The Illinois 1120 form is a tax return specifically designed for corporations operating in Illinois to report their income and calculate the state’s income and replacement tax. This form is essential for businesses whose tax year ends on or after December 31, 2020, and before December 31, 2021. For detailed instructions and to ensure compliance, it is crucial to fill out this form accurately; click the button below to get started.
The Illinois 1120 form serves as a crucial document for corporations operating within the state, specifically designed to report income and calculate the replacement tax. This form is applicable for tax years ending on or after December 31, 2020, and before December 31, 2021. Corporations must be mindful of their filing deadlines, as outlined in the accompanying instructions. The form requires detailed information about the corporation, including its legal name, mailing address, and federal employer identification number (FEIN). Additionally, it prompts businesses to indicate whether they are filing their first or final return, and if any significant changes have occurred, such as a business sale or name change. The 1120 form also includes various sections for calculating income or loss, determining base income, and assessing tax liabilities after credits. Corporations must provide supporting documentation for specific deductions and credits, ensuring compliance with state regulations. Understanding the nuances of this form is essential for accurate reporting and tax obligations.
Illinois Department of Revenue
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2021 Form IL-1120
Corporation Income and Replacement Tax Return
See “When should I file?” in the Form IL-1120 instructions for a list of due dates.
If this return is not for calendar year 2021, enter your fiscal tax year here.
Tax year beginning
20
, ending
month day
year
This form is for tax years ending on or after December 31, 2021, and before December 31, 2022. For all other situations, see instructions to determine the correct form to use.
Enter the amount you are paying.
$ _______________________
Step 1: Identify your corporation
AEnter your complete legal business name. If you have a name change, check this box.
Name:
BEnter your mailing address.
Check this box if either of the following apply:
•this is your first return, or
•you have an address change.
C/O:
__________________________________________________
Mailing address:
___________________________________________
City:
State:
ZIP:
CIf this is the first or final return, check the applicable box(es).
First return
Final return (Enter the date of termination.
)
mm dd
yyyy
DIf this is a final return because you sold this business, enter the date sold
(mm dd yyyy)
, and the new owner’s FEIN.
ECheck the box and see the instructions if your business is a:
Unitary Filer (Combined return)
Foreign insurer
FIf you completed the following, check the box and attach the federal
form(s) to this return.
Federal Form 8886 Federal Schedule M-3, Part II, Line 12
GApportionment Formulas. Mark the appropriate box or boxes and see
Apportionment Formula instructions.
Sales companies
Insurance companies
Financial organizations
Transportation companies
Federally regulated exchanges
H Check this box if you attached Illinois Schedule UB.
I Check this box if you attached the Subgroup Schedule.
J Check this box if you attached Illinois Schedule 1299-D.
K Check this box if you attached Form IL-4562.
L Check this box if you attached Illinois Schedule M (for businesses). M Check this box if you attached Schedule 80/20.
NEnter your federal employer identification number (FEIN).
OIf you are a member of a group filing a federal consolidated return, enter the FEIN of the parent.
PEnter your North American Industry Classification System (NAICS) Code. See instructions.
QEnter your corporate file (charter) number assigned to you by the Secretary of State.
REnter the city, state, and zip code where your accounting records are kept. (Use the two-letter postal abbreviation, E.G., IL, GA, etc.)
City
State
ZIP
SIf you are making the business income election to treat all nonbusiness income as business income, check this box and enter zero on Lines 24 and 32.
TCheck your method of accounting.
Cash Accrual Other
UIf you are making a discharge of indebtedness adjustment on Form IL-1120, Line 36, check this
box and attach federal Form 982 and a detailed statement.
VCheck this box if you attached Schedule INL.
WIf you annualized your income on Form IL-2220,
check this box and attach Form IL-2220.
XCheck this box if your business activity is protected under Public Law 86-272.
Y Check this box if you are a 52/53 week filer.
Attach your payment and Form IL-1120-V here.
If you owe tax on Line 67, make an electronic payment at Tax.Illinois.gov. If you must mail your payment, complete a payment voucher, Form IL-1120-V. Write your FEIN, tax year ending, and “IL-1120-V” on your check or money order and make it payable to “Illinois Department of Revenue.” Attach your voucher and payment here.
Enter the amount of your payment on the top of this page in the space provided.
If a payment is not enclosed, mail this return to:
If a payment is enclosed, mail this return to:
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19048
PO BOX 19038
SPRINGFIELD IL 62794-9048
SPRINGFIELD IL 62794-9038
This form is authorized as outlined by the Illinois Income Tax Act. Disclosure of this
IR
NS
DR ____
Page 1 of 4
information is REQUIRED. Failure to provide information could result in a penalty.
IL-1120 (R-12/21)
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Step 2: Figure your income or loss
(Whole dollars only)
1Federal taxable income from U.S. Form 1120, Line 30.
Attach a copy of your federal return.
1
00
2
Net operating loss deduction from U.S. Form 1120, Line 29a. This amount cannot be negative.
3
State, municipal, and other interest income excluded from Line 1.
4
Illinois income and replacement tax and surcharge deducted in arriving at Line 1.
5
Illinois Special Depreciation addition. Attach Form IL-4562.
6
Related-Party Expenses additions. Attach Schedule 80/20.
7
Distributive share of additions. Attach Schedule(s) K-1-P or K-1-T.
8
Other additions. Attach Schedule M (for businesses).
9
Add Lines 1 through 8. This amount is your income or loss.
Step 3: Figure your base income or loss
10
Interest income from U.S. Treasury and other exempt federal obligations.
11River Edge Redevelopment Zone Dividend subtraction.
Attach Schedule 1299-B.
11
12River Edge Redevelopment Zone Interest subtraction.
12
13
High Impact Business Dividend subtraction. Attach Schedule 1299-B.
14
High Impact Business Interest subtraction. Attach Schedule 1299-B.
15
Contribution subtraction. Attach Schedule 1299-B.
16
Contributions to certain job training projects. See instructions.
17
Foreign Dividend subtraction. Attach Schedule J. See instructions.
18
Illinois Special Depreciation subtraction. Attach Form IL-4562.
19
Related-Party Expenses subtraction. Attach Schedule 80/20.
Distributive share of subtractions. Attach Schedule(s) K-1-P or K-1-T.
21
Other subtractions. Attach Schedule M (for businesses).
22
Total subtractions. Add Lines 10 through 21.
23
Base income or loss. Subtract Line 22 from Line 9.
AIf the amount on Line 23 is derived inside Illinois only, check this box and enter the amount from Step 3, Line 23 on Step 5, Line 35. You may not complete Step 4. (You must leave Step 4, Lines 24 through 34 blank.)
If you are a unitary filer, do not check this box. Check the box on Line B and complete Step 4.
B If any portion of the amount on Line 23 is derived outside Illinois, or you are a unitary filer, check this box and complete all lines of Step 4. (Do not leave Lines 28 through 30 blank.) See instructions.
Step 4: Figure your income allocable to Illinois
(Complete only if you checked the box on Line B, above.)
24 Nonbusiness income or loss. Attach Schedule NB.
24
25Business income or loss included in Line 23 from non-unitary partnerships, partnerships included on a Schedule UB, S corporations, trusts,
or estates. See instructions.
25
26
Add Lines 24 and 25.
27
Business income or loss. Subtract Line 26 from Line 23.
28
Total sales everywhere. This amount cannot be negative.
29
Total sales inside Illinois. This amount cannot be negative.
30
Apportionment Factor. Divide Line 29 by Line 28. Round to six decimal places.
31
Business income or loss apportionable to Illinois. Multiply Line 27 by Line 30.
32
Nonbusiness income or loss allocable to Illinois. Attach Schedule NB.
33Business income or loss apportionable to Illinois from non-unitary partnerships, partnerships
included on a Schedule UB, S corporations, trusts, or estates. See instructions.
33
34 Base income or loss allocable to Illinois. Add Lines 31 through 33.
34
Page 2 of 4
Printed by the authority of the state of Illinois. Web only, one copy.
Step 5: Figure your net income
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35Base income or net loss from Step 3, Line 23, or Step 4, Line 34.
36Discharge of indebtedness adjustment. Attach federal Form 982. See instructions.
37Adjusted base income or net loss. Add Lines 35 and 36. See instructions.
38Illinois net loss deduction. If Line 37 is zero or a negative amount, enter zero. Check this box and attach a detailed statement if you have merged losses.
39Net income. Subtract Line 38 from Line 37.
3500
3600
3700
3800
3900
Step 6: Figure your replacement tax after credits
40
Replacement tax. Multiply Line 39 by 2.5% (.025).
41
Recapture of investment credits. Attach Schedule 4255.
42
Replacement tax before credits. Add Lines 40 and 41.
43
Investment credits. Attach Form IL-477.
44
Replacement tax after credits. Subtract Line 43 from Line 42. If the amount is negative, enter zero.
Step 7: Figure your income tax after credits
45
Income tax. Multiply Line 39 by 7.0% (.07).
46
47
Income tax before credits. Add Lines
45 and 46.
48
Income tax credits. Attach Schedule
1299-D.
49
Income tax after credits. Subtract Line 48 from Line 47. If the amount is negative, enter zero.
Step 8: Figure your refund or balance due
50Replacement tax before reductions. Enter the amount from Line 44.
51Foreign Insurer replacement tax reduction. Attach Schedule INS or UB/INS. See instructions.
52Subtract Line 51 from Line 50. This is your net replacement tax.
53Income tax before reductions. Enter the amount from Line 49.
54Foreign Insurer income tax reduction. Attach Schedule INS or UB/INS. See instructions.
55Subtract Line 54 from Line 53. This is your net income tax.
56Compassionate Use of Medical Cannabis Program Act surcharge. See instructions.
57Sale of assets by gaming licensee surcharge. See instructions.
58Total net income and replacement taxes and surcharges. Add Lines 52, 55, 56, and 57.
59Underpayment of estimated tax penalty from Form IL-2220. See instructions.
60Total taxes, surcharges, and penalty. Add Lines 58 and 59.
61Payments. See instructions.
a
Credits from previous overpayments.
61a
b
Total payments made before the date this return is filed.
61b
cPass-through withholding reported to you.
Attach Schedule(s) K-1-P or K-1-T.
61c
d
Pass-through entity tax credit reported to you.
61d
e
Illinois income tax withholding. Attach Form(s) W-2G.
61e
62Total payments. Add Lines 61a through 61e.
63Overpayment. If Line 62 is greater than Line 60, subtract Line 60 from Line 62.
64Amount to be credited forward. See instructions.
Check this box and attach a detailed statement if this carryforward is going to a different FEIN.
65Refund. Subtract Line 64 from Line 63. This is the amount to be refunded.
66Complete to direct deposit your refund.
Routing Number
Checking or
Savings
Account Number
5000
5100
5200
5300
5400
5500
5600
5700
5800
5900
6000
6200
63 00
64 00
6500
67 Tax due. If Line 60 is greater than Line 62, subtract Line 62 from Line 60. This is the amount you owe.
67
Step 9: Sign below - Under penalties of perjury, I state that I have examined this return and, to the best of my knowledge, it is true, correct and complete.
Sign
(
Check if the Department
Here
may discuss this return with the
Signature of authorized officer
Date (mm/dd/yyyy) Title
Phone
paid preparer shown in this step.
Paid
Check if
Print/Type paid preparer’s name
Paid preparer’s signature
Date (mm/dd/yyyy)
self-employed
Paid Preparer’s PTIN
Preparer
Firm’s name
Firm’s FEIN
Use Only
Firm’s address
Firm’s phone
Page 3 of 4
Enter the amount of your payment in the space provided on the top of page 1.
Attach supporting documents to your Form IL-1120.
*ZZZZZZZZZ*
If you completed:
Attach:
Form IL-1120
U.S. 1120, Pages 1 through 6, or equivalent
Step 1, Line E (unitary) only
Schedule UB/Subgroup Schedule
Check the box on Form IL-1120, Step 1, Line H
Step 1, Line E (foreign insurer) only
Schedule INS
Step 1, Line E (unitary) and (foreign insurer)
Schedule UB/Subgroup Schedule and Schedule UB/INS
Step 1, Line F
Federal Form 8886 or Federal Schedule M-3 (as applicable)
Step 1, Line U
Federal Form 982
Step 1, Line V
Schedule INL
Step 1, Line W
Form IL-2220
Lines 5 and 18
Form IL-4562
Special Depreciation addition
Check the box on Form IL-1120, Step 1, Line K
Special Depreciation subtraction
Lines 6 and 19
Schedule 80/20
Related-Party Expenses addition
Check the box on Form IL-1120, Step 1, Line M
Related-Party Expenses subtraction
Lines 7 and 20
Schedule(s) K-1-P or K-1-T
Distributive share of additions
Distributive share of subtractions
Lines 8 and 21
Schedule M and any required support listed on Schedule M
Other additions
Check the box on Form IL-1120, Step 1, Line L
Other subtractions
Lines 11 through 15
Schedule 1299-B and any required support listed on Schedule
River Edge Redevelopment Zone
1299-B
Dividend subtraction
Interest subtraction
High Impact Business Dividend subtraction
High Impact Business Interest subtractions
Contributions subtraction
Line 17
Foreign Dividend Subtraction
Illinois Schedule J, and U.S. 1120, Schedule C or equivalent
Lines 24 and 32
Schedule NB
Nonbusiness income or loss
Nonbusiness income or loss allocable to Illinois
Lines 25 and 33
Business income or loss from non-unitary
partnerships, partnerships included on a Schedule UB,
S corporations, trusts, or estates
Business income or loss apportionable to Illinois from
non-unitary partnerships, partnerships included on a
Schedule UB, S corporations, trusts, or estates
Line 36 Discharge of indebtedness adjustment
Check the box on Form IL-1120, Step 1, Line U
Lines 41 and 46 Recapture of investment credit
Schedule 4255
Line 43
Investment credits
Form IL-477 and any required support listed on Form IL-477
Line 48
Income tax credits
Schedule 1299-D and any required support listed in the Schedule
1299-D instructions or Schedule 1299-I
Check the box on Form IL-1120, Step 1, Line J
Lines 51 and 54 Foreign Insurer tax reduction
Schedule INS or Schedule UB/INS (for unitary filers)
Check the box on Form IL-1120, Step 1, Line E
Line 59
Underpayment of estimated tax penalty
If you annualized your income on Form IL-2220, Step 6,
check the box on Form IL-1120, Step 1, Line W
Line 61c
Pass-through withholding reported
All Schedules K-1-P and K-1-T you received showing
to you
pass-through withholding
Line 61d Pass-through entity tax credit
reported to you
pass-through entity tax credit
Line 61e Illinois income tax withholding
Copies of all Forms W-2G
**Failure to attach the required documents may result in the disallowance of the corresponding line item.**
Page 4 of 4
Completing the Illinois 1120 form requires careful attention to detail and accuracy. The form is essential for corporations operating in Illinois to report their income and calculate taxes owed. Follow these steps to ensure the form is filled out correctly.
After completing these steps, review the form for accuracy. Ensure all necessary attachments are included before submission. This will help avoid delays or issues with processing your return.
The Illinois 1120 Form is the Corporation Income and Replacement Tax Return used by corporations operating in Illinois. This form is required for tax years ending on or after December 31, 2020, and before December 31, 2021. It is essential for corporations to accurately report their income, calculate their tax liability, and ensure compliance with state tax regulations.
Corporations that are doing business in Illinois must file the Illinois 1120 Form. This includes domestic corporations and foreign corporations that have income derived from sources within Illinois. Additionally, if a corporation is part of a unitary group or is a foreign insurer, specific additional considerations apply, and the corporation must check the appropriate boxes on the form.
The due date for filing the Illinois 1120 Form generally aligns with the federal corporate tax return deadlines. For most corporations, this means the form is due on the 15th day of the third month following the end of the corporation's tax year. For example, if a corporation operates on a calendar year, the form would be due on March 15 of the following year. If the due date falls on a weekend or holiday, the deadline is extended to the next business day.
To complete the Illinois 1120 Form, corporations must provide various pieces of information, including:
To calculate tax liability, corporations must follow several steps outlined in the form:
Failing to file the Illinois 1120 Form by the due date can result in penalties and interest on any unpaid tax. The Illinois Department of Revenue may impose a late filing penalty, which can be a percentage of the tax due. Additionally, interest will accrue on any unpaid balance from the due date until the payment is made. It is advisable to file the return as soon as possible, even if payment cannot be made immediately, to minimize penalties.
Yes, corporations can amend their Illinois 1120 Form if they discover errors or need to make adjustments after the initial filing. This is done by submitting an amended return, typically using the same form with the necessary corrections noted. It is important to include any supporting documentation that justifies the changes made.
Additional resources for filing the Illinois 1120 Form can be found on the Illinois Department of Revenue's website. The site provides access to instructions, FAQs, and contact information for assistance. Corporations may also consider consulting with a tax professional for guidance specific to their situation.
Incorrectly Reporting Tax Year: One common mistake is failing to accurately report the tax year for which the form is being filed. It's crucial to ensure that the tax year entered matches the fiscal year of the corporation. If the return is for a year other than 2020, using the correct form is essential to avoid delays or penalties.
Omitting Required Attachments: Many filers forget to attach necessary documents, such as federal forms or schedules that support the entries made on the IL-1120. Missing attachments can lead to disallowance of deductions or credits, resulting in higher tax liabilities.
Errors in Income Calculation: Mistakes in calculating federal taxable income or state additions and subtractions can significantly impact the final tax owed. It's important to double-check these calculations and ensure that all income sources are accurately reported.
Neglecting to Sign the Return: Failing to sign the form is a simple yet critical oversight. The IL-1120 must be signed by an authorized officer of the corporation. Without a signature, the return may be considered invalid, potentially leading to penalties or other issues with the Illinois Department of Revenue.
When filing the Illinois 1120 form, there are several other documents that may be necessary to ensure a complete and accurate submission. Each of these forms serves a specific purpose and helps clarify various aspects of your corporation's tax situation. Below is a list of commonly used forms that accompany the Illinois 1120.
Including the appropriate forms with your Illinois 1120 can streamline the filing process and help avoid potential issues with the Illinois Department of Revenue. Make sure to check the specific requirements for your business to ensure all necessary documents are attached.
The Illinois 1120 form shares similarities with the federal Form 1120, which is used by corporations to report their income, gains, losses, deductions, and credits. Both forms require corporations to disclose their federal taxable income and allow for various adjustments that can affect the final tax liability. The federal form also includes sections for detailing specific deductions and credits, much like the Illinois version, which ensures that corporations comply with both state and federal tax regulations. The overall structure of both forms is designed to capture a corporation's financial activities comprehensively, reflecting the income and tax obligations at different levels.
Another related document is the Illinois Schedule M. This form is specifically designed for businesses to report adjustments to their income that are not captured on the standard income tax return. Similar to the Illinois 1120, the Schedule M allows corporations to add or subtract various items that impact their taxable income. This includes items like related-party expenses and other specific adjustments that can alter a corporation's financial picture. Both documents work in tandem to ensure that all relevant financial information is accurately reported and that tax liabilities are calculated correctly.
The Illinois Schedule K-1-P is also comparable, as it reports the distributive share of income, deductions, and credits from partnerships or S corporations. Like the Illinois 1120, this form is crucial for determining how income is allocated among partners or shareholders. Each partner or shareholder receives a K-1, which informs them of their share of the entity's income, and this information is then used to complete their individual tax returns. The K-1's role in reflecting income distributions aligns with the 1120's purpose of reporting corporate income, ensuring that all income is accounted for in the tax system.
The federal Form 8825 is another document that bears resemblance to the Illinois 1120. This form is used by partnerships and S corporations to report rental real estate income and expenses. Similar to the Illinois 1120, it requires a detailed breakdown of income and expenses related to property holdings. Both forms emphasize the importance of accurately reporting income generated from business activities and ensuring that deductions are properly documented. The 8825, while focused on real estate, serves a similar purpose in maintaining transparency in income reporting as the Illinois 1120 does for corporations.
Lastly, the Illinois Form IL-4562, which deals with depreciation and amortization, is akin to the Illinois 1120 in that it requires businesses to report and justify their depreciation deductions. Both forms require detailed calculations and documentation to ensure that depreciation is accurately reflected in taxable income. This connection underscores the importance of accounting for asset depreciation in both state and federal tax calculations, allowing corporations to reduce their taxable income appropriately. The interplay between these forms highlights the comprehensive nature of tax reporting required from corporations operating in Illinois.
When filling out the Illinois 1120 form, careful attention to detail is essential. Below is a list of things to consider, both what to do and what to avoid.
Filling out the Illinois 1120 form can be complex, but adhering to these guidelines will help ensure a smoother process. Proper preparation is key to avoiding potential issues.
This is incorrect. Any corporation that earns income from Illinois sources, regardless of its physical presence, must file this form. This includes businesses that operate online or have remote employees in the state.
In reality, filing the IL-1120 is mandatory for corporations that meet certain income thresholds. Failure to file can lead to penalties and interest on unpaid taxes.
Tax rates can vary based on several factors, including the type of business and the income level. Different rates may apply for specific industries or types of income.
While the two forms share some similarities, they are distinct. The IL-1120 is specifically for Illinois taxes and includes state-specific instructions and requirements.
This is false. Corporations can amend their IL-1120 forms if they discover errors or need to make changes. It is important to follow the correct procedures for amendments to avoid complications.
When filling out the Illinois 1120 form, keep these key points in mind:
By following these steps, you can ensure that your Illinois 1120 form is filled out correctly and submitted on time.