Illinois Department of Revenue                              FY 2018-29
                                                                                                            June 2018

                                              nformational
                                              i
                                                Bulletin
                             
Constance Beard, Director
                                               Illinois Income Tax Guidance - 
                                               Changes for Business Income Tax  

                                               To:  All tax practitioners and business income taxpayers

                                               For tax years ending on or after December 31, 2018, the following 
                                               payment vouchers will be discontinued:
                                                • Form IL-505-B, Automatic Extension Payment; 
                                                • Form IL-1120-ES, Estimated Income and Replacement Tax 
This bulletin is written to inform you 
                                                  Payment Coupons for Corporations; and 
of recent changes; it does not replace 
statutes, rules and regulations, or             • Forms IL-516-I and IL-516-B, Pass-through Prepayment Vouchers 
court decisions.                                  and Instructions. 

                                               Taxpayers making an extension payment, an estimated payment, or a              
                                               voluntary prepayment of their tax liabilities will use the voucher associated 
                                               with the return type they are filing. See the list below to determine the 
                                               correct voucher type to use: 
For information or forms 
Visit our website at:                          Form        Return Type                                      Voucher
tax.illinois.gov                               IL-1120     Corporation Income and Replacement Tax           IL-1120-V
                                               IL-1120-ST Small Business Corporation 
File your return online at:                                Replacement Tax                                  IL-1120-ST-V
mytax.illinois.gov
                                               IL-1065     Partnership Replacement Tax                      IL-1065-V
Call us at:                                    IL-1041     Fiduciary Income and Replacement Tax             IL-1041-V
1 800 732-8866 or                              IL-990-T    Exempt Organization Income and 
217 782-3336                                               Replacement Tax                                  IL-990-T-V

Call our TDD                                   Using one voucher for payments associated with the return type will
(telecommunications device              
for the deaf) at:                               • eliminate confusion about which lines to list credits and payments, 
1 800 544-5304                                  • reduce the number of lines on each return, and 
                                                • allow the Department to process payments in a more efficient 
                                                  manner. 

                                               Failure to use the appropriate voucher may result in a delay in the 
                                               processing of your payment or return, further correspondence, a delay 
                                               in the generation of any overpayment, or assessment of penalty and 
                                               interest.

                                               What will the change look like on the business income tax return?
                                               Effective for tax years ending on or after December 31, 2018, taxpayers 
                                               will claim credits carried forward, extension payments, estimated 
                                               payments, voluntary prepayment of their tax liabilities, and any other 
                                               payments made before the original due date of their return on one line 
                                               instead of separate lines on their business income tax return. These 
Printed by authority of the State of Illinois  payments will be reported as “Credits and payments made before the 
FY 2018-29 (N-06/18) Web only - 1              original tax due date”. See examples on the next page. 

 Informational Bulletin - Illinois Income Tax Guidance-                                                       FY 2018-29
                         Changes for Business Income Tax 
What other changes can I expect?
Before the end of the year, the Department’s website (tax.illinois.gov) and MyTax Illinois (mytax.illinois.gov) will be 
updated to remove Forms IL-505-B, IL-1120-ES, IL-516-I, and IL-516-B and to direct taxpayers to use the appropriate 
voucher associated with their business income tax return type. 
Forms and instructions reflecting these changes will be published with other year-end changes in January 2019. 

Example for IL-1120
Current - 2017 IL-1120 reports credits carried forward, estimated payments, and extension payments on multiple lines:
  60  Payments. See instructions.
     a   Credit from prior year overpayments.                            60a                  .00
     b   Total estimated payments.                                       60b                  .00
     c  Form IL-505-B (extension) payment.                               60c                  .00}
     d  Pass-through withholding payments reported to you on Schedule(s)
        K-1-P or K-1-T. Attach Schedule(s) K-1-P or K-1-T.              60d                  .00 
     e  Illinois gambling withholding. Attach Form(s) W-2G.              60e                  .00

New - 2018 IL-1120 will report all of these credits and payments on one line:
  60  Payments. See instructions.                                        
     a  Credits and payments made before the original tax due date.     60a                  .00 
     b  Pass-through withholding payments reported to you on Schedule(s)
        K-1-P or K-1-T. Attach Schedule(s) K-1-P or K-1-T.              60b                  .00 
     c  IllinoisEXAMPLEgambling withholding. Attach Form(s) W-2G.       60c                  .00

Example for IL-1065
Current - 2017 IL-1065 reports credits carried forward, extension payments, and IL-516 prepayments on multiple lines:
  61   Payments. See instructions.
     a  Credit from prior year overpayments.                            61a                  .00 
     b   Form IL-505-B (extension) payment.                             61b                  .00}
     c  Pass-through withholding payments reported to you on Schedule(s)
        K-1-P or K-1-T. Attach Schedule(s) K-1-P or K-1-T.              61c                  .00 
     d  Illinois gambling withholding. Attach Form(s) W-2G.             61d                  .00
     e   Form IL-516-I prepayments.                                     61e                  .00
     f   Form IL-516-B prepayments.                                     61f                   .00}

New - 2018 IL-1065 will report all of these credits and payments on one line:
  61  Payments. See instructions.                                        
     a  Credits and payments made before the original tax due date.     61a                  .00
     b  Pass-through withholding payments reported to you on Schedule(s)
        K-1-PEXAMPLEor K-1-T.Attach Schedule(s) K-1-P or K-1-T.         61b                  .00 
     c  Illinois gambling withholding. Attach Form(s) W-2G.              61c                  .00

 2