Illinois Department of Revenue                    

           2023 Subgroup Schedule Instructions (UB)           
General Information
Complete a separate Subgroup Schedule for each Insurance Company Subgroup, Financial Organization Subgroup, Regulated 
Exchange Subgroup, and Transportation Company Subgroup. Use the Subgroup Schedule to determine the amounts to 
enter on Schedule UB, Combined Apportionment for Unitary Business Group, Step 4, Lines 2 and 3 for each member of that 
subgroup. Attach all Subgroup Schedules to the Schedule UB. 
Do not complete a separate Subgroup Schedule for Sales Subgroups. Also, do not complete a separate Form IL-1120, 
Corporation Income and Replacement Tax Return, for each subgroup when applying the subgroup method. List all members 
from each subgroup on Schedule UB, Steps 1, 2, 3 and 4. Failure to follow these instructions may cause processing delays or 
result in additional correspondence from the department.
Only groups that include members who use different apportionment formulas are required to apply the subgroup method.
Note: Entities subject to Illinois Income Tax Act (IITA) Section 304(a) calculate total everywhere sales and total Illinois sales as 
if the subgroup method does not apply. See Schedule UB instructions, Step 4, Lines 2 and 3 for additional information. 
When is a unitary partnership included on a Subgroup Schedule? 
If the unitary partnership is 
•     a financial organization (IITA Section 304(c)), 
•     a federally regulated exchange (IITA Section 304(c-1)), or 
•     a transportation company (IITA Section 304(d), 
and does not use the single sales formula to apportion its business income per IITA Section 304(a), you must ask:
“Is the unitary partnership required to be included on Schedule UB because the members of the unitary group own or control 
more than 90 percent of all the interest in the partnership?”
      • YES - Then the unitary partnership must be included on the Subgroup Schedule as its own member along with the 
        other members of the subgroup. 
      • NO - Then the distributive shares from the unitary partnership must be incorporated on the Subgroup Schedule as 
        follows:
        •    If the unitary partnership and the owning partner use the SAME apportionment formula, the partner must then 
             add the distributive share of the partnership’s sales everywhere and Illinois sales to its own sales on the Subgroup 
             Schedule.
        •    If the unitary partnership and the owning partner use a DIFFERENT apportionment formula, the partnership must 
             then calculate its sales everywhere and Illinois sales on the applicable subgroup schedule using only the owning 
             partner’s distributive shares. Then the partner will add the partnership’s calculated figures to its own sales when 
             entering them on the Schedule UB. 
When is a unitary partnership not included on a Subgroup Schedule? 
If a unitary partnership apportions its business income using the single sales formula under IITA Section 304(a), do not include 
the owning partner’s distributive share of the partnership’s apportionment factors on the subgroup schedule as no calculation is 
needed for single sales entities. The partner will add the partnership’s sales everywhere and Illinois sales to its own sales when 
entering them on the Schedule UB. See “Partnership requirements” and Step 4, Lines 2 and 3, of the Schedule UB Instructions 
for information on how to report an IITA Section 304(a) partnership on Schedule UB. 
For more information about unitary partnerships, see 86 Ill. Adm. Code Section 100.3380.
Should I round?
You must round the dollar amounts on the Subgroup Schedule 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 need additional assistance or forms?
•     For assistance, forms, or schedules, visit our website at tax.illinois.gov or scan the QR code  
      provided.
•     Write us at: 
       ILLINOIS DEPARTMENT OF REVENUE
       PO BOX 19001
       SPRINGFIELD IL  62794-9001
•     Call 1 800 732-8866  or217 782-3336    (TTY at1 800 544-5304).
•     Visit a taxpayer assistance office - 8:00 a.m. to 5:00 p.m. (Springfield) and 8:30 a.m. to 5:00 p.m.  
      (all other offices), Monday - Friday.
Schedule SUB Instructions (UB) (R-12/23)   Printed by the authority of the state of Illinois - electronic only - one copy.  Page 1 of 3

Specific Instructions
Step 1- Check only one box to indicate the type of subgroup to which the members listed in Step 2 of the schedule belong. If 
you use additional schedules for the same type of subgroup, check the applicable box on each successive schedule.
Line 1 – For each member, enter the total sales everywhere, according to 86 Ill. Adm. Code Sections 100.3370 and 100.3380, 
in Columns A, B, and C. If you have more than 3 members in your subgroup, use additional schedules and add Columns A 
through C of all your schedules and enter the result in Column D. Otherwise, total Columns A, B, and C and enter the result in 
Column D. 
On Schedule UB, Step 4, Line 2, enter each member’s Line 1 amount, plus the member’s distributive share of the everywhere 
sales of any IITA Section 304(a) unitary partnership and any unitary partnership included on a different Subgroup Schedule.
The term ‘sales’ is defined under IITA Section 1501(a)(21) to mean all gross receipts included in your business income and not 
otherwise excluded under the IITA or 86 Ill. Adm. Code Sections 100.3370 and 100.3380. This is the amount of gross receipts 
of the member that would be included in the computation of the group’s combined business income reported on Schedule UB, 
Step 4, Line 1, Column D, if that member was required to determine the denominator of its sales factor under 86 Ill. Adm. Code 
Sections 100.3370 and 100.3380. Do not include receipts that are eliminated as a result of an intercompany transaction with 
any member of your unitary business group. For example, in the case of an insurance subgroup member, Line 1 includes all 
gross receipts of the insurance company included in its apportionable business income (and not merely its direct premiums). 
Similarly, in the case of a transportation company, Line 1 includes all gross receipts of the transportation company included in 
its apportionable business income (and not merely its business income from furnishing transportation services). 
Note: Line 1, Columns A through D, cannot be less than zero. 
Line 2 – For each member, enter the amount the member would have computed as the numerator of its apportionment factor 
applying the member’s applicable apportionment factor under IITA Section 304. Do not include receipts that are eliminated as a 
result of an intercompany transaction with any member of your unitary business group. 
If you are a transportation subgroup and one or more of your subgroup members provides transportation services by 
airline, enter the amount determined by multiplying the member’s gross receipts from transportation by air by the member’s 
apportionment factor determined by the revenue miles formula for transportation by air. If one or more of your transportation 
subgroup members provides transportation services by airlines and by other means, use the weighted average method set forth 
in 86 Ill. Adm. Code Section 100.3450(d) in order to determine the amount to enter on Line 2 for such member.
Note: Line 2, Columns A through C, cannot be less than zero.
Line 3 – For each member, enter the amount the member would have computed as the denominator of its apportionment 
factor applying the member’s applicable apportionment factor under IITA Section 304. For example, in the case of an insurance 
subgroup member, Line 3 would include only receipts from direct premiums written for insurance and premiums written for 
reinsurance if the member’s principal source of premiums written consists of premiums written for reinsurance. Similarly, in 
the case of a transportation company, Line 3 would include receipts directly associated with its transportation services. Do not 
include receipts that are eliminated as a result of an intercompany transaction with any member of your unitary business group. 
Enter the total of Columns A through C in Column D. If you have more than 3 members in your subgroup, use additional 
schedules and add Columns A through C of all your schedules and enter the result in Column D. If you are a transportation 
subgroup and one or more of your subgroup members provides transportation services by airline, enter on Line 3 the member’s 
total gross receipts from providing transportation services by airline.
Note: Line 3, Columns A through D, cannot be less than zero.
Line 4 – Divide Line 2 of each Column by Line 3, Column D (round to the sixth decimal place).
Line 5 – Multiply Line 4 of each Column by Line 1, Column D. This is the member’s Illinois sales under the subgroup method. 
On Schedule UB, Step 4, Line 3, enter this amount, plus the member’s distributive share of the Illinois sales of any 
IITA Section 304(a) unitary partnership and any unitary partnership included on a different Subgroup Schedule.
For more information, see the example on Page 3 and 86 Ill. Adm. Code Section 100.3600.

Schedule SUB Instructions (UB) (R-12/23)                                                                              Page 2 of 3

EXAMPLE
Note that the everywhere sales of the insurance and transportation companies on Line 1 exceed the denominators of those companies’ apportionment formulas on Line 3. The 
denominators of insurance companies under IITA Section 304(b) include only premiums. The denominators of transportation companies under IITA Section 304(d) include only income 
from transportation services. The everywhere sales of those companies under IITA Section 304(a)(3)(A) include all gross business receipts of those companies, except amounts 
specifically excluded from the sales factor under 86 Ill. Adm. Code Sections 100.3370 and 100.3380. In the case of an insurance company, direct premiums, premiums for reinsurance, 
interest, gross rental income and net gains or losses on sales of intangibles in the regular course of business would all be included in the sales factor denominator of an insurance 
company under IITA Section 304(a)(3)(A). These items must be included in everywhere sales on Line 1 of the Subgroup Schedule. Line 3 of the Subgroup Schedule includes only the 
insurance company’s direct premiums everywhere as determined under IITA Section 304(b).  

                                         Insurance Companies                         Sales Companies          Transportation Companies
                                            Subgroup Schedule                No Subgroup Schedule             Subgroup Schedule
 
                                         Ins A    Ins B   Subgroup                                            Trans A   Trans B  Subgroup  
                                                                Total                                                                     Total

1. Sales Everywhere                      $250.00  $450.00       $700.00                                         $300.00      $700.00    $1,000.00  

2. Section 304 Numerator                     $3.00      $6.00                                                       $5.00        $8.00     

3. Section 304 Denominator                 $50.00  $100.00      $150.00                                           $25.00     $175.00      $200.00   

4. Subgroup Apportionment                      0.02  0.04                                                           0.025  0.04                 
For each subgroup:
Divide Line 2 (Numerator) 
of each Column by Line 3, 
Column D (Subgroup Total)
 
5. Illinois Sales                          $14.00    $28.00                                                        $25.00       $40.00     
For each subgroup:
Multiply Line 4 
(Apportionment) by Line 1, 
Column D (Subgroup Total 
Sales Everywhere)

                                                                             Schedule UB, Step 4

                                         Ins A   Ins B                       Comp A       Comp B              Trans A   Trans B                     Total

2. Net Sales Everywhere                  $250.00  $450.00                    $100.00       $200.00              $300.00    $700.00                  $2000.00

3. Net Sales in Illinois                  $14.00     $28.00                   $10.00        $25.00                $25.00      $40.00                 $142.00

4. Apportionment Factor                     0.007         0.014                 0.005      0.0125                 0.0125             0.02                                   0.071
(for Unitary Group)
Divide Line 3 (Illinois Sales) of
each Column by Line 2, Column D,
(Grand Total Sales Everywhere) 

Schedule SUB Instructions (UB) (R-12/23)                                                                                                                                      Page 3 of 3