×
tax forms found in
Tax Form Code
Tax Form Name

Illinois Free Printable 2020 IL-1120-ST Instructions for 2021 Illinois Small Business Corporation Replacement Tax Return (Includes Schedule B)

It appears you don't have a PDF plugin for this browser. Please use the link below to download 2020-illinois-form-il-1120-st.pdf, and you can print it directly from your computer.

Small Business Corporation Replacement Tax Return (Includes Schedule B)
2020 IL-1120-ST Instructions

Illinois Department of Revenue Use for tax year ending on or after December 31, 2020, and before December 31, 2021. IL-1120-ST Instructions 2020 What’s New? • Schedules NLD, Illinois Net Loss Deduction, and UB/NLD, Unitary Illinois Net Loss Deduction, are no longer schedules to be completed and sent in with the return. Both schedules have been redesigned as worksheets to be completed to assist you with calculating your Illinois Net Loss Deduction. The worksheets are not required to be submitted with your return and should be retained with your records. See Appendix C in these instructions. • Due to the elimination of the NLD schedules, a checkbox for merged losses has been added to Step 7, Line 50 and a request for a detailed statement of the merged loss(es) has been added, See Step 7, Line 50 instructions for more information. • A note has been added to the Line 1 instructions about Federal Paycheck Protection Program (PPP) loans. • A checkbox has been added to Step 9, Line 64, to indicate if there is credit carryforward to a different FEIN on the taxpayer’s final return. A detailed statement must be attached to your return. See Step 9, Line 64 instructions for more information. • If you are reporting a discharge of indebtedness loss on Step 7, Line 48, a detailed statement is to be enclosed with your return and the box checked in Step 1, Line S. See Step 7, Line 48 instructions for more information. Reminder: Taxpayers making an extension payment, an estimated payment, a voluntary prepayment of their tax liabilities, or a return payment should pay electronically using MyTax.Illiois.gov or mail Form IL-1120-ST-V, Payment Voucher for Small Business Corporation Replacement Tax. Table of Contents What’s New?.........................................................................................................................................................1 General Information........................................................................................................................................2 Specific Instructions.......................................................................................................................................7 Apportionment Formulas.......................................................................................................................................15 Illinois Schedule B Instructions...........................................................................................................................18 Appendix A - Extension Tax Payment Worksheet.......................................................................................21 Appendix B - Tax Pre-payment Worksheet........................................................................................................22 Appendix C - Illinois Net Loss Deduction Worksheet and Instructions.............................................................25 Appendix D - Discharge of Indebtedness Worksheet and Instructions........................................................28 IL-1120-ST Instructions (R-01/21) Printed by the authority of the State of Illinois - Web only, One copy Page 1 of 28 General Information Who must file Form IL-1120-ST? When should I file? You must file Form IL-1120-ST if you are a small business corporation (“S corporation”), as defined in Internal Revenue Code (IRC) Section 1361(a), that Your Illinois filing due date is the same as your federal filing due date. In general, Form IL-1120-ST is due on or before the 15th day of the 3rd month following the close of the tax year. • has net income or loss as defined under the Illinois Income Tax Act (IITA); or Automatic seven-month extension — We grant you an automatic seven-month extension of time to file your small business corporate tax return. The automatic extension of time to file is granted whether or not you request it. You are not required to file a form in order to obtain this automatic extension. If you expect tax to be due, you must pay any tentative tax due, by the original due date of the return, in order to avoid interest and penalty on tax not paid by that date. To pay any tax due by the original due date of your return: • is qualified to do business in the state of Illinois and is required to file U.S. Form 1120S (regardless of net income or loss). If you own a Qualified Subchapter S Subsidiary (QSSS) defined in IRC Section 1361(b)(3), as well as any other entity that is disregarded as an entity separate from you for purposes of the IRC, it is likewise disregarded as a separate entity for purposes of the IITA. You must include all items of income, deduction, loss, credit, etc., from such entities on your return as if they were earned or incurred by you directly. If you are an S corporation that is a member of a unitary business group, see the instructions for Illinois Schedule UB, Combined Apportionment for Unitary Business Group, and “What if I am a member of a unitary group?” in the general instructions below for information about filing requirements. S corporations may be required to apportion their business income as members of a unitary group, but cannot file a combined return. What forms must I use? In general, you must obtain and use forms prescribed by the Illinois Department of Revenue (IDOR). Separate statements not on forms provided or approved by IDOR will not be accepted and you will be asked for appropriate documentation. Failure to comply with this requirement may result in failure to file penalties, a delay in the processing of your return, or a delay in the generation of any overpayment. Additionally, failure to submit appropriate documentation when requested may result in a referral to our Audit Bureau for compliance action. S corporations must complete Form IL-1120-ST. Do not send a computer printout with line numbers and dollar amounts attached to a blank copy of the return. Computer generated printouts are not acceptable, even if they are in the same format as IDOR’s forms. Computer generated forms from an IDOR-approved software developer are acceptable. Form IL-1120-ST (R-12/20) is for tax years ending on or after December 31, 2020, and before December 31, 2021. For tax years ending on or after December 31, 2019 and before December 31, 2020, use the 2019 form. Using the wrong form will delay the processing of your return. How do I register my business? If you are required to file Form IL-1120-ST, you should register with IDOR. You may register • online with MyTax Illinois, our free online account management program for taxpayers; • by completing Form REG-1, Illinois Business Registration Application, and mailing it to the address on the form; or • by visiting a regional office. Visit our website at tax.illinois.gov for more information. Registering with IDOR prior to filing your return ensures that your tax returns are accurately processed. Your identification numbers as an Illinois business taxpayer are your federal employer identification number (FEIN) and your Illinois account number. Page 2 of 28 • visit tax.illinois.gov, for information about ACH credit, • pay using mytax.illinois.gov, or • mail Form IL-1120-ST-V, Payment Voucher for Small Business Corporation Replacement Tax, using the address on the form. If an unpaid liability is disclosed when you file your return, then you may owe penalty and interest charges in addition to the tax. See the “What are the penalties and interest?” section below. An extension of time to file your Form IL-1120-ST is not an extension of time for payment of Illinois tax. Additional extensions beyond the automatic extension period — We will grant an extension of more than seven months only if an extension is granted by the Internal Revenue Service (IRS) beyond the date of the Illinois automatic extension. Your additional Illinois extension will be equal to the federal extension, plus one month. You must attach a copy of the approved federal extension to your Form IL-1120-ST. When should I pay? Payment of tax — You must pay your Illinois Replacement Tax and pass-through withholding reported on behalf of your members in full on or before the original due date of the return. Failure to pay the tax due on or before the original due date of the return may result in penalty and interest. This payment date applies even though an automatic extension for filing your return has been granted. All payments must be made using Form IL-1120-ST-V, Payment Voucher for Small Business Corporation Replacement Tax. Estimated tax payments — Small business corporations are not required to make estimated tax payments. Extension Payments - If you expect tax to be due, you must pay any tentative tax due by the original due date of the return using Form IL-1120-ST-V. See Appendix A for more information. Voluntary Prepayments - You may make voluntary prepayments of your own tax liability as well as make pass-through withholding prepayments on behalf of your shareholders using Form IL-1120-ST-V. See Appendix B for more information. We encourage you to make your payments electronically using MyTax Illinois or Modernized E-File (MeF) systems, or you may use Form EFT-1, Authorization Agreement for Certain Electronic Payments, to set up an ACH credit or phone debit transaction. These options can be found on our website at tax.illinois.gov. If you make your payments using MyTax Illinois, MeF, or EFT, do not mail us your IL-1120-ST-V forms. You must use one of our electronic payment options if IDOR has notified you that you are required to make payments electronically. We will apply each payment to the earliest due date until that liability is paid, unless you provide specific instructions to apply it to another period. You may also be assessed a bad check penalty if your remittance is not honored by your financial institution. IL-1120-ST Instructions (R-01/21) Who should sign the return? Your Form IL-1120-ST must be signed by the president, vice president, treasurer, or any other officer duly authorized to sign the return. In the case of a bankruptcy, a receiver, trustee, or assignee must sign any return required to be filed on behalf of the corporation. The signature verifies by written declaration (and under penalties of perjury) that the signing individual has personally examined the return and the return is true, correct, and complete. The fact that an individual’s name is signed to a return is prima facie evidence that the individual is authorized to sign the return on behalf of the corporation. Any person paid to prepare the return (other than a regular, full-time employee of the taxpayer, such as a clerk, secretary, or bookkeeper) must provide a signature, date the return, enter the preparer tax identification number (PTIN) issued to them by the Internal Revenue Service, and provide their firm’s name, address, and phone number. If your return is not signed, any overpayment of tax is considered forfeited if, after notice and demand for signature, you fail to provide a signature within three years from the date your return was filed. What are the penalties and interest? Penalties — You will owe • a late-filing penalty if you do not file a processable return by the extended due date; • a late-payment penalty if you do not pay the tax you owe by the original due date of the return; • a bad check penalty if your remittance is not honored by your financial institution; • a cost of collection fee if you do not pay the amount you owe within 30 days of the date printed on your bill. Interest — Interest is calculated on tax from the day after the original due date of your return through the date you pay the tax. We will bill you for penalties and interest. For more information about penalties and interest, see Publication 103, Penalties and Interest for Illinois Taxes, available at tax.illinois.gov. What if I am discontinuing my business? Liquidation, withdrawal from Illinois, or loss of charter — If you are a corporation that is liquidated, withdraws either voluntarily or involuntarily from Illinois, or in any manner surrenders or loses your charter during any tax year, you are still required to file tax returns. Also, we will pursue the assessment and collection of taxes owed by you or your shareholders. Sales or transfers — If you are a corporation that, outside the usual course of business, sells or transfers the major part of any one or more of • the stock of goods which you are in the business of selling, • the furniture or fixtures of your business, • the machinery and equipment of your business, or • the real property of your business, you or the purchaser must complete and send us Form CBS-1, Notice of Sale, Purchase, or Transfer of Business Assets, no later than 10 days prior to the date the sale takes place. Send this form, along with copies of the sales contract and financing agreement, to: ILLINOIS DEPARTMENT OF REVENUE BULK SALES UNIT PO BOX 19035 SPRINGFIELD IL 62794-9035 or [email protected] IL-1120-ST Instructions (R-01/21) Request for prompt determination — You may make a request for prompt determination of liability, in accordance with IITA 35 ILCS 5/905(i), if you are a corporation in the process of dissolution. A completed tax return must be on file with us before you can submit a request for prompt determination. Do not submit your return and request at the same time. Mail your initial return to the address indicated on the form. You should allow 12 weeks for processing. If your request is properly made, the expiration of the statute of limitations (absent fraud) will not extend beyond 18 months from the date of your request. Mail your request and a copy of your previously submitted return to: ILLINOIS DEPARTMENT OF REVENUE PO BOX 19044 SPRINGFIELD IL 62794-9044 The procedure described above does not apply to 11 U.S. Code Section 505, Determination of Tax Liability requests. What if I need to correct or change my return? Do not file another Form IL-1120-ST with “amended” figures to change your originally filed Form IL-1120-ST. If you need to correct or change your return after it has been filed, you must file Form IL-1120-ST-X, Amended Small Business Replacement Tax Return. Returns filed before the extended due date of the return are treated as your original return for all purposes. For more information, see Form IL-1120-ST-X instructions. You should file Form IL-1120-ST-X only after you have filed a processable Illinois Income Tax return. You must file a separate Form IL-1120-ST-X for each tax year you wish to change. State changes only — File Form IL-1120-ST-X promptly if you discover an error on your Illinois return that does not relate to an error on your federal return but rather was caused by • a mistake in transferring information from your federal return to your Illinois return; • failing to report or misreporting to Illinois an item that has no effect on your federal return; or • a mistake in another state’s tax return that affects the computation of your Illinois tax liability. If you are claiming an overpayment, Form IL-1120-ST-X must be filed within three years after the extended due date or the date the return was filed, or within one year after the tax giving rise to the overpayment was paid, whichever is latest. Federal changes only — File Form IL-1120-ST-X if you have filed an amended federal return or if you have been notified by the IRS that they have made changes to your return. This includes any change in your federal income tax liability, any tax credit, or the computation of your federal taxable income as reported for federal income tax purposes, if the change affects any item entering into the computation of net income, net loss, or any credit for any year under the IITA. You must file Form IL-1120-ST-X no later than 120 days after the federal changes have been agreed to or finally determined to avoid a late-payment penalty. If your federal change decreases the tax due to Illinois and you are entitled to a refund or credit carryforward, you must file Form IL-1120-ST-X within two years plus 120 days of federal finalization. Attach a copy of federal finalization or proof of acceptance from the IRS along with a copy of your amended federal form, if applicable, to your Form IL-1120-ST-X. Examples of federal finalization include a copy of one or more of the following items: • • your audit report from the IRS your federal record of account verifying your ordinary business income Page 3 of 28 What records must I keep? You must maintain books and records to substantiate any information reported on your Form IL-1120-ST. Your books and records must be available for inspection by our authorized agents and employees. Do the IDOR and the IRS exchange income tax information? The IDOR and the IRS exchange income tax information for the purpose of verifying the accuracy of information reported on federal and Illinois tax returns. All amounts you report on Form IL-1120-ST are subject to verification and audit. Should I round? You must round the dollar amounts on Form IL-1120-ST and accompanying schedules to whole-dollar amounts. To do this, you should drop any amount less than 50 cents and increase any amount of 50 cents or more to the next higher dollar. What if I have an Illinois net loss deduction (NLD)? An Illinois net loss deduction (NLD) can be used to reduce the base income allocable to Illinois only if the loss year return has been filed and to the extent the loss was not used to offset income from any other tax year. S corporations and partnerships, including any that are members of a unitary group, trusts, and non-unitary corporations should use the Illinois Net Loss Deduction Worksheet in Appendix C to determine any NLD. To determine your “Illinois net loss” start with federal taxable income and apply all addition and subtraction modifications and all allocation and apportionment provisions. In order to have any available NLD applied to your return, you must claim the deduction on Step 7, Line 50. See specific instructions for Step 7, Line 50. If you have an Illinois net loss for this tax year, you must file Form IL-1120-ST reporting the loss in order to carry the loss forward to another year. If corrections have been made to the loss amount (e.g., federal audit or amended return), you must report the corrected amount when you file. Ensure you have filed returns (i.e., Form IL-1120, Form IL-1120-ST, Form IL-1041, or Form IL-1065) for all periods in which you were required to file an Illinois return. Unfiled returns may result in disallowed losses, processing delays, and further correspondence from IDOR. If you need more information about Illinois NLDs see Appendix C or the Illinois Income Tax Regulations, Sections 100.2050 and 100.2300 through 100.2330, available on our website at tax.illinois.gov. What are the limitations of the Illinois NLD? For tax years ending on or after December 31, 2003, Illinois net losses can no longer be carried back, and can only be carried forward for 12 years. For tax years ending on or after December 31, 1999, and before December 31, 2003, all Illinois net losses must be carried back two years (unless an election to only carry forward is made) then forward 20 years. The election to carry a loss forward only was made by checking the appropriate box on the original or amended loss-year return, whichever showed the loss first. Once the election was made to forgo the Illinois carryback provision, the election was irrevocable. Illinois net losses in tax years ending before December 31, 1999, are allowed as a carryback or carryforward deduction only in the manner allowed under IRC Section 172, including, for example, the 10-year carryback allowed to banks for bad debt losses. Page 4 of 28 The following are the carryback and carryforward years generally allowed for Illinois net losses in tax years ending before December 31, 1999. Illinois net losses in tax years beginning • after August 5, 1997, and ending before December 31, 1999, must be carried back two years, then forward 20 years. • on or before August 5, 1997, must be carried back three years, then forward 15 years. For tax years ending on or after December 31, 1996, and before December 31, 2003, you may have made the election to forgo any of the previously mentioned Illinois NLD carryback periods by checking the appropriate box on your loss year return. This election must have been made by the extended due date of your return and once made was irrevocable for that tax year. In addition, the special carryover periods in IRC Section 172, as in effect for a particular tax year, would apply to losses incurred in that year. For example, a “specified liability loss” incurred in 1998 may be carried back 10 years under IRC Section 172(b)(1)(c). Also, no limitations under IRC Section 382 or the separate return limitation year provisions of the federal consolidated return regulations apply to any NLD carryover. What if I have a discharge of indebtedness? If you had discharge of indebtedness income for a taxable year ending on or after December 31, 2008, and all or a portion of this income was excluded from your federal gross income due to bankruptcy or insolvency, then you may be required to reduce any Illinois net loss you incurred for that year before you determine an Illinois NLD. This reduction is made on the Illinois income tax return you filed for the loss year using the Loss Reduction Worksheet on Page 10 of these instructions. Attach a copy of your federal Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, to your return. For more information, see Illinois Income Tax Regulations, Section 100.2310(c). What attachments do I need? When filing your return there are certain types of income items and subtraction modifications that require the attachment of Illinois or federal forms and schedules. Breakdowns, statements, and other documentation may also be required. Instructions for these attachments appear throughout the specific instructions for completing your return. All Illinois forms and schedules include an “IL Attachment No.” in the upper right corner of the form. Required attachments should be ordered numerically behind the tax return, as indicated by the IL Attachment No. Failure to attach forms and schedules in the proper order may result in processing delays. Required copies of documentation from your federal return or other sources should be attached behind the completed Illinois return. All taxpayers, including unitary business groups, must attach a copy of your U.S. Form 1120S, Pages 1 through 5, to your Illinois return. Schedule B, Partners’ or Shareholders’ Information, must be completed and attached to all Form IL-1120-ST filings. If you are required to attach any Schedule(s) K-1-P, Partner’s or Shareholder’s Share of Income, Deductions, Credits, and Recapture, only attach Schedule(s) K-1-P you received which lists your name and FEIN in Step 2 of Schedule K-1-P. Do not attach copies of Schedule(s) K-1-P you issued and which lists your name and FEIN in Step 1 of Schedule K-1-P. When filing your Form IL-1120-ST, include only forms and schedules required to support your return. Send correspondence separately to: IL-1120-ST Instructions (R-01/21) ILLINOIS DEPARTMENT OF REVENUE TAXPAYER CORRESPONDENCE PO BOX 19044 SPRINGFIELD IL 62794-9044 Definitions to help you complete your Form IL-1120-ST. All references to “income” include losses. Base income means federal ordinary income modified by additions and subtractions as shown in Steps 2 through 5 of Form IL-1120-ST. See specific instructions for Steps 2 through 5. Business income means all income (other than compensation) that may be apportioned by formula among the states in which you are doing business without violating the Constitution of the United States. All income of a corporation is business income unless it is clearly attributable to only one state and is earned or received through activities totally unrelated to any business you are conducting in more than one state. Business income is net of all deductions attributable to that income. Most income of a corporation is regarded as business income. Consequently, in the case of a corporation other than a personal holding company, the consistent treatment of income from intangibles as business income in filing Illinois tax returns will be presumed correct. Commercial domicile means the principal place from which your trade or business is directed or managed. Nonbusiness income means all income other than business income or compensation. For more information about the different types of nonbusiness income, see the instructions for Illinois Schedule NB, Nonbusiness Income. A pass-through entity is any entity treated as a partnership, subchapter S corporation, or trust for federal income tax purposes. Pass-through entity income is the income that any partnership, subchapter S corporation, or trust passes through to its partners, shareholders, or beneficiaries. Pass-through withholding is the amounts required to be reported and paid by the pass-through entity on behalf of its nonresident partners, shareholders, and beneficiaries • • who have not submitted Form IL-1000-E, Certificate of Exemption for Pass-through Withholding, to the pass-through entity, and who receive business and nonbusiness income from the pass-through entity. Pass-through withholding is • reported to your shareholders on the Schedule K-1-P you send to them, • reported to IDOR on your Form IL-1120-ST and Illinois Schedule B, and • paid with your return or voluntarily prepaid with Form IL-1120-ST-V. If any of your shareholders are pass-through entities themselves, they are required to report and pay pass-through withholding on behalf of their own nonresident partners, shareholders, or beneficiaries on the income you passed through. Your shareholders may claim a credit on their Illinois Income Tax return for pass-through withholding you reported and paid on their behalf. • Pass-through withholding reported to you is a credit for pass-through withholding you receive on Schedules K-1-P and K-1-T as a partner, shareholder, or beneficiary of a pass-through entity. This amount will be reported on Form IL-1120-ST, Line 61c. If you are a nonresident and the pass-through withholding reported to you satisfies your Illinois Income Tax liability, you are not required to file an Illinois Income Tax return. If you had Illinois income from other sources and the pass-through withholding made on your behalf does not cover your liability, you must file a return to report the tax on all of your Illinois income and claim a credit for pass-through withholding made on your behalf. All residents and pass-through entities must file their own annual Illinois Income Tax return to claim a credit for any pass-through withholding reported to them. See Publication 129, Pass-through Entity Income, for more information. What does taxable in other states mean? Taxable in other states means you are subject to and pay “tax” in another state. “Tax” includes net income tax, franchise tax measured by net income, franchise tax for the privilege of doing business, and corporate stock tax. You are considered taxable in another state if that state has jurisdiction to subject you to a net income tax, even though that state does not impose such a tax. This definition is for purposes of allocating nonbusiness income and apportioning business income inside or outside Illinois. When must I use Illinois Schedules K-1-P, K-1-P(3), and B? You must use Illinois Schedule K-1-P to supply each shareholder with that individual’s or entity’s share of the amounts reported on your federal and Illinois tax returns. For Illinois Income Tax purposes, you must give a completed Illinois Schedule K-1-P and a copy of the Illinois Schedule K-1-P(2), Partner’s and Shareholder’s Instructions, to each shareholder. Do not file copies of Illinois Schedule K-1-P that you issue to your shareholders with your Form IL-1120-ST. However, you must keep a copy of each Illinois Schedule K-1-P with your tax records. See Illinois Schedule K-1-P(1), Instructions for Partnerships and S Corporations Completing Schedule K-1-P and Schedule K-1-P(3), for more information. You must use Illinois Schedule K-1-P(3), Pass-through Withholding Calculation for Nonresident Members, to calculate the required tax you must report and pay on behalf of your nonresident shareholders who receive business or nonbusiness income from your S corporation. You must complete the schedule if you have business or nonbusiness income distributable to Illinois nonresident shareholders who have not provided you with Form IL-1000-E, Certificate of Exemption for Pass-through Withholding. You are required to complete Schedule K-1-P(3) for each such shareholder and keep a copy of the completed schedule in your files. Do not submit Schedule K-1-P(3) to IDOR unless we request it from you. The information entered on this schedule will assist you in completing Illinois Schedule B. See Schedule K-1-P(1) for more information. You must use Illinois Schedule B to supply us with a listing of your shareholders, certain items of income and credits they received from you, and pass-through withholding you made on their behalf. You must complete all lines of Illinois Schedule B, as applicable, and file it with your Form IL-1120-ST. S corporations can both make and receive pass-through withholding. What if I am a member of a unitary group? • If an S corporation is Pass-through withholding you owe on behalf of your members is a payment of pass-through withholding you make on behalf of your nonresident shareholders who have not submitted Form IL-1000-E to you. This amount will be reported on Form IL-1120-ST, Line 59. IL-1120-ST Instructions (R-01/21) • unitary with a combined group and uses the same taxable year as the combined group, it should use the Schedule UB prepared by the combined group in completing its Form IL-1120-ST; Page 5 of 28 • unitary with a combined group, but it uses a different taxable year, it must complete a Schedule UB using its own taxable year; or, • not unitary with a group filing a combined return, it must complete its own Schedule UB using its own taxable year. Unitary members that are S corporations can use the line reference chart in the Schedule UB instructions to help complete 2020 Form IL-1120-ST. Steps 2 and 3 of each separately filed Form IL-1120-ST must be completed showing only the S corporation’s separate-company items. The amounts on each member’s Form IL-1120-ST, Lines 14 through 21 (less Line 20) and Lines 23 through 33 (less Line 24), shall be the combined totals shown on Schedule UB, Step 3, Column E. The modifications for Form IL-1120-ST Lines 20 and 24 are not included as modifications on the Schedule UB. The amount on Form IL-1120-ST, Lines 20 or 24 must be computed on the Illinois Schedule B, Column E Worksheet, found in these instructions. Carry the combined total amounts from Schedule UB, Step 3, Column E for each line item of the Column E Worksheet. Use the Line 20 and Line 24 amounts to compute the S corporation’s base income on Form IL-1120-ST, Step 5, Line 35. Check the box on Form IL-1120-ST, Step 5, Line 35 B and complete Form IL-1120-ST, Step 6 by subtracting • on Line 36, the combined nonbusiness income of the entire What if I need additional assistance or forms? • Visit our website at tax.illinois.gov for assistance, forms or schedules. • Write us at: ILLINOIS DEPARTMENT OF REVENUE PO BOX 19001 SPRINGFIELD IL 62794-9001 Call 1 800 732‑8866 or 217 782-3336 (TDD, telecommunications device for the deaf, at 1 800 544-5304). • Visit a taxpayer assistance office - 8:00 a.m. to 5:00 p.m. (Springfield office) and 8:30 a.m. to 5:00 p.m. (all other offices), Monday through Friday. Where should I file? If a payment is enclosed with your return, mail your Form IL-1120-ST to: ILLINOIS DEPARTMENT OF REVENUE PO BOX 19053 SPRINGFIELD IL 62794-9053 If a payment is not enclosed, mail your Form IL-1120-ST to: ILLINOIS DEPARTMENT OF REVENUE PO BOX 19032 SPRINGFIELD IL 62794-9032 Specific instructions for most of the lines are included. If a specific line is not referenced, follow the instructions on the form. unitary business group, minus the portion allocable to shareholders subject to replacement tax, and • on Line 37, the amount received by the entire unitary business group from non-unitary partnerships, partnerships included on the Schedule UB, S corporations, trusts, and estates, minus the portion allocable to shareholders subject to replacement tax. On Form IL-1120-ST, Step 6, Line 40, include the everywhere sales amount from Schedule UB, Step 4, Column D, Line 2. On Line 41 of Step 6 of Form IL-1120-ST, include only the S corporation’s Illinois sales. On Form IL-1120-ST, Step 6, Lines 44 and 45, include only the nonbusiness income of the S corporation, and the business income or loss apportionable to Illinois received by the S corporation from trusts, estates, non-unitary partnerships, partnerships included on the Schedule UB, and S corporations minus the portion of those amounts allocable to shareholders subject to replacement tax. Schedules used to compute any amounts shown must be attached to Form IL-1120-ST. If you need more information, visit our website at tax.illinois.gov and view the Illinois Income Tax Regulations referenced in these and the Schedule UB instructions. What if I participated in a reportable transaction? If you participated in a reportable transaction, including a “listed transaction,” during this tax year and were required to disclose that transaction to the IRS, you are also required to disclose that information to Illinois. You must send us two copies of the form you used to disclose the transaction to the IRS. • Mail the first copy of the federal disclosure statement to: ILLINOIS DEPARTMENT OF REVENUE PO BOX 19029 SPRINGFIELD IL 62794-9029 • Attach the second copy to your Illinois Income Tax return for the tax year that the IRS disclosure was required. Mail the second copy and your Illinois Income Tax return to the address shown on your return. Do not mail the second copy and your Illinois Income Tax return to the address listed above. Page 6 of 28 IL-1120-ST Instructions (R-01/21) Specific Instructions Step 1 — Identify your small business corporation A — All taxpayers: Type or print your legal business name. If you have a name change from last year, check the corresponding box. B — Type or print your mailing address. If your address has changed since you filed your last return or if this is your first return, check the box. If you checked the box in Line B because you have never filed an Illinois return, you must also check the “first return” box in Line C. C — If this is your first or final return, check the appropriate box and the box on Line 64 if you have a credit carry forward on your final return. D — If you checked final return on Line C, answer the questions on Line D, if applicable. E — Apportionment Formulas - If you earn income both inside and outside of Illinois, check the appropriate box(es). If you are a unitary business group, check as many boxes as applicable. If more than one box is checked, you must complete a Subgroup Schedule for each checked box that is not a sales company. If you earn income only inside Illinois, leave this line blank. For more information, see the specific instructions for “Apportionment Formulas.” F — If you are claiming a special depreciation addition or subtraction modifications on Form IL-1120-ST, check the box and attach Form IL-4562, Special Depreciation, to your tax return. G — If you are claiming other addition or subtraction modifications on Form IL-1120-ST, check the box and attach Schedule M, Other Additions and Subtractions (for businesses), to your tax return. H — If you are claiming related-party expenses modifications on your Form IL-1120-ST, check the box and attach Schedule 80/20, Related-Party Expenses, to your tax return. I — Check the box if you are claiming deductions or credits listed on Illinois Schedule 1299-A, Tax Subtractions and Credits. You must check the box on Line I and attach Illinois Schedule 1299-A and any other required support listed on Schedule 1299-A to your tax return to support any deductions or credits you are claiming or passing to your shareholders. J — If you are a unitary business group and completed Subgroup Schedule, check this box and attach Subgroup Schedule. See Subgroup Schedule and Schedule UB Instructions for more information. K — Check this box if you are a 52/53-week filer. A 52/53-week filer is a fiscal filer with a tax year that varies from 52 to 53 weeks because their tax year ends on the same day of the week instead of the last day of the month. L — Enter your entire federal employer identification number (FEIN). A partial FEIN will delay the processing of your return. M— If you are a member of a group filing as a unitary business, check the box and enter the FEIN of the member who prepared Illinois Schedule UB. Attach Schedule UB to this return. N — Enter your North American Industry Classification System (NAICS) Code. If you are unsure of your code, you can research the information at www.census.gov/eos/www/naics or www.irs.gov. O — Enter your Illinois corporate file (charter) number assigned to you by the Illinois Secretary of State. P — If you keep your accounting records in a location different from the address indicated on Line B, enter the city, the two-letter state abbreviation, and the Zip Code for the location the records are kept. IL-1120-ST Instructions (R-01/21) Q — If you are making the election to treat all of your income other than compensation as business income for this tax year, you must check the box on this line and enter zero on Step 6, Lines 36 and 44. This election must be made by the extended due date of this return. Once made, the election is irrevocable. R — If you are required to disclose reportable transactions and you have completed federal Form 8886 or federal Schedule M-3, Part II, Line 10, check the appropriate box and attach a copy of the federal form or schedule to this return. See “What if I participated in a reportable transaction?” for more information. S — Check the box if you must adjust your loss or loss carryover due to Discharge of Indebtedness. For more information, see the instructions for Line 48 and the Loss Reduction Worksheet on Page 10 of these instructions and Appendix C. T — Check this box only if you have sales into Illinois and you are not required to allocate them because you are protected by Public Law 86-272. Complete Steps 1 through 7 of your Form IL-1120-ST. You must complete an IDOR-issued or previously approved Form IL-1120-ST and corresponding schedules. Do not send a computer printout or spreadsheets with line numbers and dollar amounts attached to a blank copy of the return. Step 2 — Figure your ordinary income or loss If you are a member of a unitary group, enter the figures on each line of Step 2 that reflect your separate company income. See “What if I am a member of a unitary group?” in the General Instructions. Lines 1 through 5 — Enter the amount for each line item from the corresponding line(s) on your U.S. Form 1120S, Schedule K. Attach a copy of your federal return. See the chart below to determine the correct corresponding lines. Form IL-1120-ST Federal form 1120S, Schedule K Line 1 Line 1 Line 2 Line 2 Line 3 Line 3c Line 4 Lines 4, 5a, 6, 7, 8a Line 5 Line 9 Under federal law, Paycheck Protection Program (PPP) loan forgiveness is not considered taxable income and the business expenses covered by the PPP loan proceeds are deductible business expenses. Currently, Illinois tax law has no addition modification to change this; therefore, the same treatment flows through to the Illinois return and is included as part of federal taxable income. Line 6 — Include any items of income or loss from U.S. Form 1120S, Schedule K, that are not included on any other line of Step 2 or Step 3 of this Form IL-1120-ST. Step 3 — Figure your unmodified base income or loss If you are a member of a unitary group, enter the figures on each line of Step 3 that reflects your separate company income. See “What if I am a member of a unitary group?” in the General Instructions. Lines 8 through 10 — Enter the amount for each line item from the corresponding line on your U.S. Form 1120S, Schedule K. See the chart on this page to determine the correct corresponding lines. Page 7 of 28 Form IL-1120-ST Federal form 1120S, Schedule K Line 8 Line 12a Line 9 Line 11 Line 10 Line 12b Line 11 — Include any items of expense • you are required to state separately to your shareholders, rather than include in ordinary income, and • that would be taken into account by an individual in computing his or her taxable income, and • that are not included on any other line of Step 2 or Step 3 of this Form IL-1120-ST. Do not include any of the following items on this line: • net operating loss carryovers; • any qualified business income deduction allowed under IRC Section 199A; or • any depletion amounts allowed federally on your oil and gas properties; and • any excess business interest expense under IRC Section 163(j). Line 13 — This is your total unmodified base income or loss. If you are a member of a unitary group this amount should reflect your separate company income as shown on the corresponding column of Schedule UB, Step 2, Column A, B, or C, Line 30. Step 4 — Figure your income or loss If you are a member of a unitary group, see “What if I am a member of a unitary group?” in the General Instructions, and the instructions for Line 14, below. Line 14 — Follow the instructions on the form. If you are a member of a unitary group do not enter the amount from Form IL-1120-ST, Step 3, Line 13. Enter your combined company income as shown on Schedule UB, Step 2, Column E, Line 30. Do not enter negative amounts on Lines 15 through 21. Line 15 — Enter the total of all amounts excluded from unmodified base income that were received or accrued as federally tax-exempt interest (e.g. state, municipal and other interest) and all distributions of exempt interest received from regulated investment companies during the tax year. S corporation, trust or estate on Schedules K-1-P or K-1-T. If you receive multiple schedules because you are a recipient from multiple entities, you should enter the combined total of Step 5, Column A, Lines 32 through 37, from all Illinois Schedules K-1-P you receive and Step 5, Column A, Lines 30 through 35, from all Illinois Schedules K-1-T you receive. Attach a copy of all Illinois Schedules K-1-P and K-1-T you received to your Form IL-1120-ST. The partnership or S corporation is required to send you an Illinois Schedule K-1-P and the trust or the estate is required to send you an Illinois Schedule K-1-T, specifically identifying your share of income. Include only additions reported to you on the Schedule(s) K-1-P or K-1-T you received from a pass-through entity in which you are an investing partner or shareholder or a beneficiary. Do not attach copies of Schedules K-1-P you issued to your partners or shareholders. You should keep copies of these schedules in your records. Line 20 — Complete Illinois Schedule B. Illinois Schedule B, Section A, Line 3 represents the share of distributable income or loss that is to be added to or subtracted from base income. If the total amount on Illinois Schedule B, Section A, Line 3 is a negative amount (loss), it should be entered on Line 20 as a positive amount. See the Illinois Schedule B Instructions following these Specific Instructions for more information. Attach Illinois Schedule B to your Form IL-1120-ST. Line 21 — Enter the addition amount calculated on Illinois Schedule M, Other Additions and Subtractions (for businesses), Step 2, Line 11. Attach a copy of Illinois Schedule M to your Form IL-1120-ST. The following are examples of items that must be added to taxable income and are included on Illinois Schedule M. • Notes, bonds, debentures, or obligations issued by the Governments of Guam, American Samoa, Puerto Rico, the Northern Mariana Islands, or the Virgin Islands. • Lloyd’s plan of operations loss if reported on your behalf on Form IL-1065, Partnership Replacement Tax Return, and included in your taxable income. • Deductions you claimed this year and in your two most recent tax years for expenses connected with income from an asset or activity which were reported as business income in prior years and as nonbusiness income on this return. See Illinois Schedule NB, Nonbusiness Income, Line 11, and Illinois Schedule NB Instructions for more information. Line 16 — You must add back any amount of Illinois Replacement Step 5 — Figure your base income or loss taxes and surcharge that you deducted on your U.S. Form 1120S to arrive at your ordinary business income. You are not required to add back taxes from other states taken as a federal deduction. Do not enter negative amounts on Lines 23 through 34. Line 17 — Enter the addition amount calculated on Form IL-4562, Line 23 — Enter the total interest received or accrued from Step 2, Line 4. For more information, see Form IL-4562 and instructions. Attach Form IL-4562 to your Form IL-1120-ST. Line 18 — Enter the interest or intangible expenses paid to an 80/20 company, to the extent these expenses exceed any taxable dividends you received from the affiliated company. To compute the amount of this addition, complete Step 2 of Illinois Schedule 80/20 and enter on Line 18 the total from Illinois Schedule 80/20, Step 2, Line 9. Attach Illinois Schedule 80/20 to your Form IL-1120-ST. Some interest and intangible expenses may be exempt from this add-back provision. See Illinois Schedule 80/20 Instructions for more information including definitions of “affiliated company,” “intangible expenses,” and “intangible assets.” Line 19 — If you are a partner in a partnership, a shareholder in an S corporation, or a beneficiary of a trust or an estate, include your distributive share of additions received from the partnership, Page 8 of 28 A double deduction is prohibited by IITA, Section 203(g). You cannot deduct the same item more than once. U.S. Treasury bonds, notes, bills, federal agency obligations, and savings bonds included in ordinary business income. You may not subtract anything that is not identified in Illinois Publication 101, Income Exempt from Tax. This amount is net of any bond premium amortization deducted federally. Line 24 — Complete Illinois Schedule B. Illinois Schedule B, Section A, Line 3 represents the share of distributable income or loss that is to be added to or subtracted from base income. If the total amount on Illinois Schedule B, Section A, Line 3 is a positive amount, enter that amount on Line 24. If the total amount on Illinois Schedule B, Section A, Line 3 is negative, leave Line 24 blank and see the instructions for Line 20. For more information, see the Illinois Schedule B Instructions following these Specific Instructions. Attach Illinois Schedule B to your Form IL-1120-ST. IL-1120-ST Instructions (R-01/21) Lines 25 through 29 —You must attach Illinois Schedule 1299-A, Tax Subtractions and Credits, and any other required support listed on Schedule 1299-A to your Form IL-1120-ST if you have an amount on any of the following lines. Line 25 — Enter the River Edge Redevelopment Zone Dividend subtraction from Illinois Schedule 1299-A, Step 1, Line 3. Line 26 — Enter the River Edge Redevelopment Zone Interest subtraction from Illinois Schedule 1299-A, Step 1, Line 12. Line 27 — Enter the High Impact Business Dividend subtraction from Illinois Schedule 1299-A, Step 1, Line 6. Line 28 — For financial organizations only — Enter the High Impact Business within a Foreign Trade Zone (or sub-zone) Interest subtraction from Illinois Schedule 1299-A, Step 1, Line 15. Line 29 — Enter the amount of any Contribution subtraction from Illinois Schedule 1299-A, Step 1, Line 9. Line 30 — Enter the subtraction allowance from Form IL-4562, Step 3, Line 10. Attach Form IL-4562 to your Form IL-1120-ST. Line 31 — Enter the amount from Illinois Schedule 80/20, Step 4, Line 23. Attach Illinois Schedule 80/20 to your Form IL-1120-ST. You should use Illinois Schedule 80/20 if • you added back interest paid to an affiliated company on Step 4, Line 18. You may subtract any interest received from that company during this tax year, up to the amount of your addition for interest expense paid to that company. Also, if you added back intangible expenses from a transaction with an affiliated company on Line 18, you may subtract any income you received during the tax year from similar transactions with the affiliated company, up to the amount of your addition for intangible expense for that company. To compute the amount of this subtraction, complete Illinois Schedule 80/20. • the refund of Illinois replacement tax for a prior year, to the extent included in your federal ordinary income. • any other income included on Step 4, Line 22, exempt from taxation by Illinois by reason of its Constitution or statutes or by the Constitution, treaties, or statutes of the United States. This amount is net of any bond premium amortization deducted federally. For more information, see Illinois Publication 101. • the amount equal to the deduction used to compute the federal tax credit for restoration of amounts held under claim of right under IRC Section 1341. • the deductions for “foreign dividend gross-up (IRC Section 78),” “subpart F income,” or foreign dividends which are allowed as a subtraction modification under IITA, Sections 203(b)(2)(G) and 203(b)(2)(O). You must provide supporting attachments clearly identifying each item taken as a subtraction. • contributions you made under the Tax Increment Allocation Redevelopment Act to a job training project. For more information, see FY Bulletin 1990-40. Line 35 — This is your base income or loss. Follow the instructions on the form and check a box on Line A or B. You must check one of these boxes and follow the instructions for that line. Check the box on Line A if • all of your base income or loss is derived inside Illinois; and • you do not have any income or loss to report on Lines 36, 37, 44, or 45. If you check the box on Line A, do not complete Step 6. All of your base income or loss is allocable to Illinois. Skip Step 6, enter the amount from Step 5, Line 35 on Step 7, Line 47, and complete the remainder of the return. • you are an affiliated company, and you received interest or intangible income from someone who had to add back the interest and intangible expense on their Illinois Schedule 80/20. You may subtract your interest or intangible income from that person. Check the box on Line B if any of the following apply • your base income or loss is derived inside and outside Illinois; Line 32 — Enter your distributive share of subtractions passed through to you by a partnership, S corporation, trust, or estate on Schedules K-1-P or K-1-T. Do not include any amounts passed through that are reflected on Illinois Schedule 1299-A. Attach a copy of all Illinois Schedules K-1-P and K-1-T you received to your Form IL-1120-ST. If you check the box on Line B, you must complete all lines of Step 6. Submitting Form IL-1120-ST with an incomplete Step 6, including Lines 40, 41, and 42 may result in a delay in processing your return, further correspondence, and you may be required to submit further information to support your filing. See the Specific Instructions for Step 6 for more information. The partnership is required to send you an Illinois Schedule K-1-P and the trust or the estate is required to send you an Illinois Schedule K-1-T, specifically identifying your share of subtractions. Step 6 — Figure your income allocable to Illinois Include only subtractions reported to you on the Schedule(s) K-1-P or K-1-T you received from a pass-through entity in which you are an investing partner or shareholder or a beneficiary. Do not attach copies of Schedules K-1-P you issued to your partners or shareholders. You should keep copies of these schedules in your records. You must check the box on Line B and complete all lines of Step 6 if any portion of Line 35, base income or loss, is derived outside Illinois, or you have any income or loss to report on Lines 36, 37, 44, or 45. Line 33 — Enter the subtraction amount calculated on Illinois Schedule M, Step 3, Line 36. Attach a copy of Illinois Schedule M to your Form IL-1120-ST. You may not subtract anything that is not identified below, on Schedule M (for businesses), or in Illinois Publication 101. Subtractions allowed on Illinois Schedule M include: • notes, bonds, debentures, or obligations issued by the Governments of Guam, American Samoa, Puerto Rico, the Northern Mariana Islands, or the Virgin Islands, to the extent that you were required to add these amounts to your federal ordinary income. IL-1120-ST Instructions (R-01/21) • all of your base income or loss is derived outside Illinois; or • you have income or loss to report on Lines 36, 37, 44, or 45. If you do not complete all of Step 6, Lines 36 through 46, we may issue a notice and demand proposing 100 percent of income as being allocable to Illinois, or in the case of a loss return, a notice indicating none of your loss as being allocated to Illinois. In order to properly allocate your base income or loss you need to determine what portion of the total base income is business income or loss that is to be apportioned among all the states in which you do business, and what portion is nonbusiness income or loss that is to be allocated to a particular state. Unitary filers - You must complete both Step 4 of the Schedule UB and Step 6 of the Form IL-1120-ST. Page 9 of 28 Line by Line Instructions You must complete all lines of Step 6. Line 36 — Enter the amount of all nonbusiness income or loss included in base income, net of any related deductions and any amount distributable to shareholders subject to replacement tax, from Illinois Schedule NB, Column A. Include any nonbusiness income you received from Illinois Schedules K-1-P or K-1-T in the amounts reported on Schedule NB. Attach Illinois Schedule NB and all Illinois Schedules K-1-P or K-1-T you received to your Form IL-1120-ST. If you do not have an amount to report on this line, enter zero. If you are making the election to treat all income other than compensation as business income for this tax year, you must check the box in Step 1, Line P, and enter zero here and on Line 44. This election must be made by the extended due date of this return. Once made, the election is irrevocable. Line 37 — Enter the amount of all business income or loss included in base income received from any non-unitary partnership, partnership included on a Schedule UB, S corporation, trust, or estate of which you are a partner or a beneficiary, net of any amount distributable to shareholders subject to replacement tax. See Illinois Schedules K-1-P(2) or K-1-T(2) for more information. Attach a copy of all Illinois Schedules K-1-P and K-1-T you received to your Form IL-1120-ST. If you do not have an amount to report on this line, enter zero. The partnership is required to send you an Illinois Schedule K-1-P and Schedule K-1-P(2), and the trust or the estate is required to send you an Illinois Schedule K-1-T and Schedule K-1-T(2), specifically identifying your share of income. If you are a partner engaged in a unitary business with your partnership, you must include your distributable share of the partnership’s business income in your business income. Do not subtract this business income on Line 37. Lines 40 through 42 — You must complete Lines 40 through 42 if any of the following apply • your business income or loss is derived inside and outside Illinois; • all of your business income or loss is derived outside Illinois; or • you have income or loss to report on Lines 36, 37, 44, or 45. Follow specific instructions below for Lines 40 through 42. If you are a financial organization, transportation company, sales company, or federally regulated exchange, check the appropriate box in Step 1, Line E (financial organization, transportation company, sales company, or federally regulated exchange) and see “Apportionment Formulas” in these instructions. If you are a partner engaged in a unitary business with your partnership, you must include your distributive share of the “everywhere” and “Illinois” sales factors from the partnership in your “everywhere” and “Illinois” sales factors. For more information, see Illinois Income Tax Regulations, Section 100.3380(d). Line 40 — Enter your total sales everywhere. Line 41 — Enter your total sales inside Illinois. If you have no sales in Illinois, enter zero. Lines 40 and 41 cannot be less than zero. The amount on Line 41 cannot exceed the amount on Line 40. Line 42 — Divide Line 41 by Line 40 and enter the result, rounded to six decimal places. The result cannot be greater than one or less than zero. If you checked the box on Line 35B and do not complete Lines 40, 41, and 42 we may issue a notice and demand proposing 100 percent of your income as being allocated to Illinois, or in the case of a loss return, a notice indicating none of your loss as being allocated to Illinois. Line 44 — Enter the amount of nonbusiness income or loss allocable to Illinois from Illinois Schedule NB, Column B. Include any nonbusiness income you received from Illinois Schedules K-1-P or K-1-T in the amounts reported on Schedule NB. This amount is net of the portion of your Illinois nonbusiness income distributable to shareholders subject to replacement tax. Attach a copy of Schedule NB and all Illinois Schedules K-1-P and K-1-T you received to your Form IL-1120-ST. If you do not have an amount to report on this line, enter zero. If you checked the box in Step 1, Line Q, making the election to treat all of your income other than compensation as business income, then enter zero on Line 44. Line 45 — Enter the amount of the income or loss reported on Step 6, Line 37 that is apportionable to Illinois as reported by the nonunitary partnership, partnership included on a Schedule UB, trust, or estate on Illinois Schedules K-1-P or K-1-T, net of the portion distributable to shareholders subject to replacement tax. See Illinois Schedules K-1-P(2) or K-1-T(2) for more information. Attach a copy of all Illinois Schedules K-1-P and K-1-T you received to your Form IL-1120-ST. If you do not have an amount to report on this line, enter zero. Step 7 — Figure your net income Line 47 — Follow the instructions on the form. If this amount is a loss, you may be allowed to carry it forward to other years as an Illinois net loss deduction (NLD). Line 48 — If the amount on Line 47 is a loss, and you were required to reduce the net operating loss reported on your federal Form 1120-S because you excluded any discharge of indebtedness income from this tax year’s gross income, then you may be required to reduce the net loss reported on Line 47. Use the Loss Reduction Worksheet on Page 10 to figure your loss reduction. Attach a copy of your federal Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and a detailed statement, including the amounts and tax year, of the debt and reason for reduction to your Form IL-1120-ST. For more information, see Illinois Income Tax Regulations, Section 100.2310(c). Loss Reduction Worksheet 1 2 3 Enter the amount of the reduction to your federal net operating losses from federal Form 982. 1 _________________ Enter your income allocation ratio. See instructions. 2 _________________ Multiply the amount on Line 1 by Line 2. This is your reduction amount. Enter the result here and on Form IL-1120-ST, Line 48. 3 _________________ Line 2 — Your income allocation ratio is calculated by dividing the amount of debt cancellation income excluded from your gross income that would have been allocated or apportioned to Illinois under the IITA if it was not excluded by the total amount of debt cancellation income excluded from your gross income. If all of your debt cancellation income would have been business income, use the apportionment factor you calculated on the return for the tax year of the debt cancellation. Page 10 of 28 IL-1120-ST Instructions (R-01/21) Line 49 — If you have a discharge of indebtedness adjustment on Line 48, add lines 47 (a negative number) and 48 (a positive number), and enter the result here. This amount cannot be greater than zero. If you do not have a discharge of indebtedness adjustment, enter zero on Line 48 and the amount from Line 47 on Line 49. Line 50 — Enter your Illinois net loss deduction carryforward as determined using your own calculation method or from the Illinois Net Loss Deduction Worksheet in Appendix C. The amount of NLD you enter on this year’s original return should equal the total amount entered on Appendix C, NLD Worksheet, Line 5 or other net loss calculation method. If you are a cooperative and you separate your patronage and nonpatronage income or loss, complete Schedule INL and follow the instructions for computation of your Illinois net loss deduction. If any of the loss being claimed on Line 50, originated from a company other than the one filing this return, check the box on Line 50 and attach a detailed statement to your return with • the FEIN of the company from which you acquired the loss, • the reason (e.g., merger) you are allowed to use that company’s losses, and • the date you acquired the loss. For more information, see the Illinois Net Loss Deduction questions in the General Information section of these instructions and Appendix C. Step 8 — Figure your net replacement tax, surcharge, and pass-through withholding you owe Line 52 - Follow the instructions on the form. Line 53 — Enter your recapture of investment credits from Illinois Schedule 4255, Recapture of Investment Tax Credits, Step 4, Column C, Line 18. If you claimed an Illinois investment tax credit in a prior year on Form IL-477, Replacement Tax Investment Credits, and any of the property was disqualified within 48 months of being placed in service, you must use Illinois Schedule 4255 to compute the amount of recapture. Credit must be recaptured in the year the property became disqualified. Line 55 — Enter the amount from Form IL-477, Step 1, Line 13. Attach Form IL-477 and any other required support listed on Form IL-477 to your Form IL-1120-ST. You may claim a replacement tax investment credit of .5 percent (.005) of the basis of qualified property placed in service in Illinois during the tax year. An additional credit of up to .5 percent (.005) of the basis of qualified property is available if your Illinois base employment increased by 1 percent (.01) or more over the preceding year or if your business is new to Illinois. Excess credit may be carried forward for five years following the excess credit year. For more information, see Form IL-477 instructions. Line 57 — Compassionate Use of Medical Cannabis Program Act surcharge. Definitions Organization registrant means a corporation, partnership, trust, limited liability company (LLC), or other organization, that holds either a medical cannabis cultivation center registration issued by the Illinois Department of Agriculture or a medical cannabis dispensary registration issued by the Illinois Department of Financial and Professional Regulation. Transactions subject to the surcharge means sales and exchanges of • capital assets; • depreciable business property; • real property used in the trade or business; and • Section 197 intangibles of an organization registrant. What is the surcharge? For each taxable year beginning or ending during the Compassionate Use of Medical Cannabis Program, a surcharge is imposed on all taxpayers on income arising from the transactions subject to the surcharge of an organization registrant under the Compassionate Use of Medical Cannabis Program Act. The amount of the surcharge is equal to the amount of federal income tax liability for the taxable year attributable to the transactions subject to the surcharge. For an S corporation, this would be a tax on built-in gain realized on the transaction. Surcharge Worksheet for IL-1120-ST Instructions: Complete the appropriate column for the surcharge(s) you are claiming. A B Compassionate Use Sale of assets of Medical Cannabis by gaming
Extracted from PDF file 2020-illinois-form-il-1120-st.pdf, last modified January 2021

More about the Illinois Form IL-1120-ST Corporate Income Tax Tax Return TY 2020

We last updated the Small Business Corporation Replacement Tax Return (Includes Schedule B) in February 2021, so this is the latest version of Form IL-1120-ST, fully updated for tax year 2020. You can download or print current or past-year PDFs of Form IL-1120-ST directly from TaxFormFinder. You can print other Illinois tax forms here.

Related Illinois Corporate Income Tax Forms:

TaxFormFinder has an additional 75 Illinois income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Illinois Form IL-1120-ST.

Form Code Form Name
Form IL-1120-ST-V Payment Voucher for Small Business Corporation Replacement Tax
Form IL-1120 Corporation Income and Replacement Tax Return
Form IL-1120-V Payment Voucher for Corporation Income and Replacement Tax
Form IL-1120-X Amended Corporation Income and Replacement Tax Return
Form IL-1120-ST-X Amended Small Business Corporation Replacement Tax Return - Includes Schedule B)
Form IL-1120-ST-X-V Payment Voucher for Amended Small Business Corporation Replacement Tax
Form IL-1120-X-V Payment Voucher for Amended Corporation Income and Replacement Tax
Form IL-1120-ES Estimated Income and Replacement Tax Payments for Corporations

Download all IL tax forms View all 76 Illinois Income Tax Forms


Form Sources:

Illinois usually releases forms for the current tax year between January and April. We last updated Illinois Form IL-1120-ST from the Department of Revenue in February 2021.

Show Sources >

Form IL-1120-ST is an Illinois Corporate Income Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Illinois Form IL-1120-ST

We have a total of ten past-year versions of Form IL-1120-ST in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2020 Form IL-1120-ST

2020 IL-1120-ST Instructions

2019 Form IL-1120-ST

2019 IL-1120-ST Instructions

2018 Form IL-1120-ST

2017 Form IL-1120-ST, Small Business Corporation Replacement Tax Return

2017 Form IL-1120-ST

2017 Form IL-1120-ST, Small Business Corporation Replacement Tax Return

2016 Form IL-1120-ST

2016 Form IL-1120-ST, Small Business Corporation Replacement Tax Return

Form IL-1120-ST, Small Business Corporation Replacement Tax Return 2014 Form IL-1120-ST

2014 Form IL-1120-ST - Small Business Corporation Replacement Tax Return

2013 Form IL-1120-ST, Small Business Corporation Replacement Tax Return 2013 Form IL-1120-ST

2013 Form IL-1120-ST


TaxFormFinder Disclaimer:

While we do our best to keep our list of Illinois Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.

** This Document Provided By TaxFormFinder.org **
Source: http://www.taxformfinder.org/illinois/form-il-1120-st