding – Other Rulings	General Information Letter: Withholding from compensation of a nonresident is required only if the compensation is "paid in this State" under IITA Section 304(a)(2)(B).
IT 07-0021-GIL	05/17/2007	Miscellaneous	General Information Letter: Response to COMMISSION survey on adoption by Illinois of model regulations and statutes.
IT 07-0020-GIL	05/03/2007	Estimated Tax	General Information Letter: No estimated tax payments need be made for a short taxable year, including the short taxable year caused by death of the taxpayer, until regulations are adopted to provide guidance.
IT 07-0019-GIL	04/30/2007	Bingo, Pull Tabs and Charitable Games	General Information Letter: Raffles of real property to benefit the individual owner are not lawful.
IT 07-0018-GIL	04/17/2007	Credits – Foreign Tax	General Information Letter: Computation of income double-taxed by Illinois and STATE explained.
IT 07-0017-GIL	04/13/2007	Base Income	General Information Letter: Illinois tax treatment of IRC Section 338(h)(10) transactions follows the federal treatment.
IT 07-0016-GIL	04/09/2007	Refunds	General Information Letter: Overpayments resulting from failure to subtract premium amortization on municipal bonds may be recovered by filing timely refund claims.
IT 07-0015-GIL	04/05/2007	Credits – Foreign Tax	General Information Letter: Computation of income double-taxed by Illinois and California explained.
IT 07-0014-GIL	04/03/2007	Base Income	General Information Letter: Response to questionnaire on Illinois tax treatment of sales and exchanges given special federal income tax treatment.
IT 07-0013-GIL	04/02/2007	Withholding	General Information Letter: Withholding of Illinois income tax is required when federal income tax is withheld from compensation paid in this State.
IT 07-0012-GIL	03/21/2007	Partnerships	General Information Letter: Nonresident partner must allocate to Illinois its partnership share of business income apportioned to Illinois by the partnership.
IT 07-0011-GIL	03/21/2007	Partnerships	General Information Letter: Nonresident partner must allocate to Illinois its partnership share of business income apportioned to Illinois by the partnership.
IT 07-0010-GIL	03/21/2007	Credits – Research and Development	General Information Letter: Response to survey on Illinois income tax treatment of research and development expenditures.
IT 07-0009-GIL	03/20/2007	Charitable Games	General Information Letter: No license is required for individual providing volunteer services in connection with event.
IT 07-0008-GIL	03/20/2007	Credits – Education Expense	General Information Letter: The education expense credit is not allowed for expenses incurred with a school outside the State of Illinois.
IT 07-0007-GIL	03/13/2007	Base Income	General Information Letter: Individuals are not allowed federal itemized deductions, including gambling losses.
IT 07-0006-GIL	02/28/2007	Charitable Games	General Information Letter: Proper licensing is required under the Charitable Games Act to conduct a "Texas Hold’em Tournament" described in the request.
IT 07-0005-GIL	02/22/2007	Protest	General Information Letter: After a tax has been assessed, the taxpayer must pay the tax, file a refund claim and protest the denial of the claim in order to receive an administrative hearing.
IT 07-0004-GIL	02/09/2007	Subtraction Modifications – Other Rulings	General Information Letter: Response to questionnaire on exempt interest.
IT 07-0003-GIL	02/09/2007	Subtraction Modifications – Other Rulings	General Information Letter: No subtraction is allowed for expenses disallowed under IRC Section 54G(e)(3).
IT 07-0002-GIL	02/02/2007	Public Law 86-272/Nexus	General Information Letter: Activities described appear to be protected activities under Public Law 86-272.
IT 07-0001-GIL	01/22/2007	Credits – Foreign Tax	General Information Letter: Explanation of computation of "double taxed income" for Indiana.

Private Letter Rulings

Ruling	Date	Subject	Synopsis
IT 07-0002-PLR	09/06/2007	Credits – Film Credit	Private Letter Ruling: Transferee of film credit is allowed the credit in the tax year in which the credit certificate was originally issued, regardless of the year of transfer.
IT 07-0001-PLR	03/23/2007	Apportionment – Sales Factor	Private Letter Ruling: Gain on sale of unitary subsidiary is business income, but receipts are excluded from the sales factor numerator and denominator under 86 Ill. Adm. Code Section 100.3380(c)(2).