Illinois Computation of Penalties for Businesses

Computation of Penalties for Businesses
2023 Form IL-2220, Computation of Penalties for Businesses
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Illinois Department of Revenue			

	
	

	

	

2023 IL-2220	

Computation of Penalties for Businesses

*34212231W*

Year ending
							
_____ _____

For tax years ending on or after December 31, 2023.
Attach to your Form IL-1120, IL-1120-ST, IL-1065, IL-1041, or IL-990-T.

	Month	

Year

IL Attachment No. 19

Read this information first - We encourage you to let us figure your penalties and send you a bill instead of completing this form

yourself. You must complete this form if you are using the annualized income installment method for late-payment penalty for underpayment
of estimated tax in Step 6. You do not owe the late-payment penalty for underpayment of estimated tax if you made timely estimated
installment payments equaling at least 90 percent of this year’s tax liability or 100 percent of the prior year’s tax liability (provided you reported
a liability in the prior year and it was not a short taxable year). See the Specific Instructions for more information. The late-payment penalty for
underpayment of estimated tax is based on the tax shown due on your original return. Do not use the tax shown on an amended return filed
after the extended due date of the return to compute your required installments in Step 2.

Step 1:	Provide the following information
	 1	 This form is for the 2023 calendar year or fiscal year beginning __ __/__ __ 2023, and ending __ __/__ __/__ __ __ __.
	Month 	Day

Month Day

Year

	 2	 Enter your FEIN as it appears on your annual return.	

	2	

	 3	 Enter your name as it appears on your annual return. 	

	3

	 4 	If your prior year return was filed under a different FEIN
		 than the one shown on Line 2, enter that number here.	
	

	4	

	

Step 2: Figure your required installments - Form IL-1120 filers and Forms IL-1120-ST and IL-1065
filers
who elect to pay pass-through entity (PTE) tax.				
	
													
A				
B	
		
											
This year				 Prior year
	 5		 See instructions.
			 If prior year’s tax was zero or you filed a short year return, enter “N/A” in Column B.
			 You may be required to make installments even if you enter “N/A” in Column B. 				5 	

00 				

	6		 Enter the total amount of pass-through withholding, PTE tax credit, Illinois gambling
			 withholding, and Illinois sports wagering withholding from Form IL-1120,
			 Form IL-1120-ST, or Form IL-1065. See instructions.							 6		

00

	7		 Subtract Line 6 from Line 5, Column A. 									 7		
	8		 Multiply Line 5, Column A, by 90% (.9). 									 8		

00	
00	

	9	
	 For Form IL-1120 filers - If Line 7, is $400 or less, enter zero and go to Step 3.
			 For Form IL-1120-ST and Form IL-1065 filers who elected to pay pass-through entity tax 			 if Line 7 is $500 or less, enter zero and go to Step 3.
			 Otherwise, enter the lesser of Line 8, or Line 5, Column B. (If Line 7 is more than $400
			 for Form IL-1120 or more than $500 for Form IL-1120-ST and Form IL-1065 filers
			 and you entered “N/A” in Line 5, Column B, enter the amount from Line 8.) 	
			9	

00

00

	10		 Divide the amount on Line 9 by four. This is the amount of each required installment. 										
00
		 (If you used the annualized income installment method, see instructions for Line 12.) 		 10	
	11		 Enter in Quarters 1 through 4, 						 Quarter 1
	
Quarter 2	
	 Quarter 3			 Quarter 4
			 the installment date that corresponds 																			
			 with the 15th day of the 4th, 6th, 9th,
			 and 12th month of your tax year. 	 11 	__ __/__ __/__ __ __ __	 __ __/__ __/__ __ __ __	 _	 _ __/__ __/__ __ __ __		__ __/__ __/__ __ __ __
	12		 Enter the required installment.
			 See instructions.	

12	

00	

00				

00			

00

Enter the amount of any pass-through,
gambling, and sports wagering 		
winning withholding, and PTE tax
credit received. See instructions.	 13	

00	

00			

00			

00

	14		 Subtract Line 13 from Line 12. If the
			 amount is negative, use brackets.	 14	

00	

00			

00			

00

00			

00			

00

00			

00			

00

	13		
			
			
			

	15		
			
			
			

If the amount on Line 16 of the
previous quarter is negative,
enter that amount as a positive
here. Otherwise, enter zero.		

	

15	Skip this line for Quarter 	1.

	16		 Subtract Line 15 from Line 14. If the
			 amount is negative, use brackets.	 16	
IL-2220 (R-12/23)

00	

This form is authorized as outlined by the Illinois Income Tax Act. Disclosure of this
information is REQUIRED. Failure to provide information could result in a penalty.

Page 1 of 5

*34212232W*

Step 3: Figure your unpaid tax - all taxpayers

	17	 Enter your total net income and replacement tax, surcharge, and pass-through withholding
		 you owed and reported on behalf of your members, and pass-through entity tax you owed.
		 See instructions.			 	
	18	 a	 Enter the total amount of all payments made on or before the original due date of your
			 tax return. Include credit(s) carried forward from a prior year (see instructions); total
			 estimated payments, prepayments, extension payments or annual payments made
			 with your tax return; pass-through withholding reported on your behalf; pass-through
			 entity tax credit, and withholding shown on your W-2G or 1099 forms.		 18a	

00

		b Forms IL-1120, IL-1120-ST, and IL-1065 filers:
			 Enter the total of all Columns, Line 12. All others, enter zero.		

00

		 Enter the greater of Line 18a or Line 18b here.	

00

17	

18b	

			

	19	 Subtract Line 18 from Line 17. If this amount is
		—positive, enter that amount here. Continue to Step 4 and enter this
			 amount in Penalty Worksheet 2, Line 23, Column C.	
		—zero or negative, enter that amount here and, if negative, use brackets. 		

18	

00

19	

00

Step 4:	 Figure your late-payment penalty
Use Penalty Worksheet 1 to figure your late-payment penalty for underpayment of estimated tax.
Use Penalty Worksheet 2 to figure your late-payment penalty for unpaid tax.

			 You must follow the instructions in order to properly complete the penalty worksheets.

20	 Enter the amount and the date of each payment you made. Include any credit(s) carried forward from a prior year. See instructions.
					
		

	
	

	
	

	

Amount	

a	
b	
c	
d	

Date paid			

	
	
	
	

_ _/_ _/_ _ _ _	
_ _/_ _/_ _ _ _	
_ _/_ _/_ _ _ _	
_ _/_ _/_ _ _ _	

	

Penalty rates

		
		

IL-2220 (R-12/23)

Amount	

e	
f	
g	
h	

Date paid			

	 _ _/_ _/_ _ _ _	
	 _ _/_ _/_ _ _ _	
	 _ _/_ _/_ _ _ _	
	 _ _/_ _/_ _ _ _	

i	
j	
k	
l	

Amount	

Date paid

_ _/_ _/_ _ _ _
	 _ _/_ _/_ _ _ _
	 _ _/_ _/_ _ _ _
	 _ _/_ _/_ _ _ _
	

Number of days late 	 Penalty rate
1 - 30............................ .02	
31 or more....................... .10	

Page 2 of 5

*34212233W*
Penalty Worksheet 1 — Late-payment penalty for underpayment of estimated tax - (	Form IL-1120 filers 	
					and Forms IL-1120-ST and IL-1065 filers who elect to pay pass-through entity (PTE) tax)
If you paid the required amount from Line 16 by the payment due date on Line 11 for each quarter, do not complete this worksheet.
21	 Enter the unpaid amounts from Line 16, Quarters 1 through 4, on the first line of the appropriate quarters in Column C below.
	

A	

		
	 Period	

B	

Due	
date 	

C	

D	

Unpaid 	
amount	

E 	

Payment 	
applied	

F	

Balance due 	
(Col. C - Col. D) 	

Payment 	
date	

G	

H		

No. of	 Penalty rate	
days late	 (see above)		

I	 	
Penalty

_ _/_ _/_ _ _ _	
		
	
			

	
	
	

	
	
	

	 _ _/_ _/_ _ _ _	
	 _ _/_ _/_ _ _ _	
	 _ _/_ _/_ _ _ _	

	
	
	

		
		
		

	
	
	

_ _/_ _/_ _ _ _	

	
	
	

	
	
	

	 _ _/_ _/_ _ _ _	
	 _ _/_ _/_ _ _ _	
	 _ _/_ _/_ _ _ _	

	
	
	

		
		
		

	
	

	
	
	

	
	
	

	 _ _/_ _/_ _ _ _	
	 _ _/_ _/_ _ _ _	
	 _ _/_ _/_ _ _ _	

	
	
	

		
		
		

	
	
	

	
	
	

	
	
	

	 _ _/_ _/_ _ _ _	
	 _ _/_ _/_ _ _ _	
	 _ _/_ _/_ _ _ _	

	
	
	

		
		
		

	
	
	

	 Qtr. 1	

	 Qtr. 2	

		
		
	 Qtr. 3	

		
		
	 Qtr. 4	

		
		

	
	

_ _/_ _/_ _ _ _	
	
	

_ _/_ _/_ _ _ _	
	
	

22	 	Add Column I, Quarters 1 through 4. This is your late-payment penalty for underpayment of estimated tax.		 	

	

	

	

	

		

		Enter the total amount here and on Form IL-1120, Step 8, Line 59; Form IL-1120-ST, Step 8, Line 63;
		or Form IL-1065, Step 8, Line 63.
		
		
22
	
You may apply any remaining overpayment from the 4th quarter in Column E above to any underpayment when figuring 			
	
Penalty Worksheet 2, only if the payment date shown in the 4th quarter of Column F is after the original due date of the return.

Penalty Worksheet 2 — Late-payment penalty for unpaid tax
	23	 Enter any positive amount from Line 19 on the first line of Column C below.
	

A	

B	

		
		

Due	
date 	

	 Return	 _ _/_ _/_ _ _ _	

		
		

	
	

C	

D	

Unpaid 	
amount	

E 	

Payment 	
applied	

	
	
	
	

Balance due 	
(Col. C - Col. D) 	

	
	
	
	

	
	
	
	

F	

Payment 	
date	

G	

_ _/_ _/_ _ _ _	
_ _/_ _/_ _ _ _	
_ _/_ _/_ _ _ _	
_ _/_ _/_ _ _ _	

			
	
	
24		 Add Column I. This is your late-payment penalty for unpaid tax. 			

H	

No. of	 Penalty rate	
days late	 (see above)	

	
	
	
	

I	 	
Penalty

	
	
	
	

	
	
	
	

	

		Enter the total amount here and on Step 5, Line 28.				

	24	

	Step 5: Figure your late-filing penalty, total penalties, and the amount you owe
	 omplete Lines 25 through 27 to figure your late-filing penalty only if
C
				•	 you are filing your return after the extended due date; and

				 •	 your tax was not paid by your original due date.	
00
25	 Enter the amount of your tax due from your return. See instructions. 			
25	
00
	26	 Multiply the amount on Line 25 by 2% (.02).	
			
26	
00
	27	 Enter the lesser of Line 26 or $250. This is your late-filing penalty. 		
	
27	
00
	28	 Enter your late-payment penalty for unpaid tax from Line 24.			 	28	
	29	 If you have an overpayment on your tax return*, enter that amount as a <negative number>.
00
		 If you have an amount due on your tax return*, enter that amount here.		 	
29	
		*See instructions for the correct line references for all tax returns.
	30	 Add Lines 27, 28, and 29. If the result is positive, this is the total amount you owe. If the result is negative, 					
00
		 this is the amount you are overpaid.	
			
30	
	
	This amount may not match your overpayment or tax due on your original tax form. Pay the amount on
			 Line 30 if you wish to pay your penalties at this time. Otherwise, we will send you a bill.
IL-2220 (R-12/23)

Page 3 of 5

*34212234W*
Step 6: 	Complete the annualization worksheet for Step 2, Line 12
Complete this worksheet if your income was not received evenly throughout the year and you choose to annualize your income. Beginning
with Column A, complete Lines 31 through 51 of each column. If you fail to complete all lines of Step 6, Lines 31 through 51, Columns A
through D, we may disregard your election to annualize your income and calculate your late-payment penalty for underpayment of estimated tax
based on four equal installments.
										
A
			
B	
	 C
				
D
					 								 First 3 months	
	 First 6 months	
	 First 9 months	
	31		 Enter your Illinois net income for each		 For Column A
00		
00		
00	
		period. If negative, enter zero.	
31	________________	
only: Go directly to
		
4	
2	1.33333
	32	 Annualization factors 	
32	________________	
		
		
Line 34
00		
00		
00
	33	 Multiply Line 31 by Line 32. 	
33	________________	
						 First 3 months		 First 5 months		 	 First 8 months			 First 11 months
	34	 Enter your Illinois net income for each
00
00	
00				
00
		period. If negative, enter zero.	
34	 	
	

	35	 Annualization factors 	
	36	 Multiply Line 34 by Line 35. 	
	37	 In Column A, enter the amount
		from Line 36, Column A.

	
35	
36	

		 In Columns B, C, and D, enter
	
		 the lesser of Line 33 or 36
		 for each period.	
37	
38		 Net replacement tax for the period.
		 See instructions.	
38	
39		 Net income tax or PTE tax for
	
		 the period. See instructions. 	
39	
40		 Cannabis surcharge for the period.
		 See instructions.	
40	
41		 Sale of Assets by Gaming Licensee 	
		 surcharge for the period.
		 See instructions.	
41		

42		 Add Lines 38, 39, 40, and 41.	
42	
	43	 Applicable percentage	
43	
44		 Multiply Line 42 by Line 43. This
		is your annualized installment.	 44	
	45	 Add the amounts on Line 51 of
		each of the preceding columns
		and enter the total here.	
	46	 Subtract Line 45 from Line 44.
		If less than zero, enter zero.	

	47	 See instructions.	
	48	 Enter the amount from Line 50
		of the preceding column.	
	49	 Add Lines 47 and 48.	

45	
46	
47	
48	
49	

4	

2.4	

	

		

1.5	

		

1.09091

00	

00		

00		

00

00	

00		

00		

00

00	

00		

00		

00

00	

00		

00		

00

00	

00		

00		

00

00	

00		

00		

00

00	

00		

00		

00

45% (.45) 		

6
	 7.5% (.675)		

00	

00		

00		

00

	

00		

00		

00

00	

00		

00		

00

00	

00		

00		

00

	

00		

00		

00

00	

00		

00		

00

	22.5% (.225) 	

Do not write on this line.

Do not write on this line.

	

	90% (.9)

	50	 If Line 49 is greater than Line 46,
		subtract Line 46 from Line 49.
	 Do not write on this line.
00	
00		
00		
		Otherwise, enter zero.	
50			
	
				
	51	 Enter the lesser of Line 46 or 49
		here and on Step 2, Line 12.
00	
00		
00		
00
		This is your required installment.	 51	
					Go to Column B, Line 31	

IL-2220 (R-12/23)

Go to Column C, Line 31		

Go to Column D, Line 31

Page 4 of 5

*34212235W*
PTE Tax Worksheet - Complete this worksheet for amounts to be entered on Step 6, Line 39
	

(Form IL-1120-ST and Form IL-1065 filers)

Complete this worksheet if you elected to file and pay pass-through entity (PTE) tax and choose to annualize your income. The amounts from
Columns A through D, Line 59 will be entered in the applicable columns in Step 6, Line 39.
				
A
		
B	
	C
		
D
						First 3 months 		 First 6 months 		 First 9 months	
52	 Enter your Illinois net pass-through entity
	
income that would have been shown
	
on Form IL-1120-ST, Step 8, Line 60
	
or Form IL-1065, Step 8, Line 60
	
for each period.
For Column A
00
00
00
	
If negative, enter zero.	52	_______________	
only:
Go
directly
4	
2	 	
1.33333
53	 Annualization factors 	
53 	 _______________	
to Line 55
00
00
00
54	 Multiply Line 52 by Line 53.
	 54 	 ________________
	
	
	

			First 3 months		
First 5 months 		 First 8 months		
First 11 months

55	 Enter your Illinois net pass-through entity
	
	
	
	
	

income that would have been shown
on Form IL-1120-ST, Step 8, Line 60
or Form IL-1065, Step 8, Line 60
for each period.
If negative, enter zero. 	
55	
56	 Annualization factors 	
56	
57	 Multiply Line 55 by Line 56. 	
57	
58	 In Column A, enter the amount
	 from Line 57, Column A.
	
In Columns B, C, and D, enter
	
the lesser of Line 54 or 57
	
for each period.	
58	

00

4

	

00	

	

2.4 	

00

	

1.5 	

00

	1.09091

00	

00	

00	

00

00	

00	

00	

00

00	

00	

00	

00

59 Multiply the amount on Line 58
	
	
	

by 4.95 percent (0.0495) and
enter this amount on
Step 6, Line 39.	

IL-2220 (R-12/23)

59	

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