2008 Income Tax Letter Rulings

General Information Letters

Ruling	Date	Subject	Synopsis
IT 08-0028-GIL	09/19/2008	Apportionment – Sales Factor	General Information Letter: In the provision in IITA Section 304(a)(3)(C-5)(iii)(a) regarding a dealer in an item of tangible personal property , the phrase “within the meaning of Section 475” clarifies the meaning of “dealer.”
IT 08-0027-GIL	09/17/2008	Credits – Foreign Tax	General Information Letter: Correct computation of income double taxed by Illinois and Minnesota explained.
IT 08-0026-GIL	08/01/2008	Residency/nonresidency	General Information Letter: Illinois residents working abroad remain taxable on income from all geographic sources.
IT 08-0025-GIL	08/01/2008	Apportionment – Sales Factor	General Information Letter: Sourcing of membership fees under new sales factor statutes discussed.
IT 08-0024-GIL	07/22/2008	Base Income	General Information Letter: Tax treatment of rental of condominium in determining federal adjusted gross income of the owner is generally followed in determining base income for Illinois income tax purposes.
IT 08-0023-GIL	07/21/2008	Apportionment – Sales Factor	General Information Letter: Throwback rule applied to various situations.
IT 08-0022-GIL	07/16/2008	Apportionment – Sales Factor	General Information Letter: Application of sales factor statute effective in 2008 to service provider explained.
IT 08-0021-GIL	07/08/2008	Deficiencies	General Information Letter: Reduction in tax liability payable to another state, resulting in a decrease in the credit allowed for taxes paid to other states, does not open a new limitations period in the manner of a federal change.
IT 08-0020-GIL	07/03/2008	Public Law 86-272/Nexus	General Information Letter: Activities described in the request are not protected activities under Public Law 86-272.
IT 08-0019-GIL	06/20/2008	Public Law 86-272/nexus	General Information Letter: The request contains insufficient information for offering guidance on the application of Public Law 86-272.
IT 08-0018-GIL	04/29/2008	Credits – Foreign Tax	General Information Letter: Taxpayers may not claim a credit for taxes imposed by Kentucky directly on a partnership, Subchapter S corporation or other entity that is treated as a pass-through entity for Illinois income tax purposes.
IT 08-0017-GIL	04/29/2008	Extensions	General Information Letter: Taxpayers who receive an extension of time to file federal income tax returns are automatically allowed the same extension of time to file their corresponding Illinois income tax returns.
IT 08-0016-GIL	04/29/2008	Extensions	General Information Letter: Taxpayers who receive an extension of time to file federal income tax returns are automatically allowed the same extension of time to file their corresponding Illinois income tax returns.
IT 08-0015-GIL	04/24/2008	Bingo and Charitable Games	General Information Letter: Home rule municipalities are not exempt from bingo licensing requirements.
IT 08-0014-GIL	04/21/2008	Withholding – Employee Benefits	General Information Letter: Payments of employee benefits that are not subject to federal income tax withholding are also not subject to Illinois income tax withholding.
IT 08-0013-GIL	04/14/2008	Withholding – Exemptions	General Information Letter: Individual owners of pass-through entities are not eligible to provide the pass-through entities with certificates exempting themselves from withholding.
IT 08-0012-GIL	03/24/2008	Voluntary Disclosure	General Information Letter. Voluntary disclosure of a liability by a qualifying taxpayer is grounds for a shortened statute of limitations for assessment of tax under UPIA Section 3-10(c).
IT 08-0011-GIL	03/21/2008	Compensation	General Information Letter: Under the reciprocal agreement between Illinois and Iowa, a resident of Iowa is not subject to tax on employee compensation earned in Illinois, including taxable fringe benefits and reimbursements of employee expenses treated as wages for federal income tax purposes.
IT 08-0010-GIL	03/21/2008	Credits – Education Expense	General Information Letter: The education expense credit is not allowed for expenses incurred at a school located in Iowa.
IT 08-0009-GIL	03/18/2008	Alternative Apportionment	General Information Letter: A petition for permission to use an alternative apportionment method cannot be granted based on an assertion of distortion that is not supported by any evidence.
IT 08-0008-GIL	03/12/2008	Interest Income	General Information Letter: Explanation of Illinois income tax treatment of federally taxexempt bond interest.
IT 08-0007-GIL	03/03/2008	Composite Returns	General Information Letter: Nonresident individuals are not required to seek prior permission from the Department to join in a composite return unless they have Illinois sourced income that will not be reported on a composite return and that will require them to file their own Illinois returns.
IT 08-0006-GIL	02/19/2008	Combined Unitary Return	General Information Letter: Partnerships may not join in the filing of a combined return.
IT 08-0005-GIL	01/29/2008	Alternative Apportionment	General Information Letter: Petition for alternative apportionment was not granted because petitioner appeared to have misunderstood the statutory method for apportioning income flowed through from a partnership.
IT 08-0004-GIL	01/23/2008	Residency/nonresidency	General Information Letter: A trust that became irrevocable while the grantor was an Illinois resident is itself an Illinois resident subject to tax on its income regardless of geographic source.
IT 08-0003-GIL	01/15/2008	Addition Modifications – Interest	General Information Letter: Exempt interest of a minor child reported by the parent on federal Form 8814 must be added to the adjusted gross income of the parent.
IT 08-0002-GIL	01/09/2008	Apportionment – Other Rulings	General Information Letter: Explanation of basic apportionment factor for mining companies.
IT 08-0001-GIL	01/07/2008	Bingo, Pull Tabs and Charitable Games	General Information Letter: Definition of “bingo equipment” under current law.

Private Letter Rulings

Ruling	Date	Subject	Synopsis
IT 08-0002-PLR	07/10/2008	Commercial Domicile	Private Letter Ruling: The commercial domicile of a qualified settlement fund is at the location of the court creating and administering the fund.
IT 08-0001-PLR	5/19/2008	Alternative Apportionment	Private Letter Ruling: Petition is granted to eliminate sales between a partnership and other members of its unitary business group in computing the apportionment factor.