IL-1023-C Instructions

              IL-1023-C Instructions (R-12/05) Page 1 of 3
General Information
Who may file Form IL-1023-C?
A partnership or S corporation may choose to act as authorized
agent and file Form IL-1023-C for selected partners or shareholders.
Persons transacting an insurance business organized under a
Lloyds plan of operation may file a composite return on behalf of
all its underwriters, including corporations and residents. You must
refer to Illinois Income Tax Regulations, Section 100.5130, for
specific instructions on how to properly complete Form IL-1023-C
and determine what you need to attach to your return.
You, as authorized agent, are not required to notify the Illinois
Department of Revenue (IDOR) that you will start or stop filing
Form IL-1023-C. In addition, you are not required to give advance
notice of changes from year to year of the members included on
Form IL-1023-C. However, for any year a Form IL-1023-C is filed,
you are responsible for
• filing any petitions required,
• paying estimated tax,
• paying tax, penalty or interest assessed,
• responding to notices,
• filing amended returns, and
• participating in any audit of the return.
Who may be included in a composite return?
Individuals, estates, or trusts that are members of the same
partnership or S corporation may be included on Form IL-1023-C.
The form is generally for nonresidents of Illinois who have no
Illinois income other than the income reported on Form IL-1023-C.
All eligible members of the partnership or S corporation do not
have to be included. The decision of whether or not to include a
member on Form IL-1023-C must be made by that member and
you, the authorized agent. All members not included on Form
IL-1023-C are required to meet their Illinois filing obligations
independently.
All underwriters who are members of an insurance business
organized under a Lloyds plan of operation may be included on
Form IL-1023-C.
The department may grant approval to include a member who is an
Illinois resident, or a member whose residency cannot be
determined if you petition for their inclusion (see ‘‘Do I need to file a
petition?’’).
Example: The Acme partnership consists of a general partner and
50 limited partners. The general partner is a regular corporation,
and the limited partners consist of 26 nonresident individuals, 20
resident individuals, an S corporation, a partnership, a nonresi-dent
estate, and a nonresident trust. The 26 nonresident individu-als,
the nonresident estate, and the nonresident trust may be
included on Form IL-1023-C. The 20 resident individuals may be
included if you submit a petition and we grant approval. None of
the other partners may be included.
A qualifying member may be included in more than one
composite return.
Do I need to file a petition?
You must file a petition and receive approval if you wish to include
• a member who is a resident of Illinois,
• a member whose residency cannot be determined, or
Illinois Department of Revenue
IL-1023-C Instructions 2005
• a member who is a nonresident required to file an indepen-dent
Form IL-1040, Individual Income Tax Return, or Form
IL-1041, Fiduciary Income and Replacement Tax Return, to
report other Illinois income and who will claim a credit on
that return for its share of the composite tax paid on Form
IL-1023-C.
No petition needs to be filed by a Lloyds plan of operation
to include any of its underwriters. Also, no credit is allowed to any
underwriter for its share of composite tax paid on Form IL-1023-C
You must file the petition prior to the end of the partnership’s or
S corporation’s tax year. We will notify you of the approval or
denial of the petition prior to the original due date for filing Form
IL-1023-C.
We will grant a petition if you clearly demonstrate that no other
method of filing would achieve the same degree of compliance
and administrative ease, or if you provide sufficient evidence that
residency cannot be accurately determined. Mail petitions to:
BUSINESS PROCESSING DIVISION
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19014
SPRINGFIELD IL 62794-9014
When should I file?
Form IL-1023-C is due on or before the 15th day of the 4th month
following the close of the authorized agent’s tax year.
If you are operating as a business organized under the Lloyds
plan of operation, your due date is the same as your federal
return due date.
Automatic Illinois extension — We grant an automatic six-month
extension of time to file Form IL-1023-C, whether or not
the automatic extension was requested. You are not required to
file Form IL-505-B, Automatic Extension Payment, in order to
obtain this automatic six-month extension. However, if you expect
tax to be due, you must use Form IL-505-B to pay any tentative
tax you owe to avoid interest and penalty on tax not paid by the
original due date of the return (determined without regard to filing
extensions).
Do not use Form IL-505-I, Automatic Extension Payment
(for individuals), to submit composite tax payments.
Where should I file?
Mail your Form IL-1023-C to:
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19009
SPRINGFIELD IL 62794-9009
If you are operating as a business organized under the Lloyds plan of
operation, you should mail your Form IL-1023-C to:
ATTN: LLOYD’S OF LONDON
BUSINESS PROCESSING DIVISION
PO BOX 19014
SPRINGFIELD IL 62794-9014
Mail your Form IL-1023-C to us separately. Do not
attach it to Form IL-1065 or Form IL-1120-ST.
When should I pay?
Estimated tax payments — You must make estimated payments
on the basis of the income tax expected to be shown on the
composite return. Estimated payments must be submitted with