ILLINOIS DEPARTMENT OF REVENUE 

                    DRAFT FORM 

Note: The draft you are looking for begins on the next page. 

Caution: DRAFT—NOT FOR FILING 

This is an early release draft of an Illinois Department of Revenue (IDOR) tax form or instructions, which 
IDOR is providing for substitute forms providers. Do not file draft forms and do not rely on draft forms 
and instructions for filing. We incorporate all significant changes to forms posted with this coversheet. 
However, unexpected issues occasionally arise, or legislation is passed—in this case, we will post a new 
draft of the form to alert users that changes were made to the previously posted draft.  

All forms and instructions have a page on our website at Tax Forms (illinois.gov) where you may see the 
final versions once they are released. Year-end income tax forms are usually released towards the end 
of January. 

If you wish, you can submit comments and questions to IDOR about draft or final forms and instructions 
at REV.VendorForms@illinois.gov. We will forward this information to the Office of Publications 
Management, where forms and publications are administered. 

IDR-1-DIS (N-08/23)          Printed by authority of State of Illinois, web only – one copy. 
 

                Illinois Department of Revenue                                  
                                                                                      *78112231V*
                2023 Schedule K-1-P(3)                                                                                                       Year ending
                Pass-through Withholding Calculation for Nonresident Members                                                                 ____      ____
                To be completed by partnerships filing Form IL-1065 or S corporations filing Form IL-1120-ST.                                Month                    Year
 Read this information first: 
 •   For tax years ending on or after December 31, 2023, and before December 31, 2024.
 •   You must complete Schedule K-1-P(3) for each nonresident partner or shareholder who has not submitted a Form IL-1000-E to you. 
 •   Do not complete Schedule K-1-P(3) for any member who is a resident or who has submitted Form IL-1000-E to you. 
 •   Do not complete Schedule K-1-P(3) if you have elected to pay Pass-through Entity Tax. 
      Keep this schedule with your income tax records. You must send us this information if we request it.
Step 1:  Identify your partnership or S corporation 
  1 ___________________________________________________                     2  ____   ____   -   ____   ____   ____   ____   ____   ____   ____ 
     Enter your name as shown on your Form IL-1065 or Form IL-1120-ST.         Enter your federal employer identification number (FEIN).
     TENTATIVE FINAL
 Step 2:  Identify your nonresident partner or shareholder 
   3  ___________________________________________________  4  _____________________________________________________
     Name                                                                      Social Security number or FEIN
   5 Check the appropriate box to identify this nonresident partner’s or shareholder’s organization type.
        individual                  corporation                trust               partnership                                 S corporation   estate

Step 3:   Figure your nonresident partner’s or shareholder’s pass-through withholding
      If this member is a resident or has submitted Form IL-1000-E to you, do not complete this schedule for this member.
   6  Add the amounts from this member’s Schedule K-1-P, Step 3, Column B, Lines 12 through 17 
     and 19 and enter the total here. This is your member’s share of nonbusiness income allocable 
     to Illinois before modifications and credits. See instructions before completing.                                          6  
   7  Add the amounts from this member’s Schedule K-1-P, Step 4, Column B, Lines 20 through 27 
     and 29 through 31 and enter the total here. This is your member’s share of business income 
     allocable to Illinois before modifications and credits. See instructions before completing.                                7 
   8  Add Line 6 and Line 7 and enter the result.                                                                               8 
   9  Add the amounts from this member’s Schedule K-1-P, Column B, Lines 32 through 37 and 
     enter the total here. This is your member’s share of additions allocable to Illinois.                                      9  
 10  Add Line 8 and Line 9 and enter the result.                                                                            10 
 11  Add the amounts from this member’s Schedule K-1-P, Column B, Lines 38a through 47 and 
     enter the total here. If this member is an individual, partnership, trust, or estate and received 
     Illinois August 1, 1969, appreciation  amounts from you, see instructions. This is your 
     member’s share of subtractions allocable to Illinois.                                                                  11 
 12  Subtract Line 11 from Line 10. If negative, enter zero. This is your member’s share of 
     Illinois income subject to pass-through withholding. See instructions.                                                 12 
      If this member is a nonresident individual or estate, enter zero on Lines 13 through 15 and go to Line 16.
 13  Replacement tax before credits. If this member is a  
     partnership, S corporation, or nonresident trust,  multiply Line 12 by 1.5% (.015) and enter the result;
     corporation, multiply Line 12 by 2.5% (.025) and enter the result.                                                        13 
 14  Enter the amount of Illinois replacement tax investment credits passed to this member and 
     available for use this year.                                                                                           14 
 15  Subtract Line 14 from Line 13. If negative, enter zero. This is your member’s share of 
     replacement tax after credits.                                                                                         15 
      If this member is a nonresident partnership or S corporation, enter zero on Lines 16 through 18 and go to Line 19. 
 16  Income tax before credits. See instructions.                                                                           16 
 17  Enter the amount of Illinois income tax credits passed to this member and available for use 
     this year. See instructions.                                                                                           17 
 18  Subtract Line 17 from Line 16. If negative, enter zero. 
     This is your member’s share of income tax after credits.                                                               18 
 19  Add Lines 15 and 18 and enter the result. This is your member’s total pass-through withholding.
     Report this amount on this member’s Schedule K-1-P, Step 7, Line 55. You must also 
     report this amount on your Form IL-1065 or Form IL-1120-ST, Schedule B, Section B, 
     Line J, on the line which reports this member’s amounts.                                                               19                                             
     Keep a copy of this schedule for each member with your income tax records. Do not send Schedule K-1-P(3) to your members  
     or  submit it to the Illinois Department of Revenue unless we specifically request it from you.
                                    This form is authorized as outlined by the Illinois Income Tax Act. Disclosure of this  Printed by the authority of the state 
      Schedule K-1-P(3) (R-12/23)   information is REQUIRED. Failure to provide this information could result in a penalty. of Illinois - electronic only - one copy.