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Illinois Department of Revenue

IL-1120-X Instructions

Use for tax years ending before December 31, 2005

What is new?

If your change decreases the tax due to Illinois and you are entitled to a

refund, you must file Form IL-1120-X within

• Effective immediately, “business income” is defined to mean all

income that may be apportioned without violating the Constitution

• three years after the due date of the return (including extensions),

of the United States. This new definition overrules recent court

• three years after the date your original return was filed, or

cases that had ruled that gain from disposition of an entire business

• one year after the date your Illinois tax was paid, whichever is latest.

or from property that previously had been used in a business is not

business income.

If you are reporting an Illinois net loss deduction (NLD)

carryback, Form IL-1120-X must be filed within three years of the

• The IL-477, Replacement Tax Investment Credit, scheduled to

expire on December 31, 2003, has been extended until December

extended due date for the loss year return.

31, 2008.

If your change increases the tax due to Illinois, you should file Form

• For tax years ending on or after December 31, 2005, the Form

IL-1120-X and pay the tax, penalty, and interest promptly.

IL-1120, Illinois Corporation Income and Replacement Tax Return

Federal change - You should not file this form until you receive a

has been completely revised. Use this version of Form IL-1120-X

federal finalization notification from the IRS, stating that they have

to amend tax returns for tax years ending before December 31,

2005. If you need to file a corrected or amended return for tax

accepted your change, either by paying a refund, or by final assess-

years ending on or after December 31, 2005, you may obtain a

ment, agreement, or judgment.

copy of the revised Form IL-1120-X by visiting our web site at

If your federal change decreases the tax due to Illinois and you are

entitled to a refund, you must file Form IL-1120-X within two years

Who must file Form IL-1120-X?

plus 120 days of federal finalization.

You should file Form IL-1120-X if you are amending a previously filed,

If your federal change increases the tax due to Illinois, you must file

processable Form IL-1120, Illinois Corporation Income and Replace-

Form IL-1120-X and pay any additional tax within 120 days of IRS

ment Tax Return, or Form IL-1120-X, for a tax year ending on or after

partial agreement or finalization. You must attach proof of the federal

December 31, 1986. Your change can occur from a state or federal

finalization date, showing the change was reported to Illinois within

change, such as

120 days of IRS acceptance, or you may be assessed a late-payment

• an amendment of your federal income tax return,

penalty.

• an adjustment made by the Internal Revenue Service (IRS), or

If you fail to notify us of your change by filing Form IL-1120-

• any other recomputation or redetermination, and

X, we may issue a notice of deficiency at any time. Once you file your

• your change affects items used to compute your Illinois net

change, we may issue a notice of deficiency within two years.

income, net loss, or credits.

What if my amended return involves unitary

A separate Form IL-1120-X must be filed for each tax year you need

filing?

to amend.

For tax years ending on or after December 31, 1993, you

Use Form IL-1120X-PY, Amended Corporation Income and

must file combined unitary.

Replacement Tax Return, to amend tax years ending prior to

If you are amending your original

December 31, 1986.

• unitary Form IL-1120 to report a state or federal change to your

What if I need to correct my return before the

unitary income, you must file one combined Form IL-1120-X for all

extended due date expires?

members and a revised Schedule UB.

• non-unitary Form IL-1120, you must file one Form IL-1120-X and

If you filed your original Form IL-1120 and a state or federal correction

a completed Schedule UB that includes all members of the unitary

or change needs to be made before the extended due date expires

group.

(see the instructions of your original return), you should file Form

IL-1120-X, and write “CORRECTED” at the top. Due to the automatic

For tax years ending prior to December 31, 1993 -

extension, any additional return filed after the original return and prior

Separate unitary

to the extended due date will be considered a “corrected return” rather

If you are amending your original unitary or non-unitary Form IL-1120 to

than an amended return.

report a state or federal change to your unitary income, you must file a

If you are filing a “corrected return” to change the election on your

separate Form IL-1120-X for each Illinois member of the unitary group.

original return to treat all income other than compensation as business

Attach a completed Schedule UB or indicate, in the space provided on

income, clearly indicate the change to your election in Part V of Form

Page 1 of this form, the FEIN of the member who is including the

IL-1120-X.

Schedule UB with Form IL-1120-X. You cannot file a combined unitary

Form IL-1120-X.

If you are filing a “corrected return” to change the election on your

Combined unitary

original return to forgo the Illinois NLD carryback period, clearly

indicate the change to your election in Part V of Form IL-1120-X.

If you are amending your original

• unitary Form IL-1120 to report a state or federal change to your

For tax years ending on or after December 31, 2003, the carryback

unitary income, you must file one combined Form IL-1120-X for all

provision is repealed. You must carryforward any losses earned on or

members and a revised Schedule UB.

after December 31, 2003.

• non-unitary Form IL-1120 to be included in an existing unitary group,

How long do I have to amend my return?

you must file Form IL-1120-X as if you were filing a separate unitary

return and the unitary group must file one combined Form IL-1120-X

The amount of time you have to amend your return depends on

and attach a revised Schedule UB that includes you as a member.

whether your Form IL-1120-X is being filed to report a state or

What if my amended return involves an Illinois

federal change.

net loss deduction (NLD)?

State change - If your change creates or increases the Illinois net loss

for the year, you must file Form IL-1120-X within three years after the

If you have an Illinois NLD carryback or carryforward from any loss year

due date of the return, including extensions, in order to carry the

ending on or after December 31, 1986, it is subtracted from and limited

increased loss amount to another year.

to base income allocable to Illinois.

Page 1 of 4

IL-1120-X Instructions (R-12/05)

Il-1120-X Instructions - Amended Corporation Income And Replacement Tax Return - Illinois Department Of Revenue - 2005

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