Note: Effective July 1, 2013, business income tax filers with tax types included in MeF will have access to some features of MyTax Illinois, IDOR’s new online return filing and account management system. Features available to these filers include account management and electronic payment options as well as limited viewing and printing of business income tax returns. Service through MeF will not be interrupted. See Informational Bulletin FY 2013-14 for more information.
Illinois is now accepting Business Income Tax E-File for tax years 2012, 2011 and 2010.
Note: BIT E-File will expand to include the 2012 IL-1065.
Electronic Filing Mandate Effective for tax years ending on or after December 31, 2011, corporations, including S corporations, that are required to file their federal Forms U.S. 1120 and U.S. 1120S income tax returns by electronic means, are now required to file their Illinois returns through the IRS and Illinois Modernized Electronic Filing program (MeF). The Illinois MeF program currently supports the:
In the event that you are required to file electronically for federal purposes and the Illinois MeF program does not support your return type, you are exempt from the requirement until such a time that we are prepared to include your return type (i.e., partnerships, trusts and estates, exempt organizations, composite returns, pass-through entities). Illinois MeF does not support any amended returns. Therefore, these returns are exempt from the new requirements.
We have posted an updated schema version that includes all business rules for both the 2011 IL-1120-ST and IL-1120. In a very late legislative session there were two changes made that we will not be addressing or accepting as part of the 2011 Business Income Tax electronic filing.
The 2011 Schedule INL has been changed and is included in the schemas this year. We are allowing only Schedule INL, Step 4 as this schedule accomplishes two different tasks. See the Schedule INL instructions for more information.
IL-2220 Step 2 has changed regarding the 100% and 150% calculation. This information is available on the IL-2220 and instructions. This change eliminated IL-2220, Line 7, Col B and Line 8, Col B.
We will waive the late payment penalty for underpayment of estimated tax if you timely paid the lesser of 100 percent (rather than 150 percent, as previously published) of the prior year’s tax liability or 90 percent of the current year’s tax liability. If you elect to complete Form IL-2220, this form reflects that waiver.
IL-1120 Business Rule Production Update
Business rules, effective July 13, 2011, specifically make changes to the process of applying Illinois net loss deductions (NLD). Prior versions required that the NLD be used in chronological order. This version replaces those rules to allow the taxpayer to use the NLD that will expire first.
If a return was filed before these rules were changed, do not file an amended return, unless you are notified to do so by the department. However, taxpayers may need to make adjustments to their records for future year filings (effective January 1, 2011, use of the NLD is suspended for corporations, excluding S corporations).
In addition to the NLD changes, other business rules were updated to allow more returns to be accepted electronically through the MeF program.
Note: The IL-1065, IL-1041, and IL-990-T are not available to be electronically filed at this time.