1999 Income Tax Letter Rulings

General Information Letters

Ruling	Date	Subject	Synopsis
IT 99-0101-GIL	12/28/1999	Withholding - Other Rulings	General Information Letter: Duty to withhold taxes from prize monies at athletic events in this State.
IT 99-0100-GIL	12/28/1999	Withholding - Other Rulings	General Information Letter: Duty to withhold taxes from wages paid to employees temporarily in the State.
IT 99-0099-GIL	12/15/1999	Addition Modifications - Interest	General Information Letter: Taxation of municipal bonds discussed.
IT 99-0098-GIL	12/08/1999	Withholding - Other Rulings	General Information Letter: W-2 retention requirements.
IT 99-0097-GIL	12/07/1999	Residency - Nonresidency	General Information Letter: General definition of resident.
IT 99-0096-GIL	12/03/1999	Base Income	General Information Letter: Reimbursement for commuting expenses excluded from federal adjusted gross income is similarly excluded from Illinois base income.
IT 99-0095-GIL	12/03/1999	Composite Returns	General Information Letter: Composite returns may not be filed on behalf of multiple trusts.
IT 99-0094-GIL	12/01/1999	Payments	General Information Letter: Due dates for electronic funds transfer payments explained.
IT 99-0093-GIL	12/01/1999	Subtraction Modifications - Other Rulings	General Information Letter: Income deemed received from Qualified Zone Academy Bonds issued by the Illinois Development Finance Authority is excluded from net income under 20 ILCS 3505/7.61.
IT 99-0092-GIL	11/30/1999	Subtraction Modifications - Military	General Information Letter: Taxpayer must prove facts entitling him to the subtraction claimed on his return for active duty military pay.
IT 99-0091-GIL	11/19/1999	Refunds - Statutes of Limitations	General Information Letter: Corporation that fails to file a return forfeits any overpayment of taxes for that year, and the Department has no obligation to detect failure and notify the taxpayer in time to file a return claiming a refund or credit for the overpayment.
IT 99-0090-GIL	11/16/1999	Withholding	General Information Letter: Employer maintaining an office or transacting business in Illinois is require to withhold Illinois income tax from compensation paid in Illinois to its employees.
IT 99-0089-GIL	11/12/1999	Withholding	General Information Letter: Employer maintaining an office or transacting business in Illinois is require to withhold Illinois income tax from compensation paid in Illinois to its employees.
IT 99-0088-GIL	11/08/1999	Base Income	General Information Letter: Gain or loss on conversion of a common trust fund to a regulated investment fund not recognized for federal income tax purposes will not be recognized for Illinois income tax purposes.
IT 99-0087-GIL	11/05/1999	Public Law - 86-272/Nexus	General Information Letter: Taxpayer doing business in Illinois and having nexus is required to register and file tax returns.
IT 99-0086-GIL	11/04/1999	Credits - Training Expense	General Information Letter: General information on the training expense credit.
IT 99-0085-GIL	11/02/1999	Exemptions	General Information Letter: Illinois follows federal income tax determination of whether or not a person is a dependent.
IT 99-0084-GIL	10/27/1999	Subtraction Modifications - Other	General Information Letter: Illinois Development Finance Authority bonds are exempt from Illinois income taxation, while Illinois State Sales Tax Bonds are not.
IT 99-0083-GIL	10/21/1999	Subtraction Modifications - Pensions	General Information Letter: Disability income is not deductible unless paid under a qualified retirement plan or a government disability plan.
IT 99-0082-GIL	10/10/1999	Allocation	General Information Letter: Paid leave-of-absence, if not deductible as paid under a qualified retirement plan, is determined to be compensation paid in this State under the same tests as used for ordinary wages or salary.
IT 99-0081-GIL	09/30/1999	Information Reports	General Information Letter: Information reports do not need to be filed with the Department of Revenue.
IT 99-0080-GIL	09/27/1999	Exempt Organizations	General Information Letter: Organizations exempt under IRC Section 501(a) are subject to Illinois income tax and have return filing requirements only if they have unrelated business taxable income.
IT 99-0079-GIL	09/24/1999	Information Reports	General Information Letter: Information reports do not need to be filed with the Department of Revenue.
IT 99-0078-GIL	09/21/1999	Alternative Apportionment	General Information Letter: Unsupported statement that separate accounting more accurately reflects business activities in Illinois is insufficient to grant petition to use separate accounting.
IT 99-0077-GIL	09/20/1999	Subtraction Modifications - Pensions	General Information Letter: Military retirement pay is not subject to Illinois income tax.
IT 99-0076-GIL	09/20/1999	Subtraction Modifications - Pensions	General Information Letter: Military retirement pay is not subject to Illinois income tax.
IT 99-0075-GIL	09/16/1999	Withholding - Other Rulings	General Information Letter: There have been no substantial changes to the withholding requirements in the past year.
IT 99-0074-GIL	09/16/1999	Returns - Requirements to File	General Information Letter: IITA Section 502(a)(2) requires a corporation qualified to do business in Illinois to file an income tax return even if it has no liability.
IT 99-0073-GIL	09/16/1999	Public Law 86-272/Nexus	General Information Letter: Taxpayer providing marketing services is not protected by Public Law 86-272.
IT 99-0072-GIL	09/14/1999	Estates	General Information Letter: A trust which has elected under IRC Section 645 to be treated as part of an estate is also part of the estate for Illinois income tax purposes.
IT 99-0071-GIL	09/08/1999	Alternative Apportionment	General Information Letter: Unsupported statement that separate accounting more accurately reflects business activities in Illinois is insufficient to grant petition to use separate accounting.
IT 99-0070-GIL	08/19/1999	Information Reports	General Information Letter: Information reports for payments of certain rents and royalties, payments under certain contracts for personal services and payments of certain prizes and awards need not be filed with the Department of Revenue, but must be maintained for review by the Department.
IT 99-0069-GIL	08/12/1999	Withholding - Other Rulings	General Information Letter: An employer maintaining a place of business in Illinois is required to withhold income tax from compensation paid in this State.
IT 99-0068-GIL	08/02/1999	Exemptions	General Information Letter: An Illinois income tax exemption is allowed for a foster child if an exemption is allowed for that child under the Internal Revenue Code.
IT 99-0067-GIL	07/27/1999	Alternative Apportionment	General Information Letter: Mere statement of how separate accounting reaches a tax result different from statutory apportionment method is insufficient to grant petition to use alternative method of apportionment.
IT 99-0066-GIL	07/06/1999	Compensation	General Information Letter: Principles for determining whether compensation is “paid in this State” for purposes of allocation and withholding.
IT 99-0065-GIL	06/30/1999	Returns -- Requirements To File	General Information Letter: Section 502 of the Illinois Income Tax Act provides the requirements for filing of returns by individuals.
IT 99-0064-GIL	06/21/1999	Withholding - Other Rulings	General Information Letter: No withholding of Illinois income tax is required from compensation paid to truck driver whose compensation is exempt from Illinois income tax under Public Law 101-322.
IT 99-0063-GIL	06/18/1999	Public Law 86-272/Nexis	General Information Letter: Based on the facts shown in the request, no ruling can be issued stating that the taxpayer has no nexus with Illinois.
IT 99-0062-GIL	06/15/1999	Subtraction Modification - Other Rulings	General Information Letter: Interest on obligations issued by the State of Illinois and its political subdivisions is subject to Illinois income tax unless expressly provided by statute.
IT 99-0061-GIL	06/10/1999	Exempt Organizations	General Information Letter: An employee stock ownership plan exempt from federal income taxation under IRC Section 501(a) is subject to Illinois income tax only if it has unrelated business taxable income.
IT 99-0060-GIL	06/09/1999	Public Law 86-272/Nexis	General Information Letter: Based on the facts shown in the request, no ruling can be issued stating that the taxpayer has no nexus with Illinois.
IT 99-0059-GIL	06/08/1999	Pensions	General Information Letter: Amounts included in adjusted gross income under IRC Sections 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) or 408 may be subtracted in computing base income.
IT 99-0058-GIL	05/24/1999	Public Law 86-272/Nexis	General Information Letter: Internet seller with employee working in Illinois is not protected from Illinois income taxation by the Internet Tax Freedom Act.
IT 99-0057-GIL	05/24/1999	Public Law 86-272 Nexus	General Information Letter: Illinois has adopted no express policy on the application of Geoffrey, Inc. v. South Carolina State Tax Commission.
IT 99-0056-GIL	05/20/1999	Apportionment - Financial Organizations	General Information Letter: Apportionment of income derived from purchases of automobile loans.
IT 99-0055-GIL	05/17/1999	Miscellaneous	General Information Letter: Response to survey on taxation of mining activities.
IT 99-0054-GIL	05/05/1999	Credits - Foreign Tax	General Information Letter: Computation of income subject to double taxation when taxpayer is a part-year resident.
IT 99-0053-GIL	05/05/1999	Addition Modification - Interest -- Apportionment - Financial Organizations	General Information Letter: Portfolio interest income of a foreign corporation exempted from federal income taxation under IRC § 881 is not subject to add-back under IITA Section 201(b)(a)(A). Activities of an independent contractor on behalf of a financial organization do not constitute management of securities by financial organization for purposes of IITA Section 304(c)(1)(A).
IT 99-0052-GIL	05/04/1999	Returns - Requirements To File	General Information: A charitable remainder unitrust that has no Illinois income tax liability and that is not required to file a federal income tax return has no duty to file an Illinois income tax return.
IT 99-0051-GIL	04/30/1999	Definitions	General Information Letter: A "qualified settlement fund" is defined as a corporation under Section 468B of the Internal Revenue Code and is therefore a corporation for Illinois income tax purposes.
IT 99-0050-GIL	04/28/1999	Public Law 86-272/Nexus	General Information Letter: Payroll services corporation is not protected under Public Law 86-272.
IT 99-0049-GIL	04/23/1999	Withholding - Other Rulings	General Information Letter: A relationship characterized as employer-employee for federal income tax withholding purposes is an employer-employee relationship for Illinois income tax withholding purposes.
IT 99-0048-GIL	04/22/1999	Partnerships	General Information Letter: Partners include in net income their partnership share of the business income of the partnership as apportioned to Illinois by the partnership using its apportionment factors.
IT 99-0047-GIL	04/19/1999	Exempt Organizations	General Information Letter: Corporation exempt from tax under IRC Section 501(a) is exempt from Illinois income taxation except to the extent it has unrelated business taxable income.
IT 99-0046-GIL	04/19/1999	Refunds - Other Rulings	General Information Letter: Overpayment credited against subsequent year's estimated tax liability may only be refunded pursuant to a return or claim for refund for the subsequent year.
IT 99-0045-GIL	04/14/1999	Information Reports	General Information Letter: Illinois statutes and regulations do not make provision for employers charging fees for duplicate copies of W- 2s.
IT 99-0044-GIL	04/13/1999	Base Income	General Information Letter: Transportation fringe benefits excluded from employees' gross income is excluded from base income.
IT 99-0043-GIL	04/08/1999	Withholding -Reciprocal Agreements	General Information Letter: Transportation fringe benefits excluded from employees' gross income is excluded from base income.
IT 99-0042-GIL	04/06/1999	Exempt Organizations	General Information Letter: Corporation exempt from tax under IRC Section 501(a) is exempt from Illinois income taxation except to the extent it has unrelated business taxable income.
IT 99-0041-GIL	04/06/1999	Base Income	General Information Letter: Response to survey on Illinois income tax treatment of various federal exclusions and deductions.
IT 99-0040-GIL	04/05/1999	Apportionment - Sales Factor	General Information Letter: Investment partnership with no property or employees in Illinois and whose only contact is through independent contractors has no "cost of performance" in Illinois for sales factor purposes.
IT 99-0039-GIL	04/05/1999	Substraction Modifications - Other Rulings	General Information Letter: In computing base income, no deduction is allowed to individual for theft loss taken as an itemized deduction for federal income tax purposes.
IT 99-0038-GIL	03/29/1999	Exempt Organizations	General Information Letter: Organizations exempt from federal taxation under IRC § 501(a) are exempt from Illinois income tax except to the extent they have unrelated business taxable income.
IT 99-0037-GIL	03/29/1999	Exempt Organizations	General Information Letter: Organizations exempt from federal taxation under IRC § 501(a) are exempt from Illinois income tax except to the extent they have unrelated business taxable income.
IT 99-0036-GIL	03/29/1999	Exempt Organizations	General Information Letter: Organizations exempt from federal taxation under IRC § 501(a) are exempt from Illinois income tax except to the extent they have unrelated business taxable income.
IT 99-0035-GIL	03/29/1999	Exempt Organizations	General Information Letter: Organizations exempt from federal taxation under IRC § 501(a) are exempt from Illinois income tax except to the extent they have unrelated business taxable income.
IT 99-0034-GIL	03/29/1999	Exempt Organizations	General Information Letter: Organizations exempt from federal taxation under IRC § 501(a) are exempt from Illinois income tax except to the extent they have unrelated business taxable income.
IT 99-0033-GIL	03/24/1999	Apportionment Factor - Payroll Factor	General Information Letter: In order for compensation of a nonresident to be paid in this State, some services must be performed in this State.
IT 99-0032-GIL	03/22/1999	Credits - Property Tax	General Information Letter: Taxpayer must be owner of the residential property in order to claim credit for property taxes paid.
IT 99-0031-GIL	03/22/1999	Other Rulings	General Information Letter: Donations to the Do-It-Yourself School Funding Fund are distributed to elementary and high school districts.
IT 99-0030-GIL	03/19/1999	Exempt Organizations	General Information Letter: Organizations exempt from federal taxation under IRC § 501(a) are exempt from Illinois income tax except to the extent they have unrelated business taxable income.
IT 99-0029-GIL	03/18/1999	Substraction Modifications - Interest on U.S. Government Obligations	General Information Letter: U.S. government obligation interest earned by a partnership and included in the adjusted gross income of a partner may be subtracted by the partner.
IT 99-0028-GIL	03/18/1999	S Corporations	General Information Letter: A subchapter S corporation and its qualified subchapter S subsidiary are treated as a single subchapter S corporation.
IT 99-0027-GIL	03/12/1999	Exempt Organizations	General Information Letter: Organizations exempt from federal taxation under IRC § 501(a) are exempt from Illinois income tax except to the extent they have unrelated business taxable income.
IT 99-0026-GIL	03/05/1999	Credits - Foreign Tax	General Information Letter: Capital gain deducted in the computation of Wisconsin taxable income is not subject to double taxation.
IT 99-0025-GIL	03/05/1999	Base Income	General Information Letter: Items of income included in or excluded from gross income for federal income tax purposes are similarly included or excluded from base income unless a specific addition or subtraction modification applies.
IT 99-0024-GIL	03/05/1999	Returns - Requirement To File	General Information Letter: An Illinois resident with sufficient net income to generate an income tax liability is required to file a return.
IT 99-0023-GIL	03/05/1999	Returns - Requirement To File	General Information Letter: An Illinois resident with sufficient net income to generate an income tax liability is required to file a return.
IT 99-0022-GIL	03/05/1999	Apportionment - Sales Factor	General Information Letter: Gross revenues are included in the Illinois numerator of the sales factor if the greater portion of the income-producing activity is performed within the State.
IT 99-0021-GIL	03/01/1999	Untary	General Information Letter: Taxpayers using different apportionment formulas under IITA Section 304 may not be members of the same unitary business group.
IT 99-0020-GIL	02/23/1999	Net Operating Loss and Net Operating Loss Deductions	General Information. Individuals are not entitled to net loss carryforwards under IITA Section 207.
IT 99-0019-GIL	02/16/1999	Withholding - Other Rulings	General Information Letter: Withholding is not required on payments of prizes in sporting contests.
IT 99-0018-GIL	02/17/1999	Alternatve Apportionment	General Information Letter: Petition to use alternative apportionment formula must comply with the requirements of 86 Ill. Admin. Code § 100.3390.
IT 99-0017-GIL	02/11/1999	Refunds	General Information Letter: Offset of joint return overpayment against Retailers' Occupation Tax liability of husband was not shown to be improper.
IT 99-0016-GIL	02/05/1999	Credits - Replacement Tax Investment	General Information Letter: Property owned by leasing company is not "qualified property" because the owner is not a retailer.
IT 99-0015-GIL	02/04/1999	Net Operating Loss and Net Operating Loss Deductions	General Information Letter: Partnership is entitled to carry forward Illinois net loss deduction.
IT 99-0014-GIL	01/28/1999	S Corporations	General Information Letter: Apportionment of business income by Subchapter S corporations.
IT 99-0013-GIL	01/19/1999	Exempt Organizations	General Information Letter: Exempt organizations are taxed by Illinois only on unrelated business taxable income.
IT 99-0012-GIL	01/19/1999	Exempt Organizations	General Information Letter: Exempt organizations are taxed by Illinois only on unrelated business taxable income.
IT 99-0011-GIL	01/14/1999	Withholding - Other Rulings	General Information Letter: Determination of whether person is an employee or independent contractor is made by the IRS.
IT 99-0010-GIL	01/12/1999	Public Law 86-272/Nexus	General Information Letter: No opinion on whether taxpayer has nexus and income tax liability with Iowa.
IT 99-0009-GIL	01/12/1999	Alternative Apportionment	General Information Letter: Request to use separate accounting not granted absent showing of distortion by usual apportionment formula and accuracy of separate accounting.
IT 99-0008-GIL	01/07/1999	Credits - Subtraction Modifications - Other Rulings	General Information Letter: No credit is allowed for repayment of claim-of-right income, but subtraction modification is allowed for amounts used to compute credit under IRC Section 1341.
IT 99-0007-GIL	01/07/1999	Pensions	General Information Letter: Responses to questions on tax treatment of contributions to and payments from pension plans.
IT 99-0006-GIL	01/06/1999	S Corporations	General Information Letter: Apportionment of business income by Subchapter S corporations.
IT 99-0005-GIL	01/06/1999	Withholding - Other Rulings	General Information. Response to request for general information on withholding.
IT 99-0004-GIL	01/06/1999	Addition Modification - Other Rulings	General Information Letter: No addition modification is provided for benefits excluded from federal adjusted gross income under IRC Section 132(f).
IT 99-0003-GIL	01/05/1999	Subtraction Modifications - Other Rulings	General Information Letter: No subtraction modification is allowed unless expressly provided by statute.
IT 99-0002-GIL	01/05/1999	Estimated Tax	General Information Letter: Computation of estimated tax and petition for waiver of failure to pay penalty.
IT 99-0001-GIL	01/05/1999	Net Operating Loss and Net Operating Loss Deduction	General Information Letter: Individual net operating loss deductions are not adjusted.

Private Letter Rulings

Ruling	Date	Subject	Synopsis
IT 99-0013-PLR	12/23/1999	Apportionment - Financial Organizations	Private Letter Ruling: Subsidiary is a sales finance company which cannot be combined with non-financial organizations.
IT 99-0012-PLR	12/22/1999	Apportionment - Financial Organizations	Private Letter Ruling: Newly-formed subsidiary will be a sales finance compan
IT 99-0011-PLR	12/20/1999	Subtraction Modifications - Other Rulings	Private Letter Ruling: Income deemed received from Qualified Zone Academy Bonds issued by the Illinois Development Finance Authority is excluded from net income under 20 ILCS 3505/7.61.
IT 99-0010-PLR	12/08/1999	Combined Unitary Return	Private Letter Ruling: Unitary business group changing method of accounting for income of members not using the common taxable year are not subject to limitation of net loss carryforwards of such members to year of change.
IT 99-0009-PLR	11/02/1999	Apportionment - Financial Organization	Private Letter Ruling: Taxpayer engaged in the business of purchasing customer accounts receivable from affiliated corporations is a sales finance company required to apportion its business income as a financial organization. Interest received from Illinois customers at the taxpayer's lockbox in Illinois will be included in the Illinois numerator.
IT 99-0008-PLR	10/25/1999	Net Operating Loss and Net Operating Loss Deduction	Private Letter Ruling: Exempt organizations described in IITA Section 205(a) do not add back their federal net operating loss deductions and are not entitled to an Illinois net loss.
IT 99-0007-PLR	08/11/1999	Composite Returns	Private Letter Ruling: Petition is granted to include Illinois resident shareholder in composite return filed by Subchapter S corporation.
IT 99-0006-PLR	07/30/1999	Refunds - Statute of Limitations	Private Letter Ruling: Private Letter Ruling IT 95-0173 revoked. Losses incurred in years for which the statute of limitations for refund claims has expired may be generally be adjusted as necessary for proper computation of net loss carryforwards to open years.
IT 99-0005-PLR	07/12/1999	Business Income	Private Letter Ruling: Private Letter Ruling IT 92-0145 partially revoked. Income from covenant not to compete is business income unless clearly classifiable as nonbusiness income.
IT 99-0004-PLR	03/02/1999	Alternative Apportionment	Private Letter Ruling: Request for alternative apportionment granted. (This letter was not previously indexed or included in a monthly report because the daily file copy was misfiled.)
IT 99-0003-PLR	06/01/1999	Compensation	Private Letter Ruling: Compensation paid to nonresident movie director/producer for period during which filming takes place in Illinois is not paid in Illinois because services are provided outside Illinois which are not incidental to services provided in Illinois, and neither the base of operations nor place of direction or control is within Illinois.
IT 99-0002-PLR	03/25/1999	Unitary	Private Letter Ruling: Taxpayer engaged in two or more nonunitary businesses must apportion the business income of each business separately, using the factors appropriate to that business.
IT 99-0001-PLR	01/04/1999	Apportionment - Financial Organizations	Private Letter Ruling: Interest payments made by wire transfer are received at the location of the bank in which deposited into an account of the recipient.