IL-990-T Instructions

              IL-990-T Instructions (R-12/05) Page 1 of 4
What’s new for 2005?
• The IL-477, Replacement Tax Investment Credit, scheduled to expire
on December 31, 2003, has been extended until December 31, 2008.
You may continue to claim a credit for qualified property placed in
service after December 31, 2003.
• Effective for tax years ending on or after December 31, 2003,
and before December 31, 2004, the Research and Development
Credit was not an allowable credit. For tax years ending on or after
December 31, 2004, the Research and Development Credit has
been restored.
• Effective for tax years beginning on or after January 1, 2004,
those businesses in the film industry may qualify for a Film
Production Services Tax Credit. See Schedule 1299-D Instructions
for more information.
• Effective January 1, 2005, the credits for coal research contribu-tions
and coal utilization investments have expired. See Schedule
1299-D for more information.
• For tax years ending on or after January 1, 2005, the portion of
the Employee Child Care Tax Credit that allows for a 30 percent
credit of all start-up costs, has expired. You may continue to carry
forward any amount that remains from tax years ending on or
before December 31, 2004 for up to five taxable years.
General Information
Who must file Form IL-990-T?
You must file Form IL-990-T if you are an organization exempt from
federal income tax by reason of Section 501(a) of the Internal
Revenue Code (IRC) and earn or receive unrelated business taxable
income as determined under IRC Section 512, and
• have net income as defined under the Illinois Income Tax Act
(IITA); or
• are a resident or qualified to do business in the state of Illinois and
are required to file U.S. Form 990-T (regardless of net income or
loss).
It is your duty as a taxpayer to obtain forms. Failure to obtain them
will not be an excuse for failure to file returns as required by law.
How do I register my business?
If you are required to file Form IL-990-T, you should register by calling
our Central Registration Division at 217 785-3707. You may be able
to register electronically. Visit our web site at www.tax.illinois.gov for
more information.
Registering with the Illinois Department of Revenue (IDOR) prior to
filing your return ensures that your tax returns are accurately
processed.
Your identification numbers as an Illinois business taxpayer are your
federal employer identification number (FEIN) and your Illinois
business tax (IBT) number.
When should I file?
Your Illinois filing period is the same as your federal filing period. In
general, Form IL-990-T is due on or before the 15th day of the 5th
month following the close of the tax year. If you are an employee trust
as described in IRC Section 401(a), you must file Form IL-990-T on
or before the 15th day of the 4th month following the close of the tax
year.
Automatic six-month extension — We grant you an automatic six-month
(seven-month for corporations) extension of time to file your
tax return. You are not required to file Form IL-505-B, Automatic
Extension Payment, in order to obtain this automatic extension.
However, if you expect tax to be due, you must use Form IL-505-B to
pay any tentative tax due in order to avoid interest and penalty on tax
Illinois Department of Revenue
IL-990-T Instructions 2005
not paid by the original due date of the return. An extension of time to
file your Form IL-990-T is not an extension of time for payment of
Illinois tax.
Additional extensions beyond the automatic extension period —
We will grant an extension of more than six months (seven months
for corporations) only if an extension of more than six months is
granted by the Internal Revenue Service (IRS). You must attach a
copy of the approved federal extension to your Form IL-990-T.
Where should I file?
Mail your Form IL-990-T to
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19009
SPRINGFIELD, IL 62794-9009
When should I pay?
Payment of tax — You must pay your Illinois income and replace-ment
tax in full on or before the original due date of the return. This
payment date applies even though an automatic extension for filing
your return has been granted.
Estimated tax payments — If you reasonably expect your Illinois
income and replacement tax liability to be more than $400 for the tax
year, you are required to make quarterly payments of estimated tax.
For further information regarding 2005 estimated taxes, see the
instructions for Form IL-1120-ES, Estimated Income and Replacement
Tax Payments for Corporations.
Trusts are not required to make estimated payments.
Who should sign the return?
If you are a corporation, your Form IL-990-T must be signed by the
president, vice president, treasurer, or any other officer duly autho-rized
to sign the return. In the case of a bankruptcy, a receiver,
trustee, or assignee must sign any return that is required to be filed
on behalf of the corporation. If you are a trust, Form IL-990-T must be
signed by a fiduciary of the trust. If there are two or more joint
fiduciaries, the signature of one will comply with the requirements of
the IITA. The signature verifies by written declaration (and under
penalties of perjury) that the signing individual has personally
examined the return and the return is true, correct, and complete. An
individual’s name signed to a return is prima facie evidence that the
individual is authorized to sign on behalf of the taxpayer.
Any person who is paid to prepare the return (other than an autho-rized
officer, fiduciary, or a person who is a regular, full-time em-ployee
of the taxpayer, such as a clerk, secretary, or bookkeeper)
must provide a handwritten signature, date the return, and write the
preparer’s taxpayer identification number. If the preparer is an
employee or partner of a firm or corporation, the preparer must also
provide the firm’s name, address, and instead of the preparer’s
taxpayer identification number, the preparer must provide the firm’s
FEIN. Self-employed preparers must check the “self-employed” box
and provide their own name, address, and taxpayer identification
number in the appropriate spaces.
If your return is not signed, any overpayment of tax is
considered forfeited if, after notice and demand for signature, you fail
to provide a signature within three years from the date your return
was filed.
What are the penalties and interest?
Penalties — You will owe
• a late-filing penalty if you do not file a processable return by the
extended due date;
• a late-payment penalty if you do not pay the tax you owe by the
original due date of the return;